Arizona House of Representatives Committee on Commerce Regular Meeting Minutes and Bill Summaries

Summary

The Report of Regular Meeting of the Committee on Commerce of the Arizona House of Representatives, Fifty-fifth Legislature, First Regular Session, for Tuesday, January 19, 2021, with Mr. Weninger as chairman. The committee adopted its rules and recorded DP action on HB2044, HB2045, HB2049, HB2085, HB2108 and HB2109 and DPA on HB2050, with no action on HB2120, HB2160 and HB2161. Attachments include the agenda, the Request to Speak report listing organizations supporting, opposing or neutral on each bill, the attendance record and the Standing Committee Rules. The document also contains bill summaries, including one for HB 2109 on bingo that raises the check threshold for cash prizes to $1,100 and resets license class thresholds at $75,000 and $500,000. It closes with the roll call vote on HB 2109.

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

Full text

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

COMMITTEE ON COMMERCE

Report of Regular Meeting

Tuesday, January 19, 2021

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

Conyened 2:05 P.M,

Recessed
Reconvened
Adjourned

Members Present
Mr. Chaplik

Mr, Cook

Mr, Espinoza

Mrs. Fernandez

Mr. Meza

Ms. Nutt

Ms, Powers Hannley

Mr, Wilmeth

Mr. Kaiser, Vice-Chairman
Mr. Weninger, Chairman

4:27 PLM.

Agenda
Original Agenda — Attachment |

Request to Speak
Report — Attachment 2

Commiitee Attendance
Report — Atachment 3

Committee Action

Bill Action
Adoption of Committee Rules

HB2044 DP

HB2045 DP

HB2049 DP

HB2050 4 =DPA

HB2085 DP

HB2108 DP

HB2109 DP

BB2120 None
HB2160 None
HB2161 None

MINUTES RECEIVED
CHIEF CLERK'S OFFICE
jrd]-dB
Members Absent
Vote Attachments
4
10-0-0-0 5, 6
10-0-0-0 7,8
7-3-0-0 9, 10
10-0-0-0 11, 12, 13
10-0-0-6 14, 15
6-4-0-0 16, 17
10-0-0-0 18, 19

Ae fre PnNakor/

Iris McMahon, Committee Secretary
January 21, 2021

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

COMMITTEE ON COMMERCE

January 19, 2021

REVISED - 1/14/21 REVISED - 1/14/21 REVISED - 1/14/21

ARIZONA HOUSE OF REPRESENTATIVES Cernenest! A! 05,
Fifty-fifth Legislature - First Regular Session , pr

REGULAR MEETING AGENDA Age ceuned : uf ‘24
' “ mm
COMMITTEE ON COMMERCE f

DATE Tuesday, January 19, 2021 ROOM HHR3 TIME 2:00 P.M.

This meeting will be held via teleconference sofiware. Members of the public may access a livestream of the meeting here:

https:/Avww.azleg.gov/videoplayer/?client] D=6361162879&eventID=202 101 1066

Members:
Mr, Chaplik Mr. Meza Mr, Wilmeth
Mr, Cook Ms, Nutt Mr. Kaiser, Vice-Chairman
Mr, Espinoza Ms. Powers Hanley Mr. Weninger, Chairman

Mrs, Fernandez

I, Welcome & Introductions

2. Adoption of Committee Rules - alt pe ~ Vetee- Jeter

Bills Short Title Sirike Everything Title

HB2044 D ? insurance; omnibus.
(Weninger)
_o  COM,RULES

(D+ 0-0

HB2045 P civil rights; amendments
Df (Weninger)

1) rd-o~ 0 COM, RULES

HB2049 p eminent domain; existing contracts
(Weninger)
-3r0r? COM, RULES

HB2050_—C«j. liquor omtaibus
DPA ingen
(Weninger)

]oe 0-0-0 COM, RULES

*HB2085 real estate; employees; rent collection
DP (Chaplik: Carroll, Toma)

0 Or?

Page 1 of 2
Attachment }

Bills Short

*HB2108 7, 0

Di?

——

DP

po-o-0-?

(Weninger)

*HB2109 bingo; conduct; licenses

¥*]1B2120 NoT>
Dhyae
Pesigne
*HB2161 Nor
ASSvGned

if printed, first read and assigned

(Bolick)

*HB2160
_ enforcement

Kaiser)

*

(Lieberman: Dunn, Sierra,

timeshares; public reports;

Title Strike Everything Tile

-0 telecommunications; public highways; use; fees

et al)

purchase contracts

occupational safety; advisory committee;

tourisin marketing authorities.
(Kaiser: Blackman, Chaplik, et al)

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

**Any person desiring to be heard in-person in committee concerning fegislation shall email th
email address (HouseCOM@azleg.gov) at least 24 hours, excluding weekends and holidays, in

The request to participate in-person shall be in addition to re

DF
01/14/2021

People with disabilities may request reasonable a
assistance with physical accessibility. If you requis

at request to the House committee
advance of committee, if practicable.

questing to speak via the Request to Speak system,

ccommodations such as interpreters, alternative formats, or
‘e accommodations, please contact the Chief Clerk's Office at

(602) 926-3032 or through Arizona Relay Service 7-4-1,

Pp

age 2 of 2

Information Registered on the Request to Speak System

tlouse Commerce (1/19/2021)

HB2044, insurance; omnibus.

