"Arizona House of Representatives Committee on Commerce Meeting Minutes and Agenda for March 15, 2022"

Summary

The report of a regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fifth Legislature, Second Regular Session, held Tuesday, March 15, 2022, with its agenda and attachments. The minutes record a presentation on counterfeiting and organized retail crime by representatives of Phillip Morris International, Johnson & Johnson, HBI International and the AZ Retailers Association. They record committee action on SB1494, SB1166, SB1580, SB1459, SB1248 and SB1403; the agenda gives SB1494 the short title COVID-19 vaccine; unemployment insurance. A Request to Speak report lists members of the public who registered support, opposition or neutral positions on SB1166, public employers; union contracts, with their comments. The packet closes with a fact sheet on SB 1403 covering workers' compensation claim notices to the ICA and a roll call vote sheet for that bill.

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ARIZONA HOUSE OF REPRESENTATIVES
Fifly-fifth Legislature - Second Regular Session

Convened 2:39 P.M.
Recessed
Reconyened
Adjourned 4:00 P.M.

Members Present
Mr. Carter

Mr, Chavez

Mr. Cook

Mr. Espinoza

Mr, Kaiser

Mrs. Liguori

Mr. Meza

Mr. Wilmeth

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 15, 2022

House Hearing Room 3 -- 2:00 P.M.

Members Absent

Mr. Chaplik, Vice-Chairman

Mr, Weninger, Chairman

Agenda

Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Presentations
Name
Kristen Reif, Director
External Affairs
Jeff Buel, Director State
Government Affairs
Josh Kesselman, CEO
Michelle Ahlmer,
Executive Director

Committee Action

Bill Action
SB1494. DP
SB1166 DPA

Organization
Phillip Morris International

Johnson & Johnson

HBI International
AZ, Retailers Association

Vote
7-2-0-1
10-0-0-0

MINUTES RECEIVED
CHIEF CLERK'S OFFICE

B17 2&

Attachments (Handouts)

Attachments
6,7
8, 9, 10

COMMITTEE ON COMMERCE
March 15, 2022

SB1i580
SB1459
SB1248
SB1403

DP
DPA
DP
DP

9-0-0-1
8-1-0-1
8-0-0-2
8-0-0-2

11,12
13, 14, 15
16, 17
18, 19

hogy , Dea dL. 4»)

Jacqueline{Denlinger, Committee écretary

March 17, 2022

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

convened » U 84 pm
adjoumed : 400 pin

REVISED - 3/14/22 REVISED - 3/14/22 REVISED - 3/14/22

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

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 15, 2022 ROOM HHR3 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/2clientID=636 I 162879&eventID=202203 1066

Members:
Mr. Carter Mr. Kaiser Mr. Wilmeth
Mr. Chavez Mrs. Liguori Mr. Chaplik, Vice-Chairman

Mr. Cook Mr. Meza Mr. Weninger, Chairman
Mr, Espinoza

e Presentation:
Counterfeiting and Organized Retail Crime

Kristen Reif, Director of External Affairs, Phillip Morris International
Jeff Buel, Director of State Government Affairs, Johnson & Johnson

i ; ~P & , ;

Hy Josh Kesselman, Chief Executive Officer, HBI International
Michelle Ahimer, Executive Director, AZ Retailers Association
Jerianne- Gerloff-Government Relations-Director, Pfizer

Bills Short Title Strike Everything Title

1166 Dp pP A public employers; union contracts
“% ——— (Leach: Livingston)
1D-0-0=9
COM, RULES

SB1I248 DP beer shipments; coercion; prohibition
= (Gowan)
3-0 O-2,

NN COM, RULES

*SB1278 swage rates; technical correction(new labor
—_~..__ organizations; fiduciary guidelines; definitions)
(Mesnard)
GOM-held_0-0-0-6-6,- RULES

Page 1 of 2

Attachment |
Bills Short Title Strike Everything Title

SB1403 De? industrial commission; workers' compensation;
© claim(now: workers' compensation; industrial
X~O ~O -Z, commission; claim)
(Gowan)
COM, RULES

g (Borrelli: Chaplik)
“1-0-| COM, RULES

q 1459 D pA event wagering; fantasy sports; fees

*SB1494 he COVID-19 vaccine; unemployment insurance
5 ann (Mesnard)
4-0-1) COM held 0-0-0-0-0, RULES

SB1580 DP money transmission; money transmitter licensure

a9 0-1 (Livingston)
1-0" O- Loom, RULES

* On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

DF
03/09/2022
03/14/2022

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 (3/15/2022)

$B1166, public employers; union contracis

Testified in support:
Jon Riches, representing self

Support:

Dwight Kadar, representing self; Jenna Bentley, BARRY GOLDWATER INSTITUTE FOR PUBLIC POLICY RESEARCH;
Steve Hetsler, representing self; Dianna Gates, representing self; Bridget Nelke, representing self; Vicki Smith,
representing self; Vickie Parks, representing self; Catherine Tunget, representing self; Charmon Puhlmann,
representing self; Selina Bliss, representing self; Earl Carlow, representing self; JL Simpson, representing self; Dale
Brewer, representing self; Michael Marcus, representing self; Donna Hale, representing self; Kathryn Farkas,
representing self; andrea dickey, representing self; Jane Breakiron, representing self; Richard Freeze, representing
self; Judy Smith, representing self; Mary Jamsa, representing self; Laura Belcourt, representing self; Jerri

Dingledine, representing self; Stuart Scurti, representing self

Neutral:
Briona May, AFSCME INTERNATIONAL

Oppose:

Attachment ZL.
Anderson, representing self; William Yohey, representing self; Charlie Silver, representing self; Mariette Francis,
representing self; Sharon Lee, representing self; Susan Phelps, representing self; Kathleen Dubbs, representing self;
Kathleen O'Neill, representing self; Margrit McIntosh, representing self; Abby Brill, representing self; Roxanna
Kearns, representing self; Janet Senf, representing self; Gayle Meredith, representing self; Ralph Meredith,
representing self; Janet Johnson, representing self; Patricia Edelen, representing self; Susan McMillan,
representing self; Jo Ann Caruthers, representing self; Truly Bone, representing self; Nancy Scharff, representing
self; Julie Golding, representing self; Saher Afzal, representing self; Anne Leota Hart, representing self; Kathleen
Collins, representing self; Caroline Anderson, representing self; Howard Neiberg, representing self; Diane Lings,
representing self; Teresa Neiberg, representing self; Roy Verdery, representing self; Robin LaVoie, representing
self; Candice Fremouw, representing self; Nancy Santori, representing self; James Stein, representing self; Lisa
Koenig, representing self; Mary Grove, representing self; Becky Sayler, representing self; Susan Breen, representing
self; Christine Keitges, representing self; Jeri Dow, representing self; Barbara Hutchinson, representing self;
Margaret Bruns, representing self; Nancy Branham, representing self; Steve Gorman-Hackstadt, representing self;
Mary-Jeanne Fincher, representing self; SUSAN ARNOLD, representing self; John Babicz, representing self; Louise
Good, representing self; Angila Gallenstein, representing self; Michael Pyska, representing self; Heather Borman,
representing self; John Neville, representing self; Jessie Spalding, representing self; Dee Maitland, representing
self; Donna Rice , representing self; Margaret Cordalis, representing self; Elizabeth Brauer, representing self;
jocelyn Dustan, representing self; Elizabeth Schauer, representing self; Charlotte Lis, representing self; Brenda
Nelson, representing self; Sue Thorne, representing self; Virginia Dotson, representing self; Christine McLachlian-
Comer, representing self; Nelson Morgan, representing self; Laura Lipman, representing self; Ellen Bodow,
representing self; Linda Cooke, representing self; Robert Larson, representing self; Kathleen Woessner,
representing self; Nancy Hancock, representing self; Annarose Lilly, representing self; Caitlin Absher, representing
self; Nicole Fordey, representing self; Nataly Reed, representing self; Francine Saccio, representing self; Nancy
Roberts, representing self; Jacqueline deSa, representing self; Erica Hansen, representing self; Frederick James,
representing self; Nancy Atherton, representing self; Roger Blain, representing self; Claire Bickel, representing self;
Amanda Coltman, representing self; Katherine Stone, representing self; Barbara Hollway, representing self; Kim
Buckley, representing self; Elizabeth George, representing self; J Nicholas Prestera, representing self; Loretta
O'Connor, representing self; Douglas Cain, representing self; Jerrold Borchardt, representing self; Brandy Reese,
representing self; Eric Kadel, representing self; George Ehrlich, representing self; Kathleen Sauer, representing self;
Sharon Ehrlich, representing self; Donna Johnson, representing self; Jan Carlile, representing self; John Gleason,
representing self; Carol Campbell, representing self; Claudia Oreck-Teplitsky, representing self; Kenneth Bryan,
representing self; Kathleen Schanus-Gohl, representing self; Devon Sloan, representing self; Sandra Adler,
representing self; Marcia Tingley, representing self; Virginia Kovatch, representing self; Victor Garcia, representing
self; Cynthia Wagner, representing self; Ruth Porter-Tilman, representing self; Sheila Green, representing self; Amy
Galennie, representing self; Shelley Stephenson, representing self; Cynthia Paster, representing self; Julian
Donahue, representing self; Theresa Ryan, representing self; Karolyn Switzer, representing self; Janie Smieszek,
representing self; Diane Klock, representing self; Peggy Church, representing self; John Propster, representing self;
Sandy Coffey, representing self, DEBRA GORDON, representing self; Charles Turner, representing self; Barbara
Jones, representing self; Jill Anderson, representing self; Jane Atkins, representing self; Erin McCamish,
representing self; LINDA GANTVERG, representing self; Nadine Smith, representing self; JOHN FIENE, representing
self; David Myers, representing self; Jeannine Reno, representing self; Aaron Essif, representing self; William
Bowlus-Root, representing self; jeff green, representing self; Susan Ordway, representing self; Tina Kilcullen,
representing self; Sally Caruso, representing self; Carol Redenbaugh, representing self; Lisa Maczura, representing
self; Richard Della Porta, representing self; Karen Robbins, representing self; David Williams, representing self;
Nancy Lecrone Nonini, representing self; RITA DEPUYDT, representing self; Mary Lisa, representing self; Kay Davis,
representing self; Mitzi Cowell, representing self; Gary Townsend, representing self; Bailey Spears, representing
self; Jennifer Hanley, representing self; Joseph Alexander, representing self; Bruce Flocken, representing self;
Susan Collopy, representing self; Teresa Gerschutz, representing self, Marylynne Shroyer, representing self; Diane
McQueen, representing self; Birgit Loewenstein, representing self; Ann Sawyer, representing self; Robert Maier,
representing self; Jacqueline Bauer, representing self; Sarah Montgomery, representing self; Dan Schwartzstein,

representing self

All Comments:

