"Arizona House of Representatives Committee on Commerce Report of Regular Meeting - March 14, 2023"

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-sixth Legislature, First Regular Session, held Tuesday, March 14, 2023, with Representative Wilmeth as Chairman. The committee action table reports SB1164 (workers' compensation; fraud investigations; adjudications) as do pass amended, SB1191 as do pass, and SB1167 and SCR1033 as held. Attachments include the agenda and a Request to Speak report listing registrants and comments for and against SB1164 and SB1167 (unemployment insurance; benefit amounts; definition). The document closes with a fact sheet on SB 1191, which adds distributed ledger technology transfers as a permissible form of deposit into an escrow account, and the committee roll call vote on SB 1191.

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

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ARIZONA HOUSE OF REPRESENTATIVES
Fifly-sixth Legislature - First Regular Session

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 14, 2023"
House Hearing Room 3 -- 2:00 P.M.

Convened 2:06 P.M. MINUTES RECEIVED
Recessed CHIEF CLERK'S OFFICE

Reconvened Ss _|f Ss -o 3S
Adjourned 2:53 P.M.

Members Present Members Absent
Representative Aguilar

Representative Austin

Representative Carter

Representative Gress

Representative Heap

Representative Hendrix

Representative Ortiz

Representative Sun

Representative Carbone, Vice-Chairman
Representative Wilmeth, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action Vote Attachments
SB1164 DPA 6-2-2-0 4,5, 6
SB1191 DP 6-4-0-0 7,8

SB1167 HELD
SCR1033 HELD

Susan Nelson, Committee Secretary
March 15, 2023

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

COMMITTEE ON COMMERCE
March 14, 2023
| ConvENES Li apn
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

Ad SOURNED L554
REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 14, 2023 ROOM HHR3 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https:/Avww.azleg.gov/videoplayer/?clientID=6361162879&eventID=202303 1053

Members:
Representative Aguilar Representative Heap Representative Sun
Representative Austin Representative Hendrix Representative Carbone, Vice-Chairman
Representative Carter Representative Ortiz Representative Wilmeth, Chairman
Representative Gress
Bills Short Title Strike Everything Title
{ SB1164 workers' compensation; fraud . investigations;
) p A adjudications °

(Kaiser)
Fd OoM, RULES

definition
(Kaiser: Shamp)
COM, RULES

a *SBII9I D P disbursements; applicability; definition
=. (Mesnard)

Ge f 10:0
SCR1I033 4d r~ state debt; limit; restrictions; prohibitions
COM, RULES

SB1167 Ly ELD unemployment insurance; benefit amounts;

* If first read and assigned

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

RA
03/08/2023

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 (3/14/2023)

$B1164, workers' compensation; fraud investigations; adjudications

Support:

Mark Kendall, COPPERPOINT INSURANCE COMPANY; Emily Rice, AZ SELF-INSURERS ASSOC; Mike Huckins, GREATER
PHOENIX CHAMBER OF COMMERCE; Courtney Coolidge, AZ CHAMBER OF COMMERCE; Lisa Gentry, representing
self; Sue VanRiper, representing self; Theresa Breithaupt, representing self

Neutral:
Barry M. Aarons, AZ ASSN OF LAWYERS FOR INJURED WORKERS; Michael Colletto, representing self

Oppose:

Kerry Jackson, representing self; marcia stewart, representing self

All Comments:

Kerry Jackson, Self: You were elected to help the people of Arizona, stop allowing the employers to oppress the
workers. Start passing legislation to make sure all employees are classified correctly and have workers
compensation. Stop protection profits over people.; marcia stewart, Self: Not good for workers rights...; Barry M.
Aarons, AZ ASSN OF LAWYERS FOR INJURED WORKERS: Neutral with the proposed committee amendment.;
Michael Colletto, Self: | represent the PFFA.

$B1167, unemployment insurance: benefit amounts; definition

Support:

Eric Crump, representing self; Cynthia Finnegan, representing self; Shirley Dye, representing self; Jere Fredenburgh,
representing self; Rose Sperry, representing self; Bill Blewster, representing self; Barbara Blewster, representing
self; Jennifer Weilsman, representing self; Nancy Hawkins, representing self; Mark Logan, representing self; Paul
Fitch, representing self; Theresa Logan, representing self; Stephen Harris, representing self; Lelann Anderson,
representing self; Corinne Haynes, representing self; Buffalo Rick Galeener, representing self; Robert Glass,
representing self; Hilton C. Harrison, representing self; Pam Anderson, representing self; Bridget Nelke,
representing self; Gary Saxhaug, representing self; James McFadzean, representing self; Linda Barnes, representing
self; Pam Lauck, representing self; M Macek, representing self; Beverly Ann, representing self; Tamara Holley,
representing self; Mary Grace Werner, representing self; Vicki Smith, representing self; Phyllis Lester, representing
self; Susan Kelly, representing self; Philip Bryson, representing self; Matt Davidson, representing self; Cynthia
Newswander, representing self; Starr Costa, representing self; James L Simpson, representing self; Mary Evelyn
Simpson, representing self; Mark Stevens, representing self; Indy Rebhun, representing seif; Peter Asencio,
representing self; Henry Ganster, representing self; Sue Harrison, representing self; Garrett Bowers, representing
self; Wendy Jonessee, representing self; Janis Flavin, representing self; Katheryn Tuberty, representing self; Nancy
Thornes, representing self; Lisa Gentry, representing self; Sue VanRiper, representing self; Michelle Whitehead,
representing self; Gisela Aaron, representing self; Jeannette Bovert, representing self; E Seeley, representing self;

