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"Arizona House of Representatives Committee on Commerce Report of Regular Meeting for March 18, 2025"

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The Report of Regular Meeting of the Arizona House of Representatives Committee on Commerce, Fifty-seventh Legislature, First Regular Session, for Tuesday, March 18, 2025, chaired by Representative Weninger. The meeting convened at 3:26 P.M. and adjourned at 4:52 P.M. The committee action table records votes on SB1062 (legal tender; cryptocurrency), SB1373 (digital assets strategic reserve fund) and SB1025 (public monies; investment; virtual currency), each DP 6-4-0-0, and on SB1296, SB1540, SB1467 and SB1551. Attachments include the agenda, a Request to Speak report listing members of the public registered in opposition to SB1025 with their comments, and committee attendance. The report closes with House amendments to S.B. 1551 on workers' compensation disability benefits and the SB 1551 roll call vote.

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

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 18, 2025

House Hearing Room 5 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR

Convened 3:26P.M.
Recessed RECEIVED
Reconvened CHIEF CLERKS OFFICE

Adjourned 4:52 P.M. MAR 19 2025

Members Present Members Absent

Representative Aguilar
Representative Blackman
Representative Cavero
Representative Connolly
Representative Diaz

Representative Hendrix
Representative Villegas
Representative Wilmeth
Representative Way, Vice-Chairman
Representative Weninger, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action Vote Attachments
SB1062 DP 6-4-0-0 4,5

SB1373 DP 6-4-0-0 6,7

SB1025 DP 6-4-0-0 8,9

SB1296 DPA 6-4-0-0 IDL
SB1540 DPA/SE 10-0-0-0 =13,14,15
SB1467 DP 10-0-0-0 16,17
SB1551 DPA 9-1-0-0 18,19,20

Cb Aolwey.

Abby Seley, Committg/Secretary
March 19, 2025

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

COMMITTEE ON COMMERCE
March 18, 2025
Cain! S226 pm
Adien Z f SZ ern
REVISED - 3/14/25 REVISED - 3/14/25 “REVI ED - 3/14/25

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - First Regular Session

SPECIAL MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 18, 2025 ROOM HHRS5 TIME 2:00 P.M. or upon recess or
adjournment of Floor

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=202503 1075

Members:
Representative Aguilar Representative Diaz Representative Wilmeth
Representative Blackman Representative Hendrix Representative Way, Vice-Chairman
Representative Cavero Representative Villegas Representative Weninger, Chairman

Representative Connolly

Bills Short Title Strike Everything Title

SB1025 public monies; investment; virtual currency
_DP_ (Rogers: Weninger)

COM, RULES
-Y -Q-0

SB1062 D p legal tender; cryptocurrency

(Finchem: Farnsworth, Rogers, et al)

COM, RULES
¢ -4 -0-0

unemployment benefits; requirements;

SB1296
D PA disqualifications; determinations

(Finchem: Biasiucci)
-2. COM, RULES

SB1373 D p digital assets strategic reserve fund

(Finchem)

COM, RULES
G 4 -00

SB1467 liquor; consumption; watercraft
DP (Shope)
COM, RULES

- oe

10-0-0-0

Page 1 of 2 ATTACH MENT
Bills Short Title Strike Everything Title

SB1540 personal property exemptions; vehicles S/E: homestead; personal property;
S (Carroll) exemptions

js-0-0" COM, RULES

———— aro)

SB1551 workers' compensation; disability; definitions

q-1-0-0 COM, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

RA

03422025
03/14/2025

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 (3/18/2025)

S$B1025, public monies; investment: virtual currency

Oppose:

Katherine Warren, representing self; Carolyn Watson, representing self; kathleen mayer, representing self; Dave
Long, representing self; Janie Hydrick, representing self; Laurence Wittig, representing self; Steve Ramos,
representing self; Judith Simons, representing self; Mary Pradelt, representing self; Steven Linder, representing
self; Judith Robbins, representing self; Dawn Tripp, representing self; Frank Machek, representing self; Maria
Salvucci, representing self; Kevin Brown, representing self; Beverly Janowitz-Price, representing self; Theodora
Schiro, representing self; Jeanne Casteen, representing self; Susan Doherty, representing self; Beatriz Urrea,
representing self; Alisa McMahon, representing self; Lisa Olson, representing self; Michael Fiflis, representing self;
DOUG ARNOLD, representing self; Vivian Perry, representing self; Christina Mollica, representing self; Dianne Post,
AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Cynthia Couture, representing self; Carol Maas,
representing self; Sherrilynn James, representing self; Donita Ramos, representing self; Adena Bank, representing
self; Mary Grove, representing self; Barbara Fraboni, representing self; Darrell Boomgaarden, representing self;
Katherine Doman Sheydayi, representing self; Nancy C. Faria, representing self; Charlie Silver, representing self;
Barbara Oliver, representing self; Cynthia Hans, representing self; Marylynne Shroyer, representing self; Becky
Sayler, representing self; Susan Morris, representing self; Doris Freeman, representing self; Robin LaVoie,
representing self; Julie Golding, representing self; Christine Keitges, representing self; Andrea Stefanov,
representing self; Lawrence Peters, representing self; Barb Larson, representing self; Linda Reichert, representing
self; Linda Edwards, representing self; Kathy Fraser, representing self; Angela Shopmeyer, representing self; Jeri
Dow, representing self; Paula Redinger, representing self; Katherine Lathrop, representing self; Janet Senf,
representing self; Peggy Yeargain-Williams, representing self; Kathy Pyner, representing self; William Tripp,
representing self; Marilyn Coyle, representing self; Donna Walkuski, representing self; Joan Murphy, representing
self; Penny Boone, representing self; Ralph Meredith, representing self; Gayle Meredith, representing self; Anne
Leota Hart, representing self; Diane Lings, representing self; Nancy Wood, representing self; GARY LEW OLIVER,
representing self; Valerie Policastro Edie, representing self; Margaret Adams , representing self; Marilyn Childs,
representing self; Mariette Francis, representing self; Ruth Shea, representing self; Martha O'Connor, representing
self; Kathleen Dubbs, representing self; Rebecca Scotney, representing self; Mary-Jeanne Fincher, representing
self; Matthew Nelson, representing self; Luis Oquendo, representing self; Glenn Sollers, representing self; Dorothy
Taylor, representing self; Roxanna Kearns, representing self; William S. James, representing self; Stephen Coyle,
representing self; Eileen Goldman, representing self; Michael Pyska, representing self; Rebecca Haynes,
representing self; Mary Nelson, representing self; Barbara Jacobsen, representing self; Susan Phelps, representing
self; Sarah Harris, representing self; Dee Leuzinger, representing self; Kathryn Anderson, representing self;
Charlotte Lis, representing self; Carol Fiore, representing self; Jeannette Scoufos, representing self; Larry Scoufos,
representing self; William Yohey, representing self; Michael Weingarten, representing self; Joan Thomas,
representing self; Meredith Brown, representing self; Jennifer Dawson, representing self; Dieter Knecht,
representing self; Allison Jackson, representing self; Linda Cooke, representing self; Libby Stortz, representing self;
Bart Briefstein, representing self; Marin Lersch, representing self; Jillian Ryan, representing self; Barbara McGill,
representing self; Patty Goldsmith, representing self; James Stein, representing self; Nancee K Wood, representing

ATTACHMENT 7.
self; Devon Sloan, representing self; Pat Jayson, representing self; Aaron Torrance, representing self; Suzanne
Zimmerman, representing self; Joseph Murray, representing self; Kathleen Bashor, representing self; Nelson
Morgan, representing self; Daniel Mardock, representing self; Karen Dubin, representing self; Stephen Flaaen,
representing self; Jacqueline deSa, representing self; Eric Kadel, representing self; Carol Garnett, representing self;
Sarah Bihms LD29, representing self; Maria Hidalgo, representing self; Joseph Alexander, representing self;
Kathleen Sauer, representing self; Angela Buer, representing self; Maninko - Albina Archer, representing self;
Margie Gomez, representing self; Marilyn Murov, representing self; Jeanne Hardie, representing self; Ted Dubin,
representing self; Frederick James, representing self; Shana Tevlin, representing self; Barbara Larson, representing
self; Melinda Bell, representing self; Christine Sujak, representing self; Rivko Knox, representing self; Cindy Bieger ,
representing self; lore dickey, representing self; Angela Hansen, representing self; Shelly Hartman, representing
self; Cherie Schierl, representing self; Pamela Chittenden, representing self; Kent Rossman, representing self;
Sharon Arnst, representing self; Cheryl Benefield, representing self; Sharon Ehrlich, representing self; Cheryl
Stafford, representing self; Theresa Ryan, representing self; Willard Watts, representing self; Scott Moore,
representing self; Aspen Sobon, representing self; George Ehrlich, representing self; Lynn Chinnis, representing
self; Patricia Edelen, representing self; Garyh Rulapaugh, representing self; John Stolte, representing self; Jerrold
Borchardt, representing self; Aaron Essif, representing self; Margaret Tinsley, representing self; Philip Carman,
representing self; Karolyn Switzer, representing self; Jeanmarie Haney, representing self; Deborah Gaines,
representing self; Janie Smieszek, representing self; Jan Allen, representing self; ALICE BUCK, representing self;
Claudia Oreck-Teplitsky, representing self; Judy Zimmet, representing self; Dan Roskey, representing self; Michelle
Carter, representing self; Amy Gosla, representing self; Lois Ermak, representing self; Nadine Smith, representing
self; Amy Pedotto, representing self; Cynthia Wagner, representing self; Kathleen Schanus-Gohl, representing self;
Lori Taniguchi, representing self; Tiffany Wisdom, representing self; Jay Henson, representing self; Diane Klock,
representing self; Gina Gral, representing self; Joanne Basta, representing self; Lisa Yencarelli, representing self;
Donna Sullivan, representing self; Jane Johnson, representing self; Amy Licht, representing self; John Cummings,
representing self; Carol Campbell, representing self; Donna Rugg, representing self; Kathleen Woessner,
representing self; Alice Patricia Price, representing self; marcia stewart, representing self; RITA DEPUYDT,
representing self; Zachary Rome, representing self; Lisa Kopp, representing self; LINDA GANTVERG, representing
self; JoAnn McCay, representing self; Monica Bills, representing self; Sandra Adler, representing self; David Myers,
representing self; Veronica Branscomb, representing self; Thomas Scotney, representing self; William Bowlus-Root,
representing self; Gail Graves, representing self; Diane McQueen, representing self; Sally Evans, representing self;
Salie Travis, representing self; Loretta O'Connor, representing self; Deborah Green, representing self; Sherri
Johnson, representing self; Kay Ransdell, representing self; Dellanie Fragnoli, representing self; Holli Grimaudo,
representing self; Barbara Rodman, representing self; Valarie Bryant, representing self; Denise Hudson,
representing self; Nancy Musgrave, representing self; James Lewison, representing self; Lisa Koenig, representing
self; Ilene Riffle, representing self; Elissa Karn, representing self; Terri Farneti, representing self; Suzanne Lewis,
representing self; Joseph Johnson, representing self; Jane Jackson, representing self; Jill Anderson, representing
self; Cheryl Cox, representing self; Catherine Bliven, representing self; Julia Allison, representing self; Sharon Regen,
representing self; Christopher Cerrato, representing self; Sue Diaz, representing self; VICK! DELIA, representing self;
Chris Ahearn, representing self; Jalice Wiest, representing self; Leonora Midgley, representing self; Kathryn Dorn,
representing self; L. Anne Brothers, representing self; Terri Shafer, representing self; Susan Ordway, representing
self; Roger Blain, representing self; Deborah Anderson, representing self; Katherine Stitzer, representing self; Karen
Brown, representing self; Doug Schneider, RLS, representing self; Marcia Tingley, representing self; Dianna
DiMaggio, representing self
All Comments:

