Arizona House of Representatives Committee on Commerce Report of Regular Meeting for March 25, 2025

Summary

Report of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-seventh Legislature, First Regular Session, on Tuesday, March 25, 2025. It records the meeting as convened at 2:16 P.M. and adjourned at 6:08 P.M., with Representative Weninger as Chairman and Representative Way as Vice-Chairman. The report covers an agenda, a Request to Speak report, a committee attendance report and committee action on bills SB1024, SB1057, SB1087, SB1094, SB1145, SB1182, SB1229, SB1235, SB1353, SB1494 and SB1535. The Request to Speak entries list supporters and opponents of each bill, with written comments on SB1024 (state agencies; payments; cryptocurrency) and SB1094 (business; discrimination prohibition; social criteria).

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“Arizona House of Representatives Committee on Commerce Report of Regular Meeting for March 25, 2025.” Original at www.azleg.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/committee-5d87109e839642c6/, SHA-256 f1a4b8e6d411d0997bac10e366d0e3945c854ec1f3c3ff23666f27f693e72ede.

Full text

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

COMMITTEE ON COMMERCE
Report of Regular Meeting
Tuesday, March 25, 2025
House Hearing Room 5 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR

Convened 2:16 P.M.
Adjourned 6:08 P.M.

Members Present

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
SB1024 DP
SB1182. DP
SB1235 DPA
SB1229 DPA
SB1494. DPA
SB1535 DPA
SB1094 DP
SB1087 DP
SB1353. DPA
SB1057. DPA/SE
SB1145 DPA

RECEIVED

CHIEF CLERKS OFFICE
Members Absent MAR 26 2025
Vote Attachments
6-4-0-0 4,5
10-0-0-0 6,7
9-0-1-0 8,9,10
5-4-1-0 1L,12,13,14,15
8-2-0-0 16,17,18
6-3-0-1 19,20,21
6-3-0-1 22,23
5-3-0-2 24,25
6-3-0-1 26,27,28
6-2-1-1 29,30,31
7-1-1-1 32,33,34
Ml, haley,

Abby Selvey, Commijftée | Secretary

March 26, 2025

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

COMMITTEE ON COMMERCE
March 25, 2025
REVISED #3- 3/24/25 REVISED #3- 3/24/25

Cony: 2:16 PM)
Adjrn: 6:08 PM

REVISED #3- 3/24/25

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - First Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 25, 2025 ROOM HHR5

Members of the public may access a livestream of the meeting here:
https:/Awww.azleg.gov/videoplayer/?clientID=6361162879&eventID=202503 1113

TIME

2:00 P.M. or upon recess or
adjournment of Floor

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
SB1024

SB1057

SB1087

SB1094

SB1145

DP _
6-4-0-0

Short Title
state agencies; payments; cryptocurrency
(Rogers: Weninger)
COM, RULES

rike Everything Title

Dd pf S je working animal; harm; classification(now: S/E: marijuana; rural opportunity initiative

G-2-1-1
ee

commerce; trade; passport identification)
(Gowan: Payne, Shamp)
COM, RULES

residential contractor assessments; recovery fund
(Hoffman: Keshel)

RULES
5 -2-6-2 COM RU

>
G-3-0-|
DPA
T-1-I-l

business; discrimination prohibition; social criteria
(Hoffman: Keshel)
COM, RULES

community facilities districts; prompt pay(now:
special districts; construction; payments)

(Carroll: Gowan, Kavanagh, et al)
GOV w/d, COM, RULES

Page 1 of 2

?
i

’
*

ATTACHMENT |
Bills Short Title Strike Everything Title

SB1182 D Pp landlords; property manager; contact

information.(now: municipalities; counties;
construction hours)

[0-S-Q-O (Ortiz: Alston, Sandoval)
COM, RULES

SB1229 D PA planning; home design; restrictions; prohibition. | S/E: municipalities; development; starter
(Bolick: Bravo, Diaz, et al) homes

COM, RULES
5-4-1-0

SB1235 r P N health profession regulatory boards; membership
(Shamp: Carroll, Dunn, et al)

HHS w/d, COM, RULES
9-0-]-0 "HS
SB1353 D Pp ! municipal development; permits; review

(Gowan)

5-3-0-[ COM: RULES

SB1494 common expense liens; foreclosure; amount
DPA (Mesnard)

$-2-00 COM, RULES

SB1535 P p a homeowner's associations; address lights

(Kavanagh)
‘COM, RULES
S- 3 = O i
(Shepe)
COM,APPROP-RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

RA
VE
RA
0349/2025

03/21/2025,
03/24/2025

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 (3/25/2025)

$B1024, state agencies; payments; cryptocurrency
Oppose:

Sandy Bahr, Sierra Club - Grand Canyon Chapter; Gina Griffiths, representing self; Thomas Krepitch, representing
self; Eve Shapiro, representing self; Alisa McMahon, representing self; Michael Fiflis, representing self; Dianne Post,
AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Karen Cusano, representing self; Bettina Bickel,
representing self; Darrell Boomgaarden, representing self; Becky Sayler, representing self; Maggie Huntington,
representing self; Nancy Santori, representing self; Jana Segal, representing self; Daniel Stormont, representing
self; John Neville, representing self; Carol Fiore, representing self; Sherry Massie, representing self; Chris Allen,
representing self; Charlene Hoffman, representing self; David Myers, representing self; Monica Bills, representing
self; marcia stewart, representing self; Carissa Sipp, representing self; Sharon Ehrlich, representing self; George
Ehrlich, representing self; Nancee K Wood, representing self; Kathryn Dorn, representing self; Rivko Knox,
representing self; Sally Evans, representing self

All Comments:

Alisa McMahon, Self: Crypto economy raises many concerns. For one, cryptocurrency and cryptomining use
enormous amounts of electricity and therefore water. Such a new, high demand for both should be holistically
planned for before crypto is embraced.; Michael Fiflis, Self: Accepting crypto is dangerous; crypto is very volatile in
price and thus risky. Prudent management of taxpayer funds should not include crypto.; Jana Segal, Self: Allows
state agencies to enter into agreements with cryptocurrency service providers. Cryptocurrency and crypto-mining
use enormous amounts of electricity - frequently keeping coal fired power plants online to mine crypto.; Daniel
Stormont, Self: There is no need for state agencies to accept the bubble currency that is crypto, especially
considering the huge energy and water costs of mining crypto. Stick to something that has tangible value.; John
Neville, Self: NOT with our money!!! Who is paying whom to bring this bill to the Legislature? Ethics review
needed.; Chris Allen, Self: Please do not gamble the economic health of our state on cryptocurrency.; marcia
stewart, Self: too high of a risk. Financial institutions do not recommend; Carissa Sipp, Self: This is a path to
corruption, under the table payments and possible sever loss of finances for the state. this could lead to scams
and overnight making the cost skyrocket as the market play with the value of the crypto currency. Don't bankrupt
us.; Kathryn Dorn, Self: "Cryptocurrency service provider" seems like a massive oxymoron; please don't try to
involve our state in the ongoing fake-money mess that is crypto.

$B1057, working animal; harm: classification (NOW: commerce:

trade; passport identification)

Testified in support:
Nick Simonetta, ARIZONA RURAL OPPORTUNITY ALLIANCE; Jon Udell, representing self

ATTACHMENT Z
Testified as opposed:
Brett Mecum, JARS; Pele Fischer, Arizona Dispensaries Association

Support:
Julie Gunnigle, representing self; AJ Jacobs, ARIZONA NORML; Jessica Rainbow, ARIZONA RURAL OPPORTUNITY
ALLIANCE

Oppose:
Wendy Briggs, STORY CANNABIS COMPANY; Douglas Cole, COPPERSTATE FARMS; Robert Dalager, CURALEAF;
Kathryn Senseman, AZ Dispensary Association

All Comments:

Jessica Rainbow, ARIZONA RURAL OPPORTUNITY ALLIANCE: supportive of the S/E amendment; Wendy Briggs,
STORY CANNABIS COMPANY: Opposed to S/E Amendment; Douglas Cole, COPPERSTATE FARMS: Opposed to S/E
Amendment; Robert Dalager, CURALEAF: Opposed to the strike everything.; Pele Fischer, Arizona Dispensaries
Association: Opposedto the porposed house commerce strike everything amendment regarding new dispensary
licenses.

SB1087, residential contractor assessments; recovery fund

Support:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

$B1094, business; discrimination prohibition; social criteria

Testified in support:
Michael Infanzon, ARIZONA FIREARMS INDUSTRY TRADE ASSOCIATION (AZFITA), AZ CITIZENS DEFENSE LEAGUE,
INC

Support:

James Jaskie, representing self; Onita Davis, representing self; Shirley Dye, representing self; Michael Gibbs,
representing self; James Delton, representing self; Cathy Schwanke, representing self; Mike Sullivan, representing
self; Christine Maceri Genge, representing self; Stephen Wenger, representing self; David Pool, representing self;
Fred Bridges, representing self; David Cardon, representing self; kurt keltner, representing self; Julie Revilla,
representing self; David Steven, representing self; Donna Willis, representing self; Todd Chesney, representing self;
Michael Wixom, representing self; James Warniers, representing self; Michael Kriegel, representing self; John
Fischer, representing self; Keith Suleski, representing self; larry berger, representing self; Mike MacDonald,
representing self; Peter Alford, representing self; Peter Gromada, representing self; Charles Stury, representing
self; Cosme Borunda, representing self; David Riley, representing self; Scott Lolmaugh, representing self; C D
Tavares, representing self; Richard Musser, representing self; Philip Cirelli, representing self; David Ginsburg,
representing self; Cheryl Caldararo, representing self; Lon Wolff, representing self; Gary Kabrick, representing self;
Phillip Conwell, representing self; Norman Trzaskowski, representing self; Thomas Launders, representing self;
Greg West, representing self; Donald Scott, representing self; Mickie Davis, representing self; Clyde Ingalsbe,
representing self; Mark Logan, representing self; Norman Nipperus, representing self; Lawrence Fleming,
representing self; Sharon Briner, representing self; Erik Anderson, representing self; Kenneth Imthurn,

representing self; Gary Horton, representing self; Paul Fitch, representing self; Richard Baker, representing self;
Thomas Baggott, representing self; Paul Fisher, representing self; Juan Aquino, representing self; Tony Grenci,
representing self; Roger Hobbs, representing self; Alan Bond, representing self; Nicholas Hitchcock, representing
self; Steven Pettigrew, representing self; Steve Rainey, representing self; Danny Ray Todd, representing self;
Timothy Blaney, representing self; Robert Morrow, representing self; Ryan Adams, representing self; Mark La Scala,
representing self; Bill Bracco, representing self; Joann Kiyabu, representing self; Warren Woodward, representing
self; Frederick Denson, representing self; Don Marshall, representing self; Michael Markson, representing self;
Wayne Moore, representing self; Heather Porter, representing self; Mike Susmark, representing self; Steve Gerland,
representing self; Stephen James Petrangelo, representing self; Cindy Sullivan, representing self; Michael Schramm,
representing self; Theresa Logan, representing self; Charles McCain, representing self; Milton Schick, representing
self; Christopher Fallang, representing self; Jeanne Tavares, representing self; Elwyn Moore, representing self;
Anthony Meyer, representing self; Michael Mounsey, representing self; Leonard Shanks, representing self; Mark
Clark, representing self; Stephen Harris, representing self; Brian Keen, representing self; MaryAnn Wolff,
representing self; Lloyd Tadd, representing self; deana corsa, representing self; Gary Saxhaug, representing self;
Phyllis Lester, representing self; Buffalo Rick Galeener, representing self; Stephanie Fontanille, representing self;
Donna Booth, representing self; Linda Busam, representing self; Starr Costa, representing self; Cara Kretz,
representing self; Pam Throw, representing self; James Adams, representing self; Steve Ware, representing self;
Dana Dean, representing self; George Dean, representing self; Steven Roush, representing self; Jeff Carr,
representing self; Michael Schultz, representing self; Theodore Cebula, representing self; gary foisset, representing
self; Eugene Poole, representing self; Jeffrey Cahill, representing self; Zane Appel, representing self; Matt
Weinstein, representing self; Joseph Camilleri, representing self; Robert Lee, representing self; John Oliver,
representing self; Pamela Lee, representing self; Don Moran, representing self; bruce emmons, representing self;
Clayton Loudon, representing self; Timothy Meza, representing self; Geoffrey Archer, representing self; Steve
Snider, representing self; William bronson, representing self; Craig Baldwin, representing self; Robert Moskovitz,
representing self; Randy Brown, representing self; Sydney Brown, representing self; PAUL STOCKBURGER,
representing self; Craig Petersen, representing self; Mary Petersen, representing self; barry obrien, representing
self; Alexander Vanstone, representing self; Ronald Kropp, representing self; William Schlenker, representing self;
Andrew Costanzo, representing self; alexia wacks, representing self; Carlton Baxter, representing self; BRUCE W
NOGAR, representing self; Dianna Gates, representing self; Doug Stonerock, representing self; Shawn Grammont,
representing self; Michael Colman, representing self; Bob Bader, representing self; Charles Weinstein, representing
self; Joe Fiumara, representing self; Charles Moffett, representing self; Richard Reitz, representing self; Don
Paulsen, representing self; Susan Bolt, representing self; John Mclinally, representing self; Barbara Cobb,
representing self; Dennis Eaton, representing self; Tim Dziuk, representing self; Barry Burkhardt, representing self;
Mary Ann Johnston, representing self; Richard Binkowski, representing self; Michael Landis, representing self;
Nancy Osgood, representing self

Oppose:

Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; marcia stewart, representing self; Sharon
Ehrlich, representing self; Joan Murphy, representing self; Rivko Knox, representing self; Kathleen Dubbs,
representing self; George Ehrlich, representing self; Gina Griffiths, representing self

All Comments:

James Jaskie, Self: Public banks are too easily intimidated by their regulators to de-bank those with different
viewpoints over the laughable "Reputation Risk". Simply stop banks from discriminating against legal businesses.;
Michael Infanzon, ARIZONA FIREARMS INDUSTRY TRADE ASSOCIATION (AZFITA), AZ CITIZENS DEFENSE LEAGUE,
INC: In Support of the Bill; Shirley Dye, Self: Only income and a good credit rating should be needed to get a loan or
insurance policy.; Michael Gibbs, Self: Political ideology is no reason discrimination. Please give this bill a do-pass
recommendation.; Fred Bridges, Self: Please stop American companies from violating the US Constitution! Do you
support the Constitution?; kurt keltner, Self: Please pass 1094; Michael Kriegel, Self: Please support this bill; Scott
Lolmaugh, Self: Please support this important bill.; Greg West, Self: | fully support this Bill; Donald Scott, Self: |
support this initiative, please move it forward. Thank you!; Norman Nipperus, Self: This one's a no brainer.;
Lawrence Fleming, Self: Thank you.; Steve Rainey, Self: | urge you to strongly support this bill; Timothy Blaney, Self:
Mr. & Mrs. Timothy Blaney; Stephen Harris, Self: Banks should be treated like utilities, all should be accepted.;
marcia stewart, Self: opens up to discrimination; deana corsa, Self: We need to hire people who are qualified not
based on their gender or skin color! PC Prescott; Starr Costa, Self: A person’s financial worthiness should be based
exclusively on financial strength, ability to pay, and past behavior. Nothing else should matter!; Jeff Carr, Self: We
need this bill to prevent discrimination against firearm companies due to political affiliation or other social credit,
environmental, social or governmental score or similar values-based or impact criteria. Sadly, we need this law
now!; Michael Schultz, Self: Financial institutions should not be making lending or insuring decisions based on the
type of legal business. Firearms manufacturers and dealers are legitimate lines of business, and should be treated
as such.; Zane Appel, Self: Stop coercion using financial institutions.; Clayton Loudon, Self: Please stop
discrimination against lawful and popular businesses.; William bronson, Self: Protects a fundamental right to your
opinion on critical issues.; Randy Brown, Self: They are coming for YOU! Buy cigarettes - Blackballed! Buy Alcohol -
Blackballed! Buy "junk food" - Blackballed! Donate to the "wrong" political or religious group - Blackballed! Buy a
gasoline car - Blackballed! Buy an American Flag - Blackballed!; Sydney Brown, Self: Stop coercion using financial
institutions.; William Schlenker, Self: Please support this important bill. Thank you.; Shawn Grammont, Self: As a
U.S. citizen and Arizona resident, | highly this bill and give it a favorable review.; Joe Fiumara, Self: We need to stop
this discrimination; Richard Reitz, Self: Thanks.; Barry Burkhardt, Self: Financial, insurance, etc institutions should
not discriminate in order to push social engineering objectives.; Mary Ann Johnston, Self: How is discrimination
even considered when doing business?; Nancy Osgood, Self: As a PC in LD12 | fully support this bill.

$B1145, community facilities districts; prompt pay (NOW: special
districts; construction: payments)

Testified in support:
Todd Wynn, ASSOCIATED GENERAL CONTRACTORS-AZ CHAPTER

Oppose:
Susie Stevens, VALLEY PARTNERSHIP; Craig McDermott, representing self; John Baumer, ARIZONA CHAPTER OF
NAIOP; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Scott Smith, LEAGUE OF ARIZONA CITIES &

TOWNS

$B1182, landlords; property manager; contact information. (NOW:

municipalities; counties; construction hours)

Testified in support:
Jake Hinman, ARIZONA NEIGHBORHOOD PROJECT; Jessie Atencio, representing self; Melonie Leslie, representing
self

Support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Chad Heinrich, NATIONAL FEDERATION OF
INDEPENDENT BUSINESS; Emily Ryan, Southern Arizona Home Builders Association; Angelica Terrazas, ARIZONA
MASONRY COUNCIL; Brian Tassinari, ARIZONA MASONRY COUNCIL

Oppose:

Craig McDermott, representing self

All Comments:
Melonie Leslie, Self: Support on behalf of the Arizona Masonry Council.; Angelica Terrazas, ARIZONA MASONRY
COUNCIL: Support sb 1182.

$B1229, planning; home design; restrictions; prohibition.

Testified in support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Elaine MacPherson, representing self; Trevor
Malzewski, representing self; Dennis J Legere, ARIZONA HOMEOWNERS COALITION; David Morris, AMERICANS
FOR PROSPERITY AZ; Jake Hinman, ARIZONA NEIGHBORHOOD PROJECT

Testified as opposed:

Jana Granillo, representing self; Jackie Rich, representing self; Nick Ponder, City Of Phoenix, LEAGUE OF ARIZONA
CITIES & TOWNS, YUMA, CITY OF; Neal Haddad, representing self; Susan Edwards, representing self; Kevin Hartke,
representing self; Mayor Julia Wheatley, representing self; Paul Davenport, representing self

Support:

Cindy Sullivan, representing self; Stephen Harris, representing self; Francisco "Hugo" Polanco, Rural Arizona Action
(RAZA), Self; Buffalo Rick Galeener, representing self; Venus Scott, representing self; Donna Booth, representing
self; Pam Throw, representing self; Jonathan Soto Robles, representing self; Tom Farley, Arizona Association Of
Realtors; Andrea Hernandez Falcon, representing self; Hunter Anderson, representing self; Sterling Sourk,
representing self

Neutral:
Mike Sullivan, representing self; Mark Logan, representing self; Theresa Logan, representing self; Mary Evelyn
Simpson, representing self

Oppose:

Amber Wakeman, EL MIRAGE, CITY OF; Shirley Dye, representing self; Richard Rutkowski, representing self; Cathy
Schwanke, representing self; Craig McDermott, representing self; Beverly Janowitz-Price, representing self;
Christine Maceri Genge, representing self; Michele Smith, representing self; Judith Lohr, representing self; Peter
Anello, representing self; Starr Costa, representing self; Janis Schmidt, representing self; Bob Alonzo, representing
self; Judy Alonzo, representing self; Patricia Meade, representing self; Margaret Barnes, representing self; Robert
Wisler, APACHE JUNCTION, CITY OF; Larry Whitesell, representing self; Debbie Delwiche, representing self; Ryan
Bigelow, , representing self; Neil Thibodaux, representing self; Karl Shaddock, ORO VALLEY, TOWN OF
All Comments:

Elaine MacPherson, Self: | would like to be able to own a home at some point, and | think this bill can help me
achieve that by lowering barriers to new construction.; Trevor Malzewski, Self: Lot size & HOA requirements act as
government mandated unaffordability. There's ample evidence these restrictions lower housing supply, increase
sale prices, and force some buyers into artifically large homes, hitting low-income buyers the hardest; Dennis J
Legere, ARIZONA HOMEOWNERS COALITION: This bill establishes the state's perspective on property rights, which
we support. Yet the state still does far too little to prevent HOAs from restricting homeowners' property rights
through rules and design controls outside of the declaration.; Francisco "Hugo" Polanco, Rural Arizona Action
(RAZA), Self: .; Venus Scott, Self: AZ needs more options other than restrictive HOA homes.; Tom Farley, Arizona
Association Of Realtors: Support the Senate Engrossed bill.; Sterling Sourk, Self: I'm commenting in support of
$B1229 as is. With AZ's housing crisis, it's imperative for potential homeowners to have choice in what kind of
home they can by. This bill allows for greater choice and diversity of housing for Arizonans' diverse needs.; Jackie
Rich, Self: Without amendments, this bill will not create low priced homes that will be sold to owner occupants
which is the bill's intent; Neal Haddad, Self: SB1229 lacks any mechanisms to ensure these homes actually are
affordable. The path to affordable housing isn't through one-size-fits-all mandates that benefit developers while
ignoring infrastructure and community needs. Let's help AZ's people.; Susan Edwards, Self: How's this help
Sedona,Bisbee, Payson, Jerome, Page, Williams, Lake Havasu City, Pinetop-Lakeside and other places with housing
emergencies because of short-term rentals? And why are unincorporated places ignored? One size doesn't fit all.;
Paul Davenport, Self: SB1229 has many failings, starting with preemption of cities' voter-approved general plans.
The Connolly strike-everything is an improvement. Requiring owner-occupancy would provide homes for families,
not investment opportunities for corporations..; Shirley Dye, Self: Every AZ county and municipality has many
differences in topography, climate, culture, etc. The state should not regulate home building standards. Let the
people make the choices through their councils.; Richard Rutkowski, Self: Retain local control.; Christine Maceri
Genge, Self: Do not remove the people's power to decide!; Bob Alonzo, Self: This is terrible please listen to the
voters; Judy Alonzo, Self: This is a terrible bill. Please do not vote for it.; Robert Wisler, APACHE JUNCTION, CITY
OF: We support the strike-everything amendment offered by Rep. Connolly; Larry Whitesell, Self: This preempts
local control. It does not ensure affordability. Many municipalities have already adopted ordinances that remove
barriers to more affordable housing. Solutions should be based on research, not just the opinion of developers.;
Neil Thibodaux, Self: Update to no; Mary Evelyn Simpson, Self: YavGOP PC There may be unintended
consequences to municipalities

$B1235, health profession regulatory boards; membership

Testified as neutral:
Regina Cobb, representing self

Neutral:

Don Isaacson, Arizona Optometric Association, AZ Assn Of Dispensing Opticians; Marie Isaacson, Arizona
Optometric Association, AZ Assn Of Dispensing Opticians; Jason Barraza, Associate Director, Arizona Dental
Association; Amanda Sheinson, AZ MEDICAL ASSN; Edie Lefevre, Arizona Dental Association; Ryan Sullivan, Arizona
Dental Association; Jeremy Browning, AZ OSTEOPATHIC MEDICAL ASSN

Oppose:
Craig McDermott, representing self; Michelle Ahimer, ARIZONA RETAILERS ASSOCIATION; Kam Gandhi - AZ Board
of Pharmacy, representing self
All Comments:

Don Isaacson, Arizona Optometric Association, AZ Assn Of Dispensing Opticians: Changing our position to neutral;
Regina Cobb, Self: AZ DENTAL ASSOCIATON with amendment; Jason Barraza, Arizona Dental Association: Neutral
on the Bill with the adoption of the Commerce Committee Amendment; Amanda Sheinson, AZ MEDICAL ASSN:
neutral w/ 3/25 amendment; Edie Lefevre, Arizona Dental Association: Neutral on the Bill with the adoption of the
Commerce Committee Amendment; Ryan Sullivan, Arizona Dental Association: Neutral on the Bill with the
adoption of the Commerce Committee Amendment; Jeremy Browning, AZ OSTEOPATHIC MEDICAL ASSN: Neutral
with the Chairman's amendment.

S$B1353, municipal development; permits; review

Testified in support:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

Testified as opposed:
Scott Smith, City Of Phoenix

Support:

Emily Ryan, Southern Arizona Home Builders Association

Neutral:
Robert Wisler, APACHE JUNCTION, CITY OF; Heather Bernacki Wilkey, QUEEN CREEK, TOWN OF

Oppose:

Sandy Bahr, Sierra Club - Grand Canyon Chapter; Amber Wakeman, EL MIRAGE, CITY OF; Thomas Krepitch,
representing self; Craig McDermott, representing self; Eve Shapiro, representing self; Alisa McMahon, representing
self; Michael Fiflis, representing self; Karen Cusano, representing self; Bettina Bickel, representing self; Kathy
Fraser, representing self; Gail Bliss, representing self; Nancy Santori, representing self; Sherry Massie, representing
self; Chris Allen, representing self; Charlene Hoffman, representing self; David Myers, representing self; Monica
Bills, representing self; Carissa Sipp, representing self; Carol Wyatt, representing self; Cherie Anello, representing
self; Peter Anello, representing self; Patricia Meade, representing self; Nancee K Wood, representing self;
Margaret Barnes, representing self; Kathryn Dorn, representing self; Debbie Delwiche, representing self; Neil
Thibodaux, representing self; Karl Snaddock, ORO VALLEY, TOWN OF

All Comments:

Alisa McMahon, Self: 1. Special interest bill written by home builders. 2. Preempts local authority. 3. Not in the
public interest. 4. Timelines are ridiculously short.; Michael Fiflis, Self: The time limits are far too short, potentially
posing a threat to public safety. Unnecessarily ties municipalities’ hands. Builders do not need this special interest
legislation.; Chris Allen, Self: We elect our government to keep a check on big business.; Carissa Sipp, Self: This is
basically downgrading AZ to a third world country by enabling private permits. What is the legality and if this is
challenged or the private company gives permits to felons does AZ have to fork over the bill when they are sued
into oblivion?; Kathryn Dorn, Self: The Legislature which regularly runs into overtime in order to pass a budget
really shouldn't be telling any state agency to finish (potentially lengthy) reviews within only 15 days.; Neil
Thibodaux, Self: Update to no
SB1494, common expense liens; foreclosure; amount

Testified in support:
Dennis J Legere, ARIZONA HOMEOWNERS COALITION

Testified as opposed:
Jason Barraza, Associate Director, ARIZONA ASSOCIATION OF COMMUNITY MANAGERS (AACM); Alexis Glascock,
COMMUNITY ASSOCIATIONS INSTITUTE

All Comments:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION: While the HOA trade organizations have told the legislature
for years that foreclosure is always the last resort, that is not in any way accurate or the complete story. This bill
will make foreclosure a remedy of last resort.

SB1535, homeowner's associations; address lights

Testified in support:
Dennis J Legere, ARIZONA HOMEOWNERS COALITION; Andrew Timler, representing self

Testified as opposed:
Jason Barraza, Associate Director, ARIZONA ASSOCIATION OF COMMUNITY MANAGERS (AACM)

All Comments:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION: While | hate that it takes legislative actions to protect what
should be a commonsense feature or capability in any community. There is no common sense in HOA communities
only absolute power to regulate other people's homes. Please vote yes.; Andrew Timler, Self: This is the first smart
address number, designed to make the home easier to identify. This is crucial when there is an emergency such as
dialing 911 when seconds and minutes matter most.
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| 3/25/25 /25| . 125
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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 1024: state agencies; payments; cryptocurrency
Sponsor: Senator Rogers, LD 7
Committee on Commerce

Overview
Provides a means for a state agency to accept cryptocurrency as a method of payment.

History
Transaction privilege tax (TPT) is a gross receipts tax levied for the privilege of conducting

business in Arizona and is imposed under 16 business classifications. Statute requires
businesses to pay TPT to ADOR by the 20th day of the following month after the tax is
incurred. All TPT payments must be made to ADOR by bank draft, check, cashier's check,
money order, cash or electronic funds (A.R.S. §§ 42-5008, 42-5014, 42-5018).

Individual and corporate income tax is levied on taxable income. Income tax may be paid in
installments or in one payment, as prescribed. Corporate income tax can be paid by electronic
funds transfer and individual income tax can be paid by check, cashier’s check, certified
check, money order, U.S. currency or by the application of an overpayment from a prior tax
return (A.R.S. §§ 43-1011, 43-1111).

Provisions

1. Allows a state agency to enter into an agreement with a cryptocurrency service provider
to provide a method for accepting cryptocurrency as a payment method of, and to accept
cryptocurrency as a method of payment for, fines, civil penalties, rent, rates, taxes, fees,
charges, revenue, financial obligations and special assessments to pay any amount due to
that agency or the state. (Sec. 1)

2. Requires the agreement to:
a) govern the terms and conditions on which cryptocurrency as a means of payment can
be accepted or declined; and ©
b) provide the manner in and conditions on which a cryptocurrency service provider must
pay the state by means of cryptocurrency or United States dollars. (Sec. 1)

8. Specifies a state agency may pay any service fees specified in the agreement for the
cryptocurrency transaction or may require a person that pays with cryptocurrency to pay
the service fees associated with the cryptocurrency transaction. (Sec. 1)

4, Asserts the person that pays with cryptocurrency is liable for all portions of the payment

until the state agency has received final and unconditional payment of the full amount
due from the cryptocurrency service provider for the cryptocurrency transaction. (Sec. 1)

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

SB 1024
Initials Page 1 Commerce

ATTACHMENT 4
5. Allows the Department of Revenue (DOR) to enter into an agreement with a
cryptocurrency service provider to accept cryptocurrency for remittances of TPT and
municipal tax. (Sec. 2)

6. Allows remittances for a tax, interest and penalty to be paid to the DOR in the form of
cryptocurrency if DOR enters into agreement with a cryptocurrency service provider.
(Sec. 3)

Defines cryptocurrency and cryptocurrency provider. (Sec. 1)
8. Makes technical and conforming changes. (Sec. 2, 3)

Contains a delayed effective date of January 1, 2026. (Sec. 4)

SB 1024
Initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. SB 1024

DATE March 25, 2025 MOTION: | yP

PASS AYE PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

x
aie
VA
al

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

PSNANAL AKL N

7 oO | oO

APPROVED: CO TEE SEC RY
VS caste

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. aS"
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DPA/SE 6-0-1-0 | 3" Read 24-5-1-0

SB 1182: NOW: municipalities; counties; construction hours
Sponsor: Senator Ortiz, LD 24
Committee on Commerce

Overview
An emergency measure that precludes a local government from enacting any ordinance or
rule that prohibits construction activities during specified times of certain months.

