Arizona House of Representatives Committee on Commerce — Report of Regular Meeting, March 11, 2025 (Fifty-seventh Legislature, First Regular Session)

Summary

A Report of Regular Meeting of the Committee on Commerce of the Arizona House of Representatives, Fifty-seventh Legislature, First Regular Session, for the meeting of Tuesday, March 11, 2025 in House Hearing Room 5. It records that the committee convened at 3:20 P.M. and adjourned at 3:45 P.M., lists the members present, and reports do-pass recommendations for SB1095 by 6-4-0-0, SB1159 by 10-0-0-0 and SB1206 by 8-2-0-0, with SB1424 held. Attached bill summaries describe SB 1095, which would prohibit a federally recognized central bank digital currency from being used as legal tender, SB 1159, which would raise the threshold for an unpaid wage claim filed with the Industrial Commission of Arizona from $5,000 to $12,000, and SB 1206, which would adopt the Uniform Special Deposits Act.

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

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 11, 2025
House Hearing Room 5 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR

Convened 3:20 P.M.
Adjourned 3:45 P.M.

Members Present

Representative Aguilar
Representative Blackman
Representative Cavero
Representative Connolly
Representative Diaz

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

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

‘Committee Attendance
Report — Attachment 3

Committee Action

Bill Action
SB1095 DP
SB1159 DP
SB1206 DP

SB1424 HELD

RECEIVED
CHIEF CLERKS OFFICE
Members Absent MAR 11 2025
Vote Attachments
6-4-0-0 4,5
10-0-0-0 6,7
8-2-0-0 8,9
Art,

Abby Sely¢y, CommitteeSecretary
March 11, 2025

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

COMMITTEE ON COMMERCE
March 11, 2025
CoNiera.< 3: ZOpm
Adjen. 7 3: YS pm

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - First Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 11, 2025 ROOM HHR5 TIME 2:00 P.M. or upon recess or
adjournment of Floor

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=202503 1037

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

Representative Connolly

Bills Short Title Strike Everything Title

*SB1095 central bank digital currency; ban
_BP (Hoffman: Keshel)

6-4 -0-0
employment practices; wage claims

*SBI1159
_DP (Gowan)

10-0-0-0
*SB1206 special deposits; banks; requirements;
Db definitions(now: banks; special deposits;
requirements)

$-2-0-O (Bolick)
*SB1424 | | liquor sampling; reporting; requirements
(Bolick)

* If first read and assigned

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

VC

03/05/2025

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

(602) 926-3032 or through Arizona Relay Service 7-1-1.
Page 1 of 1
; ATTACHMENT |
Information Registered on the Request to Speak System

House Commerce (3/11/2025)

S$B1095, central bank digital currency; ban

Support:
Laurie Reiner, representing self; Mary Evelyn Simpson, representing self; Andrea Young, representing self; deana
corsa, representing self; Leo Brown, representing self

All Comments:
Mary Evelyn Simpson, Self: YavGOP PC | do not want the federal government in control of how | spend my money

$B1159, employment practices; wage claims
Support:

Cesar Corral, representing self; Gina Griffiths, representing self; Jeanne Casteen, representing self; Dianne Post, AZ
NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; James Scheid, representing self; Sharon Lee, representing
self; Kathleen Dubbs, representing self; Roger Blain, representing self; Sheila Green, representing self

All Comments:
Cesar Corral, Self: Subbing in for Mark Cardenas; James Scheid, Self: Employees would be able get back stolen

wages.

$B1206, special deposits; banks; requirements; definitions (NOW:

banks: special deposits; requirements)

Support:
Tim Berg, AZ COMMISSION ON UNIFORM STATE LAWS; Alexis Glascock, Arizona Uniform Laws Commission; Kari
Bearman, representing self

All Comments:
Kari Bearman, Self: Happy to answer any questions the Committee may have on the Uniform Special Deposits Act.