Support:

Marc Osborn,
Service Contract Association; Ellen Poole, Executive Director, SW Region Govt Relations,

Casualty Insurers; Michelle AhImer, American Property And Casualty insurance Association

Chubb tnsurance , Claims And Litigation Alliance, Federal Home Loan Bank SF, National Home
American Property &

Neutral:
Stephen Briggs, AZ DEPT OF INSURANCE AND FINANCIAL INSTITUTIONS

HB2045, civil rights; amendments

Support:

Karen McClelland, representing self; Rebekah Browder, representing self; Kelly Rostan, representing self; Linda
Sessions, representing self; Nancy Cohen, representing self; Ellen Cheek, representing self; Edith Lefevre, AZ
ATTORNEY GENERAL'S OFFICE; Charles Willlams, representing self; Rivko Knox, representing self; allen katz,
William E. Morris Instltute For Justice; Robert McCormick, representing self; howard johnson, representing self;
Janet Larkin, representing self; Jessie Armendt, MARCH OF DIMES BIRTH DEFECTS FOUNDATION, Dianne Post, AZ
NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; margaret gallagher, representing self; Alice Stambaugh,
representing self; Sharon Lee, representing self; rene Hunting, representing self; Ralph Meredith, representing
self; Gayle Meredith, representing self; Joan Marie Beverstock, representing self; Ruth Shea, representing self;
Martha O'Connor, representing self; Patricia Bauer, representing self; Gall Prestera, representing self; Candace
Wilkinson, representing self; Mary Ganapol, representing self; Peggy Klein, representing self; David Patchen,
representing self; Margaret Owen, representing self; Barbara Patchen, representing self; Ilene Riffle, representing
self; Laura Terech, representing self; Nelson Morgan, representing self; Shelly Gordon-Gray, representing self; J
Nicholas Prestera, representing self; Linda McCormick, representing self; Chris Comer, representing self; William

Bowlus-Root, representing self

Oppose:

Karen Harris, representing self

All Gomments:
Rebekah Browder, Self: On behalf of the Attorney General’s Office; Charles Willlams, Self: equal standards for

women In employment; Robert McCormick, Self: These protections are long overdue and sorely needed.; Janet
Larkin, Self: This is an equality Issue.

_ Attachment a

1B2049, eminent domain; existing contracts

Support:

Spencer Kamps,
Trussell, AZ ROCK PRODUCTS ASSN; Brian Murray, MARKET FREEDOM ALLIANCE; J

Cheryl Lombard, VALLEY PARTNERSHIP; Chad Guzman, EPCOR WATER

HOME BUILDERS ASSOCIATION OF CENTRAL AZ; garry hays, Harvard Investments, Inc.; Steve
ohn Morris, representing self;

Oppose:

Tom Savage,

LEAGUE OF ARIZONA CITIES & TOWNS; robert wingo, SURPRISE, CITY OF; Thomas Adkins, PEORIA, ,
CITY OF; Dale Wlebusch, MARICOPA, CITY OF; Ginna Carico, GOODYEAR, CITY OF; Thomas Brady,

representing self

All Comments:
Thomas Brady, Self: Bullhead City and other municipalities should strongly oppose this unnecessary bill. This Is an

attempt to hamper legitimate use of eminent domain. Purchase price In condemnation actions are clearly

established by already existing laws.

HB2050, liquor omnibus

Support:

Don isaacson, AZ LICENSED BEVERAGE ASSN; Steve Barclay, BEER & WINE DISTRIBUTORS OF ARIZONA; Wendy
Briggs, DIAGEO; Jason Barraza, Associate Director, DIAGEO; Todd Baughman, WINE INSTITUTE; Trish Hart, AZ FOOD
MARKETING ALLIANCE; Michelle Ahlmer, AZ RETAILERS ASSN; Mike Williams, DISTILLED SPIRITS OF US INC
(DISCUS); Camila Alarcon, ARIZONA CRAFT BREWERS GUILD; Jessie Armendt, Republic National Distributing
Company Of Arizona; Alan Everett, AZ WINE GROWERS ASSN; Marle Isaacson, AZ LICENSED BEVERAGE ASSN; Tom
Farley, Wine Spirits Wholesalers Association Of Arizona; Dr Garrison Ellam, representing self; Peter Schelstraete,

representing self

Neutral:
Barry Aarons, AZ TRIAL LAWYERS ASSOCIATION

All Comments:
Or Garrison Eliam, Self: it ts difficult to speak as | have a tracheostomy, However, | will be willing to speak, if

needed.; Peter Schelstraete, Self: 4-203 (G} Support extension of time allowing Director of DLLC to relleve
automatic reversion of Ilquor license to avoid unintended and unnecessary severe hardships to licensees.; Barry

Aarons, AZ TRIAL LAWYERS ASSOCIATION: Neutral on bill, wish to speak

HB2085, real estate; employees; rent collection

Support:
Tom Farley, Arizona Association Of Realtors;
Realtors

John Morris, representing self; Matt Contorelli, Arizona Association Of

HB2108, telecommunications; public hiahways; use; fees

Support:
Robert Plzorno, CROWN CASTLE AND ITS AFFILIATES; Don Isaacson, T-MOBILE USA INC; Jason Barraza,