History
Current statute enumerates the general powers of cities, towns and counties. These general

powers include the following authorities: 1) buying, selling and leasing property; 2) providing
for the construction or rehabilitation of housing development projects or areas; 3) preparing
and adopting a comprehensive long-range general plan for the orderly growth and
development of the municipality or county ; 4) adopting zoning ordinances and codes to
protect the health, safety and welfare; 5) regulating the subdivision of all lands within its
corporate limits; and 6) issuing building permits (Title 9, Chapter 4, A.R.S., Title 11, Chapter
6, A.R.S.).

Provisions

1. Prohibits, for construction work that is being performed in accordance with a validly
issued building permit, a municipality or county from enacting any ordinance, rule or
regulation that restricts or prohibits general construction activities between May 1 and
October 15 of each year between 5:00 A.M. and 7:00 P.M. each business day and between
the hours of 7:00 A.M. and 7:00 P.M. on Saturday. (Sec. 1, 2)

2. Asserts that a municipality or county must allow concrete to be poured at least one hour
before the time that general construction activities are regularly scheduled to begin. (Sec.
1, 2)

3. Contains an emergency clause. (Sec. 3)

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

SB 1182
Initials Page 1 Commerce

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

COMMITTEE ON

ROLL CALL VOTE

Commerce

DATE March 25, 2025

BILL NO.

SB 1182

MOTION: DP

PASS

AYE

NAY

PRESENT

ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

KRAAAIAAAA

Weninger, Chairman

APPROVED:

~ JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

)

Gb Ld fae
COMMITTEE SECRETARY

ATTACHMENT.

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DP 4-3-0-0 | 3° Read 16-13-1-0

SB 1235: health profession regulatory boards; membership
Sponsor: Senator Shamp, LD 29
Committee on Commerce

Overview
Restructures the statutory membership of various health profession regulatory boards and
Creates the Health Profession Regulatory Board Oversight Council.

History
A health board is any board that regulates one or more health professional in Arizona. The

primary purpose of a health board is to protect the public from unlawful, incompetent,
unqualified, impaired or unprofessional conduct by practitioners of certain health
occupations and professionals. In order for an individual to practice or perform a regulated
health occupation or profession or use certain occupational or professional titles in Arizona,
a person must meet certain qualifications and apply to the designated health board for the
license, certificate or authorization (Title 32 and Title 36, A.R.S.).

Provisions
Health Profession Regulatory Board Restructure

1) Adds, for the following Boards, a stipulation that if:
a) the Governor fails to fill a public member vacancy within one year after the position
becomes vacant, the Board may fill the public member position by a majority vote; and
b) the Senate fails to confirm or reject an appointee within one year after the Governor's
appointment, the appointee is deemed confirmed:
i) Podiatry Examiners; (Sec. 1)

ii) Chiropractic Examiners; (Sec. 2)

iii) Dental Examiners; (Sec. 3)

iv) Arizona Medical Board; (Sec. 4)

v) Naturopathic Physicians Medical Board; (Sec. 5)

vi) Nursing; (Sec. 6)

vii) Dispensing Opticians; (Sec. 7)
viii) Optometry; (Sec. 8)

ix) Osteopathic Examiners; (Sec. 9)

x) Pharmacy; (Sec. 10)

xi) Physical Therapy; (Sec. 11)

xii) Psychologist Examiners; (Sec. 12)
xiii) Arizona Regulatory Board of Physician Assistants; (Sec. 18)
xiv) Homeopathic and Integrated Medicine Examiners; (Sec. 15)

xv) Behavioral Health Examiners; (Sec. 16)
xvi) Occupational Therapy Examiners; (Sec. 17)

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

SB 1235
Initials Page 1 Commerce

ATTACHMENT 8
2)

xvii) Respiratory Care Examiners; (Sec. 18)
xviii) Acupuncture Board of Examiners; (Sec. 19)
xix) Athletic Training; (Sec. 20)
xx) Massage Therapy; (Sec. 21)
xxi) Examiners of Nursing Care Institution Administrators and Assisted Living Facility
Managers; (Sec. 22)

Restructures the membership of the following Boards by requiring that a specified
number of members must be members who have never had their license revoked or
suspended or have voluntarily surrendered their license in lieu of suspension or
revocation and who are former licensees who are retired from the practice associated with
such Board or have a valid license and are not currently practicing:

a) Podiatry Examiners; (Sec. 1)

b) Chiropractic Examiners; (Sec. 2)

c) Arizona Medical Board; (Sec. 4)

d) Naturopathic Physicians Medical Board; (Sec. 5)

e) Dispensing Opticians; (Sec. 7)

f) Optometry; (Sec. 8)

g) Osteopathic Examiners; (Sec. 9)

h) Physical Therapy; (Sec. 11)

i) Psychologist Examiners; (Sec. 12)

j) Homeopathic and Integrated Medicine Examiners; (Sec. 15)

k) Occupational Therapy Examiners; (Sec. 17)

l) Athletic Training; (Sec. 20)

Requires at least 50% of the licensed members of the following Boards to be members who

never had their license revoked or suspended or have voluntarily surrendered their

license in lieu of suspension or revocation and who are former licensees who are retired

from the practice associated with such Board or have a valid license and are not currently

practicing:

a) Arizona State Board of Nursing; (Sec. 6)

b) Arizona Regulatory Board of Physician Assistants; (Sec. 13)

c) Behavioral Health Examiners; (Sec. 16)

d) Respiratory Care Examiners; (Sec. 18)

e) Acupuncture Board of Examiners; (Sec. 19)

f) Massage Therapy; (Sec. 21)

g) Examiners of Nursing Care Institution Administrators and Assisted Living Facility
Managers; (Sec. 22)

Decreases the number of members of the State Board of Dental Examiners from 11
members to 7 members and outlines the membership. (Sec. 3)

Increases the number of members of the State Board of Optometry from 7 members to 9
members and outlines the membership. (Sec. 8)

Modifies the membership of the Arizona State Board of Pharmacy to consist of 3
pharmacists, rather than 6, and 5 public members, rather than 2. (Sec. 10)

Modifies the membership of the State Board of Psychologist Examiners to include:

a) 1, rather than 2, licensed psychologist who is a full-time faculty member from an
Arizona university with a psychology doctoral program;

b) 2, rather than 3, psychologists in professional practice; and

SB 1235
itials Page 2 Commerce
c) 1, rather than 2, behavioral analyst. (Sec. 12)
Health Profession Regulatory Board Oversight Council

8) Establishes the Health Profession Regulatory Board Oversight Council (Council)
consisting of 3 members, each of whom is a current executive director of a health board
and appointed by the Governor. (Sec. 14)

9) Requires the initial Council members to be appointed by January 1, 2026, for staggered
three-year terms. (Sec. 14)

10) Restricts an executive director from serving on the Council for at least two full terms
before reappointment. (Sec. 14)

11) Prohibits an executive director from refusing appointment to the Council. (Sec. 14)

12) Prohibits an executive director of a health profession regulatory board who is serving on
the Council from reviewing or overseeing any matter relating to that executive director's
health profession regulatory board. (Sec. 14)

13) Allows Council members to use their own health board staff and facilities to facilitate the
business of the Council. (Sec. 14)

14) Outlines the Council's duties which include to review and approve or deny market-
sensitive action taken or decisions made by a health profession regulatory board on or
after January 1, 2026. (Sec. 14)

15) Defines market-sensitive action as actions or decisions by a health profession regulatory
board that create barriers to market participation and restrict competition, including:
a) modifying examination passage scores;
b) adopting or modifying advertising restrictions;
c) changing fees or civil penalties;
d) expanding or restricting the scope of practice of licensee or certificate holder; and
e) demonstrating a pattern of disciplinary or discriminatory actions that create barriers
to market participation. (Sec. 14)

16) Defines pertinent terms. (Sec. 14)
Miscellaneous

17) Instructs each health profession regulatory board to submit a report to the Executive and
Legislature outlining the laws, rules and internal processes and outlines the contents of
the report. (Sec. 23)

18) Provides legislative intent language relating to the reporting requirement. (Sec. 23)
19) Repeals the reporting requirement July 1, 2026. (Sec. 23)

20) Allows all persons serving as health profession regulatory board members to continue to
serve until the expiration of their normal terms. (Sec. 24)

21) Requires the Governor to make subsequent appointments in accordance with the
restructured health profession regulatory board membership. (Sec. 24)

SB 1235
Initials Page 3 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1235

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1235
(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.

LEREEN-STREKECUT-TH-BRACKEFS] indicates new text removed from statute

or previously enacted session law.

(Green—strtkeout—trtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.
<<Green—strikeout—trcarets>> indicates a section removed from the bill.

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

Section 1. Section 32-802, Arizona Revised Statutes, is amended to
read:

32-802. State board of podiatry examiners; members;

compensation; employees; immunity

A. The state board of podiatry examiners is established consisting
of five members who are appointed by the governor PURSUANT TO SECTION
38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. Each member shall be appointed for a term of five years, to
begin and end on February 1.

B- C. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the
governor for the purpose of obtaining a state and federal criminal records
check pursuant to section 41-1750 and Public Law 92-544. The department
of public safety may exchange this fingerprint data with the federal
bureau of investigation.

€- OD. [Ihree members] [ONE—MHEMBER] of the board shall have
practiced podiatry continuously in this state for tmot—tess—ttam AT LEAST
two years immediately preceding appointment and shall have A_ valid

ticetrses LICENSE to practice podiatry. [THYO-HEMBERS—-OF-THE-BOARD-SHALL BE

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House Amendments to S.B. 1235

TRS STAFE- BRA OHA AEE BEE ENSE-FO-PRACTEEE-P OBTATRYANB-ARE-NOF
CURRENTEY—PRACTTETNGT] Two members of the board shall be tay—persons
LAYPERSONS. All members of the board shall be citizens of the United
States.

By £. A vacancy on the board occurring other than by the
expiration of a term shall be filled by appointment by the governor for
the unexpired term.

&> F. All appointments shall be made promptly, and in the case of
the vacancy of a professional member or members, appointment shall be made
no later than ninety days from the expiration of the term or vacancy.

f> G. The term of any member, at the discretion of the board, may
end and the office be declared vacant for the member's failure to attend
three consecutive meetings of the board.

G> H. Members of the board shall receive compensation of ‘fifty
dottars $50 for each day of actual service in the business of the board.

tr I. Subject to title 41, chapter 4, article 4, the board may
employ personnel, including trained investigators, as it deems necessary
to carry out the purposes of this chapter.

t- J. Members and personnel of the board are personally immune
from suit with respect to all acts done and actions taken in good faith
and in furtherance of the purposes of this chapter.

Sec. 2. Section 32-901, Arizona Revised Statutes, is amended to
read:

32-901. State board of chiropractic examiners: members;

removal; immunity

A. The state board of chiropractic examiners is established
consisting of three FIVE MEMBERS WHO ARE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. [AHO —THEMBERS—OF— THE BBARB AHO AE THEY ER -THAB—THEER—ETEENSE
REVORED—EOR-SUSPENBEB—ORTHAVE VO LUNTARTE EY SURRENDERED FTHETR-ETEENSE-F- TE
OF—SUSPENSTON—OR-REVOECAT TON ANB HHO ARE FORMER EFEENS EES HHO ARE REFER EB
FROMTHE PRACTTEE— BF CHERO PRACT TET FES STATE 8 ROA AHAB
CEEENSE—FO—PRACTTEE—EHEROPRACTFEE—ANB—ARENOT—EURRENTFEY—_ PRACTICE HIE BRE
MEMBER] [THREE MEMBERS] OF THE BOARD SHALL BE [#-] _ licensed
[chiropractors] [€HfROPRACTOR] and two MEMBERS OF THE BOARD SHALL BE
consumer members who—are—appointed—by—the—governror. [One] [ACH] member
shall be appointed each year for a term of five years, to begin and end on
July 1.

By C. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the

OmMNODOHR WDM FE

House Amendments to S.B. 1235

governor for the purpose of obtaining a state and federal criminal records
check pursuant to section 41-1750 and Public Law 92-544. The department
of public safety may exchange this fingerprint data with the federal
bureau of investigation.

€> D. Each member of the board shall be a resident of this state,
and [each _ of] the licensed chiropractic [members] [MEMBER] shall have
practiced chiropractic in this state for three years or more. The two
consumer members of the board shall not be in any manner connected with,
or have an interest in, any college or school of chiropractic or any
person practicing any form of healing or treatment of bodily or mental
ailments. A board member shall not receive compensation as an agent or
employee of or a contractor for an insurance company. This subsection
does not prevent a~ THE board member who is a licensed chiropractor from
receiving compensation from an insurance company for patient care as
provided for in a patient's insurance policy.

By E£. Before taking office, each board member shall take an oath
prescribed by law and shall affirm by oath that the board member meets the
qualifications as prescribed in this section.

t> =F. The governor may remove board members for neglect of duty,
malfeasance or misfeasance in office. Vacancies occurring on the board
other than by expiration of a term shall be filled for the unexpired
portion of the term by appointment in the same manner as regular
appointments.

f> G. A member of the board may not serve more than two
consecutive terms.

G> H. A board member who acts within the board member's authority
is personally immune from civil liability with respect to all actions
taken in good faith pursuant to this chapter.

Sec. 3. Section 32-1203, Arizona Revised Statutes, is amended to
read:

32-1203. State board of dental examiners; members;

qualifications; terms

A. The state board of dental examiners is established consisting of
[six] [ONE] licensed [dentists] [BENTHST], [two] [ONE] licensed dental
[hygienists] [tH¥GTENTST], [two] [FOUR] public members and one business
entity member WHO ARE appointed by the governor PURSUANT TO SECTION
38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. EACH MEMBER OF THE BOARD [tS] [SHALL BE] APPOINTED for a term of
four years, to begin and end on January 1.

OANA OHPWNM FE

House Amendments to S.B. 1235

By C. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the
governor for the purpose of obtaining a state and federal criminal records
check pursuant to section 41-1750 and Public Law 92-544. The department
of public safety may exchange this fingerprint data with the federal
bureau of investigation.

€> D. The business entity member and the public members may
participate in all board proceedings and determinations, except in
preparing, giving or grading examinations for licensure. THE dental
hygienist board [members] [MEMBER] may participate in all board
proceedings and determinations, except in preparing, giving and grading
examinations that do not relate to dental hygiene procedures.

B> £—. A board member shall not serve more than two consecutive
terms.

> =F. For the purposes of this section, the business entity member
must be an employee or owner of a registered business entity pursuant to
section 32-1213 and may not include a person who is licensed pursuant to
this chapter.

Sec. 4. Section 32-1402, Arizona Revised Statutes, is amended to
read:

32-1402. Arizona medical board; members; appointment;
qualifications; term: removal; compensation;
immunity; report

A. The Arizona medical board is established. The board consists of
twelve members, four of whom strat? represent the public, [and eight]
[FOUR] of whom stratt—be ARE actively practicing medicine [ANB—-FOUR-O6F—HHOIH
HAVETHEVER HAB—THETR—-TEENSE REVERED BR -SUSPENBEB— OR HAVE FV OCOUNTARTET
SURRENBERED—-FHETR-ETEENSE-FN-ETED- CF SUSPENSTON-OR-REVOEAT TON ANB HARE
FORMER CTECENSEES THO ARE REFTREB FROM FE PRA CTT EE BF HEB FEES
STATE OR AO AEB ETE ENSE— FO PRACTICE HEBT ETE ANB AREHOF
CURRENFEY-PRACTTETHG]. One of the four public members shall be a licensed
practical nurse or a professional nurse, as defined in chapter 15 of this
title, with at least five years' experience. The eight physicians must be
from at least three different counties of tte THIS state. Not more than
five of the board members may be from any one county. Members of the
board are appointed by the governor. All appointments shall be made
promptly. The governor shall make all appointments pursuant to section
38-211,, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. [EXCEPT —AS—PROVIDED—Ft-SUBSECTTON- A 8 F Ft SECFTON; ] Each

doctor of medicine who is appointed to the board shall have been a

ONAN HR WHE

House Amendments to S.B. 1235

resident of this state and actively engaged in the practice of medicine as
a licensed physician in this state for at least the five years before
appointment.

C. The term of office of a member of the board is five years,
commencing on July 1 and terminating on July 1 of the fifth year. Each
member is eligible for reappointment for not more than one additional
term. However, the term of office for a member of the board appointed to
fill a vacancy occasioned other than by expiration of a full term is for
the unexpired portion of that term. Each member may be appointed only
once to fill a vacancy caused other than by expiration of a term. The
governor may reappoint that member to not more than two additional full
terms. Each member of the board shall continue to hold office until the
appointment and qualification of that member's successor, subject to the
following exceptions:

1. A member of the board, after notice and a hearing before the
governor, may be removed on a finding by the governor of continued neglect
of duty, incompetence;— or unprofessional or dishonorable conduct, in
which event that member's term shall end when the governor makes this
finding.

2. The term of any member automatically ends:

(a) On death.

(b) On written resignation submitted to the board chairman or to
the governor.

(d) For failure to attend three consecutive meetings of the board.

(e) Five years after retirement from the active practice of
medicine.

D. The board shall annually elect, from among its membership, a
ctattmatt CHAIRPERSON, a vice-chairman VICE CHAIRPERSON and a secretary,
who shall hold their respective offices at the pleasure of the board.

E. Board members are eligible to receive compensation in the amount
of up to two-hundred—frfty—ctotters $250 per day for each day of actual
service in the business of the board, including time spent in preparation
for and attendance at board meetings, and all expenses necessarily and
properly incurred in attending meetings of the board.

F. Members of the board are personally immune from suit with
respect to all acts done and actions taken in good faith and in
furtherance of the purposes of this chapter.

G. The [ARIZONA MEDICAL] board shall submit a written report to the
governor, the Arizona regulatory board of physician assistants and the
members of the health and human services committee of the senate and the
health committee of the house of representatives, or their successor
committees, to NOT later than August 31 of each year on the [ARIZONA
ON OAR WN HE

House Amendments to S.B. 1235

MEDICAL] board's licensing and disciplinary activities for the previous
fiscal year. The report must include both of the following:

1. Information regarding staff turnover that indicates whether the
person was temporary, part-time or full-time and in which department or
division the person worked.

2. The number of investigators who have been hired and how many of
them have completed the investigator training program required by section
32-1405.

H. Public members appointed to the board may submit a separate
written report to the governor ty ON OR BEFORE August 31 of each year
setting forth their comments relative to the board's licensing and
disciplinary activities for the previous fiscal year.

Sec. 5. Section 32-1502, Arizona Revised Statutes, is amended to
read:

32-1502. Naturopathic physicians medical board: members;

appointment; qualifications; terms: immunity

A. The naturopathic physicians medical board is established
consisting of the following members:

1. [Four] [TW@] physician members WHO ARE appointed by the
governor. Each physician member shall be:

(a) A resident of this state for at least five years immediately
preceding the appointment.

(b) A doctor of naturopathic medicine with a degree from a
naturopathic school or college approved by the board who has engaged in
full-time practice of naturopathic medicine for at least five years
immediately preceding the appointment.

[2.0 THEMBERS AO THANE HEV ER THAD FHETR ETE ENSEREVOREB OR
SUSPENBEB— BR THHAV EVO CUNT AREY _SURRENBER EB THEFT R ETE ENSE FE FEF
SUSPENSTON-ER-REV CEATTON-ANB HHO ARE-FORMER-ETEENS EES AIH ARE-RETFAREB-FROM
FHE—PRACTTEE—OF-NATUROPATHTE—THEB TET ASS TAFE BRA AEE
CEEENSE FO PRACFEEE-HATF ERO PATHE HEB TET ANB ARE HOT _EGRRENFEY
PRACTTETNG? J]

[2.] [37] Three public members’ [WH ARE] appointed by’ the
governor. Each public member shall:

(a) Be a resident of this state for at least five years immediately
preceding the appointment.

(b) Not be connected, in any manner, with or have any interest in a
school of medicine, a health care institution or any person practicing any
form of healing or treatment of bodily or mental ailments.

B. ALL MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

ANON WNH PE

House Amendments to S.B. 1235

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

€- D. The terms of office of the physician members and the public
members are five years to begin and end on June 30. Each physician member
and each public member continue to hold office until the appointment and
qualification of their successors, subject to the following exceptions:

1. A member of the board may be removed from office if the governor
finds the member was guilty of malfeasance, misfeasance or dishonorable
conduct.

2. The term of any member automatically ends on_ resignation,
permanent removal from this state or removal from this state for a period
of more than six months.

By E. There shall be no monetary liability on the part of and no
cause of action shall arise against the members of the board, the
secretary-treasurer or permanent or temporary personnel of the board for
any act done or proceeding undertaken or performed in good faith and in
furtherance of the purposes of this chapter.

Sec. 6. Section 32-1602, Arizona Revised Statutes, is amended to
read:

32-1602. Arizona state board of nursing; members; terms:

immunity

A. The Arizona state board of nursing is established consisting of
eleven members who are appointed by the governor PURSUANT TO SECTION
38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. Six members shall be registered nurses, including at least one
registered nurse practitioner, clinical nurse specialist or certified
registered nurse anesthetist. One member shall be a nursing assistant or
a nursing assistant educator. Two members shall represent the public and
two members shall be licensed practical nurses. [At—CEAST—FIFFY-PERCENF
OF—THE—CTEENSEB— ORE ERT TFT EB HEMBERS— BF THE BOARB—SHALCE— BE-THEMBERS it6
HAVETEVER THAD FHETR—TTEENSE- REVOKED BRSUSPENBEB— OR TAYE VOEONFART EY
SURRENBERED—THETR-CTEENSE-TH-ETED-6FSUSPENSTON—EBR-REV EAT TON ANB FORMER
CEECENSEES HHO ARE REFTREB— FROM FE PRACT TEE BF THURS FGFS SAFER
SHOE HAE BE ENS EF PRACTICE THURS HYG ANB ARE HOF CURRENRFET

ANANTH WDM

House Amendments to S.B. 1235

PRACTTETNGT] Members shall be appointed for a term of five years, to begin
and end on June 30.

€> OD. On or before May 1 each year and at any other time a vacancy
on the board occurs, the governor shall make an appointment’ or
appointments to the board. AN appointment to fill a vacancy other than by
expiration shall be for the unexpired term. A person shall not serve more
than two consecutive terms as a member of the board.

B> £. The governor may remove any person from the board for
neglect of any duty imposed by law or for incompetency or unprofessional
or dishonorable conduct.

t> =F. A board member's term automatically ends:

1. On the death of the member.

2. On the member's written resignation submitted to the board
president or to the governor.

3. On the member's failure to attend three consecutive board
meetings.

f> G. A board member who acts within the scope of board duties,
without malice and in the reasonable belief that the member's action is
warranted by law is not subject to civil liability.

Sec. 7. Section 32-1672, Arizona Revised Statutes, is amended to

read:
32-1672. State board of dispensing opticians: members:
qualifications; terms; removal: immunity
A. The state board of dispensing opticians is established
consisting of seven members WHO ARE appointed by the governor PURSUANT TO

SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. [Eive] [THREE] members of the board [SHAtE—-BEHENBERSTIOCHAVE
NEVER HAD THETR—tTEENSE REVOREB 8R_SUSPENBEB— BR HAVE VOLUN FAREEY
SURRENDERED THETR-CTEENSE FICE TED-OF-SUSPENSTFON-ER-REVOEATLON- ANB Hit ARE
FORMER -CTEENSEES THE ARE REFAREB TAFE S STATE BRAHAM EAHA BETES
FO— PRACTICE ANB ARE—NOT—EURRENFE 1 PRACTIETNG Fit‘ HEMBERS] shall be
licensees in good standing under this chapter. Two members of the board
shall be public members.
ANDO HPWNM FE

House Amendments to S.B. 1235

B> C. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the
governor for the purpose of obtaining a state and federal criminal records
check pursuant to section 41-1750 and Public Law 92-544. The department
of public safety may exchange this fingerprint data with the federal
bureau of investigation.

€> D. Each member shall serve for a term of five years expiring on
the first day in January of the appropriate year. A member shall not
serve for more than two complete consecutive terms.

By E. The board shall elect from among its membership a cthatrmar
CHAIRPERSON and such other officers as it deems necessary, who shall hold
their offices at the pleasure of the board.

t> =F. Members of the board are eligible to receive compensation in
the amount of fifty—totters $50 for each day of actual service in the
business of the board.

> G. The governor may remove a board member from office if the
governor determines that the member is guilty of malfeasance, misfeasance
or dishonorable conduct.

G@> 4H. The board, the secretary-treasurer of the board and
permanent and temporary board personnel are immune from civil liability
for any act the board, its officers and board personnel perform in good
faith and in furtherance of this chapter.

Sec. 8. Section 32-1702, Arizona Revised Statutes, is amended to
read:

32-1702. State board of optometry: members: appointment:

qualifications; terms; removal; meetings

A. The state board of optometry is established consisting of the
following members who are appointed by the governor to staggered four-year

terms that end on July 1:
1. [Eive] [THREE] members [WHO-HAVE-TEVERHAD—THIEFR-CTEENSE- REVOKED

PRACTEEE— OPTOMETRY ANB ARE-NOTEURRENFE PRACTICING

2. THO HEMBERS ] who have been licensed and engaged in the active
practice of optometry in this state for at least three years immediately
before the appointment.

[2.] [3+] [Iwo] [FOUR] public members who do not have a direct or
indirect interest in the practice of optometry, opticianry or medicine.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.
ON ODOR WDM FE

House Amendments to S.B. 1235

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

€> D. The governor may remove any’ professional member’ for
incompetency or unprofessional conduct or if the member's license has been
revoked or suspended or if the member has been censured or placed on
probation. The governor may remove any member for neglect of duty or
improper conduct. The unexcused absence of a member for more than two
consecutive meetings is justification for removal. Appointment by the
governor to fill a vacancy caused other than by expiration of a term is
for the unexpired portion of the term.

D> £. A member of the board is ineligible to serve more than two
consecutive full terms. The completion of the unexpired portion of a full
term does not constitute a full term for purposes of this subsection.

t> =F. The board shall conduct regular meetings at least six times
each year at times and places designated by the board or the governor.
Special meetings may be called that the president determines are necessary
to carry out the functions of the board, including meetings using
communications equipment that allows all members participating in the
meetings to hear each other.

ft G. A majority of the members of the board constitutes a quorum
and a majority vote of a quorum present at any meeting governs all actions
taken by the board.

Sec. 9. Section 32-1801, Arizona Revised Statutes, is amended to

read:
32-1801. Arizona board of osteopathic examiners in medicine
and surgery; members: qualifications; oath;
removal

A. The Arizona board of osteopathic examiners in medicine and
surgery is established consisting of seven members WHO ARE appointed by
the governor PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. [One] [tA€H] member of the board shall be appointed each year
for a term of five years, to begin and end on April 15.

B> C. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the

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House Amendments to S.B. 1235

€- D. Two members of the board shall be public members who stratt
ARE not te in any manner connected with, or DO NOT have an interest in,
any school of medicine or any person practicing any form of healing or
treatment of bodily or mental ailments and who tras HAVE demonstrated an
interest in the health problems of tte THIS state. [The other five]
[THREE] members of the board [SHACE—BE-MEMBERSTHHO-HAVE-THEVER TAB THER
CICENSE-REVOREB—OR-SUSPENBEB—OR-THAVE-VOLUNFARTEY—SURRENDEREBTHETR-ETEENSE
FN -CTED—-OF-SUSPENSFON—-OR-REVOEATT NANDA ARE FORMER CT EENSEES Fi ARE
REFERED FROMTHE PRACTFTEE— BF 8S TEC PATHE ETHER EEE FAFA S ST AFE BRE
TAVE—AVACTB—ETEENSE FO PRACTICE 8 STECPA THEE HEBT ETE ANB ARE HOF

CURRENTE-PRACTTETNG. — FHtO-THEMBERS] shall have engaged in the practice of
medicine as an osteopathic physician in this state for at least five years
preceding their appointments, hold active licenses in good standing and,
at the time of appointment, be practicing medicine with direct patient
contact. In making appointments of each professional member of the board,
the governor shall consider a list of qualified persons submitted by the
Arizona osteopathic medical association and recommendations by any other
person. Members of the board shall continue in office until their
successors are appointed and qualified. Each board member, before
entering on trrs THE MEMBER'S duties, shall take an oath prescribed by law
and in addition thereto shall make an oath as to ts THE MEMBER'S
qualifications as prescribed in this section. to A board member may NOT
serve more than two consecutive [five-year] [FIVE-YEAR] terms.

B- £. The governor may remove A board members—+f—ttey—fatt MEMBER

WHO FAILS to attend three or more board meetings within twelve
months. This does not include telephonic meetings of the board. The
governor may also remove A _ board members MEMBER for malfeasance,
misfeasance or incompetence in thet office, unprofessional or
dishonorable conduct in ttetr office or unprofessional or dishonorable
conduct. The governor shall appoint a qualified replacement to fill a
vacant position for the unexpired portion of the term.

Sec. 10. Section 32-1902, Arizona Revised Statutes, is amended to
read:

32-1902. Arizona state board of pharmacy; members;

qualifications; terms; oath; immunity

A. The Arizona state board of pharmacy is established consisting of
the following members who are appointed by the governor:

1. [Six] [THREE] pharmacists, at least one of whom is a pharmacist
employed by a licensed hospital and at least one of whom is employed by a
community pharmacy and engaged in the day-to-day practice of pharmacy.

2. One pharmacy technician.

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OnNaOOP WME

House Amendments to S.B. 1235

3. [Iwo] [FRE] public members.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

By C. To be qualified for appointment:

1. A pharmacist must be licensed as a pharmacist in this state or
any other jurisdiction for a period of at least ten years and licensed as
a pharmacist and a resident in this state for a period of at least five
years immediately before the date of appointment.

2. Each public member must be a resident of this state for a period
of at least five years immediately before the date of appointment.

