Arizona House of Representatives Committee on Commerce Report of Regular Meeting and Agenda Packet

Summary

The report of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fourth Legislature, Second Regular Session, held Tuesday, February 11, 2020, with its agenda packet and attachments. The report lists the members present, chaired by Mr. Weninger with Mr. Grantham as Vice-Chairman, and records committee action on bills including HB2669 and HB2643 (DPA 9-0-0-0), HB2380 (DP 5-4-0-0) and HB2739 (DPA 7-1-0-1), with HB2635 held. The packet includes the meeting agenda and a Request to Speak report listing organizations and individuals registered in support of, neutral on or opposed to the bills. It closes with vote sheets and a December 18, 2019 letter from the Chairman of the Santa Cruz County Board of Supervisors to Representative Gail Griffin supporting a health code exemption for wineries.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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

COMMITTEE ON COMMERCE
Report of Regular Meeting

Tuesday, February 11, 2020
House Hearing Room 3 -- 2:00 P.M.

Convyened 2:52 P.M.
Recessed
Reconvened
Adjourned 5:02 P.M.

Members Present

Mr. Biasiucci

Ms. Butler

Mr. Chavez

Ms. Epstein

Mr. Kern

Mr. Meza

Mr. Roberts

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

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

MINUTES RECEIVED
CHIEF CLERK'S OFFICE

2-~\3-20

Bill Action Vote Attachments
HB2669 DPA 9-0-0-0 4,5,6
HB2643. DPA 9-0-0-0 7, 8,9
HB2380 DP 5-4-0-0 10, 11
HB2529 DP 6-1-1-1 12, 13
HB2501 DP 8-1-0-0 14, 15
HB2739 DPA 7-1-0-1 16, 17, 18
HB2628 DPA 7-1-1-0 19, 20, 21
HB2498 DP 8-0-0-1 22, 23
HB2453 DPA 8-0-0-1 24, 25, 26, 27

HB2635 HELD

Iris McMahon, Committee Secretary

February 13, 2020

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

COMMITTEE ON COMMERCE
February 11, 2020

CORRECTED CORRECTED CORRECTED

REVISED - 2/07/20 REVISED - 2/07/20 REVISED - 2/07/20
Lenyened | 07 Fl pny

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature - Second Regular Session ¢
REGULAR MEETING AGENDA
COMMITTEE ON COMMERCE
DATE Tuesday, February 11, 2020 ROOM HHR3 TIME
2:00 P.M.
Members:
Mr. Biasiucci Ms. Epstein Mr. Roberts
Ms. Butler Mr. Kern Mr. Grantham, Vice-Chairman
Mr. Chavez Mr. Meza Mr. Weninger, Chairman
Bills Short Title Strike Everything Title

4 HB2380 I 4 »-0 product liability; civil action; limitation.
——— (Blackman: Biasiucci, Bolick, et al)
Df COM, JUD wid, RULES

g HB2453 V7, of DHS; exemption; certain foods; wineries
¢ wer
(Griffin)

)) PA COM, RULES

g HB2498 unmanned aircraft study committee
(Weninger)

) f? COM, RULES

5 HB2501 f- {-0-0 commerce authority; adult workforce education,
(Carroll: Allen J, Biasiucci, et al)
DF COMED, RULES

HB2522 bineo: Heenses-taxes:

coe  Ciebermans-Pannd

GOM,RULES

p *HB2529 6b. Lie] nonretaliation policies; health care institutions
4 ra ¢
————— (Shah)
D /? HHS dp 9-0-0-0-0, COM, RULES

Page 1 of 2
CORRECTED CORRECTED
Bills Short Title

q HB2628 fel _ O health care insurance; amendments
‘ (Bolick: Carroll)
D/A com, RULES

**HB2635 mobile home parks; caregivers
(Blackman: Bolick)

COM held 0-0-0-0-0, RULES

HELD

2. *HB2643 insurance; optometrists; contracts; covered services

DP. RA, COM, RULES

/ HB2669 online dating fraud; member notice

197040
G-g 0-9 (Cobb)
DPA COM, RULES

Lb HB2739 4 Jo0- / liquor omnibus

(Weninger)
DPA COM, RULES
* If out of primary committee
we On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

im
92/05/2026
02/07/2020

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at

(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 2 of 2

CORRECTED
Strike Everything Title

Information Registered on the Request to Speak System

House Commerce (2/11/2020)

HB2669, online dating fraud; member notice

Testified in support:
Ryan O'Daniel, Match.com

Support:

Casey Burton, representing self

HB2643, insurance: optometrists: contracts: covered services

Testified in support:
Marie Isaacson, AZ OPTOMETRIC ASSN; Julian Roberts, NATIONAL ASSOCIATION OF VISION CARE PLANS

Support:

Don tsaacson, AZ OPTOMETRIC ASSN; Robert Holden, NATIONAL ASSOCIATION OF VISION CARE PLANS; Blake
Johnson, AVESIS; Barbara Meaney, NATIONAL ASSOCIATION OF VISION CARE PLANS; Annette Hanian, representing
self; Stacey Meier, representing self; Mark Cardenas, AZ OPTOMETRIC ASSN

All Comments:

Robert Holden, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the House Commerce
Committee amendment.; Julian Roberts, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the
House Commerce Committee amendment.; Blake Johnson, AVESIS: Supportive with the House Commerce
Committee amendment.; Barbara Meaney, NATIONAL ASSOCIATION OF VISION CARE PLANS: Supportive with the
House Commerce Committee amendment.; Annette Hanian, Self: Representing AZ Optometric Assoc

HB2529, nonretaliation policies; health care institutions

Testified in support:
Steve Barclay, Arizona Medical Association, Arizona Osteopathic Medical Association

Testified as neutral:
Jennifer Carusetta, HEALTH SYSTEM ALLIANCE OF ARIZONA

Support:
Susan Cannata, The Arizona Academy Of Family Physicians; Laura Dearing, The Arizona Academy Of Family
Physicians; Denise Link, PhD, WHNP, representing self; Jon Amores, AZ MEDICAL ASSN

Attachment A

———
Neutral:
Greg Ensell, AZ HOSPITAL & HEALTHCARE ASSN

HB2380, product liability: civil action: limitation.

Testified in support:
Chad Heinrich, NATIONAL FEDERATION OF INDEPENDENT BUSINESS

Testified as neutral:
Meghaen Dell'Artino, COXCOM INC

Testified as opposed:
Barry Aarons, AZ TRIAL LAWYERS ASSOCIATION

Support:

Ellen Poole, Executive Director, SW Region Govt Relations, American Property & Casualty Insurers; Terrance Traylor,
representing self; Jose Borrajero, representing self; Soencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL
AZ; Michelle Ahimer, AZ RETAILERS ASSN; Kay Reardon, representing self; Lyane Weaver, representing self; Jere
Fredenburgh, representing self; Jered Skousen, representing self; April Pinger, representing self; James Dutton,
representing self; Christine Maceri Genge, representing self; Dennis Genge, representing self; John Morris,
representing self; Jennifer Wellsman, representing self; Brent Backus, representing self; Nan Nicoll, representing
self; JoAnn Dutton, representing self; Mark Logan, representing self; Johanna Haver, representing self; George
Moriarty, representing self; Walter Steiner, representing self; Jerry Clingman, representing self; Theresa Logan,
representing self; Jen Springman, GREATER PHOENIX CHAMBER OF COMMERCE; Leiann Anderson, representing
self; Ed Sangalli, representing self; Bob Jolley, representing self; Robert Scott, representing self; Courtney Coolidge,
AZ CHAMBER OF COMMERCE

Oppose:

Joan Murphy, representing self; Sandy Bahr, Sierra Club - Grand Canyon Chapter; kathleen mayer, representing
self; Rivko Knox, representing self; Judy Schwiebert, representing self; Peter Bengtson, representing self; Thomas
Krepitch, representing self; Mary Pradelt, representing self; Harry Lumley, representing self; Mark Stambaugh,
representing self; Laurel Hardin, representing self; howard johnson, representing self; Barbara Warren,
representing self; Elna Otter, representing self; Kathleen Noble, representing self; Rose Sperry, representing self;
Janet Larkin, representing self; Rebecca Smith Gross, representing self; Dawn Tripp, representing self; Peggie Jo
Vincent, representing self; marilyn duerbeck, representing self; Kevin Brown, representing self; Beverly Janowitz-
Price, representing self; Rosalind Switzer, representing self; Bonnie Barker, representing self; Kenneth Bierman,
representing self; mary daly, representing self; Mary Ann Graffagnino, representing self; Beatriz Urrea,
representing self; Doug Arnold , representing self; Dianne Post, representing self; margaret gallagher, representing
self; richard sperry, representing self; Sandy Whitley, representing self; Kristen Wolfe, representing self; Karen
Cusano, representing self; Bettina Bickel, representing self; Bryna Koch, representing self; Catherine Sigmon,
representing self; Barbara Fraboni, representing self; Darrell Boomgaarden, representing self; Kathryn Kaczmarek,
representing self; Susan Arnold, representing self; Elizabeth Schauer, representing self; Gail Kamaras, representing
self; Charlie Silver, representing self; Barbara Oliver, representing self; Kristin Clark, representing self; lain Hamp,
representing self; David Douthit, representing self; Barbara Hutchinson, representing self; Ginger Hamp,
representing self; Marcie Stone, representing self; SALLY CONNELLY, representing self; Susan Morris, representing