Director, AT & T INC; Jay Kaprosy, AT & T INC; John Mortis, representing self; John Fetherston, AT & T INC; Marle
T-MOBILE USA INC; Jeff Lumen Technologies, Lumen Technologies; Michael DiMarfa, TOTAL SPECTRUM

Associate

Isaacson,

Neutral:
Barbara Meaney, VERIZON; Michelle Bolton, COX COMMUNICATIONS ARIZONA, LLC, COXCOM INC

Oppose:

Tom Savage,
MARICOPA, CITY OF; Salle Travis, representing self; Karen Harris, representing self; Sarah Harris,

Linda Petersen-Vargas, representing self; Jacolyn Marshall, representing self; lan Linssen, MESA, CITY OF

LEAGUE OF ARIZONA CITIES & TOWNS; Brad Lundahl, SCOTTSDALE, CITY OF; Dale Wiebusch,
representing self;

All Comments:
Robert Pizorno, CROWN CASTLE AND ITS AFFILIATES: Strongly support ~ representing Crown Castle; Jeff Lumen

Technologies, Lumen Technologles: changing from self to company I represent; Michael DiMarla, TOTAL
SPECTRUM: Representing Total Spectrum not self; Sarah Harris, Self: Telecom companies do not need new tax
cuts; they make money hand over fist. | oppose preemption of local authority and local tax revenues. The feg has

taken enough from AZ towns. Please invest In implementing data privacy protections Instead.; Jacolyn Marshall,
Self: Unnecessary and fiscally Irresponsible.; Michelle Bolton, COX COMMUNICATIONS ARIZONA, LLC, COXCOM

INC: Cox has concerns/questions re:bill; we are In process of scheduling mtg with Crown Castle (proponents)
regarding bill language to discuss the language and ask legal questions, Thx to bill sponsor for helping get this set

up.

HB2109, bingo; conduct; licenses

Neutral:
Bill Ritz, AZ DEPT OF REVENUE

HB2120, timeshares; public reports; purchase contracts

Support:
Louls Dettorre, Legistative Liaison, Arizona Department of Real Estate, AZ DEPT OF REAL ESTATE

HB2160, occupational safety; advisory committee: enforcement

Suppoit:

Chad Helnrich, NATIONAL FEDERATION OF INDEPENDENT BUSINESS; Spencer Kamps, HOME BUILDERS
ASSOCIATION OF CENTRAL AZ; David M. Martin, ARIZONA CHAPTER Of The ASSOCIATED GENERAL CONTRACTORS
OF AMERICA, INC,; James Ashley, INDUSTRIAL COMMISSION OF AZ; Courtney Coolidge, AZ CHAMBER OF

COMMERCE; Trevor Laky, INDUSTRIAL COMMISSION OF AZ

All Comments:
James Ashley, INDUSTRIAL COMMISSION OF AZ: .

HB2161, tourism marketing authorities.

Support:
Barry Aarons, VISIT MESA, VISIT PHOENIX, VISIT TUCSON; Kim Sabow, Arizona Lodging & Tourlsm Association;

Laura Magnus, EXPERIENCE SCOTTSDALE; Jaime Molera, ARIZONA LODGING AND TOURISM ASSOCIATION; Steve
Barclay, BEER & WINE DISTRIBUTORS OF ARIZONA; Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE;
Courtney Coolidge, AZ CHAMBER OF COMMERCE; Mike Hutchinson, representing self; Maria Baler, representing

self; Marc Garela, representing self

Neutral:
Brad Lundahi, SCOTTSDALE, CITY OF; Miranda DeWitt, MESA, CITY OF

Oppose:
Ben Beckhart, REPUBLICAN LIBERTY CAUCUS OF ARIZONA; Karen Harris, representing self; Sarah Harris,

representing self; Linda Petersen-Vargas, rapresenting self; Jacolyn Marshall, representing self; David Kahn,
REPUBLICAN LIBERTY CAUCUS OF ARIZONA; Salle Travis, representing self

All Comments:
Mike Hutchinson, Self; The PHX East Valley Partnership Board of Directors and staff strongly encourage your

support of this bill.; Marla Baler, Self: On behalf of the Phoenix Suns organization, thank you for hearing this bill. if
it becomes law, it will significantly assist one of AZ's most significant statewide Industries in recovering from the
economic challenges brought by the pandemic.; Mare Garcla, Self: Will only speak If needed/requested,; Ben
Beckhart, REPUBLICAN LIBERTY CAUCUS OF ARIZONA: HB2161 creates six pages of new statute, allowing
cities/counties to create Tourism Marketing Authorities who can Impose a new tax on hotel rooms. This bill
Increases bureaucracy and taxes. We respectfully oppose HB2161 and ask for a No vote.; Sarah Harris, Self: |
support funding thru the tourism office and allocation it In budget, not consumer fees and local bureaucracies. |
support re-establishing the film Industry In Arizona to bring real Jobs for crafts and technology vs service work.;
Jacolyn Marshall, Self: Raising fees for consumers during a pandemic Is not a good, fair or fust idea.; David Kahn,
REPUBLICAN LIBERTY CAUCUS OF ARIZONA: This bill will grow government bureaucracy and raise taxes. We should
instead be looking for solutions that shrink government and cut taxes, while empowering a free market. We ask

legislators to oppose HB2161 and vote No.