3. A pharmacy technician must be a practicing pharmacy technician
in this state or any other jurisdiction for at least five years and be
licensed as a pharmacy technician and a resident of this state for at
least five years immediately before the date of appointment. A pharmacy
technician appointed before July 1, 2009 does not have to meet the minimum
five year licensure requirement of this paragraph.

€> D. Each pharmacist and pharmacy technician member shall serve
for a term of five years. Public members may serve for a term of five
years unless removed by the governor. The public members shall after the
first of every year present a written report to the governor. Vacancies
occurring on the board other than by expiration of term of office shall be
filled for the unexpired portion of the term only.

B- E. On or before January 15 of each year in which a pharmacist
or a pharmacy technician is to be appointed, the executive director of the
pharmacy association of Arizona may submit to the governor a list of the
names of at least seven of its members who have been nominated by the
association>;— and who meet the requirements as provided in this section
for the next occurring vacancy on the board. The governor may make
appointments of licensed pharmacists and pharmacy technicians to the board
from the nominees on the list or from others having the necessary
qualifications.

=> F. Appointees to the board within thirty days after their
appointment shall take and subscribe to an oath or affirmation, before a
properly qualified officer, that they will faithfully and impartially
perform the duties of their office. The executive director shall file the
oath or affirmation with the secretary of state.

f> G. Members of the board are personally exempt from suit with
respect to all acts done and actions taken in good faith and in
furtherance of this chapter.

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ONO fP WM Fe

House Amendments to S.B. 1235

Sec. 11. Section 32-2002, Arizona Revised Statutes, is amended to
read:

32-2002. Board of physical therapy: members: appointment;
qualifications; terms; removal; reimbursement;
immunity

A. The board of physical therapy is established consisting of
members WHO ARE appointed by the governor pursuant to section 38-211,
EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. [Eour] [TG] members [SHACE—BE-HEMBERSTHHOHAVE-HEVER TAD HERR
CECENSE-REVOREB—OR-SUSPENBDEB—ORAAVE VOLUN FARTEY—SURRENBEREDFHEFR-ETEENSE
FN-CTEU—OF—SUSPENSTON—BR-REVOEATTON- ANB HOARE FORMER EFEENSEES AHO ARE
REFTRED—FROM-FHEPRACTTEE— OF PHYS TEAC THERA PAE SST ATE ORO HAVE
VACTD—tICENSE— FO — PRACTFEEE— PHY STEAL FER AP AND ARE HOF CURRENT
PRACTTETNES— THO-TMHEMBERS ] shall be physical therapists who are residents
of this state, possess an unrestricted license to practice physical
therapy in this state and have been practicing in this state for at least
five years before their appointment. One member shall be a_ physical
therapist assistant who is a resident of this state, possesses an
unrestricted license issued pursuant to this chapter and has’ been
performing selected interventions in this state for at least five years
before the person's appointment. The governor shall also appoint two
public members who are residents of this state and who are not affiliated
with, and do not have a financial interest in, any health care profession
but who have an interest in consumer rights.

By C. Board members’ serve’ staggered four-year terms. Board
members shall not serve for more than two successive four-year terms or
for more than ten consecutive years. By approval of a majority of the
board, a member's service may extend at the completion of a four-year term
until a new member is appointed or the current member is reappointed.

€> OD. If requested by the board, the governor may remove a board
member for misconduct, incompetence or neglect of duty.

By £. Board members are eligible for reimbursement of expenses
pursuant to title 38, chapter 4, article 2 to cover necessary expenses for
attending each board meeting or for representing the board in an official
board—approved BOARD-APPROVED activity.

=> F. A board member who acts within the scope of board duties,
without malice and in the reasonable belief that the person's action is
warranted by law is immune from civil liability.

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AnNOaOATNHRWDNM FE

FFP PHPWWWWWWWWWWDNMDNMDNYDNYDNYDNYDNYDNYNNYRPRP PRP RP Pee HE
FPWNHRrFOWOOANATBRWNHEFOW ANA NTARWNHEF OW ANDO BRWNHH OW

House Amendments to S.B. 1235

Sec. 12. Section 32-2062, Arizona Revised Statutes, is amended to
read:

32-2062. State board of psychologist examiners; members:
qualifications; appointments; terms; compensation:
immunity

A. The state board of psychologist examiners is established
consisting of ten members WHO ARE appointed by the governor pursuant to
section 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. Each member of the board shall be a citizen of the United States
and a resident of this state at the time of appointment. [Seven] [THREE]
members shall be licensed pursuant to this chapter. >—and [FOUR-HEMBERS
SHACK BETHEMNBERS FIMO TAYE TEV ER THAD THETR-ETEENSE-REVOREB—OR-SUSPENBED—OR
TAVE—VOCUNFARTEET—SURRENBEREB THER ETE ENSE FF FEU BF SUSPENSTON— BR
REVOCATTON ANB HOARE FORMER ETEENS EES HHO ARE REFEREB Ft Ft ES SFAFE-6R
OE ATE ENS EONBER_ FHS CHAPTER _ ANB ARE HOT CORRENTFET
PRACTTETNG;] Three MEMBERS shall be public members who are not eligible
for licensure. The board shall have at all times, except for the period
when a vacancy exists, [at least two members who are] [ONE—HENBER-HHO—1S]
licensed as [psychologists] [A—PSY€HOLOEGTST] and who [are] [tS—*]
full-time faculty [members from universities] [MEMBER—FROM-AUNTVERSTHTY]
in this state with a doctoral program in psychology that meets the
requirements of section 32-2071, [at least three] [TY@] members who are
psychologists in professional practice and [at least two members who are]
LONE—THEMBER int'6—_T3—*] behavior [analysts] [ANAEYSTF] in professional
practice and who [are members] [TS—A-HEMBER] of the committee on behavior
analysts. The public members shall not have a_ substantial financial
interest in the health care industry and shall not have a household member
who is eligible for licensure under this chapter.

C. Each member shall serve for a term of five years beginning and
ending on the third Monday in January.

D. A vacancy on the board occurring other than by the expiration of
term shall be filled by appointment by the governor for the unexpired term
as provided in subsection C of this section. The governor, after a
hearing, may remove any member of the board for misconduct, incompetency
or neglect of duty.

E. Board members shall receive compensation in the amount of one
tomdred—tottars $100 for each cumulative eight hours of actual service in
the business of the board and reimbursement of all expenses pursuant to
title 38, chapter 4, article 2.

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ANAT WNY FE

PPP HP HSPWWWWWWWWWWDMYDNDNYDNYDNYDNDYNDYNDY NDF RP EPP RP ee EE
FWNMRFODWDOANDA AP WNHEFDHWOANAABRWHHEHOWDANDOBRWNHH OW

House Amendments to S.B. 1235

F. Members of the board and its employees, consultants and test
examiners are personally immune from suit with respect to all acts done
and actions taken in good faith and in furtherance of the purposes of this
chapter.

Sec. 13. Section 32-2502, Arizona Revised Statutes, is amended to
read:

32-2502. Arizona regulatory board of physician assistants;

members; appointment; terms; immunity

A. The Arizona regulatory board of physician assistants is
established consisting of the following members:

1. Five physician assistants who hold a current regular license
pursuant to this chapter. The governor may appoint these members from a
list of qualified candidates submitted by the Arizona state association of
physician assistants. The governor may seek additional input = and
nominations before the governor makes the physician assistant
appointments.

2. Two public members who are appointed by the governor.

3. Two physicians who are actively engaged in the practice of
medicine and who are licensed pursuant to chapter 17 of this title, one of
whom supervises or collaborates with a physician assistant at the time of
appointment>— and who are appointed by the governor.

4. Two physicians who are actively engaged in the practice of
medicine and who [are] [tS] licensed pursuant to chapter 13 of this title,
one of whom supervises or collaborates with a physician assistant at the
time of appointment[.] and who are appointed by the governor.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

CEHOTITFHS FANBING—SUBSEECTEON 1 8 FTES SECTE ON ATLEAST FFP
PERCENT OF FEL TEENS ED HEMBERS 61 THE BO ARB SHALE BE-THEMBER SHO THAE
NEVER HAD THETR—CTEENSE REVOREB— BR _SUSPENBEB— BR THAVE_ VOLUN TAREE
SURRENDERED THEFTRETEENSE FIC FED 6FSUSPENSTON—-OR-REVO EATEN ANB AHO ARE
FORMER -CTCENSEES HHO ARE REFTREB-FROME-PRACTTEEF-FES—S TATE BRA HA EH
VACTB-CTEENSE-FO-PRACTTEE ANB ARE-HOF-EURRENFEY-PRACTEEANE J]

B- [B-] [C.] Before appointment by the governor OR BOARD, a
prospective member of the board shall submit a full set of fingerprints to
the governor for the purpose of obtaining a state and federal criminal
records check pursuant to section 41-1750 and Public Law 92-544. The
department of public safety may exchange this fingerprint data with the
federal bureau of investigation.

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House Amendments to S.B. 1235

€> (t-] [D.] The term of office of members of the board is four
years, to begin and end on July 1.

D> «[f] [E.] Each board member is eligible for appointment to not
more than two full terms, except that the term of office for a member WHO
IS appointed to fill a vacancy that is not caused by the expiration of a
full term is for the unexpired portion of that term and the governor may
reappoint that member to not more than two additional full terms. Each
board member may continue to hold office until the appointment and
qualification of that member's successor. The governor may remove a
member after notice and a hearing on a finding of continued neglect of
duty, incompetence or unprofessional or dishonorable conduct. That
member's term ends when the finding is made.

t> [G+] [E.] A board member's term automatically ends:

1. On written resignation submitted to the board chairperson or to
the governor.

2. If the member is absent from this state for more than six months
during a one-year period.

3. If the member fails to attend three consecutive regular board
meetings.

4. [EXCEPT-AS-PROVIDED-HYE-SUBSECTTON- EOF Fit SEETTON; ] Five years
after retirement from active practice.

> [te] [G.] Board members are immune from civil liability for
all good faith actions they take pursuant to this chapter.

Sec. 14. Title 32, Arizona Revised Statutes, is amended by adding
chapter 27, to read:

CHAPTER 27
HEALTH PROFESSION REGULATORY BOARD OVERSIGHT COUNCIL
ARTICLE 1. OVERSIGHT COUNCIL

32-2701. Definitions

IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. “HEALTH PROFESSIONAL" MEANS A PERSON WHO IS CERTIFIED OR
LICENSED PURSUANT 10: ‘CHAPTER 7, 8, 11, 13, 14, 15, 15.1, 16; 17, 18, 19,
19.1, 25, 29; 33, 34, 35, 39, 41 OR 42 OF THIS TITLE OR TITLE 36, CHAPTER
4, ARTICLE 6.

2. "HEALTH PROFESSION REGULATORY BOARD" MEANS ANY BOARD THAT
REGULATES ONE OR MORE HEALTH PROFESSIONALS IN THIS STATE.

3. "MARKET-SENSITIVE ACTION" MEANS ACTIONS OR DECISIONS BY A HEALTH
PROFESSION REGULATORY BOARD THAT CREATE BARRIERS TO MARKET PARTICIPATION
AND RESTRICT COMPETITION, INCLUDING:

(a) MODIFYING EXAMINATION PASSAGE SCORES.

(b) ADOPTING OR MODIFYING ADVERTISING RESTRICTIONS.

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House Amendments to S.B. 1235

(d) EXPANDING OR RESTRICTING THE SCOPE OF PRACTICE OF A LICENSEE OR
CERTIFICATE HOLDER.

(e) DEMONSTRATING A PATTERN OF DISCIPLINARY OR DISCRIMINATORY
ACTIONS THAT CREATE BARRIERS TO MARKET PARTICIPATION.

32-2702. Health profession regulatory board oversight

council; appointment; terms

A. THE HEALTH PROFESSION REGULATORY BOARD OVERSIGHT COUNCIL IS
ESTABLISHED CONSISTING OF THREE MEMBERS, EACH OF WHOM IS A_ CURRENT
EXECUTIVE DIRECTOR OF A HEALTH PROFESSION REGULATORY BOARD. THE GOVERNOR
SHALL APPOINT EACH MEMBER OF THE OVERSIGHT COUNCIL BY LOT AND IN THE
PRESENCE OF ALL CURRENT EXECUTIVE DIRECTORS OF THE HEALTH PROFESSION
REGULATORY BOARDS. THE INITIAL OVERSIGHT COUNCIL MEMBERS SHALL BE
APPOINTED ON OR BEFORE JANUARY 1, 2026 FOR STAGGERED THREE-YEAR TERMS. AN
EXECUTIVE DIRECTOR MAY NOT SERVE ON THE OVERSIGHT COUNCIL FOR AT LEAST TWO
FULL TERMS BEFORE REAPPOINTMENT. AN EXECUTIVE DIRECTOR MAY NOT REFUSE
APPOINTMENT TO THE COUNCIL.

B. AN EXECUTIVE DIRECTOR OF A HEALTH PROFESSION REGULATORY BOARD
WHO IS SERVING ON THE OVERSIGHT COUNCIL MAY NOT REVIEW OR OVERSEE ANY
MATTER RELATING TO THAT EXECUTIVE DIRECTOR'S HEALTH PROFESSION REGULATORY
BOARD.

C. OVERSIGHT COUNCIL MEMBERS MAY USE THEIR OWN BOARD STAFF AND
FACILITIES TO FACILITATE THE BUSINESS OF THE OVERSIGHT COUNCIL.

32-2703. Oversight council duties

A. THE OVERSIGHT COUNCIL SHALL REVIEW AND APPROVE OR DENY
MARKET-SENSITIVE ACTION TAKEN OR DECISIONS MADE BY A HEALTH PROFESSION
REGULATORY BOARD ON AND AFTER JANUARY 1, 2026. THE OVERSIGHT COUNCIL
SHALL MEET AT LEAST ONCE EACH MONTH UNLESS THERE IS NO BUSINESS FOR THE
OVERSIGHT COUNCIL TO CONSIDER.

B. A HEALTH PROFESSION REGULATORY BOARD SHALL FORWARD ANY
MARKET-SENSITIVE ACTION TAKEN OR DECISION MADE TO THE OVERSIGHT COUNCIL
FOR REVIEW. THE OVERSIGHT COUNCIL MAY RECEIVE INFORMATION RELATING TO
MARKET-SENSITIVE ACTIONS TAKEN OR DECISIONS MADE BY A HEALTH PROFESSION
REGULATORY BOARD FROM ANY LICENSEE, CERTIFICATE HOLDER OR OTHER AFFECTED
PERSON. THE OVERSIGHT COUNCIL SHALL NOTIFY THE HEALTH PROFESSION
REGULATORY BOARD WITHIN TEN BUSINESS DAYS AFTER RECEIVING A REQUEST TO
REVIEW AN ALLEGED MARKET-SENSITIVE ACTION. THE OVERSIGHT COUNCIL SHALL
EITHER AGREE WITH THE ACTION TAKEN OR DECISION MADE OR REFER THE ISSUE
BACK TO THE HEALTH PROFESSION REGULATORY BOARD FOR RECONSIDERATION WITHIN
NINETY DAYS AFTER RECEIVING THE MARKET-SENSITIVE ACTION FOR REVIEW. THE
OVERSIGHT COUNCIL'S DECISION SHALL INCLUDE A SUMMARY OF THE DECISION AND
THE JUSTIFICATION FOR THE DECISION.

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ONODONP WDM FE

House Amendments to S.B. 1235

Sec. 15. Section 32-2902, Arizona Revised Statutes, is amended to
read:

32-2902. Board of homeopathic and integrated medicine

examiners; members; terms; removal: immunity

A. The board of homeopathic and integrated medicine examiners is
established consisting of the following members WHO ARE appointed by the
governor:

1. Two public members.

2. tt 11 tarrary—t_ 2617 four trembers_who—are—ticensed-purstant—to
secttor—32-29t2-_subsectton A;

Sv) 2.) «Beginning termmary—t 2017, _ [Five] [THREE] members [HHO-HAVE
HEVER THAD FET RCT ENSE-_ REV OREB— BR _SUSPENBED— BRT FV OETA EE
SURRENBEREB—ATETR-ETEENSE FN TE BF SUSPENSTON-OR-REVOCATTON- AND HHO ARE
FORMER-CTEENSEES HHO -ARE- REFAR EB FROM TATE PRAC FEE EOF HOMES PATHE HEBTETNE
FR OFATS—STATFE-OR AO HAE AHAB ETEENSE--FO-PRACTTEEE HOMES PATHTEHMHEBT ETE
ANB—-ARE-NOT-EGRRENFET-PRACTTEANG|

3 THHO-HEMBERS] who are licensed pursuant to this chapter, one of
whom is licensed pursuant to section 32-2912, subsection B.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

€- OD. Board members serve staggered three-year terms ending on
June 30. Board members shall not serve more than three consecutive terms.
A board member may continue to serve until that member's replacement takes
office.

B- £. Board members shall be residents of this state for at least
three consecutive years immediately before their appointment.

t> F. The governor may remove a board member from office because
of that member's neglect of duty, malfeasance, misfeasance, incompetence
or unprofessional or dishonorable conduct.

f- G. A board member's term of office automatically ends if that
member is absent from this state for more than six months or if that
member fails to attend three consecutive regularly scheduled board
meetings.

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OnNODOHR WD

House Amendments to S.B. 1235

€> 4H. Board members and board employees are immune from civil
liability for any good faith action they take to implement this chapter.

Sec. 16. Section 32-3252, Arizona Revised Statutes, is amended to
read:

32-3252. Board of behavioral health examiners: members;
appointment; qualifications; terms; compensation;
immunity; training program

A. The board of behavioral health examiners is established
consisting of the following members WHO ARE appointed by the governor:

1. The following professional members:

(a) Two members who are licensed in social work pursuant to this
chapter, at least one of whom is a licensed clinical social worker.

(b) Two members who are licensed in counseling pursuant to this
chapter, at least one of whom is a licensed professional counselor.

(c) Two members who are licensed in marriage and family therapy
pursuant to this chapter, at least one of whom is a licensed marriage and
family therapist.

(d) Two members who are licensed in addiction counseling pursuant
to this chapter, at least one of whom is a licensed independent addiction
counselor.

2. Four public members.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

CEH EFS TAN BING —SUBSECTEON A OF FATES SECT ATLEAST FEF
PERCENT—OF—THE—CTEENSEDHEMBERS— OFTHE BOARB— SHALE BE HEMBER SHO TTA
NEVER HAD TFHEFR—CTEENSEREVOREB— BR SUSPENBEB— OR THAE FB EON AR EE
SURRENDERED —THETR-ETEENSE-TN-ETED— OF‘ SUSPENSTON—OR-REVCEAFE GH ANB FORMER
CTCENSEES THHHO ARE RETFAREB-F ROMP RACTTEE FIFA S—STATE BRA HAVE A HAETB
CEEENSE—-TFO-PRACTTEE-ANB-ARE-NOTEORRENFE PRACTICING? J

B- [tv] ([C.] Before appointment by the governor OR BOARD, a
prospective member of the board shall submit a full set of fingerprints to
the governor for the purpose of obtaining a state and federal criminal
records check pursuant to section 41-1750 and Public Law 92-544. The
department of public safety may exchange this fingerprint data with the
federal bureau of investigation.

€ [tv] [D.] Each professional board member shall:

1. Be a resident of this state for at least one year before
appointment.

2. [EXCEPT —AS—PROVEDED—FY-SUBSECTTON—_€—0F FAS SECTION; ] «Be an

active licensee in good standing.

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ANDO HPWM

House Amendments to S.B. 1235

3. Have at least five years of experience in an area of behavioral
health licensed pursuant to this chapter.

B- [t+] [E.] Each public board member shall:

1. Be a resident of this state for at least one year before
appointment.

2. Be at least twenty-one years of age.

3. Not be licensed or eligible for licensure pursuant to this
chapter unless the public member has been retired from active practice for
at least five years.

4. Not currently have a substantial financial interest in an entity
that directly provides behavioral health services.

5. Not have a household member who is licensed or eligible for
licensure pursuant to this chapter unless the household member has been
retired from active practice for at least five years.

& (@-] [E.] The term of office of board members is three years,
to begin and end on the third Monday in January. A member shall not serve
more than two full consecutive terms.

ft [tr] [G.] The board — shall annually elect a cthetrmer
CHAIRPERSON and secretary-treasurer from its membership.

G@> [tt] [H.] Board members are eligible to receive compensation
of not more than $85 for each day actually and necessarily spent in the
performance of their duties.

H#> [dv] [1.] Board members and personnel are personally immune
from suit with respect to all acts done and actions taken in good faith
and in furtherance of the purposes of this chapter.

t [ky] [J.] Each board member must complete a_ twelve-hour
training program that emphasizes responsibilities for administrative
management, licensure, judicial processes and temperament within one year
after appointment to the board.

Sec. 17. Section 32-3402, Arizona Revised Statutes, is amended to
read:

32-3402. Board of occupational therapy examiners; members;

qualifications: terms; compensation; immunity

A. The board of occupational therapy examiners is established and
consists of five members WHO ARE appointed by the governor PURSUANT TO
SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. Each board member shall be a resident of tte THIS state at the
time of appointment. The governor shall appoint [CFHE-FOCCOHHTECHENBERST

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ONO OP WM FE

House Amendments to S.B. 1235

t:] two persons who are not engaged, directly or indirectly, in the
provision of health care services to serve as public members. [Ihe other

three]
[2d] members [shall have] [HHO—HAVECHEVER HAD THETR-CTEENSE

PRACTTEHE-;

3 ONETHEMBER—THH6-_TIAS] at) «least three years of experience in
occupational therapy or teaching in an accredited occupational therapy
education program in this state immediately before appointment and statt
be WHO IS licensed under this chapter.

C. The governor may select board members from a list of licensees
submitted by the Arizona occupational therapy association>—irc> or any
other appropriate organization.

B- OD. Before appointment by the governor OR BOARD, a prospective
member of the board shall submit a full set of fingerprints to the
governor for the purpose of obtaining a state and federal criminal records
check pursuant to section 41-1750 and Public Law 92-544. The department
of public safety may exchange this fingerprint data with the federal
bureau of investigation.

€- £—. The term of office of board members is three years to begin
and end on the third Monday in January. A member shall not serve more
than two consecutive terms.

B> F. The board, at its first regular meeting after the start of
each calendar year and as necessary, shall elect a chairperson and other
officers from among its members. The board shall meet at least once each
quarter in compliance with the open meeting requirements of title 38,
chapter 3, article 3.1 and shall keep an official record of these
meetings. Other meetings may be convened at the call of the chairperson
or the written request of any two board members. A majority of the
members of the board shall constitute a quorum.

t> G. Each member of the board is eligible to receive compensation
in the amount of ome—houmdred—dottars $100 for each regular or special
board meeting the member attends and is eligible for reimbursement for all
expenses necessarily and properly incurred in attending board meetings.

> H. A board member is immune from civil liability for any
actions that are within the scope of the board member's duties if they are
taken without malice and in the reasonable belief that they are warranted
by law.

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ONODOHP WN FE

House Amendments to S.B. 1235

Sec. 18. Section 32-3502, Arizona Revised Statutes, is amended to
read:

32-3502. Board of respiratory care examiners: members;

appointment; qualifications; removal

A. The board of respiratory care examiners is established
consisting of seven members WHO ARE appointed by the governor PURSUANT TO
SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. Each board member shall be a resident of this state at the time
of appointment. The governor shall appoint:

1. Three licensed respiratory care practitioners, at least one of
whom is a technical director of a respiratory care department or
respiratory care corporation or an officer or faculty member of a college,
school or institution engaged in respiratory therapy education and at
least one of whom is involved in direct patient care.

2. A physician who is licensed pursuant to chapter 13 or 17 of this
title and who is knowledgeable in respiratory care.

3. Two public members who are not engaged, directly or indirectly,
in the provision of health care services.

4. One hospital administrator.

[ETOH HS TANDING— ‘SUBSECTION B— 6F—THES SEC TFEON ATLEAST FHF FY
PERCENT OFTHE TEENS EB HEMBERS— 6 FFE BO ARB SHALE BE-THEMBERS AIHA
NEVER HAD — THE TRF TEENSE REVERED 8R—_SUSPENBEB— BR HAVE VO COUN FAR ELEY
SURRENDERED THETR-ETEENSE FET EC—6F—SUSPENSTON—-BR-REVOEAT TON ANB HOARE
FORMER TEENS EES THiINO ARE-REFEREB-FROM-P RAC TFEEE FAFA S ‘ST AFE BORAT
VACTBD-ETEENSE—FO-PRACTTEE-ANBARE-NOF-EURREN FEY PRACTEETNG? J

B- [Br] [C.] Before appointment by the governor OR BOARD, a
prospective member of the board shall submit a full set of fingerprints to
the governor for the purpose of obtaining a state and federal criminal
records check pursuant to section 41-1750 and Public Law 92-544. The
department of public safety may exchange this fingerprint data with the
federal bureau of investigation.

€& (ete) (D.] [exter —AS—PROVIDED—Ht SUBSECTION t— O6F TiS
SECTTON;] The respiratory care practitioner members shall:

1. Have at least five years of experience in respiratory care or
respiratory therapy education.

2. Have been employed actively in direct patient care, respiratory
therapy education or management or supervision of respiratory care for at
least three years immediately preceding appointment.

3. Be licensed pursuant to this chapter.

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ONO AHP WDM

House Amendments to S.B. 1235

B- [f+] [E.] The governor may appoint the licensed respiratory
care practitioners from a list of seven qualified persons submitted to the
governor by the Arizona society for respiratory care.

t [f+] [E.] The governor may appoint the physician member from a
list of three qualified persons submitted to the governor by the Arizona
medical association and the Arizona osteopathic medical association.

tf [ty] [G.] The governor may appoint the hospital administrator
member from a list of three qualified persons submitted to the governor by
the Arizona hospital association.

G> (t] [H.] The term of office of each member is three years, to
begin and end on June 30. A member shall not serve for more than two
consecutive terms.

t+ [dv] [L.] The governor may remove board members for neglect of
duty, malfeasance or misfeasance.

Sec. 19. Section 32-3902, Arizona Revised Statutes, is amended to
read:
32-3902. Acupuncture board of examiners; members;
qualifications: terms; removal; compensation;
immunity

A. The acupuncture board of examiners is established consisting of
the following members who are appointed by the governor:

treensedpurstant—_tottresame_ttrapter—

4> #1. Begiming—cdeancary—t7>—2022, One member who is certified or
licensed to practice auricular acupuncture or acupuncture pursuant to this
chapter.

Sv 2. Begimnmg—dencary—260>—2022, Three members who are licensed
to practice acupuncture pursuant to this chapter and who have practiced
acupuncture in this or any other state for at least one year. wWot—more
that Two of these members may NOT be graduates of the same school or
college of acupuncture. The governor may make these appointments from a
list of names submitted by a statewide acupuncture society.

6—For—appotrttents—mate—on—or—after—tanuary 1852622, two

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OnNATHPWNM FE

House Amendments to S.B. 1235

Si: TWO consumers who meet all of the following:

(a) Are not employed in a health profession.

(b) Do not have any pecuniary interest in a school of medicine or
health care institution.

7 4. For—appommtments—mate—on—or—after—tanuary—_t8>— 2622, One
member who is licensed pursuant to chapter 8, 13, 14, 17 or 29 of this
title.

B. THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

LE HOTALE AS FAN TYE —‘SUBS ECT ON 4 8 FFAS SEC THN AT EEAST FTF
PERCENT—OF— FEC TEENSEBTHEMBERS— 6 FFT BEARB— STALE BETHEMBERS FIO HAE
NEVER—HAD— FHETR—CTEENSE- REVO RED BR SUSPENBED— BR HAVE FO LUNFARELY
SURRENDEREBTHETR-CTEEENSE FALE TE 6 FF SUSPENSTON-OR-REV OEAT LONE ANB AHH ARE
FORMER -CECENSEES THO ARE REFAREBFRET-PPRACTTEEF-FAS—SFAFE- BRA HAE
VACEB-CTEENSE-FO-PRAECTTEE-ANB-ARE-NOTEGRRENFEN—-PRACTTETNG J

8> [8+] ([C.] Before appointment by the governor OR BOARD, a
prospective member of the board shall submit a full set of fingerprints to
the governor for the purpose of obtaining a state and federal criminal
records check pursuant to section 41-1750 and Public Law 92-544. The
department of public safety may exchange this fingerprint data with the
federal bureau of investigation.

€> [t+] [D.] Board members shall be residents of this state for
at least one year immediately preceding their appointment.

B- [f+] ([E.] Board members serve three-year terms to begin and
end on the third Monday in January. A member shall not serve more than
two consecutive terms.

t «€6[@-] CE.] The board shall meet in January of each year to
elect a chairperson and vice chairperson.

fF [tr] [G.] The board shall meet quarterly and at the call of
the chairperson or a majority of board members.

G> [tt] [H.] Board members are eligible to receive compensation
in an amount not to exceed $50 per day for each day of actual service in
the business of the board and are eligible for reimbursement of expenses
necessarily and properly incurred in attending board meetings.

tty = [dv] [1L.] The governor may remove a board member from office
for malfeasance, dishonorable conduct or unprofessional management of
board duties.

t [ke] [d.] The term of any member automatically ends_ on
resignation or absence from this state for a period of at least six

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ANAT HP WM FE

PPP HPF WWWWWWWWWWDNHDNMNDNYDNYNNDNNANKPRE HPP PB HEHE EE
FWONMRFOTODANDAARPWNHRFDOWO ANAT BWHEFOWODNDOBRWNHYHOWw

House Amendments to S.B. 1235

months. The governor shall fill vacancies for an unexpired portion of a
term in the same manner as regular appointments.

dy [tv] [K.] Board members and board employees are not subject to
civil liability for any act done or proceeding undertaken or performed in
good faith and in furtherance of the purposes of this chapter.

Sec. 20. Section 32-4102, Arizona Revised Statutes, is amended to
read:

32-4102. Board of athletic training: members: terms: removal:

compensation; immunity

A. The board of athletic training is established consisting of the
following members WHO ARE appointed by the governor:

1. [Ihree] [F¥6] athletic trainers [?Heé-BOTt-

2. BHE-MEMBER] who [are reat dpnts' [TS-*-RESTBDENF] of this state,
WHO [possess] [POSSESSES] an unrestricted license to practice athletic
training in this state and WHO [have] [HAS] been practicing in this state
for at least five years immediately preceding their appointment. [Ihe
governor may make these appointments from a list of names submitted by a
statewide athletic training association or any other group or person. The
initial three appointees are not required to be licensed pursuant to this
chapter at the time of selection but shall meet all of the qualifications
for licensure as prescribed by this chapter.]