Jon Riches, Self: On Behalf of the Goldwater Institute; Dianna Gates, Self: | urge you to support this bill. It's only
common sense.; Vickie Parks, Self: Promote right to work state; Charmon Puhlmann, Self: PC Captain and LD
Recording Secretary; Dale Brewer, Self: | have read and approve of this Bill.; Michael Marcus, Self: Common sense.
Public employers are often funded by tax dollars, for purposes of the mission of public employer. Using citizen
taxpayer dollars for non-mission activities isn't appropriate, & politicizes workplaces contrary to many taxpayers’
wishes.; andrea dickey, Self: Please vote FOR SB1166; Mary Jamsa, Self: | support this bill. Union activities should
not happen during work time.; Laura Belcourt, Self: Please support this bill to prohibit public sector union activities
while on the taxpayers' dime.,; Jerri Dingledine, Self: Thank you for representing the vote of the people; Stuart
Scurti, Self: Vote yes for this bill. Taxpayers should not be forced to pay for union lobbying or union activities.;
Janie Hydrick, Self: Of course! Cheap, unskilled labor is a great long-term investment.; Rivko Knox, Self: Let cities
deal with this issue. A statewide prohibition is just a way for legislators to show they are ‘anti union.'; Mary Ann
Graffagnino, Self: Union work and support for it is critical. Unions have always worked for the common man. Dark
money needs to stop opposing unions.; Beatriz Urrea, Self: This law is about silencing unions, which work to
defend workers' rights, when the interests of the wealthy are at stake. Vote this down!; Claudia Bloom, Self: Dark
money hates a living wage, don't they Leach?; Elizabeth Putnam-Hidalgo, Self: An absolute NO on this. Legislation
written by the Goldwater Institute should not be considered as reflecting the will of Arizona voters. Same with
legislation pushed forward by a public gerrymanderer.; Cynthia Couture, Self: This would invalidate our rights to
freedom of speech and lobbying.; Vanessa Goldberg, Self: Stop trying to silence voices you do not agree with -
that is NOT democracy!.; Bryna Koch, Seif: Vote no on this bill.; Penny Boone, Self: This is part of a rash of
legislation aimed at kneecapping powerful voices that may disagree with right-wing Az lawmakers, and appears to
be written by the dark-money libertarian Goldwater Institute. | oppose.; Lawrence Peters, Self: Where’s bill to
disclose American Legislative Exchange Council influence. Through ALEC, behind closed doors, corporations hand
state AZ lawmakers bills and/or changes to the law they desire. Where’s bill to ban S$ from Koch Bros funded “non-
profits”; Susan Morris, Self: Silencing voices is cowardly. Listen to ALL people with a stake in the outcome of your
decision-making.; Diane Leischow, Self: This one comes right out of the dark money Goldwater Manuel .; Rebecca
Haynes, Self: This is part of a rash of legislation aimed at kneecapping powerful voices that may disagree with
right-wing state lawmakers.; Carol Garnett, Self: Candidate work and lobbying for bills are not "union" activities
and none of these should be restricted.; Jessica Kitterman, Self: This is part of a rash of legislation aimed at
kneecapping powerful voices that may disagree with right-wing state lawmakers and the dark-money libertarian
Goldwater Institute.; Mary Fortney, Self: Zip 85331; Jeffrey Fortney, Self: Zip Code 85331; Cynthia Soffrin, Self: |
understand why the legislature wants to block state government employees from working on union activities
during the work day, but to define union activities to include lobbying for a specific bill is a "Catch-22" for state
paid legislators.; Kathleen Dubbs, Self: Cookie cutter legislation written by organizations who are against unions;
Roxanna Kearns, Self: Candidate work and lobbying for bills or ballot measures is a right for employees and must
not be limited or taken away.; Anne Leota Hart, Self: lam a registered voter in LD6. This is another piece of anti-
union legislation being pushed from out of our state. More libertarian propaganda.; Susan Breen, Self: Again
vaccinations are a matter of public health. If they're required for the job, then get vaxxed or get another job. But
using this as an excuse for getting unemployment? Give me a break!; Mary-Jeanne Fincher, Self: This is an
unnecessary expansion of restrictions already in place against using state resources for political purposes. It will
have a chilling effect on legitimate activities, which no doubt is the goal. Nol; Heather Borman, Self: Too political!
Start respecting teachers!; John Neville, Self: LD1 - an anti-free speech bill written by the right wing who want to
deprive workers of their rights. NO!; Dee Maitland, Self: Vince Leach at the behest of the Kochs.; Sue Thorne, Self:
Sen Lech: Why are you So afraid of opposing views to yours? Could it be that your right-wing extremist views don't
match the majority of Arizona's working class views?We need unions to give workers a voice;we need candidates
that voice opposing ideas; Virginia Dotson, Self: This is an attack on groups that represent ordinary people. If you
ban funding of these groups, you should ban all lobbying.; Ellen Bodow, Self: This bill would silence voices that
should be heard; Caitlin Absher, Self: This is part of a rash of legislation aimed at kneecapping powerful voices that
may disagree with state lawmakers.; Nancy Atherton, Self: Paid vacation time should allow an employee to do
whatever they want with that time, including engaging in personal political activities, otherwise infringing on ist
amendment rights. Personal time amendment should include paid vacation.; Loretta O'Connor, Self: This is
overreach!; John Gleason, Self: Vote no APAAC, police unions, border patrol unions, AZ Sheriff Assn, and more are
nor gonna be happy when you knee-cap them with this bill. Vote no! Preserve law enforcement and stop
pandering to the lobbyists. Kill this bill - VoteNO}; John Propster, Self: Undemocratic and unconstitutional! Stifles
the voice of working Arizonans. Vote NO to stop harming the people]; Jane Atkins, Self: Continued attempts to
defund public ed and give money to unqualified, unregulated private businesses who call themselves private
schools. Students will be the losers in this.; Erin McCamish, Self: Stop trying to silence voices you disagree with.;
JOHN FIENE, Self: Strictly partisan, and does not belong in the ARS.; Aaron Essif, Self: Aimed at kneecapping unions;
Lisa Maczura, Self: "Sit down and shut up” is never a good idea for government.; Bruce Flocken, Self: This is a one-
sided attack bill. If there is truly a concern about influence, it should cover corporate and dark money political
activity too.; Teresa Gerschutz, Seif: This bill is unconstitutional, Unions have a legal right to state dollars and are
necessary to maintain democratic balance of power. OPPOSE.; Birgit Loewenstein, Self: undermines collective
bargaining; Ann Sawyer, Self: The definition of what constitutes union activities is too limiting.; Robert Maier, Self:
Anyone concerned with union accountability ought to prefer that leadership be members of the rank and file and
be paid accordingly by the employer.; Sarah Montgomery, Self: Was this bill written by the Goldwater institute?
Unions protect worker. Stop trying to block unions.

SB1248, beer shipments; coercion; prohibition

Testified in support:
Steve Barclay, BEER & WINE DISTRIBUTORS OF ARIZONA

Support:

Earl Carlow, representing self; Michael Marcus, representing self

SB1278, wage rates; technical correction (NOW: labor organizations;
fiduciary guidelines: definitions)

Support:

Earl Carlow, representing self; Michael Marcus, representing self

Oppose:
Judith Simons, representing self; Dawn Schumann, TEAMSTERS LOCAL UNION 104
All Comments:
Dawn Schumann, TEAMSTERS LOCAL UNION 104: This bill tries to break the solidarity of a Union and weaken the

negotiation during health and welfare for our members. | challenge you to research benefits that Union rnembers
have. In a RTW to state, you are a member by CHOICE.

$B1403, industrial commission; workers’ compensation; claim (NOW:
workers’ compensation: industrial commission; claim)

Testified in support:
Barry M. Aarons, AZ ASSN OF LAWYERS FOR INJURED WORKERS

Support:
Michael Colletto, PROFESSIONAL FIRE FIGHTERS OF AZ; Brian Clymer, representing self; Emily Rice, AZ SELF-

INSURERS ASSOC; Earl Carlow, representing self
All Comments:

Brian Clymer, Self: This bill will help insure that injured workers’ claims are properly filed with the ICA and fixes a
mistake in last year's legislation regarding the effective date of a Petition to Reopen.

SB1459, event wagering; fantasy sports; fees

Testified in support:
Mike Williams, Arizona Coyotes Hockey Club

Support:

Earl! Carlow, representing self

S$B1494, COVID-19 vaccine; unemployment insurance

Support:
David Esch, representing self; Allen Skillicorn, representing self; Earl Carlow, representing self; Michael Marcus,
representing self; David Seligson, representing self; Lisa Gentry, representing self; Anna Rafals, representing self