Katherine Warren, Self: Is this bill to help fund World Liberty Financial, the new crypto platform in which Donald
Trump holds a financial stake? This bill would gamble with our tax dollars and Arizonans’ lifetime savings.; Carolyn
Watson, Self: Crypto, as an unregulated currency, doesn't belong in the state pension funds.; kathleen mayer, Self:
cryptocurrency is notoriously unreliable and poses too much risk for public money.; Janie Hydrick, Self: Don't take
millionaires' gambles with hard-earned money. Cryptocurrency is volatile, risky, not backed by regulatory
mechanism, and has changed constantly and dramatically over the past ten years.; Mary Pradelt, Self: Do not
gamble with retirement funds for public employees; Judith Robbins, Self: Reject the use of the ASRS retirement
funds to invest in a highly speculative, volatile and unregulated crypto currency. The risk is too high and should not
be part of the portfolio. Vote absolutely NOT; Dawn Tripp, Self: No way!; Theodora Schiro, Self: Crypto is
speculative, has no intrinsic value, and is not backed by any regulatory mechanism. IT IS A BAD IDEA TO INVEST
STATE RETIREMENT BENEFITS IN A RISKY CURRENCY!; Beatriz Urrea, Self: The volatility and risk of cryptocurrency
makes this a terrible retirement investment. Crypto is speculative, has no intrinsic value, and is not backed by any
regulatory mechanism.; Alisa McMahon, Self: Such fiscal irresponsibility would be legislative malpractice.; Lisa
Olson, Self: Cryptocurrency is volatile and makes it a terrible retirement investment because it is speculative, has
no intrinsic value, and is not backed by any regulatory mechanism. This is a dangerous practice, playing with
retirement savings. | OPPOSE; Michael Fiflis, Self: Accepting crypto is dangerous; crypto is very volatile in price and
thus risky. Prudent and conservative investment of taxpayer funds should steer clear of crypto.; Cynthia Couture,
Self: Keep tax dollars out of this Ponzi scheme gamble.; Carol Maas, Self: Stop gambling with tax payer money by
working with crypto. You want to see AZ go bankrupt? Maybe that is your plan but sure not mine. Get real! !;
Adena Bank, Self: The volatility and risk of cryptocurrency makes it a terrible retirement investment. Crypto is
speculative, has no intrinsic value, and is not backed by any regulatory mechanism. Its value changes constantly
and dramatically; over the past 10 years,; Nancy C. Faria, Self: This is a really bad idea and cause loss of public
funds in a heartbeat. These funds are unregulated and unsecured.; Charlie Silver, Self: Bad idea.; Lawrence Peters,
Self: Crypto is speculative, has no intrinsic value, is not backed by a regulatory mechanism, is as volatile as the
stock market, has high energy consumption for mining activities, & is used in criminal activities. Gambles tax
dollars & Arizonans’ savings.; Linda Edwards, Self: No risky currency PLEASE; Paula Redinger, Self: No to virtual
currency. Period.; Katherine Lathrop, Self: Crypto is speculative and not backed by any regulatory mechanism. And
doesn’t the sponsor receive a lot of campaign contributions from crypto currencies? Hmm doesn’t pass the sniff
test.; William Tripp, Self: Absolutely against.; Penny Boone, Self: NO! Cryptocurrency is a scam.; Anne Leota Hart,
Self: |am on state retirement. | don't want my money gambled away in cryptocurrency. It's a scam.; Martha
O'Connor, Self: The state should not be using taxpayer dollars to speculate in virtual currency. That is not wise
fiscal management.; Mary-Jeanne Fincher, Self: Crypto is highly speculative and is not appropriate for public funds.
Don't gamble with our money!; Matthew Nelson, Self: Very dangerous to use vote against it; Roxanna Kearns, Self:
| definitely do not want any of my retirement earned benefits to be invested in crypto currency. Do not allow the
state treasurer and state retirement systems to invest up to 10% of their public monies in "virtual currency."
SB1025 is dangerous!!!; William S. James, Self: Don't gamble with my tax dollars; Eileen Goldman, Self: don't use
my tax dollars on a ponzi scheme; Rebecca Haynes, Self: Crypto is speculative, has no intrinsic value, and is not
backed by any regulatory mechanism. Risk your own retirement, not ours.; Mary Nelson, Self: Crypto is a scam;
Sarah Harris, Self: No. The volatility and risk of cryptocurrency makes it a terrible retirement investment. Crypto is
speculative, has no intrinsic value, and is not backed by any regulatory mechanism.; Charlotte Lis, Self: Virtual
currencies do not have enough oversight to risk retirement funds.; Michael Weingarten, Self: Terrible idea. | do
not want our public monies gambled away on something with no intrinsic value.; Joan Thomas, Self: Don't gamble
with Arizonan's lifetime savings and our tax dollars! Cryptocurrency is a terrible retirement investment.; Meredith
Brown, Self: This is a TERRIBLE idea. Cryptocurrency is unstable and should never be involved in retirement plans.
It's only for the very rich who have money to play with.; Jennifer Dawson, Self: NO CRYPTOCURRENCY!! It's good
only for the uber-rich, gamblers, and laundering dark money. Incredibly dangerous for state finances and
retirement programs.; Marin Lersch, Self: Cryptocurrency is unregulated and volatile. We should not gamble with
our tax dollars and people's retirements this way.,; Jillian Ryan, Self: This bill would gamble with our tax dollars and
Arizonans’ lifetime savings.; Barbara McGill, Self: Betting on cryptocurrency is an unsafe way for our state to
speculate.; Pat Jayson, Self: Cryptocurrency is too fraught with uncertainty to be considered for public money
investments! Think Sam Bankman-Fried, you dummy.; Aaron Torrance, Self: The volatility and risk of
cryptocurrency makes it a terrible retirement investment. Crypto is speculative, has no intrinsic value, and is not
backed by any regulatory mechanism. Its value changes constantly and dramatically.; Joseph Murray, Self: The
volatility and risk of cryptocurrency makes it a terrible retirement investment. Crypto is speculative, has no
intrinsic value, and is not backed by any regulatory mechanism.; Nelson Morgan, Self: The best thing you can say
about crypto is that it is a highly speculative and volatile investment. Beyond that it primarily enables criminal
enterprises. Very, very bad idea.; Stephen Flaaen, Self: Crypto currencies are one of, if not the most, volatile
financial investments and not suited for the responsible investment of public funds. This bill will harm the financial
standing of the state of Arizona.; Jacqueline deSa, Self: The volatility & risk of cryptocurrency makes it a terrible
retirement investment. Even the most aggressive investment advisors recommend that investors make it less than
10% of their portfolio. This bill would gamble w/ Arizonans' lifetime savings.; Carol Garnett, Self: Don't invest my
tax dollars or retiree dollars in speculation/gambling.; Sarah Bihms LD29, Self: Allowing state funds to be invested
in cryptocurrencies is a high-risk gamble with taxpayer money, with no long-term value or regulation to back it up.
This threatens our public retirement funds and financial stability.; Maria Hidalgo, Self: STOP! gambling on Crypto, a
speculative scam, with no intrinsic value which is not backed by any regulatory mechanism. Its value changes
constantly & dramatically. In the past 10 yrs, it has been 5 to 10 times as volatile as the US stock market.; Joseph
Alexander, Self: This bill would open the door for the State to invest in a very risky fad.; Kathleen Sauer, Self: If the
bill had allowed investments in beanie babies, maybe . . .; Angela Buer, Self: Cryptocurrency is volatile and makes it
a terrible retirement investment because it is speculative, has no intrinsic value, and is not backed by any
regulatory mechanism. This is a dangerous practice, playing with retirement savings. | OPPOSE; Maninko - Albina
Archer, Self: Cryptocurrency is volatile and makes it a terrible retirement investment because it is speculative, has
no intrinsic value, and is not backed by any regulatory mechanism. This is a dangerous practice, playing with
retirement savings. | OPPOSE; Margie Gomez, Self: Cryptocurrency is unstable and the platforms are not secure. It
is possible that the money is not really there. This is a dangerous and an insecure method to use for people's
retirement.; Marilyn Murov, Self: This bill would gamble with our tax dollars and Arizonans’ lifetime savings. One
might as well take 10% of their portfolio to Vegas . Fiscally irresponsible.; Ted Dubin, Self: please God...NO; Rivko
Knox, Self: Please!!_ No gambling with (extreme volatility) with public or retirement funds!!!; lore dickey, Self: This
bill would gamble with tax payer moneys. Cryptocurrency is highly volatile and is a bad investment tool.; Angela
Hansen, Self: Please do not put our state investments in jeopardy by allowing investment in bitcoin. My child lost
100% of their investment in bitcoin. Don't do that with public monies.; Shelly Hartman, Self: Crypto is speculative,
has no intrinsic value, and is not backed by any regulatory mechanism. Its value changes constantly and
dramatically; over the past 10 years, it has been 5 to 10 times as volatile as the US stock market, which adds a huge
risk; Pamela Chittenden, Self: Too dangerous. Perhaps Sen Rogers should invest all her assets in crypto as an
experiment and see how well it works long term, not public assets.; Kent Rossman, Self: too speculative and just
like the pyramid schemes of the past. Don't put my taxpayer dollars in that stuff; Sharon Arnst, Self:
Cryptocurrency; government should not be involved in this risky endeavor—-feel free to invest your own personal
money.; Sharon Ehrlich, Self: Foolish, risky and no way to treat public funds; Cheryl Stafford, Self: | am a retired
state employee. The volatility and risk of cryptocurrency makes it a terrible retirement investment. Crypto is
speculative, has no intrinsic value, and is not backed by any regulatory mechanism. This is a dangerous and risky
idea.; Theresa Ryan, Self: | don't want my tax dollars invested in crypto, it is too speculative.; Aspen Sobon, Self:
My spouse recieve ASRS retirement income. Gambling with virtual money that has no real value and extreme
volatility is a terrible idea and a danger to our retirement and treasury sytem!; Patricia Edelen, Self: Cryptocurrency
is uncertain and a great risk - don't gamble with my tax money.; Aaron Essif, Self: Too darn Volatile!!; Margaret
Tinsley, Self: What an incredibly horrible idea. This comes from someone who calls herself a conservative? There
is nothing conservative about this. It is rank speculation and will not benefit Arizona voters. Please vote no.; Philip
Carman, Self: Speculating in virtual currency is NOT wise financial management!; Karolyn Switzer, Self: Crypto
currency is far too volatile and risky to be even a small part of retirement plans.; Jeanmarie Haney, Self: High risk
and volatility makes crypto a terrible retirement investment; speculative, no intrinsic value, not backed by any
regulatory mechanism. 5-10 times as volatile as the US stock market, huge risk to a portfolio even with a small
amount invested; Janie Smieszek, Self: Would be gambling with the state’s money - not a good idea; Lois Ermak,
Self: Strong no! Those public monies are our monies. Crypto is based on nothing more than how popular the
current crypto of the day is. Google "what is cryptocurrency".; Cynthia Wagner, Self: The volatility and risk of
cryptocurrency makes it a terrible retirement investment. Crypto is speculative, has no intrinsic value, and is not
backed by any regulatory mechanism; Diane Klock, Self: This is a really bad idea from Wendy Rogers. This bill would
gamble with our tax dollars and Arizonans' life savings. | am strongly opposed.; Joanne Basta, Self: Don't gamble
with our tax dollars and Arizonans life savings; Jane Johnson, Self: | oppose this because virtual currency is
speculative, has no real value and no regulation protecting the investor. Its volatility makes it a terrible retirement
investment.; John Cummings, Self: Crypto is too risky for retirement investments.; Carol Campbell, Self: The
volatility and risk of cryptocurrency makes it a terrible retirement investment.; Alice Patricia Price, Self: Virtual
currency is too volatile; marcia stewart, Self: Playing with retirement funds of others is no joking matter. Financial
professionals still believe crypto is to risky, volatile. This is gambling.; RITA DEPUYDT, Self: This is way too risky.;
LINDA GANTVERG, Self: | absolutely oppose this measure; crypto is a huge gamble and should not be used to invest
taxpayer money; Deborah Green, Self: As a retired teacher | do not want the state retirement fund put at risk by
investing in risky cryotpcurrency.; Holli Grimaudo, Self: Crypto is risky and has no regulations. ASRS FY2023 funds
report shows an 8.2% earnings, well above the 7% estimate. It would be a huge gamble with mine and countless
others pension which we earned as AZ public servants. No, no, no! ZIP Code 85029; Nancy Musgrave, Self: Virtual
currency is volatile. Do not pass this bill!; James Lewison, Self: Cyrpto is too risky for public investments; Ilene
Riffle, Self: CRYPTOCURRENCY IS NOT STABLE NOR OFFICIAL WAY TO SAVE MONEY. THIS COULD BE A WASTE OF
STATE MONEY. IF YOU WANT A BACKLOG OF MONEY FOR EMERGENCIES, THEN SEND A BILL THAT THIS SHOULD
BE DONE IN USDI; Elissa Karn, Self: | receive a pension from ASRS, and | do not approve of a risky investment in
crypto currency with public monies.; Suzanne Lewis, Self: As an ASRS member, | am absolutely opposed to my state
retirement being used to gamble on cryptocurrency.; Jane Jackson, Self: Not even 1% of my ASRS should be
invested in cryptocurrency!; Jill Anderson, Self: virtual currency is way too risky; Cheryl Cox, Self: Gambling our tax
dollars on cryptocurrency? No thank you; Julia Allison, Self: Crypto has no intrinsic value, and it is not backed by
any regulatory mechanism. It has been 5 to 10 times as volatile as the US stock market, which adds a huge risk.
This bill would gamble with our tax dollars and Arizonans’ lifetime savings.; Sharon Regen, Self: would allow the
state treasurer and state retirement systems to invest up to 10% of their public monies in "virtual currency." The
volatility and risk of cryptocurrency makes it a terrible retirement investment. Crypto is speculative, has no intrinsi;
Sue Diaz, Self: Crypto is speculative and the state's retirement system should not be at risked with such an
investment.; Chris Ahearn, Self: Please oppose. Allowing state retirement systems and the state treasurer to invest
in virtual currencies is dangerous, risks our hard-earned money, and is just plain nuts. Thank you.; Jalice Wiest, Self:
Our state retirement systems are very well managed with the stability needed to ensure growth while providing a
secure retirement for state employees. Crypto currency is not stable enough to include in these portfolios.;
Kathryn Dorn, Self: Please don't force public employees to take on the financial risk of cryptocurrency by allowing
the state to unilaterally invest ANY portion of their (actual) retirement fund in "virtual currency," let alone as much
as ten percent!; Terri Shafer, Self: Cryptocurrency is a volatile and high-risk investment that has no place in
portfolios that are designed to ensure retirement income.; Susan Ordway, Self: Extremely risky.; Roger Blain, Self:
Just no.; Karen Brown, Self: Crypto is full of bad actors. It has been shown recently to be a bad investment with
unacceptable levels of risk. We can't afford to jeopardize state funds with this fraud-ridden scam.; Doug Schneider,
RLS, Self: This is a terrible idea. Sort of like gambling with tax payers money.; Marcia Tingley, Self: Cryptocurrency is
speculative, volatile and risky — a terrible choice for retirement investments. Its value changes constantly and
rapidly. Bill would gamble with our tax dollars and AZ citizens’ savings.; Dianna DiMaggio, Self: This has to be the
worst idea ever. | cannot imagine anyone being for this bill.

