Arizona House of Representatives Committee on Commerce — Report of Regular Meeting, February 2, 2021 (Fifty-fifth Legislature, First Regular Session)

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fifth Legislature, First Regular Session, held Tuesday, February 2, 2021, with Mr. Weninger as Chairman and Mr. Kaiser as Vice-Chairman. The minutes record committee action on eight bills: HB2242, HB2305, HB2438 and HB2446 received DPA, HB2382, HB2396 and HB2697 received DP, and HB2367 was held. Attachments include the agenda, the Request to Speak report, the attendance record, bill summaries, proposed amendments and roll call votes. The HB 2242 summary describes changes to court fee awards against the state, including raising a cap from $75,000 to $125,000, and the HB 2697 summary describes new methods for cancelling health spa contracts. The meeting convened at 2:04 P.M. and adjourned at 3:04 P.M.

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

Convened 2:04 P.M.
Recessed
Reconvened

Adjourned 3:04 P.M.

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

Agenda
Original Agenda — Attachment |

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action
HB2242 DPA
HB2305 DPA
HB2367 HELD
HB2382 DP
HB2396 DP
HB2438 DPA
HB2446 DPA
HB2697 =DP

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, February 2, 2021

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

Members Absent

MINUTES RECEIV
GHIEF CLERK’s OF Fie

A-3-A\

Attachments
4, 5,6

7, 8,9

10

11, 12

13, 14,

15, 16, 17
18, 19, 20
21,22

Mie De Aihahkoo/

Iris McMahon, Committee Secretary

February 3, 2021

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

COMMITTEE ON COMMERCE
February 2, 2021
REVISED #2- 1/29/21 REVISED #2- 1/29/21 REVISED #2- 1/29/21

ARIZONA HOUSE OF REPRESENTATIVES Cysrrencel | a0 o PM
Fifty-fifth Legislature - First Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

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

This meeting will be held via teleconference software. Members of the public may access a livestream of the meeting here:
httns://www.azleg.gov/videoplayer/?clientID=6361 162879&eventID=2021021 008

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

Bills Short Title Strike Everything Title

HB2242 D 0 4h agency actions; procedures, fee awards
(Grantham)
q. / 0-0 COM, RULES

HB2305 Dd r, A spirituous liquor; alternating proprietorships
—————— (Weninger)

qe p- 0 {| O™ RULES

HB2367 special event licenses; charitable organizations
COM, RULES

HB2382 D P mobile home parks; caregivers.
(Blackman)
19-0. 0- © COM, RULBS

HB2396 D - online dating fraud; member notice
(C sob)

j0<0- 0-0 COM, RULES

Page 1 of 2 Attachment_}-
Bills Short Title Strike Everything Title

HB2438 D yp A commerce authority; career landscape information
(Carroll: Cobb, Cook, et al)

f0-0-0-0 COM, RULES
HB2446 escrow accounts; manufactured homes;
D p ff requirements
(Dunn)
0-0
/020-0- com, RULES
*HB2697 D p health spa contracts; cancellation; notice
(Wilmeth)
}0-0-0-P
* If printed, first read and assigned

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

Pursuant to Committee Rule (2). Any person desiring to be heard concerning legislation in-perser-er remotely shall email that request
to (HouseCOM@azleg.gov) at least 24 hours, excluding weekends and holidays, in advance of committee, if practicable. The request
must state the bill the person desires to present arguments upon, and whom the person represents. Timely requests will receive a response
that includes meeting access information to participate in the committee remotely or-in-persen. Sharing meeting access information with
unauthorized users may result in being prohibited to participate remotely in future legislative hearings. The request to participate
remotely via teleconference shall be in addition to requesting to speak via the Request to Speak system
(bitps://apps.azleg.gov/requesttospeak/topicsearch). Persons desiring to testify remotely shall indicate that the participation is remote
within the comments of the Request to Speak system.

DF
01/29/2021

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 (2/2/2027)

HB2242, agency actions; procedures; fee awards

Testified in support:
Marc Osborn, Kutak Rock LLP

Support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Jenna Bentley, BARRY GOLDWATER INSTITUTE
FOR PUBLIC POLICY RESEARCH; Courtney Coolidge, AZ CHAMBER OF COMMERCE

HB2305. spirituous liquor; alternating proprietorships

Testified in support:
Camila Alarcon, ARIZONA CRAFT BREWERS GUILD

Support:

Tom Farley, Wine Spirits Wholesalers Association Of Arizona; Rob Fullmer, representing self

HB2367. special event licenses; charitable organizations

Support:

Daryl Lund, representing self

All Comments:
Daryl! Lund, Self: The bill will allow non-profits to host events that require admission fees and have a special event

license. WI Club of SC

HB2382, mobile home parks; caregivers.