Oppose:

kathleen mayer, representing self; Dave Long, representing self; Janie Hydrick, representing self; Rivko Knox,
representing self; Judith Simons, representing self; Janet Larkin, representing self; Steven Linder, representing self;
Rebecca Smith Gross, representing self; marilyn duerbeck, representing self; Henne Queisser, representing self;
Maria Salvucci, representing self; Kevin Brown, representing self; Eve Shapiro, representing self; Kenneth Bierman,
representing self; Mary Ann Graffagnino, representing self; Beatriz Urrea, representing self; DOUG ARNOLD,
representing self; Claudia Bloom, representing self; Dianne Post, representing self; Elizabeth Putnam-Hidalgo,
representing self; Cynthia Couture, representing self: Sherrilynn James, representing self; Donita Ramos,
representing self; Vanessa Goldberg, representing self; Ruthanna Battilana, representing self; Bryna Koch,
representing self; Mary Grove, representing self; Helen Kim, representing self; Darrell Boomgaarden, representing
self; SUSAN ARNOLD, representing self; Margrit Mcintosh, representing self; Elizabeth Schauer, representing self;
Elizabeth Goff, representing self; Charlie Silver, representing self; Ruth Lambert, representing self; Barbara
Hutchinson, representing self; Christine Whitley, representing self; Marylynne Shroyer, representing self; Becky
Sayler, representing self; Susan Morris, representing self; Robin LaVoie, representing self; Julie Golding,
representing self; Kathy Mitton, representing self; Brenda Nelson, representing self; Diane Lings, representing self;
Amy Etzkorn, representing self; Nelson Morgan, representing self; Barbara Larson, representing self; Andrew Flach,
representing self; Nancy Hancock, representing self; Annarose Lilly, representing self; Wendy Anderson,
representing self; Robert Fisher, representing self; Linda Edwards, representing self; Kathy Fraser, representing
self; Claire Bickel, representing self; Suzanne Berger, representing self; Kirstin Woodburne, representing self;
Penny Boone, representing self; Teresa Akrish, representing self; Lawrence Peters, representing self; Barbara
Hollway, representing self; Linda Guarino, representing self; Lindsey Duran, representing self; leadawn anderton,
representing self; Loretta O'Connor, representing self; Janice Counts, representing self; Margaret Lacey,
representing self; Diane Leischow, representing self; Gail Prestera, representing self; Margaret Owen, representing
self; CAROL R BLACKMAN, representing self; Rebecca Haynes, representing self; Irene Hunting, representing self;
Linda Ekstrum, representing self; Margaret Adams , representing self; Carol Garnett, representing self; Marilyn
Coyle, representing self; Stephen Coyle, representing self; Jeffrey Fortney, representing self; Mary Fortney,
representing self; Cynthia Soffrin, representing self; Ryan Anderson, representing self; Claudia Oreck-Teplitsky,
representing self; Mariette Francis, representing self; Susan Phelps, representing self; Kathleen Schanus-Gohl,
representing self; Kathleen Dubbs, representing self; Sandra Adler, representing self; Kathleen O'Neill,
representing self; Abby Brill, representing self; Cynthia Wagner, representing self; Ruth Porter-Tilman,
representing self; Amy Gaiennie, representing self; Janet Senf, representing self; Roxanna Kearns, representing
self; Gayle Meredith, representing self; Ralph Meredith, representing self; Janet Johnson, representing self; Patricia
Edelen, representing self; Diane Klock, representing self; Susan McMillan, representing self; Jo Ann Caruthers,
representing self; Truly Bone, representing self; Nancy Scharff, representing self; Saher Afzal, representing self;
Anne Leota Hart, representing self; Kathleen Collins, representing self; Caroline Anderson, representing self;
Howard Neiberg, representing self; Erin McCamish, representing self; Teresa Neiberg, representing self; Roy
Verdery, representing self; Kathy Pyner, representing self; Candice Fremouw, representing self; Nancy Santori,
representing self; James Stein, representing self; Lisa Koenig, representing self; Christine Keltges, representing
self; Murdock Holloway, representing self; Jeri Dow, representing self; Angela J. Miller, representing self; Margaret
Bruns, representing self; Nancy Branham, representing self; Karen Robbins, representing self; Steve Gorman-
Hackstadt, representing self; David Williams, representing self; Mary-Jeanne Fincher, representing self; John
Babicz, representing self; Mary Lisa, representing self; Louise Good, representing self; Angila Gallenstein,
representing self; Michael Pyska, representing self; Jessie Spalding, representing self; Dee Maitland, representing
self; Donna Rice , representing self; Jennifer Hanley, representing self; Margaret Cordalis, representing self;
Elizabeth Brauer, representing self; Bruce Flocken, representing self; Jocelyn Dustan, representing self; Charlotte
Lis, representing self; Diane McQueen, representing self; Sue Thorne, representing self; Virginia Dotson,
representing self; Jacqueline Bauer, representing self; Christine McLachlan-Comer, representing self; Laura Lipman,
representing self; Ellen Bodow, representing self; Robert Larson, representing self; Ann Strine, representing self;
Kathleen Woessner, representing self; Caitlin Absher, representing self; Nicole Fordey, representing self; Nataly
Reed, representing self; Nancy Roberts, representing self; Jacqueline deSa, representing self; Steve Singkofer,
representing self; Nancy Atherton, representing self; Frederick James, representing self; Roger Blain, representing
self; Amanda Coltman, representing self; Katherine Stone, representing self; Kim Buckley, representing self;
Elizabeth George, representing self; J Nicholas Prestera, representing self; Tess Calvert, representing self; Douglas
Cain, representing self; Jerrold Borchardt, representing self; Brandy Reese, representing self; Eric Kadel,
representing self; George Ehrlich, representing self; Kathleen Sauer, representing self; Sharon Ehrlich, representing
self; Donna Johnson, representing self; Jan Carlile, representing self; Carol Campbell, representing self; John
Gleason, representing self; Kenneth Bryan, representing self; Devon Sloan, representing self; Marcia Tingley,
representing self; Virginia Kovatch, representing self; Victor Garcia, representing self; Sheila Green, representing
self; Cynthia Paster, representing self; Shelley Stephenson, representing self; Julian Donahue, representing self;
Theresa Ryan, representing self; Karolyn Switzer, representing self; Janie Smieszek, representing self; Marilyn
Bernhardt, representing self; Peggy Church, representing self; John Propster, representing self; Sandy Coffey,
representing self; DEBRA GORDON, representing self; Charles Turner, representing self; Barbara Jones,
representing self; Jill Anderson, representing self; Jane Atkins, representing self; LINDA GANTVERG, representing
self; David Myers, representing self; JOHN FIENE, representing self; Jeannine Reno, representing self; Aaron Essif,
representing self; William Bowlus-Root, representing self; Angela Dzikoski, representing self; jeff green,
representing self; Tina Kilcullen, representing self; Sally Caruso, representing self; Richard Della Porta, representing
self; Lisa Maczura, representing self; Nancy Lecrone Nonini, representing self; RITA DEPUYDT, representing self;
Kay Davis, representing self; Mitzi Cowell, representing self; Gary Townsend, representing self; Joseph Alexander,
representing self; Francine Saccio, representing self; Susan Collopy, representing self; Robert Maier, representing
self; Ann Sawyer, representing self; Birgit Loewenstein, representing self; Sarah Montgomery, representing self;

Dan Schwartzstein, representing self

All Comments:
Janie Hydrick, Self: Let's reward antivaxxers who want to put those vaccinated at risk 31 times over to die from

Covid. Pro-plaguers are such a selfish group who care nothing for everyone else.; Mary Ann Graffagnino, Self: This
is not right. These people have made their choice not to be vaccinated and must live with it, ie. no unemployment
benefits.; Beatriz Urrea, Self: Requiring vaccinations is about the welfare of ALL of us, and those who are mandated
to get vaccinated should not be financially compensated for not adhering to the mandate that is enacted to
protect US.; Dianne Post, Self: Tax payers should not have to pay for the folly of conspiracy theorists anti-science
and anti-medicine behavior. you are responsible for your own behavior. I'm not paying.; Vanessa Goldberg, Self:
Stop messing with healthcare important for all of usl; Bryna Koch, Self: Vote no on this bill.; Susan Morris, Self: So,
in the name of “freedom,” someone can refuse to protect public safety, leave a job and get paid unemployment?
Their decision should have consequences.; Kathy Mitton, Self: Businesses deserve the right to determine what is
necessary for their employee and customer health. if it is that they be vaccinated, so be it. Stop encouraging
people by paying them not to work]; Brenda Nelson, Self: Actions and choices have consequences. OPPOSE; Nelson
Morgan, Self: | oppose rewarding behavior that is damaging to public health. If a restaurant worker refuses to
wash their hands, we would not object to their being fired and not receiving benefits. Vaccination Is a similar
public health measure.; Penny Boone, Self: Banning Az from refusing to pay unemployment if the person was fired
or quit due to their refusal to get vaccinated against COVID-19 is cruel & immoral. | oppose.; Lawrence Peters, Self:
28,000 Arizonans have died to date from COVID. Without vaccines & masks deaths in AZ would be vastly higher.
How does this square with party that is pro-life? VACCINES & MASKS SAVES LIVES! Harmful to public health.; Linda
Guarino, Self: Don't reward people who put their own prejudices above the safety of coworkers and public.;
leadawn anderton, Self: if you get fired for cause, refusing to get vaccinated, you should not be immediately
eligible for unemployment; Diane Leischow, Self: targeting a very small group and leaving yourself open to further
lawsuits; Gail Prestera, Self: If an employee does not follow the company rules, especially when it comes to public
health, he should quit or be fired. Rewarding that person for their inconsideration of others is not right.; Rebecca
Haynes, Self: People should not be rewarded for putting public health at risk. Let them get a job that doesn't
endanger others.; Carol Garnett, Self: If someone quits because they disregard the health of those they serve, they
should NOT receive unemployment; Jeffrey Fortney, Self: Zip Code 85331; Mary Fortney, Self: Zip 85331; Cynthia
Soffrin, Self: An employee who chooses to leave a job because the employer requires them to be vaccinated does
not deserve to receive unemployment payments. Employers have the right to set the requirements for
employment and employees are free to go elsewhere.; Kathleen Dubbs, Self: Getting fired for something they
could easily remedy should not qualify a person for unemployment; Amy Gaiennie, Self: There has to be a balance