Attachment A

brenda simon, representing self; Michael Aaron, representing self; Douglas Simon, representing self; angela godac,
representing self; Gary Zimmerman, representing self; Judith Swietlik, representing self; Ron Brooks, representing
self; Cory Ray, representing self; Joel Gleason, representing self; Janice Rimer, representing self; Julie Harrod,
representing self; Wendy Radimer, representing self; Paul Johnson, representing self; Jane Evans, representing self;
Sherry Proctor, representing self; Theresa Breithaupt, representing self; Kay Bateman, representing self

Neutral:
Joseph Myers, representing self; Dennis Genge, representing self

Oppose:

Kerry Jackson, representing self; Amy Pedotto, representing self; Ben Scheel, Opportunity Arizona; kathleen mayer,
representing self; Dave Long, representing self; Steve Ramos, representing self; Gina Griffiths, representing self;
Judith Simons, representing self; Mary Pradelt, representing self; Shirley Muney, representing self; Janet Larkin,
representing self; Steven Linder, representing self; Rebecca Smith Gross, representing self; Judith Robbins,
representing self; marilyn duerbeck, representing self; Maria Salvucci, representing self; Kevin Brown, representing
self; Mary Ann Graffagnino, representing self; Beatriz Urrea, representing self; Paul Benz, representing self; Karen
Syversen, representing self; Sallie Kladnik, representing self; Christina Mollica, representing self; Daria Lohman,
representing self; Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self, STATE CONFERENCE
NAACP; Elizabeth Putnam-Hidalgo, representing self; Cynthia Couture, representing self; Carol Maas, representing
self; Sherrilynn James, representing self; Donita Ramos, representing self; Ruthanna Battilana, representing self;
William Parker, representing self; Mary Grove, representing self; Helen Kim, representing self; Darrell
Boomgaarden, representing self; Kathryn Kaczmarek, representing self; Elizabeth Schauer, representing self;
Elizabeth Goff, representing self; Charlie Silver, representing self; Barbara Oliver, representing self; Ronald Eich,
representing self; Shirley Hervatin, representing self; Barbara Hutchinson, representing self; Becky Sayler,
representing self; Janet Hamlin, representing self; Brent Gibbs, representing self; Sally Harvey, representing self;
Robin LaVoie, representing self; Julie Golding, representing self; Christine Keitges, representing self; Jackie Rich,
representing self; Beverlee Loat, representing self; Sharon Lee, representing self; Stephanie Romero, representing
self; Chris Senko, representing self; Lawrence Peters, representing self; Linda Reichert, representing self; Cynthia
Lehigh, representing self; Linda Edwards, representing self; Kathy Fraser, representing self; Kimberlee McClure,
representing self; Mary Martiniak, representing self; Lucy Marshall, representing self; Mona Sebso, representing
self; Janet Senf, representing self; Kathy Pyner, representing self; Jocelyn Dustan, representing self; Marilyn Coyle,
representing self; Penny Boone, representing self; Ralph Meredith, representing self; Gayle Meredith, representing
self; Anne Leota Hart, representing self; Mary Santy, representing self; GARY LEW OLIVER, representing self;
Valerie Policastro Edie, representing self; Margaret Adams , representing self; Amy Etzkorn, representing self;
Marilyn Childs, representing self; Vickey Finger, representing self; Nancy Santori, representing self; Alicia Lucas,
representing self; Sue Thorne, representing self; Kathleen Martin, representing self; Mary-Jeanne Fincher,
representing self; Matthew Nelson, representing self; Gail Prestera, representing self; Roxanna Kearns,
representing self; Stephen Coyle, representing self; Jo Ann Caruthers, representing self; Michael Pyska,
representing self; Norman Fuchs, representing self; Steve Gorman-Hackstadt, representing self; William Hamilton,
representing self; Lora Lida Walradt, representing self; Dorothy Reed-inman, representing self; Nelson Morgan,
representing self; Linda Cooke, representing self; Linda Block, representing self; Christine McLachlan-Comer,
representing self; Carol Campbell, representing self; Cynthia Wagner, representing self; Lisa Maczura, representing
self; Nicole Fordey, representing self; Lori Taniguchi, representing self; Karolyn Switzer, representing self; Robert
Fisher, representing self; Julian Donahue, representing self; Jacqueline deSa, representing self; Kathleen Woessner,
representing self; Katharine Donahue, representing self; Mary Nelson, representing self; Jennifer Dawson,
representing self; Sarah Bihms LD29, representing self; Linda Guarino, representing self; Nataly Reed, representing
self; Margaret Bruns, representing self; Michael Weingarten, representing self; Evan Deaubl, representing self;
Emily Norton, representing self; Nancy Hancock, representing self; Rebecca Shook, representing self; Claire Bickel,
representing self; RITA DEPUYDT, representing self; George Ehrlich, representing self; Carol Garnett, representing
self; Dale Cohen-Bruno, representing self; Sharon Ehrlich, representing self; Angela Buer, representing self;
Rebecca Haynes, representing self; Devon Sloan, representing self; Margaret Lacey, representing self; Gary
Townsend, representing self; Marilyn Murov, representing self; Thomas Burke, representing self; ALICE BUCK,
representing self; Dan Roskey, representing self; Margaret Tinsley, representing self; Connie Cockrell, representing
self; Melanie Howe, representing self; Jerrold Borchardt, representing seif; Patricia Edelen, representing self;
Barbara Swenson, representing self; Eric Kadel, representing self; Thomas Dunning, representing self; David Myers,
representing self; Sheila Green, representing self; Jerry Wegenast, representing self; Rivko Knox, representing self;
Patricia Brunner, representing self; Alison Danis, representing self; Kathleen Sauer, representing self; STACEY
NORDWALL, representing self; Sally Caruso, representing self; John Walradt, representing self; Marcia Tingley,
representing self; Frederick James, representing self; Teresa Neiberg, representing self; Margaret Owen,
representing self; Eric Harris, representing self; Aaron Essif, representing self; Kelly Colvard-Walter, representing
self; Kathteen Butler, representing self; Charlotte Lis, representing self; Gary Rulapaugh, representing self; marcia
stewart, representing self; Caroline Anderson, representing self; Carmen Terrell, representing self; Loretta
O'Connor, representing self; Diane Klock, representing self; Theresa Prichard, representing self; John Propster,
representing self; Zeyna Pruzhanovsky, representing self; Andrew Fraher, representing self; Nancy Lecrone Nonini,
representing self; Peggy Church, representing self; Abigail Hlavacek, representing self; Alice Patricia Price,
representing self; Barbara Jones, representing self; Brenda Parker, representing self; Fred Miller, representing self;
Teresa Gerschutz, representing self; jeff green, representing self; Gabe Leadley, representing self; Nora Plonsky,
representing self; Allison Jackson, representing self; Don Howard, representing self; Mariann Leahy, representing
self; Christian Trujillo Cruz, representing self; Lisa Koenig, representing self; Charlene Campbell, representing self;
Joyce Howard, representing self; Joan Patrick, representing self; Roger Blain, representing self; Jill Anderson,
representing self; Suzette Taillac-Streit, representing self; Ariana Flores, representing self; Beth Ballmann,
representing self; Chery! Stafford, representing self; Shelley Stephenson, representing self; Dave Wells,
representing self; Margaret Cordovano, representing self; Lois Hansen, representing self; Janie Smieszek,
representing self; Karen Robbins, representing self; Elizabeth Brauer, representing self; Janis Newton, representing
self; William Yohey, representing self; Paula Van Derven, representing self; Dianna DiMaggio, representing self;
Brandy Reese, representing self; Shelly Gordon-Gray, representing self; Libby Stortz, representing self; Matthew
Flanagan, representing self; Erlinda Bates, representing self