self; fill scherer, representing self; Brent Gibbs, representing self; Rebecca Olsen McHood, representing self; Julie
Golding, representing self; Jillian Jones, representing self; Megan Astudillo, representing self; Sharon Gerrard,
representing self; Brenda Nelson, representing self; Melinda Sims, representing self; Christine Keitges,
representing self; Christopher Miller, representing self; Keith Bagwell, representing self; Lawrence Peters,
representing self; Kathy Dixon, representing self; Elisabeth Haskell, representing self; Sarabeth Spencer,
representing self; Marlene Verdery, representing self; Alexandra Dubois, representing self; Lynn Ashby,
representing self; Claire Ellington, representing self; Linda Edwards, representing self; Kathy Fraser, representing
self; Elizabeth Hamilton, representing self; Kimberlee McClure, representing self; Mary Martiniak, representing
self; Murdock Holloway, representing self; Truly Bone, representing self; Anne Walsh, representing self; Gail Bliss,
representing self; Linda Bentley, representing self; Rachel Rulmyr, representing self; Ryan Anderson, representing
self; Susan Anderson, representing self; Janet Senf, representing self; Don Bentley, representing self; Marilyn Coyle,
representing self; Wanda Kolomyjec, representing self; Penny Boone, representing self; Susanne Rose Muller,
representing self; Wiiliam Kelly, representing self; Anne Leota Hart, representing self; janice sandoz, representing
self; Sarah Graff, representing self; Mary Santy, representing self; GARY LEW OLIVER, representing self; Margie
Goulden, representing self; Margaret Adams , representing self; Robert Bulechek, representing self; Joan Mason,
representing self; Jeffrey Fortney, representing self; Mary Fortney, representing self; Marilyn Childs, representing
self; Mariette Francis, representing self; Virginia Dotson, representing self; Greer Warren, representing self;
Dorothy Schumacher, representing self; Lori Cinnamond, representing self; Hayley Stenger, representing self;
Kathleen Dubbs, representing self; Nancy Santori, representing self; Tamar Rala Kreiswirth, representing self; Sue
Thorne, representing self; Margaret DeVries, representing self; Bradly Duell, representing self; Mary-Jeanne
Fincher, representing self; Carrie L. Goode, representing self; Nickolas Stenger, representing self; Lydia Wilson,
representing self; Roxanna Kearns, representing self; William S. James, representing self; Stephen Coyle,
representing self; Jo Ann Caruthers, representing self; Sabrina Wishart, representing self; Paisley Rossetti,
representing self; Kelli Lang, representing self; Norman Fuchs, representing self; Pamela Thompson, representing
self; John Stuckey, representing self; Mary Nelson, representing self; Susan Phelps, representing self; Teresa
Neiberg, representing self; Howard Neiberg, representing self; irwin Sheer, representing self; Karen Harris,
representing self; Caroline Anderson, representing self; Margaret Nichols, representing self; Roberta Kithcart,
representing self; Peter Byrd, representing self; Gary Rulapaugh, representing self; Linda Petersen-Vargas,
representing self; Emmie Cardella, representing self; Andrea Will, representing self; Jo Brookshier, representing
seif; Irene Arango, representing self; Margaret Owen, representing self; Chandra Goff, representing self; Sharon
Haynes, representing self; Janet Tatman, representing self; Charlotte Lis, representing self; Carol Trunnell,
representing self; Suzanne Mallamo , representing self; William Yohey, representing self; Leslie Hunten,
representing self; Michael Weingarten, representing self; Joan Thomas, representing self; Mary Gaudio,
representing self; Deborah North, representing self; Roy Verdery, representing self; Carol Garnett, representing
self; Jennifer Dawson, representing self; Katherine Gaboury, representing self; Rita Day, representing self; Jennifer
Huerta, representing self; Angélica Terrazas, AZ TRIAL LAWYERS ASSOCIATION; Sandra Rizzo, representing self;
Laurie Munn, representing self; Danielle Pollett, representing self; Kate Van Roekel, representing self; Patricia
Edelen, representing self; Margaret Lacey, representing self; Carol Stafford , representing self; Linda Block,
representing self; Janet Herbert, representing self; Diane Nevill, representing self; Jean Meconi, representing self;
Erin McCamish, representing self; Dave Tanguay, representing self; Elizabeth Lyons, representing self; Daniel
DeVries, representing self; Carolyn Lowther, representing self; Melissa Amberson, representing self; Frederique
Delhaye, representing self; Steve Marks, representing self; Susan Braverman, representing self; Nancy Hancock,
representing self; Jisoo Kim, representing self; Deborah Howard, representing self; Barbara Swenson, representing
self; Charles Albrecht, representing self; Nigel Taplin, representing self; Melanie Kishi, representing self; Kerrie Jo
Yarnell Green, representing self; Austin Kerr, representing self; Arthur Kilduff, representing self; Sally Dooley,
representing self; Beverly Cameron, representing self; Jane Atkins, representing self; Patrick Diehl, representing

self; Linda Meigs, representing self; Gregory Hanson, representing self; John Sandoz, representing self; Miriam
Black, representing self; Charlene Hoffman, representing self; REBECCA CELAYA, representing self; Pat Jayson,
representing self; THOMAS GILLER, representing self; Linda Reichert, representing self; Donna Johnson,
representing self

All Comments:

Jose Borrajero, Self: The shotgun practice of suing everyone in sight should be stopped. Defendants should be

limited to those that could reasoably be held accountable.; Jere Fredenburgh, Self: ABSOLUTELY. I{f the seller did

not cause the problem...just common sense.; Jered Skousen, Self: Limits liability of the seller if the seller did not

cause the problem; Nan Nicoll, Self: We must be in favor of relief from being responsible when we did not cause

the problem.; Joan Murphy, Seif: When is the legislature going to protect citizens instead of just ripping us off?;

kathleen mayer, Self: why must support for business interests come at the expense of consumer safety. R's don't

really care about consumers, do they?; Rivko Knox, Self: Will harm consumers!!; Peter Bengtson, Self: | urge your

opposition to this bill.; Laurel Hardin, Self: | favor fewer limits on product fiability. What if someone dies from a

badly made drug (prescription)}?; Elna Otter, Self: This bill moves the wrong direction with respect to product

liability. We need makers and vendors to assume more rather than less accountability.; Kathleen Noble, Self: We

don't need more limits on product liability.; Mary Ann Graffagnino, Self: The last thing we need is a law that allows

for more irresponsible behavior by big businesses.; Sandy Whitley, Self: | oppose this bill because it places

additional limits on product liability and could allow for irresponsible behavior by big businesses rather than

protecting the consumer.; Kathryn Kaczmarek, Seif: | strongly oppose this bill, as it would place limits on product

liability and sadly large corporations would conduct themselves irresponsibly. Not good for AZ.; Gail Kamaras, Self:

What lobbyist wrote this one? We need more protection from bad products, not less.; Barbara Oliver, Self: We

don't need any bill that would allow for more reprehensible behavior by big business.; Susan Morris, Self:

Absolutely not. Don't fet businesses off the hook when they are responsible for injuries.; Sharon Gerrard, Self: |

believe this would cause more bad behavior on the part of big corporations.; Keith Bagwell, Self: There should be

no additional limits on a victim's right to take legal action against a company whose product caused death or

serious physical harm.; Lawrence Peters, Self: Why do R legislators routinely put forward bills that may harm

citizens? Is this because they are cowtowing to dark money and big donors?; Kathy Dixon, Self: Big business

doesn't need any more ways to escape responsibility; Elisabeth Haskell, Self: Does Arizona really need to make its

consumers and citizens even MORE vulnerable to irresponsible practices of big businesses? The answer is NOI

Our state's #1 priority should be protecting our peoplei; Lynn Ashby, Self: "When Corporations Rule the World” |
should be required reading for the sponsors of this bill. Will not benefit AZ citizenry in any way.; Elizabeth Hamilton,