$B1062, legal tender; cryptocurrency

Testified as opposed:
Megan Kintner, AZ ASSOCIATION OF COUNTIES

$B1296, unemployment benefits; requirements; disqualifications;

determinations

Testified in support:

Tim Puglisi, representing self

Testified as opposed:
Mark Ashley, representing self; Blake Lister, Opportunity Arizona

Support:
Emily Raymond, EQUIFAX, INC.

Neutral:
Melanie Richards, AZ DEPT OF ECONOMIC SECURITY

Oppose:

Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Carol Maas, representing self; Molly
McGovern, UNITED FOOD & COMMERCIAL WORKERS UNION LOCAL 99; Doris Freeman, representing self; Kathy
Pyner, representing self; Joan Murphy, representing self; Martha O'Connor, representing self; Francisco "Hugo"
Polanco, Rural Arizona Action (RAZA); Rebecca Ellicott, representing self; Megan Holsapple, representing self;
Roger Blain, representing self; marcia stewart, representing self; Sharon Ehrlich, representing self; George Ehrlich,
representing self; Nancee K Wood, representing self

All Comments:

Emily Raymond, EQUIFAX, INC.: Equifax supports the House Commerce amendment for SB1296.; Carol Maas, Self:
Making requirements/qualifications even more difficult is not what is needed to support people. They pay taxes so
when they need the support, the state should be there to help!; Doris Freeman, Self: How pathetic is the sponsor
of this bill, to wish more hardship on people who are being treated badly by their employers already. There are
employers who will claim they fired for cause, just so a person cannot receive unemployment. DESPICABLE!;
Martha O'Connor, Self: To require they go back under the same conditions at the employer’s behest is slavery and
prohibited under the 13th amendment.; marcia stewart, Self: UNEMPLOYMENT IS SOMETHING EMPLOYER AND
EMPLOYEES PAY INTO. THESE ARE DESERVED BENEFITS WITH JOBS ARE LOST
S$B1373, digital assets strategic reserve fund

SB1467, liquor; consumption; watercraft

Testified in support:

Robert Mayer, representing self

All Comments:
Robert Mayer, Self: Speaking in favor of SB1467, whose genesis is the creation of a tour and event boat operation
on Tempe Town Lake in collaboration with the City of Tempe, which this bill would make possible.

SB1540, personal property exemptions; vehicles

Testified in support:

Kenneth Neeley, representing self

Support:
Francisco "Hugo" Polanco, Rural Arizona Action (RAZA); Pele Fischer, ARIZONA CONSUMER BANKRUPTCY COUNSEL

All Comments:
Francisco "Hugo" Polanco, Rural Arizona Action (RAZA): Update

SB1551, workers' compensation; disability; definitions

Testified in support:
Emily Rice, AZ SELF-INSURERS ASSOC; Michael Monti, AZ ASSN OF LAWYERS FOR INJURED WORKERS

Support:
Barry M. Aarons, AZ ASSN OF LAWYERS FOR INJURED WORKERS; Mackenzie Shane, GREATER PHOENIX CHAMBER
OF COMMERCE; Mark Kendall, COPPERPOINT INSURANCE COMPANY

Neutral:
Charles Carpenter, INDUSTRIAL COMMISSION OF AZ

All Comments:
Barry M. Aarons, AZ ASSN OF LAWYERS FOR INJURED WORKERS: Modified
ARIZONA STATE LEGISLATURE
Fifty-seventh Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _ Michael Way
DATE 03/11/25] 3/19/25 125 /25| — 125
CONVENED 3°2Z9PM| 3: a¢ pm m m m
RECESSED
RECONVENED
ae 3:45 pm] 4:52 pn
MEMBERS
Aguilar ui’ | ft
Blackman we a
Cavero wa a
Connolly if Pg
Diaz rl J
Hendrix i a
Villegas al gl
Wilmeth ft ya
Way, Vice-Chairman 4 ail
Weninger, Chairman i rd

V Present --- Absent exc Excused

ATTACHMENT 3
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 4-3-0-0 | 3™ Read 17-11-2-0

SB 1062: legal tender; cryptocurrency
Sponsor: Senator Finchem, LD 1
Committee on Commerce

Overview
Prescribes legal tender as a uniform statutory term and includes specie and cryptocurrency

as legal tender.

History
Various statutes currently provide a definition of legal tender and includes specie as a type

of legal tender. Legal tender, as used in various statutes, is defined as a medium of exchange,
including specie, that is authorized by the U.S Constitution or Congress for the payment of
debts, public charges, taxes and dues. Specie is defined as coins having precious metal

content.

Provisions
1. Prescribes legal tender as a uniform statutory term consisting of:
a) any medium of exchange that is authorized by the U.S. Constitution or Congress for
the payment of debts, public charges, taxes and dues;
b) specie, which are coins having precious metal content; and
c) cryptocurrency, which is any form of digital currency in which encryption techniques
are used to regulate the generation of units of currency and verify the transfer of
monies, including Bitcoin, XRP, Ethereum, Litecoin and bitcoin cash. (Sec. 1)

2. Makes conforming changes. (Sec. 2-8)

OO Prop 105 (45 votes) O Prop 108 (40 votes) O Emergency (40 votes) O Fiscal Note

SB 1062
Initials Page 1 Commerce

ATTACHMENT 4
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1062

DATE March 18, 2025 MOTION: ‘'

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman gil

iN

Cavero

Connolly

Diaz a

Hendrix

Villegas

ee

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

SANNA NS

FY! ola

7

a

APPROVED: COMMITTEE SECKETARY

JEFF WENINGER, Chairman

MICHAEL WAY, Vice-Chairman

ATTACHMENT. 4K
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 5-2-0-0 | 3™ Read 17-12-1-0

SB 1373: digital assets strategic reserve fund
Sponsor: Senator Finchem, LD 1
Committee on Commerce

Overview
Creates the Digital Assets Strategic Reserve Fund (Fund) and provides responsibilities of the

State Treasurer in administering the Fund.

History
Statute authorizes and provides guidelines for the State Treasurer to manage investments

of public monies including for the beneficiaries of the State Land Trust, Local Governments
and Political Subdivisions of the State and for the State of Arizona and its respective
agencies. The State Treasurer is responsible for the safekeeping of all securities for which
the State Treasurer is the lawful custodian and must invest and reinvest trust and treasury
monies in any statutory-outlined investments. Investments of treasury monies are reviewed
by the State Board of Investment (Title 35, Chapter 2, Art. 2, A.R.S.).

Provisions
1. Establishes the Fund consisting of monies appropriated by the Legislature and digital

assets seized by this state. (Sec. 1)

2. Instructs the State Treasurer to:
a) deposit seized digital assets in the Fund:
i. through the use of a secure custody solution by a qualified custodian; or
ii. in a form of an exchange traded product issued by a state registered investment
company.
b) administer the fund. (Sec. 1)
3. Asserts that monies in the Fund are continuously appropriated and exempt from lapsing.
(Sec. 1)
4. Prohibits the State Treasurer from investing more than 10% of the total amount of monies
deposited in the Fund in any fiscal year. (Sec. 1)

5. Authorizes the State Treasurer to:
a) loan digital assets from the Fund to generate additional returns if the loan does not
increase any financial risks to Arizona; and
b) adopt rules to administer the Fund. (Sec. 1)

6. Defines pertinent terms. (Sec. 1)

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

SB 1373

Initials Page 1 Commerce

ATTACHMENT 6
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE March 18,

2025

__ SB 1373_

MOTION: Di

PASS

AYE

NAY

PRESENT

ABSENT

Aguilar

Blackman

ie

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

Yar

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

PD IANAL KAA

yf

OC

©

My

COMMIT

TEE SECR@TARY

ATTACHMENT. |

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 4-3-0-0 | 3" Read 17-11-2-0

SB 1025: public monies; investment; virtual currency
Sponsor: Senator Rogers, LD 7
Committee on Commerce

Overview
Authorizes the State Treasurer or a state retirement system to invest in virtual currency

holdings.

History
Statute authorizes and provides guidelines for the State Treasurer to manage investments

of public monies including for the beneficiaries of the State Land Trust, Local Governments
and political subdivisions of Arizona and for the State of Arizona along with its respective
agencies. The State Treasurer is responsible for the safekeeping of all securities for which
they are the lawful custodian and must invest and reinvest trust and treasury monies in any
statutory-outlined investments. Investments of treasury monies are reviewed by the State
Board of Investment (Title 35, Chapter 2, Art. 2, A.R.S.).

The Board of the Arizona State Retirement System (ASRS) is authorized to allocate assets
and use investment strategies to meet the investment goals and policies that ASRS
prescribes. The ASRS Board may appoint multiple investment managers to invest and
reinvest ASRS assets. An investment manager may hold, purchase, sell, assign, loan, borrow,
transfer and dispose of any securities and investments in which any account monies are
invested, subject to ASRS-determined directives (A.R.S. § 38-718).

The federal government has ordered the U.S. Secretary of the Treasury to establish and
administer the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile.

Provisions
1. Allows the State Treasurer or a state retirement system to invest up to 10% of the public

monies under its control in virtual currency holdings. (Sec. 1)

2. Stipulates the State Treasurer or a state retirement system may store its virtual currency
holdings in a secure segregated account within the strategic bitcoin reserve, if the U.S.
Secretary of the Treasury establishes a strategic bitcoin reserve for the storage of

government bitcoin holdings. (Sec. 1)
3. Defines public fund, retirement system and virtual currency. (Sec. 1)

4. Cites the act as the "Arizona Strategic Bitcoin Reserve Act." (Sec. 2)

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

SB 1025

Initials Page 1 Commerce

ATTACHMENT 2%
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE

March 18, 2025

_ $B 1025

motion: SP

PASS

NAY

PRESENT

ABSENT

Aguilar

Zz

Blackman

\

4

Cavero

Connolly

Diaz

Hendrix

Villegas

yf
~~
Vie

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

\éé

Niue ————

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ANI TAL

|

O

Abby, delursy

COYIMITTEE SEGRETARY

ATTACHMENT.

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature
First Regular Session
Senate: RAGE DP 4-3-0-0 | 3" Read 17-12-1-0

SB 1296: unemployment benefits; requirements; disqualifications;
determinations
Sponsor: Senator Finchem, LD 1
Committee on Commerce

Overview
Modifies the criteria that an unemployed person must meet to be eligible for Unemployment

Insurance (UI) benefits. Requires the Department of Economic Security (DES) to cross-check
the validity of UI claims against certain data sets.

History
The Department of Economic Security (DES) administers the unemployment insurance

benefit program, which provides temporary financial relief to eligible unemployed individuals
who separate from their previous employers at no fault of their own. To be eligible for UI
benefits, an individual must be able to work, available for work and actively seeking work.
Furthermore, the individual must engage in a systematic and sustained effort to obtain work
during at least four days of the week and make at least one job contact per day on four
different days of the week.

DES examines any claim for benefits and determines whether the claim is valid. DES must
promptly notify the claimant of the determination. The claimant has 15 days from the date
the notification was mailed to appeal the determination. Individuals who fail to apply for
available and suitable work, actively engage in seeking work, accept suitable work when
offered or return to customary self-employment as directed by DES are disqualified from UI
benefits (Title 23, Chapter 4, A.R.S.).

Provisions

UI Benefit Eligibility
1. Modifies eligibility requirements by adding that an individual must actively seek and

apply for suitable work and:

a) conduct at least five specified work search actions each week to qualify as actively
seeking and applying for suitable work; and

b) provide a weekly report that details the individual's work search actions for every

week a benefit is sought. (Sec. 4)

2. Removes the requirement of an individual to engage in a systematic and sustained effort
to obtain work during at least four days of the week and make at least one job contact per
day on four different days of the week to be eligible for UI benefits. (Sec. 4)

UI Claim Validity
3. Prohibits DES from paying benefits until the initial claim, or an ongoing claim on a
weekly basis, is cross-checked for validity against specified data sets. (Sec. 5)

0 Prop 105 (45 votes) C Prop 108 (40 votes) OO Emergency (40 votes) CO Fiscal Note

SB 1296

Initials Page 1 Commerce

ATTACHMENT /O
4, Stipulates that a claim will not be paid, and the claimant is disqualified from receiving
benefits and referred for prosecution if a cross-check results in information indicating
that a claim is ineligible or fraudulent. (Sec. 5)

5. Directs DES, prior to paying benefits, to examine any initial claim and confirm the claim's
validity if the initial claim:
a) was submitted electronically through an internet address located outside of Arizona
or the U.S.;
b) references an address for which another current claim was submitted; or
c) is associated with a direct deposit for a bank account already used for another
current claim. (Sec. 5)

6. Allows DES to refer the matter for prosecution if a fraudulent claim was filed. (Sec. 5)

Disqualification from UI Benefits
7. Restates that an individual is disqualified for UI benefits if the individual has failed
without cause to:
a) actively seek and apply for suitable work;
b) accept an offer of suitable work; or
c) accept reemployment at the same employer for suitable work, if offered. (Sec. 6)

8. Directs an employer to report to DES when an individual who was a previous employee:
a) refuses to return to work or accept an offer of suitable work; or
b) fails to appear for a scheduled interview or respond to an offer of employment. (Sec.
6)
9. Allows employers to submit the required report to DES either digitally or through email.
(Sec. 6)

10. Requires DES to conduct an independent review of each submitted report to determine
whether an individual should be disqualified from receiving benefits. (Sec. 6)

11. Makes conforming and technical changes. (Sec. 1-6)

SB 1296
Initials Page 2 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1296

OnNaA THR WNH FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1296
(Reference to Senate engrossed bill)

Amendment instruction key:
[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
{Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
[GREEN-STFRIKECUT-FI- BRACKETS] indicates new text removed from statute
or previously enacted session law.
(Green—str7keout—hr-brackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<@reen—strikeout—inr-carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

Section 1. Section 23-634.01, Arizona Revised Statutes, is amended
to read:

23-634.01. Denial of benefits for failure to accept suitable

work or actively seek work; definition

A. Notwithstanding section 23-776, an individual who is found by
the department, with respect to any week in an eligibility period which
THAT begins from and after April 4, 1981, to have failed to apply for or
accept available suitable work to which tre THE INDIVIDUAL was referred by
the department or to have failed to actively engage in seeking work is
disqualified from receiving extended benefits. The disqualification shall
begin with the week in which the failure occurred and continue until the
individual has been employed in each of four subsequent weeks, whether or
not consecutive, and has earned remuneration equal to mot—tess—ttran AT
LEAST four times trrs THE INDIVIDUAL'S weekly benefit amount.