{2.] [3+] Two public members who are residents of this state and
who are not affiliated with and do not have any financial interest in any
health care profession but who have an interest in consumer rights.

[BFE BBV ERNOR AYRE THE TPP OEE TS PURSUANT --FO—-SUB SECTION

¥ U a a \ Yu a U a UY i FATY U i F U F i Ve

[€>] [B.] THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE
GOVERNOR PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B- [87] [C.] Board members serve staggered five—year FIVE-YEAR
terms that begin and end on the third Monday in January. Board members
shall not serve for more than two successive five year terms or for more
than ten consecutive years.

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OANODOH WD FE

House Amendments to S.B. 1235

€> [tv] [D.] If requested by the board, the governor may remove a
board member for misconduct, incompetence or neglect of duty.

D> [fr] [E.] Board members are eligible for reimbursement of
expenses pursuant to title 38, chapter 4, article 2 to cover necessary
expenses for attending each board meeting or for representing the board in
an official board-approved BOARD-APPROVED activity.

& ([@v] [E.] A board member who acts within the scope of board
duties, without malice and in the reasonable belief that the person's
action is warranted by law is not subject to civil liability.

Sec. 21. Section 32-4202, Arizona Revised Statutes, is amended to
read:

32-4202. Board of assage her : members: terms;

compensation; immunity

A. The board of massage therapy is established consisting of the
following members appointed by the governor:

1. Two massage therapists who are residents of this state, who
possess an unrestricted license to practice massage therapy in this state
and who have been practicing in this state for at least five years
immediately preceding their appointment. The governor may make these
appointments from a list of names submitted by a statewide massage or
bodywork therapy association, or both, or any other group or person.

2. Three public members who are residents of this state and who are
not affiliated with and do not have any financial interest in any health
care profession but who have an interest in consumer rights or have a
background in compliance or law enforcement issues. At least one public
member must be actively involved in programs or services that help to
reduce or prevent human trafficking.

B. ALL MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE GOVERNOR
PURSUANT TO SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

[OE AFCEAST HIF FY PERE ENT OF FETE ENSEBHEMBERS— OFTHE BOARD
SHACE-BEHHEMBERS THO THAVE-TEVER FAB -FHETR-ETEENSE-REVOREB—OR--SUSPENBEB— OR
TAVE—VOCUNFART EY _ SURRENBER ED FHEER CFE ENS E— _ FIFE 6 F—_SUSPENST ON BR
REVOCATTON ANDO ARE FORMER TEENS EES AE ARE- REFER EB FROM FE PRAC THEE
OF-HASSAGE THERAPY TAFE SST ATE BRATHAN T AEE TEENSE-F0-PRACTTEE
HASSAGE-FHERAPY-ANB-ARE-NOTECURRENFE TP RACTTETNG J

B> «€6[Bv]) «6[C.] Board members serve staggered five-year terms that
begin and end on the third Monday in January. Board members shall not
serve for more than two successive five-year terms or for more than ten
consecutive years, except that the term of office for a member of the
board appointed to fill a vacancy that occurs before the expiration of a

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OnNaOnNP WDM FE

House Amendments to S.B. 1235

full term is for the unexpired portion of that term, and the governor may
reappoint that member to not more than two additional full terms.

€ [tv] [D.] If requested by the board, the governor may remove a
board member for misconduct, incompetence or neglect of duty.

B- ([f-] [E.] Board members are eligible to receive compensation
in the amount of $100 per day for each day of actual service in the
business of the board and for reimbursement of expenses pursuant to title
38, chapter 4, article 2 to cover necessary expenses for attending each
board meeting or for representing the board in an official board approved
activity.

=> [@v] [E.] A board member who acts within the scope of board
duties, without malice and in the reasonable belief that the member's
action is warranted by law is not subject to civil liability.

Sec. 22. Section 36-446.02, Arizona Revised Statutes, is amended to
read:

36-446.02. Board of examiners; members; terms; meetings;

quorum; vacancies; compensation

A. The board of examiners of nursing care institution
administrators and assisted living facility managers is established
consisting of eleven members WHO ARE appointed by the governor PURSUANT TO
SECTION 38-211, EXCEPT THAT:

1. IF THE GOVERNOR FAILS TO FILL A PUBLIC MEMBER VACANCY WITHIN ONE
YEAR AFTER THE POSITION BECOMES VACANT, THE BOARD MAY FILL THE PUBLIC
MEMBER POSITION BY A MAJORITY VOTE.

2. IF THE SENATE FAILS TO CONFIRM OR REJECT AN APPOINTEE WITHIN ONE
YEAR AFTER THE GOVERNOR'S APPOINTMENT, THE APPOINTEE IS DEEMED CONFIRMED.

B. The board shall include:

1. One administrator who holds an active license issued pursuant to
this article or who is retired.

2. One assisted living facility manager who holds an active license
issued pursuant to this article or who is retired.

3. One administrator of a nonprofit or faith-based skilled nursing
facility who ev7tter holds an active license issued pursuant to this
article or who is retired.

4. One administrator of a proprietary skilled nursing facility who
ertter holds an active license issued pursuant to this article or who is
retired.

5. Two managers of an assisted living center who evtter hold an
active license issued pursuant to this article or who are retired.

6. One manager of an assisted living home who evtter holds an
active license issued pursuant to this article or who is retired.

7. One public member who represents an organization that advocates
for the elderly.

8. One person who is a family member of EITHER a resident or a
person who was a resident in the previous three years in either a skilled

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ONO WNHEHE

House Amendments to S.B. 1235

nursing facility or an assisted living facility at the time the person is
appointed to the board.

9. One person who is a current or former resident of a skilled
nursing facility or an assisted living facility.

10. One public member who represents an organization that advocates
for individuals with Alzheimer's disease, dementia or other related
neurocognitive diseases or disorders.

[C. The board may not have more than three board members who are
appointed pursuant to subsection B, paragraphs 1 through 6 of this section
and who are retired. Each board member specified in subsection B,
paragraphs 1 through 6 of this section who is retired must have had an
active license issued pursuant to this article within the previous two
years at the time of appointment to the board and may not have had any
disciplinary action taken against the person's license or had a license
issued pursuant to this article revoked. ]

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PRACTICING ]

D. Board members who are not affiliated with a nursing care
institution or an assisted living facility shall not have a direct
financial interest in nursing care institutions or assisted living
facilities.

E. A board member shall not serve on any other board relating to
long-term care during the member's term with the board.

F. The term of a board member automatically ends when that member
no longer meets the qualifications for appointment to the board. The
board shall notify the governor of the board vacancy.

G. Board members who are not affiliated with a nursing care
institution or an assisted living facility shall be appointed for two-year
terms. Board members who are the administrator of a nursing care
institution or the manager of an assisted living facility shall be
appointed for three-year terms.

H. A board member shall not serve for more than two consecutive
terms.

I. The board shall meet at least twice a year.

J. A majority of the board members constitutes a quorum.

K. Board members are eligible to receive compensation as determined
pursuant to section 38-611 for each day actually spent performing their

duties under this chapter.
L. A board member who is absent from three consecutive regular
meetings or who fails to attend more than fifty percent of board meetings

- 28 -
WOON ADAH WDNH HE

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APWNHMHERFOWOANATAHPWNHORF OW AN DATNHPWNHRFOW AN DAN HRWNHHO

House Amendments to S.B. 1235

over the course of one calendar year vacates the board member's position.
The board shall notify the governor of the vacancy.
Sec. 23. Health profession regulatory boards; report; intent;

delayed repeal
A. On or before November 1, 2025, each health profession regulatory

board shall submit a report to the governor, the president of the senate
and the speaker of the house of representatives, and shall provide a copy
to the secretary of state, outlining the laws, rules and _ internal
processes that dictate the following:

1. All requirements for each type of license or certificate issued
by the board, including:

(a) Education and training requirements.

(b) Continuing education requirements.

(d) Application and initial and renewal licensing and certification
fees.

(e) Required background checks and any offenses that would preclude
licensure or certification.

2. How the board receives and investigates complaints and the types
of disciplinary authority the board possesses, including appeal processes.

3. The number of full-time employees of the board and their
corresponding duties.

4. Hiring, onboarding and termination of employees of the board.

5. A description of documents and discipline records retention.

6. A description of current contracts with third-party vendors and
the services being provided by the vendors.

7. A description of board positions, including qualifications, term
length and any prohibitions on consecutive appointments.

B. This legislature intends that this report’ provide’ the
legislature adequate information to facilitate the revision = and
consolidation of statutes governing each health profession regulatory
board in an effort to create uniformity and consistency in application
while allowing for necessary exceptions essential to the operation and
regulatory authority of each board.

C. This section is repealed from and after June 30, 2026.

<<Sec— 24. Re tentiorofnenbers

Av Hotwitthstamtinrg—sectton—32-862,—_aArizora—Revtsed—_Statutes,_as

- 29 -
ANA TNHWNHE

House Amendments to S.B. 1235

- 30 -
OANAAHPWNHEHE

House Amendments to S.B. 1235

- 31 -
House Amendments to S.B. 1235

FPOWO ON DO HPWNDM FE

= —

12 Enroll and engross to conform
13 Amend title to conform

JEFF WENINGER

1235WENINGER
03/24/2025
11:09 AM

C: MH

- 32 -
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1235

DATE March 25, 2025 MOTION: f y PA

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

SAWNIIVARIN, AIX

oa O

APPROVED: c be — tbh SEERETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT__/O
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DP 5-2-0-0 | 3™ Read 16-13-1-0

SB 1229: planning; home design; restrictions; prohibition.
Sponsor: Senator Bolick, LD 2
Committee on Commerce

Overview
Prescribes municipal restrictions relating to home design and development standards for
single-family homes.

History

Statute requires each municipality's planning agency and governing body to prepare and
adopt, in coordination with the Arizona State Land Department, a comprehensive, long range
general plan for the development of the municipality. The general plan must include a
statement of community goals and development policies, including maps and plan proposals

(A.R.S. § 9-461.05).

Municipalities, for conserving and promoting the public health, safety and general welfare,
may adopt zoning ordinances that: 1) regulate the use of buildings, structures and land
between agriculture residence, industry and business; 2) regulate the location, height, bulk,
number of stories and size of buildings and structures, the size and use of lots, yards, courts
and other open spaces, the percentage of a lot that may be occupied by a building or structure,
access to incident solar energy and the intensity of land use; 3) establish requirements for
off-street parking and loading; 4) establish and maintain building setback lines; and 5)
establish floodplain and age-specific community zoning districts and districts of

historical significance (A.R.S. § 9-462.01).

Provisions

Home Design

1. Prohibits a municipality from interfering with a home buyer's right to choose the features,
amenities, structure, floor plan and interior and exterior design of a home. (Sec. 1)

2. Prohibits a municipality from requiring:
a) a shared feature or amenity that would require certain associations to maintain or
operate the feature or amenity, unless required by federal law; or
b) screening, walls or fences on residential property. (Sec. 1)

38. Specifies the home design provisions:
a) do not supersede applicable building codes, fire codes or public health and safety
regulations;
b) do not apply to lots or parcels that are located on tribal land, land in a high noise or
accident potential zone of a military airport or ancillary military facility; and
c) apply to developments constructed after the effective date, in a municipality with a
population of more than seventy thousand persons. (Sec. 1)

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

SB 1229
Initials Page 1 Commerce

ATTACHMENT ||
Home Size

4. Prohibits municipalities from adopting or enforcing any code, ordinance, regulation or
other legal requirement establishing:

a) minimum lot sizes that are greater than 3,000 square feet for new developments that
are 5 or more acres in size and that will be platted and located in an area zoned as
single-family residential;

b) minimum square footage or dimensions for a single-family home that are more than
the minimum square footage or dimensions the municipality requires for any other
type of dwelling unit;

c) maximum or minimum lot coverage for a single-family home and any accessory
structures on a lot less than 10,000 square feet;

d) minimum building setbacks for a single-family home that are more than 5 feet from
the side lot lines and 10 feet from the front and rear lot lines; and

e) design, architectural or aesthetic elements for a single-family home, except for a
single-family home on land that is designated as a district of historical significance or
an area that is designated as historic on the national register of historic places. (Sec.
1)

5. Authorizes a municipality to:

a) enforce adopted minimum lot sizes greater than 3,000 square feet where multiple lots
smaller than 5 acres with existing dwelling units are aggregated together;

b) enforce adopted minimum setbacks for a portion of a home that is occupied by a garage
facing the street in which the minimum front setback may not exceed 18 feet from the
back of the sidewalk or lot line; and

c) allow smaller lot sizes and smaller setbacks than those prescribed. (Sec. 1)

6. Allows a municipality to require:
a) the preparation and submission of acceptable electric and water utility plans and

specifications; and
b) the construction of or payment for necessary public services needed to serve the new

single-family homes. (Sec. 1)

7. Specifies the home size provisions:

a) do not supersede applicable building codes, fire codes, utility clearance requirements,
utility easements, minimum parking requirements or public health and safety
regulations;

b) do not apply to lots or parcels that are located on tribal land, on land in high noise or
accident potential zone of a military airport or ancillary military facility; and

c) apply to developments constructed after the effective date, in a municipality with a
population of more than seventy thousand persons. (Sec. 1)

Miscellaneous

8. Includes language relating to Legislative findings and determinations regarding housing
shortages, municipal restrictive regulations, property rights and preemption of further
regulating a property owner's right to use their property. (Sec. 1)

9. Defines building code, fire code, fire code official and shared feature or amenity. (Sec. 1)

10. Cites act as the "Arizona Starter Homes Act". (Sec. 2)

SB 1229
Initials Page 2 Commerce
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Oo re KF DO ON DBO B&B WH DH FO

Fifty-seventh Legislature Commerce
First Regular Session S.B. 1229

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1229

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:
"Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes,
is amended by adding section 9-461.19, to read:

9-461.19. Municipalities: starter homes; development;

restrictions; applicability; definitions

A. BEGINNING JANUARY 1, 2027, A MUNICIPALITY WITH A POPULATION OF
MORE THAN THIRTY THOUSAND PERSONS SHALL ADOPT ZONING REGULATIONS THAT
PROVIDE A THIRTY PERCENT DENSITY BONUS TO ANY NEW SINGLE-FAMILY RESIDENTIAL
DEVELOPMENT LARGER THAN FIVE CONTIGUOUS ACRES THAT DEDICATES AT LEAST
THIRTY PERCENT OF THE DEVELOPMENT FOR THE CONSTRUCTION OF STARTER
HOMES. THE DENSITY BONUS DOES NOT REQUIRE OR PROHIBIT A MUNICIPALITY FROM
APPROVING MORE THAN THIRTY PERCENT OF ANY DEVELOPMENT AS STARTER HOMES.

B. THE ZONING REGULATIONS OF A MUNICIPALITY WITH A POPULATION OF
MORE THAN THIRTY THOUSAND PERSONS MAY NOT REQUIRE FOR A STARTER HOME THAT
IS DEVELOPED PURSUANT TO SUBSECTION A OF THIS SECTION ANY OF THE FOLLOWING:

1. A MINIMUM LOT SIZE THAT IS THREE THOUSAND SQUARE FEET OR MORE.

2. A MINIMUM FRONT SETBACK THAT IS TWENTY FEET OR MORE.

3. A MINIMUM REAR SETBACK THAT IS TEN FEET OR MORE.

4. SIDE SETBACKS THAT HAVE A COMBINED TOTAL OF FIFTEEN FEET OR MORE,
EXCEPT AS NECESSARY TO COMPLY WITH PUBLIC HEALTH AND SAFETY STANDARDS.

5. REAR YARD PATIOS.

6. REAR YARD LANDSCAPING, NOT INCLUDING STORMWATER DRAINAGE
REQUIREMENTS AND WATER CONSERVATION REQUIREMENTS.

ATTACHMENT |Z.
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Fo DOD ON DT fF WHF DGD wD DN DOM BR WHY HO

House Amendments to S.B. 1229

7. APPROVAL OF THE INTERIOR FLOORPLAN, EXCEPT FOR THE PURPOSE OF
ENSURING COMPLIANCE WITH ALL APPLICABLE BUILDING CODES AND FIRE CODES.

8. MINIMUM OR MAXIMUM LOT COVERAGE.

C. THE ZONING REGULATIONS OF A MUNICIPALITY WITH A POPULATION OF
MORE THAN THIRTY THOUSAND PERSONS MAY NOT REQUIRE FOR A NEW SINGLE-FAMILY
RESIDENTIAL DEVELOPMENT THAT IS DEVELOPED PURSUANT TO SUBSECTION A OF THIS
SECTION ANY OF THE FOLLOWING:

1. PRIVATELY OWNED COMMON IMPROVEMENTS OR COMMUNITY-OWNED FACILITIES
THAT INCLUDE:

(a) A MONUMENT ENTRY SIGN.

(b) A WATER FOUNTAIN.

2. NONFUNCTIONAL TURF.

3. LANDSCAPING OF NONNATIVE PLANTS AND TREES.

4. A FREESTANDING SIDE WALL, EXCEPT TO PROVIDE SCREENING ALONG
ARTERIAL STREETS OR TO SEPARATE A NONRESIDENTIAL AREA OR AREAS OF
INCOMPATIBLE USE.

D. THIS SECTION DOES NOT APPLY TO LAND THAT IS LOCATED IN ANY OF THE
FOLLOWING:

1. AN AREA THAT IS_ DESIGNATED AS A_ DISTRICT OF HISTORICAL
SIGNIFICANCE PURSUANT TO SECTION 9-462.01, SUBSECTION A, PARAGRAPH 10.

2. AN AREA THAT IS DESIGNATED AS HISTORIC BY A MUNICIPALITY.

3. AN AREA THAT IS DESIGNATED AS HISTORIC ON THE NATIONAL REGISTER
OF HISTORIC PLACES.

4. AN AREA THAT IS LOCATED IN THE VICINITY OF A MILITARY AIRPORT OR
ANCILLARY MILITARY FACILITY AS DEFINED IN SECTION 28-8461.

5. AN AREA THAT IS LOCATED IN THE VICINITY OF A FEDERAL AVIATION
ADMINISTRATION COMMERCIALLY LICENSED AIRPORT OR A GENERAL AVIATION OR
PUBLIC AIRPORT AS DEFINED IN SECTION 28-8486.

6. A MASTER PLANNED COMMUNITY OR PLANNED AREA DEVELOPMENT THAT HAS
BEEN APPROVED BY ORDINANCE BEFORE THE EFFECTIVE DATE OF THIS SECTION.

wo On DO & WO MH KF

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ro 0 DOWD NSN DO FF Ww DYH KF DOD oDB BN DD BR WH FO

House Amendments to S.B. 1229

7. AN AREA THAT IS DESIGNATED FOR THE PROTECTION OF NATURAL LAND
FEATURES.

8. LAND THAT IS IDENTIFIED BY THE MUNICIPALITY AS BEING IN A
WILDLAND URBAN INTERFACE OR IS AT AN ADVANCED FIRE RISK.

9. LAND IN A MUNICIPALITY WITH A POPULATION OF THIRTY THOUSAND
PERSONS OR LESS.

10. LAND LOCATED IN SINGLE-FAMILY RESIDENTIAL ZONES THAT ARE ZONED
FOR DENSITIES OF MORE THAN SIX DWELLING UNITS PER ACRE OR AN EQUIVALENT.

11. LAND THAT HAS BEEN DEVELOPED WITH MIDDLE HOUSING AS A PERMITTED
USE PURSUANT TO SECTION 9-462.13.

E. THIS SECTION DOES NOT PROHIBIT A MUNICIPALITY WITH A POPULATION
OF MORE THAN THIRTY THOUSAND PERSONS FROM REQUIRING ANY OF THE FOLLOWING:

1. THE SUBMISSION OF SITE PLANS AND PLATS.

2. THE DEVELOPER TO PROVIDE ADEQUATE INFRASTRUCTURE AND WATER
SERVICE FOR THE ENTIRE PROPOSED DEVELOPMENT.

3. PUBLIC DEDICATIONS AND SUBDIVISION IMPROVEMENTS, INCLUDING:

(a) GRADING.

(b) SEWER AND WATER UTILITIES.

(d) EASEMENTS.

(e) TRAFFIC CONTROL DEVICES.

(f) SEPARATION WALLS ALONG STREETS OR NONRESIDENTIAL AREAS AND AREAS
OF INCOMPATIBLE USES.

4. A SPECIFIC DISTRIBUTION OR LOCATION OF THE STARTER HOMES IN A
SINGLE-FAMILY RESIDENTIAL DEVELOPMENT THAT IS DEVELOPED PURSUANT TO
SUBSECTION A OF THIS SECTION.

F. THIS SECTION DOES NOT SUPERSEDE ANY APPLICABLE MUNICIPAL BUILDING
CODES, MUNICIPAL FIRE CODES OR PUBLIC HEALTH AND SAFETY REGULATIONS.

G. FOR THE PURPOSES OF THIS SECTION:

1. “BUILDING CODE" HAS THE SAME MEANING PRESCRIBED IN SECTION
9-T30L.

House Amendments to S.B. 1229

2. “NEW SINGLE-FAMILY RESIDENTIAL DEVELOPMENT" MEANS A _ PROPOSED
DEVELOPMENT OF DETACHED SINGLE-FAMILY RESIDENTIAL HOMES ON MORE THAN FIVE
CONTIGUOUS ACRES OF LAND WITHIN AREAS ZONED AS SINGLE-FAMILY RESIDENTIAL.

3. "STARTER HOME" MEANS A SINGLE-FAMILY DETACHED HOME FOR WHICH THE
MUNICIPALITY REQUIRES A DEED RESTRICTION THAT REQUIRES OWNER OCCUPANCY FOR
A PERIOD OF UP TO FIFTEEN YEARS FROM AND AFTER THE INITIAL SALE FOR THE
INITIAL BUYER OF THE HOME AND ALL SUBSEQUENT BUYERS.

Sec. 2. Delayed repeal
Section 9-461.19, Arizona Revised Statutes, as added by this act, is

mo ON DT F&F WO MY KF

10 repealed from and after December 31, 2035."

11 Amend title to conform

JANEEN CONNOLLY

1229CONNOLLY .docx
03/21/2025

11:50 AM

C: LAT

Fifty-seventh Legislature Commerce
First Regular Session $B. 1229

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1229
(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-STREKECUT-FE-BRACKEFS] indicates new text removed from statute

or previously enacted session law.

(freen—str+keout—irtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.
<<freen—strtkeout—itr-carets>> indicates a section removed from the bill.

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

2 Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes,
3 is amended by adding sections 9-461.19 and 9-461.20, to read:

4 9-461.19. Planning; home design; state preemption;

5 applicability: definitions

6 A. A MUNICIPALITY MAY NOT INTERFERE WITH A HOME BUYER'S RIGHT TO
7 CHOOSE THE FEATURES, AMENITIES, STRUCTURE, FLOOR PLAN AND INTERIOR AND
8 EXTERIOR DESIGN OF A HOME.

9 B. NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY MAY NOT REQUIRE
10 EITHER OF THE FOLLOWING:

11 1. A SHARED FEATURE OR AMENITY THAT WOULD REQUIRE A HOMEOWNERS'

12 ASSOCIATION, A CONDOMINIUM ASSOCIATION OR ANY OTHER ASSOCIATION AS DEFINED
13 IN SECTION 33-1802 TO MAINTAIN OR OPERATE THE FEATURE OR AMENITY, UNLESS
14 REQUIRED BY FEDERAL LAW [OR AS REQUIRED TO MEET ADOPTED MINIMUM RETENTION

15 STANDARDS].
16 2. SCREENING, WALLS OR FENCES ON RESIDENTIAL PROPERTY.
17 C. THE LEGISLATURE FINDS AND DETERMINES THAT THE CITIZENS OF THIS

18 STATE CONTINUE TO EXPERIENCE THE SIGNIFICANT DETRIMENTAL EFFECTS OF A
19 SEVERE CRISIS DUE TO THE SHORTAGE OF AVAILABLE HOUSING. IT HAS BECOME
20 VIRTUALLY IMPOSSIBLE FOR MANY CITIZENS OF THIS STATE TO ACHIEVE THE
21 AMERICAN DREAM OF OWNING THEIR OWN HOME. THIS STATEWIDE HOUSING CRISIS IS
22 CAUSED IN PART BY HIGHLY RESTRICTIVE REGULATIONS. THE LEGISLATURE ALSO
23 FINDS AND DETERMINES THAT, PURSUANT TO ARTICLE II, SECTION 2, CONSTITUTION
24 OF ARIZONA, PROPERTY RIGHTS ARE A FUNDAMENTAL ELEMENT OF INDIVIDUAL RIGHTS
25 AND PERSONAL FREEDOM. A PROPERTY OWNER'S RIGHT TO USE THE PROPERTY
26 OWNER'S PROPERTY, PROTECTED FROM UNREASONABLE ABRIDGMENT BY REGULATION AND
27 ENFORCEMENT, IS A MATTER OF STATEWIDE CONCERN AND IS NOT SUBJECT TO
28 FURTHER REGULATION BY A MUNICIPALITY.

ATTACHMENT |2
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FPP SP HSPWWWWWWWWWWDNHYNDNYDNYDNDDNYDNANDNNMHPHRP RP RPE EPR REE
AFPWNHRFOWOONDTABPWNHRFOWOANAABRWNHEOWANDORWNHHRO YW

House Amendments to S.B. 1229

D. THIS SECTION DOES NOT SUPERSEDE APPLICABLE BUILDING CODES, FIRE
CODES OR PUBLIC HEALTH AND SAFETY REGULATIONS.

E. THIS SECTION DOES NOT APPLY TO LOTS OR PARCELS THAT ARE LOCATED
ON TRIBAL LAND, ON LAND IN A HIGH NOISE OR ACCIDENT POTENTIAL ZONE AS
DEFINED IN SECTION 28-8461 OF A MILITARY AIRPORT OR ANCILLARY MILITARY
FACILITY AS DEFINED IN SECTION 28-8461.

F. THIS SECTION APPLIES TO DEVELOPMENTS CONSTRUCTED AFTER THE
EFFECTIVE DATE OF THIS SECTION IN A MUNICIPALITY WITH A POPULATION OF MORE
THAN SEVENTY THOUSAND PERSONS.

G. FOR THE PURPOSES OF THIS SECTION:

1. “BUILDING CODE" MEANS THE CONSTRUCTION CODES ADOPTED BY THE
MUNICIPALITY, INCLUDING PLUMBING AND MECHANICAL CODES, ELECTRIC CODES,
RESIDENTIAL CONSTRUCTION CODES, WILDLAND URBAN INTERFACE CODES AND ENERGY
CONSERVATION CODES, HOWEVER DENOMINATED.

2. “FIRE CODE" MEANS A SET OF STANDARDS AND REGULATIONS THAT ARE
ADOPTED AND ENFORCED BY THE MUNICIPALITY'S FIRE CODE OFFICIAL IN
COMPLIANCE WITH STATE LAW AND THAT ARE RELATED TO FIRE PREVENTION AND
PROTECTION SYSTEMS FOR A SINGLE-FAMILY HOME.

3. "FIRE CODE OFFICIAL" MEANS THE MUNICIPAL FIRE CHIEF OR OTHER
DESIGNATED AUTHORITY CHARGED WITH THE ADMINISTRATION AND ENFORCEMENT OF
THE FIRE CODE OR A DULY AUTHORIZED REPRESENTATIVE.

4. “SHARED FEATURE OR AMENITY" MEANS ANY(>—6R—-PARTF—O6F—ANY—EANBT
BUELDING— ERO FHER— PROPER PI FATE HOT BE OTE BA EEE
TOMECHITER TN FEES THPLES_THELUB THEA COMMON AREA] [PRIVATE, COMMON OR
COMMUNITY OWNED IMPROVEMENT, FACILITY OR RESERVATION OF LAND].

9-461.20. Planning; urban areas; home size; design; state

preemption; applicability; definitions .

A. NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY MAY NOT ADOPT OR
ENFORCE ANY CODE, ORDINANCE, REGULATION, STANDARD, STIPULATION OR OTHER
LEGAL REQUIREMENT ESTABLISHING, DIRECTLY OR INDIRECTLY, ANY OF THE
FOLLOWING:

1. FOR NEW DEVELOPMENTS THAT ARE FIVE OR MORE ACRES IN SIZE AND
THAT WILL BE PLATTED AND LOCATED IN AN AREA ZONED AS SINGLE-FAMILY
RESIDENTIAL, MINIMUM LOT SIZES THAT ARE MORE THAN THREE THOUSAND SQUARE
FEET, EXCEPT THAT A MUNICIPALITY MAY ENFORCE ADOPTED MINIMUM LOT SIZES OF
MORE THAN THREE THOUSAND SQUARE FEET WHERE MULTIPLE LOTS SMALLER THAN FIVE
ACRES WITH EXISTING DWELLING UNITS ARE AGGREGATED TOGETHER. THIS
PARAGRAPH DOES NOT PROHIBIT A MUNICIPALITY FROM ALLOWING SMALLER LOT SIZES
THAN THE LOT SIZES PRESCRIBED BY THIS PARAGRAPH.

2. MINIMUM SQUARE FOOTAGE OR DIMENSIONS FOR A SINGLE-FAMILY HOME
THAT ARE MORE THAN THE MINIMUM SQUARE FOOTAGE OR DIMENSIONS THE
MUNICIPALITY REQUIRES FOR ANY OTHER TYPE OF DWELLING UNIT AS OF THE
EFFECTIVE DATE OF THIS SECTION.

3. MAXIMUM OR MINIMUM LOT COVERAGE FOR A SINGLE-FAMILY HOME AND ANY
ACCESSORY STRUCTURES ON A LOT LESS THAN TEN THOUSAND SQUARE FEET.

WOON DTH WDM FE

House Amendments to S.B. 1229

4. MINIMUM BUILDING SETBACKS FOR A SINGLE-FAMILY HOME THAT ARE MORE
THAN FIVE FEET FROM THE SIDE LOT LINES AND TEN FEET FROM THE FRONT AND
REAR LOT LINES, EXCEPT FOR A PORTION OF A HOME THAT IS OCCUPIED BY A
GARAGE FACING THE STREET, IN WHICH THE MINIMUM FRONT SETBACK MAY NOT
EXCEED EIGHTEEN FEET FROM THE BACK OF THE SIDEWALK OR LOT LINE. THIS
PARAGRAPH DOES NOT PROHIBIT A MUNICIPALITY FROM ALLOWING SMALLER SETBACKS
THAN THOSE ALLOWED BY THIS PARAGRAPH.