Self: |am completely against any effort to limit product liability in any way.; Penny Boone, Self: No! This is a law

that allows for more irresponsible behavior by big businesses!; William Kelly, Self: Protect people, not
corporations.; Anne Leota Hart, Self: This is another bill that will permit more irresponsible behavior by big |
businesses. Not what we need in Arizona.; Margie Goulden, Seif: By limiting product liability, you are actually
hurting the consumers; preventing them from getting a fair compensation for a product that fails. Please, support
the consumers in this state, not the businesses.; Virginia Dotson, Self: Businesses should stand behind their
products.; Greer Warren, Self: Oppose. This allows a pass for irresponsible behavior by big business. Protect
citizens, not corporations.; Lori Cinnamond, Self: Which business lobbies bought this bill?; Sue Thorne, Self:
Additional limits on Product Liability??? NO, NO, NO!!! Big Business uses it's billions not to protect its customers ,
but to buy elections with dirty money, and encourage the capitalistic greed that goes along with administrators"
mansions, etc.; Mary-Jeanne Fincher, Self: Product liability suits are sometimes the only means to get unsafe
products off the market and to protect and compensate consumers who might or have been injured.; Roxanna
Kearns, Self: Do not place additional limits on product liability. Consumers must have adequate protections.;
Pamela Thompson, Self: Why would you support something that weakens protections for Arizonans? | guess you

would if you were in the pockets of Big Business.; John Stuckey, Self: If anything, product liability should be
increased, not reduced. Allowing big businesses to behave even more irresponsibly than they do now is a very bad
idea.; Irwin Sheer, Self: Anti-consumer pro-business legislation.; Margaret Nichols, Self: The last thing we need is a
law that allows for more irresponsible behavior by big businesses.; Peter Byrd, Self: No limits on product liability
are needed.; Margaret Owen, Self: | oppose this. Lawmakers should be protecting us, the the consumers, their
constituents, not big business. This weakens protections for all of us with regard to products that can harm us.
Goodness, what a strange thing to propose.; Carol Trunnell, Self: We don;'t need laws to encourage more
irresponsible behavior by business.; William Yohey, Self: We need MORE accountability of irresponsible behavior
by corporations not less!; Leslie Hunten, Self: No limits on corporate liability!; Mary Gaudio, Self: Protect
consumers!; Roy Verdery, Self: Businesses, with their financial and legal clout, already get away with causing harm
without consequence.; Carol Garnett, Self: Why reduce liability for products that may be dangerous and cause
harm.; Katherine Gaboury, Self: The last thing we need is a law that allows for more irresponsible behavior by big
businesses.; Rita Day, Self: This would allow more irresponsible behavior by big business by placing additional
limits on product liability.; Sandra Rizzo, Self: This is not in the best interests of our citizens.; Laurie Munn, Self: Yes,
let's by all means add another law that allows for even more irresponsible behavior and less accountability by big
business. Who's funding this particular sponsor? Follow the money, people. Please vote no.; Patricia Edelen, Self:
Do not sanction more irresponsibility from big business.; Janet Herbert, Self: Strongly oppose.; Diane Nevill, Self:
We don't need more limits on product liability. Soon it will just be "buyer beware."; Steve Marks, Self: pushes
consumer protections off the ledge....NO industry needs incentives for safety its common sense... NO; Jisoo Kim,
Self: The last thing we need is additional limits on product liability. This does not protect consumers.; Deborah
Howard, Self: This bill would undermine and weaken consumer protections on product liability. Please oppose.;
Melanie Kishi, Self: why would we want a law that allows manufacturers to avoid liability?; Sally Dooley, Self:
Consumer protection please!; Beverly Cameron, Self: This would allow more irresponsible behavior by big business.
This ts the last thing we need]; Jane Atkins, Self: Monsanto... opiods, need | say more.; Patrick Diehl, Self: We need
to protect consumers, not corporations, which already have more than enough power and permission to do harm.;
Linda Meigs, Self: We must hold big businesses accountable for irresponsible behavior! Vote NO!; Gregory Hanson,
Self: Consumer protection not big business protection.; THOMAS GILLER, Self: STRONGLY OPPOSE!!; Donna
Johnson, Self: The public needs to be protected more not less from dangerous products and shoddy building
practices

HB2501, commerce authority: adult workforce education.

Testified in support:
Michael Haener, Partner, Graduation Alliance

Support:
Christopher Dickinson, GRADUATION SOLUTIONS, LLC

HB2453, DHS; exemption; certain foods: wineries

Testified in support:
Alan Everett, AZ WINE GROWERS ASSN
Support:

Chelsea McGuire, AZ FARM BUREAU FEDERATION; Todd Bostock, representing self; Lisa Callaghan, representing
self; Tom Farley, Wine Spirits Wholesalers Association Of Arizona; Julie Rees, ARIZONA VIGNERONS ALLIANCE; Dr
Garrison Ellam, representing self

Neutral:
Rick Hazelton, Arizona Department Of Health Services

All Comments:

Alan Everett, AZ WINE GROWERS ASSN: AWGA supports HB2453; Lisa Callaghan, Self: We support Rep. Griffin's bill
and the Rep. Weninger amendment.; Julie Rees, ARIZONA VIGNERONS ALLIANCE: We support the bill and
Weninger amendment.; Rick Hazelton, Arizona Department Of Health Services: .

r1B2739, liquor omnibus

Testified in support:
Steve Barclay, BEER & WINE DISTRIBUTORS OF ARIZONA; Tom Farley, Wine Spirits Wholesalers Association Of
Arizona; Dr Garrison Ellam, representing self

Support:

Don Isaacson, AZ LICENSED BEVERAGE ASSN; Marie Isaacson, AZ LICENSED BEVERAGE ASSN; Todd Baughman,
WINE INSTITUTE; Trish Hart, AZ FOOD MARKETING ALLIANCE; Mike Williams, DISTILLED SPIRITS OF US INC
{DISCUS}; Julie Rees, ARIZONA VIGNERONS ALLIANCE; Todd Bostock, representing self; Rob Fullmer, representing
self; Camila Alarcon, ARIZONA CRAFT BREWERS GUILD; Peter Schelstraete, representing self

Neutral:
Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Yesenia Dhott, PHOENIX, CITY OF

All Comments:

Dr Garrison Ellam, Self: Will answer any questions regarding ARS 2-205.10 amendments and 4-225 addition;
Yesenia Dhott, PHOENIX, CITY OF: We are supportive of the amendment, it provides clarification and addresses the
City's concerns with ARS 4-210.

tiB2628, health care insurance; amendments

Testified in support:
Chuck Bassett, Blue Cross Blue Shield Of AZ

Support:

Elizabeth Hatch, AETNA INC; Gregory Harris, Other; Greg Ensell, AZ HOSPITAL & HEALTHCARE ASSN; Steve Barclay,
Arizona Osteopathic Medical Association; Elizabeth Goodman, BLUE CROSS AND BLUE SHIELD OF AZ; Jennifer
Carusetta, HEALTH SYSTEM ALLIANCE OF ARIZONA; Jen Springman, GREATER PHOENIX CHAMBER OF COMMERCE;
Shelbe Hunsaker, UNITED HEALTH GROUP; Jon Amores, AZ MEDICAL ASSN; Gibson McKay, AMERICAN COUNCIL
FOR PATIENT LIBERTY
All Comments:
Gregory Harris, Other: Delta Dental of Arizona

HB2498, unmanned aircraft study committee

11B2635, mobile home parks: caregivers

Support:
Brandy Petrone, AARP

HOUSE OF REPRESENTATIVES

Please PRINT Clearly

Committeeon Commenter Bill Number ‘aa (> < 380

Date Y~} 2-202 Support Oi Oppose O Neutral wale!
Ss fo”

Name S, 3 fe Oa, LCL Yt" Need to Speak? OYes ONo

Representing Se (Va Are you a registered lobbyist? /N o

Complete Address 4606 = Palo Verte (Ir. Lhe
E-mail Address fo CEU Cle 4 O ape Phone Number GC? , 2° E127 Wy

Comments: = .

#8 RT VE-MINUTE SPEAKING LIMIT***

ARIZONA STATE LEGISLATURE
Fifty-fourth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON

COMMERCE

CHAIRMAN: Jeff Weninger

VICE-CHAIRMAN: Travis W. Grantham

DATE 02/11/20 /20 120 120 /20
CONVENED APA m m m m
RECESSED |
RECONVENED
ADJOURNED S'03 aN
MEMBERS .
Biasiucci VA
Butler /
Chavez A
Epstein WA
Kern vA
Meza J |
Roberts f
Grantham, Vice-Chairman J
Weninger, Chairman J
Vv Present --- Absent exc Excused

Attachment Zs

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2669: online dating fraud; member notice
Sponsor: Representative Cobb, LD 5
Committee on Commerce

Overview
Establishes fraud ban disclosure requirements for an online dating service provider.

History
Contracts for a dating referral service must be in writing and include any requirement or prohibition

as prescribed by law. A dating service enterprise is prohibited from: 1) using coercive sales tactics;
2) misrepresent the quality, benefits or nature of services; 3) misrepresent the qualifications or
number of other customers participating in the services provided by the enterprise; and 4)
misrepresent the success the enterprise has had in making matches or referrals that are favorable
to the enterprise's customers (A.R.S. § 44-7154).

Dating referral services is defined as services that are primarily intended to introduce or match
adults for social or romantic activities, including activities that are commonly referred to as
computer dating or video dating services. Dating referral services does not include arrangements
in which one party is compensated for engaging in the social activity.