B. An individual shall not be denied extended benefits for failure
to accept an offer of or apply for available suitable work as defined in
subsection G@ of this section, if:

1. The position was not offered to the individual in writing or was
not listed with the department.

2. The failure would not result in a denial of benefits under
section 23-776 to the extent that the criteria of suitability in section
23-776 are not inconsistent with this section.

C. If an individual furnishes evidence satisfactory to the
department that prospects for obtaining work in tres THE INDIVIDUAL'S
customary occupation within a reasonably short period are good, the
determination of whether any work is suitable with respect to the

\dopted # of Verbal:

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ATTAC

HMENT ||
House Amendments to S.B. 1296

OmNMOOHRWDNY HE

individual shall be made in accordance with ttre—provis7ors—of section
23-776 without reference to the definition contained in this section.

D. Work shall not be considered suitable work under this section if
it would not be considered suitable under section 23-776, subsection €~ E.

E. For the purposes of this section, an individual shall be treated
as actively engaged in seeking work during any week if the department
finds from tangible evidence provided by the individual that tre THE
INDIVIDUAL has engaged in a systematic and sustained effort to obtain work
during such week.

F. The department shall refer an individual entitled to extended
benefits under this chapter to any work witch THAT is suitable work.

G. For the purposes of this section, "suitable work" with respect
to any individual means work within the individual's capabilities in
which:

1. The gross average weekly wages payable for the work exceed the
sum of the individual's weekly benefit amount plus the amount of any
supplemental unemployment benefits payable to the individual for such
week.

2. The wages for the work are at least equal to the higher of:

(a) The minimum wages provided by section 6(a)(1) of the fair labor
standards act of 1938, without regard to any exemption.

(b) The state or local minimum wage.

Sec. 2. Section 23-762, Arizona Revised Statutes, is amended to
read:

23-762. Requirements of shared work plan; approval

A. An employer wistrmrg THAT WISHES to participate in the shared
work unemployment compensation program shall submit a signed, written
shared work plan to the department for approval. The department shall
approve a shared work plan only if the plan:

1. Specifies the employees in the affected group.

2. Applies to only one affected group.

3. If feasible, includes a description of the employer's plan for
notifying an employee whose work-week WORKWEEK is to be reduced.

4. Includes a certified statement by the employer that, for the
six-month period immediately preceding the date the plan is submitted,
compensation was payable from the shared work employer, or _ its
predecessors whether or not they were shared work employers, to each
employee in the affected group in an amount equal to or greater than the
wages for insured work in one calendar quarter as provided in section
23-771, subsection A, paragraph 6- 7. An employee who joins an affected
group after the approval of the shared work plan is automatically covered
under the previously approved plan, effective the week that the department
receives written notice from the shared work employer that the employee
has joined and certification from the employer that the employee meets the
provisions of section 23-771, subsection A, paragraph 6 7.

5. Includes a certified statement by the employer that for the
duration of the plan the reduction in the total normal weekly hours of

House Amendments to S.B. 1296

OnNa nf WDM FE

work of the employees in the affected group is instead of layoffs whictt
THAT otherwise would result in at least as large a reduction in the total
normal weekly hours of work. The employer shall include an estimate of
the number of layoffs that would have occurred without an approved shared
work plan.

6. Specifies the manner in which the employer will treat fringe
benefits of the employees in the affected group if the employees' hours
are reduced to less than their normal weekly hours of work. The employer
must certify, if the employer provides health benefits and retirement
benefits under a defined benefit plan to any employee whose workweek is
reduced under the plan, that these benefits will continue to be provided
to an employee participating in the shared work plan under the same terms
and conditions as though the workweek of the employee had not been reduced
or to the same extent as other employees not participating in the shared
work program.

7. Specifies an expiration date that is to NOT more than one year
from AFTER the date the employer submits the plan for approval, except
that on written request by the employer, the department may approve an
extension of the plan for a period of not more than one year from AFTER
the date of the request.

8. Is approved in writing by the collective bargaining agent for
each collective bargaining agreement that covers any employee in the
affected group.

B. The plan prescribed in subsection A of this section and the
implementation of the plan must be consistent with the employer's
obligations under all other federal and state laws.

C. The department shall approve or disapprove the plan within
fifteen days after receipt of the plan by the department. The department
shall notify the employer of the reasons for denial of a shared work plan
within ten days of AFTER the determination.

Sec. 3. Section 23-763, Arizona Revised Statutes, is amended to
read:

23-763. Shared work benefits; eligibility; requirements

A. An individual is eligible to receive shared work benefits with
respect to any week only if, in addition to meeting the requirements of
article 6 of this chapter as modified by subsection E of this section, the
department finds that during the week:

1. The individual is employed as a member of an affected group in
an approved plan that was approved before the week and is in effect for
the week.

2. The individual's normal weekly hours of work were reduced at
least ten per—cert PERCENT but not more than forty per-cert PERCENT.

3. The individual met the requirements of section 23-771,
subsection A, paragraphs 3, amd 4 AND 5.

B. Eligible individuals may participate in training to enhance job
skills, including emptoyer—sporsored EMPLOYER-SPONSORED training or worker

House Amendments to S.B. 1296

ONO LP WM FE

training funded under the workforce investment act of 1998, if the
training is approved by the department.

C. The department shall not pay an individual shared work benefits
for more than twenty-six weeks in a benefit year, except that this
limitation does not apply to a week if for the period consisting of the
week and the immediately preceding twelve weeks the rate, not seasonally
adjusted, of insured unemployment in this state is equal to or greater
than four per—cemt PERCENT.

D. The total amount of regular benefits and shared work benefits
that the department pays to an individual for weeks in the individual's
benefit year shall not exceed the total for the benefit year as provided
in section 23-780.

E. Notwithstanding section 23-621 or any other provision of this
chapter, for purposes of this article an individual is unemployed in any
week for which compensation is payable to the individual, as an employee
in an affected group, for less than the individual's normal weekly hours
of work in accordance with an approved plan in effect for the week.

Sec. 4. Section 23-771, Arizona Revised Statutes, is amended to
read:

23-771. Eligibility for benefits

A. An unemployed individual is eligible to receive benefits with
respect to any week only if the department finds that the individual:

1. Has registered for work at and thereafter has continued to
report at an employment office in accordance with the regulations
prescribed by the department.

2. Has made a claim for benefits in accordance with section 23-772.

3. Is able to work.

4. IS AVAILABLE FOR WORK.

4> 5. Except for an individual who is applying for shared work
benefits pursuant to article 5.1 of this chapter, ts—avattabte—for—work
and—-both—of—tte—fottownry—appty>

inte teitiy tient — - feahenih=gtthieei
tat hor} = —- ; 4 —

ér3—F ttre — +t '
four—td+fferent—tays—of—tire week; ACTIVELY SEEKS AND APPLIES FOR SUITABLE
WORK AND:

(a) CONDUCTS AT LEAST FIVE WORK SEARCH ACTIONS EACH WEEK IN ORDER
TO QUALIFY AS ACTIVELY SEEKING AND APPLYING FOR SUITABLE WORK. THE
ACTIONS SHALL INCLUDE ANY OF THE FOLLOWING:

(i) SUBMITTING RESUMES TO EMPLOYERS.

(ii) COMPLETING JOB APPLICATIONS AND SUBMITTING THE APPLICATIONS TO
EMPLOYERS.

(i171) ATTENDING JOB FAIRS THAT ARE RECOGNIZED BY THE DEPARTMENT AND
THE INDIVIDUAL'S ATTENDANCE IS VERIFIABLE BY THE DEPARTMENT.

(iv) ATTENDING INTERVIEWS WITH POTENTIAL EMPLOYERS.

House Amendments to S.B. 1296

OmnNanfP WDM Fe

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NODOPWNHMFRFOW AON ADATAHP WHF TOW ONDA AHPWNMRFPOW AN DOR WNHRF CO YO

(v) ATTENDING A DEPARTMENT-APPROVED TRAINING PROGRAM THAT INCLUDES
A RESUME WRITING SESSION, WHICH SHALL COUNT AS ONE WORK SEARCH ACTION FOR
THE WEEK THE INDIVIDUAL ATTENDED THE TRAINING PROGRAM.

(b) IF THE INDIVIDUAL IS APPLYING FOR A WEEKLY BENEFIT, PROVIDES A
WEEKLY REPORT TO THE DEPARTMENT THAT DETAILS THE INDIVIDUAL'S WORK SEARCH
ACTIONS FOR EVERY WEEK A BENEFIT IS SOUGHT.

5S> 6. Has been unemployed for a waiting period of one week. A
week is not counted as a week of unemployment for the purpose of this
paragraph:

(a) Unless it occurs within the benefit year that includes the week
with respect to which the individual claims payment of benefits.

(b) Unless the individual was eligible for benefits with respect to
the week as provided in this section and sections 23-775, 23-776 and
VARIES 0 A

(c) If benefits have been paid in respect to the week.

G6- 7. Has met one of the following requirements:

(a) Has been paid wages for insured work during the individual's
base period equal to at least one and one-half times the wages paid to the
individual in the calendar quarter of the individual's base period in
which the wages were highest, and the individual has been paid wages for
insured work in one calendar quarter of the individual's base period equal
to an amount that is equal to at least three hundred ninety times the
minimum wage prescribed by section 23-363 that is in effect when the
individual files a claim for benefits.

(b) For a benefit year beginning on or after September 2, 1984, has
been paid wages for insured work during at least two quarters of the
individual's base period and the amount of the wages paid in one quarter
would be sufficient to qualify the individual for the maximum weekly
benefit amount payable under this chapter and the total of the
individual's base-period wages is equal to or greater than the taxable
limit as specified in section 23-622, subsection B, paragraphs 1 and 2.

7- 8. Following the beginning date of a benefit year established
under this chapter or the unemployment compensation law of any other state
and before the effective date of a subsequent benefit year under this
chapter, has performed services whether or not in employment as defined in
section 23-615 for which wages were payable in an amount equal to or in
excess of eight times the weekly benefit amount for which the individual
is otherwise qualified under section 23-779. In making a determination
under this paragraph, the department shall use information available in
its records or require the individual to furnish necessary information
within thirty days after the date notice is given that the information is
required.

B. If an unemployed individual cannot establish a benefit year as
defined in section 23-609 due to receipt during the base period of
compensation for a temporary total disability pursuant to chapter 6 of
this title, or any similar federal law, the individual's base period shall
be the first four of the last five completed calendar quarters immediately
House Amendments to S.B. 1296

ANANTH WNH FE

preceding the first day of the calendar week in which the disability
began. Wages previously used to establish a benefit year may not be
reused. This subsection does not apply unless all of the following occur:

1. The individual has filed a claim for benefits not later than the
fourth calendar week of unemployment after the end of the period of
disability.

2. The claim is filed within two years after the period of
disability begins.

3. The individual meets the requirements of subsection A of this
section.

4. The individual has attempted to return to the employment where
the temporary total disability occurred.

C. If an unemployed individual is a member of the national guard or
other reserve component of the United States armed forces, the individual
is not considered to be either employed or unavailable for work by reason
of the individual's participation in drill, training or other national
guard or reserve activity that occurs on not more than one weekend per
month or in lieu of a weekend drill or the equivalent.

D. The department shall not disqualify an individual from receiving
benefits under this chapter on the basis of the individual's separation
from employment if the individual is a victim of domestic violence and
leaves employment due to a documented case involving domestic violence
pursuant to section 13-3601 or 13-3601.02. Benefits paid to an individual
pursuant to this subsection shall not be charged against an employer's
account pursuant to section 23-727, subsection G.

E. The department shall not disqualify an individual from receiving
benefits under this chapter on the basis of the individual's separation
from employment if the individual was terminated from employment for not
receiving a COVID-19 vaccine or COVID-19 booster shot required by the
employer. Benefits paid to an individual pursuant to this subsection
shall not be charged against an employer's account pursuant to section
23-727 if the employer's requirement that employees receive the COVID-19
vaccine or COVID-19 booster shot is required by law.

F. For the purposes of subsection A, paragraph 6- 7 of this
section, wages shall be counted as wages for insured work for benefit
purposes with respect to any benefit year only if that benefit year begins
subsequent to the date on which the employing unit by which those wages
were paid has become an employer subject to this chapter.