ARIZONA STATE LEGISLATURE
Fifty-fifth Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _Steve Kaiser
DATE J1 4 121 (21 /24 /21 (24
CONVENED R09 Spm m m m m
RECESSED
RECONVENED
ADJOURNED #27 Im
MEMBERS
Chaplik wv
Cook 4
Espinoza 4
Fernandez Y
Meza v
Nutt V4
Powers Hannley VA
Wilmeth vA
Kaiser, Vice-Chairman VA
Weninger, Chairman 4

V Present .- Absent exc Excused

Attachment 3B

January 15, 2021

Attachment 1
COMMITTEE ON COMMERCE ‘
Standing Committee Rules yi

RULE 1, A majority of the members of the committee shall constitute a quorum. No
official action may be taken unless a quorum is present in person or remotely at
the time of taking such action.

RULE 2. The chairman sets the agenda and determines the order of measures. The
chairman also controls all public testimony.

RULE 3. The following motions are customary and in order relating to actions on

measures:

1, Do pass

2, Do pass as amended

3, Return for consideration of the House

4, Hold for further study

5. Do not pass

6. Be assigned to subcommittee fov....
RULE 4, The affirmative vote of a majority of those voting is required to take any action.
RULE 5. On a roll call vote the names of committee members shall be called alphabetically

by surname; except that the vice chairman and the chairman shall be called upon
last. Each member present shall be allowed to pass on one call of the roll, and
shall vote “yes” or “no” (aye, nay) or respond “present.” Members may change

- their votes before the announcement of the results and members may explain their
vote on any measure.

RULE 6, Whenever a measure is reported from the committee on a divided vote, any
member may request a minority report.

RULE 7. All amendments (except strike-everything amendments, see House Rule 8.8) shall
be distributed to each committee member’s office by 12:00 P.M. the day before
the committee at which it will be offered. Verbal amendments may be offered
during the committee meeting at the discretion of the chairman.

In accordance with Rule 9 of the House Rules, the following House Rules are also incorporated
into the Committee Rules:

RULE 9(C). Each Standing Committee shall adopt and file with the Chief Clerk’s Office rules
of procedure consistent with the House Rules and shall include the following:

Attachment Ca

January 15, 2027
1. With the exception of executive session ordered by a majority of the
committee constituting a quorum, all committee meetings shall be open to
the other members of the Legislature, the press and public so long as
proper decorum is maintained,

2. All committees shal! meet at regularly scheduled times and places unless
canceled with the permission of the Speaker. In the absence of the
chairman, the vice chairman shall preside. In the absence of both the
chairman and vice chairman, some other committee member designated by

the Speaker shall preside.

3. The committee chairman (presiding officer) other than the chairman of the
Committee on Rules shall prepare an agenda and distribute copies to
committee members, the Information Desk and the Chief Clerk's Office by
5:00 p.m. at least five days before the committee meeting. Absence of a
bill, memorial or resolution from the commitice agenda will prohibit its
consideration unless unanimous consent of all committee members is
obtained. Unless a reconsideration motion has been offered and failed, a
chairman may place a measure that failed in Committee on any. subsequent

agenda.

4, A bill not on the committee agenda shall be scheduled for discussion at the
next subsequent committee meeting by a presentation of a petition
containing the signatures of two-thirds or more of the committee
members.

5. A roll call vote shall be taken in each standing committee when final
action on any bill is voted.

6. Written committee minutes shall be filed with the Chief Clerk’s Office
within a reasonable time but no later than two weeks from time of
completion of meetings. An audio recording of the meeting shall be open
to public inspection in the Chief Clerk’s Office three working days after
the meeting. Attendance records of all committee-meetings shall be filed
with the Chief Clerk’s Office within 24 hours from time of completion of

meetings.

7. Special meetings may be called by the chairman but require permission of
the Speaker and notice to members and the general public at the
Information Desk by 5:00 p.m. on the previous day, except that the notice
of a special meeting of the Committee on Rules may be given in open
session prior to the meeting and does not require the Speaker's permission.

RULE 9 (£). No committee other than the Committee on Rules shall meet while the House is
meeting in session without special permission of the Speaker.
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session

HB 2044: insurance; omnibus.
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Makes various changes to insurance statutes relating to home service warranty contracts,
electronic communications and records of insurers, Federal Home Loan Banks and insurer

licensing.

History
Established by the Federal Home Loan Bank Act, the Federal Home Loan Bank System provides

its members with a source of funding for: 1) mortgages and asset-liability management; 2) liquidity
for a member's short-term needs; and 3) additional funds for housing finance and community:

development.