Dating services enterprise or enterprise is defined as any person or business entity that offers
dating referral services to the public for compensation. (A.R.S. § 44-7151)

Provisions

1. Requires an online dating service provider to give notice to members who have previously
received or responded to an on-site message from another member who is subject to a fraud
ban.
a) Outlines the contents of the notice. (Sec. 3)

2. Requires the notification to be:

a) Clear and conspicuous;

b) Sent through email, text message or other appropriate means of communication
consented to by the member; and

c) Send within 24-hours after the fraud ban is initiated against the banned member, except
that notification may be sent within three days after the fraud ban is initiated if, the
judgment of the online dating service provider, circumstances require additional time.
(Sec. 3)

3. Specifies that an online dating service provider is not liable to any person other than a state
agency, for the following:
a) For the means of communication used to notify a member;
b) When the notification is sent; or
c) For disclosing specified information. (Sec. 3)

4. Specifies the law does not create a private right of action or diminish or adversely affect the
protections in accordance with Federal law. (Sec. 3)

Initials MCL Commerce

Attachment 4
5. Defines banned member, fraud ban, member, member in this state, and online dating service
provider. (Sec. 2)

6. Makes a conforming change. (Sec. 1)

Initials MCcL___ Commerce
Fifty-fourth Legislature Commerce
Second Regular Session : H.B. 2669

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2669
(Reference to printed bill)

1 Page 1, line 44, strike “IN THIS STATE"

2 Amend title to conform

JEFF WENINGER

2669WENINGER
02/10/2020
10:59 AM

H: LG@/ra

Attachment_.4
Adopted J. # of V

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2669
DATE February 11, 2020 MOTION: D L. Al

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

9 |» ( D

i aher/

APPROVED: COMMITTEE SECRETARY

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

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ATTACHMENT. @

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2643: insurance; optometrists; contracts; covered services
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview

States that a contract between an optometrist and a specified health insurer, cannot require the
optometrist to provide services based on a fee set by the health insurer unless the fee applies to
a covered service.

History
An Optometric Service Corporation (Corporation) is a corporation organized for the purpose of

establishing, maintaining and operating nonprofit optometric service plans. The Corporation
contracts with general, specialized or restricted practice optometrists to provide subscribers with
optometric services (A.R.S. § 20-822).

A Health Care Services Organization (Organization) is a person who undertakes the conducting
of one or more health care plans. An Organization includes a provider sponsored health care
services organization (A.R.S. § 20-1051).

Statute outlines the scope and format of a policy with a Disability Insurer, Group Disability Insurer
or a Blanket Disability Insurer (Disability Insurers) (A.R.S. § 20-1342) & (A.R.S. § 20-1401).

Provisions

1. Asserts contracts entered into or renewed after January 1, 2021 between an optometrist and
a health insurer cannot require the optometrist to provide services to an enrollee based on a
fee set by the health insurer unless the service for which the fee applies is a covered service
under the enrollee's policy. (Sec. 1-4)

2. Specifies the ability of a health insurer to establish optometric benefits for services offered by
plans that are administered but not insured by the health insurer is not restricted. (Sec. 1-4)

3. Defines covered service as a service for which any reimbursement is available under a
subscription contract, an evidence of coverage or Disability Insurers policy without regard to
contractual limitations. (Sec. 1-4)

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

Initials Commerce

Attachment /

Fifty-fourth Legislature Commerce
Second Regular Session H.B. 2643

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2643
(Reference to printed bill)

1 Page 1, tine 5, after “A.” insert “EXCEPT AS PROVIDED IN SUBSECTION C OF THIS
2 SECTION,”

3 Line 7, after "NOT" insert ";

4 1."

5 Strike lines 12 through 15, insert:
6 “2. PROHIBIT AN OPTOMETRIST FROM OFFERING OR PROVIDING A VISION
7 SERVICE THAT IS NOT A COVERED SERVICE TO A COVERED INDIVIDUAL AT A FEE
8 DETERMINED BY THE OPTOMETRIST OR BY THE OPTOMETRIST AND THE COVERED
9

INDIVIDUAL.
10 3. REQUIRE AN OPTOMETRIST TO USE ONE OR MORE SPECIFIC VENDORS TO
1 REPLENISH THE OPTOMETRIST’S INVENTORY OF SPECTACLE LENSES AFTER THE
12 OPTOMETRIST DISPENSES THE OPTOMETRIST’S INVENTORY TO ELIGIBLE MEMBERS OF
13 THE VISION PLAN AS A COVERED VISION SERVICE.
14 B. THIS SECTION APPLIES TO AN ADMINISTRATOR PROVIDING THIRD-PARTY
15 ADMINISTRATION SERVICES OR A PROVIDER NETWORK FOR A VISION PLAN.
16 C. THIS SECTION DOES NOT RESTRICT THE ABILITY OF AN OPTOMETRIC
17 SERVICES ORGANIZATION TO ENTER INTO A CONTRACT FOR AN OPTOMETRIST TO
18 PARTICIPATE IN A DISCOUNT PROGRAM SPONSORED BY THE OPTOMETRIC SERVICE
19 CORPORATION FOR SERVICES THAT ARE NOT COVERED IF:
20 1. PARTICIPATION IN THE OPTOMETRIC SERVICE CORPORATION NETWORK IS NOT
21 CONTINGENT ON PARTICIPATION IN THE SPONSORED DISCOUNT PROGRAM.
22 2. THE OPTOMETRIC SERVICE CORPORATION OFFERS EQUAL TREATMENT TO AN
23 OPTOMETRIST WHO DOES NOT PARTICIPATE IN A SPONSORED DISCOUNT PROGRAM,
24 REGARDING:
25 (a) PROMOTIONAL TREATMENT. Attachment_&

Adopted vo # of Verbals

= Failed Withdrawn

Not Offered Analysts Initials. g2)
House Amendments to H.B. 2643

1 (b) MARKETING BENEFITS.

2 (c) MATERIALS.

3 (d) CONTRACT TERMS FOR PROVIDING A COVERED SERVICE.

4 D. NOTWITHSTANDING SUBSECTION C, PARAGRAPH 2, SUBDIVISION (d) OF THIS
5 SECTION, AN OPTOMETRIC SERVICE CORPORATION, WHEN PROVIDING A TYPICALLY
6 FORMATTED LIST OF OPTOMETRISTS IN THE OPTOMETRIC SERVICE CORPORATION
7 NETWORK, MAY IDENTIFY WHETHER AN OPTOMETRIST PARTICIPATES IN A DISCOUNT
8 PROGRAM FOR SERVICES NOT COVERED BY THE OPTOMETRIC SERVICE CORPORATION IF
9 ALL LISTS STATE THAT OTHER DISCOUNTS MAY BE AVAILABLE WITH INDIVIDUAL
10 OPTOMETRISTS,”

11 Retetter to conform

12 Page 1, line 26, after “A.” insert “EXCEPT AS PROVIDED IN SUBSECTION C OF THIS
13 SECTION,”

14 Line 28, after “NOT” insert “:

15 1.”

16 Strike lines 33 through 36, insert:

17 “2, PROHIBIT AN OPTOMETRIST FROM OFFERING OR PROVIDING A VISION
18 SERVICE THAT IS NOT A COVERED SERVICE TO A COVERED INDIVIDUAL AT A FEE
19 DETERMINED BY THE OPTOMETRIST OR BY THE OPTOMETRIST AND THE COVERED
20 INDIVIDUAL.

21 3. REQUIRE AN OPTOMETRIST TO USE ONE OR MORE SPECIFIC VENDORS TO
22 REPLENISH THE OPTOMETRIST’S INVENTORY OF SPECTACLE LENSES AFTER THE
23 OPTOMETRIST DISPENSES THE OPTOMETRIST’S INVENTORY TO ELIGIBLE MEMBERS OF
24 THE VISION PLAN AS A COVERED VISION SERVICE.

25 B. THIS SECTION APPLIES TO AN ADMINISTRATOR PROVIDING THIRD-PARTY
26 ADMINISTRATION SERVICES OR A PROVIDER NETWORK FOR A VISION PLAN.

27 C. THIS SECTION DOES NOT RESTRICT THE ABILITY OF A HEALTH CARE
28 SERVICES ORGANIZATION TO ENTER INTO A CONTRACT FOR AN OPTOMETRIST TO
29 PARTICIPATE IN A DISCOUNT PROGRAM SPONSORED BY THE HEALTH CARE SERVICES
30 ORGANIZATION FOR SERVICES THAT ARE NOT COVERED IF:

31 1, PARTICIPATION IN THE HEALTH CARE SERVICES ORGANIZATION NETWORK IS
32 NOT CONTINGENT ON PARTICIPATION IN THE SPONSORED DISCOUNT PROGRAM,

-?-
ou on DBD oO Fe CD MT

BD WW] PM MR MR PM MR] MW PY PY A DR Bw Be Be eB Re eS OR eRe
nF Oo Oo D4 DP HO SP WO HY KF DB YOY DN HD OT BP WH MW FH OS

House Amendments to H.B. 2643

2. THE HEALTH CARE SERVICES ORGANIZATION OFFERS EQUAL TREATMENT TO AN
OPTOMETRIST WHO DOES NOT PARTICIPATE IN A SPONSORED DISCOUNT PROGRAM,
REGARDING:

(a) PROMOTIONAL TREATMENT.

(b) MARKETING BENEFITS.

(c) MATERIALS.

(d) CONTRACT TERMS FOR PROVIDING A COVERED SERVICE.

D, NOTWITHSTANDING SUBSECTION C, PARAGRAPH 2, SUBDIVISION (d) OF THIS
SECTION, A HEALTH CARE SERVICES ORGANIZATION, WHEN PROVIDING A TYPICALLY
FORMATTED LIST OF OPTOMETRISTS IN THE HEALTH CARE SERVICES ORGANIZATION
NETWORK, MAY IDENTIFY WHETHER AN OPTOMETRIST PARTICIPATES IN A DISCOUNT
PROGRAM FOR SERVICES NOT COVERED BY THE HEALTH CARE SERVICES ORGANIZATION
IF ALL LISTS STATE THAT OTHER DISCOUNTS MAY BE AVAILABLE WITH INDIVIDUAL
OPTOMETRISTS.”