$B1424, liquor sampling; reporting; requirements

ATTACHMENT 7
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE

VICE-CHAIRMAN: _ Michael Way

CHAIRMAN: Jeff Weninger

DATE 03/11/25 /25 /25 /25 /25
CONVENED 3.29pm m m m m
RECESSED
RECONVENED
ADJOURNED 3:45 pm

MEMBERS

Aguilar ui

Blackman a

Cavero 7

Connolly gf

Diaz gt

Hendrix ua

Villegas -

Wilmeth ar

Way, Vice-Chairman we

Weninger, Chairman ail

V Present --- Absent exc Excused

AYTACHMENT 3
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

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

SB 1095: central bank digital currency; ban
Sponsor: Senator Hoffman, LD 15
Committee on Commerce

Overview
Outlines prohibitions relating to the use of federally recognized central bank digital currency

(CBDC).

History
According to the Federal Reserve, a CBDC is generally defined as a digital liability of a

central bank that is widely available to the public. In the United States, Federal Reserve
notes are the only type of central bank money available to the public. A CBDC would enable
the public to make digital payments.

Arizona's Uniform Commercial Code regulates commercial and secured transactions in
Arizona, including sales of goods, leases of personal property, negotiable instruments, bank
deposits and collections, rights and obligations connected with fund transfers, letters of
credit, investment securities and secured transactions. Under the Uniform Commercial Code,
money is defined as a medium of exchange currently authorized or adopted by a domestic or
foreign government, including a monetary unit of account established by an
intergovernmental organization or by agreement between two or more countries (Title 47.

A.R.S.).

Various statutes currently provide a definition of legal tender and includes specie as a type
of legal tender. Legal tender, as used in various statutes, is defined as a medium of exchange,
including specie, that is authorized by the United States Constitution or Congress for the
payment of debts, public charges, taxes and dues. Specie is defined as coins having precious
metal content.

Provisions
1. Prohibits a federally recognized CBDC from being:
a) used as legal tender; or
b) the subject or medium of payment of any contract, security or other similar
instrument in this state, including contracts relating to commercial transactions. (Sec.
1)

2. Prohibits transfers made by an escrow agent from an escrow account from being settled
or backed by federally recognized CBDC. (Sec. 2)

3. Excludes a federally recognized CBDC from the definition of money relating to the
Uniform Commercial Code and from the definition of legal tender. (Sec. 1, 10)

4, Establishes a uniform statutory definition for legal tender and specie. (Sec. 1)

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

SB 1095
Initials PB Page 1 Commerce

_ ATTACHMENT 4/

4
5. Makes conforming and technical changes. (Sec. 2-10)

SB 1095
Initials PB Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1095

DATE March 11, 2025 motion: DP

PASS PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

| Pl i

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

NINA | AY | ALF

7 | oe | o

kW 17 cae Lig ade SECRETARY
\’ JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 5
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DP 6-0-1-0 | 3™ Read 25-3-2-0-0

SB 1159: employment practices; wage claims
Sponsor: Senator Gowan, LD 19
Committee on Commerce

Overview
Increases the monetary cap for filing an unpaid wage claim with the Industrial Commission
of Arizona (ICA).

History
Title 23, Chapter 2, A.R.S. governs employment practices and working conditions, including

requirements for payment of wages, minimum wages and employee benefits. Arizona
employers must pay all wages due to employees on each of the regular paydays. Each
employer must designate two or more days in each month, not more than sixteen days apart,
as fixed paydays for payment of wages to their employees (A.R.S. § 23-351).

If an employer fails to pay the wages due to the employee, the employee may recover in a civil
action against an employer an amount that is treble the amount of the unpaid wages.
Alternatively, an employee may file a written claim with the ICA for unpaid wages against
an employer if the amount of such wages does not exceed $5,000 and if such claim is filed
within one year of the accrual of such claim. The ICA, on behalf of an employee, may obtain
judgment and execution, garnishment, attachment or other available remedies for collection
of unpaid wages established by the department's final determination (A.R.S. §§ 23-355, 23

356).