Sec. 5. Section 23-773, Arizona Revised Statutes, is amended to
read:

23-773. Examination and determination of claims

A. A representative designated by the department as a deputy shall
promptly examine any claim for benefits and, on the basis of the facts
found by the deputy, shall determine whether or—rot the claim is valid.
If the claim is valid, the deputy shall also determine the week with
respect to which the benefit year shall commence, the weekly benefit
amount payable and the maximum duration of the benefit.

House Amendments to S.B. 1296

ANDO WDM FE

B. The deputy shall promptly notify the claimant and any other
interested parties of the determination and the reasons for the
determination. Except as provided in subsection D of this section, unless
the claimant or an interested party, within seven calendar days after the
delivery of notification, or within fifteen calendar days after
notification was mailed to the claimant's or interested party's last known
address, files an appeal from the determination, it shall become final,
and benefits shall be paid or denied in accordance with the determination.
The department shall adopt rules to allow an appeal to be filed in
writing, electronically or by telephone. If an appeal tribunal affirms a
determination of the deputy allowing benefits, or the appeals board
affirms a determination or decision allowing benefits, the benefits shall
be paid regardless of any appeal that may thereafter be taken, but if that
decision is finally reversed, no employer's account shall be charged with
benefits so paid.

C. On receipt of a request from an interested party for information
about a deputy's determination made pursuant to this section or section
23-673, the department shall make available by memorandum or other written
document within five days after receipt of the request the following
information:

1. The facts considered and the facts relied on in making the
determination.

2. The specific statutes, regulations or other authority relied on
in making the determination.

3. The reasoning applied in making the determination.

D. Before the time for appeal as prescribed in subsection B of this
section has expired, an interested party may request a_ reconsidered
determination. The department shall examine the request and, within seven
calendar days, deny the request or issue a reconsidered determination.
The interested party may prove that a response was timely filed by using
evidence of fax records that documents the date and time when a faxed
response was transmitted and received by the department. A request for
reconsideration that is denied shall be treated as an appeal, and the same
procedure shall be followed as provided for in case of appeal from the
original determination. If a reconsidered determination is issued, the
time for appeal shall run from the date of issuance of the reconsidered
determination. The employer and the claimant shall each be permitted
ALLOWED NOT more than one request for reconsideration on each case.

E. Before the actual filing of an appeal under subsection B of this
section, but not later than the time permrttec ALLOWED to appeal, the
department on its own motion may issue a reconsidered determination.
After the time for appeal has expired, but within one year after the
issuance of the original determination, the department with authorization
of the unemployment insurance program administrator may issue a
reconsidered determination, on the basis of newly discovered evidence that
by due diligence could not have been previously discovered, if no
administrative or judicial review has occurred or is pending on the
House Amendments to S.B. 1296

OnNA NFP WNH FE

original determination. If a redetermination is based on fraud, the one
year ONE-YEAR limitation on the issuance of redeterminations does not
apply.

F. Prompt notice in writing of any reconsidered determination under
subsection E of this section and the reasons for reconsideration shall be
given to all interested parties. An interested party may appeal within
the time prescribed under subsection B of this section, and the same
procedure shall be followed as provided for in case of an appeal from the
original determination.

G. IN DETERMINING THE VALIDITY OF CLAIMS PURSUANT TO SUBSECTION A
OF THIS SECTION, THE DEPARTMENT MAY NOT PAY BENEFITS FOR AN INITIAL OR
ONGOING CLAIM UNTIL THE INITIAL CLAIM IS CROSS-CHECKED, OR AN ONGOING
CLAIM IS CROSS-CHECKED ON A WEEKLY BASIS, AGAINST THE FOLLOWING DATA SETS:

1. THE NATIONAL ASSOCIATION OF STATE WORKFORCE AGENCIES' INTEGRITY
DATA HUB.

2. THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES
NATIONAL DIRECTORY OF NEW HIRES.

3. THE DEPARTMENT OF ECONOMIC SECURITY'S NEW HIRE REPORTING SYSTEM.

4. THE STATE DEPARTMENT OF CORRECTIONS INMATE DATABASES [OR_A
THIRD-PARTY, COMMERCIALLY AVAILABLE INCARCERATION DATA NETWORK].

5. THE SOCIAL SECURITY ADMINISTRATION'S PRISONER UPDATE PROCESSING
SYSTEM.

6. THE CENTERS FOR DISEASE CONTROL AND PREVENTION'S NATIONAL VITAL
STATISTICS SYSTEM'S DEATH RECORDS DATABASE.

7. THE DEPARTMENT OF HEALTH SERVICES BUREAU OF VITAL RECORDS DEATH
RECORDS DATABASE [OR A THIRD-PARTY, COMMERCIALLY AVAILABLE DEATH RECORDS
DATABASE.

8. CURRENT EMPLOYMENT AND INCOME INFORMATION DELIVERABLE
INSTANTANEOUSLY VIA VERIFICATION SERVICES FROM EXTERNAL DATA SOURCES
PURSUANT TO SECTION 23-799.01.

H. TO MAKE THE MOST EFFECTIVE DETERMINATION OF THE POTENTIAL
VALIDITY OF CLAIMS, THE DEPARTMENT SHALL PRIORITIZE CROSS-CHECKING THE
MOST CURRENT DATA SETS, INCLUDING THOSE FROM A COMMERCIALLY AVAILABLE
THIRD-PARTY DATABASE, BEFORE CROSS-CHECKING OLDER DATA SETS].

(tt-] [1.] IF A CROSS-CHECK PURSUANT TO SUBSECTION G OF THIS SECTION
RESULTS IN INFORMATION INDICATING THAT A CLAIM IS INELIGIBLE OR
FRAUDULENT, THAT CLAIM MAY NOT BE PAID, AND THE CLAIMANT SHALL BE
DISQUALIFIED FROM RECEIVING BENEFITS PURSUANT TO SECTION 23-778 AND
REFERRED FOR PROSECUTION.

(t-] [d.] THE DEPARTMENT SHALL EXAMINE ANY INITIAL CLAIM FOR
BENEFITS AND CONFIRM ITS VALIDITY BEFORE BENEFITS ARE PAID IF THE INITIAL
CLAIM:

1. WAS SUBMITTED ELECTRONICALLY THROUGH AN INTERNET PROTOCOL
ADDRESS LOCATED OUTSIDE OF THIS STATE OR THE UNITED STATES.

2. REFERENCES A MAILING ADDRESS OR RESIDENTIAL ADDRESS FOR WHICH
ANOTHER CURRENT CLAIM WAS SUBMITTED.

House Amendments to S.B. 1296

ONO HR WHY FE

3. IS ASSOCIATED WITH A DIRECT DEPOSIT FOR A BANK ACCOUNT ALREADY
USED FOR ANOTHER CURRENT CLAIM.

{d-] (K.] IF A FRAUDULENT CLAIM WAS FILED, THE DEPARTMENT MAY REFER
THE MATTER FOR PROSECUTION.

Sec. 6. Section 23-776, Arizona Revised Statutes, is amended to
read:

23-776. Disqualification from benefits for failure to accept

suitable work or actively seek work; exceptions

A. An individual shall be disqualified for benefits if the

department finds the individual has failed without cause evttrer—to—appty

WoTrr WITeTT of ereu UT LU PTevuaril LO tie THQTYtTuUuati os Tustumary
sett-emptoyment—when—su—thi rected by —_tthe—tepartment TO ACTIVELY SEEK AND
APPLY FOR SUITABLE WORK, TO ACCEPT AN OFFER OF SUITABLE WORK OR TO ACCEPT
REEMPLOYMENT AT THE SAME EMPLOYER FOR SUITABLE WORK, IF OFFERED. The
disqualification shall begin with the week in which the failure occurred
and shall continue for the duration of the individual's unemployment and
until the individual has earned wages in an amount equivalent to eight
times the individual's weekly benefit amount otherwise payable.

B. AN EMPLOYER SHALL REPORT TO THE DEPARTMENT WHEN AN INDIVIDUAL
WHO WAS PREVIOUSLY EMPLOYED WITH THAT EMPLOYER DOES ANY OF THE FOLLOWING:

1. REFUSES TO RETURN TO WORK.

REFUSES TO ACCEPT AN OFFER OF SUITABLE WORK.
FAILS, WITHOUT CAUSE, TO APPEAR FOR A SCHEDULED INTERVIEW.
FAILS TO RESPOND TO AN OFFER OF EMPLOYMENT.

C. THE DEPARTMENT SHALL ALLOW EMPLOYERS TO SUBMIT THE REPORTS
PURSUANT TO SUBSECTION B OF THIS SECTION DIGITALLY OR THROUGH EMAIL AND
SHALL CONDUCT AN INDEPENDENT REVIEW OF EACH REPORT TO DETERMINE WHETHER AN
INDIVIDUAL SHOULD BE DISQUALIFIED FROM RECEIVING BENEFITS.

B- D. In determining whether wor—rot work is suitable for an
individual:

1. During the first four weeks of a benefit period, the department
shall consider the degree of risk involved to the individual's health,
safety and morals, the individual's physical fitness and prior training,
the individual's experience and prior earnings, the individual's length of
unemployment and prospects for securing local work in the individual's
customary occupation and the distance of the available work from the
individual's residence.

2. After the first four weeks of a benefit period, the department
shall consider any employment offer that pays one hundred twenty percent
of the individual's weekly benefit amount to be suitable work.

€> E. Notwithstanding any other provisions of this chapter, work
shall not be deemed suitable and benefits shall not be denied under this
chapter to an otherwise eligible individual for refusing to accept new
work under any of the following conditions:

WP
House Amendments to S.B. 1296

1. The position offered is vacant due directly to a strike, lockout
or other labor dispute.

2. The wages, hours or other conditions of the work offered are
substantially less favorable to the individual than those prevailing for
similar work in the locality.

3. AS a condition of being employed, the individual would be
required to join a company union or to resign from or refrain from joining
a bona fide labor organization.

9 B> F. An individual is considered to have refused an offer of
10 suitable work under subsection A of this section if an offer of work is
11 withdrawn by an employer after an individual either:

12 1. Tests positive for drugs after a drug test given pursuant to
13. chapter 2, article 14 of this title by or on behalf of a prospective
14 employer as a condition of an offer of employment.

15 2. Refuses, without good cause, to submit to a drug test that is
16 required by a prospective employer as a condition of an offer of
17 employment.

ONO WDM FP

18 Enroll and engross to conform
19 Amend title to conform

JEFF WENINGER

1296WENINGER. docx
03/14/2025

03:23 PM

H: PB/1s

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1296

DATE March 18, 2025 MOTION: | yPA

PASS AYE NAY PRESENT | ABSENT
Aguilar A
Blackman we
Cavero go
Connolly *
Diaz ye -
Hendrix Yl
Villegas il
Wilmeth a
Way, Vice-Chairman ra
Weninger, Chairman ral
614! O10
APPROVED: Marta

‘Wa

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. |Z
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 7-0-0-0 | 3™ Read 29-0-1-0

SB 1540: personal property exemptions; vehicles
S/E: homestead; personal property; exemptions
Sponsor: Senator Carroll, LD 28
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1540

Overview
Makes revisions to statutes relating to homestead and personal property exemptions.

History
A homestead exemption is a legal provision that protects a homeowner's primary residence

from being seized by creditor to satisfy debts. A homestead is the primary residence of an
owner that under the state's homestead exemption is protected from seizure or sale of debt
up to $400,000 of a person's equity in their dwelling. Under current law, the homestead can
be a house, condominium, cooperative apartment, or mobile home in which the person resides
plus the land upon which the mobile home is located (A.R.S § 33-1101).

Statute outlines personal property exemptions from the bankruptcy process and other actions
to collect from a debtor. The exemptions include specified amounts of money or proceeds.
Laws 2022, Chapter 346 exempts the refundable portion of federal or state earned income
tax credits (EITC) and federal or state child tax credits and sets the exemption amount at
the lesser of either: 1) the total combined amount of any federal and state tax refunds; or 2)
the total combined amount of any federal or state EITCs and any federal or state child tax
credits claimed on the return (Title 33, Chapter 8, Art. 2, A.R.S.).

Provisions

1. Includes park model trailers, motor homes, travel trailers, fifth wheel trailers, houseboats
and other forms of shelter in which a person resides, plus the land, to the property types
that qualify for the homestead exemption. (Sec. 1)

2. Specifies that the homestead exemption does not attach to a person's interest in
identifiable cash proceeds from refinancing the homestead property. (Sec. 1)

3. Requires, for bankruptcy cases, the debtor's homestead exemption amount to initially be
determined as of the date the bankruptcy petition is filed. (Sec. 1)

4, Stipulates if a debtor's value in the homestead is less than or equal to the amount of the
homestead exemption at the time of bankruptcy filing, the homestead property and any
value increase during case pendency is 100% exempt from the bankruptcy proceeding
regardless of whether the debtor's interest increases above the homestead exemption
amount. (Sec. 1)

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

SB 1540
Initials Page 1 Commerce

ATTACHMENT | 3
5. Maintains statutory provisions relating to determining the amount of equity in a
homestead property. (Sec. 1)

6. Exempts all federal or state personal income tax credits from any federal or state earned
income tax credits or child tax credits from execution, attachment or sale on any process
issued from any court and includes a calculation on determining the amount of the
exemption. (Sec. 2)

Repeals statute relating to homestead exemptions as enacted by the Legislature. (Sec. 3)

8. Repeals statute relating to monies or proceeds exempt execution, attachment or sale on
any process issued from any court as enacted by the Legislature. (Sec. 3)

9. Applies the homestead value bankruptcy requirements to any petition for bankruptcy
proceedings filed after the effective date. (Sec. 4)

10. Makes technical and conforming changes. (Sec. 1-4)

SB 1540
Initials Page 2 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1540

mo ON DD oO FP WO MP Ff

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PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1540

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 33-1101, Arizona Revised Statutes, as amended by
proposition 209, election of November 8, 2022, is amended to read:

33-1101. Homestead exemptions; persons entitled to hold

homesteads; annual adjustment
A. Any person tte-age-of WHO IS AT LEAST eighteen or—over YEARS OF

AGE, married or single, AND who resides within ttre THIS state may hold as a
homestead exempt from attachment, execution and forced sale, not exceeding
$400,000 in value, any one of the following:

1. The person's interest in real property in one compact body wupor
ON which exists a dwelling house in which the person resides.