Reletter to conform
Page 2, line 5, after “A.” insert “EXCEPT AS PROVIDED IN SUBSECTION C OF THIS

SECTION,”

Line 7, after "NOT" insert “:

1.”

Strike lines 12 through 14, insert:

“2. PROHIBIT AN OPTOMETRIST FROM OFFERING OR PROVIDING A VISION
SERVICE THAT IS NOT A COVERED SERVICE TO A COVERED INDIVIDUAL AT A FEE
DETERMINED BY THE OPTOMETRIST OR BY THE OPTOMETRIST AND THE COVERED
INDIVIDUAL.

3. REQUIRE AN OPTOMETRIST TO USE ONE OR MORE SPECIFIC VENDORS TO
REPLENISH THE OPTOMETRIST’S INVENTORY OF SPECTACLE LENSES AFTER THE
OPTOMETRIST DISPENSES THE OPTOMETRIST’S INVENTORY TO ELIGIBLE MEMBERS OF
THE VISION PLAN AS A COVERED VISION SERVICE.

B. THIS SECTION APPLIES TO AN ADMINISTRATOR PROVIDING THIRD-PARTY
ADMINISTRATION SERVICES OR A PROVIDER NETWORK FOR A VISION PLAN.

C. THIS SECTION DOES NOT RESTRICT THE ABILITY OF A DISABILITY INSURER
TO ENTER INTO A CONTRACT FOR AN OPTOMETRIST TO PARTICIPATE IN A DISCOUNT

-3-

House Amendments to H.B. 2643

PROGRAM SPONSORED BY THE DISABILITY INSURER FOR SERVICES THAT ARE NOT

—

2 COVERED IF:

3 1. PARTICIPATION IN THE DISABILITY INSURER NETWORK IS NOT CONTINGENT
4 ON PARTICIPATION IN THE SPONSORED DISCOUNT PROGRAM,

5 2. THE DISABILITY INSURER OFFERS EQUAL TREATMENT TO AN OPTOMETRIST
6 WHO DOES NOT PARTICIPATE IN A SPONSORED DISCOUNT PROGRAM, REGARDING:

7 (a) PROMOTIONAL TREATMENT.

8 (b) MARKETING BENEFITS.

9 (c) MATERIALS.

10 (d) CONTRACT TERMS FOR PROVIDING A COVERED SERVICE.

11 D. NOTWITHSTANDING SUBSECTION C, PARAGRAPH 2, SUBDIVISION (d) OF THIS
12 SECTION, A DISABILITY INSURER, WHEN PROVIDING A TYPICALLY FORMATTED LIST OF
13 OPTOMETRISTS IN THE DISABILITY INSURER NETWORK, MAY IDENTIFY WHETHER AN
14 OPTOMETRIST PARTICIPATES IN A DISCOUNT PROGRAM FOR SERVICES NOT COVERED BY
15 THE DISABILITY INSURER, PROVIDED THAT ALL LISTS STATE THAT OTHER DISCOUNTS
16 MAY BE AVAILABLE WITH INDIVIDUAL OPTOMETRISTS.”

17 Reletter to conform

18 Page 2, line 25, after “A.” insert “EXCEPT AS PROVIDED IN SUBSECTION C OF THIS
19 SECTION,”

20 Line 27, insert after “NOT” insert “:

21 1.”

22 Strike lines 32 through 34, insert:

23 “2. PROHIBIT AN OPTOMETRIST FROM OFFERING OR PROVIDING A VISION
24 SERVICE THAT IS NOT A COVERED SERVICE TO A COVERED INDIVIDUAL AT A FEE
25 DETERMINED BY THE OPTOMETRIST OR BY THE OPTOMETRIST AND THE COVERED
26 INDIVIDUAL.

27 3. REQUIRE AN OPTOMETRIST TO USE ONE OR MORE SPECIFIC VENDORS TO
28 REPLENISH THE OPTOMETRIST’S INVENTORY OF SPECTACLE LENSES AFTER THE
29 OPTOMETRIST DISPENSES THE OPTOMETRIST’S INVENTORY TO ELIGIBLE MEMBERS OF
30 THE VISION PLAN AS A COVERED VISION SERVICE.

31 B, THIS SECTION APPLIES TO AN ADMINISTRATOR PROVIDING THIRD-PARTY
32 ADMINISTRATION SERVICES OR A PROVIDER NETWORK FOR A VISION PLAN.

-4-
House Amendments to H.B. 2643

1 C. THIS SECTION DOES NOT PROHIBIT THE ABILITY OF A GROUP DISABILITY
2 INSURER TO ENTER INTO A CONTRACT FOR AN OPTOMETRIST TO PARTICIPATE IN A
3 DISCOUNT PROGRAM SPONSORED BY THE GROUP DISABILITY INSURER FOR SERVICES
4 THAT ARE NOT COVERED IF:

5 1, PARTICIPATION IN THE GROUP DISABILITY INSURER NETWORK IS NOT
6 CONTINGENT ON PARTICIPATION IN THE SPONSORED DISCOUNT PROGRAM.

7 2. THE GROUP DISABILITY INSURER OFFERS EQUAL TREATMENT TO AN
8 OPTOMETRIST WHO DOES NOT PARTICIPATE IN A GROUP DISABILITY INSURER
9 SPONSORED DISCOUNT PROGRAM, REGARDING:

10 (a) PROMOTIONAL TREATMENT.

11 (b) MARKETING BENEFITS.

i2 (c) MATERIALS.

13 (d) CONTRACT TERMS FOR PROVIDING A COVERED SERVICE.

14 D. NOTWITHSTANDING SUBSECTION C, PARAGRAPH 2, SUBDIVISION (d) OF THIS
15 SECTION, A GROUP DISABILITY INSURER, WHEN PROVIDING A TYPICALLY FORMATTED
16 LIST OF OPTOMETRISTS IN THE GROUP DISABILITY INSURER NETWORK, MAY IDENTIFY
17 WHETHER AN OPTOMETRIST PARTICIPATES IN A DISCOUNT PROGRAM FOR SERVICES NOT
18 COVERED BY THE GROUP DISABILITY INSURER PROVIDED THAT ALL LISTS STATE THAT
19 OTHER DISCOUNTS MAY BE AVAILABLE WITH INDIVIDUAL OPTOMETRISTS.”

20 Reletter to conform

21 Page 2, line 43, after “A.” insert “EXCEPT AS PROVIDED IN SUBSECTION C OF THIS
22 SECTION,”

23 Line 45, after “NOT” insert “:

24 1.”

25 Page 3, strike lines 5 through 8, insert:

26 “2. PROHIBIT AN OPTOMETRIST FROM OFFERING OR PROVIDING A VISION
27 SERVICE THAT IS NOT A COVERED SERVICE TO A COVERED INDIVIDUAL AT A FEE
28 DETERMINED BY THE OPTOMETRIST OR BY THE OPTOMETRIST AND THE COVERED
29 INDIVIDUAL.

30 3. REQUIRE AN OPTOMETRIST TO USE ONE OR MORE SPECIFIC VENDORS TO
31 REPLENISH THE OPTOMETRIST’S INVENTORY OF SPECTACLE LENSES AFTER THE

yu ON DD TO F&F WD MD &

M RP BR PR PM FRR i i kh a ie ee
oT Fe WOW MO RF DOD BO DO NY DM TN BP WH HTH KF OC

House Amendments to H.B, 2643

OPTOMETRIST DISPENSES THE OPTOMETRIST’S INVENTORY TO ELIGIBLE MEMBERS OF
THE VISION PLAN AS A COVERED VISION SERVICE.

B. THIS SECTION APPLIES TO AN ADMINISTRATOR PROVIDING THIRD-PARTY
ADMINISTRATION SERVICES OR A PROVIDER NETWORK FOR A VISION PLAN,

C. THIS SECTION DOES NOT PROHIBIT THE ABILITY OF A BLANKET DISABILITY
INSURER TO ENTER INTO A CONTRACT FOR AN OPTOMETRIST TO PARTICIPATE IN A
DISCOUNT PROGRAM SPONSORED BY THE BLANKET DISABILITY INSURER FOR SERVICES
THAT ARE NOT COVERED IF:

1, PARTICIPATION IN THE BLANKET DISABILITY INSURER NETWORK IS NOT
CONTINGENT ON PARTICIPATION IN THE SPONSORED DISCOUNT PROGRAM.

2. THE BLANKET DISABILITY INSURER OFFERS EQUAL TREATMENT TO AN
OPTOMETRIST WHO DOES NOT PARTICIPATE IN A BLANKET DISABILITY INSURER
SPONSORED DISCOUNT PROGRAM, REGARDING:

(a) PROMOTIONAL TREATMENT.

(b) MARKETING BENEFITS.

(c) MATERIALS.

(d) CONTRACT TERMS FOR PROVIDING A COVERED SERVICE.