between individual rights and public health rights in pandemics. Supporting individual rights alone has lead to the
high rate of death from COVID in America. Disgraceful!; Anne Leota Hart, Self: | am a registered voter in LD6, Under
current AZ law, people must lose their job through no fault of their own or a compelling personal reason in order
to be eligible for unemployment, not if they refuse to follow what their employer mandates.; Erin McCamish, Self:
Vaccines save lives. If you don’t want to get vaccinated, what you are allowed to do should be limited to protect
others. Vaccine refusal is not a protected status.; Roy Verdery, Self: As a physician | know that Covid-19
vaccination protects people, their friends and coworkers from illness, disability and death. Anyone who refuses
employer mandated vaccination should quit or be fired and not get unemployment insurance.; Nancy Branham,
Self: Science is real. Vaccination is proven to save lives - MANY/MILLIONS of lives.; Mary-Jeanne Fincher, Self: This
bill would financially penalize PRIVATE businesses from making the decision that it's in their company's best
interest to require employee vaccination. Stay out of this decision-making by PRIVATE companies.; Louise Good,
Self: Anti-vaxers have to take responsibility for their actions. We shouldn't be subsidizing them.; Dee Maitland,
Self: No to using my tax dollars to fund people who don't care if they infect me and | die; Elizabeth Brauer, Self: We
are fortunate to have a safe, effective vaccine for COVID. We should be encouraging people to get vaccinated, not
rewarding them for refusing it.; Bruce Flocken, Self: Vaccination requirements have been a part of my 60+ years of
life, with only benefits, like staying healthy/not infecting others. People choosing to lose their job because of
vaccination requirements should not be rewarded with unemployment pay.; Sue Thorne, Self: Unemployment is
conditioned on losing a job through no personal fault or a compelling reason not to follow company rules, Refusal
to be vaccinated to protect the safety of the workforce w/o good reason doesn't qualify. Don't open this Pandora's
box!; Virginia Dotson, Self: No, don’t reward people for disregarding public health measures that keep all of us
safe.; Laura Libman, Self: everyone must follow the rules of employment. If they do not like the rules, they can
seek other employment. | thought Republicans were the party of small government and less interference in the
marketplace?; Caitlin Absher, Self: COVID19 vaccines protect individuals and the community. If an individual quits
their job to avoid vaccination that is their individual choice and they should not be supported by unemployment.;
Nicole Fordey, Self: if you choose not to get vaccinated and not to get an exemption and you are fired, the people
should not pay your unemployment - that is your fault and it is your personal responsibility to get new
employment that doesn't require vaccine; Steve Singkofer, Self: Personal choices have personal consequences.
Choosing not to get vaccinated during a world-wide pandemic has consequences for the unvaccinated person and
every other person with whom the unvaccinated person comes in contact. Oppose this bill.; Nancy Atherton, Self:
Government should not have to pay unemployment to an employee who refuses to comply with the conditions of
his/her employment. If businesses require Covid-19 vaccinations to protect all employees, that is their right.
Should not be punished for that; Tess Calvert, Self: Waste of my tax dollars with the economy coming back people
can find another job | don't need to pay for unemployment. Kathleen Sauer, Self: This bill is anti-business, tying
their hands if they want to have their staff vaccinated. It places the “freedom” of the science denying individual
over that of the businesses that provide these jobs.; John Gleason, Self: Vote NO on this socialism!!! Stop with
more rules and regulations on private businesses!! Business know best not government. Vote no on socialism
bordering on fascism. Kill this socialistic bill. Vote NO, NO, NOI; Marilyn Bernhardt, Self: Can't we assume good
faith on the part of business owners, rather than legislate such a huge financial burden on them. This pandemic
has caused them enough problems!; John Propster, Self: Overreach by legislative branch to regulate the executive
branch. Undemocratic and unconstitutional! Vote NO}; Jane Atkins, Self: How much will this hurt small businesses
who have already had such a hard time over the last two years. | thought Mesnard was pro-small business.; JOHN
FIENE, Self: Diminishes the rights of employers to keep their employees safe and working.; Aaron Essif, Self: People
need to be protected; Lisa Maczura, Self: | don't think AZ should be rewarding people for medical ignorance. Sick
people can't work, and that's bad for AZ business.; Nancy Lecrone Nonini, Self: Public safety requires people to
help protect others by getting vaccinated. Government should not go against public safety.; Kay Davis, Self: This
negatively impacts businesses who make decisions more often than not on the best interests of their employees
and business.; Mitzi Cowell, Self: This is further politicizing of a public health issue.; Gary Townsend, Self: This bill is
unnessary and unfair to all other potential! UI recipients.; Robert Maier, Self: Employer belief in vaccination has
more weight than the contrary beliefs of an employee because we rely on employers to help protect public
health.; Birgit Loewenstein, Self: Please oppose.; Sarah Montgomery, Self: Vaccines save lives.

SB1580, money transmission; money transmitter licensure

Testified in support:
Stephen Briggs, AZ DEPT OF INSURANCE AND FINANCIAL INSTITUTIONS

Support:
Jaime Molera, WESTERN UNION; Earl Carlow, representing self

All Comments:
Stephen Briggs, AZ DEPT OF INSURANCE AND FINANCIAL INSTITUTIONS: This is a agency bill that we are supportive

of,
PLEASE COMPLETE THIS FORM FOR THE PUBLIC RECORD

HOUSE OF REPRESENTATIVES

Please PRINT Clearly

Committeeon_ {§ CAAWIO ECC Bill Number 4 Ub

~~ la
Date 3 IS Al Support [1 Oppose I Neutral

Name M@\ASS ce Brci\c iit __ Need to Speak? M Yes CI No

Representing K7_ASSe cackhon al. Are you a registered lobbyist?

Complete Address ;

Email Address SNOQ\An Wan Giareru ll. GeanPhone Numberoccy - WES Cet |S
a

Comments:

hil Speaking limit determined by Chair ***

YS
ARIZONA STATE LEGISLATURE
Fifty-fifth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _ Joseph Chaplik
DATE 03/15/22 122 122 122 122
CONVENED 2. 39 pm m m m m
RECESSED
RECONVENED
ADJOURNED YOO pin
MEMBERS
Carter VA
Chavez va s
Cook WA
Espinoza wy,
Kaiser ~
Liguori ZZ
Meza va
Wilmeth ~
Chaplik, Vice-Chairman Yo
Weninger, Chairman {7

V Present --- Absent exc Excused

I
Attachment S

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Attachment Y
THE ARIZONA RETAILERS ASSOCIATION

One of the most important problems facing the retail industry
today is organized retail crime and theft. The Arizona Legislature
has been supportive in combating these crimes and the statute of
organized retail theft is considered among the best in the Nation.

The members of ARA are grateful for the support of the Arizona
State Legislature and for the opportunity to share information
about organized retail crime to the Arizona House of
Representatives Commerce Committee.

Formed in 1963, the Arizona Retailers Association (ARA)
exists to protect the business interests of retailers throughout the
state. Retailers representing all categories and sizes recognized
the value of combining their resources and ideas, and formed
ARA to achieve goals that no single business could accomplish
individually. This guiding principle has remained central to ARA's
philosophy of serving retailers through collaboration and
partnership.

Michelle Ahlmer
Executive Director

michelle@azretailers.com
480-220-6319

Attachment 5

224 West 2nd Street * Mesa, AZ 85201 * Phone: 480-833-0009 * Fax: 480-833-0011 * info@azretailers.com * www.azretailers.com
BACKGROUND

The Retail Industry Leaders Association (RILA) is the US trade association
for retailers that have earned leadership status by virtue of their sales
volume, innovation, or aspiration. RILA works to advance the industry
through public-policy advocacy and by promoting operational excellence
and innovation. Through research and thought leadership, RILA works to
propel developments that foster both economic growth and
sustainability. The Buy Safe America Coalition (BSA) represents a diverse
group of responsible retailers, consumer groups, manufacturers,
intellectual property advocates and law enforcement officials who
support efforts at all levels of government to protect consumers and
communities from the sale of counterfeit and stolen goods.

One important issue facing US retailers is the growth in the availability
and sales of illicit products, both from counterfeit imports and from
products stolen from legitimate retailers. These products are increasingly
sold online through third-party marketplaces. RILA and BSA asked John
Dunham & Associates (JDA) to examine the data around these illicit sales
to determine how they impact the US economy, federal tax revenues,

and criminal activity.
According to the analysis:

e As much as $68.9 billion worth of products were stolen from retailers in 2019.
This represents about 1.5 percent of total retail sales.

° Academic research has suggested that most retail theft represent crimes of
opportunity. In other words, people steal when it is easy to do so. Other causes
include poor economic conditions, and dissatisfaction among workers. However,
professionals in the field identify the availability of anonymous on-line
marketplaces as ways to easily fence goods, and prosecutorial changes as being
major factors contributing to the growth in ORC.

° Nearly 67 percent of asset protection managers at leading retailers surveyed
report a moderate to considerable increase in organized retail crime, while 80
percent believe it will only get worse in the future.

e The economic impact of retail crime is profound. Retailers face increased costs
for lost product, security, and labor, which lead to higher prices for consumers and
ultimately, lower sales. Lower sales translate to fewer jobs throughout the
economy. The result is $125.7 billion in lost economic activity and 658,375 fewer
jobs, paying almost $39.3 billion in wages and benefits to workers.

Retail theft is not a problem just in major metropolitan areas, it is pervasive
across America. In fact, one factor that is associated with lower levels of retail

theft is the density of retail locations.

° The impact of theft is felt through higher prices, and this impact is more acutely
felt by low- and middle-income families.

° It is estimated that retail theft costs federal and state governments nearly $15
billion in personal and business tax revenues, not including the lost sales taxes.
CONCLUSION

Based on an econometric analysis of retail crime, including organized
retail crime, as much as $68.9 billion worth of products were stolen from

retailers in 2019.

Since retail theft leads to higher prices for consumers it also impacts the
overall economy. Higher prices resulting from theft cost the US economy
nearly 685,375 full-time equivalent jobs, paying almost $39.3 billion in
wages and benefits to workers, as consumers react to higher costs by
shopping less. In addition, about $15.0 billion in personal and business
tax revenues alone, not to mention state and local sales taxes, would be

lost.

A large part of this impact is due to organized retail crime, which involves
professional shoplifting or other theft occurring in retail stores. These
criminals are increasingly turning to online marketplaces to quickly and
discretely fence mass quantities of stolen merchandise. Both the types
and amount of goods sold via these on-line marketplaces closely match
the level of shoplifting at brick-and-mortar establishments, and the kind

of products stolen.
Appendix 1

Estimate of Sales Stolen by State ($2021)