All Comments:

Cynthia Finnegan, Self: Work for it; Shirley Dye, Self: Absolutely!! there are too many people on unemployment
milking we taxpayers and being lazy. Shortening the time of benefits will motivate folks to get a new job sooner.
Benefits could be phased out getting lower and lower monthly payments to stop.; Jere Fredenburgh, Self:
ABSOLUTELY....people don't look for a job until their ‘benefits’ paid for by WORKING PEOPLE run out. Their ‘ideal
job' perhaps not, but a JOB.; Stephen Harris, Self: Unemployment benefits are too rich and cause people to stay
outside of job market; Bridget Nelke, Self: | support this bill. The unemployment benefit timeframe has contributed
to the dis-incentive to return to work for those able to work; Gary Saxhaug, Self: Nothing is free. Employees pay for
this indirectly. Presumably a reduction in benefits would result in a reduction in the tax. It is a well known fact that
unemployed people tend to not find a job until their unemployment benefits run out.; Pam Lauck, Self: We need to
get folks on unemployment back to work sooner not later. Now they have no incentive to get a job until their
benefits run outl; Mary Grace Werner, Self: People being human will not look for work as long as they know they
will continue to get unemployment monies. Shortening that time period will encourage unemployed personnel to
start job hunting sooner.; Philip Bryson, Self: | am an elected PC in Pima County LD18 precinct 262; Matt Davidson,
Self: We owe it to our state retirees to pay the retirement benefits that were promised to them; Mark Stevens,
Self: Employees pay for this indirectly. Presumably a reduction in benefits would result in a reduction in the tax;
Peter Asencio, Self: | am a PC Captain YAVAPAI COUNTY; Garrett Bowers, Self: ft is a well-known phenomenon that
people on unemployment don't look for a job UNTIL they're benefits are running out.; Gary Zimmerman, Self:
Unemployed people tend to not look to hard for work until their benefits are about to run out. AND it lowers
taxes}; Julie Harrod, Self: No un-funded liabilities; Wendy Radimer, Self: | am a Precinct Committee Co- Captain
and ai agree with this bill; Paul Johnson, Self: | am a PC Captain and | agree with this bill; Kerry Jackson, Self: Stop;
protecting profits over people II! The people deserve insurance when unemployed, they deserve being correctly
classified by their employers. This is a race to the bottom stop oppressing those who have already suffered from
the power of the rich; Amy Pedotto, Self: $B1167 will: harm AZ communities that typically have higher rates of
unemployment; hinder DES's efforts to modernize UI technology; potentially damage the economy if people drop
out of the workforce when benefits are cut early. http://bit.ly/401yiBa; kathleen mayer, Self: bad policy; Mary
Pradelt, Self: Especially harmful to rural residents and anyone who would be forced to take a job below their
previous salary. Hurts earnings potential for the rest of their lives.; Mary Ann Graffagnino, Self: This is WRONG
since it forces people to accept jobs that don't match their abilities and skills and pay less than what they have
earned in the past.; Beatriz Urrea, Self: would disproportionately harm rural areas and people of color, who
typically have higher rates of unemployment compared to the state average.; Paul Benz, Self: instead of reducing
the unemployment compensation rate, why not work to fix the ongoing problems at the department of economic
security Reject/Veto this one pleasel! Paul Benz pbenz54@gmail.com; Karen Syversen, Self: Reducing weeks of
assistance forces some to accept jobs that don't match their skill set and pay them less than their prior earnings.;
Elizabeth Putnam-Hidalgo, Self: This bill would just make it more difficult for people who are already struggling to
recover economically. Why would any legislator want to do that to the (voting) population and others?!; Kathryn
Kaczmarek, Self: This bill is punitive to the unemployed. it is bad for workers and the AZ economy; Sally Harvey,
Self: We already have very low unemployment assistance.; Jackie Rich, Self: an individual's unemployment is not