Provisions

1. Increases the threshold of unpaid wages for which an employee may file a claim with the
ICA for such wages from $5,000 to $12,000. (Sec. 1)

OO Prop 105 (45 votes) 1 Prop 108 (40 votes) 0 Emergency (40 votes) UO Fiscal Note

SB 1159
Initials PB Page 1 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. —_SB1159

DATE March 11, 2025 motion: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

© AK AKAN

O O O

—_

ali
“Ny Eiger COMMITTEE SEQRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT.
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session
Senate: FIN DPA/SE 7-0-0-0 | 3 Read 29-0-1-0

SB 1206: banks; special deposits; requirements
Sponsor: Senator Bolick, LD 2
Committee on Commerce

Overview
Adopts the Uniform Laws Commission's (ULC) Uniform Special Deposits Act which allows a
beneficiary to receive payments from a special deposit after the occurrence of an event.

History
The ULC provides states with non-partisan legislation that brings clarity and stability to

critical areas of state statutory law. The ULC drafted the Uniform Special Deposits Act which
addresses deposits at a bank where the identity of the person entitled to payment is not
determined until the occurrence of a contingency identified at the time that the deposit is
created.

Provisions
Special Deposits
1. Establishes the Uniform Special Deposits Act (Act) which applies to a special deposit
under an account agreement that states the intention of the parties to establish a special
deposit governed by the Act, regardless of whether a party to the account agreement or a
transaction related to the special deposit, or the special deposit itself, has a reasonable
relation to this state. (Sec. 1)

2. Specifies a special deposit is:
a) adeposit of funds in a bank under an account agreement;
b) for the benefit of at least two beneficiaries, one or more of which may be a depositor;
c) denominated in a medium of exchange that is currently authorized or adopted by a
domestic or foreign government;
d) for a permissible purpose as stated in the account agreement; and
e) subject to a contingency. (Sec. 1)

3. Requires a special deposit to serve at least one permissible purpose stated in the account
agreement from the creation to the termination of the special deposit. (Sec. 1)

4. Specifies that, prior to termination of a special deposit, if a determination is made that
the special deposit no longer satisfies at least one permissible purpose:
a) certain provisions of the Act cease to apply to any funds deposited in the special
deposit; and
b) a bank may take necessary action, including terminating the special deposit. (Sec. 1)

5. Specifies a depositor or a beneficiary does not have a property interest in a special deposit.
(Sec. 1)

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

SB 1206
Initials PB Page 1 Commerce

ATTACHMENT ©
10.

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12.

13.

14,

15.
16.

17.

18.

Stipulates that, if a bank is obligated to pay a beneficiary, a property interest in the
special deposit is only in the right to receive payment and not in the special deposit itself.

(Sec. 1)
Specifies a special deposit terminates five years after the date it was first funded. (Sec. 1)

Stipulates that a bank, upon termination of a special deposit, must pay any remaining
balance to the depositor if the bank cannot identify or locate a beneficiary entitled to
payment. (Sec. 1)

Specifies that a bank that pays the remaining balance of a special deposit to the depositor
has no further obligation to the special deposit. (Sec. 1)

Account Agreements
Allows the parties of an account agreement to choose a forum in Arizona for settling a
dispute regarding a special deposit regardless of whether a party to the account
agreement or an associated transaction has a reasonable relation to the state. (Sec. 1)

Allows a bank and depositor to amend an account agreement without the consent of the

beneficiary if:

a) the beneficiary is a party to the agreement, and the agreement expressly permits an
amendment;

b) the beneficiary is not a party to the account agreement and the bank and depositor
know that the beneficiary has knowledge of the agreement's terms, and the
amendment does not adversely and materially affect a payment right of the
beneficiary; or

c) the beneficiary is not a party to the account agreement and the bank and depositor do
not know whether the beneficiary has knowledge of the account agreement's terms,
and the amendment is made in good faith. (Sec. 1)

Bank Obligations; Payment
Requires a bank to pay a beneficiary if there are sufficient actually and finally collected
funds in the balance of the special deposit. (Sec. 1)

Stipulates a beneficiary may elect to be paid from the available funds or receive a pro rata
share of the funds when there is more than one beneficiary if the current funds are
insufficient to cover an obligation to pay the beneficiary. (Sec. 1)

Adds that the beneficiary's election to be paid from the available funds discharges the
bank's obligation to pay and does not constitute an accord and satisfaction regarding
another person's obligation to the beneficiary. (Sec. 1)

Asserts a bank's obligation to pay a beneficiary as immediately due and payable. (Sec. 1)

Provides conditions for which a bank may discharge its obligation to pay a beneficiary.
(Sec. 1)

Stipulates that if the bank's obligation to pay a beneficiary incurs an obligation of another
person, the other person's obligation is discharged if a bank's action would constitute a
discharge of the other person's obligation. (Sec. 1)

Bank Duties and Liabilities
Asserts a bank does not have a fiduciary duty to any person with respect to a special
deposit. (Sec. 1)

SB 1206

Initials PB Page 2 Commerce
19.