D. NOTWITHSTANDING SUBSECTION C, PARAGRAPH 2, SUBDIVISION (d) OF THIS
SECTION, A BLANKET DISABILITY INSURER, WHEN PROVIDING A TYPICALLY FORMATTED
LIST OF OPTOMETRISTS IN THE GROUP DISABILITY INSURER NETWORK, MAY IDENTIFY
WHETHER AN OPTOMETRIST PARTICIPATES IN A DISCOUNT PROGRAM FOR SERVICES NOT
COVERED BY THE BLANKET DISABILITY INSURER PROVIDED THAT ALL LISTS STATE
THAT OTHER DISCOUNTS MAY BE AVAILABLE WITH INDIVIDUAL OPTOMETRISTS.”

Refetter to conform

Amend title to conform

JEFF WENINGER

Z2643WENINGER
02/10/2020
09:23 AM

H; PRB/1s

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2643

DATE February 11, 2020 MOTION: D PA
PASS AYE NAY PRESENT | ABSENT

Biasiucci /

Butler WA

Chavez VA

Epstein S

Kern WA

Meza /

Roberts WA A

Grantham, Vice-Chairman V4 ye

Weninger, Chairman YA

G 2 @) e

APPROVED: COMMITTEE SECRETARY

UM a>.

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

ATTACHMENT. 7

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2380: product liability; civil action; limitation.
Sponsor: Representative Blackman, LD 6
Committee on Commerce

Overview
Allows a product liability lawsuit to commence only under defined circumstances.

History
In a product liability action where the manufacturer refuses to accept a tender of defense from the

seller, the manufacturer must indemnify the seiler for any judgement against the seller. The
manufacturer must also reimburse the seller for reasonable attorney fees and costs in defending
the action. The manufacturer is not required to indemnify or reimburse the seller if either: 1) the
seller had knowledge of the defect in the product; or 2) the seller altered, modified or installed the
product and the alteration, modification or installation was: a) a substantial cause of the incident
giving rise to the action; b) not authorized or requested by the manufacturer; and c) not performed
in compliance with the directions or specifications of the manufacturer (A.R.S. § 12-684).

A product liability action is defined as any action brought against a manufacturer or seller of a
product for damages for bodily injury, death or property damage caused by or resulting from the
manufacture, construction, design, formula, installation, preparation, assembly, testing,
packaging, labeling, sale, use or consumption of any product, the failure to warn or protect against
a danger or hazard in the use or misuse of the product or the failure to provide proper instructions
for the use or consumption of any product (A.R.S. § 12-681).

Provisions
1. Asserts a product liability action against a seller that is not also a manufacturer of the product
may be commenced or maintained only if one or more of the following apply:

a) The seller had knowledge of the defect in the product;

b) The seller altered, modified or installed the product and the alteration, modification or
installation was:

i. A substantial cause of the incident giving rise to the action;
ii. Not authorized or requested by the manufacturer; and
iii. Not performed in compliance with the directions or specifications of the manufacturer;

c) The seller provided the plans or specifications for the manufacture or preparation of the
product, the plans or specifications were a substantial cause of the product's alleged
defect and the product was manufactured in compliance with and according to the seller's
plans or specifications;

d) The seller resold the product after the product's first sale for use or consumption, the
product was not in substantially the same condition as it was at the time the product left
the manufacturer's possession and the change in the product's condition was a substantial
cause of the incident giving rise to the action;

e) The seller failed to exercise reasonable care in assembling, maintaining or repairing the
product at issue or in conveying to the product user or consumer the manufacturer's labels,

C1 Prop 105 (45 votes) [ Prop 108 (40 votes} (Emergency (40 votes) 0 Fiscal Note

Initials PRB Commerce

Attachment /0
warnings or instructions and the failure was a substantial cause of the incident giving rise
to the action;

f) The seller made an express warranty regarding the product independent of any express
warranty made by a manufacturer regarding the product, the product failed to conform to
the seller's independent express warranty and the failure of the product to conform to the
seller's independent express warranty was a substantial cause of the incident giving rise
to the action;

g) The manufacturer cannot be identified; or

h) The manufacturer has been adjudicated bankrupt and a judgment is not otherwise
recoverable from the assets of the manufacturer's bankruptcy estate. (Sec. 1)

2. Stipulates a manufacturer must indemnify and reimburse a seller that is not also a
manufacturer of the product at issue for reasonable attorney fees and costs incurred by the
seller for any judgment rendered against the seller in any product liability action, where the
manufacturer refuses to accept a tender of defense, unless the action was the result of one
of the defined circumstances that allow for the action to be commenced or maintained against
the seller. (Sec. 1)

3. Makes technical changes. (Sec. 1)

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO, __HB 2380

DATE February 11, 2020 MOTION: pr

PASS AYE NAY PRESENT | ABSENT
Biasiucci A
Butler J
Chavez Y
Epstein S
Kern JS
Meza i
Roberts vA ;
Grantham, Vice-Chairman /
Weninger, Chairman /
5 | y é
APPROVED: COMMITTEE SECRETARY
Way —

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

ATTACHMENT _//

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session
House: HHS DP 9-0-0-0

HB 2529: nonretaliation policies; health care institutions
Sponsor: Representative Shah, LD 24
Committee on Commerce

Overview
Specifies that a health care institution or any of its third-party contractors is prohibited from
retaliatory actions against a health care provider for making a report.

History
Current law requires a licensed health care institution to adopt a procedure for reviewing reports

made in good faith by a health professional concerning an activity, policy or practice that the
professional reasonably believes:

a) Violates professional standards of practice or is against the law; and

b) Poses a substantial risk to the health, safety or welfare of a patient (A.R.S. § 36-450.01).

Licensed health care institutions must adopt policies that prohibit retaliatory actions against a
health professional who in good faith: 1) makes a report to the institution relating to an unlawful
activity, policy or practice; and 2) after providing the institution with reasonable opportunity to
address the report, provides information to a private health care accreditation organization or
governmental entity concerning the activity, policy or practice. There is a rebuttable presumption
that any termination or other adverse action that occurs more than 180 days after the date of the
report is not a retaliatory action (A.R.S. 36-§ 450.02).

Retaliatory action is defined as a termination of or other adverse action against a health
professional's employment taken by a health care institution because the professional has made
a report which address concerns to an unlawful activity, policy or practice (A.R.S. § 36-450),

Provisions
1. Specifies that a health care institution or any of its third-party contractors is prohibited from
retaliatory actions against a health professional for making a report. (Sec. 1)

2. Defines third-party contractor. (Sec. 1)

C1 Prop 105 (45 votes) C] Prop 108 (40 votes) (4 Emergency (40 votes) Fiscal Note

Initials MCL Commerce

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2529
DATE February 11, 2020 MOTION: D> fp
PASS AYE NAY PRESENT | ABSENT

Biasiucci J S

Butler WA

Chavez VA

Epstein /

Kern J

Meza WA

Roberts /
Grantham, Vice-Chairman J

Weninger, Chairman va

C ( ( (
APPROVED: COMMITTEE SECRETARY
LE

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

ATTACHMENT. /.3

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2501: commerce authority; adult workforce education.
Sponsor: Representative Carroli, LD 22
Committee on Commerce

Overview
Establishes the Aduit workforce Diploma Program (Program) to assist a person in earning a high
school diploma and developing employability and career and technical skills.

History
Laws 2011, 2nd Special Session, Chapter 1, created the Arizona Commerce Authority (ACA) and

outlined its duties and responsibilities. The ACA facilitates the beneficial economic growth and
development of this state and promotes prosperity through the development and protection of the
legitimate interests of Arizona business, industry and commerce within and outside this state
(Laws 2018, Chapter 66).

Provisions

Adult Workforce Diploma Program (Sec. 1)

1. Establishes, within the Arizona Commerce Authority (ACA), the Program to assist a person
who is at least 21 years of age in earning a high school diploma and developing critical
employability and career and technical skills to prepare for employment.

2. Directs the ACA, prior to August 15 of each year, to issue a request for participation
qualifications for Program providers.

3. Outlines Program provider qualifications.

4. Requires the ACA, prior to October 15 of each year, to approve Program providers and place
providers on an approved Program provider list.
a. Requires providers to enroll student prior to November 15 of each year.
b. Specifies providers maintain approval status unless the provider fails to meet performance
standards.

5. Instructs the ACA to pay providers for each student who completes milestones as follows:

a. $250 for each completed half unit of high school credit.

b. $250 for each earned employability skills certification.

c. $250 for each earned industry-recognized credential that requires up to 50 hours of
training.

d. $500 for each earned industry-recognized credential that requires at least 50 hours but
not more than 100 hours of training.

e. $750 for each earned industry-recognized credential that requires more than 100 hours of
training.

f. $1,000 for each earned high school diploma.

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

Initials _ Commerce

Attachment / 4
Requires providers to submit monthly invoices to the ACA for milestones met in the previous

month.

a. The ACA must pay providers in the order in which the invoices are submitted.

b. The ACA must provide written updates to providers which includes total dollars paid and
estimated number of enrollments still available for the year.

7. Requires providers, prior to July 15 of each year, to report specified data to the ACA.

Instructs the ACA to review data from each approved Program provider to ensure that each

provider is achieving minimum Program performance standards, including:

10.

11.