related to the unemployment rate, it has to do with a lot of factors unique to the individual.; Lawrence Peters, Self:

Bill ignores reality that Arizona’s rural areas have far fewer employment opportunities. Lawmakers should focus on
economic development for rural areas.; Cynthia Lehigh, Self: AZ unemployment relief is already one of the lowest.
Workers pay into it, so it should be there to help when needed. Few families can survive on the paltry amount.;
Kathy Pyner, Self: The unemployment rate has great differences between metro and rural areas. This would be a
big disadvantage for rural ares.; Penny Boone, Self: This will disproportionately harm rural areas & people of color
who often have higher rates of unemployment compared to the state average. This is an attempt by extremists to
impose cruelty on those they see as unequal. | oppose.; Anne Leota Hart, Self: Another bad bill intended to harm
rural Arizonans and Arizonans of color. Let's see some legislation to help us and our economy, not penalize our
workers and damage our economy.; Mary-Jeanne Fincher, Self: AZ already has one of the ljowest unemployment
benefits in the country. This is just cruel.; William Hamilton, Self: Punishes poor and rural communities who are
predominantly below the mean of employment and income; Lora Lida Wairadt, Self: Bill punishes those who are
unemployed through no fault of their own. Punishing the unemployed does not solve unemployment!; Nelson .
Morgan, Self: Unemployment provides temporary help that should not be further reduced. The statewide
unemployment rate does not adequately reflect local conditions throughout the state.; Carol Campbell, Self: his
would disproportionately harm rural areas who typically have higher rates of unemployment compared to the
state average.; Cynthia Wagner, Seif: Reducing weeks of assistance will force some people to accept jobs that do
not match their skill sets and pay less than their prior earnings, which is bad for both workers and the economy.;
Lisa Maczura, Self: Good data is one thing, but perhaps not too many people have been helped by being
bludgeoned with statistics? Hmmm...; Karolyn Switzer, Self: This may make sense in cities and for white people,
but rural residents and people of color have different circumstances and may need more time to find a Job suited
to their skills.; Katharine Donahue, Self: Sounds reasonable on the face of it, but not all areas have the same
conditions.; Jennifer Dawson, Self: would disproportionately harm rural areas and people of cofor, who typically
have higher rates of unemployment compared to the state average. Will force some people to accept jobs that do
not match their skill sets and pay less.; Sarah Bihms LD29, Self: The bill links unemployment relief duration to
Arizona's unemployment rate, negatively impacting rural areas and people of color who experience higher
unemployment rates. This could force workers into unsuitable jobs and lower wages. Vote no.; Linda Guarino, Self:
This would hurt rural communities.; Rebecca Haynes, Self: Reducing weeks of assistance will force some people to
accept jobs that do not match their skill sets and pay less than their prior earnings, which is bad for both workers
and the economy. It will also disproportionately affect rural areas and POC.; Gary Townsend, Self: Ul benefits are
already too low.; Marilyn Murov, Self: Those living in rural areas will be disproportionately hurt by this bill;
Margaret Tinsley, Self: Arizona already has one of the lowest unemployment payments. These people are
stressed enough. We should provide enough funds for them to live on.; Patricia Edelen, Self: Predominately would
hurt rural folks and force people to take jobs that do not fit them with reduced pay.; Eric Kadel, Self: Here is a
radical idea to disincentivize unemployment benefits. Have employers pay their workers a livable wage.; Thomas
Dunning, Self: Beyond loving human beings, why assist people having hard times? Because assistance contributes
toa virtuous circle that helps everyone. For example , grocery stores increase their income, helping the economy.
Reducing help hurts all of us.; Rivko Knox, Self: Very harmful to rural, lower skilled Arizonans as the statewide
unemployment rate does not tell the ‘real' story for everyone. Cutting off assistance on the basis of a statewide
figure will seriously harm a lot of peopfel!; John Wairadt, Self: LD-8. So what are you trying to do here? 401K
unemployment benefits? When the rate falls, so do the benefits. Get rid of this unfair and nonsensical billl;
Margaret Owen, Self: This does not help our state- it would be bad for workers & our state economy. You would be
harming our rural areas & minorities of color. Less weeks of assistance would force some to accept jobs that pay
less or which don't match their work skills.; marcia stewart, Self: why the connection the state numbers? Where Is
the correlation to people? This would be harmful to workers and our economy; Theresa Prichard, Self: this plan is
bad for the workers and the economy.; John Propster, Self: Let's punish people because they are out of work.
Spiteful bill. OPPOSE!; Beth Balimann, Self: This bill disproportionately harms people from rural areas and others
who have higher rates of unemployment. It forces peopte to accept jobs that don't match their skill sets and pay
less than prior earnings-bad for the economy and bad for the worker; Cheryl Stafford, Self: This would
disproportionately harm rural areas and people of color, who typically have higher rates of unemployment
compared to the state average. This is bad for both workers and the economy.; Joseph Myers, Self:
Unemployment benefits bills should encourage the unemployed to seek employment while receiving benefits.;
Dave Wells, Self: The Grand Canyon Institute finds cutting elig. weeks may actually REDUCE labor force
participation. https://grandcanyoninstitute.org/wp-content/uploads/2023/03/GCI_Policy-Brief-AZ-Legislature-
Considers-Cuts-to-Unemployment-Benefits_March_13_2023.pdf; Margaret Cordovano, Self: To tie the length of
unemployment benefits to the Arizona unemployment rate would harm rural areas where the rate is usually
higher.; Lois Hansen, Self: Reducing weeks of assistance will force some people to accept jobs that do not match
their skill sets and pay less than their prior earnings, which is bad for both workers and the economy; Janie
Smieszek, Self: Not good for worker, especially rural and people of color who typically have higher rates of
unemployment; Elizabeth Brauer, Self: This would harm rural areas. Are you sure you want to do this?; William
Yohey, Self: Another really weird attempt to not deal with reality. This bill does not help the unemployed in many
rural or seasonal employee locations.; Brandy Reese, Self: Reducing weeks of assistance will force some people to
accept jobs that do not match their skill sets and pay less than their prior earnings, which is bad for both workers