5. [EXTERIOR NONSTRUCTURAL __ ORNAMENTATION, J = DESIGNE>] [OR]
ARCHITECTURAL [OR-AESTHETTE] ELEMENTS FOR A SINGLE-FAMILY HOME, EXCEPT FOR
A SINGLE-FAMILY HOME ON LAND THAT IS DESIGNATED AS A_ DISTRICT OF
HISTORICAL SIGNIFICANCE PURSUANT TO SECTION 9-462.01, SUBSECTION A,
PARAGRAPH 10 OR AN AREA THAT IS DESIGNATED AS HISTORIC ON THE NATIONAL
REGISTER OF HISTORIC PLACES.

B. THE LEGISLATURE FINDS AND DETERMINES THAT THE CITIZENS OF THIS
STATE CONTINUE TO EXPERIENCE THE SIGNIFICANT DETRIMENTAL EFFECTS OF A
SEVERE CRISIS DUE TO THE SHORTAGE OF AVAILABLE HOUSING. IT HAS BECOME
VIRTUALLY IMPOSSIBLE FOR MANY CITIZENS OF THIS STATE TO ACHIEVE THE
AMERICAN DREAM OF OWNING THEIR OWN HOME. THIS STATEWIDE HOUSING CRISIS IS
CAUSED IN PART BY HIGHLY RESTRICTIVE REGULATIONS. THE LEGISLATURE ALSO
FINDS AND DETERMINES THAT, PURSUANT TO ARTICLE II, SECTION 2, CONSTITUTION
OF ARIZONA, PROPERTY RIGHTS ARE A FUNDAMENTAL ELEMENT OF INDIVIDUAL RIGHTS
AND PERSONAL FREEDOM. A PROPERTY OWNER'S RIGHT TO USE THE PROPERTY
OWNER'S PROPERTY, PROTECTED FROM UNREASONABLE ABRIDGMENT BY REGULATION AND
ENFORCEMENT, IS A MATTER OF STATEWIDE CONCERN AND IS NOT SUBJECT TO
FURTHER REGULATION BY A MUNICIPALITY.

C. THIS SECTION DOES NOT SUPERSEDE APPLICABLE BUILDING CODES, FIRE
CODES, UTILITY CLEARANCE REQUIREMENTS, UTILITY EASEMENTS THAT ARE RECORDED
AS OF THE EFFECTIVE DATE OF THIS SECTION, MINIMUM PARKING REQUIREMENTS OR
PUBLIC HEALTH AND SAFETY REGULATIONS. TO ENSURE THE SAFETY AND
RELIABILITY OF POWER AND WATER UTILITIES, A MUNICIPALITY MAY REQUIRE THE
PREPARATION AND SUBMISSION OF ACCEPTABLE ELECTRIC AND WATER UTILITY PLANS
AND SPECIFICATIONS.

D. AS A CONDITION OF DEVELOPMENT AND CONSTRUCTION OF NEW
SINGLE-FAMILY HOMES PURSUANT TO THIS SECTION, A MUNICIPALITY MAY REQUIRE
THE CONSTRUCTION OF OR PAYMENT FOR NECESSARY PUBLIC SERVICES NEEDED TO
SERVE THE NEW SINGLE-FAMILY HOMES IN ACCORDANCE WITH APPLICABLE STATE
STATUTES, INCLUDING SECTION 9-463.05, AND THE ARIZONA AND UNITED STATES
CONSTITUTIONS.

F. THIS SECTION APPLIES TO DEVELOPMENTS CONSTRUCTED AFTER THE
EFFECTIVE DATE OF THIS SECTION IN A MUNICIPALITY WITH A POPULATION OF MORE
THAN SEVENTY THOUSAND PERSONS.

House Amendments to S.B. 1229

G. FOR THE PURPOSES OF THIS SECTION:

9 PROTECTION SYSTEMS FOR A SINGLE-FAMILY HOME.

10 3. "FIRE CODE OFFICIAL" MEANS THE MUNICIPAL FIRE CHIEF OR OTHER
11 DESIGNATED AUTHORITY CHARGED WITH THE ADMINISTRATION AND ENFORCEMENT OF
12 THE FIRE CODE OR A DULY AUTHORIZED REPRESENTATIVE.

13 Sec. 2. hor itle

14 This act may be cited as the "Arizona Starter Homes Act".

ONO WNME

15 Enroll and engross to conform
16 Amend title to conform

CESAR AGUILAR

1229AGUILAR. docx
03/24/2025

04:23 PM

H: PB/1s

yw
Protecting the residential integrity of Arizona’s neighborhoods of}
https://aznalliance.org/

ARIZONA
NEIGHBORHOOD
ALLIANCE

HOUSEHOLDS & VOTERS AFFECTED BY STRs in AZ LD 13

APPROXIMATE NUMBERS. AS OF 12/31/22

Senator; J.D.Mesnard 602-926-4481 Reps: jweninger@azleg.gov
jmesnard@azleg.gov Julie Willoughby 602-926-3181 jwilloughby@azleg.gov
, | # CONTIGUOUS # VOTERS Zip Shared w/
ZIP CITY/TOWN AREA # STRs HOMES? AFFECTED® Other LDs?*

85224 Chandler 112 896 1344 12
85225 Chandler 198 1580 2370 a2
85233 Gilbert 96 764 1146 12

85234 Gilbert 125 1000 1500 10,14

85248 Chandler, Sun Lakes yf 587 880 12,16
85249 Chandler 50 396 594 14
85286 Chandler 118 944 1416 NO
85295 Gilbert 83 664 996 14
85296 Gilbert 82 656 984 14
85297 Gilbert 76 604 906 14
85298 Gilbert 41 324 486 14

TOTAL 1052 8415 12622

1 Ifa Zip code is included in more than one LD, the # of STRs listed for each LD is the total STRs in a zip/the # of LDs sharing that zip

# of Contiguous Homes = 2-8 X the # of STRs, depending on estimated community density

# of Voters = 1.5X the # of Homes (Fed. est.)

* Ita zip code is included in more than one Legislative District, the sharing LDs for that zip are noted

STR estimate methodology available on request

LD 13 STR-Voters 250325 Legis

— ATIAGHMENT 1 7/

LP |

ARIZONA

NEIGHBORHOOD
ALLIANCE

Protecting the residential integrity of Arizona's neighborhoods
httos://aznalliance.org/

Who is Paying the Biggest Price for

Arizona's Runaway Short-Term Rental Problem?

LEGISLATIVE LEGISLATORS RANK STRs in — ee pC
DISTRICT DISTRICT HOMES VOTERS
4 Werner/Carter & Gress ist 7522 60173 90260
1 Finchem/Bliss & Nguyen 2nd 7440 29761 44642
8 Kuby/Connolly & Garcia 3rd 6684 53470 80205
7 Rogers/Blackman & Marshall 4th 5445 28213 42320
30 Angius/Biasiucci & Gillette 5th 3722 28205 42308
6 Hatathlie/Peshlakai & Tsosie 6th 3508 18768 28152
5 Alston/Liguori & Marquez 7th 3123 24985 37478
3 Kavanagh/Chaplik & Kolodin 8th 2789 22311 33466
18 Sundareshan/Gutierrez & Mathis 9th 2019 16155 24232
43 Miranda/Cavero & De Los Santos 10th 1845 14756 22134
29 Shamp/Montenegro & Taylor 11th 1704 13633 20449
12 Epstein/P. Contreras & Travers 12th 1701 13607 20411
9 Burch/Austin & Blattman 13th 1645 13156 19734
25 Dunn/Carbone & Kupper 14th 1585 12677 19016
20 Gonzales/A. Hernandez & Villegas 15th 1323 10574 15861
17 Leach/Keshel & Volk 16th 1291 10331 15496
21 Gabaldon/C. Hernandez & Stahl-Hamilton 17th 1278 8634 12950
16 Shope/Lopez & Martinez 18th 1235 9878 14817
2 Bolick/Simacek & Wilmeth 19th 1190 9518 14277
10 Farnsworth/Heap & Olson 20th 1127 9016 13524
28 Carroll/Livingston & Pingerelli 21st 1065 8521 12781
13 Mesnard/Weninger & Willoughby 22nd 1052 8415 12622
oF Payne/Fink & Rivero 23rd 1026 8204 12306
19 Gowan /L. Diaz & Griffin 24th 889 5141 7712
22 E, Diaz/L. Contreras & Luna-Najera 25th 882 7055 10582
23 Fernandez/Pena & Sandoval 26th 876 7011 10516
14 Petersen/Hendrix & Khyl 27th 730 5487 8230
26 Bravo/Aguilar & Crews 28th 694 5549 8323
24 Ortiz/L. Hernandez & Abeytia 29th 393 3133 4699
15 Hoffman/Carter & Way 30th 392 3139 4708
TOTALS: 66175 469476 | 704211

* STR estimate methodology available on request
“* #of Contiguous Homes=2-8 X the # of STRs, depending on est. of community density
“" # of Voters = 1.5X the # of Homes (Fed. est.)
For further information, contact Susan Edwards: sedwards@nelghborhoodsconnect.org.

Who pays 4 STRs-Leg’s250219
JONVITIV (dow siy3 uo 2410 000‘SE -/+ 243 $0 00S‘E AjuO)
GOOHYOSHDIAN syequay WH9]-OYs paldnd2Q-12UMQ-UON = pay
VNOZIYV (dow siy} uo asp ¥TZ -/+ 84} 40 49 Ajuo)
P2UMO 994}5 JEM = eng

yuno>) edosneyW Ul ysnr

q = ALIO Wy i

PLN Ov VON
S|!H_UIPLU 31IVOSLLOOS

HO a
NIVINGIU
13M005 *

Z1VASLLOS
| Owner Location
| [a Outside Arizona
| et International

- onsen Jn a
Source: Maricopa County Assessor Parcel! Data; March 2024

26% of the residential properties in the region (approximately 376,000 properties) is either seasonal- or investor-owned. This map shows properties owned by people
outside of Arizona and outside of the U.S. 42% of properties are owned by people out of state. The top 2 states in which out-of-state owners reside are California and
Washington. 4% of the housing stock are owned by international owners, most commonly from Canada.
ARRIVED HOMES ARIZONA HOLDINGS As of 1/29/2025

https://arrived.com "

# of

ADDRESS INVESTORS
/OWNERS

fee. TOTALS: $ 11,053,000 $ 12,832,470 18082
_pst:
> 1280WShullenbagerDr Flagstaff 86005 $ 750,000 $ 984,270 0% 1006 1920 3 8 hitns://arrived.com/properties/the-kinlani
32. 6085 N 85th Ave Glendale 85305 $ 744,000 $ 655,850 42% 1133 44108 6 16+ __httns://arrived.com/properties/the-cardinal
so 520 Jones Dr. ee 86406 $ 1,050,000 $ 918,820 45% 1531 3152. 4 9 https://arrived.com/properties/the-havasu
6001 E Corrine Dr. Phoenix 85254 $ 1,100,000 $ 1,499,140 0% 1768 2336 4 ~&# 10 httns://arrived.com/nroperties/the-pickler
5108 E Janice Way Phoenix 85254 $ 1,048,500 $ 895,510 42% 1276 2287 4 8 https://arrived. ies/th
4 5002 E Paradise Dr. Phoenix 85254 $ 875,000 $ 1,199,140 0% 2134 + «=©962009 2S 4-~—Ss 10 __hittns://arrived.com/properties/the-preciosa
5921 E Thunderbird Phoenix 85254 $ 675,000 $ 1,028,400 0% 1204 2355 4 #10 https://arrived.com/properties/the-koi
14249 N 49th St. Phoenix 85254 $ 1,050,000 $ 893,020 42% 1058 2467 «5 ~—‘10 httns://arrived.com/properties/the-ace
8638 E Solano Dr. Scottsdale 85250 $ 1,030,000 $ 1,423,490 0% 2228 +2300 5 10 httos://arrived.com/properties/the-solano
© 8133 E Osborn Rd Scottsdale 85251 $ 900,000 $ 1,242,810 0% 1672 1864 4 10 __hitps://arrived.com/properties/the-suitespot
] 32 San Patricio Dr. Sedona 86336 $ 1,095,000 $ 1,022,840 45% 1585 3409 4 10 __httos://arrived.com/properties/the-sereni
/Z 4416S Stanley Tempe 85282 $ 735,500 $ 1,069,180 0% 1487 3082 6 14 __#https://arrived.com/pr he-beat

ARRIVED'S LONG-TERM RENTAL PROPERTIES

# of
ADDRESS CITY ae a INVESTORS
-OWNERS

TOTALS: $ 1,922,900 S$ 838,680 1346
I] 5309 S 18th Pl. Phoenix 85040 S$ 370,000 $ 156,470 70% 228 1503 3 https://arrived.com/properties/the-rooney_
/ 6180 W Bandelier Ct. Tucson 85742 $ 349,900 $ 147,710 70% 218 1900 3 httns://arrived,com/properties/the-bandelier
7 10954 E Oak Grove PI. Tucson 85747 S$ 318,000 $ 139,820 70% 249 1717 3 bttps://arrived.com/properties/the-terracotta
6566 S Diablo Dr. Tucson 85757 $ 297,000 $ 129,000 70% 202 2187 4 https://arrived.com/properties/el-diablo.
po 7713 W Long Boat Way Tucson 85757 $ 318,000 $ 147,910 66.7% 238 1813 3 https://arrived.com/properties/the-saint_
i "gq 216 E Scepter Lane Vail 85641 $ 270,000 $ 117,770 70% 211 1500 3 https://arrived.com/properties/the-scepter

Arrived Homes AZ Hidgs - 250212 [258k]
In 2016, Senate Bill 1350 opened the floodgates for Short-Term Rentals (STR) in Arizona.
Arizona now has nearly 70,000 Short-Term Rentals

WHY ARE THERE ONLY 5,500 TPT LICENSES?

ARIZONA TRANSACTION PRIVILEGE TAX ACCOUNTS - FYE 2016-FYE 2024

2016 2017 2018 2019 2020 2021 2022 2023 2024

Apache 51 54 54 56 48 46 53 60 66
Cochise 174 174 157 168 148 156 154 162 178
Coconino 409 502 577 630 547 525 638 813 1,059

Gila 74 75 85 92 86 93 101 128 142
Graham 14 14 16 14 14 14 20 20 20
Greenlee 12 14 14 12 14 13 17 16 17

La Paz 59 60 55 60 67 74 87 91 87
Maricopa 987 1,159 1,443 1,745 1,648 1,572 2,220 3,465 4,020
Mohave 175 223 248 298 | 268 315 415 520 655
Navajo 164 182 201 217 178 166 196 243 289
Pima 315 321 418 500 479 461 517 663 832
Pinal ait 120 85 152 130 125 144 159 183
Santa Cruz 56 51 48 52 45 45 56 56 66
Yavapai 255 316 422 492 451 464 595 766 852
Yuma 101 97 100 102 89 94 98 109 105
TOTAL 2,957 3,362 3,923 4,590 4,212 4,163 5,311
TOTAL HOTEL/MOTEL/STR TPT ACCOUNTS: 5,311 7274 8,571
1b. 8 LESS HOTEL/MOTEL TPT ACCOUNTS AS OF 6/30/16 (Pre-SB1350): -2,957 -2,957 -2,957
ean NET INCREASE IN TPT LICENSES FROM FY2016-FY2024: 2,354 4,314 5,614
eer Sre LESS ESTIMATED HOTELS ADDED (@20/Year): -120 -140 -160
ALLIANCE APPROXIMATE INCREASE IN STR TPT LICENSES: 4,174 5,454

www.azalliance.org

TPT = Transaction Privilege Tox : all STRs are required to be registered to file & pay on all online lodging transactions pursuant to A.R.S. §42-5005 L.2.

Why Only SSOO TPT Licenses 2024 - 250219
https://www.azcentral.com/story/news/local/arizona/2025/02/25/why-northern-arizona-mayors-want-
short-term-rental-limits/79851376007/

Northern Arizona mayors say short-term rentals
hurt communities, want limits

Catherine Reagor
Arizona Republic
February 25, 2025

Several mayors from northern Arizona municipalities with a growing number of short-term rentals met in
Prescott last week to discuss those problems and others the rental properties create for their neighborhoods,
economies, traffic and schools.

“SB 1350 has crushed the town of Jerome,” said Mayor Christina “Alex” Barber about the 2016 legislation that
makes it illegal for any Arizona municipality to prohibit property owners from using their residential property
for short-term rentals.

She said more than 20% of the houses in the historic landmark town Jerome are short-term rentals and is
worried that number will jump.

Arizona cities struggling with short-term rentals

Sedona Mayor Scott Jablow estimated that almost 30% of homes in that popular tourist destination are short-
term rentals.

“Our schools are losing children and funding because families can’t find homes here, and we can’t attract much-
needed medical staff,” Jablow told the group at Embry-Riddle Aeronautical University. “Long-time residents
are selling and leaving because of loud parties at short-term rentals.”

He said the rentals drive up home prices because investors are paying more than asking prices for houses.

Prescott Mayor Phil Goode said police having to respond to neighborhood complaints about short-term renter
noise and trash redirects the city’s public safety resources from where residents want them utilized.

But he said the rentals have generated about $25 million in revenue for Prescott, which “is a good thing.”

Arizona short-term rental owners are required to pay Transaction Privilege Tax, which is 2.5% of revenue from
the business.
LETTER TO ARIZONA NEIGHBORHOOD ALLIANCE FROM
A WILLIAMS RESIDENT

December, 2023

My husband and | are 5th generation, lifelong Williams residents. We live in the house my great grandmother had lived
in from the 1950s until she passed in the ‘80s. We have lived in this house for the past 22 years and raised 2 boys
there. My mom, who passed a few years ago, had the same house for over 50 years where my 2 sisters and | grew

up. My maternal grandmother, who passed in 2006, had lived in her same house for 70 years. Currently my aunt and
uncle live in that house. My paternal grandmother lived in the same house for 70 years and now my cousins live there.

This community has always been small, close knit, and everyone used to know everyone. Until the short- term rental
craze. Being a small, rural, tourist-based economy, most people who live here are service employees who generally
make minimum wage. But people used to be able to afford to live here.

Once the STRs started coming in, it hollowed out the town. Long-term renters were kicked out of their homes so the
owners could turn the houses into STRs to make more money. There are quite a few locals who have a second
investment property that they used for rental income. People here have always had to struggle to make a living.

| don't blame them for wanting more money and a more comfortable life. But then we got people coming in and buying
second homes, driving up the prices, and using them for a second, vacation home that they rent out when they aren't
using it.

Now we have this terrible STR problem and it's much too late to put the genie back in the bottle.

THIS TOWN HAS BEEN DESTROYED. Williams will never be the same again. It is no longer a community, it is a transient
population of people who have no stake in the well-being of our town and its residents.

We have new people at the houses surrounding us every night, or they sit vacant for a week or two at a time. | have had
to call the police on loud parties next door several times.

| NEVER used to lock my doors. Now | lock everything up and worry whether these "guests" are going to break into our
garage in the middle of the night. They block our parking. There is garbage all over the front driveway regularly.

I'm just so sick of it that we gave up and decided to sell and get the hell out of here. | don't have the time to police the
STRs in my neighborhood, nor is it my responsibility. | don't have the energy to fight. | am 54, my husband is 61. We
were looking forward to a peaceful early retirement.

But now we will retire to a place in Colorado, where they care about the community.

Capitalism at its worst has won here. What | have learned is that as long as there is money to be made, nothing else
matters, least of all homeowner's right to quiet enjoyment of their homes.

All| can do at this point is voice my displeasure by putting up “Homes Not Hotels” signs. | wish | had the energy to do
more but | am simply beaten down and just want to get as far away as possible.

Le |

ARIZONA

NEIGHBORHOOD
ALLIANCE

Arizona Neighborhood Alliance
https://aznalliance.org/

Arizona Cities by Population 2025 9/24/2025
WORLD POPULATION REVIEW https://worldpopulationreview.com/us-cities/arizona
Prepared by the Arizona Neighborhood Alliance https://aznalliance.org/
CITY/TOWN/(UNINC.)
"CENSUS DESIGNATED RANK 2025 POP. 2024POP. | CHANGE paneton an TYPE
MILE (MI’)
PLACE"

Phoenix 1 1,675,144 1,662,607 0.75% 3,232 518.33 City
Tucson 2 550,306 548,772 0.28% 2,272 242.19 City
Mesa 3 515,486 513,567 0.37% 3,646 141.38 City
Chandler 4 282,048 281,107 0.34% 4,297 65.64 City
Gilbert 5 279,569 277,490 0.75% 4,072 68.66 | Town
Glendale 6 257,125 255,490 0.64% 3,830 67.13 City
Scottsdale 7 246,068 245,231 0.34% 1,337 184 City
Peoria 8 203,252 201,001 1.12% 1,150 176.7 City
Tempe 9 192,838 191,336 0.78% 4,823 39.98 City
Surprise 10 167,537 162,911 2.84% 1,516 110.5 City
Goodyear sl 121,116 116,460 4% 633 191.31 City
Buckeye 12 119,007 113,958 4.43% 301 394.83 City
San Tan Valley 13 106,179 104,521 1.59% 1,401 75.79 CDP
Yuma 14 103,070 101,964 1.08% 852 121.04 City
Avondale 15 96,196 94,870 1.40% 2,011 47.84 City
Queen Creek 16 87,006 81,788 6.38% 2,067 42.1 Town
Maricopa wT 79,134 75,078 5.40% 1,862 42.49 City
Flagstaff 18 76,246 76,416 -0.22% 1,155 66.01 City
Casas Adobes 19 70,698 70,437 0.37% 2,666 26.52 CDP
Casa Grande 20 70,156 66,949 4.79% 616 113.84 City
Marana 21 62,302 60,366 3.21% 514 121.14 Town
Lake Havasu City 22 60,511 59,884 1.05% 1,306 46.34 City
Prescott Valley 23 52,097 $1,071 2.01% 1,288 40.44 Town
Catalina Foothills 24 50,517 50,536 -0.04% 1,208 41.83 CDP
Oro Valley 25 49,037 48,674 0.75% 1,399 35.06 Town
Prescott 26 48,891 48,324 1.17% 993 49.23 City
Bulthead City 27 44,509 43,905 1.38% 750 59.37 City
Sierra Vista 28 43,792 44,111 -0.72% 287 152.44 City
Apache Junction 29 42,766 41,959 1.92% 941 45.45 City
San Luis 30 39,551 38,758 2.05% 1,169 33.82 City
Sun City 31 37,810 37,790 0.05% 2,623 14.42 CDP
Sahuarita 32 37,689 37,022 1.80% 1,190 31.68 = Town
Kingman 33 36,958 36,146 2.25% 984 37.55 City
El Mirage 34 35,780 35,815 -0.10% 3,614 9.9 City
Drexel Heights 35 30,880 30,672 0.68% 1,604 19.25 CDP
Fortuna Foothills 36 27,874 27,766 0.39% 696 40.08 CDP
Sun City West 37 27,165 26,990 0.65% 2,278 11.93 CDP

Arizona Cities by Population 2025

38
39
40
Al
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82

23,435
22,960
22,257
22,068
21,531
20,824
20,428
19,669
19,290
17,380
16,955
16,508
16,456
15,051
14,836
14,776
14,456
14,298
14,293
14,285
14,190
13,964
13,727
13,525
12,946
12,701
12,614
12,482
12,377
12,105
10,350
9,903
9,509
9,182
8,539
8,312
8,194
8,058
7,782
7,255
7,133
7,109
7,031
6,878
6,825

23,523
22,876
23,274
21,861
19,912
20,861
19,478
19,685
19,000
17,316
16,843
16,088
16,317
15,344
14,715
14,415
13,492
14,332
14,467
14,050
14,176
13,033
13,425
13,432
12,896
12,595
12,414
12,337
12,439
12,072
10,310
9,861
9,253
9,207
8,331
8,332
8,355
8,219
7,822
7,287
7,156
7,141
6,850
6,881
6,872

-0.37%
0.37%
-4,.37%
0.95%
8.13%
-0.18%
4.88%
-0.08%
1.53%
0.37%
0.66%
2.61%
0.85%
-1.91%
0.82%
2.50%
7.14%
-0.24%
-1.20%
1.67%
0.10%
7.14%
2.25%
0.69%
0.39%
0.84%
1.61%
1.18%
-0.50%
0.27%
0.39%
0.43%
2.77%
-0.27%
2.50%
“0.24%
-1.93%
-1.96%
-0.51%
-0.44%
-0.32%
-0.45%
2.64%
-0.04%
-0.68%

1,155
2,900
355
350
259
1,055
178
945
344
4,563
876
728
985
1,508
2,040
1,551
504
129
443
229
2,640
531
488
2,721
1,017
300
264
191
805
1,746
1,715
542
1,238
130
322
929
631
1,314
99
190
392
1,240
208
2,098
4,590

20.28

7.92
62.64
63.09

. 83.14

19.73
114.67
20.82
56.11
3.81
19.35
22.68
16.7
9.98
pares
9.52
28.67
110.7
32.28
62.46
5.38
26.32
28.16
4.97
12.72
42.35
47.8
65.5
15.38
6.93
9.28
18.26
7.68
70.84
26.51
8.95
12.99
6.13
78.75
38.18
18.2
5.73
33.74
3.28
1.49

Page 2

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CDP
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CDP
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CDP
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CDP
CDP
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CDP
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CDP
Town
CDP
CDP
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CDP
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CDP
City
Town
CDP
City
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CDP
CDP
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CDP
City
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City
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City

Town
ie. i

ARIZONA

NEIGHBORHOOD
ALLIANCE

SUSAN EDWARDS www.aznalliance.org

President/Co-Founder

sedwards@neighborhoodsconnect.org

602.625.6952
1145 W Edgemont Avenue
Phoenix, AZ 85007
i.

ARIZONA
NEIGHBORHOOD
ALLIANCE

SUSAN EDWARDS

| President/Co-Founder

www.aznalliance.org

sedwards@neighborhoodsconnect.org

602.625.6952

1145 W Edgemont Avenue
Phoenix, AZ 85007
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. $B 1229

DATE March 25, 2025 MOTION: __ > PA

PASS NAY PRESENT | ABSENT

Aguilar

NINE.

Blackman

Cavero

Connolly

Diaz

Villegas

Wilmeth

—
Hendrix =p
—-

Way, Vice-Chairman

Weninger, Chairman

OVAAI\

7 O

ya, COMMITTEE SECRETARY

hb- ‘dalle SEO oa Chairman

MICHAEL WAY, Vice-Chairman

ATTACHMENT__1 5
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: GOV DPA 5-2-0-0 | 8™ Read 24-5-1-0

SB 1494: common expense liens; foreclosure; amount
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Overview
Increases the time-period and the monetary threshold relating to home foreclosure for

assessment delinquency.

History
A planned community association (Association) applies a common expense lien to a property

for any assessment levied against that property from the time the assessment becomes due.
The Association board of directors must exercise reasonable efforts to communicate with the
member, provide outlined written notice to the member at least 30 days before authorizing
collection and offer a reasonable payment plan before filing a foreclosure action. A common
expense lien is extinguished six years after the full amount of the assessment becomes due
unless proceedings to enforce the common expense lien are instituted. The Association's
common expense lien may be foreclosed in the same manner as a mortgage on real estate if
the owner has been and remains delinquent in the payment of assessments for a period of
one year or in the amount of $1,200, whichever occurs first, as determined on the date the
action is filed (A.R.S. § 33-1807).

Common expense lien means the lien for assessments, authorized charges for late payment
of assessments, reasonable collection fees and costs incurred or applied by the Association
and reasonable attorney fees and costs that are incurred with respect to those assessments,
if the attorney fees and costs are awarded by a court. Member expenses means fees, charges,
late charges and monetary penalties or interest and are not enforceable as common expense
liens (A.R.S. §§ 33-1802 and 33-1807).

Provisions
1. Increases, from one year to two years, the period of time in which a person must be
delinquent in the payment of assessments allowing an Association to foreclose a common

expense lien, (Sec. 1)

2. Increases, from $1,200 or more to $10,000 or more, the amount in which a person must
be delinquent in the payment of assessments allowing an Association to foreclose a
common expense lien. (Sec. 1)

3. Makes technical changes. (Sec. 1)

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

SB 1494
Initials Page 1 Commerce

ATTACHMENT |G
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1494

ONAN H WDM

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1494
(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-SFRIKECUT-F- BRACKETS] indicates new text removed from statute
or previously enacted session law.
(Green—strt+keout—it-brackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green—strikeout—inr-carets>> indicates a section removed from the bill.

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

Section 1. Section 33-1807, Arizona Revised Statutes, is amended to
read:

33-1807. Common expense liens; priority; mechanics’ and

materialmen's liens; notice

A. The association has a common expense lien on a property for any
assessment levied against that property from the time the assessment
becomes due. The association's common expense lien may be foreclosed in
the same manner as a mortgage on real estate but may be foreclosed only if
the owner has been and remains delinquent in the payment of [assessments]
[ANY ASSESSMENT]> [OR PORTION OF THE ASSESSMENT] for a period of one-year
TWO YEARS or in the amount of ¢t;>26@ $10,000 or more, whichever occurs
first, as determined on the date the action is filed. The association
board of directors shall exercise reasonable efforts to communicate with
the member and offer a reasonable payment plan before filing a foreclosure
action. If an assessment is payable in installments, the full amount of
the assessment is a COMMON EXPENSE lien from the time the first
installment of the assessment becomes due.

B. Notwithstanding any provision in the community documents, member
expenses are not enforceable as common expense liens under this subsector
SECTION. The association has a JUDGMENT lien for member expenses after
the entry of a judgment in a civil suit for those member expenses from a
court of competent jurisdiction and the recording of that judgment in the
office of the county recorder as otherwise provided by law. The
association's judgment lien for member expenses may not be foreclosed and
is effective only on conveyance of any interest in the real property.