12.
13.

a. A graduation rate of at least 50%; and
b. Acost per graduate of $7,000 or less.

Stipulates a provider who fails to meet the minimum Program performance standards is placed
on probationary status and is removed from the approved list if the provider fails to meet the
standards for two consecutive years.

Adult Workforce Diploma Program Fund (Sec. 1)

Establishes the Program Fund (Fund) which consists of legislative appropriations, gifts,

grants, and other donations.
a. Specifies the Fund is administered by the chief executive officer and Fund monies are

continuously appropriated.
Appropriates $5,000,000 from the state Genera! Fund each fiscal year to the Fund.
Miscellaneous (Sec. 1)
Terminates the Program July 1, 2030.
Defines pertinent terms.

Initials Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2501

DATE February 11, 2020 MOTION: D f
PASS AYE NAY PRESENT | ABSENT

Biasiucci Y

Butler V4

Chavez J

Epstein J ,

Kern VA

Meza WA

Roberts J

Grantham, Vice-Chairman Va

Weninger, Chairman VA

(| 0 g

APPROVED: COMMITTEE SECRETARY

WOE Ga

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

ATTACHMENT /3_

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2739: liquor omnibus
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Makes various changes to statute relating to alcoholic beverages.

History
The Department of Liquor Licenses and Control (Department), which consists of the State Liquor

Board and the Office of the Director (Director) of the Department regulates the manufacture,
distribution and sale of liquor in this state through the issuance of 21 license types or series. A
separate license is required for each specific type of business and is issued only after a
satisfactory showing of the capability, qualifications and reliability of the applicant. With the
exception of wholesaler, producer, government or club licensees, issuance also requires a
satisfactory showing that the public convenience and best interest of the community will be
substantially served by the issuance of the license (A.R.S. § 4-203).

Statute outlines conditions for issuing a microbrewery license located on the same land as a farm
winery which includes that the licenses must be held by different persons and that the
microbrewery and the farm winery be located in separate buildings (A.R.S. § 4-205.09).

Current statute exempts beer that is produced for personal or family use that is not for sale from
laws governing alcoholic beverages (A.R.S. § 4-226).

An employee of a retail licensee is prohibited during their working hours to give, purchase, accept
or consume liquor, except under conditions outlined in statute (A.R.S. § 4-244).

Provisions
1. Requires the Director to relieve a licensee from a prior license reversion, unless a reverted
license has been reissued, if a request is filed no later than two years after the reversion date.

(Sec. 1)

2. Allows the Director to issue a microbrewery license and a farm winery license, both located
on the same land, to the same bona fide educational institution for the purposes of post-
secondary educational instruction. (Sec. 2)

3. Increases the cap that a licensed craft distiller may produce in a year for sale and delivery to
an on-sale and off-sale retailer from 1,189 gallons to 3,566 gallons. (Sec. 3)

4. Prohibits a joint premises licensee from allowing a person under the iegal drinking age who is
not accompanied by a spouse, parent, grandparent or legal guardian of legal drinking age,
rather than any adult, to remain in the area of the joint premises. (Sec. 4)

5. Specifies a licensee is not responsible to protect the safety of an individual entering or
remaining on the premises to disrupt or damage the premises or to cause harm to another
person. (Sec. 5)

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

Initials _ Commerce

Attachment vi :
6. Exempts aiccholic beverages that are commercially produced by a duly licensed producer
from laws and rules relating to the Department of Health Services and Pure Food Control.
a) Defines alcoholic beverage and commercially produced. (Sec. 6)

7. Exempts wine that is produced for personal or family use that is not for sale from laws
governing alcoholic beverages. (Sec. 7)

8. Increases the amount of beer that may be provided as samples to retail consumers at an on-
sale premises from 12 ounces to 16 ounces. (Sec. 8)

9. Allows a retailer to order, purchase or receive a spirituous liquor from a licensed craft distiller
that produces not more than 3,566 gallons. (Sec. 9)

10. Allows a representative of a producer or wholesaler that is participating at a special event to
consume small amounts of the products on the premises of the event for quality control
purposes. (Sec. 10)

11. Stipulates a licensee is not in violation of law if:
a) A customer removes or tampers with the locking device on a bottle delivered for bottle
service and pours their own drink without the knowledge of the retailer; and
b) The licensee installs a functioning locking device or removes the bottle and lock when the
licensee becomes aware of the removal or tampering of the locking device. (Sec. 10)

12. Makes technical changes. (Sec. 2, 3, 7, 8, 9, 10)

Initials _ Commerce

Fifty-fourth Legislature Commerce
Second Regular Session H.B. 2739

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H,B. 2739
(Reference to printed bill)

Page 12, strike lines 28 through 30, insert “THE DUTY TO PROTECT A CUSTOMER OR
OTHER PERSON ON THE PREMISES DOES NOT LIMIT THE LICENSEE FROM USING
REASONABLE INTERVENTION, RESTRAINT OR REMOVAL OF A PERSON FROM THE PREMISES
TO PREVENT THAT PERSON FROM INJURING OTHER PERSONS ON THE PREMISES OR
DAMAGING OR DISRUPTING THE PREMISES."

Amend title to conform

JEFF WENINGER

2739WENINGER
02/10/2020
10:42 AM

H: PRB/1s

Attachment ST

“Adopted J

_ Failed

Not Offered Analysts Initia
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fourth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2739
DATE February 11, 2020 MOTION: D er ft
PASS AYE NAY PRESENT | ABSENT

Biasiucci VA

Butler J

Chavez J

Epstein ; VA

Kern vo

Meza VA

Roberts . WA
Grantham, Vice-Chairman 4

Weninger, Chairman /

Li o |]

APPROVED: COMMITTEE SECRETARY

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

ATTACHMENT / 5
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2628: health care insurance; amendments
Sponsor: Representative Bolick, LD 20
Committee on Commerce

Overview
Makes various changes to statute governing Health Care Insurers.

History
Hospital, medical, dental and optometric service corporations is defined as corporations organized

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

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

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

Provisions
Hospital, Medical, Dental, and Optometric Service Organizations

1. Specifies laws governing insurance company holding systems applies to all service
corporations. (Sec. 5)

2. Allows a corporation to pay any officer or employee any salary, compensation or emolument
without authorization from the board of directors of the corporation. (Sec. 6)

3. Removes language prohibiting a corporation from influencing the subscriber in their choice of
hospital, physician, registered nurse, dentist or optometrist. (Sec. 7)

4. Removes language requiring a hospital and medical service corporation to pay AHCCCS for
paid covered items or services. (Sec. 8)

Health Care Services Organizations
5. Removes language outlining prohibited practices by a person. (Sec. 9)

Removes language requiring a health care services organization to pay AHCCCS for paid
covered items or services. (Sec. 10)

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

Initials Commerce

Attachment__/
10.
11.
12.

13.

14.

15.

16.

17.

18.

19.

20.
21.

22.
23.

Requires a health care services organization to semiannually, rather than monthly, submit a
report to the Department of Insurance (DOI) a list of all major provider contracts that have
been terminated during the previous six months.

a. Defines major provider. (Sec. 11)

Disability and Group and Blanket Disability Insurers

Removes language requiring an insurer to pay AHCCCS for paid covered items or services.
(Sec. 12, 13)

Group Health Plan

Removes language requiring a health care services organization to pay AHCCCS for paid
covered items or services. (Sec. 14)

Accountable Health Plans
Makes a conforming change. (Sec. 15)
Modifies the definition of creditable coverage. (Sec. 15)

Specifies statute governing premium rates does not apply if a small employer obtains a health
benefits plan that is complies with federal law. (Sec. 16)

Repeals laws relating to prohibited mandatory coverage of a basic health benefit plan and an
accountable health plan submission of claims by electronic means. (Sec. 17)

Utilization Review

Exempts a person from specified laws relating to certification requirements provided certain
criteria are met. (Sec. 18)

Allows a provider or enrollee to appeal a denial of a formulary exception for a plan covered by
federal law through the process prescribed in the federal rule. (Sec. 19)

Requires a utilization review agent to file a specified notice regardless if the agent is exempt
from certification requirements. (Sec. 20)

Requires a health care insurer to provide access to a copy of the information packet, which
explains the appeal process, on the health care insurer's website rather than to the member.
(Sec. 27)

Instructs a utilization review agent to telephonically provide and mail the member a notice of
an adverse decision as well as providing the member a notice of a decision, including criteria
used and clinical reasons for such decision. (Sec. 22)

Requires the DOI to adopt rules establishing criteria and factors to evaluate when determining
whether an independent review organization has demonstrated bias toward a health care

insurer or provider.
a. Instructs DOI to terminate the services of any biased organization. (Sec. 23)

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

Specifies the term person includes a service corporation and a health care services
organization. (Sec. 2)

Clarifies the timely payment of a clean claim. (Sec. 3)

Specifies statute relating to assignment of benefits applies to a hospital and medical service
corporation. (Sec. 4)

Initials Commerce
24, Instructs DOI to:
a. Adopt rules that substantially conform to the current version of the National Association of
insurance Commissioners Unfair Claim Settlement Practices Model Act; and
b. Amend the rules governing coordination of benefits. (Sec. 24)