2. The person's interest in one condominium or cooperative in which
the person resides.

3. A mobile home, PARK MODEL TRAILER, MOTOR HOME, TRAVEL TRAILER,
FIFTH WHEEL TRAILER, HOUSEBOAT OR OTHER FORM OF SHELTER in which the person
resides PLUS THE LAND ON WHICH THAT SHELTER IS LOCATED.

4a ono tte tome tr tr ch —the—_person—resides—ptrs—tte—_tarrd—uporr
which—that—nobtte—tome_ts—_tocated—

B. Only one homestead exemption may be held by a married couple or a
single person under this section. The value as specified in this section
refers to the equity of a single person or married couple. If a married
couple lived together in a _ dwelling house, a condominium- or
cooperatives;— OR a mobitte—home—or—a—mobtte—tome—ptts—tand—or—witretr_ttre
mobtte—trome FORM OF SHELTER PRESCRIBED BY SUBSECTION A, PARAGRAPH 3 OF THIS
SECTION PLUS THE LAND ON WHICH IT is located and are then divorced, the

AVTACHMENT |
oO OA nN DTD oO FF WO DY KF

Oo WwW WOW W MH MH MH MW YW YW WH YP MPH NB KF KF KF KF FP FP FP FF KF
Oo we F OD HO DON DTD OO FP WO DY KF TD HD DN TD oO fF WOW DY KF CO

House Amendments to S.B. 1540

total exemption THAT IS allowed for that residence to either or both
persons shall not exceed $400,000 in value.

C. The homestead exemption, not exceeding the value provided for in
subsection A OF THIS SECTION, as adjusted by subsection D of this section,
automatically attaches to the person's interest in identifiable cash
proceeds from the voluntary or involuntary sale of the property. The
homestead exemption in identifiable cash proceeds continues for eighteen
months after the date of the sale of the property or until the person
establishes a new homestead with the proceeds, whichever period is
shorter. THE HOMESTEAD EXEMPTION DOES NOT ATTACH TO THE PERSON'S INTEREST
IN IDENTIFIABLE CASH PROCEEDS FROM REFINANCING THE HOMESTEAD PROPERTY.
Only one homestead exemption at a time may be held by a person under this
section.

D. The homestead exemption provided by this section shall be
adjusted annually beginning on January 1, 2024 and thereafter on January i
of each successive year by the increase in the cost of living. The increase
in the cost of living shall be measured by the percentage increase as of
August of the immediately preceding year over the level as of August of the
previous year of the consumer price index (all urban consumers, United
States city average for all items) or its successor index as published by
the United States department of labor, bureau of labor statistics, or its
successor agency, with the amount of the exemption rounded up to the
nearest $100.

—. FOR THE PURPOSES OF DETERMINING THE AMOUNT OF EQUITY IN A
HOMESTEAD PROPERTY THAT IS SOLD OR FOR DETERMINING WHETHER THE PROPERTY
OWNER IS RECEIVING CASH BACK FROM REFINANCING THE HOMESTEAD PROPERTY, THE
PARTIES MAY RELY ON THE VALUATION OF THE PROPERTY IN THE FINAL CLOSING
DOCUMENT DISCLOSURE THAT IS USED FOR THAT TRANSACTION.

F. FOR ANY CASE FILED UNDER TITLE 11, UNITED STATES CODE, THE AMOUNT
OF THE DEBTOR'S HOMESTEAD EXEMPTION INITIALLY SHALL BE DETERMINED AS OF THE
DATE THE BANKRUPTCY PETITION IS FILED. IF THE VALUE IN THE HOMESTEAD IS
LESS THAN OR EQUAL TO THE AMOUNT PRESCRIBED IN SUBSECTION A OF THIS SECTION
AT THE TIME OF FILING, INCLUDING ANY INCREASE PRESCRIBED BY SUBSECTION D OF

2G
oOo Oo NY DOD oO F&F WO DY KF

WO Ww WW W PR PM M M $M MP MP PM PNY ND KF KF KF KF KF KF KF KF KF FS
wo no KF OD HO ON TD oO FP W DO FPF TD HBO ON TD oO fF WO DY KF CO

House Amendments to S.B. 1540

THIS SECTION, THE HOMESTEAD PROPERTY IS ONE HUNDRED PERCENT EXEMPT AND ANY
INCREASE IN THE VALUE OF THE HOMESTEAD DURING THE PENDENCY OF THE
BANKRUPTCY CASE IS ONE HUNDRED PERCENT EXEMPT WITHOUT REGARD TO WHETHER THE
DEBTOR'S INTEREST INCREASES ABOVE THE AMOUNT PRESCRIBED BY SUBSECTION A OF
THIS SECTION, INCLUDING ANY INCREASE PRESCRIBED BY SUBSECTION D OF THIS
SECTION.

Sec. 2. Section 33-1126, Arizona Revised Statutes, as amended by
proposition 209, election of November 8, 2022, is amended to read:

33-1126. Money benefits or proceeds; exception

A. The following property of a debtor is exempt from execution,
attachment or sale on any process issued from any court:

1. All money received by or payable to a surviving spouse or child
on the life of a deceased spouse, parent or legal guardian, OF not
exceetting—twenty—thousand dottars MORE THAN $20,000.

2. The earnings of the minor child of a debtor or the proceeds of
these earnings by reason of any liability of the debtor not contracted for
the special benefit of the minor child.

3. All monies received by or payable to a person entitled to receive
child support or spousal maintenance pursuant to a court order.

4. All money, proceeds or benefits of any kind to be paid in a lump
sum or to be rendered on a periodic or installment basis to the insured or
any beneficiary under any policy of health, accident or disability
insurance or any similar plan or program of benefits in use by any
employer, except for premiums payable on the policy or debt of the insured
secured by a pledge, and except for collection of any debt or obligation
for which the insured or beneficiary has been paid under the plan or policy
and except for payment of amounts ordered for support of a person from
proceeds and benefits furnished in lieu of earnings that would have been
subject to that order and subject to any exemption applicable to earnings
so replaced.

5. All money arising from any claim for the destruction of, or
damage to, exempt property and all proceeds or benefits of any kind arising
from fire or other insurance on any property exempt under this article.

-3-
oO On DO TO FP WO YP KF

WO WO WW W RP PO PRP MP MP M M MH PDP NY KF KF KF RF RF RP KF KF KF KF
Oo nro KF OD OD ON DO fF WwW NY KF TD HY ON DTD oO fF WOW DY KF CO

House Amendments to S.B. 1540

6. The cash surrender value of life insurance policies where for a
continuous unexpired period of two years the policies have been owned by a
debtor. The policy shall have named as beneficiary the debtor's surviving
spouse, child, parent, brother or sister. The policy may have named as
beneficiary any other family member who is a dependent, in the proportion
that the policy names any such beneficiary, except that, subject to the
statute of limitations, the amount of any premium that is recoverable or
avoidable by a creditor pursuant to title 44, chapter 8, article 1, with
interest thereor ON THAT AMOUNT, is not exempt. The exemption provided by
this paragraph does not apply to a claim for the payment of a debt of the
insured or beneficiary that is secured by a pledge or assignment of the
cash value of the insurance policy or the proceeds of the policy. For the
purposes of this paragraph, “dependent" means a family member who is
dependent on the insured debtor for not less than half support.

7. An annuity contract where for a continuous unexpired period of
two years that contract has been owned by a debtor and has named as
beneficiary the debtor, the debtor's surviving spouse, child, parent,
brother or sister, or any other dependent family member, except that,
subject to the statute of limitations, the amount of any premium, payment
or deposit with respect to that contract is recoverable or avoidable by a
creditor pursuant to title 44, chapter 8, article 1 is not exempt. The
exemption provided by this paragraph does not apply to a claim for a
payment of a debt of the annuitant or beneficiary that is secured by a
pledge or assignment of the contract or its proceeds. For the purposes of
this paragraph, "dependent" means a family member who is dependent on the
debtor for not less than half support.

8. Any claim for damages recoverable by any person by reason of any
levy on or sale under execution of that person's exempt personal property
or by reason of the wrongful taking or detention of that property by any
person, and the judgment recovered for damages.

9. A total of $5,000 held in a single account in any one financial
institution as defined by section 6-101. The property declared exempt by
this paragraph is not exempt from normal service charges assessed against

-4-
oO On TD oO FP WW DY KF

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yo F oO Hb ON DO FF WHS F DOD wo DON DOT BF WHYS F OO

House Amendments to S.B. 1540

the account by the financial institution at which the account is carried.
The exemption prescribed in this paragraph shall be adjusted annually
beginning on January 1, 2024 and thereafter on January 1 of each successive
year by the increase in the cost of living. The increase in the cost of
living shall be measured by the percentage increase as of August of the
immediately preceding year over the level as of August of the previous year
of the consumer price index (all urban consumers, United States city
average for all items) or its successor index as published by the United
States department of labor, bureau of labor statistics, or its successor
agency, with the amount of the exemption rounded up to the nearest $100.

10. An interest in a college savings plan under section 529 of the
internal revenue code of 1986, either as the owner or as the beneficiary.
This does not include money contributed to the plan within two years before
a debtor files for bankruptcy.

11. ALL FEDERAL OR STATE PERSONAL INCOME TAX CREDITS FROM ANY
FEDERAL OR STATE EARNED INCOME TAX CREDITS OR FEDERAL OR STATE CHILD TAX
CREDITS. THE AMOUNT OF THE EXEMPTION SHALL BE THE LESSER OF THE TOTAL
COMBINED AMOUNT OF FEDERAL AND STATE TAX REFUNDS OR THE TOTAL COMBINED
AMOUNT OF ANY FEDERAL OR STATE EARNED INCOME TAX CREDITS AND ANY FEDERAL OR
STATE CHILD TAX CREDITS CLAIMED ON THE RETURN.

B. Any money or other assets payable to a participant in or
beneficiary of, or any interest of any participant or beneficiary in, a
retirement plan under section 401(a), 403(a), 403(b), 408, 408A or 409 or a
deferred compensation plan under section 457 of the United States internal
revenue code of 1986, as amended, whether the beneficiary's interest arises
by inheritance, designation, appointment or otherwise, is exempt from all
claims of creditors of the beneficiary or participant. This subsection
does not apply to any of the following:

1. An alternate payee under a qualified domestic relations order, as
defined in section 414(p) of the United States internal revenue code of
1986, as amended. The interest of any and all alternate payees is exempt

from any and all claims of any creditor of the alternate payee.

-5-
mo ON DTD oO fF WO DY KF

| a ey
oO ON DO OO FP WD MB YF CO

21

House

Amendments to S.B. 1540

2. Amounts contributed within one hundred twenty days before a
debtor files for bankruptcy.

3. The assets of bankruptcy proceedings filed before July 1, 1987.

C. Any person WHO IS AT LEAST eighteen years of age or-over, married
or single, who resides within this state and who does not exercise the
homestead exemption under article 1 of this chapter may claim as a personal
property homestead exempt from all process prepaid rent, including security
deposits as provided in section 33-1321, subsection A, for the claimant's
residence, OF not exceeting—two-thousandtdottars MORE THAN $2,000.

D. This section does not exempt property from orders that are the
result of a judgment for arrearages of child support or for a child support
debt.

Sec. 3. Repeal

A. Section 33-1101, Arizona Revised Statutes, as amended by Laws
2021, chapter 368, section 3, is repealed.

B. Section 33-1126, Arizona Revised Statutes, as amended by Laws
2022, chapter 346, section 1, is repealed.

Sec. 4. Applicability

Section 33-1101, Arizona Revised Statutes, as amended by section 1 of
this act, applies to any petition for bankruptcy proceedings that is filed
after the effective date of this act."

22 Amend title to conform

JEFF WENINGER

1540WENINGER SE.docx
03/14/2025
1:21 PM

C: MR
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1540

DATE March 18, 2025 moTION: _ [> p A SE

PASS

>
x

E NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

XR AINA

Diaz

Hendrix

Villegas
Wilmeth

Way, Vice-Chairman

Weninger, Chairman

= AWS

_—

fo) O O

Ley
APPROVED: coe SEGRETARY

Mina —_
JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. | i )
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DP 6-1-0-0 | 3™ Read 20-9-1-0

SB 1467: liquor; consumption; watercraft
Sponsor: Senator Shope, LD 16
Committee on Commerce

Overview
Modifies certain restrictions, for a government series liquor license, relating to the operation
of a dock and boats as a licensed premises.

History
The Department of Liquor Licenses and Control (DLLC) regulates the manufacture,

distribution and sale of liquor in Arizona through the issuance of a series of licenses and
investigating licensee compliance with liquor laws. Certain liquor licenses have on-sale retail
privileges allowing a customer to purchase and consume liquor on the licensed premises.