Testified in support:
ellen katz, William E. Morris Institute For Justice; Zach Tretton, AZ ASSN MANUFACTURED HOME OWNERS

Support:
Eddie Sissons, NATIONAL ASSOCIATION OF SOCIAL WORKERS, ARIZONA CHAPTER; Robert White, representing self;

Evril Green, representing self; Brendon Blake, AARP

Attachment__.2_

4
i
i
All Comments:

Brendon Blake, AARP: AARP Arizona, on behalf of our over 900,000 members wants to thank the sponsor of the bill
and chair for bringing the bill up and hearing the bill. AARP has long advocated for those who are in need of care
and continue to do so here.; ellen katz, William E. Morris institute For Justice: If necessary.

HB2396, online dating fraud; member notice

Testified in support:
Ryan O'Daniel, MATCH GROUP

Support:
Tanner Swanson, AZ COALITION TO END SEXUAL AND DOMESTIC VIOLENCE

HB2438, commerce authority; career landscape information

Support:
Alexandria Dionne, OPPORTUNITY SOLUTIONS PROJECT

Oppose:
Trish Hart, AZ PRIVATE SCHOOL ASSOCIATION; Janna Day, UNIVERSITY OF PHOENIX (APOLLO GROUP INC); Shelbe
Hunsaker, UNIVERSITY OF PHOENIX (APOLLO GROUP INC); fred lockhart, representing self

All Comments:

Janna Day, UNIVERSITY OF PHOENIX {APOLLO GROUP INC): Oppose the bill in its current form, but we appreciate
the sponsor's intent of the bill and look forward to continuing the conversation.; Shelbe Hunsaker, UNIVERSITY OF
PHOENIX (APOLLO GROUP INC): Oppose the bill in its current form, but we appreciate the sponsor's intent of the
bill and look forward to continuing the conversation.; fred lockhart, Self: Thank Rep Carroll for meeting with APSA
to seek a solution. We look forward to continued discussions or an exemption. The Private colleges were not
included in the previous version of this proposed legislation. This bill is duplicative

HB2446, escrow accounts; manufactured homes; requirements

Support:
Susan Brenton, MANUFACTURED HOUSING COMMUNITIES OF AZ INC

Neutral:
Evril Green, representing self

H82697, health spa contracts; cancellation; notice

Support:
Josh Kredit, AZ ATTORNEY GENERAL'S OFFICE; Matthew DuMee, representing self
ARIZONA STATE LEGISLATURE
Fifty-fifth Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: _ Steve Kaiser
DATE 1/74 121) 1/26 121 e/a (21 (24 24
CONVENED Rip SAME 105m getem m om
RECESSED
RECONVENED
ADJOURNED 2F Pan of: 94 Pm 3; 04 br
MEMBERS
Chaplik / S|
Cook ~ / /
Espinoza v4 A /
Fernandez Y vA S
Meza Ae / /
Nutt / | /
Powers Hannley 4 VA “
Wilmeth / J | oy
Kaiser, Vice-Chairman V 4 Y
Weninger, Chairman / / 4
1 Present -- Absent exc Excused

Attachment,..3
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2242: agency actions; procedures; fee awards
Sponsor: Representative Grantham, LD 12
Committee on Commerce

Overview
Modifies the maximum allowable amount of court fees that may be awarded to a prevailing party
in certain cases against the state or a city or county. Clarifies the applicability of statutory

inspection and audit requirements.

History
‘A court must award fees and other expenses to any party other than the state or a city, town or

county that prevails in an adjudication on the merits of certain cases, including a: 1) civil action
brought by the state or a city, town or county against a party; 2) court proceeding to review an
agency decision; and 3) special action brought by a party to challenge an action by the state ora
city, town or county against a party. A court must base any award of fees on the prevailing market
rates for the kind and quality of services furnished with statutory caps for expert witnesses,
attorney fees and other fees and expenses. In court actions that involve certain taxation-related
circumstances, statute allows a higher maximum rate to be paid to expert witnesses and attorneys
and allows for a higher total cap for all fees and other expenses paid to a prevailing party other
than the state or a city, town or county (A.R.S. § 12-348).