During a delinquency proceeding involving the liquidation, rehabilitation or reorganization of an
insolvent insurer, a court may issue an injunction against an insurer preventing: 1) interference
with the receiver or proceeding; 2) the waste of the assets of the insurer; 3) the commencement
or prosecution of any actions; 4) the obtaining of preferences, judgments, attachments or other
liens; and 8) the making of any levy against the insurer or against its assets (A.R.S. § 20-614).

Law requires all proceedings in which the insolvent insurer is a party to be stayed for six months
from the date of insolvency to permit proper defense by the Property and Casualty Guaranty Fund
of all pending causes of action as to any covered claim (A.R.S. § 20-676),

Provisions
{. Defines deliver. (Sec. 1)

2. Clarifies the Department of Insurance and Financial Institutions (DIFI) may send orders and
notices by mail, personal delivery or fax or by electronic means. (Sec. 2)

3. Requires an insurer, who uploads a document or notice to a portal or secure website, to send
a separate notice to the receiving party that: 1) specifies that the document or notice has been
uploaded; and 2) includes a description of the document or notice. (Sec. 3)

4, Removes the requirement that an insurer confirm consent electronically with a party in
advance in order to deliver a notice or document by electronic means. (Sec. 3)

5. Removes the requirement that an insurer obtain distinct advanced electronic consent from a
named insured for delivery of a notice of cancellation, nonrenewal or reduction of limits of
motor vehicle insurance. (Sec. 3)

6. Removes the requirement that an insurer obtain distinct advanced electronic consent from a
named Insured for delivery of a notice of cancellation, nonrenewal or reduction of limits of
motor vehicle insurance. (Sec. 3)

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

HB 2044
initlals Page 1 Cammorrn

Attachment Ss
7. Applies electronic communications and records requirements to the following policies and
annuities: disability, marine and transportation, surety, prepaid legal and dental, title, identity
theft, workers' compensation, and policies and contracts issued by health care services
organizations and hospital, medical, dental and optometric service corporations. (Sec. 3)

8. Exempts, from insurance producer licensure requirements, a person: a) whose activities in
Arizona are limited to providing a website or other electronic platform for insurers or insurance
producers to sell insurance; and b) who processes payments or charges for insurance
premiums, if the person does not sell, solicit or negotiate insurance. (Sec. 4)

9. Excludes, from the definition of adjuster, an individual, rather than an employee of a third-
party administrator or self-insured employer, who investigates or negotiates settlement of only
workers’ compensation claims. (Sec. 5)

40. Waives examination and residency requirements for an adjuster license applicant who holds
a current claims certificate issued by an association with a Director-approved certification
program. (Sec. 6)

114. Requires the Workers’ Compensation Appeals Board to mail, rather than send, a written notice
of its decision in a requested review of the application of a rating system. (Sec. 7)

12. Specifies that a nonrenewal of commercial insurance is not effective unless the insurer sends
a copy of the notice of nonrenewal to the named insured in addition to the insured's agent.

(Sec, 19)
Federal Home Loan Banks (FHLB)

43, Defines federal home loan bank and insurer member. (Sec. 8)

44, Prohibits, in insurance receivership and insolvency proceedings, an FHLB from being stayed,
enjoined or prohibited from exercising or enforcing any right or cause of action against
collateral pledged by an insurer member under any:

a) FHLB security agreement; or
b) pledge, security, collateral or guarantee agreement, or other similar arrangement or credit
enhancement relating to a security agreement to which an FHLB Is a party. (Sec. 9, 10,

43, 14)
15. Makes a conforming change. (Sec. 11)

16, Prohibits a receiver, rehabilitator, liquidator or conservator from voiding any transfer of money
or other property in connection with any FHLB security agreement or similar arrangement with
an Insurer member, unless the transfer is made with actual intent to hinder, delay or defraud
existing or future creditors. (Sec. 12, 15)

Home Service Warranty Contracts
17. Includes a lessee of real property in the definition of consumer. (Sec. 16)

48. Modifies the definition of consumer product as any property, rather than only tangible personal

property, that:

a) is normally used for personal, family or household purposes; and

b) becomes part of the intended usefulness of real property or is typically transferred with
real property as an integral functioning utility appliance or system. (Sec. 16)

19. Specifies that the definition of service contract is a written contract or agreement that covers,
in whole or in part, services performed for the operational or structural failure of a consumer

product, with or without additional indemnity payments,

HB 2044
Initials Page 2 Commerce
20.

21,

22.

23,

24.

25.

26.

2/.

a) Adds roof leak to the list of circumstances that may result in an indemnity payment.

(Sec, 18)
Removes the requirement that a corporation's annual financial statement be independently
audited and certified by a certified public accountant to qualify for exemption from DIF! service
company requirements. (Sec. 17)
Decreases, from $100,000,000 to $25,000,000, the minimum net worth that certain
corporations must maintain to qualify for exemption from DIFI service company permit
requirements. (Sec. 17)
Modifies the circumstances In which a service company may cancel a service contract. (Sec.
18)
Prohibits administrative expenses associated with a service contract cancellation from

exceeding the lesser of $75 or 10 percent of the service contract purchase price, rather than
40 percent of the gross amount paid by a service contract holder for the service contract. (Sec.