DLLC may issue a government license to any state agency, state board, state commission,
county, city, town, community college or state university, the National Guard or the Arizona
Exposition and State Fair Board on application authorized by the governing body of the
entity. A licensee may sell and serve spirituous liquors solely for consumption on the licensed
premises for which the license is issued. A licensed single premises may consist of no more
than one dock area that is designated by a city or town and is situated on a lake owned by
the city or town with no more than 30 boats that are operated on the lake.

Currently, the following apply to the operation of a dock and boats as a licensed premises: 1)
liquor may be sold only for consumption on the premises in conjunction with consumption of
food; 2) liquor cannot be served or consumed on the dock nor be served on a boat earlier than
15 minutes before the boat is scheduled to depart from the dock and after a boat returns to
the dock; 3) a person cannot be served more than 50 ounces of beer, one liter of wine or four
ounces of distilled spirits at one time while on a boat; 4) a person cannot bring liquor onto a
boat other than liquor purchased by the licensee or a concessionaire for resale; 5) the pilot of
each boat, all crew members and all persons who sell or serve liquor on each boat are deemed
the licensee's employees; 6) the pilot of each boat must have a current and valid coast guard
operator's license or successfully completed an approved safety and operator training course;
7) liquor cannot be served, consumed or possessed by a customer on the boat between the
hours of 11:00 p.m. and 5:00 p.m.; and 8) applicable liquor laws and rules apply to sales and
consumption of liquor on the licensed premises.

Boat is defined as a seaworthy vessel designed to carry and capable of carrying between 15
and 45 passengers, that has a displacement of no more than 10 tons and possesses a current
coast guard certificate (A.R.S. § 4-205.03).

Provisions

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

SB 1467
Initials Page 1 Commerce

ATTACHMENT /G
1. Removes the requirement, relating to a government license, that the sale of liquor be in
conjunction with the consumption of food. (Sec. 1)

2. Changes the time, relating to a government license, for which liquor may only be served,
consumed or possessed by a customer on a boat to between the hours of 9:00 a.m. and
11:00 p.m. (Sec. 1)

3. Modifies the definition of boat. (Sec. 1)
4, Makes technical changes. (Sec. 1)

SB 1467
Initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON

Commerce

BILL NO.

DATE

March 18, 2025

SB 1467

MOTION: ) E

PASS

>
~<

E

NAY

PRESENT

ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

ANAANAAIVAR

APPROVED:

VAL Gr

“JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

S

)

O

C@MMITTEE S

ETARY

ATTACHMENT. } l

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 6-1-0-0 | 3% Read 24-3-3-0

SB 1551: workers' compensation; disability; definitions
Sponsor: Senator Leach, LD 17
Committee on Commerce

Overview
Changes the basis of the schedule of fees relating to workers' compensation.

History
The Industrial Commission of Arizona (ICA) administers and enforces state laws relating to

the protection of life, health, safety and welfare of Arizona's employees, including workers'
compensation. Worker's compensation insurance provides coverage of medical costs,
rehabilitation and lost wages for an employee who has suffered injury or illness in the course
of performing job related duties (Title 23, Chapter 6, A.R.S.).

Every employer and physician who attends an injured employee of that employer must file a
full and complete report of every known injury to the employee arising out of or in the course
of employment and resulting in the loss of life or injury with the ICA and the employer's
insurance carrier from time to time. The ICA must fix a schedule of fees to be charged by
physicians, physical therapists or occupational therapists attending injured employees and
for prescriptions required to treat an injured employee. The ICA must annually review the
schedule of fees (A.R.S. § 23-908).

An employee who is injured by accident arising out of and in the course of employment
receives a statutorily fixed compensation based on the employee's average monthly wage. For
temporary total disability, the compensation is 66.67% of their average monthly wage for the
period of disability with an additional allowance of $25 per month for employee's with
dependents (A.R.S. §§ 23-1041, 20-1044).

Provisions

1. Changes the schedule of fees for workers' compensation to be associated with charges for
medical care, dental care and supplies that are received by injured employees, rather than
charges by physicians, physical therapists or occupational therapists attending injured
employees. (Sec. 2)

2. Exempts contracts that are necessary to develop and publish a fee schedule related to
dental care from the requirements of the State Procurement Code. (Sec. 2)

Instructs the ICA to publish the schedule of fees on its website. (Sec. 2)

4, Adds that the ICA is not required to publish the schedule of fees in the Arizona
Administrative Register. (Sec. 2)

5. Increases, from $25 to $100, the monthly dependent allowance provided to an employee
in addition to compensation for a temporary total disability. (Sec. 3)

OO Prop 105 (45 votes) O Prop 108 (40 votes) 0 Emergency (40 votes) UO Fiscal Note

; SB 1551
Initials Page 1 Commerce

ATTACHMENT /%
6. Modifies the definition of interest party to include the third-party administrator or an
authorized representative of a deceased employee. (Sec. 1)

SB 1551
Initials Page 2 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1551

ONO HP WDM FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1551
(Reference to Senate engrossed bill)

Amendment instruction key:
(GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
(Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
(GREEN-STRIKECUT-HI- BRACKETS] indicates new text removed from statute
or previously enacted session law.
(@reen—strtkeuut—i1trackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<@reerstrikevut—inr-carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

Section 1. Section 23-901, Arizona Revised Statutes, is amended to
read:

23-901. Definitions

In this chapter, unless the context otherwise requires:

1. “Award" means the finding or decision of an administrative law
judge or the commission as to the amount of compensation or benefit due an
injured employee or the dependents of a deceased employee.

2. "Client" means an individual, association, company, firm,
partnership, corporation or any other legally recognized entity that is
subject to this chapter and that enters into a professional employer
agreement with a professional employer organization.

3. "Co-employee" means every person employed by an _ injured
employee's employer.

4. "Commission" means the industrial commission of Arizona.

5. "Compensation" means the compensation and benefits provided by
this chapter.
6. “Employee", "workman", "worker" and “operative” means:

(a) Every person in the service of this state or a county, city,
town, municipal corporation or school district, including regular members
of lawfully constituted police and fire departments of cities and towns,
whether by election, appointment or contract of hire.

(b) Every person in the service of any employer subject to this
chapter, including aliens and minors legally or illegally allowed to work
for hire, but not including a person whose employment is both:

(i) Casual.

(ii) Not in the usual course of the trade, business or occupation
of the employer.

(c) Lessees of mining property and the lessees' employees and
contractors engaged in the performance of work that is a part of the
business conducted by the lessor and over which the lessor retains
supervision or control are within the meaning of this paragraph employees

ATTACHMENT /7

OnNA TH WNM FE

HOUSE AMENDMENTS TO S.B. 1551

of the lessor, and are deemed to be drawing wages as are usually paid
employees for similar work. The lessor may deduct from the proceeds of
ores mined by the lessees the premium required by this chapter to be paid
for such employees.

(d) Regular members of volunteer fire departments organized
pursuant to title 48, chapter 5, article 1, regular firefighters of any
volunteer fire department, including private fire protection service
organizations, organized pursuant to title 10, chapters 24 through 40,
volunteer firefighters serving as members of a fire department of any
incorporated city or town or an unincorporated area without pay or without
full pay and on a part-time basis, and voluntary policemen and volunteer
firefighters serving in any incorporated city, town or unincorporated area
without pay or without full pay and on a part-time basis, are deemed to be
employees, but for the purposes of this chapter, the basis for computing
wages for premium payments and compensation benefits for regular members
of volunteer fire departments organized pursuant to title 48, chapter 5,
article 1, or organized pursuant to title 10, chapters 24 through 40,
regular members of any private fire protection service organization,
volunteer firefighters and volunteer policemen of these departments or
organizations shall be the salary equal to the beginning salary of the
same rank or grade in the full-time service with the city, town, volunteer
fire department or private fire protection service organization, provided
if there is no full-time equivalent then the salary equivalent shall be as
determined by resolution of the governing body of the city, town or
volunteer fire department or corporation.

(e) Members of the department of public safety reserve, organized
pursuant to section 41-1715, are deemed to be employees. For the purposes
of this chapter, the basis for computing wages for premium payments and
compensation benefits for a member of the department of public safety
reserve who is a peace officer shall be the salary received by officers of
the department of public safety for the officers’ first month of regular
duty as an officer. For members of the department of public safety
reserve who are not peace officers, the basis for computing premiums and
compensation benefits is $400 a month.

(f) Any person placed in on-the-job evaluation or in on-the-job
training under the department of economic security's temporary assistance
for needy families program or vocational rehabilitation program shall be
deemed to be an employee of the department for the purpose of coverage
under the state workers' compensation laws only. The basis for computing
premium payments and compensation benefits shall be $200 per month. Any
person receiving vocational rehabilitation services under the department
of economic security's vocational rehabilitation program whose major
evaluation or training activity is academic, whether as an enrolled
attending student or by correspondence, or who is confined to a hospital
or penal institution, shall not be deemed to be an employee of the
department for any purpose.
ON anf WDM FE

HOUSE AMENDMENTS TO S.B. 1551

(g) Regular members of a volunteer sheriff's reserve, which may be
established by resolution of the county board of supervisors, to assist
the sheriff in the performance of the sheriff's official duties. A roster
of the current members shall monthly be certified to the clerk of the
board of supervisors by the sheriff and shall not exceed the maximum
number authorized by the board of supervisors. Certified members of an
authorized volunteer sheriff's reserve shall be deemed to be employees of
the county for the purpose of coverage under the Arizona workers'
compensation laws and occupational disease disability laws and shall be
entitled to receive the benefits of these laws for any compensable
injuries or disabling conditions that arise out of and occur in the course
of the performance of duties authorized and directed by the sheriff.
Compensation benefits and premium payments shall be based on the salary
received by a regular full-time deputy sheriff of the county involved for
the first month of regular patrol duty as an officer for each certified
member of a volunteer sheriff's reserve. This subdivision does not
provide compensation coverage for any member of a sheriff's posse who is
not a certified member of an authorized volunteer sheriff's reserve except
as a participant in a search and rescue mission or a search and rescue
training mission.

(h) A working member of a partnership may be deemed to be an
employee entitled to the benefits provided by this chapter on written
acceptance, by endorsement, at the discretion of the insurance carrier for
the partnership of an application for coverage by the working partner.
The basis for computing premium payments and compensation benefits for the
working partner shall be an assumed average monthly wage of not less than
$600 or more than the maximum wage provided in section 23-1041 and is
subject to the discretionary approval of the insurance carrier. Any
compensation for permanent partial or permanent total disability payable
to the partner is computed on the lesser of the assumed monthly wage
agreed to by the insurance carrier on the acceptance of the application
for coverage or the actual average monthly wage received by the partner at
the time of injury.

(i) The sole proprietor of a business subject to this chapter may
be deemed to be an employee entitled to the benefits provided by this
chapter on written acceptance, by endorsement, at the discretion of the
insurance carrier of an application for coverage by the sole proprietor.
The basis for computing premium payments and compensation benefits for the
sole proprietor is an assumed average monthly wage of not less than $600
or more than the maximum wage provided by section 23-1041 and is subject
to the discretionary approval of the insurance carrier. Any compensation
for permanent partial or permanent total disability payable to the sole
proprietor shall be computed on the lesser of the assumed monthly wage
agreed to by the insurance carrier on the acceptance of the application
for coverage or the actual average monthly wage received by the sole
proprietor at the time of injury.
OnNaTF WM FH

HOUSE AMENDMENTS TO S.B. 1551

(j) A member of the Arizona national guard, Arizona state guard or
unorganized militia shall be deemed a state employee and entitled to
coverage under the Arizona workers' compensation law at all times while
the member is receiving the payment of the member's military salary from
this state under competent military orders or on order of the governor.
Compensation benefits shall be based on the monthly military pay rate to
which the member is entitled at the time of injury, but not less than a
salary of $400 per month or more than the maximum provided by the workers’
compensation law. Arizona compensation benefits shall not inure to a
member compensable under federal law.

(k) Certified ambulance drivers and attendants who serve without
pay or without full pay on a part-time basis are deemed to be employees
and entitled to the benefits provided by this chapter and the basis for
computing wages for premium payments and compensation benefits for
certified ambulance personnel shall be $400 per month.

(1) Volunteer workers of a licensed health care institution may be
deemed to be employees and entitled to the benefits provided by this
chapter on written acceptance by the insurance carrier of an application
by the health care institution for coverage of such volunteers. The basis
for computing wages for premium payments and compensation benefits for
volunteers shall be $400 per month.

(m) Personnel who participate in a search or rescue operation or a
search or rescue training operation that carries a mission identifier
assigned by the division of emergency management as provided in section
35-192.01 and who serve without compensation as volunteer state employees.
The basis for computation of wages for premium purposes and compensation
benefits is the total volunteer man-hours recorded by the division of
emergency management in a given quarter multiplied by the amount
determined by the appropriate risk management formula.

(n) Personnel who participate in emergency management training,
exercises or drills that are duly enrolled or registered with the division
of emergency management or any political subdivision as provided in
section 26-314, subsection C and who serve without compensation as
volunteer state employees. The basis for computation of wages for premium
purposes and compensation benefits is the total volunteer man-hours
recorded by the division of emergency management or political subdivision
during a given training session, exercise or drill multiplied by the
amount determined by the appropriate risk management formula.

(o) Regular members of the Arizona game and fish department
reserve, organized pursuant to section 17-214. The basis for computing
wages for premium payments and compensation benefits for a member of the
reserve is the salary received by game rangers and wildlife managers of
the Arizona game and fish department for the game rangers' and wildlife
managers’ first month of regular duty.