C. A common expense lien under this section is prior to all other
liens, interests and encumbrances on a property except:

Withdrawn

Analysts Initials

ONAN FP WDM Fe

House Amendments to S.B. 1494

1. Liens and encumbrances recorded before the recordation of the
declaration.

2. <A recorded first mortgage on the property, a seller's interest
in a first contract for sale pursuant to chapter 6, article 3 of this
title on the property recorded before the COMMON EXPENSE lien arising
pursuant to subsection A of this section or a recorded first deed of trust
on the property.

3. Liens for real estate taxes and other governmental assessments
or charges against the property.

D. Subsection C of this section does not affect the priority of
mechanics’ or materialmen's liens. The common expense lien under this
section is not subject to chapter 8 of this title.

E. Unless the declaration otherwise provides, if two or more
associations have common expense liens created at any time on the same
real estate those COMMON EXPENSE liens have equal priority.

F. Recording the declaration constitutes record notice and
perfection of the common expense lien. Further recordation of any claim
of common expense lien under this section is not required.

G. A common expense lien is extinguished unless proceedings to
enforce the COMMON EXPENSE lien are instituted within six years after the
full amount of the assessment becomes due.

H. This section does not prohibit:

1. Actions to recover amounts for which subsection A or B of this
section creates a lien.

2. An association from taking a deed in lieu of foreclosure.

I. A judgment or decree in any action brought under this section
may include costs and reasonable attorney fees for the prevailing party.

J. On written request, the association shall furnish to a
lienholder, escrow agent, member or person designated by a member a
statement setting forth the amount of any unpaid liens prescribed by
subsection A or B of this section against the property. The association
shall furnish the statement within ten days after receipt of the request.
The statement is binding on the association if the statement is requested
by an escrow agency that is licensed pursuant to title 6, chapter 7.
Failure to provide the statement to the escrow agent within the time
provided for in this subsection extinguishes any lien for any unpaid
assessment then due.

K. Notwithstanding any provision in the community documents or in
any contract between the association and a management company or any other
agent of the association, including any agreement or contract with any
attorney, unless the member directs otherwise, all payments received on a
member's account shall be applied first to any unpaid assessments, due but
not delinquent assessments, unpaid charges for late payment of those
assessments if authorized in the declaration, unpaid reasonable collection
fees and costs incurred or applied by the association, and unpaid attorney
OANA AHP WDM FE

House Amendments to S.B. 1494

fees and costs incurred with respect to those assessments if awarded by a
court, in that order, with any remaining amounts applied next to other
unpaid fees, charges and monetary penalties or interest and late charges
on any of those amounts.

L. For a delinquent account for unpaid common expense liens, the
association shall provide the following written notice to the member at
the member's address as provided to the association at least thirty days
before authorizing an attorney, or a collection agency that is not acting
as the association's managing agent, to begin collection activity on
behalf of the association:

Your account is delinquent. If you do not bring your account

current or make arrangements that are approved by the

association to bring your account current within thirty days

after the date of this notice, your account will be turned

over for further collection proceedings. Such collection

proceedings could include bringing a_ foreclosure’ action

against your property.
The notice shall be in tottfacet BOLD-FACED type or all capital letters
and shall include the contact information for the person that the member
may contact to discuss payment. The notice shall be sent by certified
mail, return receipt requested, and may be included within other
correspondence sent to the member regarding the member's delinquent
account.

M. Except for planned communities that have fewer than fifty lots
and that do not contract with a third party to perform management services
on behalf of the association, the association shall provide a statement of
account in lieu of a periodic payment book to the member with the same
frequency that assessments are provided for in the declaration. The
statement of account shall include the current account balance due and the
immediately preceding ledger history. If the association offers the
statement of account by electronic means, a member may opt to receive the
statement electronically. The association may stop providing any further
statements of account to a member if collection activity begins by an
attorney, or a collection agency that is not acting as the association's
managing agent, regarding that member's unpaid account. After collection
activity begins, a member may request statements of account by written
request to the attorney or collection agency. Any request by a member for
a statement of account after collection activity begins by an attorney or
a collection agency that is not acting as the association's managing agent
must be fulfilled by the attorney or the collection agency responsible for
the collection. The statement of account provided by the attorney or
collection agency responsible for the collection shall include all amounts
claimed to be owing to resolve the delinquency through the date set forth
in the statement, including attorney fees and costs, regardless of whether
such amounts have been reduced to judgment.
House Amendments to S.B. 1494

N. An agent for the association may collect on behalf of the
association directly from a member the assessments and other amounts owed
by cash or check, by mailed or hand-delivered bank drafts, checks,
cashier's checks or money orders, by credit, charge or debit card or by
other electronic means. For any form of payment other than for cash or
for mailed or hand-delivered bank drafts, checks, cashier's checks or
money orders, the agent may charge a convenience fee to the member that is
approximately the amount charged to the agent by a third-party service
provider. The association may not transfer ownership or control of debt
for common expense liens or member expenses.

SOMO ON ADO HRWNDY FE

11 Enroll and engross to conform
12 Amend title to conform

JEFF WENINGER

1494WENINGER. docx
03/24/2025

01:07 PM

H: PB/1s
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1494

DATE March 25, 2025 MOTION: D A

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas
Wilmeth
Way, Vice-Chairman

Weninger, Chairman

AIR IN AIK) AAA

a © O

(Mea
COMMITTEE SESH PIARY

ATTACHMENT__1@

“Ub Mine

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: GOV DPA 6-1-0-0 | 3™ Read 24-5-1-0

SB 1535: homeowner's associations; address lights
Sponsor: Senator Kavanagh, LD 3
Committee on Commerce

Overview
Precludes a condominium association and a planned community association (homeowner's
association) from prohibiting the installation or use of a lighted home address device.

History
Statute allows for the formation of a homeowner's association in accordance with its

declaration, bylaws and articles of incorporation. These governing documents outline the
responsibilities of the association as well as give the association certain authorities to enact
community rules and regulations. Statutorily law provides additional governance and
restrictions for homeowner's associations (Title 33, Chapter 9, Title 33, Chapter 16, A.R.S.).

Provisions
1. Precludes a homeowner's association from prohibiting the installation or use of a lighted
home address device that:
a) provides a lighted display of the house number;
b) flashes red and blue when activated to indicate pending response by emergency
services;
c) is visible from the street; and
d) has a low-light adjustment. (Sec. 1, 2)

2. Stipulates a homeowner's association may adopt reasonable rules for the placement of a
lighted home address provided such rules do not prevent the installation, defeat the
purpose or impair the functioning or restrict the use or adversely affect the cost or
efficiency of the device. (Sec. 1, 2)

3. Allows the homeowner's association to apply reasonable lighting restrictions. (Sec. 1, 2)
4, Requires the lighting device to comply with all municipal lighting ordinances. (Sec. 1, 2)

5. Instructs the court award reasonable attorney fees and costs to any party who
substantially prevails in an action against the homeowner's association board of directors
for a violation relating to lighted home address device installation or use. (Sec. 1, 2)

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

SB 1535
Initials Page 1 Commerce

ATTACHMENT |
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1535

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1535
(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-TH-BRACKETS] indicates new text removed from statute
or previously enacted session law.
[Green—strtkevut—irtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green—strikeout—inr-carets>> indicates a section removed from the bill.

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

2 Section 1. Title 33, chapter 9, article 3, Arizona Revised
3 Statutes, is amended by adding section 33-1261.01, to read:

4 33-1261.01. Lighted home address device; reasonable

5 restrictions; fees and costs

6 A. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS, AN
7 ASSOCIATION SHALL NOT PROHIBIT THE INSTALLATION OR USE OF A LIGHTED HOME
8 ADDRESS DEVICE THAT DOES THE FOLLOWING:

9 1. PROVIDES A LIGHTED DISPLAY OF THE HOUSE NUMBER.

10 2. FLASHES [REB-—ANB—BLUE] WHEN ACTIVATED TO (CINBTEATE—PENDTNG
11 - RESPONSE-BY-POLTEESFTRE-6R-EMERGENEY-SERVIEES] [SIGNAL THE LOCATION OF AN
12 EMERGENCY).

13 3. IS VISIBLE FROM THE STREET.

14 4. [HAS ACHOR-CTGHT-ABOUSTFHENF] [DOES NOT EXCEED TWO HUNDRED FIFTY
15 LUX OF ILLUMINATION].

16 B. AN ASSOCIATION MAY ADOPT REASONABLE RULES REGARDING’ THE
17 PLACEMENT OF A LIGHTED HOME ADDRESS DEVICE IF THOSE RULES DO NOT PREVENT
18 THE INSTALLATION, DEFEAT THE PURPOSE OR IMPAIR THE FUNCTIONING, RESTRICT
19 THE USE OR ADVERSELY AFFECT THE COST OR EFFICIENCY OF THE DEVICE. THE
20 ASSOCIATION MAY APPLY REASONABLE LIGHTING RESTRICTIONS AND THE DEVICE
21 SHALL COMPLY WITH ANY MUNICIPAL LIGHTING ORDINANCE.

22 C. NOTWITHSTANDING ANY PROVISION OF THE CONDOMINIUM DOCUMENTS, THE
23. COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO ANY PARTY WHO
24 SUBSTANTIALLY PREVAILS IN AN ACTION AGAINST THE BOARD OF DIRECTORS OF THE
25 ASSOCIATION FOR A VIOLATION OF THIS SECTION.

26 Sec. 2. Title 33, chapter 16, article 1, Arizona Revised Statutes,
27 is amended by adding section 33-1816.01, to read:

\dopte H of Verbal:

jiled Withdraw!

Analysts initials

ATTACHMENT ZO
House Amendments to S.B. 1535

il 33-1816.01. Lighted home address device; reasonable

2 restrictions: fees and costs

3 A. NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS, AN
4 ASSOCIATION SHALL NOT PROHIBIT THE INSTALLATION OR USE OF A LIGHTED HOME
5 ADDRESS DEVICE THAT DOES THE FOLLOWING:

6 1. PROVIDES A LIGHTED DISPLAY OF THE HOUSE NUMBER.

7 2. FLASHES [REB—ANB—BLUE] WHEN ACTIVATED TO [CH6TCATE—PENDTNG
8 =- RESPONSE -BY-POLTEES-FIRE-OR-ENMERGENCT-SERVICES] [SIGNAL THE LOCATION OF AN
9 EMERGENCY).

10 3. IS VISIBLE FROM THE STREET.

1 4. [HASACOH- EEE -ADTUSTHENTF] =[DOES NOT EXCEED TWO HUNDRED FIFTY
12 LUX OF ILLUMINATION].

13 B. AN ASSOCIATION MAY ADOPT REASONABLE RULES REGARDING’ THE

14 PLACEMENT OF A LIGHTED HOME ADDRESS DEVICE IF THOSE RULES DO NOT PREVENT
15 THE INSTALLATION, DEFEAT THE PURPOSE OR IMPAIR THE FUNCTIONING, RESTRICT
16 THE USE OR ADVERSELY AFFECT THE COST OR EFFICIENCY OF THE DEVICE. THE
17. ASSOCIATION MAY APPLY REASONABLE LIGHTING RESTRICTIONS AND THE DEVICE
18 SHALL COMPLY WITH ANY MUNICIPAL LIGHTING ORDINANCE.

19 C. NOTWITHSTANDING ANY PROVISION OF THE COMMUNITY DOCUMENTS, THE
20 COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO ANY PARTY WHO
21 SUBSTANTIALLY PREVAILS IN AN ACTION AGAINST THE BOARD OF DIRECTORS OF THE
22 ASSOCIATION FOR A VIOLATION OF THIS SECTION.

23 Enroll and engross to conform
24 Amend title to conform

JEFF WENINGER

1535WENINGER. docx
03/19/2025

04:24 PM

H: PB/1s
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1535

DATE March 25, 2025 motion: DPA
PASS AYE NAY PRESENT | ABSENT

Aguilar i

Blackman Fil

Cavero we

Connolly A

Diaz ne gh

Hendrix ~— yi

Villegas wr

Wilmeth i

Way, Vice-Chairman ae

Weninger, Chairman "a
APPROVED: COMMITTEE SE TARY

Vee

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT 2]

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: GOV DP 4-3-0-0 | 3™ Read 17-12-1-0

SB 1094: business; discrimination prohibition; social criteria
Sponsor: Senator Hoffman, LD 15
Committee on Commerce

Overview
Precludes a financial institution, insurer or credit reporting agency from discriminating
based on political affiliation or other social credit or impact criteria.

History
A financial institution is a bank, trust company, savings and loan association, credit union,

consumer lender, international banking facility or financial institution holding company
under the jurisdiction of the Department of Insurance and Financial Institutions. An insurer
includes a person engaged in the business of making contracts of insurance. A credit reporting
agency is a person that regularly engages in the practice of assembling or evaluating
consumer credit information on consumers for the purpose of furnishing consumer reports to
third parties (A.R.S. §§ 6-101, 20-104, 44-1691).

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit
transaction. It applies to any extension of credit, including extensions of credit to small
businesses, corporations, partnerships, and trusts. The ECOA prohibits discrimination based
on race, color, religion, national origin, sex, marital status, age, the applicant’s receipt of
income derived from any public assistance program or the applicant’s exercise, in good faith,
of any right under the Consumer Credit Protection Act.

Provisions
1. Prohibits a financial institution, an insurer and a credit reporting agency from
discriminating against an individual based on:
a) political affiliation; or
b) other social credit, environmental, social justice or governmental score or similar
values-based or impact criteria. (Sec. 1)

2. Specifies the prohibition does not interfere with the ability for a financial institution, an
insurer or a credit reporting agency to discontinue or refuse to conduct business with a
person when the action is necessary for the physical safety of the employees. (Sec. 1)

38. Stipulates that a financial institution may offer investments, products or services to a
potential customer or investor that include subjective standards if the standards are fully
disclosed and explained to the potential customer or investor before entering a contract.

(Sec. 1)

4. Declares that the practice of discrimination based on social credit, environmental, social
justice and governmental score is a matter of statewide concern and threatens the rights,
proper privileges and general welfare of the state and its inhabitants. (Sec. 1)

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

SB 1094
Initials Page 1 Commerce

ATTACHMENT 2.2
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON

Commerce

BILL NO.

DATE March 25, 2025

SB 1094

MOTION: > p

PASS

AYE NAY

PRESENT

ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROV;, Mi
JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ORIN NW A

Mt, Alpes

COMMITTEE SECREAARY

ATTACHMENT. 2

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DP 4-3-0-0 | 3" Read 16-14-0-0

SB 1087: residential contractor assessments; recovery fund
Sponsor: Senator Hoffman, LD 15
Committee on Commerce

Overview

Reduces the amount that the Registrar of Contractors (ROC) can charge for an initial or
renewal biennial assessment by 50% when the amount in the Residential Contractors'
Recovery Fund (Recovery Fund) exceeds $15,000,000.

History
The ROC licenses and regulates residential and commercial contractors, investigates

complaints against contractors and is authorized to suspend or revoke licenses, conduct
hearings, issue citations and assess civil penalties. The ROC is permitted to charge
application and license fees for the issuance and renewal of specified biennial contracting
licenses. Statute requires an applicant for an initial or renewal contractor license to pay an
assessment that cannot exceed $600 which is deposited in the Recovery Fund (Title 32,
Chapter 10, A.R.S.).

The Recovery Fund is administered by the ROC for the benefit of claimants damaged by an
act, representation, transaction or conduct of a licensed residential contractor that is in
violation of statutory rules or regulations relating to contractors. The following claimants are
eligible for awards from the Recovery Fund for damages to a residential real property that is
damaged by the failure of a residential contractor to adequately build or improve a residential
structure or appurtenance: 1) individuals that own and occupy or intend to occupy the
residential real property; 2) a limited liability company that owns the residential real
property and the property is occupied by one of the company's members; 3) a revocable living
trust that owns the residential real property and whose trustors occupy or intend to occupy
the residential real property; 4) a planned community or condominium owners' association;
and 5) a lessee that occupies or intends to occupy the residential real property and contracts
directly with a residential contractor or indirectly with a subcontractor. An award from the
Recovery Fund cannot exceed the actual damages suffered by the claimant. The maximum
amount an individual claimant can be awarded from the Recovery Fund is $30,000 (A.R.S.
§§ 32-1132, 32-1132.01).

According to JLBC, the Recovery Fund year-end balance, FY 2024, is $27,569, 100.

Provisions

1. Reduces biennial assessment amount that is paid into the Recovery Fund to:
a) $370 for an initial license; and
b) $270 for a license renewal. (Sec. 1)

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

SB 1087
Initials Page 1 Commerce

ATTACHMENT 24
2. Stipulates the biennial assessments are reduced by 50% if the Recovery Fund balance
exceeds $15,000,000 at the end of a fiscal year and are reinstated to the full amounts
when the balance is less than $10,000,000 at the end of a subsequent fiscal year. (Sec. 1)

SB 1087
Initials Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1087

DATE March 25, 2025 MOTION: _DP

PASS AYE NAY PRESENT | ABSENT

Aguilar 7
Blackman AH
ee

Cavero

Connolly ue”

Diaz

Hendrix

Villegas
Wilmeth
Way, Vice-Chairman

Weninger, Chairman

MANA ARK

3 | 0 as
APPROVED: COMMITTEE SECRETARY

Var

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENTS
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: RAGE DPA 4-3-0-0 | 3% Read 17-10-2-0

SB 1353: municipal development; permits; review
Sponsor: Senator Gowan, LD 19
Committee on Commerce

Overview
Authorizes third party reviews of single-family residential building permit applications and
modifies municipal licensing time frame requirements.

History
Municipalities must post time frames during which the municipality will either grant or deny

each license required by an ordinance or code, with specified exceptions. The overall
timeframe must separately state the administrative completeness review timeframe and the
substantive review timeframe. During the substantive review timeframe, a municipality may
make: 1) one comprehensive request for corrections; and 2) supplemental requests for
corrections limited to previously identified issues, if the applicant fails to resolve an issue
identified in the comprehensive request for corrections. The substantive review timeframe
and overall timeframe are suspended from the date a request for corrections is issued until
the date the municipality receives the corrections. A municipality may consider an
application withdrawn if, by 30 days or more after the date of notice, the applicant does not
supply the documentation or information requested or an explanation of why the information
cannot be provided within the established time period. If a municipality does not issue the
applicant a written or electronic notice granting or denying a license within the overall time
frame or within mutually agreed on time frame extension, the municipality must refund to
the applicant all fees charged for reviewing and acting on the application for the license and
excuse payment of any fees that have not yet been paid (A.R.S. § 9-835).

Provisions
Third Party Reviews Building Permits

1. Stipulates, for municipalities that do not approve, conditionally approve or respond to an
application for a single-family residential building permit within 15 working days of
submittal, a required review of the application may be performed by a qualified third
party selected by the applicant. (Sec. 2)

2. Provides criteria which disqualifies a person from being selected as the qualified third
party. (Sec. 2)
3. Allows a qualified third party selected by the applicant to be:
a) a person who is employed by a third-party vendor identified on a list of approved
vendors by the municipality, if the list has more than one vendor;
b) a registered engineer or architect; or

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

SB 1353
Initials Page 1 Commerce

ATTACHMENT 2€
10.

12.

13.

14.

15.

16.

c) aperson who is certified by an international council on model codes and standards for
building safety with a credential specific to the residential code on single-family
dwelling construction and who attends a class, if offered and required, by the
municipality that exclusively reviews the municipality's adopted code amendments.

(Sec. 2)

Instructs a third party who reviews a single-family residential building permit

application to:

a) review the application and take all other related actions in accordance with
requirements adopted by the municipality; and

b) notify the municipality and the applicant of the results of the review. (Sec. 2)

Authorizes a municipality to prescribe a reasonable format for notifying the municipality
and the applicant of the results of the review. (Sec. 2)

Prohibits a municipality from requesting or requiring an applicant to waive a deadline or
other required procedure. (Sec. 2)
Allows an applicant to appeal a decision made by the municipality or qualified third-party

for a single-family residential building permit application and the result of an inspection
conducted by the municipality (Sec. 2)

Requires an appeal to be filed in a manner prescribed by the municipality within 15
working days after the date of the decision. (Sec. 2)

Stipulates if a decision regarding the appeal is not rendered within 60 working days after
the appeal is filed, the application is deemed approved, or the inspection is waived. (Sec.
2)

Asserts that a municipality which issues a permit, approval or certificate of occupancy

after a third-party plan review has qualified immunity in accordance with statute. (Sec.
2)

Specifies the applicant as responsible for any fees and costs associated with a third-party
review. (Sec. 2)

Requires the applicant to pay the fees and costs either directly to the third-party vendor
or in an agreed alternative manner. (Sec. 2)

Asserts that the municipality is not responsible for assessing or collecting any fees or
costs associated with a third-party review. (Sec. 2)

Specifies the third-party review provisions do not:

a) apply to applications required to comply with a hillside development ordinance or for
floodplain reviews; and

b) modify the authority of a building official to withhold a certificate of occupancy in
accordance with the municipality's adopted codes and ordinances. (Sec. 2)

Defines an application. (Sec. 2)
Licensing Time Frames

Requires a municipality, in establishing licensing time frames, to consider the third party
review and inspection time frames. (Sec. 3)

SB 1353

Initials Page 2 Commerce
17. Requires a municipality to, within 10 working days after a request by the applicant, meet
or discuss with the applicant the request for corrections and provide sufficient
information to allow the applicant to provide the requested corrections. (Sec. 3)

18. Prohibits a municipality, except for an application relating to municipal planning or
zoning, from denying a license application that is necessary for land development or
building construction unless the municipality considers the application withdrawn. (Sec.
3)

19. Includes additional municipal actions which require a refund of all fees charged for
reviewing and acting on the license application. (Sec. 3)

20. Provides conditions to which a municipality may only modify, rescind or request any
subsequent modifications or revisions to an approved plan or permit for land development
or building construction if such construction is done in accordance with the approved plan
or permit. (Sec. 3)

21. Eliminates the exemption of licensing time frame requirements for the construction or
development of a residential lot, including swimming pools, hardscape and property
walls, subdivisions or master planned communities. (Sec. 3)

22. Provides a definition for objective. (Sec. 3)
Miscellaneous

23. Authorizes a municipality to hold the issuance of a certificate of occupancy as a security
for assuring the installation of certain utilities and improvements meet established
standards of design and construction. (Sec. 1)

SB 1353
Initials Page 3 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S<«B. 1353

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1353
(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-STRIKRESUT-HL-BRACKETS] indicates new text removed from statute
or previously enacted session law.
[Green-strikevut—irbrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green—strikecut—ircarets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:
Section 1. Section 9-463.01, Arizona Revised Statutes, is amended
to read:

9-463.01. Authority
A. Pursuant to this article, the legislative body of every

municipality shall regulate the subdivision of all lands within its

corporate limits.
B. The legislative body of a municipality shall exercise the

9 authority granted in subsection A of this section by ordinance
10 prescribing:

ANA WNH Ee

11 1. Procedures to be followed in the preparation, submission, review
12 and approval or rejection of all final plats.

13 2. Standards governing the design of subdivision plats.

14 3. Minimum requirements and standards for the installation of

15 subdivision streets, sewer and water utilities and improvements as a
16 condition of final plat approval.

17 C. By ordinance, the legislative body of any municipality shall:

18 1. Require the preparation, submission and approval of a
19 preliminary plat as a condition precedent to submission of a final plat.
20 2. Establish the procedures to be followed in the preparation,
21 submission, review and approval of preliminary plats.

22 3. Make requirements as to the form and content of preliminary
23 plats.

24 4, Either determine that certain lands may not be subdivided, by

25 reason of adverse topography, periodic inundation, adverse soils,
26 subsidence of the earth's surface, high water table, lack of water or
27 other natural or man-made hazard to life or property, or control the lot
28 size, establish special grading and drainage requirements and impose other

ANAT HPWM

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House Amendments to S.B. 1353

regulations deemed reasonable and necessary for the public health, safety
or general welfare on any lands to be subdivided affected by such
characteristics.

5. Require payment of a proper and reasonable fee by the subdivider
based upor ON the number of lots or parcels on the surface of the land to
defray municipal costs of plat review and site inspection.

6. Require the dedication of public streets, sewer and water
utility easements or rights-of-way, within the proposed subdivision.

7. Require the preparation and submission of acceptable engineering
plans and specifications for the installation of required street, sewer,
electric and water utilities, drainage, flood control, adequacy of water
and improvements as a condition precedent to recordation of an approved
final plat.

8. Require the posting of performance bonds, assurances or such
other security as may be appropriate and necessary to assure the
installation of required street, sewer, electric and water utilities,
drainage, flood control and improvements meeting established minimum
standards of design and construction. THE MUNICIPALITY MAY HOLD THE
ISSUANCE OF A CERTIFICATE OF OCCUPANCY AS A SECURITY TO ASSURE THE
INSTALLATION OF THE REQUIRED STREETS, SEWER, ELECTRIC AND WATER UTILITIES,
DRAINAGE, FLOOD CONTROL AND IMPROVEMENTS MEETING ESTABLISHED STANDARDS OF
DESIGN AND CONSTRUCTION.

D. The legislative body of any municipality may require by
ordinance that land areas within a subdivision be reserved for parks,
recreational facilities, school sites and fire stations subject to the
following conditions:

1. The requirement may only be made wpor ON preliminary plats filed
at least thirty days after the adoption of a general or specific plan
affecting the land area to be reserved.

2. The required reservations are in accordance with definite
principles and standards adopted by the legislative body.

3. The land area reserved shall be of such a size and shape as to
permit ALLOW the remainder of the land area of the subdivision within
which the reservation is located to develop in an orderly and efficient
manner.

4. The land area reserved shall be in such multiples of streets and
parcels as to permrt ALLOW an efficient division of the reserved area in
the event that it is not acquired within the prescribed period.

E. The public agency for whose benefit an area has been reserved
shall have a period of one year after recording the final subdivision plat
to enter into an agreement to acquire such reserved land area. The
purchase price shall be the fair market value of the reserved land area at
the time of the filing of the preliminary subdivision plat plus the taxes
against such reserved area from the date of the reservation and any other
costs incurred by the subdivider in the maintenance of such reserved area,
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House Amendments to S.B. 1353

including the interest cost incurred on any loan covering such reserved
area.

F. If the public agency for whose benefit an area has been reserved
does not exercise the reservation agreement set forth in subsection E of
this section within such vurme-year ONE-YEAR period or such extended period
as may be mutually agreed wponm ON by such public agency and the
subdivider, the reservation of such area shall terminate.

G. The legislative body of every municipality shall comply with
this article and applicable state statutes pertaining to the hearing,
approval or rejection, and recordation of:

1. Final subdivision plats.

2. Plats filed for the purpose of reverting to acreage of land
previously subdivided.

3. Plats filed for the purpose of vacating streets or easements
previously dedicated to the public.

4. Plats filed for the purpose of vacating or redescribing lot or
parcel boundaries previously recorded.

H. Approval of every preliminary and final plat by a legislative
body is conditioned wpor ON compliance by the subdivider with:

1. Rules as may be established by the department of transportation
relating to provisions for the safety of entrance wporm ON and departure
from abutting state primary highways.

2. Rules as may be established by a county flood control district
relating to the construction or prevention of construction of streets in
land established as being subject to periodic inundation.

3. Rules as may be established by the department of health services
or a county health department relating to the provision of domestic water
supply and sanitary sewage disposal.

I. If the subdivision is comprisedt COMPOSED of subdivided lands, as
defined in section 32-2101, and is within an active management area, as
defined in section 45-402, the final plat shall not be approved unless it
is accompanied by a certificate of assured water supply issued by the
director of water resources, or unless the subdivider has obtained a
written commitment of water service for the subdivision from a city, town
or private water company designated as having an assured water supply by
the director of water resources pursuant to section 45-576 or is exempt
from the requirement pursuant to section 45-576. The legislative body of
the municipality shall note on the face of the final plat that a
certificate of assured water supply has been submitted with the plat or
that the subdivider has obtained a written commitment of water service for
the proposed subdivision from a city, town or private water company
designated as having an assured water supply, pursuant to section 45-576,
or is exempt from the requirement pursuant to section 45-576.

J. Except as provided in subsections K and P of this section, if
the subdivision is composed of subdivided lands as defined in section
32-2101 outside of an active management area and the director of water
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House Amendments to S.B. 1353

resources has given written notice to the municipality pursuant to section
45-108, subsection H, the final plat shall not be approved unless one of
the following applies:

1. The director of water resources has determined that there is an
adequate water supply for the subdivision pursuant to section 45-108 and
the subdivider has included the report with the plat.

2. The subdivider has obtained a written commitment of water
service for the subdivision from a city, town or private water company
designated as having an adequate water supply by the director of water
resources pursuant to section 45-108.

K. The legislative body of a municipality that has received written
notice from the director of water resources pursuant to section 45-108,
subsection H or that has adopted an ordinance pursuant to subsection 0 of
this section may provide by ordinance an exemption from the requirement in
subsection J or O of this section for a subdivision that the director of
water resources has determined will have an inadequate water supply
because the water supply will be transported to the subdivision by motor
vehicle or train if all of the following apply:

1. The legislative body determines that there is no _ feasible
alternative water supply for the subdivision and that the transportation
of water to the subdivision will not constitute a significant risk to the
health and safety of the residents of the subdivision.

2. If the water to be transported to the subdivision will be
withdrawn or diverted in the service area of a municipal provider as
defined in section 45-561, the municipal provider has consented to the
withdrawal or diversion.

3. If the water to be transported is groundwater, the
transportation complies with the provisions governing the transportation
of groundwater in title 45, chapter 2, article 8.

4. The transportation of water to the subdivision meets any
additional conditions imposed by the legislative body.

L. A municipality that adopts the exemption authorized by
subsection K of this section shall give written notice of the adoption of
the exemption, including a certified copy of the ordinance containing the
exemption, to the director of water resources, the director of
environmental quality and the state real estate commissioner. If the
municipality later rescinds the exemption, the municipality shall give
written notice of the rescission to the director of water resources, the
director of environmental quality and the state real estate commissioner.
A municipality that rescinds an exemption adopted pursuant to subsection K
of this section shall not readopt the exemption for at least five years
after the rescission becomes effective.

M. If the legislative body of a municipality approves a subdivision
plat pursuant to subsection J, paragraph 1 or 2 or subsection O of this
section, the legislative body shall note on the face of the plat that the
director of water resources has reported that the subdivision has an
OnNanPwWNMe-E

House Amendments to S.B. 1353

adequate water supply or that the subdivider has obtained a commitment of
water service for the proposed subdivision from a city, town or private
water company designated as having an adequate water supply pursuant to
section 45-108.