18)
Prohibits any administrative expense assessed for a cancellation of a service contract from
exceeding the refund amount due to the service contract holder. (Sec. 18)

Allows a service contract's disclosure of material acts or omissions of a contract holder that

cancel or void coverage to include:
a) fraudulent or unlawful acts by the contract holder arising out of or relating to the service

contract; and
b) the contract holder's use of a covered consumer product in an unintended manner that is

likely to increase the likelihood that the consumer product will be damaged or require
repairs. (Sec, 18)
Require a service contract to disclose whether the contract covers or excludes preexisting
conditions. (Sec. 18)

Allows a service contract to exclude preexisting conditions only if the conditions were known -
or would have been known by visually inspecting, operating or testing the covered property.

(Sec. 18)

HB 2044

Initials Page 3 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2044__

DATE January 19, 2021 MOTION: _, | yi

PASS AYE NAY | PRESENT | ABSENT
Chaplik _ VA
Cook 4
Espinoza _ VA
Fernandez WA
Meza WA
Nutt VA
Powers Hannley WA
Wilmeth V4
Kaiser, Vice-Chairman VA
Weninger, Chairman /
10 0 2) g
COMMITTEE SECRETARY

APPROVED:

JEFF Vy Chairman

STEVE KAISER, Vice-Chairman

ATTACHMENT__©

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session

HB 2046: civil rights; amendments
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Codifies statute to federal law regarding the terms because of sex and on the basis of sex.

History
The Civil Rights Division of the Attorney General's Office administers and enforces civil rights

statutes relating to voting rights, employment, public accommodations and fair housing.

Pursuant to A.R.S. § 41-1463, it is unlawful for an employer to discriminate against any individual
with respect to employment because of the individual's race, color, religion, sex, age, national

origin or on the basis of disability.

Federal taw outlines actions that constitute an unlawful employment practice (42 U.S.C. § 2000e),
Further, federal law notes: The terms "because of sex" or "on the basis of sex" include, but are
not limited to, because of or on the basis of pregnancy, childbirth, or related medical conditions;
and women affected by pregnancy, childbirth, or related medical conditions shall be treated the
same for all employment-related purposes, including receipt of benefits under fringe benefit
programs, as other persons not so affected but similar in their ability or inability to work.

Provisions
1. Increases the amount of time a person has, after receiving a subpoena requiring the person to

produce any evidence in their possession or control, to petition the Attorney General (AG) to
revoke, limit or modify the subpoena from 5 days to 14 days. (Sec. 1)

2. Specifies the terms because of sex and on the basis of sex as used in the discrimination of
employment statutes includes "because of or on the basis of pregnancy or childbirth or related

medical conditions”. (Sec. 3)

3. Asserts women who are affected by pregnancy, childbirth or related medical conditions must
be treated the same for all employment-related purposes as others that are not so affected
but similar in their ability or inability to work.

a. Adds an employer may not differentiate wages or compensation for women who are
affected by pregnancy, childbirth or related medical conditions. (Sec. 4)

4. Specifies an employee or an individual in an apprenticeship or other training or retraining
program may not be discriminated against for:
a. Opposing an unlawful employment practice; or
b, Making a charge, testifying, assisting or participating in an employment discrimination
investigation, proceeding or hearing. (Sec.5)

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

HB 2045
Initials Page i Commerce

Attachment. i

5. Removes the 90-day timeframe for a charging party to a civil action after the AG's notice that
the charge was dismissed or has not filed a civil action or entered into a conciliation

agreement. (Sec. 6)

6. Permits, rather than requires, the AG to file a civil action if a conciliation agreement is not
reached within 30 days after the AG has determined that reasonable cause exists fo believe

laws have been violated. (Sec, 7)
7. Makes technical and conforming changes.

HB 2045
Initlals . Page 2 Commerce

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. _HB 2046
DATE January 19, 2021 MOTION: D pe
PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook /
Espinoza J
Fernandez S
Meza JS
Nutt /
Powers Hannley WA
Wilmeth vo
Kaiser, Vice-Chairman J
Weninger, Chairman VA
LO v 0 d

APPROVED:

Ni

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

COMMITTEE SECRETARY

ATTACHMENT. Jb

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

HB 2049: eminent domain; existing contracts
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Asserts a municipality assumes all existing assets and contractual obligations of a public utility

business or enterprise if acquired by eminent domain.

History
Eminent domain refers to the power of a governmental entity to take private property and convert

it to public use. The state Constitution requires that just compensation be given to the owner if
private property is damaged or taken for public or private use (Az Constitution Article 2, Section
17).

Actions for taking property by condemnation must be brought as a civil action in superior court.
The plaintiff must deliver the following to the property owner at least 20 days prior to filing an
action:

1) Awritten offer to purchase the property and to pay just compensation for the property.

2) An appraisal that supports the proposed compensation amount. (A.R.S. § 12-141 6)

Current law allows a municipality to exercise the right of eminent domain either within or without
its corporate limits for specified purposes. Additionally, the municipality may establish and operate
any plants, electric lines and pipelines on any land or right-of-way taken under eminent domain

(A.R.S. § 9-571).