Percent of
Percent of Percentof Sates

State Value of Theft Total Totat Analyzed Sates —_—‘Fotal Stolen Poputation Theft/cap
Alabama $ 784,891,890 1.44% § 60,275,093,458 1.28% 1.30% 4,850,771 $ 161.81
Alaska $ 48,665,901 0.07% $ 10,277,685,588 0.22% 0.47% 738,565 $ 65.89
Arizona S$ 1,348,384,536 1.96% $ 98,850,076,906 2.10% 1.36% 6,809,946 $ 198.00
Arkansas $ 630,123,152 0.91% $ 27,970,199,873 0.60% 2.25% 2,977,944 $ 211.60
California $ 13,780,414,032 20.00% $ 593,198,288,613 12.62% 2.32% 38,982,847 $ 353.50
Colorado $ 642,164,867 0.93% $ 80,457,580,742 1.71% 0.80% 5,436,519 $ 118.12
Connecticut $ 711,139,046 1.03% $ 53,190,725,316 1.13% 1.34% 3,594,478 $ 1497.84
District of Columbia § $1,025,783 0.07% $ 5,084,023,639 0.11% 1.00% 672,391 $ 75.89
Delaware §$ 225,728,453 0.33% $ 15,912,205,191 0.34% 1.42% 943,732 $ 239.19
Florida § 4,512,360,700 6.55% $ 3416,321,405,114 6.73% 1.43% 20,278,447 $ 222.52
Georgia $ 1,651,813,867 2.40% $ 114,769,321,476 244% 1.44% 10,201,635 $ 161,92
Hawaii $ 415,078,635 0.60% $ — 21,767,507,777 0.46% 4.94% 1,421,658 $ 291,97
idaho $ 115,117,078 0.17% $ 23,948,126,275 0.51% 0.48% 1,657,375 § 69.46
Winois $ 2,080,190,312 3.02% $ 169,534,068,036 3.61% 1.23% 12,854,526 $ 161.83
Indiana $ 1,186,198,344 1.72% $ 98,668,380,342 2.10% 1.20% 6,614,418 $ 179,34
lowa $ 428,497,450 0.62% $ 46,998,165,342 1,00% 0.91% 3,118,102 $ 137.42
Kansas $ 641,857,888 0.93% $ 37,742,183,986 0.80% 1.70% 2,903,820 $ 221.04
Kentucky $ 727,444,260 1.06% $ 61,094,436,576 1.30% 1.19% 4,424,376 $ 164.42
Louisiana $ 904,462,205 1.31% $ 50,094,684,221 1.07% 1.81% 4,663,464 $ 193.95
Maine $ 315,299,580 0.46% $ 22,305,206,624 0.47% 1.41% 1,336,158 $ 237.04
Maryland $ 830,727,145 1.21% 5 80,785,029,474 1.72% 1.03% 5,996,079 S 138.55
Massachusetts $ 1,255,069,019 1.82% $ 110,289,292,284 2.35% 1.14% 6,789,248 $ 184.86
Michigan $ 1,866,574,413 2.71% $ 133,302,031,992 2.84% 1.40% 9,925,568 $ 188.06
Minnesota $ 1,137,020,869 1.65% $ $8,632,930,982 1.89% 1.28% 5,490,726 $ 207.08
Mississippi $ 484,514,826 0.70% $ 26,922,617,489 0.57% 1.80% 2,986,220 $ 162.25
Missouri $ 1,347,248,590 1.96% $ 95,477,739,525 2,03% 1.41% 6,075,300 S$ 221.76
Montana $ 70,217,088 0.10% $ 16,285,943,858 0.35% 0.43% 1,029,862 $ 68.18
Nebraska S$ 228,478,325 0.33% $ 29,884,455,805 0.64% 0.76% 4,893,921 $ 120.64
Nevada $ 466,283,686 0.68% $ 42,463,061,913 0.90% 1.10% 2,887,725 $ 161.47
New Hampshire $ 292,318,765 0.42% $ 28,315,472,699 0.60% 1.03% 1,331,848 $ 219.48
New Jersey $ 1,663,522,887 2.41% $ 147,026,511,960 3.13% 1.13% 8,960,164 $ 185.66
New Mexico $ 229,381,813 0.33% $ 16,365,482,571 0.35% 1.40% 2,084,828 $ 110.02
New York $ 4,073,257,635 5.91% $ 295,935,502,042 6.30% 4.38% 19,798,228 $ 205.74
North Carolina $ 1,928,063,528 2.80% §$ 129,579,294,263 2.76% 1.49% 10,052,564 $ 191.80
North Dakota $ 130,990,434 0.19% $ 18,812,202,806 8.40% 0.70% 745,475 $ 175.71
Ohio $ 2,112,726,640 3.07% $ 168,846,405,535 3.59% 1.25% 11,605,756 $ 181.98
Oklahoma $ 662,283,715 0.96% $ 38,024,140,403 0.81% 1,74% 3,896,251 $ 169,98
Oregon $ 551,374,725 0.80% $ §2,723,565,288 1.33% 0.88% 4,025,127 $ 136.98
Pennsylvania S$ 5,579,853,673 8.10% $ 231,671,800,750 4.93% 2.41% 12,790,505 $ 436.25
Rhode island $ 243,959,136 0.31% $ 12,870,382,948 0.27% 1.66% 1,056,138 $ 202.59
South Carolina $ 910,490,660 1.32% $ 62,850,144,281 1.34% 4.45% 4,893,444 §$ 186.06
South Dakota $ 59,139,459 0.09% S$ 11,402,179,326 0.24% 0.52% 855,444 $ 69,13
Tennessee $ 1,740,600,916 2.53% $ 95,344,237,888 2.03% 1.83% 6,597,381 $ 263.83
Texas $ 3,869,092,381 5.62% $ 405,338,862,866 8.62% 0.95% 27,419,612 S$ 141.11
Utah ’ $ 474,852,796 0.69% $ 47,266,613,179 1.01% 1.00% 2,993,942 $ 158.60
Vermont $ 91,666,089 0.13% $ 10,148,771,899 0.22% 8.90% 624,636 $ 146.75
Virginia $ 1,348,477,150 1.96% $ 112,041,659,117 2.38% 1,20% 8,365,952 $ 161,19
Washington $ 2,700,280,387 3.92% $ 162,842,615,609 3.46% 1.66% 7,169,967 $ 376.61
West Virginia $ 353,647,290 0.51% § 16,298,041,072 0.35% 2.17% 1,836,843 $ 192.53
Wisconsin $ 1,008,730,023 146% $ 87,169,609,209 1.85% 1.16% 5,763,217 $ 175.03
Wyoming $ 9,769,336 0.01% $ 6,807,118,933 0.14% 0.14% §83,200 $ 16.75
Yotal $ 68,891,475,374 $ 4,700,183,123,060 1.47% 321,004,336 $ 214.61

23
THE IMPACT OF ORGANIZED RETAIL CRIME AND

PRODUCT THEFT IN

ARIZONA

Economic Impact

Jobs Wages Output
Agriculture -181 ~$9,102,100 -$20,244,100
Business and Personal Services -5,702 ~$339,945,700 -$642,452,500
Mining -39 -$2,626,200 ~$28,792,400
Construction -107 ~$6,440,000 -$23,322,400
Finance Insurance and Real Estate ~1,951 ~$104,720,800 -$684,940,500
Manufacturing General -374 -$24,144,100 -$151,806,500
Retail -1,911 -$71,271,400 -$185,652,100
Transportation & Communication -940 ~$73,596,300 -$297,930,800
Travel and Entertainment -2,199 -$67,004,100 -$177,046,100
Wholesaler -401 -$37,919,800 -$134,099,300
Government -177 -$16,424,500 ~$52,798,200
Other ~315 -$13,275,800 -$21,524,800
Total -14,297 -$766,470,800 -$2,420,609,700
Taxes Generated: Business and Personal
Federal -$172,191,700
State and Local ~$127,388,100
Total Business and Personal Taxes -$299,579,800

26
Arizona Organized Retail Crime Media Coverage

NBC News: Arizona couple allegedly ran shoplifting ring, sold stolen beauty items online for

$2.7M

An Arizona couple ran a shoplifting ring and then sold stolen health and beauty products online in
a yearslong scheme that resulted in more than $2.7 million in sales. The couple paid others to
steal over-the-counter products from stores in the area and then sold the items on Amazon and

eBay.

KGUN: Man arrested in connection to stealing $1 00K worth of items from hardware stores
Tucson law enforcement officials arrested « man in connection to stealing more than $100,000
worth of items from hardware stores. Some of the stolen items were recovered during a traffic
stop.

KTVK & KPHO: Arizona Legislature looking to deal with spike in organized retail theft

Retailers are seeing a spike in organized retail crime rings. The Arizona Legislature is considering
a bill that would create a task force through the Attorney General's Office to address organized
retail theft, which is supported by Attorney General Mark Brnovich,

Daily Breeze: CHP makes arrest to break up ring it says stole $710,000 in merchandise
California Highway Patrol broke up a retail theft ring that stole roughly $710,000 in stolen
property from stores in Arizona, California, and Nevada. The group targeted Nike, Ulta Beauty,
Nordstrom Rack, T.J. Maxx, Victoria Secret and Columbia stores.

Newsweek: Two Women Use Walmart App to Steal $100,000 Worth of Items, Police Say

Two women were arrested in Arizona after stealing $100,000 worth of merchandise from several
Walmart stores by appearing to pay for the purchases using smartphones. Mesa police officers
launched an investigation of the alleged thefts in March after a "series of suspicious transactions"
involving an in-store scanning app was detected by Walmart’s loss prevention team.

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DP 6-3-0-0 | 3 Read 19-9-2-0-0

essa a ee
SB 1494: COVID-19 vaccine; unemployment insurance
Sponsor: Senator Mesnard, LD 17
Committee on Commerce

Overview
Adds a prohibition on disqualifying unemployment insurance (Ul) benefits relating to vaccine

requirements.

History
The Department of Economic Security (DES) administers the UI benefit program, which provides

benefit payments to eligible individuals who are unemployed through no fault of their own.

To qualify for benefits, an individual must meet certain eligibility requirements which include being
able to work, available for work, and meeting specified wage requirements. An individual is
disqualified from benefits if DES finds that the person has failed to: 1) apply for available work as
so directed by the employment office; 2) actively engage in seeking work; or 3) accept suitable
work when offered. DES is statutorily prohibited from disqualifying an individual from receiving
UI benefits on the basis of the individual's separation from employment if the individual is a victim
of domestic violence and leaves employment due to a documented case involving domestic

violence (A.R.S. §§ 23-771 & 23-776).

Provisions
1. Prohibits DES from disqualifying an individual from receiving Ul! benefits based on the

individual's separation from employment if the individual is terminated from employment for
not receiving the COVID-19 vaccine or booster shot as required by the employer. (Sec. 1}

2. Specifies benefits paid to an individual are not to be charged against an employer's account
if the employer's requirement that employees receive the COVID-19 vaccine or booster shot

is required by law. (Sec. 1)
3. Makes technical and conforming changes. (Sec. 1)

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

SB 1494

Initials Page 1 Commerce

Attachment &
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1494
“Tf
DATE March 15, 2022 motion: _df
PASS AYE NAY PRESENT | ABSENT
Carter WA
Chavez U~
Cook eo
Espinoza . a
Kaiser ~~
Liguori v4
Meza . 7
Wilmeth ~~
Chaplik, Vice-Chairman Le
Weninger, Chairman VA
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APPROVED:

\ oft:

\ head ui QO oplia

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT.

NG CONMITTEE mai

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DPA 5-4-0-0 | 3 Read 24-4-2-0

SCT Tec acer magma

SB 1166: public employers; union contracts
Sponsor: Senator Leach, LD 11
Committee on Commerce

Overview
Prohibits public monies from being spent for union activities.