N. If the legislative body of a municipality approves a subdivision
plat pursuant to an exemption authorized by subsection K of this section
or granted by the director of water resources pursuant to section
45-108.02 or 45-108.03:

1. The legislative body shall give written notice of the approval
to the director of water resources and the director of environmental
quality.

2. The legislative body shall include on the face of the plat a
statement that the director of water resources has determined that the
water supply for the subdivision is inadequate and a statement describing
the exemption under which the plat was approved, including a statement
that the legislative body or the director of water resources, whichever
applies, has determined that the specific conditions of the exemption were
met. If the director subsequently informs the legislative body that the
subdivision is being served by a water provider that has been designated
by the director as having an adequate water supply pursuant to section
45-108, the legislative body shall record in the county recorder's office
a statement disclosing that fact.

O. If a municipality has not been given written notice by the
director of water resources pursuant to section 45-108, subsection H, the
legislative body of the municipality, to protect the public health and
safety, may provide by ordinance that, except as provided in subsections K
and P of this section, the final plat of a subdivision located in the
municipality and outside of an active management area will not be approved
by the legislative body unless the director of water resources has
determined that there is an adequate water supply for the subdivision
pursuant to section 45-108 or the subdivider has obtained a written
commitment of water service for the subdivision from a city, town or
private water company designated as having an adequate water supply by the
director of water resources pursuant to section 45-108. Before holding a
public hearing to consider whether to enact an ordinance pursuant to this
subsection, a municipality shall provide written notice of the hearing to
the board of supervisors of the county in which the municipality is
located. A municipality that enacts an ordinance pursuant to _ this
subsection shall give written notice of the enactment of the ordinance,
including a certified copy of the ordinance, to the director of water
resources, the director of environmental quality, the state real estate
commissioner and the board of supervisors of the county in which the
municipality is located. If a municipality enacts an ordinance pursuant
to this subsection, water providers may be eligible to receive monies in a
water supply development fund, as otherwise provided by law.

P, Subsections J and O of this section do not apply to:
ONADOHPWNDM

House Amendments to S.B. 1353

1. A proposed subdivision that the director of water resources has
determined will have an inadequate water supply pursuant to section 45-108
if the director grants an exemption for the subdivision pursuant to
section 45-108.02 and the exemption has not expired or if the director
grants an exemption pursuant to section 45-108.03.

2. <A proposed subdivision that received final plat approval from
the municipality before the requirement for an adequate water supply
became effective in the municipality if the plat has not been materially
changed since it received the final plat approval. If changes were made
to the plat after the plat received the final plat approval, the director
of water resources shall determine whether the changes are material
pursuant to the rules adopted by the director to implement section
45-108. If the municipality approves a plat pursuant to this paragraph
and the director of water resources has determined that there is an
inadequate water supply for the subdivision pursuant to section 45-108,
the municipality shall note this on the face of the plat.

Q. If the subdivision is composed of subdivided lands as defined in
section 32-2101 outside of an active management area and the municipality
has not received written notice pursuant to section 45-108, subsection H
and has not adopted an ordinance pursuant to subsection 0 of this section:

1. If the director of water resources has determined that there is
an adequate water supply for the subdivision pursuant to section 45-108 or
if the subdivider has obtained a written commitment of water service for
the subdivision from a city, town or private water company designated as
having an adequate water supply by the director of water resources
pursuant to section 45-108, the municipality shall note this on the face
of the plat if the plat is approved.

2. If the director of water resources has determined that there is
an inadequate water supply for the subdivision pursuant to section 45-108,
the municipality shall note this on the face of the plat if the plat is
approved.

R. Every municipality is responsible for the recordation of al]
final plats approved by the legislative body and shall receive from the
subdivider and transmit to the county recorder the recordation fee
established by the county recorder.

S. Pursuant to provisions of applicable state statutes, the
legislative body of any municipality may itself prepare or have prepared a
plat for the subdivision of land under municipal ownership.

T. The legislative bodies of cities and towns may regulate by
ordinance land splits within their corporate limits. Authority granted
under this section refers to the determination of division lines, area and
shape of the tracts or parcels and does not include authority to regulate
the terms or condition of the sale or lease nor does it include the
authority to regulate the sale or lease of tracts or parcels that are not
the result of land splits as defined in section 9-463.
WOON A TAHWNHE

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House Amendments to S.B. 1353

U. For any subdivision that consists of ten or fewer lots, tracts
or parcels, each of which is of a size as prescribed by the legislative
body, the legislative body of each municipality may expedite the
processing of or waive the requirement to prepare, submit and receive
approval of a preliminary plat as a condition precedent to submitting a
final plat and may waive or reduce’ infrastructure standards’ or
requirements proportional to the impact of the subdivision. Requirements
for dust-controlled access and drainage improvements shall not be waived.

Sec. 2. Title 9, chapter 4, article 6.4, Arizona Revised Statutes,
is amended by adding section 9-470.01, to read:

9-470.01. Building permits; third-party review; appeals:

immun : LUTTYs inition

A. IF A MUNICIPALITY WITH A POPULATION OF THIRTY THOUSAND PERSONS
OR MORE DOES NOT APPROVE, CONDITIONALLY APPROVE OR RESPOND WITH REQUIRED
ADDITIONS OR REVISIONS TO AN APPLICATION FOR A SINGLE-FAMILY RESIDENTIAL
BUILDING PERMIT WITHIN FIFTEEN WORKING DAYS AFTER THE DATE THE APPLICATION
IS SUBMITTED, ANY REQUIRED REVIEW OF THE APPLICATION MAY BE PERFORMED BY A
QUALIFIED THIRD PARTY SELECTED BY THE MUNICIPALITY PURSUANT TO THE
REQUIREMENTS OF THIS SECTION. A MUNICIPALITY SHALL MAINTAIN A LIST OF AT
LEAST THREE THIRD-PARTY REVIEWERS WHO ARE ELIGIBLE TO BE HIRED BY THE
MUNICIPALITY TO PERFORM A BUILDING PERMIT APPLICATION REVIEW PURSUANT TO
THIS SECTION.

B. A THIRD PARTY WHO REVIEWS A SINGLE-FAMILY RESIDENTIAL BUILDING
PERMIT APPLICATION PURSUANT TO THIS SECTION SHALL DO BOTH OF THE
FOLLOWING:

1. REVIEW THE APPLICATION AND TAKE ALL OTHER RELATED ACTIONS IN
ACCORDANCE WITH ALL REQUIREMENTS ADOPTED BY THE MUNICIPALITY WHERE THE
APPLICATION WAS SUBMITTED.

2. NOTIFY THE MUNICIPALITY AND THE APPLICANT OF THE RESULTS OF THE
REVIEW.

C. A MUNICIPALITY MAY NOT REQUEST OR REQUIRE AN APPLICANT TO WAIVE
A DEADLINE OR OTHER PROCEDURE REQUIRED BY THIS SECTION.

D. THE APPLICANT MAY APPEAL A DECISION BY THE MUNICIPALITY TO
APPROVE, CONDITIONALLY APPROVE OR DENY A_ SINGLE-FAMILY RESIDENTIAL
BUILDING PERMIT APPLICATION.

E. A MUNICIPALITY THAT ISSUES A PERMIT, APPROVAL OR CERTIFICATE OF
OCCUPANCY AFTER A THIRD-PARTY PLAN REVIEW PURSUANT TO THIS SECTION SHALL
HAVE IMMUNITY AS PRESCRIBED IN SECTIONS 12-820.01 AND 12-820.02.

F. THE APPLICANT IS RESPONSIBLE FOR ANY FEES AND COSTS ASSOCIATED
WITH A THIRD-PARTY REVIEW AND SHALL PAY THE FEES AND COSTS TO THE
MUNICIPALITY.

G. THIS SECTION DOES NOT APPLY TO APPLICATIONS REQUIRED TO COMPLY
WITH A HILLSIDE DEVELOPMENT ORDINANCE OR FOR FLOODPLAIN REVIEWS THAT ARE
REQUIRED PURSUANT TO FEDERAL FLOODPLAIN REGULATIONS.

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House Amendments to S.B. 1353

H. THIS SECTION DOES NOT MODIFY THE AUTHORITY OF A_ BUILDING
OFFICIAL TO WITHHOLD A CERTIFICATE OF OCCUPANCY IN ACCORDANCE WITH THE
MUNICIPALITY'S ADOPTED CODES AND ORDINANCES.

I. FOR THE PURPOSES OF THIS SECTION, "APPLICATION":

1. MEANS A PLAN, PERMIT OR OTHER DOCUMENT THAT IS RELATED TO
BUILDING CONSTRUCTION AND THAT IS NECESSARY FOR THE CONSTRUCTION OF A
SINGLE-FAMILY RESIDENTIAL DWELLING UNIT.

2. DOES NOT INCLUDE EITHER:

(a) A CERTIFICATE OF OCCUPANCY.

(b) A SUBDIVISION PREPLAT.

Sec. 3. Section 9-835, Arizona Revised Statutes, is amended to
read:

9-835. Licensing time frames; compliance; consequence for

failure to comply with time frame; exemption

A. For any new ordinance or code requiring a license, a
municipality shall have in place an overall time frame during which the
municipality will either grant or deny each type of license that it
issues. The overall time frame for each type of license shall state
separately the administrative completeness review time frame and the
substantive review time frame and shall be posted on the municipality's
website or the website of an association of cities and towns if the
municipality does not have a website.

B. @ir—or—before—december—3t,— 2012, A municipality that issues
licenses required under existing ordinances or codes shall have in place
an overall time frame during which the municipality will either grant or
deny each type of license that it issues. The overall time frame for each
type of license shall state separately the administrative completeness
review time frame and the substantive review time frame and shall be
posted on the municipality's website or the website of an association of
cities and towns if the municipality does not have aé_e website.
Municipalities shall prioritize the establishment of time frames for those
licenses that have the greatest impact on the public.

C. In establishing time frames, municipalities shall consider all

of the following:

1. The complexity of the licensing subject matter.

2. The resources of the municipality.

3. The economic impact of delay on the regulated community.

4. The impact of the licensing decision on public health and
safety.

5. The possible use of volunteers with expertise in the subject
matter area.

6. The possible increased use of general licenses for similar types

of licensed businesses or facilities.
7. The possible increased cooperation between the municipality and

the regulated community.
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House Amendments to S.B. 1353

8. Increased municipal flexibility in structuring the licensing
process and personnel including:

(a) Adult businesses and other licenses that are related to the
first amendment.

(b) Master planned communities.

(c) Suspension of the substantive and overall time frames for
purposes including delays caused by the need for public hearings, state or
federal licenses or approvals from public utilities on residential or
commercial development projects.

9. That the substantive review time frames and overall time frames
do not include the time required for an applicant to obtain other
nonmunicipal licenses or to participate in meetings as required by law.

10. THE TIME FRAMES PRESCRIBED IN SECTION 9-470.01.

D. A municipality shall issue a written or electronic notice of
administrative completeness or deficiencies to an applicant for a license
within the administrative completeness review time frame. If the permit
sought requires approval of more than one department of the municipality,
each department may issue a written or electronic notice of administrative
completeness or deficiencies.

E. If a municipality determines that an application for a license
is not administratively complete, the municipality shall include a
comprehensive list of the specific deficiencies in the written or
electronic notice provided pursuant to subsection D of this section. If
the municipality issues a written or electronic notice of deficiencies
within the administrative completeness time frame, the administrative
completeness review time frame and the overall time frame are suspended
from the date the notice is issued until the date that the municipality
receives the missing information from the applicant. The municipality may
issue an additional written or electronic notice of administrative
completeness or deficiencies based on the applicant's submission of
missing information. If the permit sought requires approval of more than
one department of the municipality, each department may issue an
additional written or electronic notice of administrative completeness or
deficiencies based on the applicant's submission of missing information.
OnNanfwonrr

House Amendments to S.B. 1353

F. If a municipality does not issue a written or electronic notice
of administrative completeness or deficiencies within the administrative
completeness review time frame, the application is deemed administratively
complete. If a municipality issues a timely written or electronic notice
of deficiencies, an application statt IS not te complete until all
requested information has been’ received by the municipality. A
municipality may consider an application withdrawn if, by fifteen days or
more after the date of notice, as established by the municipality, the
applicant does not supply the documentation or information requested or an
explanation of why the information cannot be provided within the
established time period.

G. During the substantive review time frame, a municipality may
make one comprehensive written or electronic request for corrections. If
the municipality identifies legal requirements that were not included in
the comprehensive request for corrections, the municipality may amend the
comprehensive request for corrections once to include the legal
requirements and the legal authority for the requirements. WITHIN TEN
WORKING DAYS AFTER A REQUEST BY THE APPLICANT, THE MUNICIPALITY SHALL MEET
OR DISCUSS WITH THE APPLICANT THE REQUEST FOR CORRECTIONS AND PROVIDE
SUFFICIENT INFORMATION AND INSTRUCTION TO ALLOW THE APPLICANT TO PROVIDE
THE REQUESTED CORRECTIONS. If the permit sought requires approval of more
than one department of the municipality, each department may issue a
comprehensive written or electronic request for corrections. If the
applicant fails to resolve an issue identified in a request for
corrections, the municipality may make supplemental written or electronic
requests for corrections that are limited to issues previously identified
in a comprehensive request for corrections. If a municipality issues a
comprehensive written or electronic request or a supplemental request for
corrections, the substantive review time frame and the overall time frame
are suspended from the date the request is issued until the date that the
municipality receives the corrections from the applicant. If an applicant
requests significant changes, alterations, additions or amendments to an
application that are consistent with the purposes of the original
application and that are not in response to the request for corrections, a
municipality may make one additional comprehensive written or electronic
request for corrections and may have tro NOT more than an additional fifty
per—cert PERCENT of the substantive review time frame as established by
the municipality for that license to grant or deny the license. Nothing
shall prevent communication between a municipality and an applicant
regarding a comprehensive written or electronic request for corrections or
a supplemental request for corrections. EXCEPT FOR AN APPLICATION
SUBMITTED PURSUANT TO CHAPTER 4, ARTICLE 6 OR 6.1 OF THIS TITLE, A
MUNICIPALITY MAY NOT DENY A RESIDENTIAL LICENSE APPLICATION THAT IS
NECESSARY FOR LAND DEVELOPMENT OR BUILDING CONSTRUCTION UNLESS THE
MUNICIPALITY CONSIDERS THE APPLICATION WITHDRAWN OR THE MUNICIPALITY HAS
NOTIFIED THE APPLICANT AND THE PROPERTY OWNER WITHIN FIFTEEN [WORKING]

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ONaAnOfPWNE

House Amendments to S.B. 1353

DAYS AFTER THE SUBMISSION OF THE APPLICATION THAT THE APPLICATION MAY BE
SUBJECT TO DENIAL BECAUSE OF EXCESSIVE SUBSTANTIVE DEFICIENCIES. A
municipality may consider an application withdrawn if, by thirty days or
more after the date of notice, as established by the municipality, the
applicant does not supply the documentation or information requested or an
explanation of why the information cannot be provided within the
established time period.

H. Nothing shall prevent the municipality from continuing to
process the application during the suspension of the substantive review
time frame and overall time frame.

I. By mutual written or electronic agreement, a municipality and an
applicant for a license may extend the substantive review time frame and
the overall time frame. An extension of the substantive review time frame
and the overall time frame may not exceed fifty per~cemt PERCENT of the

overall time frame.
J. Unless a municipality and an applicant for a license mutually

agree to extend the substantive review time frame and the overall time
frame pursuant to subsection I of this section, a municipality shall issue
a written or electronic notice granting or denying a license to an
applicant. If a municipality denies or withdraws an application for a
license, the municipality shall include in the written or electronic
notice at least the following information:

1. Justification for the denial or withdrawal with references to
the statutes, ordinances, codes or substantive policy statements on which
the denial or withdrawal is based.

2. An explanation of the applicant's right to appeal the denial or
withdrawal. The explanation shall include the number of working days in
which the applicant must file a protest challenging the denial or
withdrawal and the name and telephone number of a municipal contact person
who can answer questions regarding the appeals process.

3. An explanation of the applicant's right to resubmit the
application, the total amount of fees that will be assessed if the
applicant resubmits the application and the method in which those fees
were calculated.

K. If a municipality MAKES MORE THAN ONE COMPREHENSIVE WRITTEN OR
ELECTRONIC REQUEST FOR CORRECTIONS AND ONE SUPPLEMENTAL WRITTEN OR
ELECTRONIC REQUEST FOR CORRECTIONS LIMITED TO PREVIOUSLY IDENTIFIED ISSUES
OR IN RESPONSE TO MODIFICATIONS MADE BY THE APPLICANT OR does not issue
the applicant the written or electronic notice granting, CONDITIONALLY
GRANTING or denying a license within the overall time frame or within the
mutually agreed on time frame extension, the municipality shall refund to
the applicant all fees charged for reviewing and acting on the application
for the license and shall excuse payment of any fees that have not yet
been paid. The municipality shall not require an applicant to submit an
application for a refund pursuant to this subsection. The refund shall be
made within thirty working days after the expiration of the overall time

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OnNOAOHBPWDNY FE

House Amendments to S.B. 1353

frame or the time frame extension. The municipality shall continue to
process the application. Notwithstanding any other statute, the
municipality shall make the refund from the fund in which the application
fees were originally deposited. The right to receive a refund of fees
charged for reviewing and acting on the application for the license may
not be waived by an applicant.

L. If an application for a license is denied and the applicant
resubmits the application for the same purposes with only revisions or
corrections to the original application, the municipality shall not assess
any additional application fees that exceed the cost of processing the
resubmitted revisions or corrections. This subsection does not apply to
license applications that were denied for disqualifying criminal
convictions or that were submitted fraudulently.

M. If an application for a license is withdrawn and the applicant
resubmits the application for the same purpose, the municipality shall not
assess any additional application fees that exceed fifty per—cemt PERCENT
of the original appticamt APPLICATION fees that have not been refunded to
the applicant. This subsection does not apply to license applications
that were denied for disqualifying criminal convictions or that were
submitted fraudulently.

N. A MUNICIPALITY MAY NOT MODIFY, RESCIND OR REQUEST ANY SUBSEQUENT
MODIFICATIONS OR REVISIONS TO AN APPROVED PLAN OR PERMIT FOR [RESIDENTIAL]
LAND DEVELOPMENT OR [RESIDENTIAL] BUILDING CONSTRUCTION DURING
CONSTRUCTION IF THE CONSTRUCTION IS DONE IN ACCORDANCE WITH THE APPROVED
PLAN OR PERMIT UNLESS THE MODIFICATION, RESCISSION OR REVISION IS ANY OF
THE FOLLOWING:

1. REQUIRED TO ADDRESS A FIELD CONDITION THAT WAS UNKNOWN WHEN THE
PLAN OR PERMIT WAS REVIEWED.

2. MADE AT THE REQUEST OF THE APPLICANT, THE APPLICANT'S DESIGNEE
OR A SUBSEQUENT OWNER OR OWNER'S DESIGNEE IF THE PROPERTY THAT IS THE
SUBJECT OF THE APPROVED PLAN OR PERMIT CHANGES OWNERSHIP. FOR THE
PURPOSES OF THIS PARAGRAPH, "APPLICANT" MEANS A PERSON THAT IS SEEKING
APPROVAL OR HAS RECEIVED APPROVAL FROM A MUNICIPALITY FOR CONSTRUCTION OR
LAND DEVELOPMENT ACTIVITIES.

3. MADE BY THE MUNICIPALITY TO CORRECT NONCOMPLIANCE WITH A CODE
REQUIREMENT UNLESS THE CODE REQUIREMENT WAS IDENTIFIED BEFORE THE PLAN WAS
APPROVED AND THE MUNICIPALITY MADE A DECISION OR INTERPRETATION ON WHICH
THE APPROVAL WAS BASED.

tt 0. This section does not apply to a license that is eitthery

t- issued within seven working days after receipt of the initial
application or a permit that expires within twenty-one working days after

issuance.

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OnNaAOHP WN FE

House Amendments to S.B. 1353

Enroll and engross to conform
Amend title to conform

LAURIN HENDRIX

1353HENDRIX.docx
03/21/2025
03:00 PM

LG@/ra

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1353

DATE March 25, 2025 motion: DPA

PASS AYE NAY PRESENT | ABSENT
Aguilar a

Blackman ge
Cavero ”

Connolly

Diaz

Hendrix

Villegas

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Way, Vice-Chairman

Weninger, Chairman

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APPROVED: COMMITTEE SEQRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 20 __

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: PS DPA/SE 7-0-0-0 | 3" Read 22-7-1-0

SB 1057: NOW: commerce; trade; passport identification
S/E: marijuana; rural opportunity initiative
Sponsor: Senator Gowan, LD 19
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1057

Overview
Provides requirements for the Department of Health Services (DHS) in establishing a rural
opportunity initiative.

History
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a

regulatory system, overseen by DHS, that allows a dispensary to dispense a permissible
amount of medical marijuana to a qualifying patient or the qualifying patient's designated
caregiver (Title 36, Chapter 28.1, A.R.S.). In 2020, Arizona voters approved the Smart and
Safe Arizona Act which legalized the sale and use of recreational marijuana to Arizonans
who are at least 21 years of age (Title 36, Chapter 28.2, A.R.S.).

Current statute requires DHS to adopt rules to implement, enforce and regulate marijuana,
marijuana products, marijuana establishments and marijuana testing facilities that include
requirements for licensing marijuana establishments. DHS may only issue one marijuana
establishment license for every 10 registered pharmacies that have obtained a pharmacy
permit from the Arizona Board of Pharmacy and that operate within Arizona. DHS may also
only issue a marijuana establishment license to two marijuana establishments per county
that have no registered nonprofit medical marijuana dispensaries, or one marijuana
establishment license per county that has one registered nonprofit medical marijuana
dispensary. Licenses issued by DHS to marijuana establishments and marijuana testing
facilities are valid for two years (A.R.S. § 36-2854).

Provisions
1. Instructs DHS, by July 1, 2026, to establish and implement a rural opportunity initiative
to create a tax revenue and economic opportunities for rural communities. (Sec. 2, 3)

2. Requires DHS, by August 1, 2026, to post a form on its website that allows an unserved
rural community to inform DHS its intention to opt out of participation in the rural
opportunity initiative. (Sec. 3)

3. Allows a county to opt out of participation on behalf of census-designated areas and to
withdraw its opt-out form at any time. (Sec. 3)

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

SB 1057
Initials Page 1 Commerce

ATTACHMENT 29
10.

12.

13,

14,

15.

Requires DHS, by October 1, 2026, to post a current list of unserved rural communities
that have opted out of the rural opportunity initiative. (Sec. 3)

Instructs DHS, beginning October 1, 2026, to accept applications from qualified
applicants and issue a marijuana establishment license and a nonprofit medical
marijuana dispensary registration certificate to the qualified applicant that first applies
to serve the unserved rural community. (Sec. 3)

Provides qualification requirements for licensure in accordance with the rural
opportunity initiative. (Sec. 3)

Stipulates entities that are issued a marijuana establishment license and a nonprofit

medical marijuana dispensary registration certificate in accordance with the rural

opportunity initiative:

a) must be licensed by DHS to operate only one retail location and one off-site location
at which the entity may cultivate marijuana and manufacture marijuana products;

b) may operate an off-site location only at a property where cultivation operations were
conducted with approval for at least one day during the 18 months immediately
preceding the entity's date of application to operate at the off-site cultivation location;

c) is not required to operate the entity's retail site for more than 24 hours each week;
and

d) must open the entity's retail site within 18 months after being issued a marijuana
establishment license or the marijuana establishment license becomes invalid. (Sec.
3)

Allows entities that are issued a marijuana establishment license and a nonprofit medical
marijuana dispensary registration certificate in accordance with the rural opportunity
initiative to move its retail site only to another unserved rural community that has not
opted out of the rural opportunity initiative. (Sec. 3)

Defines unserved rural community. (Sec. 3)

Instructs DHS to issue a nonprofit medical marijuana dispensary registration certificate
to each entity that qualifies for a marijuana establishment license in accordance with a
rural opportunity initiative. (Sec. 1)

Allows such registration certificate holders to relocate their retail site only to another
unserved rural community. (Sec. 1)

Requires DHS to issue a marijuana establishment license to each qualified entity in
accordance with the rural opportunity initiative. (Sec. 1)

Specifies the marijuana establishment license issued in accordance with the rural
opportunity initiative is for a fixed community that has not opted out of the rural
opportunity initiative. (Sec. 2)

Limits the number of marijuana establishment licenses that may be issued in accordance
with the rural opportunity initiative to no more than 18. (Sec. 2)

Contains a Prop 105 clause. (Sec. 4)

SB 1057

Initials Page 2 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1057

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PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1057

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Subject to the requirements of article IV, part 1,
section 1, Constitution of Arizona, section 36-2803.01, Arizona Revised

Statutes, is amended to read:

36-2803.01. New dispensary registration certificates:

issuance; priority; requirements; definition

A. EXCEPT AS PROVIDED IN SUBSECTION E OF THIS SECTION, beginning on

April 1, 2020, the department shall issue all new nonprofit medical
marijuana dispensary registration certificates in the following order of
priority based on the dispensary's geographic area as described in the
registration certificate application:

1. The geographic area had a registered nonprofit medical marijuana
dispensary move from the geographic area and the geographic area is at
least twenty-five miles from another dispensary that has been issued a
dispensary registration certificate.

2. The geographic area is at least twenty-five miles from another
dispensary that has been issued a dispensary registration certificate.

3. According to rule, +f there are no dispensary registration
certificate applications as described in paragraph 1 or 2 of this
subsection.

B. If the department receives multiple applications as described in
subsection A, paragraph 1 of this section from previously approved
nonprofit medical marijuana dispensary locations, the department shall
approve the certificate for the application that serves the most qualifying
patients within five miles of the proposed dispensary location. If the

department receives multiple applications as described in subsection A,

ATTACHMENT 30
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House Amendments to S.B. 1057

paragraph 2 of this section or if there are no applications from previously
approved dispensary locations, the department may issue the registration
certificate by random drawing.

C. A nonprofit medical marijuana dispensary that receives a
registration certificate pursuant to subsection A, paragraph 1 or 2 OR
SUBSECTION E of this section on or after April 1, 2020 must open the
dispensary at the approved location within eighteen months after the
application is approved or the registration certificate becomes invalid.

D. A nonprofit medical marijuana dispensary that is issued a
registration certificate pursuant to subsection A, paragraph 1 or 2 of this
section may relocate only as follows:

1. If the dispensary is located within a city or town, only within
that city or town.

2. If the dispensary is located within an unincorporated area, only
within the unincorporated area of the county where the dispensary is
located but not within twenty-five miles from another dispensary that has
been issued a dispensary registration certificate.

E. NOTWITHSTANDING ANY OTHER’ PROVISION OF THIS CHAPTER, THE
DEPARTMENT SHALL ISSUE A NONPROFIT MEDICAL MARIJUANA DISPENSARY
REGISTRATION CERTIFICATE TO EACH ENTITY THAT IS ISSUED A MARIJUANA
ESTABLISHMENT LICENSE PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH
1, SUBDIVISION (g) AND ALLOW THESE REGISTRATION CERTIFICATE HOLDERS TO
RELOCATE THEIR RETAIL SITE ONLY TO ANOTHER UNSERVED RURAL COMMUNITY IN
ACCORDANCE WITH SECTION 36-2857.01.

t> +F. For the purposes of this section, “geographic area" means a
city, town or unincorporated area of a county.

Sec. 2. Subject to the requirements of article IV, part 1,
section 1, Constitution of Arizona, section 36-2854, Arizona Revised
Statutes, is amended to read:

36-2854. Rules; licensing; early applicants; fees; civil

penalty; legal counsel
A. The department shall adopt rules to implement and enforce this

chapter and regulate marijuana, marijuana products, marijuana

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House Amendments to S.B. 1057

establishments and marijuana testing facilities. Those rules shall include
requirements for:

1. Licensing marijuana establishments and marijuana’ testing
facilities, including conducting investigations and background checks to
determine eligibility for licensing for marijuana establishment and
marijuana testing facility applicants, except that:

(a) An application for a marijuana establishment license or
marijuana testing facility license may not require the disclosure of the
identity of any person who is entitled to a share of less than ten percent
of the profits of an applicant that is a publicly traded corporation.

(b) The department may not issue more than one marijuana
establishment license for every ten pharmacies that have registered under
section 32-1929, that have obtained a pharmacy permit from the Arizona
board of pharmacy and that operate within this state.

(c) Notwithstanding subdivision (b) of this paragraph, the
department may issue a marijuana establishment license to not more than two
marijuana establishments per county that contains no registered nonprofit
medical marijuana dispensaries, or one marijuana establishment license per
county that contains one registered nonprofit medical marijuana
dispensary. Any license issued pursuant to this subdivision shall be for a
fixed county and may not be relocated outside of that county.

(d) The department shall accept applications for marijuana
establishment licenses from early applicants beginning January 19, 2021
through March 9, 2021. Not later than sixty days after receiving an
application pursuant to this subdivision, the department shall issue a
marijuana establishment license to each qualified early applicant. If the
department has not adopted final rules pursuant to this section at the time
marijuana establishment licenses are issued pursuant to this subdivision,
licensees shall comply with the rules adopted by the department to
implement chapter 28.1 of this title except those that are inconsistent
with this chapter.

(e) After issuing marijuana establishment licenses to qualified
early applicants, the department shall issue marijuana establishment

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House Amendments to S.B. 1057

licenses available under subdivisions (b) and (c) of this paragraph by
random selection and according to rules adopted pursuant to this section.
At least sixty days before any random selection, the department shall
prominently publicize the random selection on its website and through
other means of general distribution intended to reach as many interested
parties as possible and shall provide notice through an email notification
system to which interested parties can subscribe.

(f) Notwithstanding subdivisions (b) and (c) of this paragraph, and
not later than six months after the department adopts final rules to
implement a social equity ownership program pursuant to paragraph 9 of this
subsection, the department shall issue twenty-six additional marijuana
establishment licenses to entities that are qualified pursuant to the
social equity ownership program.