and the economy.; Matthew Flanagan, Self: GA

$B1191, disbursements: applicability: definition

Support:
Jennifer Harris, WESTERN ALLIANCE BANCORPORATION; Mike Huckins, GREATER PHOENIX CHAMBER OF
COMMERCE; Lisa Gentry, representing self; Jay Kaprosy, WESTERN ALLIANCE BANCORPORATION

Neutral:
Lauren King, LAND TITLE ASSOCIATION OF ARIZONA (LTAA); Sue VanRiper, representing self

All Comments:
Lauren King, LAND TITLE ASSOCIATION OF ARIZONA (LTAA): The LTAA is neutral on the bill, as amended in the
Senate.

SCR1033, state debt: limit; restrictions; prohibitions
Support:

John Matthews, representing self; Susanne Wright, representing self; Dwight Kadar, representing self; Andrea
Kadar, representing self; Cathy Schwanke, representing self; Aimee Yentes, AZ FREE ENTERPRISE CLUB; Janelle
Solomon, representing self; David Schafranka, representing self; Susan Leeper, representing self; Dan Goebel,
representing self; Michael Schroeder, representing self; Charles McCain, representing self; Michael Meacham,
representing self; Rachel Bauer, representing self; Katie Napp, representing self; Deanna Schreckler, representing
self; Stephen Harris, representing self; Leiann Anderson, representing self; Corinne Haynes, representing self;
Buffalo Rick Galeener, representing self; Ute Edge, representing self; Hilton C. Harrison, representing self; Charles
Schinke, representing self; Maryclare Abatecola, representing self; Charles Mackey, representing self; Tom Booth,
representing self; Ruth Foelber, representing self; DEBRA SCHINKE, representing self; Nikki Colletti, representing
self; Dianna Gates, representing self; Bridget Nelke, representing self; Carole Challoner, representing self; Claribeth
Davis, representing self; James McFadzean, representing self; Jana Reible, representing self; Lori Huff, representing
self; Brenda Marts, representing self; April Smith, representing self; Stacy Shepard, representing self; Joseph
Myers, representing self; Richard Burke, representing self; John Tanzi, representing self; Mary Ann Johnston,
representing self; Vickie Parks, representing self; Cherie Anello, representing self; Peter Anello, representing self;
Ed O'Brien, representing self; Amy Ross, representing self; Tim Johnson, representing self; Shawn Smith,
representing self; Bryniee Smith, representing self; Braeden Smith, representing self; Brooklyn Smith, representing
self; Ruth Denny, representing self; Kathy DuFresne, representing self; A B, representing self; Janet Wilson,
representing self; Joe Fiumara, representing self; Nancy Osgood, representing self; Sandra Lowery, representing
self; Louie Caparelli, representing self; Jack Payne, representing self; Mozelte Ault, representing self; Kristin
Baumgartner, representing self; Stan Howard, representing self; Thaya Howard, representing self; Joyce Mansur,
representing seif; J Holmes, representing self; Sallie Orbas, representing self; Daryl Lassen, representing self;
Harold DarcAngelo, representing self; Brent Meadows, representing self; Mary Evelyn Simpson, representing self;
christopher klepacz, representing self; Dale Brewer, representing self; Denise Lockwood, representing self; Sue
Harrison, representing self; Kelly Walterscheid, representing self; Patricia Cipro, representing self; Marc Monterey,
representing self; Donna Booth, representing self; Sandra Carlson, representing self; Doris Hinton, representing
self; Janet Manecke, representing self; Merl Nielsen, representing self; Daniel Spencer, representing self; Kathryn
Farkas, representing self; Susan Kay, representing self; Jessica O'Connor, representing self; Wendy Jonessee,
representing self; Sady Flynn, representing self; Patricia Moore, representing self; Ann Starr, representing self;
Richard Freeze, representing self; Bob Alonzo, representing self; Cheri Raimonde, representing self; Jennifer
Marriott, representing self; Paul Marriott, representing self; LW Forster, representing self; Catherine Day,
representing self; Judy Alonzo, representing self; Nancy Thornes, representing self; Lisa Gentry, representing self;
Sue VanRiper, representing self; Charles Moffett, representing self; David Fountain, representing self; Barb
Hinderland, representing self; Mary Jamsa, representing self; deana corsa, representing self; Laura Belcourt,
representing self; Roy Scott Lassell, representing self; Doris Mills, representing self; Teresa Schrader, representing
self; Barton Anderson, representing self; Pam Throw, representing self; Wayne Throw, representing self; brenda
simon, representing self; kare hetrick, representing self; Jerri Dingledine, representing self; James Auit,
representing self; Chris Russo, representing self; Susan Gavigan, representing self; Marie Heichman, representing
self; Patricia Keitel, representing self; Charles Perdue, representing self; George Duffield, representing self; Joelene
Williamson, representing self; Christine Stoner, representing self; eileen acosta, representing self; Doyle Taraba,
representing self; Susan Garvey, representing self; K Caillier, representing self; Dan Goebel, representing self;
Karen Sherrell, representing seif; Gaye Champine, representing self; Ted Burwell, representing self; John Reed,
representing self; Lois Dold, representing self; Donald Koeppen, representing self; Marcia Sahag, representing self;
Cynthia Starr, representing self; Jeanine Gouveia, representing self; Lee Chadbourn, representing self; Patricia
Phillips, representing self; Jim Jensen, representing self; Janice Rimer, representing self; Lynda Patrick-Hayes,
representing self; Darlene Jung, representing self; Julie Harrod, representing self; Wendy Radimer, representing
self; Paul Johnson, representing self; Debbie Russo, representing self; Elizabeth Olmstead, representing self; Jane
Evans, representing self; Theresa Breithaupt, representing self; Elizabeth Piccolo, representing self; KAREN VOLLIS,
representing self; Raymond Darragh, representing self; Wanda Lund, representing self; Susan Whittemore,
representing self; Sue Norton-Scott, representing self