25. Exempts DOI from rulemaking for one year. (Sec. 24)

Initials Commerce
Fifty-fourth Legislature Commerce
Second Regular Session H.B. 2628

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2628
(Reference to printed bill)

1 Page 1, strike lines 30 through 45

2 Page 2, strike jines 1 through 27

3 Renumber to conform

4 Page 3, line 7, strike “article” insert "ARTICLES 8 AND"

5 Strike lines 15 and 16, insert:

6 "Sec. 5. Repeal

7 Section 20-827, Arizona Revised Statutes, is repealed.”
8 Renumber to conform

9 Page 4, strike lines 18 through 44
10 Page 5, strike tines 1 through 6

11 Renumber to conform

12 Page 6, strike lines 1 through 33

13 Renumber to conform

14 Line 39, strike “SEMIANNUALLY" insert "QUARTERLY"; strike "MAJOR" —
15 Line 40, strike "SIX" insert "THREE"

16 Line 42, strike "HOSPITAL, HOSPITAL SYSTEM, PROVIDER GROUP OR"
17 Page 7, strike lines 25 through 45

18 Strike page 8

19 Page 9, strike lines 1 through 27

20 Renumber to conform

21 Page 17, line 2, strike “CAN BE" insert "WAS"; strike "UNDER" insert "PURSUANT
22 TO"

23 Page 19, strike lines 8 through 45

Attachmente2 0

| Adopted nA

eran

Failed

Not Offered Analysts Initials
RD Oo BP HO DM Ff

House Amendments to H.B. 2628

Strike page 20

Page 21, strike lines 1 through 25
Renumber to conform

Page 23, strike lines 14 through 45
Strike page 24

Amend title to conform

Z2628WENINGER. docx
02/07/2020

3:10 PM

C: PP

JEFF WENINGER

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2628
DATE February 11, 2020 motion: DPA
PASS AYE NAY PRESENT | ABSENT

Biasiucci WA ;

Butler Y

Chavez /

Epstein Y

Kern J

Meza WA

Roberts V4

Grantham, Vice-Chairman /

Weninger, Chairman J

7 a 0

APPROVED: COMMITTEE SECRETARY

hf pre A —
JEFF WENINGER, Chairman

TRAVIS W. GRANTHAM, Vice-Chairman

ATTACHMENT <4 }

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2498: unmanned aircraft study committee
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Establishes the five-member Unmanned Aircraft Study Committee (Committee).

History
Current law states it is unlawful for a person to operate a model aircraft or a civil unmanned aircraft

if the operation: 1) is prohibited by a federal faw or regulation that governs aeronautics, including
federal aviation administration regulations; or 2) interferes with a law enforcement, firefighter or
emergency services operation. A person guilty for the unlawful operation is subject to a Class 1
misdemeanor.

Furthermore, it is unlawful for a person to operate or use an unmanned aircraft or unmanned
aircraft system to intentionally photograph or loiter over or near a critical facility in the furtherance
of any criminal offense. A person found guilty for the unlawful operation or use is subject to a
Class 6 felony (A.R.S. § 13-3729).

Unmanned aircraft is defined as an aircraft, including an aircraft commonly known as a drone,
that is operated without the possibility of direct human intervention from within or on the aircraft
(A.R.S. § 13-3729).

Provisions

1. Establishes the Committee which consists of the following five members of the House of
Representatives, who are appointed by the Speaker:
a) Three members from the political party that is in the majority, and
b) Two members from the political party that is in the minority. (Sec. 1}

2. Requires the Speaker of the House of Representatives to designate one of the members as
the chairperson of the Committee. (Sec. 1}

3. Instructs the Committee to:

a) Meet as often as the chairperson deems necessary;

b) Identify and study the beneficial uses of unmanned aircraft;

c) Examines the economic opportunities for the use of unmanned aircraft;

d) Review actions taken by the federal government regarding the regulation of the general
operation of unmanned aircraft for commercial use; and

e) Submit a report regarding the Committee's findings and recommendations by December
31, 2020 to the Speaker of the House of Representatives and to provide a copy of the
report to the Secretary of State. (Sec. 1)

4. Terminates the Committee October 1, 2021. (Sec. 1)

C} Prop 105 (45 votes) {1 Prop 108 (40 votes) © Emergency (40 votes) 4 Fiscal Note

initials _ Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2498

DATE February 11, 2020 moTION: DY
PASS AYE NAY PRESENT | ABSENT

Biasiucci WA

Butler W

Chavez J

Epstein J

Kern VA

Meza J

Roberts ; Va

Grantham, Vice-Chairman WA

Weninger, Chairman J

gy 0 | 0 |

APPROVED: COMMITTEE SECRETARY

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

ATTACHMENT. .2 3
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature
Second Regular Session

HB 2453: DHS; exemption; certain foods; wineries
Sponsor: Representative Griffin, LD 74
Committee on Commerce

Overview
Exempts commercially prepackaged food and drinks served at a liquor licensed establishment

from certain Department of Health Services (DHS) rules governing quality and health assurance.

History
The director (Director) of DHS is statutorily required, by rule, to prescribe reasonably necessary

measures to ensure that all food or drink provided for consumption is free from unwholesome,
poisonous or other foreign substances, including filth, insects or disease-causing organisms.
Additionally, the rules must prescribe minimum standards for sanitary facilities and conditions that
must be maintained in any warehouse, restaurant or other premises.

Statute outlines certain food or drinks that are exempt, which includes food or drinks that are:

a) Not potentially hazardous and prepared in a kitchen of a private home for occasional sale or
distribution for noncommercial purposes;

b) Offered at a child care facility and limited to commercially prepackaged food that is not
potentially hazardous and whole fruits and vegetables that are washed and cut on-site for
immediate consumption; and

c) Offered at locations that sell only commercially prepackaged food or drink that is not
potentially hazardous. (A.R.S. § 36-136)

Provisions

1. Requires the Director to exempt commercially prepackaged food from rules that prescribe
measures to ensure all food is free from poisonous substances and disease-causing
organisms provided the food is:
a. Not potentially hazardous; and
b. Served at a location where spirituous liquor, wine or beer is produced. (Sec.1)

2. Asserts commercially prepackaged food that is not potentially hazardous is exempt until DHS
adopts exemptions by rule as required by law. (Sec. 1)

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

Initials _ Commerce

Attachment AY. ;
oD ON DMD OM B® w mw BE

Commerce

Fifty~fourth Legislature
H.B. 2453

Second Regular Session

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2453
(Reference to printed bil?)

Page §, line-5, strike "SERVED ON THE PREMISES WHERE”; after "BEER" insert “THAT”
Line 6, after "PRODUCED" insert "ON THE PREMISES"; strike the first "THAT IS"
Line 7, after "HAZARDOUS" insert "AND THAT IS SERVED ON THOSE PREMISES”

Page 8, line 17, strike "FOOD IS EXEMPT”

Strike line 18
Line 19, strike "PREMISES WHERE": after "BEER" insert “THAT"; after “PRODUCED”

insert "ON THE PREMISES"; strike "THE FOOD IS™
Line 20, after "HAZARDOUS" insert “AND THAT IS SERVED ON THOSE PREMISES IS

EXEMPT FROM THE RULES PRESCRIBED IN SUBSECTION I OF THIS SECTION"

Amend title to conform
JEFF WENINGER

Z453WENINGER
02/07/2020
11:43 “AM”

C: mh

Adopted
Failed
Not Offered Analysts

a

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO, HB 2453
DATE February 11, 2020 MOTION: D Pf
PASS AYE NAY PRESENT | ABSENT

Biasiucci A

Butler J

Chavez JS

Epstein VA

Kern V4

Meza J

Roberts Va
Grantham, Vice-Chairman 44

Weninger, Chairman J

% D D l
APPROVED: COMMITTEE SECRETARY
Cre, _——

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

ATTACHMENT__=2
Board of Supervisors BRUCE BRACKER

December 18, 2019

The Honorable Gail Griffin
Representative

Arizona House of Representatives
1700 W, Washington St.

Phoenix AZ 85007

Dear Representative Griffin,

On behalf of the wine producers in Santa Cruz County, I write to express my_s
efforts to modify Chapter 1-201 of the adopted State Health Code that currently
as a food establishment. The clarification of the health code requirements of wineries, breweries,
and distilleries will exempt their production spaces and tasting rooms (serving only beverages
produced on-site) from costly and unfair regulations,

Wine production does not have the same health risks as preparing food and should not have to
follow the same health codes as a restaurant or food-preparation establishment. Providing an
exception for wine production spaces and wine tasting rooms ensures proper and fair regulation
while promoting the growth of our wineries.

The wine producing industry in Santa Cruz County has emerged as a year-round attraction for
visitors in addition to producing high quality wines that are now being served all over Arizona
and other parts of the nation. These efforts will help ensure that this blossoming industry
remains cost-competitive, will continue to act as magnet for tourism and continue to create jobs
in our community.

I thank you for the consideration you give to this request.

Sincerely

Bruce Bracker
Chairman
Santa Cruz County Board of Supervisors

Attachment Xx /

Santa Cruz County Complex
2150 N. Congress Drive e P.O, Box 1150 « Nogales, Arizona 85624
(520) 375-7812 e FAX (520) 761-7843 e TDD (520) 375-7934

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