History
Pursuant to A.R.S. § 16-192, any public agency, department, board, commission or special taxing

district may not spend or use public resources to influence an election, including the use or
expenditure of monies, accounts, credit, materials, equipment, facilities, vehicles,
telecommunications, web pages, personnel or any other thing of value. A public entity may
present factual information in a neutral manner for educational or informational purposes. This
includes information on a bond, budget, override, candidate or other type of election.

Provisions
1. Asserts a public employer may not spend public monies for union activities. (Sec. 1)

2. Prohibits a public employer from entering into an employment contract with a public employee
to engage in union activities or provide any form of compensation for engaging in union
activities. (Sec. 1)

3. Voids an employment contract that is in violation of the prohibition on engaging in union
activities. (Sec. 1)

4, Grants any Arizona resident and the Attorney General standing to file suit against a public
employer to remedy a violation regarding the use of public monies and employees for union

activities. (Sec. 1)

5. Awards reasonable attorney fees and costs to the prevailing party that brought the action
against the public employer. (Sec. 1)

6. Exempts existing employment contracts in effect prior to the enactment date of this act and
specifies contracts that conflict with the prohibition on the use of public monies and employees
for union activities may not be renewed or extended. (Sec. 1)

7. Asserts the regulation of the use of public monies and public employees for union activities is
a matter of statewide concern and preempts local government regulations. (Sec. 1)

8. Permits a public employee to use personal leave for union activities. (Sec. 1)

9, Defines union activities as: a) political activities that involve advocating for the election or
defeat of any political candidate; or b) lobbying or attempting to influence the passage or
defeat of federal or state legislation, local ordinances or any ballot measure. (Sec. 1)

10. Defines pertinent terms. (Sec. 1)
11. Contains a legislative intent clause. (Sec. 2)

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

SB 1166
Initials Page 1 Commerce

Attachment S

Fifty-fifth Legislature Commerce
S.B. 1166

Second Regular Session
PROPOSED

HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1166

(Reference to Senate engrossed bill)

1 Page 2, line 8, after “ACTIVITIES” insert “PERFORMED BY A UNION”
2 Line 10, strike the first “OR” insert “ACTIVITIES PERFORMED BY A UNION THAT

3 INVOLVE”

4 Amend title to conform

JEFF WENINGER

LI66WENINGER
03/11/2022
04:19 PM

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Failed

_ Not Off
Attachme nt i ered_
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __ SB 1166

DATE March 15, 2022 MOTION: DPA
PASS AYE NAY PRESENT | ABSENT

Carter \~

Chavez \4

Cook iL?

Espinoza WA L Ze

Kaiser vA

Liguori WA

Meza WA

Wilmeth L~

Chaplik, Vice-Chairman

Weninger, Chairman \ /

C reg “L Ut eal uni

APPROVED: CONMITTEE SECRETARY (|

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT. IO
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: FIN DPA 8-0-2-0 | 3" Read 26-1-3-0

SB 1580: money transmission; money transmitter licensure
Sponsor: Senator Livingston, LD 22
Committee on Commerce

Overview
Repeals statute relating to transmitters of money and adopts the Conference of State Bank

Supervisors (CSBS) Uniform Money Transmission Modernization Act.

History
CSBS supports state regulators in advancing the system of state financial supervision by ensuring

safety and soundness; protecting consumers; promoting economic growth; and fostering
innovation, responsive supervision. CSBS provides training, education and other resources to
state banking industry professional. According to CSBS, the Money Transmitter Model Law
implements clear and consistent standards across the state system.

A person must obtain a money transmitter license from the Department of Insurance and Financial
Institutions (DIFI) or be an authorized delegate of a licensee to provide money transmitter
services. Statute allows a corporation or limited liability company that is in good standing under
the laws of the state or country of its incorporation or formation and is authorized to do business
in Arizona to apply for or be issued a money transmitter license. A licensed money transmitter
may conduct money transmitter services at one or more locations in Arizona through an

authorized delegate (A.R.S. §§ 6-1201 and 6-1202).

Provisions

Money Transmission Laws

1. Repeals laws relating to money transmission and adopts the CSBS Money Transmission
Modernization Act. (Sec. 2, 3)
Defines Pertinent terms relating to money transmission statutes. (Sec. 3)

3. Specifies applicable federal law governs if a state money transmission jurisdiction is
conditioned on a federal law in the case of inconsistencies between state and federal law.
(Sec. 3)

4. Allows the Director of DIF! (Director), if an inconsistency exists, to provide interpretative
guidance that identifies the inconsistency and the appropriate means of complying with federal

law. (Sec. 3)
5. Prohibits a person from engaging in the business of money transmission on behalf of an

unlicensed or nonexempt person and deems a person that engages in unauthorized activities
to be jointly and severally liable with the unlicensed or nonexempt person. (Sec. 3)

6. Requires each licensee to forward all money received for transmission in accordance with the
terms of the agreement between the licensee and the sender unless the licensee has a

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

SB 1580
Initials Page 1 Commerce

Attachment | {
reasonable belief or a reasonable basis to believe that the sender may be a victim of fraud or
that a crime or violation of law has occurred, is occurring or may occur. (Sec, 3)

7, Requires a licensee who has failed to forward money received for transmission to respond to
inquiries by the sender with the reason for the failure unless providing a response would
violate a state or federal law. (Sec. 3)

8. Requires a licensee to refund a sender within 10 days of receipt of a sender's written request
for a refund of money received for transmission unless specified conditions apply. (Sec. 3)

9. Excludes, from the refund requirements, money received for transmission that is: a) subject
to the federal remittance rules; or b) pursuant to a written agreement between the licensee
and payee to process payments for goods or services provided by the payee. (Sec. 3)

10. Requires a licensee or its authorized delegate to provide the sender a specified receipt for
money received for transmission and provides requirements for electronical submission. (Sec.
3)

141. Provides disclosure requirements to be included on a receipt. (Sec. 3)

42. Outlines exceptions from receipt requirements. (Sec. 3)

43. Instructs the Director to consider the need to promote uniformity among other state's laws on
money transmission. (Sec. 3)
Implementation

14. Permits the Director to:
a) enter into agreements or relationships with other government officials or federal and state

regulatory agencies in order to improve efficiencies and reduce regulatory burden by

standardizing methods or procedures;
b) use, hire, contract or employ analytical systems, methods or software to examine or

investigate any money transmission licensee;
c) accept licensing, examination or investigation reports made by other state or federal

government agencies or officials; and
d) accept audit reports made by an independent certified public accountant for an applicant
or licensee and incorporate the audit in any report of examination or investigation. (Sec.

3)
15. Requires the Director to adopt rules to implement money transmission regulations and allows
the Director to impose fees for administration and enforcement. (Sec. 3)

Examinations

46. Permits the Director to conduct an examination or investigation and take authorized actions
to administer and enforce money transmission laws and other applicable law. (Sec. 3)

17. Requires regulated persons to provide all records the Director may reasonably require to
conduct an examination or investigation. (Sec. 3)

48. Permits the Director to use multistate record production standards and examination
procedures when the standards reasonably achieve specified requirements. (Sec. 3)

19. Prohibits the Director from waiving the authority to conduct an examination or investigation
and take authorized actions to enforce compliance with state or federal law. (Sec. 3)

20. Specifies that a joint examination or investigation, or acceptance of either, does not waive an
examination assessment. (Sec. 3)

Multistate Supervision

SB 1580
Initials Page 2 Commerce
21. Allows the Director to participate in multistate supervisory processes established between
states for all money transmission licensees that hold licenses in Arizona and other states and

outlines certain participant responsibilities. (Sec. 3)
Licensure
22. Requires a person to be licensed in order to engage in the business of money transmission
or advertise or hold itself out as providing money transmission. (Sec. 3)
23. Specifies person who may engage in the business of money transmission without a license.
(Sec. 3)
24. Specifies a money transmission license is not transferable or assignable. (Sec. 3)

25. Permits the Director certain actions to establish consistent licensure between Arizona and
other states. (Sec. 3)

26. Allows the Director to establish relationships or contracts with NMLS or other entities
designated by NMLS to enable the Director to: a) collect and maintain records; b) coordinate
multistate licensing processes and supervisions processes; c) process fees; and d) facilitate
communication between Arizona and licenses or other persons subject to money transmission

regulation. (Sec. 3)

27. Permits the Director to use NMLS for all aspects of licensure, including forms, processes and
functionalities. (Sec. 3)

28. Allows the Director, for participation in the NMLS, to waive or modify, by rule or order, any or
all requirements and establish new requirements as reasonably necessary. (Sec. 3)

29, Requires an applicant for licensure to apply to DIF! and pay all applicable nonrefundable fees
and outlines the contents of the application. (Sec.3)

30. Outlines additional requirements for applicants who are a corporation, limited liability
company, partnership or other legal entity. (Sec. 3)

31. Permits the Director to waiver application requirements or allow an applicant to submit other
information. (Sec. 3)

32. Outlines additional information requirements for specified individuals. (Sec. 3)

33. Allows a person presumed to exercise a controlling influence to rebut the presumption of
control if the person is a passive investor. (Sec. 3)

34. Requires an individual, if they have resided outside the United States within the previous 10
years, to provide an investigative background report prepared by an independent search firm
that meets outlined requirements. (Sec. 3)

35. Instructs the Director to promptly the applicant of the date on which the application is
determined to be complete. (Sec. 3)

36. Requires the Director to approve or deny the application within 120 days after the completion
date. (Sec. 3)

37. Stipulates if the application is not approved or denied within 120 days: 1) the application is
approved; 2) the license is effective on the 121 day; and 3) the Director may extend the period
for good cause. (Sec. 3)

38. Specifies the Director's determination that an application is complete and accepted means
only that the application appears to include all of the required items and is not an assessment
of the substance of the application. (Sec. 3)

SB 1580
Initials Page 3 Commerce
39.

40.

41.

42,

43.

44,
45,

46.

47.

48.

49,
50.

51.

52.

53.

54.

55,
56.

Initials

Instructs the Director, upon considering an application complete, to investigate the applicant's
financial condition, financial and business experience, character and general fitness. (Sec. 3)

Outlines the conditions that must be met for license issuance. (Sec. 3)

Allows the Director, if an applicant avails itself or is otherwise subject to a multistate licensing
process, to either: 1) accept the applicant investigation results of a lead investigative state; or
2) investigate the applicant if Arizona is the lead investigative state. (Sec. 3)

Requires the Director to issue a formal written notice of application denial within 30 days after
a denial decision is made and requires the notice to include specific reasons for denial along

with appeal information. (Sec. 3)

Specifies the initial license term begins on the day the application is approved and expires on
December 31 of the year in which the term began unless the initial date is between November
4 and December 31 then the term runs through to December 31 of the following year. (Sec.