Provisions

1. Requires a municipality, when exercising the right of eminent domain to acquire a public utility
business or enterprise, to assume all existing assets and contractual obligations associated
with providing current and future utility service in the certificate of convenience and necessity
that is being condemned, unless all the parties to the contractual obligation agree otherwise.
(Sec. 1}

2. Deems contracts that a public utility business or enterprise that is being condemned enters
into in bad faith and to impede the condemnation within 60 days of receiving a municipality's
purchase offer as against public policy and void. (Sec. 1)

3. Makes technical changes. (Sec. 1)

HB 2049

Initials Page 1 Commerce

Attachment
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2049

DATE January 19, 2024 MOTION: DP

PASS AYE NAY | PRESENT | ABSENT

Chaplik
Cook

Espinoza

INVS

NA

Fernandez

Meza

Nutt

Powers Hannley
Wilmeth

Kaiser, Vice-Chairman

Weninger, Chairman

mS) [SIS

Z2|o Q

COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT__/2

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

HB 2050: liquor omnibus
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Makes various changes to statute relating to alcoholic beverages,

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

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

Statute outlines the grounds for license revocation, suspension and refusal to renew which
include, failing to take reasonable steps to protect the safety of a customer entering leaving or
remaining on the licensed premises when the licensee knew or reasonably should have known of

the danger to the person (A.R.S. § 4-210).

Provisions
{. Requires the Director to relieve a licensee from a prior license reversion, unless a reverted

license has been reissued, if a request for reversion relief is filed no later than two years after
the reversion date. (Sec. 1)

2. Allows the Director to issue both a microbrewery license and a farm winery license that are
located on the same land to the same bona fide educational institution for the purposes of
postsecondary educational Instruction. (Sec. 2)

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

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

5. Specifies the duty to protect a customer on the premises does not limit the licensee from using
reasonable intervention, restraint or removal of a person to prevent that person from injuring
other persons on the premises or damaging or disrupting the premises. (Sec. 5)

6. Exempts wine that is produced for personal or family use that is not for sale from laws
governing alcoholic beverages. (Sec. 6)

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

HB 2050
Initials Page i Commerce

Attachment _/ {

10.

14.

12,

Initials

Allows wine to be removed from the premises where it was made for certain contests. (Sec.
6)

Increases the amount of beer or cooler products that may be provided as samples to retail
consumers at an on-sale premises from 12 ounces to 16 ounces. (Sec. 7)

Allows a retailer to order, purchase or receive a spirituous liquor from a licensed craft distiller
that produces less than the allowable amount as defined in statute for sale and delivery. (Sec.
8)

Allows a representative of a producer or wholesaler that is participating at a special event to
consume small amounts of the products on the premises of the event for quality control
purposes. (Sec. 9}

Stipulates an on-sale retailer licensee is not in violation of law relating to the service and
pouring of a spirituous liquor if the licensee Installs a functioning locking device or removes
the bottle and lock from bottle service when a customer removes or tampers with the locking

device. (Sec. 9)
Makes technical changes. (Sec. 1, 2, 3, 4, 6, 7, 8, 9)

HB 2050
Page 2 Commerce

House Committee on Commerce
Verbal amendment to HB2050 (printed)
Offered 1/19/21 by Rep. Steve Kaiser

Page 12, line 29, after "RESTRAINT" insert a comma

Attachment /% .

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2050

~ DATE January 19, 2024 MOTION: pra

PASS AYE NAY j PRESENT | ABSENT

Chaplik
Cook
Espinoza

Fernandez

Meza

Nutt

Powers Hannley
Wilmeth

Kaiser, Vice-Chairman

es

ANN NING

Weninger, Chairman

—
&

OU v b

APPROVED: COMMITTEE SECRETARY

WU Za

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

{2

ATTACHMENT.

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

HB 2085: real estate; employees; rent collection
Sponsor: Representative Chaplik, LD 23
Committee on Commerce

Overview
Allows an unlicensed person to collect rent on behalf of a real estate broker or salesperson.

History
Statute defines real estate broker as a person, other than a salesperson, who, for another and for

compensation conducts transactions in real estate, businesses and business opportunities or time
share interests. This includes sales, exchanges, purchases, renting, leasing, negotiations, listing,
auctions, offers and collecting or attempting to collect rent for the use of real estate (A.R.S. § 32-
2101).

Statute defines real estate salesperson as a natural person who acts on the person's own, or on
the behalf of another who is licensed as a real estate broker, in any transaction that is the same
as those defined as the transactions of a real estate broker including the collection of rent (A.R.S.

§ 32-2101).

it is unlawful for any person, corporation, partnership or limited Ilability company to engage in the
activities of a real estate broker or salesperson without first obtaining the appropriate license

(A.R.S. § 32-2122).

Provisions
1. Authorizes an unlicensed person who works for a real estate broker or a real estate

salesperson to collect, in-person, rent and related fees for the use of real estate when these
collections are part of that person's clerical duties and they provide a receipt upon payment.