Provisions
1. Removes the ineligibility of a court expert to receive compensation in excess of the highest
rate of compensation paid by the state, city, town, or county. (Sec. 1)

2. Removes language relating to a $75 per hour cap on award of attorney fees in court cases
that are not tax related. (Sec. 1)

3. Specifies the $350 per hour cap on award of attorney fees to a prevailing party applies to all
applicable court cases, rather than just tax related. (Sec. 1)

4, Removes language relating to a $10,000 cap on award of fees against a city or county in court
cases that are not tax related. (Sec. 1)

5. Specifies the cap on award of fees against this state, or a city or county to a prevailing party
applies to all applicable court case, rather than just tax related.
a, Increases the cap from $75,000 to $125,000. (Sec. 1)

6. Defines appealable agency action and licensing decision. (Sec. 2)
Modifies the definition of licensing. (Sec. 2)

. Entitles a person to have an agency not base a decision regarding any filing or other matter
submitted to an agency on a requirement or condition that is not specifically authorized by a
statute, rule, federal law or regulation or state Tribal gaming compact. (Sec. 3)

HB 2242
initials Page 1 Commerce

Attachment 4
9, Specifies that statutory inspection and audit requirements relating to inspections and audits
of a regulated person's premises by state agency inspectors, auditors or regulators apply to
all state agencies that conduct inspections and audits. (Sec. 4)

10. Specifies that statutory inspection and audit requirements govern if a conflict arises between
a regulated person's rights pursuant to statutory inspection and audit requirements and
another section of statute. (Sec. 4)

41. Prohibits a state agency from basing a decision regarding any filing or other matter submitted
by a licensee on a requirement or condition that is not specifically authorized by statute, rule,
federal law or regulation or state Tribal gaming compact. (Sec. 5)

12. Specifies a general grant of authority in statute does not constitute a basis for imposing a
requirement or condition for approval of a decision on any filing or other matter submitted by
a licensee unless a rule is made pursuant to that general grant of authority that specifically
authorizes the requirement or condition. (Sec. 5)

43, Makes a conforming change. (Sec. 5)

14, Deems, as an appealable agency action, a determination by an agency that an application is
not administratively complete.
a. entitles the applicant to an adjudication on the merits of the administrative completeness
of the application, if timely initiated.
b. exempts the Department of Water Resources applications.

45. Modifies the definition of appealable agency action to include the administrative completeness
of an application. (Sec. 7)

46. Contains an applicability clause. (Sec. 8)

HB 2242
Initials Page 2 Commerce
Commerce

Fifty-fifth Legislature
H.B. 2242

First Regular Session

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2242
(Reference to printed bill)

1 Page 17, line 18, after "APPLICATION" insert “OTHER THAN AN APPLICATION SUBMITTED
2 TO THE DEPARTMENT OF WATER RESOURCES PURSUANT TO TITLE 45"

3 Amend title to conform

JEFF WENINGER

2242WENINGER
01/29/2021
11:12 AM

H: LG@/ra

Attachment 7 7}

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Failed aes

Not Offered
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO. __HB2242_

DATE

February 02, 2021

motion DPA

PASS

>
=<
m

NAY PRESENT | ABSENT

Chaplik

Cook

Espinoza

Fernandez

Meza

Nutt

Powers Hannley

Wilmeth

Kaiser, Vice-Chairman

Weninger, Chairman

APPROYED:

bVGRWA

SSEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

SININNISSS)N\ ISSA

| 0 O

COMMITTEE SECRETARY

ATTACHMENT. Z

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session

ne

HB 2305: spirituous liquor; alternating proprietorships
Sponsor: Representative Weninger, LD 17
Committee on Commerce

Overview
Allows two or more spirituous liquor producer or microbrewery licenses to group at one location

under an alternating proprietorship plan.

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
producer license allows a person to produce or manufacture spirituous liquor and sell the product
to a licensed wholesaler. A microbrewery license allows a person to produce between 5,000 and
6,200,000 gallons of beer in a calendar year and may sell the beer for consumption on or off the
premises and to licensed wholesalers or retailers. A farm winery license allows a person to
produce between 200 and 40,000 gallons of wine annually. The Director may approve, on
application of one or more persons, the grouping of two or more farm winery licenses at one
location under a plan of alternating proprietorships provided the licensed winery has received
approval of the alternating proprietorship by the U.S. Alcohol and Tobacco Tax and Trade Bureau
(U.S. TTB).

The U.S. TTB issues permits for the production and wholesale distribution of alcoholic beverages.
The U.S. TTB allows producers of beer, wine or distilled spirits to apply for an alternating
proprietor arrangement in which two or more persons take turns using the physical premises

(Industry Circular 2005-2).

Provisions

1. Allows the Director to approve applications by one or more persons for grouping two or more
spirituous liquor producer or microbrewery licenses at one location under a plan of alternating
proprietorship if:
a. The licensed producer or microbrewery has received U.S. TTB alternating proprietorship

approval; and
b. The participating producers or microbreweries operate under the U.S. TTB regulations

and guidelines. (Sec. 1)

2. Specifies each participating spirituous liquor producer or microbrewery is responsible for filing
all reports that relate to its production with the U.S. TTB and the Department of Arizona
Revenue. (Sec. 1)

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

HB 2305
Initials Page 1 Commerce

Attachment 7
Fifty-fifth Legislature Commerce

First Regular Session H.B. 2305
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2305
(Reference to printed bill)
1 Page 1, lines 6 and 8, after “PRODUCER” insert ", CRAFT DISTILLER”
2 Line 10, after “PRODUCERS” insert ", CRAFT DISTILLERS”
3 Line 13, after "PRODUCER" insert ", CRAFT DISTILLER"
4 Amend title to conform
JEFF WENINGER
2305WENINGER2
02/01/2021
08:27 AM
H: LG/PRB/ra
Attachment_g— |

__ Adopted

Failed

Not Offered
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce

BILL NO.