3)
Requires a license to be annually renewed. (Sec. 3)

Requires applicable renewal fees be paid no more than 60 days before the license expires.
(Sec. 3)

Sets the renewal term as one year, which begins on January 1 of each year after the initial
license term and expires on December 31 of the year the renewal term begins. (Sec. 3)

Requires a licensee to submit a renewal report with the annual renewal fee and requires the
report to specify information that is materially different from the original license application if
the licensee has not previously reported the information to the Director. (Sec. 3)

Allows a licensee to renew an expired license by January 31 and subjects a licensee to a late
fee of $500. (Sec. 3)

Permits the Director to use NMLS to process license renewals. (Sec. 3)

Authorizes the Director to suspend or revoke a license if a licensee fails to continue to meet
the qualifications or requirements for a new money transmission license. (Sec. 3)

Requires a money transmission applicant to demonstrate that the applicant meets the net
worth, surety bond and permissible investments requirements. (Sec, 3)

License Suspension and Revocation

Prescribes the conditions in which the Director may suspend or revoke a license and suspend
or revoke the designation of an authorized delegate. (Sec. 3)

Allows the Director, in determining whether a licensee or authorized delegate is engaging in
an unsafe or unsound practice, to consider the size and condition of the licensee's money
transmission, the magnitude of the loss, the gravity of the violation and the previous conduct
of the licensee or the authorized delegate. (Sec. 1)

Permits the licensee or delegate to appeal a suspension or revocation. (Sec. 3)
Acquisition of Control
Requires written approval from the Director prior to acquiring control of a licensee, (Sec. 3)

Specifies that an individual is not deemed to acquire control of a licensee and is not subject
to acquisition of control requirements when the individual becomes a key individual in the

ordinary course of business. (Sec. 3)

SB 1580
Page 4 Commerce
57,
58.

59.

60.

61.

62,

63.

64.
65.

66.

67.

68.

69.

70.

71.
72.

73.

Initials

Provides requirements to acquire control of a licensee. (Sec. 3)

Allows the Director, on request, to allow a licensee or the person or group of persons acting
in concert seeking to acquire control of a licensee to submit some or all required information
without using NMLS. (Sec. 3)

Deems an application for acquisition of control complete when it includes all required items
and instructs the Director to promptly notify the applicant of the date on which the application

was determined to be complete. (Sec. 3)

Requires the Director, upon determining the application for acquisition of control is complete,
to approval or deny the application within 60 days. (Sec. 3)

Stipulates if the application is not approved or denied within 60 days: 1) the application is
approved; 2) the person is not prohibited from acquiring control; and 3) the Director may
extend the period for good cause. (Sec. 3)

Specifies the Director's determination that an application is complete and accepted means
only that the application appears to include all of the required items and is not an assessment
of the substance of the application. (Sec. 3)

Instructs the Director, upon considering an application complete, to investigate the person's
financial condition, financial and business experience, character and general fitness. (Sec. 3)

Outlines the conditions that must be met for acquiring control. (Sec. 3)

Allows the Director, if an applicant participates in a multistate licensing process, to: 1) accept
the investigation results of a lead investigative state; or 2) investigate the applicant if Arizona
is the lead investigative state. (Sec. 3)

Requires the Director to issue a formal written notice of application denial within 30 days after
a denial decision is made and requires the notice to include specific reasons for denial along

with appeal information. (Sec. 3)

Delineates persons in which the requirements for an application to acquire contro! do not
apply. (Sec. 3)

Requires specified individuals to notify the Director within 15 days after the acquisition of
control. (Sec. 3)

Specities the requirements for an application to acquire control do not apply to a person that
receives approval to engage in money transmission or is identified as a person in control in a
prior application if specified conditions are met. (Sec. 3)

Allows a person to request a determination from the Director as to whither the person would
be considered a person in control of a licensee. (Sec. 3)

Key Individuals

Requires a licensee adding or replacing any key individual to provide: a) notice within 15 days
after the effective date of the key individual's addition or replacement; and b) required
information within 45 days after the effective date of the key individual's addition or

replacement. (Sec. 3)

Allows the Director, within 90 days of the key individual's notice of addition or replacement, to
issue a notice of disapproval of a key individual if the competence, experience, character or
integrity of the individual is not in the best interest of the public or the customers of the

licensee. (Sec. 3)

SB 1580
Page 5 Commerce
74,

75.
76,

77.

78.

79.
80.

81.

82.

83.

84.

85.

86.

87.
88.

89.

90,

Initials

Requires a notice of disapproval to contain a statement of the basis for disapproval and to be
sent to the licensee and the disapproved individual. (Sec. 3)

Allows a licensee to appeal a notice of disapproval. (Sec. 3)

Deems a key individual's application to be approved if the provided notice is not disapproved
within 80 days of completion. (Sec. 3)

Stipulates if a multistate licensing process includes a key individual notice review and

disapproval process:
a) the Director may accept the determination of another state; or
b) the Director may investigate the application if Arizona is the lead investigative state. (Sec.

3)
Reports and Audits

Requires each licensee to submit a report of condition within 45 days after the end of the
calendar or within any extended time as the Director prescribes. (Sec. 3)

Outlines the contents of the report of condition. (Sec. 3)

Permits the Director to use NMLS for the submission of the report of condition and allows the
Director to change or update the reporting requirements to maintain consistency with NMLS
reporting. (Sec. 3)

Requires each licensee, within 90 days after the end of each fiscal year, to file an audited
financial statement prepared by an independent certified public accountant and any other
information reasonably required by the Director. (Sec. 3)

Allows the Director, if the certificate of opinion is qualified, to order the licensee to take any
action found necessary to enable the independent CPA to remove the qualification. (Sec. 3)

Directs each licensee to submit a report of authorized delegates within 45 days after the end
of the calendar quarter and outlines information that must be included. (Sec. 3)

Provides reporting requirements for a licensee regarding bankruptcy, receivership, revocation
or suspension of a license, felony charge or convictions and the Bank Secrecy Act
requirements. (Sec. 3)
Outlines specified records that must be maintained by a licensee for at least five years. (Sec.
3)

Authorized Delegates
Provides responsibilities for a licensee prior to conducting business through an authorized
delegate. (Sec 3)

Specifies delegates must comply with money transmission laws. (Sec. 3)
Delineates the requirements for a written contract between the licensee and the delegate prior
to conducting business. (Sec. 3)

Requires a licensee, within five days after the license is suspended, revoked, surrendered or
expired, to provide documentation to the Director that the licensee has provided notice to ail
applicable authorized delegates whose names are in a record filed with the Director. (Sec. 3)

Requires applicable authorized delegates, on suspension, revocation, surrender or expiration
of a licensee's license, to immediately cease to provide money transmission as an authorized

delegate of the license. (Sec. 3)

SB 1580
Page 6 Commerce
91. Specifies that an authorized delegate of a licensee holds in trust for the benefit of the licensee
all money net of fees received from money transmission. (Sec. 3)
92. Requires, if an authorized delegate commingles money transmission monies and other money

or property, all commingled money and other property to be considered held in trust in favor
of the licensee in an amount equal to the amount of money net of fees received from money

transmission. (Sec. 3)
93. Prohibits an authorized delegate from using a subdelegate to conduct money transmission on
behalf of a licensee. (Sec. 3)

94. Authorizes the Director to issue an order against the licensee to cease and desist from
providing money transmission through an authorized that is in violation of money transmission
laws. (Sec. 3)

Net worth, Surety Bond and Permissible Investments

95, Requires a licensee to maintain a tangible net worth of: a) the greater of $100,000 or three
percent of total assets for the first $100,000,000; b) two percent of additional assets for
$100,000,000 to $1,000,000,000; or c) one-half percent of additional assets for over

$1,000,000,000. (Sec. 3)

96. Requires tangible net worth to be demonstrated at initial application by the applicant's most
recent audited or unaudited financial statements. (Sec. 3)

97. Permits the Director to exempt a person from the net worth requirements. (Sec. 3)

98. Requires an applicant for a money transmission license to maintain a surety bond and
specifies the requirements for bond amounts. (Sec. 3)

99. Requires a licensee to maintain permissible investments that have a market value of not less
than the aggregate amount of all of its outstanding money transmission obligations. (Sec. 3)

400. Allows the Director to limit the extent to which a specific investment may be considered a
permissible investment. (Sec. 3)

101. Specifies that permissible investments, even if commingled with other assets of the licensee,
are held in trust for the benefit of the purchasers and holders of the licensee's outstanding

money transmission obligations in the event of insolvency, bankruptcy, reorganization,
receivership or any other judicial or administrative proceeding for its dissolution or

reorganization. (Sec. 3)
102. Requires the Director, on the establishment of a statutory trust or when any money are drawn

on a letter of credit, to notify the applicable regulator of each state in which the licensee is
licensed of the establishment of the trust or the money drawn on the letter of credit. (Sec. 3)

103.Provides regulations for permissible investments held in trust. (Sec. 3)

404. Allows the Director to: a) allow other types of investments that the Director determines are of
sufficient liquidity and quality to be a permissible investment; and b) participate in efforts with
other state regulators to determine that other types of investments are of sufficient liquidity
and quality to be a permissible investment. (Sec. 3)

105. Delineates the types of permissible investments. (Sec. 3)

106.Prescribes requirements for a notice of expiration or nonextension of a letter of credit. (Sec.
3)

107.Permits the Director to: a) designate an agent to serve on the Director's behalf as beneficiary
to a letter of credit if the agent and letter of credit meet requirements established by the

SB 1580
Initials Page 7 Commerce
Director; and b) participate in multistate processes designed to facilitate issuing and
administering letters of credit, including services provided by NMLS and a state regulatory

registry. (Sec. 3)
Exception
108, Outlines specified individuals or entities who are exempt from money transmission laws.
(Sec. 3)

409.Allows the Director to require any person claiming to be exempt from money transmission
licensure to provide information and documentation demonstrating qualification for the

exemption. (Sec. 3)
Miscellaneous
410.Permits the Deputy Director to require the following individuals to submit a full set of

fingerprints and the associated fees to DIF! before receiving a license.

a) any individual in control of a licensee or applicant;
b) any individual seeking to acquire control of a licensee; or