Oppose:

Kerry Jackson, representing self; Christine McLachlan-Comer, representing self; Kathleen Pettycrew, representing
self; Dianne Post, representing self; Kathleen Dubbs, representing self; Kenneth Bierman, representing self; Sharon
Lee, representing self; Nancy Lecrone Nonini, representing self; Becky Sayler, representing self; Catherine Sigmon,
representing self; joan hall, representing self; Catherine Hopkins, representing self; Jeannine Reno, representing
self; Beth Lewis, SAVE OUR SCHOOLS ARIZONA, Self; Judith Robbins, representing self; Paula Van Derven,
representing self; Rebecca Shook, representing self; Kathleen Butler, representing self; Paula Feely, representing
self; Russell Tucker, representing self; Anne Leota Hart, representing self; Penny Boone, representing self; Karen
McLaughlin, Director of Budget & Research, THE ARIZONA CENTER FOR ECONOMIC PROGRESS; Nicole Wolff,
representing self; Abigail Hlavacek, representing self; Matthew Flanagan, representing self; Ben Scheel,
Opportunity Arizona; Amy Pedotto, representing self; kathleen mayer, representing self

All Comments:

John Matthews, Self: Please try to balance the state budget for once. And stay in that Budget!; Dan Goebel, Self:
Registered voter and grandparent, please support this Bill.; Maryclare Abatecola, Self: I'm a PC, a business owner
and parent.; Charles Mackey, Self: | support SCR1033. This bill will allow the state to better manage the budget.;
Bridget Nelke, Self: as a 50 year resident of Arizona and a business owner, I'd love to see our state have a
mandatory balanced budget, let's pass this and keep working on sound financial choices; April Smith, Self: Let the
voters decide on what happens with the surplus, give it back to the people and stop spending the people's money;
Joseph Myers, Self: Puts an appropriate, sensible guard against high state government taxation, The principles of
personal financial best practices are good for our statel; Nancy Osgood, Self: As a PC in LD12 I support this bill.;
Kristin Baumgartner, Self: i'm a PC Captain and support this bill.; § Holmes, Self: Please put a cap on state debt so
AZ is solvent for longterm.; Harold DarcAngelo, Self: LD15 PC; Mary Evelyn Simpson, Self: YavGOP. Totally great
bill; Dale Brewer, Self: | am a concerned Precinct committeeman, and a former business owner.; Daniel Spencer,
Self: surplus is not free $; Kathryn Farkas, Self: Let the voters decide on what happens with the surplus, give it back