DATE February 02, 2021

MOTION:

HB 2305

DPA

PASS NAY

PRESENT

ABSENT

Chaplik

Cook

Espinoza

Fernandez

Meza

Nutt

Powers Hannley

Wilmeth

Kaiser, Vice-Chairman

Weninger, Chairman

0

sa lsISIQWN NIB

en ace

APPROVED: COMMITTEE SECRETARY

Vb Gr

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT 7

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. __HB 2367

DATE February 02, 2021 moTIon: [1 & LD

PASS AYE NAY PRESENT | ABSENT

Chaplik

Cook

Espinoza

Fernandez

Meza

Nutt

Powers Hannley

Wilmeth

Kaiser, Vice-Chairman

Weninger, Chairman

APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT “2

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2382: mobile home parks; caregivers.
Sponsor: Representative Blackman, LD&6
Committee on Commerce

Overview
Permits a disabled resident to have one or more persons occupy the mobile home to provide live-
in health care, personal care or supportive services.

History
The Arizona Mobile Home Parks Residential Landlord and Tenant Act governs mobile home

space rental and landlord and tenant rights and obligations (A.R.S. § 33-1402). A mobile home
resident may have a person who is at least 18 years old temporarily occupy the resident's mobile
home to provide necessary live-in health care to the resident in accordance with a physician's
written treatment plan (A.R.S. § 33-1413.03).

Fair housing laws prohibit a person from discriminating in the sale or rental or denying a dwelling
to any buyer or renter because of a disability of: 1) that buyer or renter; 2) a person residing in
that dwelling; or 3) a person associated with that buyer or renter. Discrimination includes a refusal
to make reasonable accommodations in rules, policies, practices or services necessary to afford
a person with a disability equal opportunity to use and enjoy a dwelling (A.R.S. § 41-1491.19).

Provisions
4. Allows a mobile home park resident who has a disability to have one or more persons occupy
the resident's mobile home to provide necessary live-in health care, personal care or
supportive services.
a. Stipulates the care or services must afford the resident with an equal opportunity to use
and enjoy the dwelling.
b. Clarifies the occupancy is pursuant to state and federal fair housing laws.
c. Removes the requirement for occupancy to be pursuant to a written treatment plan.
d. Removes the landlord's authority to require the resident to provide a written renewal of the
physician's treatment place every six months.
e. Removes the age requirement of the person providing care or services.
f. Allows the occupancy to be temporary or permanent. (Sec. 2)

2. Clarifies persons providing care or services:
a. Cannot be charged a fee for providing such care or services;
b. Have no rights of tenancy; and
c. Must comply with the mobile home park rules and regulations. (Sec. 2)

3. Clarifies resident does not include a person rendering necessary care or services. (Sec. 1)

Makes a technical change. (Sec. 1)

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

HB 2382
Initials Page 1 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2382

DATE February 02, 2021 MOTION: D P

NAY PRESENT | ABSENT

>
a
m

PASS

Chaplik

Cook

Espinoza

Fernandez

Meza

Nutt
Powers Hannley
Wilmeth

Kaiser, Vice-Chairman

SII IC INN

Weninger, Chairman

iD 0 | 0 0
APPROVED: COMMITTEE SECRETARY

LV 11
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT__74
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2396: online dating fraud; member notice
Sponsor: Representative Cobb, LD 5
Committee on Commerce

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

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

as prescribed by law. A dating service enterprise is prohibited from: 1) using coercive sales tactics;
2) misrepresenting the quality, benefits or nature of services; 3) misrepresenting the qualifications
or number of other customers participating in the services provided by the enterprise; and 4)
misrepresenting the success the enterprise has had in making matches or referrals that are
favorable to the enterprise's customers (A.R.S. §§ 44-7152 and 44-7154).

Dating referral services are services that are primarily intended to introduce or match adults for
social or romantic activities, including activities that are commonly referred to as computer dating
or video dating services. Dating referral services does not include arrangements in which one
party is compensated for engaging in the social activity (A.R.S. § 44-7151).