¢) each key individual. (Sec. 1)
111.Defines pertinent terms relating to money transmission statutes. (Sec. 5)

412. Removes language relating to a requirement for a licensee to retain additional records. (Sec.
8)

413.Deletes language relating to a requirement for a licensee to maintain any customer
identification records. (Sec. 6)

414.Removes the notification by mail limitation relating to registering an advanced fee loan
broker. (Sec. 7)

115.Repeals statute requiring the name and addresses of all registered advanced fee loan
brokers be recorded by DIF!. (Sec. 8)

116. Specifies the federal exemption from reporting requirements does not apply to persons who
are engaged in the money accumulation business. (Sec. 9)

417.Defines pertinent terms relating to money laundering statutes. (Sec. 9)

118.Exempts a licensed money transmitter from new money transmission statutes if there are
conflicts between existing money transmitter statutes until the person renews their license or
until six months after the effective date, whichever is later. (Sec. 11)

419.Requires a licensed money transmitter to only amend authorized delegate contracts for
contracts entered into or amended after the effective date or after completion of license

renewal. (Sec. 11)
420.Makes technical and conforming changes. (Sec. 4, 6, 9, 10)

SB 1580

initials Page 8 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __ SB 1580
DATE March 15, 2022 MOTION: DP
PASS AYE NAY PRESENT | ABSENT
Carter a \-
Chavez Vv le,
Cook we
Espinoza WA wz
Kaiser \
Liguori Vo i
Meza wo
Wilmeth io
Chaplik, Vice-Chairman eo
Weninger, Chairman Vs
q | 6 19

\ houl/ i Qanllex Lo ;

APPROVED: ~ COMMITTEE SECRETARY
LAnL~

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT_12—
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: APPROP DPA 9-1-0-0 | 34 Read 47-11-2-0

SB 1459: event wagering; fantasy sports; fees
Sponsor: Senator Borrelli, LD 5
Committee on Commerce

Overview
Reduces the amount of monies the Arizona Department of Gaming (ADG) may use for regulating

and enforcing fantasy sports contest and event wagering laws. Caps the fee for the privilege of
operating fantasy sports contests and event wagering.

History
Laws 2021, Chapter 234, established laws governing fantasy sports contests and event wagering.

ADG is responsible for the administration and regulation of fantasy sports contest and event
wagering operators.

The Fantasy Sports Contest Fund and the Event Wagering Fund were established for the deposit
of their respective licensing and privilege fees. ADG may spend up to 10% of each fund's monies
on the costs of regulating and enforcing fantasy sports contest and event wagering laws,
respectively. Any monies remaining revert to the state General Fund.

ADG is required to establish a fee for the privilege of operating fantasy sports contests and event
wagering. In determining the fee, ADG must consider the highest percentage of revenue share
that an Indian tribe pays in accordance with the tribal-state gaming compact. The fees are due by
the 25" day of each month for deposit to the respective funds (A.R.S. §§ 5-121, 5-1212, and 5-
1318).
ADG has set the following fees for the privilege of operating:

1) fantasy sports contests, 5% of fantasy sports contest adjusted revenues,

2) event wagering for retail operations, 8% of adjusted gross event wagering receipts; and

3) event wagering for mobile operations, 10% of adjusted gross event wagering receipts

(R19-4-208; R19-4-112).
Provisions

1, Lowers, from 10% to 8%, the maximum amount of monies ADG may spend:
a) from the Fantasy Sports Contest Fund on the annual costs of regulating and enforcing

fantasy sports contest statutes; and
b) from the Event Wagering Fund on the annual costs of regulating and enforcing event

wagering statutes. (Sec. 2, 4)
2. Caps the fee for the privilege to operate fantasy sports contests and event wagering at 10%.
(Sec. 1, 4)
3. Repeals previously enacted Laws which amended Event Wagering statutes. (Sec. 3)

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

SB 1459

Initials PRB Page 4 Commerce

a
Attachment LS
oOo SNS BD TO Se WY Pe

Commerce

Fifty-fifth Legislature
S.B. 1459

Second Regular Session
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1459

(Reference to Senate engrossed bill)

Page 1, line 9, after “PERCENT” insert “OF THE FANTASY SPORTS CONTEST OPERATOR’S
ADJUSTED REVENUES”
Strike lines 30 through 43

Renumber to conform
Page 2, line 8, after “PERCENT” insert “OF THE EVENT WAGERING OPERATOR’S ADJUSTED

GROSS EVENT WAGERING RECEIPTS”
Line 27, strike "ter EIGHT" insert "ten"

Amend title to conform

JEFF WENINGER

L459WENINGER2
03/14/2022
10:50 AM

H: PRB/1s

- Adopted a # of. Ve
Failed

Attachment | Y Not Offered

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __ SB 1459

—_
DATE March 15, 2022 motion: OPA

NAY PRESENT | ABSENT

PASS

>
a
NU

Carter
Chavez
Cook

Espinoza

Kaiser

Liguori

Meza
Wilmeth
Chaplik, Vice-Chairman

Weninger, Chairman

ICN | QNNIN

| |

\ hea ie ee

APPRO Wp — COMMITTEE eR

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT. IS”
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DP 7-0-2-0 | 3° Read 27-0-3-0

pes tc SE SE SS SSS
SB 1248: beer shipments; coercion; prohibition
Sponsor: Senator Gowan, LD 14
Committee on Commerce

Overview
Declares it unlawful for a supplier to coerce a wholesaler to accept delivery of beer or other

commodities.

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

and the Office of the Director of the Department regulates the manufacture, distribution and sale
of liquor in this state through the issuance of 21 license types or series.

Statute outlines unlawful acts regarding liquor and DLLC licensees. Violations of liquor laws are
classified as class 2 misdemeanors unless another classification is provided in statute (A.R.S. §§
4-244; 4-246).

Provisions
4. Deems it unlawful for a supplier to coerce or attempt to coerce a wholesaler to accept delivery

of beer or any other commodity that the wholesaler did not order or that the wholesaler
canceled. (Sec. 1)

2. Permits a supplier to impose reasonable, good-faith inventory requirements on a wholesaler
if the requirements are generally applied to similarly situated wholesalers that have an

agreement with the supplier. (Sec. 1)

3. Prescribes a civil penalty of between $200 to $3,000, to be imposed by DLLC, for a person
who unlawfully coerces wholesalers. (Sec. 1)

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

(J Prop 105 (45 votes) [1 Prop 108 (40 votes) 0 Emergency (40 votes) 1 Fiscal Note

SB 1248
Initials Page 1 Commerce

Attachment, lo

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __ $B 1248
DATE March 15, 2022 MOTION: DP

PASS AYE NAY PRESENT | ABSENT
Carter WA /
Chavez Ww,
Cook a
Espinoza wa
Kaiser \o
Liguori wa
Meza Ww
Wilmeth wv |
Chaplik, Vice-Chairman Le
Weninger, Chairman wa

2 | V 0
\ OV

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT__!'?
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DPA/SE 8-0-1-0 | 3 Read 27-0-3-0

gps SS ES SSS
SB 1403: workers' compensation; industrial commission; claim
Sponsor: Senator Gowan, LD 14
Committee on Commerce

Overview
Provides reporting requirements for insurance carriers and self-insured employers who receive
notification of an injury by an injured employee who intends to file a workers' compensation claim.

History
The Industrial Commission of Arizona (ICA) is a five-member Governor-appointed commission

responsible for overseeing various labor-related issues in Arizona including processing and
adjudicating workers’ compensation claims.

in the event an accident occurs to an employee, the employee must report the accident and the
resulting injury to the employer. The employer, within 10 days after receiving notice of an
accident, must inform the insurance carrier and the ICA. Additionally, any physician employed by
the injured employee must report the accident and the resulting injury to the employer, the
insurance carrier and the ICA (A.R.S. § 23-908).

Pursuant to A.R.S. § 23-1061, the ICA, upon receiving a notification of the injury, must send a
workers' compensation claim form to the employee. No claim for compensation is valid unless the
claim is filed with the ICA by the employee, in writing, within one year after the injury occurred.
The ICA, on receiving a claim, must give notice to the insurance carrier. If the insurance carrier
does not issue a notice of claim status denying the claim within 21 days after the date the
insurance carrier is notified by the ICA of a claim or a petition to reopen, the insurance carrier
must immediately pay compensation as if the claim was accepted, from the date the insurance
carrier is notified by the ICA of a claim or petition to reopen until the date the insurance carrier
issues a notice of claim status denying such claim.

Provisions
1. Stipulates an insurance carrier or self-insured employer who receives a written notification

that an injured employee intends to file a claim for compensation must: a) forward the
notification of the injury and intended claim to the ICA within seven business days and; b)
inform the employee of the requirement for the employee to file a claim with the ICA. (Sec. 1)

2. Provides that the requirement to file a claim within one year of the injury is suspended, from
the date that the insurance carrier or self-insured employer received written notification of the
injury and intended claim until the date that the insurance carrier or self-insured employer

forwards the written notification to the ICA. (Sec. 1)

3. Requires the ICA, upon receiving the forwarded notification, to notify to the employee of the
employee's responsibility to file a claim with the ICA. (Sec. 1)

4. Clarifies the additional expenses relating to a petition to reopen a claim must be incurred
within 15 days before, rather than 15 days after, the date that the petition is filed. (Sec. 1)

5. Makes technical changes. (Sec. 1)

C Prop 105 (45 votes) € Prop 108 (40 votes) {1 Emergency (40 votes) OF iscal Note

SB 1403
Page 1 Commerce

Initials

_ Attachment [g
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce BILL NO. __ $B 1403

DATE March 15,

2022

MOTION: «DP

PASS

AYE NAY PRESENT | ABSENT

Carter

Chavez

Cook

Espinoza

Kaiser

Lo
wa

Liguori

Meza

Wilmeth

Chaplik, Vice-Chairman

Weninger, Chairman

APPROVED:
ao

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

“KY 1 ICs

\ bl ud hs a -

~~ CONMITTEE aia

ATTACHMENT!

File and source

File: 2022-03-15_commerce-minutes.pdf
Size: 3,276,977 bytes
SHA-256: e5390235cc215fb3dc264c8cb3a79c5ba92c2ad6186fad749b0766b57458b7d0
Our copy: 2022-03-15_commerce-minutes.pdf
Original: www.azleg.gov

"Arizona House of Representatives Committee on Commerce Meeting Minutes and Agenda for March 15, 2022"

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