to the people and stop spending the people's money.; Susan Kay, Self: Republican, LD3; Sady Flynn, Self: Real
Estate agent,; LW Forster, Self: Please support. No more spending. NO MORE DEBTI No more taxes!; Catherine Day,
Self: Stop spending and causing tax payers more! Stop funding recklessly, Saw a group last week wanting taxpayers
to get hit harder, chanting IN favor for taxpayers to not get a break! Like to know who they were and who is paying
themll; David Fountain, Self: Thank you for supporting this bill PC LD9; Mary Jamsa, Self: This is a common sense
bill. | support it.; deana corsa, Self: The voters need to decide to on debt limits... We need a balanced budget Deana
Corsa PC; Roy Scott Lassell, Self: | fully support. We need to manage to our budget.; Chris Russo, Self: I'm a PC from
PV. The dems love to spend. if we let them, we would be paying for their foolishness like climate change, light rail,
equity and abortion. if they see money, they want to spend it. Don't be like the dems, pleasel; George Duffield,
Self: Recommend passage of this resolution.; Joelene Willlamson, Self: | am for this bill because i believe the voters
should decide this issue.; eileen acosta, Self: | support SCR1033; Doyle Taraba, Self: Pc; Susan Garvey, Self: Arizona
is out of control; Dan Goebel, Self: Registered voter and grandparent, please support this Bill.; Karen Sherrell, Self: |
favor transparency; Lois Dold, Self: In these times we need fiscal responsibility from our lawmakers.; Patricia
Phillips, Self: Precinct Committeeman, Coconino County State committeeman; Julie Harrod, Self: AZ should strive
for less debt and even a budget surplus to be strong and free.; Wendy Radimer, Self: | am a Precinct Co-Captain
and | agree with this bill; Paul Johnson, Self: | am a Precinct Captain and | agree with this bill; Debbie Russo, Self: |
am a thrifty person. | spend, when necessary and save when necessary. The government should learn this basic
principle like everyone else has to. If you save up for a car you buy a car not a motorcycle. This is a great bill.;
Elizabeth Olmstead, Self: | am a PC in Navajo County and support this bill; Elizabeth Piccolo, Self: Support a
concurrent Resolution proposing an amendment to the Constitution of Arizona; Amending Article IX, Section 5,
Constitution of Arizona; Relating to the Power of the State to Contract Debt; KAREN VOLLIS, Self: adhere to state
debt limit; Wanda Lund, Self: Thank you; Susan Whittemore, Self: | am a precinct committeeman in LD18. |
represent 175 votes on this matter.; Sue Norton-Scott, Self: This is important - boundaries are needed.; Kerry
Jackson, Self: This is why you have been elected; to debate and pass a budget. Not to restrict your ability to
override a budgetary decision.; Kathleen Dubbs, Self: Dangerous restriction which would not allow for
emergencies; Catherine Sigmon, Self: Don’t lock out flexibility in future economic conditions. This risks all future
budget investments; Catherine Hopkins, Self: This legislature is so disappointing. Bill is not good for our state or
any future economic downturn. STOP; Judith Robbins, Self: Do not refer this to the voters. Our state legislators are
responsible for balancing the budget and if we need temporary debt to get us through bad times, then so be it.
Vote NO on this referral.; Anne Leota Hart, Self: This is a terrible idea. And only an end around our democratic
governor. Learn to work together and stop this nonsense.; Penny Boone, Self: This bad law will tie the hands of
future legislators during any forthcoming economic turndown. | oppose.; Karen McLaughlin, THE ARIZONA CENTER
FOR ECONOMIC PROGRESS: Taking on debt was key to keeping the state budget out of the red during the Great
Recession. It should not be made inaccessible for future legislatures.; Matthew Flanagan, Self: @; kathleen mayer,
Self: as an elected PC i am opposed to any arbitrary limit on budget expenditures. if legislators are afraid to spend
$ for the benefit of the citizens, they shouldn't have their jobs.

ARIZONA STATE LEGISLATURE
Fifty-sixth Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Justin Wilmeth VICE-CHAIRMAN: _ Michael Carbone
DATE 03/14/23 123 /23 123 /23
CONVENED Ai06 pm m m m m
RECESSED
RECONVENED
ADJOURNED BS30M
t
MEMBERS
Aguilar v
Austin vA
Carter v
Gress Va
Heap 4
Hendrix v
Ortiz J
Sun A
Carbone, Vice-Chairman Y
Wilmeth, Chairman v

| Present --- Absent exc Excused

Attachment A

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session

Leeann ree meee ner eres NTE TREE NENT]
SB 1164: workers' compensation; fraud investigations; adjudications
Sponsor: Senator Kaiser, LD 2
Committee on Commerce

Overview
Requires the Industrial Commission of Arizona (ICA) to create a fraud unit to investigate workers’

compensation fraud.

History
The ICA is the state regulatory agency responsible for processing and adjudicating a workers’

compensation claim (Title 23, Chapter 6, A.R.S.). The ICA has exclusive jurisdiction over
complaints involving alleged unfair claim processing practices or bad faith by an employer, self-
insured employer, insurance carrier or claims processing representative relating to workers’
compensation. The ICA investigates allegations of unfair claim processing or bad faith either on
receiving a complaint or on its own motion (A.R.S. § 23-930).

Any person who knowingly makes a false statement or representation for a workers’
compensation claim in order to obtain any compensation, benefit or payment for themself or
another person is guilty of a class 6 felony, subject to a maximum of one and one-half years in
prison, a $50,000 fine. If the person is a claimant for compensation, the claimant must also forfeit
all rights to any further temporary or permanent disability compensation for the claim on which
the false statement or representation was made after conviction of the offense (A.R.S § 23-1028).

An insurer that believes a fraudulent claim has been made must send information relative to the
claim to the director of the Department of Insurance and Financial Institutions (DIF), including the
identity of parties claiming loss or damage as a result of an accident and any other information
DIFI's fraud unit may require. If the director determines, after an investigation, that fraud, deceit
or intentional misrepresentation in the submission of the claim exits, the director may report the
violations of the law to the reporting insurer, the appropriate licensing agency and to the
appropriate county attorney or the attorney general for prosecution (A.R.S. § 20-466).