(p) Every person employed pursuant to a professional employer
agreement.
ONO OFPWDNY FE

HOUSE AMENDMENTS TO S.B. 1551

(q) A working member of a limited liability company who owns less
than fifty percent of the membership interest in the limited liability
company.

(r) A working member of a limited liability company who owns fifty
percent or more of the membership interest in the limited liability
company may be deemed to be an employee entitled to the benefits provided
by this chapter on the written acceptance, by endorsement, of an
application for coverage by the working member at the discretion of the
insurance carrier for the limited liability company. The basis for
computing wages for premium payments and compensation benefits for the
working member is an assumed average monthly wage of $600 or more but not
more than the maximum wage provided in section 23-1041 and is subject to
the discretionary approval of the insurance carrier. Any compensation for
permanent partial or permanent total disability payable to the working
member is computed on the lesser of the assumed monthly wage agreed to by
the insurance carrier on the acceptance of the application for coverage or
the actual average monthly wage received by the working member at the time
of injury.

(s) A working shareholder of a corporation who owns less than fifty
percent of the beneficial interest in the corporation.

(t) A working shareholder of a corporation who owns fifty percent
or more of the beneficial interest in the corporation may be deemed to be
an employee entitled to the benefits provided by this chapter on the
written acceptance, by endorsement, of an application for coverage by the
working shareholder at the discretion of the insurance carrier for the
corporation. The basis for computing wages for premium payments and
compensation benefits for the working shareholder is an assumed average
monthly wage of $600 or more but not more than the maximum wage provided
in section 23-1041 and is subject to the discretionary approval of the
insurance carrier. Any compensation for permanent partial or permanent
total disability payable to the working shareholder is computed on the
lesser of the assumed monthly wage agreed to by the insurance carrier on
the acceptance of the application for coverage or the actual average
monthly wage received by the working shareholder at the time of injury.

7. “General order" means an order applied generally throughout this
state to all persons under jurisdiction of the commission.

8. "Heart-related or perivascular injury, illness or death" means
myocardial infarction, coronary thrombosis or any other similar sudden,
violent or acute process involving the heart or perivascular system, or
any death resulting therefrom, and any weakness, disease or _ other
condition of the heart or perivascular system, or any death resulting
therefrom.

9. “Insurance carrier" means every insurance carrier’ duly
authorized by the director of the department of insurance and financial
institutions to write workers' compensation or occupational disease
compensation insurance in this state.
OAmnNaTNHP WDM FE

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46
47

HOUSE AMENDMENTS TO S.B. 1551

10. "Interested party" means the employer, the employee, or if the
employee is deceased, the employee's estate, the surviving spouse or
dependents, the commission, the insurance carrier, wor—ttretr THE THIRD
PARTY ADMINISTRATOR OR AN AUTHORIZED representative.

11. "Mental injury, illness or condition" means any’ mental,
emotional, psychotic or neurotic injury, illness or condition.
12. "Order" means and includes any rule, direction, requirement,

standard, determination or decision other than an award or a directive by
the commission or an administrative law judge relative to any entitlement
to compensation benefits, or to the amount of compensation benefits, and
any procedural ruling relative to the processing or adjudicating of a
compensation matter.

13. "Personal injury by accident arising out of and in the course
of employment" means any of the following:

(a) Personal injury by accident arising out of and in the course of
employment.

(b) An injury caused by the wilful act of a third person directed
against an employee because of the employee's employment, but does not
include a disease unless resulting from the injury.

(c) An occupational disease that is due to causes and conditions
characteristic of and peculiar to a particular trade, occupation, process
or employment, and not the ordinary diseases to which the general public
is exposed, and subject to section 23-901.01 or 23-901.09 or, for
heart-related, perivascular or pulmonary cases, section 23-1105.

14. "Professional employer agreement" means a written contract
between a client and a professional employer organization:

(a) In which the professional employer organization expressly
agrees to co-employ all or a majority of the employees providing services
for the client. In determining whether the professional employer
organization employs all or a majority of the employees of a client, any
person employed pursuant to the terms of the professional employer
agreement after the initial placement of client employees on the payroll
of the professional employer organization shall be included.

(b) That is intended to be ongoing rather than temporary in nature.

(c) In which employer responsibilities for worksite employees,
including hiring, firing and disciplining, are expressly allocated between
the professional employer organization and the client in the agreement.

15. “Professional employer organization" means any person engaged
in the business of providing professional employer services. Professional
employer organization does not include a temporary help firm or an
employment agency.

16. "Professional employer services" means the service of entering
into co-employment relationships under this chapter to which all or a
majority of the employees providing services to a client or to a division
or work unit of a client are covered employees.

17. "Serve" or "service" means either:

(a) Mailing to the last known address of the receiving party.
ANAT HPWNH FE

HOUSE AMENDMENTS TO S.B. 1551

(b) Transmitting by [otrer——reans, i nectoritg J electronic

transmission[>—wrth—the—wrttten—consent—of—tte—_trecetving—party] [IN A
MANNER REASONABLY CALCULATED TO ACHIEVE EFFECTIVE NOTICE UNLESS THE

RECEIVING PARTY OPTS OUT BY PROVIDING WRITTEN NOTICE TO THE OTHER PARTY].

18. "Special order" means an order other than a general order.

19. "Weakness, disease or other condition of the heart’ or
perivascular system" means arteriosclerotic heart disease, cerebral
vascular disease, peripheral vascular disease, cardiovascular disease,
angina pectoris, congestive heart trouble, coronary’ insufficiency,
ischemia and all other similar weaknesses, diseases and conditions, and
also previous episodes or instances of myocardial infarction, coronary
thrombosis or any similar sudden, violent or acute process involving the
heart or perivascular system.

20. "Workers" compensation" means workmen's compensation as used in
article XVIII, section 8, Constitution of Arizona.

Sec. 2. Section 23-908, Arizona Revised Statutes, is amended to
read:

23-908. Injury reports by employer and physician; schedule of

fees; notification: public meeting: violation;
classification

A. Every employer that is affected by this chapter, and every
physician who attends an injured employee of that employer, shall file
with the commission and the employer's insurance carrier from time to time
a full and complete report of every known injury to the employee arising
out of or in the course of employment and resulting in loss of life or
injury requiring medical treatment. The report shall be furnished to the
commission and the insurance carrier at times and in the form and detail
the commission prescribes, and the report shall make special answers to
all questions required by the commission under its rules. For the
purposes of this subsection, medical treatment does not include any
onetime, short-term treatment by nonmedical staff that requires little
technology or training to administer, including treatment of minor
scratches, cuts, burns and splinters and other issues that ordinarily do
not require medical care.

B. The commission shall fix a schedule of fees to be charged by
piystctans,—phystcat—_therapists—or—occupattonrat_tteraptsts—attemittrg FOR
MEDICAL CARE, DENTAL CARE AND SUPPLIES THAT ARE RECEIVED BY injured
employees and, subject to subsection C of this section, for prescription
medicines required to treat an injured employee under this chapter.
CONTRACTS THAT ARE NECESSARY TO DEVELOP AND PUBLISH A FEE SCHEDULE RELATED
TO DENTAL CARE ARE EXEMPT FROM THE REQUIREMENTS OF TITLE 41, CHAPTER 23.
Notwithstanding subsection C of this section, the schedule of fees may
include other reimbursement guidelines for medications dispensed in
settings that are not accessible to the general public. The commission
shall annually review the schedule of fees. For the purposes of this
subsection, settings that are not accessible to the general public do not

OmnNOOLP WDM FE

HOUSE AMENDMENTS TO S.B. 1551

include mail order pharmacies delivering pharmaceutical services to
workers' compensation claimants, if both of the following apply:

1. The pharmacy does not limit or restrict access to claimants with
an affiliation to a medical provider or other entity.

2. Any medical provider or other entity referring a claimant to the
pharmacy does not receive or accept any rebate, refund, commission,
preference or other consideration as compensation for the referral.

C. If a schedule of fees for prescription medicines adopted
pursuant to subsection B of this section includes provisions regarding the
use of generic equivalent drugs or interchangeable biological products,
those provisions shall comply with section 32-1963.01, subsections A, B
and D through L. If the commission considers the adoption of fee schedule
provisions that involve specific prices, values or reimbursements for
prescription drugs, the commission shall base the adoption on studies or
practices that are validated and accepted in the industry, including the
applicability of formulas that use average wholesale price, plus a
dispensing fee, and that have been made publicly available for at least
one hundred eighty days before any hearing conducted by the commission.
Before the commission takes final action on the schedule of fees pursuant
to this subsection and subsection B of this section, except during a
public health emergency, the commission shall:

1. Prominently post on its publicly accessible website the proposed
schedule of fees at least thirty days before conducting a public hearing
on that proposed schedule of fees.

2. Hold at least one meeting that all interested parties may
jointly attend and interactively participate in after posting the proposed
schedule of fees but before conducting the hearing on the proposed
schedule of fees.

3. At least seven business days in advance, prominently post on its
publicly accessible website the final proposed schedule of fees to be
acted on for adoption.

D. Notwithstanding section 12-2235, information obtained by any
physician or surgeon examining or treating an injured person shall not be
considered a privileged communication if that information is requested by
interested parties for a proper understanding of the case and a
determination of the rights involved. Hospital records of an employee
concerning an industrial claim shall not be considered privileged if
requested by an interested party in order to determine the rights
involved. Medical information from any source pertaining to conditions
unrelated to the pending industrial claim shall remain privileged.

E. When an accident occurs to an employee, the employee shall
forthwith report the accident and the injury resulting from the accident
to the employer, and any physician employed by the injured employee shall
forthwith report the accident and the injury resulting from the accident
to the employer, the insurance carrier and the commission.

F. If an accident occurs to an employee, the employer may designate
in writing a physician chosen by the employer, who shall be allowed by the
OnNaATNHP WMP

HOUSE AMENDMENTS TO S.B. 1551

employee, or any person in charge of the employee, to make one examination
of the injured employee in order to ascertain the character and extent of
the injury occasioned by the accident. The physician so chosen shall
forthwith report to the employer, the insurance carrier and the commission
the character and extent of the injury as the physician ascertains. If
the accident is not reported by the employee or the employee's physician
forthwith, as required, or if the injured employee or those in charge of
the employee refuse to allow the employer's physician to make the
examination, and the injured employee is a party to the refusal, no
compensation shall be paid for the injury claimed to have resulted from
the accident. The commission may relieve the injured person or that
person's dependents from the loss or forfeiture of compensation if tt THE
COMMISSION believes after investigation that the circumstances attending
the failure on the part of the employee or physician to report the
accident and injury are such as to have excused them.

G. Within ten days after receiving notice of an accident, the
employer shall inform the insurance carrier and the commission on the
forms and in the manner as prescribed by the commission.

H. Immediately on notice to the employer of an accident resulting
in an injury to an employee, the employer shall provide the employee with
the name and address of the employer's insurance carrier, the policy
number and the expiration date.

I. THE COMMISSION SHALL PUBLISH ON THE COMMISSION'S PUBLICLY
ACCESSIBLE WEBSITE THE SCHEDULE OF FEES AS PRESCRIBED IN SUBSECTIONS B AND
C OF THIS SECTION. THE COMMISSION IS NOT REQUIRED TO PUBLISH THE SCHEDULE
OF FEES IN THE ARIZONA ADMINISTRATIVE REGISTER.

t> J. Any person failing or refusing to comply with this section
is guilty of a petty offense.

d>- kK. Subsection B of this section does not prohibit:

1. A health care provider or pharmacy from entering into a separate
contract or network that governs fees, in which case reimbursement shall
be made according to the applicable contracted charge or negotiated rate.

2. An employer from directing medical, surgical or hospital care
pursuant to section 23-1070.

Sec. 3. Section 23-1045, Arizona Revised Statutes, is amended to
read:

23-1045. Compensation for total disability; permanent total

disability defined

A. For temporary total disability the following compensation shal]
be paid:

1. Compensation of sixty-six and two-thirds per—cermt PERCENT of the
average monthly wage shall be paid during the period of disability.

2. If there are persons dependent for support upor ON the employee,
compensation shall be paid as provided in this section, with an additional
allowance of twemty~five-tottars $100 per month for such dependents during
the period of disability. The additional allowance shall not be based

ONO WDNY FE

19
20

HOUSE AMENDMENTS TO S.B. 1551

uporr ON a per capita number of dependents but shall reflect a _ total
monthly benefit increase of exactly twemnty~five-totters $100.

B. For permanent total disability, compensation of sixty-six and
two-thirds per—cert PERCENT of the average monthly wage shall be paid
during the life of the injured person.

C. In the absence of proof to the contrary, disability shall be
deemed total and permanent if caused by:

The total and permanent loss of sight of both eyes.
The loss by separation of both feet.
The loss by separation of both hands.

4. An injury to the spine resulting in permanent and complete
paralysis of both legs or both arms, or one leg and one arm.

5. An injury to the skull resulting in incurable imbecility or
insanity.

6. The loss by separation of one hand and one foot.

D. The enumeration in this section is not exclusive, and in all
other cases permanent total disability shall be determined in accordance
with the facts and in accordance with tte-provtstors—of section 23-1047.

wORr re

Enroll and engross to conform
Amend title to conform

JEFF WENINGER

1551WENINGER. docx
03/14/2025

04:57 PM

PB/1s

H:

- 10 -
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1551

DATE March 18, 2025 MOTION: DPA

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas
Wilmeth
Way, Vice-Chairman

Weninger, Chairman

AINNAN ANA

O | O

”N AR tae COMMITTEE SEGRETARY

“JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 20

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