Provisions

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

2. Requires the notification to be:
a) Clear and conspicuous;
b) Sent by email, text message or other means consented to by the member; and
c) Sent after the fraud ban is initiated against the banned member,
i. Within 24-hours; or
ji. If circumstances require additional time, within 3 days. (Sec. 3)

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

4. Asserts the law does not create a private right of action or diminish or adversely affect the
protections afforded under federal law regarding the protection for private blocking and
screening of offensive material. (Sec. 3)

5. Defines pertinent terms. (Sec. 2)

HB 2396
Initials Page 1 Commerce

Attachment/ 3.

|
|
6. Makes a technical change. (Sec. 1)

TC Prop 105 (45 votes) (9 Prop 108 (40 votes) 0 Emergency (40 votes) 4 Fiscal Note

HB 2396
Commerce

Initials Page 2
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB 2396
DATE February 02, 2021 MOTION: D) r

PASS AYE NAY PRESENT | ABSENT
Chaplik v
Cook J
Espinoza /
Fernandez /
Meza WA
Nutt /
Powers Hannley /
Wilmeth WA
Kaiser, Vice-Chairman / ,
Weninger, Chairman Y

/0 0 0 |0

APPROVED:

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

beg l ne Wishor]

COMMITTEE SECRETARY

ATTACHMENT___/ 4

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

re

HB 2438: commerce authority; career landscape information
Sponsor: Representative Carroll, LD 22
Committee on Commerce

Overview
Instructs the Arizona Commerce Authority (ACA) to collect and publicly distribute specified
graduation and employment information.

History
The ACA's mission is to provide private sector leadership in growing and diversifying the

economy, creating high quality employment through expansion, attraction and retention of
businesses and marketing (A.R.S. § 41-1502).

Community college means an educational institution that is operated by a district board and that
provides a program not exceeding two years' training in the arts, sciences and humanities beyond
the twelfth grade of the public or private high schoo! course of study or vocational education,
including terminal courses of a technical and vocational nature and basic adult education courses
(A.R.S. § 15-1401).

Vocational program means a program that is completed by at least twenty-five persons during the

fiscal year and that is one of the following:

1) Operated by a community college district and designated as a vocational program, including
vocational programs operated by a skill center.

2) A private licensed vocational program and that does not provide a baccalaureate degree.
(A.R.S. § 15-1831).

Provisions
1. Requires the ACA to annually collect and compile the following information:

a) The most in-demand jobs in the state, including starting salary and required education
level;

b) The average cost to attend, average monthly student loan payment of individuals who
attended, average three-year student loan default rate of individuals who attended,
average graduation rate, and average starting salary of individuals who graduated from
each of the following:

j. Each university under the jurisdiction of the Arizona Board of Regents (ABOR);
ii, Community colleges;

iii. Vocational programs; and

iv. Private postsecondary institutions.

c) The completion rates for:

i. Department of Economic Security-approved and U.S. Department of Labor-approved
apprenticeship programs,

ii. High school equivalency programs; and

ii. Career and technical education programs. (Sec. 1)

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

HB 2438
Initials Page 1 Commerce

Attachment /

|
2. Directs the ACA, no later than December 14, to annually transmit the information collected and
compiled to each public high school to distribute to students. (Sec. 1)

3. Requires all state agencies, ABOR universities, community colleges, vocational programs and
private postsecondary institutions to provide date data, reports and other information as
requested by the ACA. (Sec. 1)

4. Instructs the ACA to make the information collected and compiled publicly available and to
post it on its website. (Sec. 1)

5. Defines community college and vocational program. (Sec. 1)
6. Cites this act as the "Students’ Right to Know Act". (Sec. 2)
7. Contains a delayed effective date of January 1, 2022. (Sec. 3)

HB 2438
Initials Page 2 Commerce
on OD oO F&F WH MH Ff

9

Fifty-fifth Legislature Commerce
First Regular Session H.B. 2438

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2438
(Reference to printed bill)

Page 1, lines 10, 16 and 23, strike “AVERAGE” insert “LOWEST TO HIGHEST MEDIAN”

Line 30, strike “AVERAGE”
Line 41, strike “AVERAGE” insert “LOWEST TO HIGHEST MEDIAN”

Page 2, between lines lil and 12, insert:

"D, NOT LATER THAN OCTOBER 1 OF EACH YEAR, ALL STATE AGENCIES,
UNIVERSITIES UNDER THE JURISDICTION OF THE ARIZONA BOARD OF REGENTS,
COMMUNITY COLLEGES, VOCATIONAL PROGRAMS AND PRIVATE POSTSECONDARY
INSTITUTIONS SHALL PROVIDE THE DATA, REPORTS AND OTHER INFORMATION
NECESSARY TO FULFILL THE REQUIREMENTS OF THIS SECTION TO THE AUTHORITY.”