(Sec. 1, 2)

2. Directs the Commissioner of the Department of Real Estate to require an out-of-state applicant
for a real estate license to pass an exam on the laws of real estate before licensure. (Sec. 3)

3. Makes technical changes. (Sec, 4, 2, 3)

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

HB 2085
initlals Page 1 Commerce

Attachment

yf

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO, __HB 2085
DATE January 19, 2021 MOTION: vy)
PASS AYE NAY PRESENT | ABSENT

Chaplik VA

Cook Y. |
Espinoza /

Fernandez /

Meza VA

Nutt VA

Powers Hannley VA

Wilmeth /

Kaiser, Vice-Chairman /

Weninger, Chairman vA

/0 0 2) 0

aaa

‘fi ante! Soahinee
STEVE KAISER, Vice-Chairman

COMMITTEE SECRETARY

ATTACHMENT _/ 5

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

HB 2108: telecommunications; public highways; use; fees
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Proscribes the requirement of an annual fee for telecommunications corporations.

History
Pursuant to A.R.S. § 9-583, a political subdivision may require a telecommunications corporation

to pay an annual fee based on the number of linear feet of trench in the public highways in which
the telecommunications corporation has placed facilities that carry interstate traffic between and
among the telecommunications corporation's interstate points of presence exclusive of facilities
used by the local network and the portion of the interstate network that carries intrastate calls.

When calculating the annual fee, the rate per linear foot cannot exceed the highest rate per linear
foot that the political subdivision charged any licensee or franchisee prior to January 1992. The
rate cannot be increased in any calendar year by more than the increase in the average consumer
price index as published in the United States Department of Labor, Bureau of Labor Statistics.

A small wireless facility is a wireless facility that meets both of the following qualifications:

1) All antennas are located inside an enclosure of not more than 6 cubic feet in volume or, if an
antenna has exposed elements, all of those elements could fit within an imaginary enclosure
of the same dimensions.

2) All other wireless equipment associated with the facility is cumulatively not more than 28 cubic
feet in volume, or 50 cubic feet in volume if the equipment was ground mounted before August
9, 2017. (A.R.S. § 9-591).

Provisions
4. Prohibits a political subdivision from requiring a telecommunications corporation to pay an
annual fee for underground facilities that are used for a small wireless facility. (Sec. 1)

2, Makes technical changes. (Sec. 1)

C1 Prop 105 (45 votes) CF Prop 108 (40 votes) [Emergency (40 votes) 1 Fiscal Note

HB 2108
Initials Page 1 Commerce

Attachment / e

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO, HB 2108

January 19, 2021 motion: DF

DATE

PASS NAY PRESENT | ABSENT

AYE
Chaplik 4
Cook vA

Espinoza

Fernandez

Meza

Nutt

Powers Hannley
Wilmeth

Kaiser, Vice-Chairman

Weninger, Chairman

NONI

ST INNIQ K

f | 2 | 6

* &y L
erg, Pe DMahor/
COMMITTEE SECRETARY

‘iyi,
\ Ane AV) aa

\JEFF WENINGER, Chaifman
STEVE KAISER, Vice-Chairman

ATTACHMENT. / /

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session

HB 2109: bingo; conduct; licenses
Sponsor: Representative Lieberman, LD 28
Committee on Commerce

Overview
Increases bingo licenses gross receipt thresholds and the cap on the amount of cash prizes

payable by check.

History
The Department of Revenue (ADOR) enforces bingo laws and issues bingo licenses. Licenses

are divided into three classifications based on the gross receipts. A class A license may be issued
to a person in which the gross receipts cannot exceed $15,600 per year. A class.B license may
be issued to a qualified organization which the gross receipts cannot exceed $300,000 per year.
A class C license may be issued to a qualified organization which the gross receipts exceed

$300,000 per year. (A.R.S. § 5-413)

If the licensee's gross receipts exceed the limits, the licensee must:
4) immediately notify ADOR that the limit has been exceeded;
2) Submit documents and meet the requirements for the new class of license applicable to the

level of gross receipts;
3) Pay ADOR the fee for the appropriate class of the license minus the amount originally

submitted; and
4) Pay any tax at the rate applicable to the new class of license. (A.R.S. § 5-415)
Under current law a person cannot conduct a lottery or raffle within 1,000 feet of or for a 12-hour
period before and after a bingo game or occasion. {A.R.S. § 5-406)
Provisions

4. Removes the prohibition on conducting a lottery or raffle within a 12-hour period before or
after a bingo occasion or game on any premises used for bingo games or within 1000 feet of

the bingo game. (Sec, 1)

2, Increases the threshold amount for cash prizes to be paid by check from amounts of $150 or
greater to amounts of $1,100 or greater. (Sec. 2)

3, Increases bingo license the gross receipt amount thresholds:
a. Class A license, amounts that do not exceed $75,000;
b. Class B license, amounts that do not exceed $500,000; and
c. Class C license, amounts that exceed $500,000. (Sec. 3)

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

HB 2109

Initials Page 1 Commerce

Attachment / vd

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __ HB 2109
DATE January 19, 2021 MOTION: Dr
PASS AYE NAY PRESENT | ABSENT
Chaplik Y
Cook /
Espinoza JS
Fernandez A
Meza /
Nutt /
Powers Hannley WA
Wilmeth WA
Kaiser, Vice-Chairman YO
Weninger, Chairman J
lo O 0 0
f Ae! 7 re ee,
of (CA COMMITTEE SECRETARY

JEFF dll Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT. 4

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