20.

21.

22.

23.

24,

25.

26.

27.
28.

29.

30.

31.

Specifies a debtor-creditor relationship arises between the bank and a beneficiary when
the bank holding the special deposit becomes obligated to pay the beneficiary. (Sec. 1)

Asserts a bank that holds a special deposit:

a) has a duty to a beneficiary to comply with the account agreement and the Act;

b) is liable to a depositor or a beneficiary for any damages, except for consequential,
special or punitive damages, that are caused by the bank's noncompliance with the
account agreement or the Act; and

c) may rely on records that comply with an account agreement to determine whether the
bank is obligated to pay a beneficiary. (Sec. 1)

Instructs the bank, for account agreements that require payment on presentation of a
record, to determine whether the record is sufficient to require payment. (Sec. 1)

Specifies the bank, for account agreements that require action by the bank on
presentation of a record, is not liable for relying in good faith on the genuineness of the
record. (Sec. 1)

Asserts the bank is not required to determine the existence of a permissible purpose
stated in the agreement. (Sec. 1)

Enforceability of Creditor Process

Specifies a creditor process, with respect to a special deposit, is not enforceable against
the bank holding the special deposit, unless the creditor process, with respect to the
amount the bank is obligated to pay:
a) is served on the bank;
b) provides sufficient information that allows a bank to identify the depositor or the

beneficiary from the bank's books and records; and
c) gives the bank reasonable opportunity to act on the creditor process. (Sec. 1)

Outlines certain stipulations relating to creditor process creating a right of the creditor
against the bank and creating a lien against the beneficiary. (Sec. 1)

Miscellaneous
Specifies the Act does not affect:
a) aright or obligation that relates to a deposit other than a special deposit; or
b) the voidability of a deposit or transfer that is fraudulent or voidable under the law.
(Sec. 1)

Specifies which Act provisions may be varied by agreement. (Sec. 1)

Deems a provision in an account agreement that substantially excuses liability or limits
remedies for failure to perform an obligation as insufficient to vary the effect of the Act.

(Sec. 1)

Allows a court to enjoin a bank from paying a depositor or beneficiary only if the payment
would constitute or facilitate a material fraud with respect to a special deposit. (Sec. 1)

Prohibits a bank from exercising a right of recoupment or setoff against a special deposit,
except that a bank holding a special deposit may exercise such right against an obligation
to pay a beneficiary, even if the bank funds payment from the special deposit. (Sec. 1)

Allows an account agreement to authorize the bank to debit a special deposit:
a) when the bank becomes obligated to pay a beneficiary in an amount that does not
exceed the amount necessary to discharge the obligation;

SB 1206

Initials PB Page 3 Commerce
b) for an overdraft fee;

c) for costs incurred by the bank that relate directly to a special deposit; or

d) to reverse an earlier credit posted by the bank to the balance of the special deposit, if
the reversal occurs under an event governing mistake and restitution. (Sec. 1)

32. Adds that certain statutes and laws, except to the extent of inconsistences, supplement
the Act. (Sec. 1)

33. Instructs a court, in applying and construing the Act, to consider the promotion of
uniformity of the law among enacting jurisdictions. (Sec. 1)

34, Specifies the special deposits to which the Act applies. (Sec. 1)
35. Defines pertinent terms. (Sec. 1)

36. Contains a severability clause. (Sec. 1)

SB 1206
Initials PB Page 4 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1206

DATE March 11, 2025 MOTION: Dp

PASS

>
x

e NAY PRESENT | ABSENT

Aguilar

Blackman

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

ANNAN ANAL AA

Z

O
O75 : COMMITTEE SECRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. |

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