Provisions
1. Directs the ICA to establish a fraud unit to investigate fraudulent activities, statements or

representations in connection with worker's compensation claims. (Sec. 1)

2. Allows the fraud unit to investigate fraud allegations on either the receival of a complaint or
on the fraud unit's own motion. (Sec. 1)

3. Stipulates any allegation involving an unfair claim processing practice or bad faith by an
employer, self-insured employer, insurance carrier or claims processing representative must
be addressed in accordance with the unfair claim processing practice statutes. (Sec. 1}

4. Requires the ICA to adopt rules to establish a process for receiving complaints and conducting
investigations and delineates requirements for such rules. (Sec. 1)

C1) Prop 105 (45 votes) (1 Prop 108 (40 votes) O Emergency (40 votes) 0 Fiscal Note

SB 1164
Initials PRB/HG Page 14 Cammarra

Attachment ! ,
5. Permits the fraud unit to report violations of law for prosecution to specified entities, if satisfied
upon investigation that the fraudulent activities, statements or representations were made in
connection with a workers’ compensation, benefits or payments claim. (Sec. 1)

6. Specifies that the requirement for the fraud unit to investigate workers' compensation fraud

does not limit:

a) the authority of the ICA, DIFI or any other entity to pursue any remedy in accordance with
the unfair claim processing practice statutes or statutorily prescribed legal remedies;

b) the right of an insurance carrier, a self-insured employer or the ICA’s Special Fund to issue
a notice affecting the status of a workers’ compensation claim at any time, if prior
determination of compensability or entitlement to benefits was procured by fraud; or

c) the obligation of an insurer to report a workers' compensation fraud claim in accordance
with statutory requirements. (Sec. 1)

feceneennmnnee

SB 1164
initials PRB/HG Page 2 Commerce

Fifty-sixth Legislature Commerce
First Regular Session §.B. 1164

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1164

(Reference to Senate engrossed bill)

Page 1, lines 30 and 31, after "COMPENSATION" strike the comma
Line 32, after "LAW" insert "TO THE CLAIMANT OR CLAIMANT'S REPRESENTATIVE,"
Strike lines 40 through 44

Renumber to conform

Amend title to conform

JUSTIN WILMETH

LIG4WILMETH. docx
03/13/2023

08:15 AM

H: PRB/1s

Attachment_. )

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. $B 1164
DATE March 14, 2023 MOTION: D p lan
PASS AYE NAY PRESENT | ABSENT
Aguilar J
Austin J
Carter VA
Gress J
| Heap VA
Hendrix V
Ortiz vA
Sun . _/
Carbone, Vice-Chairman J/ y
Wilmeth, Chairman v4
| 2 es, O

APPROVD:

Lo AUSTIN WILMETH, Chairman
ICHAEL CARBONE, Vice-Chairman

Susman (Nabi

\COMMITTEE SECRETARY

b

ATTACHMENT

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session

Be ise ae ars ULE SS Ni iii el eas colo on nN a ea ug une a age eee eis amr |
SB 1191: disbursements; applicability; definition
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Overview
Includes distributed ledger technology transfers as a permissible form of deposit into an escrow

account.

History
Escrow agents are persons engaged in the business of accepting escrows, which is any

transaction wherein escrow property is delivered to a person not otherwise having any right, title
or interest in connection with the sale, transfer, encumbrance or lease of real or personal property
to be delivered or redelivered upon the contingent happening or non-happening of a specific event
or prescribed act (A.R.S. § 6-801).

Pursuant to A.R.S. § 6-843, escrow agents may only disburse money out of an escrow account if
deposits are previously made that are at least equal to the disbursements and the deposits relate
directly to the transaction for which the money is being disbursed. The deposits are statutorily
required to be in at least one of the following forms: 1) wire transfers; 2) checks, drafts, negotiable
orders of withdrawal, money orders or any other item that has become available for withdrawal in
accordance with federal law; 3) credit transfers through the automated clearing house that are
deemed available by the depository institution receiving the credits; 4) cashier's checks, certified
checks or teller's checks; or 5) checks made by an affiliate of a state or federally regulated
depository institution.

However, an escrow agent may disburse up to $500 per transaction or any funds that are available
as cash without complying with the disbursement requirements.

Provisions

1. Adds, to the permissible forms of deposit into an escrow account, distributed ledger
technology transfers (Transfers) within or among a secure network of federally insured
depository institutions where disbursements are recorded on a ledger and securely deposited
in an escrow agent's depository account. (Sec. 1)

2. Requires a depository institution to settle Transfers using an established national clearing
house network. (Sec. 1)

3. Prohibits Transfers from being settled or backed by a digital currency of the U.S. government.
(Sec. 1)

4. Mandates Transfers to be fully settled, irrevocably credited and transferred in U.S. dollars.
(Sec. 1)

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

SB 1191
Initials PRB/HG Page 1 Commerce

Attachment

5. Defines distributed ledger technology as a decentralized, shared and immutable ledger, which
may be public or private, permissioned or permissionless, or driven by tokenized crypto
economics or tokenless. (Sec. 1)

6. Stipulates the ledger must be tamper resistant and protected with cryptography to preserve
the data. (Sec. 1)

7. Specifies a Transfer, whether tokenized or tokenless, must maintain price stability by backing
the vaiue of the transferred digital asset to U.S. dollars that is redeemable on a one-to-one

basis. (Sec. 1)
8. Makes technical changes. (Sec. 1)

SB 1191
Initials PRB/HG Page 2 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1191

DATE March 14, 2023 motion: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar

SIN

Austin
Carter

Gress

Heap

INN

Hendrix
Ortiz V4
) VA

Sun

Carbone, Vice-Chairman
Wilmeth, Chairman

Ht O | oO

Aion\ No gun

COMMITTEE SECRETARY

<<

JUSTIN WILMETH, Chairman oo
ICHAEL CARBONE, Vice-Chairman

ATTACHMENT. 8

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