(g) NOTWITHSTANDING SUBDIVISIONS (b) AND (c) OF THIS PARAGRAPH, THE
DEPARTMENT SHALL ISSUE A MARIJUANA ESTABLISHMENT LICENSE TO EACH ENTITY
THAT IS QUALIFIED PURSUANT TO THE RURAL OPPORTUNITY INITIATIVE. THE
LICENSES ISSUED PURSUANT TO THIS SUBDIVISION SHALL BE FOR A FIXED COMMUNITY
THAT HAS NOT OPTED OUT OF THE RURAL OPPORTUNITY INITIATIVE, AND THE
ENTITY'S RETAIL SITE MAY BE RELOCATED ONLY TO AN UNSERVED RURAL COMMUNITY
IN ACCORDANCE WITH SECTION 36-2857.01. THE DEPARTMENT MAY NOT ISSUE MORE
THAN EIGHTEEN MARIJUANA’ ESTABLISHMENT LICENSES PURSUANT TO THIS
SUBDIVISION.

tay (h) Licenses issued by the department to marijuana
establishments and marijuana testing facilities shall be valid for a period
of two years. A dual licensee's initial renewal date, which will be the
ongoing renewal date for both the dual licensee's marijuana establishment
license and nonprofit medical marijuana dispensary registration, is the
earlier of:

(i) The date of the marijuana establishment license renewal.

(ii) The date of the nonprofit medical marijuana dispensary
registration renewal.

tty (i) The department may not issue a marijuana establishment or
marijuana testing facility license to an applicant who has an ownership

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House Amendments to S.B. 1057

interest in an out-of-state marijuana establishment or marijuana testing
facility, or the other state's equivalent, that has had its license revoked
by the other state.

2. Licensing fees and renewal fees for marijuana establishments and
marijuana testing facilities in amounts that are reasonable and related to
the actual cost of processing applications for licenses and renewals and
that do not exceed five times the fees prescribed by the department to
register or renew a nonprofit medical marijuana dispensary.

3. The security of marijuana establishments and marijuana testing
facilities.

4. Marijuana establishments to safely cultivate, process’ and
manufacture marijuana and marijuana products. The department shall require
licensees to procure, develop, acquire and maintain a system to track
marijuana and marijuana products at all points of cultivation,
manufacturing and sale. The system developed and maintained pursuant to
this paragraph shall:

(a) Ensure an accurate accounting and reporting of the production,
processing and sale of marijuana and marijuana products.

(b) Ensure compliance with rules adopted by the department.

(i) The propagation of immature marijuana plants and the production
of marijuana by a marijuana establishment.

(ii) The processing of marijuana and marijuana products by a
marijuana establishment.

(iii) The sale and purchase of marijuana and marijuana products
between licensees.

(iv) The transfer of marijuana and marijuana products between
premises for which licenses have been issued.

(v) The disposal of marijuana waste.

(vi) The identity of the person making the entry in the system and
the time, date and location of each entry into the system, including any

corrections or changes to that information.

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House Amendments to S.B. 1057

(vii) Any other information that the department determines is
reasonably necessary to accomplish the duties, functions and powers of the
department.

(d) Contain a transactional stamp to ensure accuracy, provide for
chain of custody of the information and foreclose tampering of the data,
human error or intentional misreporting.

5. Tracking, testing, labeling consistent with section 36-2854.01
and packaging marijuana and marijuana products, including requirements that
marijuana and marijuana products be:

(a) Sold to consumers in clearly and conspicuously labeled
containers that contain accurate warnings regarding the use of marijuana or
marijuana products.

(b) Placed in child-resistant packaging on exit from a marijuana
establishment.

6. Forms of government-issued identification that are acceptable by
a marijuana establishment verifying a consumer's age and procedures related
to verifying a consumer's age consistent with section 4-241. Until the
department adopts final rules related to verifying a consumer's age,
marijuana establishments shall comply with the proof of legal age
requirements prescribed in section 4-241.

7. The potency of edible marijuana products that may be sold to
consumers by marijuana establishments at reasonable levels on consideration
of industry standards, except that the rules:

(a) Shall limit the strength of edible marijuana products to not
more than ten milligrams of tetrahydrocannabinol per serving or one hundred
milligrams of tetrahydrocannabinol per package.

(b) Shall require that if a marijuana product contains more than one
serving, it must be delineated or scored into standard serving sizes and
homogenized to ensure uniform disbursement throughout the marijuana
product.

8. Ensuring the health, safety and training of employees of

marijuana establishments and marijuana testing facilities.

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House Amendments to S.B. 1057

9. The creation and implementation of a social equity ownership
program to promote the ownership and operation of marijuana establishments
and marijuana testing facilities by individuals from communities
disproportionately impacted by the enforcement of previous marijuana laws.

10. Prohibiting a marijuana testing facility from having any direct
or indirect familial relationship with or financial ownership interest in a
marijuana establishment or related marijuana business entity or management
company. The rules shall include prohibiting a marijuana establishment
from having any direct or indirect familial relationship with or financial
ownership interest in a marijuana testing facility or related marijuana
business entity or management company.

11. Requiring marijuana establishments to display in a conspicuous
location a sign that warns pregnant women about the potential dangers to
fetuses caused by smoking or ingesting marijuana while pregnant or to
infants while breastfeeding and the risk of being reported to the
department of child safety during pregnancy or at the birth of the child by
persons who are required to report. The rules shall include the specific
warning language that must be included on the sign. The cost and display
of the sign required by rule shall be borne by the marijuana establishment.

12. ESTABLISHING AND IMPLEMENTING A RURAL OPPORTUNITY INITIATIVE IN
ACCORDANCE WITH SECTION 36-2857.01 TO CREATE TAX REVENUE AND ECONOMIC
OPPORTUNITIES FOR RURAL COMMUNITIES.

B. The department may:

1. Subject to title 41, chapter 6, article 10, deny any application
submitted or deny, suspend or revoke, in whole or in part, = any
registration or license issued under this chapter if the registered or
licensed party or an officer, agent or employee of the registered or
licensed party does any of the following:

(a) Violates this chapter or any rule adopted pursuant to this
chapter.

(b) Has been, is or may continue to be in substantial violation of
the requirements for licensing or registration and, as a result, the health
or safety of the general public is in immediate danger.

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House Amendments to S.B. 1057

2. Subject to title 41, chapter 6, article 10, and unless another
penalty is provided elsewhere in this chapter, assess a civil penalty
against a person that violates this chapter or any rule adopted pursuant to
this chapter in an amount not to exceed $2,000 for each violation. Each
day a violation occurs constitutes a separate violation. In determining
the amount of a civil penalty assessed against a person, the department
shall. consider all of the factors set forth in section 36-2816,
subsection H. All civil penalties collected by the department pursuant to
this paragraph shall be deposited in the smart and safe Arizona fund
established by section 36-2856.

3. At any time during regular hours of operation, visit and inspect
a marijuana establishment, marijuana testing facility or dual licensee to
determine if it complies with this chapter and rules adopted pursuant to
this chapter. The department shall make at least one unannounced visit
annually to each facility licensed pursuant to this chapter.

4. Adopt any other rules that are not expressly stated in this
section and that are necessary to ensure the safe and responsible
cultivation, sale, processing, manufacture, testing and transport of
marijuana and marijuana products.

C. Until the department adopts rules allowing and _ regulating
delivery by marijuana establishments pursuant to subsection D of this
section, delivery is unlawful under this chapter.

D. On or after January 1, 2023, the department may, and not later
than January 1, 2025 the department shall, adopt rules to allow and
regulate delivery by marijuana establishments. The rules shall:

1. Require that delivery and the marijuana and marijuana products to
be delivered originate from a designated retail location of a marijuana
establishment and only after an order is made with the marijuana
establishment by a consumer. The rules may not limit the distance between
the delivery location and the originating designated retail location of the

marijuana establishment.
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House Amendments to S.B. 1057

2. Prohibit delivery to any property owned or leased by the United
States, this state, a political subdivision of this state or the Arizona
board of regents.

3. Limit the amount of marijuana and marijuana products based on
retail price that may be in a delivery vehicle during a single trip from
the designated retail location of a marijuana establishment.

4. Prohibit extra or unallocated marijuana or marijuana products in
delivery vehicles.

5. Require that deliveries be made only by marijuana facility agents
in unmarked vehicles that are equipped with a global positioning system or
similar location tracking system and video surveillance and recording
equipment, and that contain a locked compartment in which marijuana and
marijuana products must be stored. The rules may not limit the number of
vehicles that a marijuana establishment may use for delivery.

6. Require delivery logs necessary to ensure compliance with this
subsection and rules adopted pursuant to this subsection.

7. Require inspections to ensure compliance with this subsection and
rules adopted pursuant to this subsection.

8. Include any other provisions necessary to ensure safe and
restricted delivery.

9. Require dual licensees to comply with the rules adopted pursuant
to this subsection.

E. Except as provided in subsection D of this section, the
department may not allow delivery of marijuana or marijuana products under
this chapter by any individual or entity. In addition to any other penalty
imposed by law, an individual or entity that delivers marijuana or
marijuana products in a manner that is not authorized by this chapter shall
pay a civil penalty of $20,000 per violation to the smart and safe Arizona
fund established by section 36-2856. This subsection may be enforced by
the attorney general.

F. All rules adopted by the department pursuant to this section
shall be consistent with the purpose of this chapter.

G. The department may not adopt any rule that:

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House Amendments to S.B. 1057

1. Prohibits the operation of marijuana establishments, either
expressly or through requirements that make the operation of a marijuana
establishment unduly burdensome.

2. Prohibits or interferes with the ability of a dual licensee to
Operate a marijuana establishment and a nonprofit medical marijuana
dispensary at shared locations.

H. Notwithstanding section 41-192, the department may employ legal
counsel and make an expenditure or incur an indebtedness for legal services
for the purposes of:

1. Defending this chapter or rules adopted pursuant to this chapter.

2. Defending chapter 28.1 of this title or rules adopted pursuant to
chapter 28.1 of this title.

I. The department shall deposit all license fees, application fees
and renewal fees paid to the department pursuant to this chapter in the
smart and safe Arizona fund established by section 36-2856.

J. On request, the department of health services shall share with
the department of revenue information regarding a marijuana establishment,
marijuana testing facility or dual licensee, including its name, physical
address, cultivation site and transaction privilege tax license number.

K. Notwithstanding any other law, the department may:

1. License an independent third-party laboratory to also operate as
a marijuana testing facility.

2. Operate a marijuana testing facility.

L. The department shall maintain and publish a current list of all
marijuana establishments and marijuana testing facilities by name and
license number.

M. Notwithstanding any other law, the issuance of an occupational,
professional or other regulatory license or certification to a person by a
jurisdiction or regulatory authority outside this state does not entitle
that person to be issued a marijuana establishment license, a marijuana
testing facility license, or any other’ license, registration or

certification under this chapter.

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House Amendments to S.B. 1057

N. Until the department adopts rules as required by subsection A,
paragraph 10 of this section:

1. A marijuana testing facility is prohibited from having any direct
or indirect familial relationship with or financial ownership interest in a
marijuana establishment or related marijuana business entity or management .
company.

2. <A marijuana establishment is prohibited from having any direct or
indirect familial relationship with or financial ownership interest in a
marijuana testing facility or related marijuana business entity or
management company.

Sec. 3. Subject to the requirements of article IV, part 1,
section 1, Constitution of Arizona, title 36, chapter 28.2, Arizona Revised
Statutes, is amended by adding section 36-2857.01, to read:

36-2857.01. Rural opportunity initiative; applicant

requirements; out; definiti

A. ON OR BEFORE JULY 1, 2026, THE DEPARTMENT SHALL ADOPT RULES
ESTABLISHING A RURAL OPPORTUNITY INITIATIVE IN ACCORDANCE WITH THIS
SECTION.

B. ON OR BEFORE AUGUST 1, 2026, THE DEPARTMENT SHALL POST ON THE
DEPARTMENT'S PUBLIC WEBSITE A FORM THAT ALLOWS UNSERVED RURAL COMMUNITIES
TO COMMUNICATE TO THE DEPARTMENT THE UNSERVED RURAL COMMUNITY'S INTENTION
TO OPT OUT OF PARTICIPATION IN THE RURAL OPPORTUNITY INITIATIVE. FOR THE
PURPOSES OF THIS SECTION, A COUNTY MAY OPT OUT OF PARTICIPATION ON BEHALF
OF CENSUS-DESIGNATED AREAS IN THE COUNTY, NOT INCLUDING CITIES OR
TOWNS. AN UNSERVED RURAL COMMUNITY MAY WITHDRAW ITS OPT-OUT FORM AT ANY
TIME.

C. ON OR BEFORE OCTOBER 1, 2026, THE DEPARTMENT SHALL POST AND
MAINTAIN ON THE DEPARTMENT'S PUBLIC WEBSITE A CURRENT LIST OF UNSERVED
RURAL COMMUNITIES THAT HAVE OPTED OUT OF THE RURAL OPPORTUNITY INITIATIVE.

D. BEGINNING OCTOBER 1, 2026, THE DEPARTMENT SHALL ACCEPT
APPLICATIONS FROM QUALIFIED APPLICANTS. WITHIN SIXTY DAYS AFTER RECEIVING
THE FIRST APPLICATION FROM A QUALIFIED APPLICANT THAT SEEKS TO SERVE A
SPECIFIC UNSERVED RURAL COMMUNITY, THE DEPARTMENT SHALL ISSUE A MARIJUANA

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House Amendments to S.B. 1057

ESTABLISHMENT LICENSE PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH
1, SUBDIVISION (g) AND A NONPROFIT MEDICAL MARIJUANA DISPENSARY
REGISTRATION CERTIFICATE PURSUANT TO SECTION 36-2803.01, SUBSECTION E TO
THE QUALIFIED APPLICANT THAT FIRST APPLIES TO SERVE THE UNSERVED RURAL
COMMUNITY.

E. TO QUALIFY FOR A LICENSE PURSUANT TO THE RURAL OPPORTUNITY
INITIATIVE, AN APPLICANT SHALL COMPLETE AND SUBMIT A DEPARTMENT-APPROVED
FORM OR FORMS SHOWING THAT THE APPLICANT HAS A LANDOWNER'S CONSENT TO USE
PROPERTY IN THE ELIGIBLE UNSERVED RURAL COMMUNITY FOR A MARIJUANA RETAIL
SITE AND A DEPARTMENT-APPROVED FORM OR FORMS SHOWING THE PROPERTY IS IN
COMPLIANCE WITH LOCAL ZONING RESTRICTIONS APPLICABLE TO WHERE A RETAIL SITE
OPERATING PURSUANT TO BOTH A MARIJUANA ESTABLISHMENT LICENSE AND A
NONPROFIT MEDICAL MARIJUANA DISPENSARY REGISTRATION CERTIFICATE AND THIS
SECTION MAY BE LOCATED.

F. A LANDOWNER MAY NOT EXECUTE OR AGREE TO EXECUTE MULTIPLE
LANDOWNER CONSENT FORMS CONCERNING THE SAME PROPERTY ADDRESS FOR THE RURAL
OPPORTUNITY INITIATIVE. THE LANDOWNER CONSENT FORM EXECUTED FIRST IN TIME
IS THE ONLY VALID LANDOWNER CONSENT FORM.

G. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR CHAPTER
28.1 OF THIS TITLE, EACH ENTITY THAT IS ISSUED A MARIJUANA ESTABLISHMENT
LICENSE PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH 1, SUBDIVISION
(g) AND A NONPROFIT MEDICAL MARIJUANA DISPENSARY REGISTRATION CERTIFICATE
PURSUANT TO SECTION 36-2803.01, SUBSECTION E:

1. SHALL BE LICENSED BY THE DEPARTMENT TO OPERATE ONLY ONE RETAIL
LOCATION AND ONE OFF-SITE LOCATION AT WHICH THE ENTITY MAY CULTIVATE
MARIJUANA AND MANUFACTURE MARIJUANA PRODUCTS.

2. MAY OPERATE AN OFF-SITE LOCATION ONLY AT A’ PROPERTY WHERE
CULTIVATION OPERATIONS WERE CONDUCTED PURSUANT TO THE DEPARTMENT'S APPROVAL
FOR AT LEAST ONE DAY DURING THE EIGHTEEN MONTHS IMMEDIATELY PRECEDING THE
ENTITY'S DATE OF APPLICATION TO OPERATE AT THE OFF-SITE CULTIVATION
LOCATION.

3. IS NOT REQUIRED TO OPERATE THE ENTITY'S RETAIL SITE FOR MORE THAN
TWENTY-FOUR HOURS EACH WEEK.

nfd=

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House Amendments to S.B. 1057

4. SHALL OPEN THE ENTITY'S RETAIL SITE WITHIN EIGHTEEN MONTHS AFTER
BEING ISSUED A MARIJUANA ESTABLISHMENT LICENSE PURSUANT TO SECTION 36-2854,
SUBSECTION A, PARAGRAPH 1, SUBDIVISION (g) OR THE MARIJUANA ESTABLISHMENT
LICENSE BECOMES INVALID.

H. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR CHAPTER
28.1 OF THIS TITLE, ANY ENTITY THAT IS ISSUED A MARIJUANA ESTABLISHMENT
LICENSE PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH 1, SUBDIVISION
(g) AND A NONPROFIT MEDICAL MARIJUANA DISPENSARY REGISTRATION CERTIFICATE
PURSUANT TO SECTION 36-2803.01, SUBSECTION E MAY MOVE ITS RETAIL SITE ONLY
‘TO ANOTHER UNSERVED RURAL COMMUNITY THAT HAS NOT OPTED OUT OF THE RURAL
OPPORTUNITY INITIATIVE PURSUANT TO THIS SECTION.

I. FOR THE PURPOSES OF THIS SECTION, "UNSERVED RURAL COMMUNITY":

1. MEANS A CITY, TOWN OR CENSUS-DESIGNATED AREA THAT HAS A
POPULATION OF LESS THAN FIFTY THOUSAND PERSONS AND CONTAINS ONE OR MORE
PARCELS OF PROPERTY THAT ARE AT LEAST TWENTY-FIVE MILES FROM A MARIJUANA
RETAIL SITE, AS MEASURED FROM THE CLOSEST POINTS OF BOTH PROPERTIES.

2. DOES NOT INCLUDE AN UNINCORPORATED TERRITORY THAT IS SURROUNDED
ON ALL SIDES BY AN INDIAN RESERVATION.

Sec. 4. Requirements for enactment: three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona,
sections 36-2803.01 and 36-2854, Arizona Revised Statutes, as amended by
this act, and section 36-2857.01, Arizona Revised Statutes, as added by
this act, are effective only on the affirmative vote of at least
three-fourths of the members of each house of the legislature."

Amend title to conform

JEFF WENINGER

1057WENINGER SE.docx
03/17/2025

3:47 PM

C: MH

-13-

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. SB 1057

DATE March 24, 2025 motion: DPA S/E

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas
Wilmeth

Way, Vice-Chairman

Weninger, Chairman

PR TR ol IS

2 |

APPROVED: COMMITTEE SECRETARY

[fle

EFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT S|
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

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

SB 1145: NOW: special districts; construction; payments
Sponsor: Senator Carroll, LD 28
Committee on Commerce

Overview
Prescribes requirements and restrictions for revitalization district contracts.

History
The governing body of one or more municipalities may adopt a resolution declaring its

intention to form a tax levying revitalization district to include property within the corporate
boundaries of the district, if the public convenience and necessity require and on presentation
of a petition signed by the owners of at least 51% of the net assessed property value proposed
to be included in the district and a petition signed by at least 51% of the property owners in
the area proposed to be included in the district.

To further the implementation of the general plan, a revitalization district may enter into
contracts and spend monies for any infrastructure purposes and enter into agreements with
landowners and the municipality for the collection of fees and charges from landowners for
infrastructure purposes, the advance of monies by landowners for infrastructure purposes or
the granting of real property by the landowner for infrastructure purposes. An agreement
between a landowner and a revitalization district may include agreements to repay all or
part of such advances, fees and charges from the proceeds of bonds if issued or from advances,
fees and charges collected from other landowners or users or those having a right to use any
infrastructure. Public infrastructure, other than movable property, may be located only in or
on lands owned by the state, the revitalization district or a municipality or county or
dedicated or otherwise designated as public roadways, highways, streets, thoroughfares,
easements or rights-of-way, whether in or out of the district or municipality.

A revitalization district has perpetual succession and, if the district does not have bonds or
other outstanding obligations, must be dissolved 10 years after the date of formation unless
the governing bodies extend the district by resolution for another 10 years. The governing
body by resolution may order the participation in the costs of any public infrastructure

purpose, including the payment of bond debt service (Title 48, Chapter 39, Article 1, A.R.S.).

Provisions
1. Requires all construction contracts entered into by the revitalization district to comply
with statute governing public works contracts. (Sec. 1)

2. Prohibits a municipality from operating or using, or any other person or entity to use,
revitalization district infrastructure for any purpose, unless the municipality that uses
or operates the infrastructure pays the balance due and owing to a contractor for the work
performed. (Sec. 1, 3)

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

SB 1145
Initials Page 1 Commerce

ATTACHMENT 32
3. Requires, for certain agreements entered into by the revitalization district and
landowners, the inclusion of a provision that prohibits bond proceeds or reimbursements
from being applied to any repayments if any contractor has not been paid in full for the
work performed, as certified by the contractor and the district. (Sec. 1)

4. Prohibits the dissolution of a revitalization district that owes monies to a licensed
contractor for the installation of any type of infrastructure for the district. (Sec. 2)

5. Adds, to the conditions required before dissolving a revitalization district, a requirement
that all monies due to contractors that performed work for the district have been paid in
full. (Sec. 4)

6. Applies the contractor payment requirements and infrastructure use prohibitions to
revitalization district infrastructure construction work commenced on or after the
effective date. (Sec. 5)

SB 1145
Initials Page 2 Commerce
Fifty-seventh Legislature Commerce
First Regular Session S.B. 1145

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1145
(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-STREKEGUT-F-BRACKEFS ] indicates new text removed from statute
or previously enacted session law.
(Green—strirevutrtracrets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<freen—strikecut—iircarets>> indicates a section removed from the bill.

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

Section 1. Section 48-6808, Arizona Revised Statutes, is amended to
read:

48-6808. Powers of a revitalization district

A. In addition to the powers otherwise granted to a district
pursuant to this article, a district, may to further the implementation of
the general plan, MAY:

1. Enter into contracts and spend monies for any infrastructure
9 purpose with respect to the district. [AEE-CONSTRUETTON-CONTRACTS—ENTEREDB
10 AYFE-BY-FHE-BTSTREECTSHACEL-EOMP EY HIT AT“-SEET HET 34-224T- J]
11 2. Enter into intergovernmental agreements as prescribed in title
12 11, chapter 7, article 3 for the financing, planning, design, inspection,
13 ownership, control, maintenance, operation or repair of infrastructure or
14 the provision of enhanced municipal services by the municipality in the
15 district, including an intergovernmental agreement with an Indian tribe or
16 community.
17 3. Sell, lease or otherwise dispose of district property if the
18 sale, lease or conveyance is not a violation of the terms of any contract
19 or bond resolution of the district.

ONO WDM FE

20 4. Reimburse a municipality for providing enhanced municipal
21 services in the district.

22 5. Operate, maintain and repair infrastructure.

23 6. Establish, charge and collect user fees, rates or charges for
24 the use of any infrastructure or service.

25 7. Employ staff, counsel and consultants.

26 8. Reimburse a municipality for staff and consultant services and

27 support facilities supplied by the municipality.

Adoptec # yf \ erbals

Failes Withdraw

Analysts Initials

ATTACHMENT 33
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HOUSE AMENDMENTS TO S.B. 1145

9. Accept gifts or grants and incur and repay loans for any
infrastructure purpose.

10. Enter into agreements with landowners and the municipality for
the collection of fees and charges from landowners for infrastructure
purposes, the advance of monies by landowners for infrastructure purposes
or the granting of real property by the landowner for infrastructure
purposes.

11. After approval at an election held pursuant to section 48-6818,
levy and assess the costs of any infrastructure purpose on any land
benefited in the district.

12. Pay the financial, legal and administrative costs of the
district.

13. Enter into contracts, agreements and trust indentures to obtain
credit enhancement or liquidity support for its bonds and process the
issuance, registration, transfer and payment of its bonds and _ the
disbursement and investment of proceeds of the bonds.

14. With the consent of the governing body of the municipality that
formed the district, enter into agreements with persons outside of the
district to provide services to persons and property outside of the
district.

15. With the consent of the applicable governmental entity, use
public easements and rights-of-way in or across public property, roadways,
highways, streets or other thoroughfares and other public easements and
rights-of-way, whether in or out of the geographical limits of the
district or the municipality.

B. In connection with any power authorized by statute, the district
may:

1. Contract.

2. Enter into intergovernmental agreements pursuant to title 11,
chapter 7, article 3.

3. Adopt and change a seal.

4. Sue and be sued.

5, Enter into development agreements, as defined in_ section
9-500.05.

C. The district shall not be used to finance or facilitate the
acquisition, operation, maintenance, construction or operation of a sports
stadium or other sports facility that is designed specifically for or used
specifically by a professional sports team, including a clubhouse, a
practice facility or any other related facility or on-site infrastructure
or related parking facilities for those purposes. This subsection does
not apply to the financing, acquisition, operation, maintenance or
construction of a multipurpose event center.

D. Public infrastructure other than personalty may be located only
in or on lands owned by tte THIS state, a county, a municipality or the
district or dedicated or otherwise designated as public roadways,
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HOUSE AMENDMENTS TO S.B. 1145

highways, streets, thoroughfares, easements or rights-of-way, whether in
or out of the district or the municipality. Personalty may be used only
for purposes authorized by the district board. [t—HtE—CONTRACTOR

BACANEE DUE ANB Ott Ft FO FE CONF RACTFOR-FOR THE -AHORE-PER FORMED? ]

E. An agreement pursuant to subsection A, paragraph 10 of this
section may include agreements to repay all or part of such advances, fees
and charges from the proceeds of bonds if issued or from advances, fees
and charges collected from other landowners or users or those having a
right to use any infrastructure, EXCEPT THAT ANY AGREEMENT PRESCRIBED BY
THIS SUBSECTION SHALL INCLUDE A PROVISION THAT BOND’ PROCEEDS OR
REIMBURSEMENTS SHALL NOT BE APPLIED TO ANY REPAYMENTS IF ANY CONTRACTOR
CONSTRUCTING INFRASTRUCTURE FOR THE DISTRICT HAS NOT BEEN PAID IN FULL FOR
THE WORK PERFORMED, AS CERTIFIED BY THE CONTRACTOR AND THE DISTRICT
ENGINEER. NOTWITHSTANDING ANY PROVISION IN THIS SUBSECTION, a person does
not have authority to compel the issuance or sale of the bonds of the
district or the exercise of any taxing power of the district to make
repayment under any agreement.

CE. NOTWITHSTANDING THE PROVISIONS OF SECTION 32-1187, ANY
CONSTRUCTION CONTRACT ENTERED INTO BY A DISTRICT PURSUANT TO THIS TITLE
SHALL BE SUBJECT TO THE PROVISIONS OF TITLE 32, CHAPTER 10, ARTICLE 5
EXCEPT THE PROVISIONS OF SECTION 32-1187. ]

Sec. 2. Section 48-6809, Arizona Revised Statutes, is amended to

read:

48-6809. Perpetual succession

The district has perpetual succession, except that the district may
be dissolved as provided in section 48-6819 and, if the district does not
have any bonds or other obligations outstanding, shall be dissolved ten
years after the date of formation unless the governing bodies of the
participating municipalities by resolution extend the district by an
additional period of ten years. IF THE DISTRICT OWES MONIES TO A LICENSED
CONTRACTOR FOR THE INSTALLATION OF ANY TYPE OF INFRASTRUCTURE FOR THE
DISTRICT, THE DISTRICT MAY NOT BE DISSOLVED.

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HOUSE AMENDMENTS TO S.B. 1145

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Sec. 3. Section 48-6819, Arizona Revised Statutes, is amended to
read:

48-6819. Dissolution of district

A. The district may be dissolved by the district board by a
resolution of the district board if the following conditions exist:

1. All of the real and personal property owned by the district has
been or will be conveyed to a municipality.

2. Either the district has no bonds or obligations or the
municipality has assumed all of the obligations of the district.

3. ALL MONIES DUE TO CONTRACTORS THAT PERFORMED WORK FOR THE
DISTRICT HAVE BEEN PAID IN FULL.

B. The district board shall comply with the conditions prescribed
by subsection A OF THIS SECTION and shall dissolve the district if both of
the following occur:

1. The governing body has consented to comply with the conditions
prescribed by subsection A OF THIS SECTION and either:

(a) Dissolution has been approved by a vote of the property owners
of the district voting in an election called for that purpose.

(b) The governing body determines that the district has been
inactive for at least five consecutive years and has no future purpose.

2. The district board adopts a resolution dissolving the district
and records the resolution in the office of the county recorder.

C. The district board may call such an election and shall call such
an election if requested to do so in a petition signed by ten per—cert
PERCENT of the property owners of the district.

D. The election shall be called and held in the same manner as an
assessment levy election, except that the ballot shall contain the words
"dissolution, yes" and "dissolution, no".

E. All property in the district, except federal, state, county and
municipal property, remains subject to the lien for the payment of ad
valorem taxes levied, and any property subject to a special assessment
lien remains subject to the lien notwithstanding dissolution of the
district.: The district may not be dissolved if any revenue or assessment
bonds of the district remain outstanding unless an amount of money
sufficient, together with investment income thereon, to make all payments
due on the revenue bonds either at maturity or prior redemption has been
deposited with a trustee or escrow agent and pledged to the payment and
redemption of the bonds. The district may continue to operate after
dissolution only as needed to collect money and make payments on any
outstanding bonds.

HOUSE AMENDMENTS TO S.B. 1145

1 F. If a proposal for dissolution is approved and the district is an
2 Arizona state retirement system employer before the dissolution, the
3 governing body of the district shall notify the director of the Arizona
4 state retirement system of the dissolution.

5 Sec. 4. Applicability

6 This act applies only to revitalization district infrastructure
7 construction work that is commenced on or after the effective date of this
Si a6Gi

9 Enroll and engross to conform

10 Amend title to conform

JUSTIN WILMETH

1145WILMETH. docx
03/18/2025

10:38 AM

H: PB/1s
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. $B 1145

DATE March 25, 2025 motion: DPA
PASS AYE NAY PRESENT | ABSENT

Aguilar di

Blackman rl

Cavero v4

Connolly \ il

Diaz gi

Hendrix Pa

Villegas rs

Wilmeth Y

Weninger, Chairman A

t
APPROVED: Ltt SECRETARY
Oe le

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT 34

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