10 Reletter to conform

11 Amend title to conform

JEFF WENINGER

2438WENINGER
02/01/2021
08:15 AM

: PRB/1s

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2438

DATE February 02, 2021 motion: DPA
PASS AYE NAY PRESENT | ABSENT

Chaplik Yv

Cook A

Espinoza S

Fernandez JS

Meza JS

Nutt J

Powers Hannley vA

Wilmeth SS

Kaiser, Vice-Chairman J ,

Weninger, Chairman WA

jo | 0 0 2

APPROVED: COMMITTEE SECRETARY

JEFF WENINGER, Chairran
STEVE KAISER, Vice-Chairman

ATTACHMENT_77

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

a

HB 2446: escrow accounts; manufactured homes; requirements
Sponsor: Representative Dunn, LD 13
Committee on Commerce

Overview
Adds criteria for an owner of a mobile home park, who is a dealer, to be exempt from certain

escrow account requirements.

History
A dealer is a person who sells, exchanges, buys, offers or attempts to negotiate or acts as an

agent for the sale or exchange of factory-built buildings, manufactured homes or mobile homes
(A.R.S. § 41-4001).

Statute requires a dealer to establish an independent escrow account with an independent
financial institution or escrow agent for transactions involving: 1) a new manufactured home; 2)a
new factory-built building designed for use as a residential dwelling; or 3) a manufactured home,

mobile home or factory-built building designed for use as a residential dwelling that is previously
owned and that has a purchase price of $50,000 or more.

A dealer who sells a manufactured home, mobile home or factory-built building designed for
residential use and that has a purchase price of less than $50,000 must maintain a licensee's
trust account or open an escrow account. The purchaser of a mobile home, used manufactured
home or used factory-built building designed for residential use may request that the dealer
establish an independent escrow account.

The owner of a mobile home park who also owns a licensed dealership may sell a new
manufactured home or a new factory-built building designed for residential use as a licensee is
exempt from the requirement of establishing an escrow account provided:

1) The home will be sited in a mobile home park that is owned by the park owner;

2) At the time of sale, the park owner can prove through documentation to the Arizona
Department of Housing (Department) that the park owner either holds the license, owns a
majority interest in the license or is controlled by an entity with controlling interest in the
license; and

3) Atthe time of sale, the dealership has posted a dealer bond in the amount of at least $100,000
with the Department (A.R.S. § 41-4030).

Provisions
1. Increases, from at least $100,000 to at least $150,000, the dealer bond amount required for

the escrow account exemption. (Sec. 1)

2. Includes the following criteria as a qualifier for the escrow account exemption for owners of
mobile home parks who are also dealers or own dealerships:

a) Requires the dealer to maintain a licensee's trust account or open an escrow account

when selling a new manufactured home or factory-build building that is designed for

residential dwelling and has a purchase price of less $150,000, or a previously owned

HB 2446
Initials Page 1 Commerce
Attachment_/&
manufactured home, mobile home or factory-built building that has a purchase price of
less than $100,000;

b) Directs the licensee to deposit all earnest monies received in the trust or escrow account;

c) Requires the Department to conduct an audit of each dealer's trust or escrow account at
least once every two years;

d) Allow the purchaser of the manufactured home, mobile home or factory-built building
designed for residential use make a written request that the dealer establish an
independent escrow account; and

e) Requires the licensee to disclose to the purchaser, in writing and before or at the time the
purchaser signs the purchase contract, that the purchaser may request in writing the use
of an independent escrow account and that the transaction be handled through a trust
account controlled by the licensee. (Sec. 1)

3. Allows an owner of a mobile home park, who is a dealer, to be exempt from the requirement
relating to maintaining a trust account or escrow account for transactions involving purchase
prices of less than $50,000 provided certain criteria are met. (Sec. 1)

4. Makes technical changes. (Sec. 1)

HB 2446
Initials Page 2 Commerce
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Fifty-fifth Legislature Commerce
First Regular Session H.B. 2446

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2446
(Reference to printed bill)

Page 1, line 4, after "requirements" insert "for dealers that are not also owners

of mobile home parks”
Strike lines 21 through 45

Page 2, strike lines l through 16
Reletter to conform
Page 3, line 11, strike "D" insert "C"
Page 4, lines 13, 26 and 37, strike "N" insert "M"
Page 5, after line 15, insert:
"Sec, 2. Title 41, chapter 37, article 4, Arizona Revised Statutes,
is amended by adding section 41-4030.01, to read:

41-4030.01. Trust and escrow requirements for dealers that are

also owners of mobile home parks: rules

A. THE OWNER OF A MOBILE HOME PARK THAT ALSO IS OR THAT OWNS A
DEALERSHIP LICENSED PURSUANT TO THIS ARTICLE TO SELL UNITS MAY SELL A
MANUFACTURED HOME OR A FACTORY-BUILT BUILDING DESIGNED FOR USE AS A
RESIDENTIAL DWELLING AS A LICENSEE IF ALL OF THE FOLLOWING APPLY:

1. THE HOME WILL BE SITED IN A MOBILE HOME PARK THAT IS OWNED BY THE
PARK OWNER.

2. AT THE TIME OF THE SALE, THE PARK OWNER HAS ON FILE AT THE
DEPARTMENT THE NAME AND ADDRESS OF ALL MOBILE HOME PARKS OWNED BY THE PARK
OWNER, THE NAME, ADDRESS AND LICENSE NUMBER OF THE LICENSED DEALERSHIP AND
DOCUMENTATION SHOWING TO THE SATISFACTION OF THE DEPARTMENT THAT THE PARK
OWNER EITHER HOLDS THE LICENSE, OWNS A MAJORITY INTEREST IN THE LICENSE OR

Attachment /4
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_ Adopted #o

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House Amendments to H.B. 2446

IS CONTROLLED BY AN ENTITY THAT HOLDS A CONTROLLING INTEREST IN THE
LICENSE.

3. AT THE TIME OF THE SALE, THE LICENSED DEALERSHIP HAS POSTED WITH
THE DEPARTMENT A DEALER BOND IN AN AMOUNT OF AT LEAST $150,000 IN A FORM
SATISFACTORY TO THE DEPARTMENT COVERING SALES BY PARKS SHARING COMMON
CONTROL.

4, AT THE TIME OF THE SALE, THE DEALER SHALL EITHER MAINTAIN A
LICENSEE'S TRUST ACCOUNT OR OPEN AN ESCROW ACCOUNT WITH AN INDEPENDENT
FINANCIAL INSTITUTION OR ESCROW AGENT LOCATED IN THIS STATE. THE LICENSEE
SHALL DEPOSIT ALL EARNEST MONIES RECEIVED FOR THE SALE OF MANUFACTURED
HOMES, MOBILE HOMES OR FACTORY-BUILT BUILDINGS DESIGNED FOR USE AS
RESIDENTIAL DWELLINGS IN THE TRUST OR ESCROW ACCOUNT. THE DEPARTMENT SHALL
CONDUCT AN AUDIT OF EACH DEALER'S TRUST OR ESCROW ACCOUNT, INCLUDING ANY
TRANSACTIONS WITH AN INDEPENDENT ESCROW ACCOUNT, AT LEAST ONCE EVERY TWO
YEARS. THE PURCHASER OF THE MANUFACTURED HOME, MOBILE HOME OR FACTORY-BUILT
BUILDING DESIGNED FOR USE AS A RESIDENTIAL DWELLING MAY MAKE A WRITTEN
REQUEST THAT THE DEALER ESTABLISH AN INDEPENDENT ESCROW ACCOUNT AND IF SUCH
A REQUEST IS RECEIVED BY THE DEALER LATER THAN THE TIME THE PURCHASE
CONTRACT IS SIGNED AND THE SELLER CONSENTS, THE DEALER SHALL COMPLY WITH
THE REQUEST. A LICENSEE THAT HANDLES A TRANSACTION UNDER THIS PARAGRAPH
SHALL DISCLOSE TO THE PURCHASER, IN WRITING AND BEFORE OR AT THE TIME THE
PURCHASER SIGNS THE PURCHASE CONTRACT, THAT THE PURCHASER MAY REQUEST IN
WRITING THE USE OF AN INDEPENDENT ESCROW ACCOUNT AND THAT THE TRANSACTION
WILL OTHERWISE BE HANDLED THROUGH A TRUST ACCOUNT CONTROLLED BY THE
LICENSEE.

B. FOR THE PURPOSES OF THIS SECTION, A FINANCIAL INSTITUTION OR
ESCROW AGENT IS INDEPENDENT IF THE INDIVIDUAL OR ENTITY IS NOT CONTROLLED
BY THE LICENSEE, A FAMILY MEMBER OF THE LICENSEE OR A BUSINESS AFFILIATED
WITH THE LICENSEE AND THE LICENSEE, FAMILY MEMBER OR BUSINESS AFFILIATE
DOES NOT HAVE A MAJORITY INTEREST IN THE FINANCIAL INSTITUTION OR ESCROW
AGENT.
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House Amendments to H.B. 2446

Sec. 3. Section 41-4042, Arizona Revised Statutes, is amended to

read:
41-4042. Funding and assessments

A. A dealer of manufactured homes, mobile homes or factory-built

buildings designed for use as residential dwellings shall pay, in addition
to the license or renewal fee, a fee established by the director of not to
exceed fifty—dottars $50 for each unit that js sold and that is subject to
section 41-4030, subsection ® C, for deposit into the consumer recovery
fund. The fee is payable to the department by the fifteenth day of the
month following the month in which the sale is consummated.

B. Chapter 6 of this title does not apply to the setting of fees
under this section.

c. An amount not to exceed seventy-five percent of the previous
fiscal year's interest earned on the consumer recovery fund may be expended
by the director, with the approval of the board. The expenditure shall be
used for consumer and licensee education in connection with the

manufactured housing and factory-built building industry, and al] monies up

to a maximum of fffty—ttousamt—dottars $50,000 remaining unexpended and
unencumbered at the end of each fiscal year may be used for consumer and
licensee education in succeeding fiscal years and do not revert to the
consumer recovery fund.

Sec. 4, Section 41-4043, Arizona Revised Statutes, is amended to
read:

41-4043. Recovery from fund: claim against Licensee:

subrogation: appeal: statute of Limitations

A, If any consumer who is buying or selling the consumer's home uses
the services of a licensed dealer of manufactured homes, mobile homes or
factory-built buildings designed for use as residential buildings and is
damaged as a result of an act or omission by a licensed dealer of
manufactured homes, mobile homes or factory-built buildings designed for
use as residential buildings that constitutes a violation of section

41-4030, or rules adopted pursuant to that section, and the sale is subject

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House Amendments to H.B. 2446

to section 41-4030, subsection t C, that consumer may file a claim with
the department for payment from the consumer recovery fund. The claim
shall be verified by the department.

B. If any consumer of manufactured homes, mobile homes or
factory-built buildings designed for use as residential buildings is
damaged by the failure of the principal to perform a sales agreement or to
perform repairs under a warranty the consumer may file a claim with the
department for payment from the consumer recovery fund. The claim shall be
verified by the department.

C. On verification of the claim for payment, the director shall
provide for a hearing pursuant to chapter 6, article 10 of this title.

D. The director shall pay from the consumer recovery fund whatever
sum the administrative law judge finds payable on the claim. A decision
granting a claim shall include an order suspending the license of the
licensee on whose account the claim was filed. Sucth~a THE license shall
remain suspended until the licensee has repaid in full, plus interest at
the rate of ten percent per year, the amount paid from the consumer
recovery fund on the licensee's account.

E. Any party aggrieved by the administrative law judge's decision
may apply for a rehearing by filing with the director a motion in writing
pursuant to chapter 6, article 10 of this title. The filing of a motion
for rehearing shall suspend the operation of the administrative law judge's
order pending the decision of the director on the rehearing.

F, Except as provided in section 41-1092.08, subsection H, any
person aggrieved by a final administrative decision may seek judicial
review pursuant to title 12, chapter 7, article 6.

G. The consumer recovery fund has a claim against the licensee on
whose account a claim was granted or any other person who caused or
contributed to a claim paid by the consumer recovery fund for the amount

paid plus costs, necessary expenses and reasonable attorney fees.
wo won HD OT FSF W NH

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13

House Amendments to H.B. 2446

H. The director is subrogated to the claim of the consumer recovery
fund against the bond and other assets of the licensee. The director shall
deposit any amount recovered into the consumer recovery fund.

I. If, at any time, the money deposited in the consumer recovery
fund is insufficient to satisfy any duly authorized claim or portion of a
claim, the director, when sufficient money has been deposited in the
consumer recovery fund, shall satisfy such unpaid claims or portions of
claims in the order that such claims or portions of claims were originally
filed.

J. A consumer pursuant to subsection A or B of this section is
barred from commencing an application for payment from the consumer
recovery fund later than two years from the date of sale or date of

installation, whichever is later.”

14 Amend title to conform

JEFF WENINGER

2446WENINGER
02/01/2021
10:43 AM

C: NS
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. HB 2446_
DATE February 02, 2021 motion: DPA _
PASS AYE NAY PRESENT | ABSENT

Chaplik WA

Cook V4 |

Espinoza /

Fernandez VA

Meza / .

Nutt VA

Powers Hannley WA .

Wilmeth WA

Kaiser, Vice-Chairman /

Weninger, Chairman /

| 12 | 0 Q a
COMMITTEE SECRETARY

JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT_022
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
First Regular Session

es
HB 2697: health spa contracts; cancellation; notice
Sponsor: Representative Wilmeth, LD 15
Committee on Commerce

Overview
Outlines notification methods for canceling or suspending a health spa contract.

History
A health spa is an establishment which provides as its primary purpose services or facilities which

are purported to assist patrons in physical exercise, weight control or figure development (A.R.S.
§ 44-1791).

Contracts for health spa services must be in writing and provided to the customer when the
customer signs the contract. Contracts for new or increased health spa services may be canceled
by the customer for any reason within three days. A customer who wishes to cance! a contract
must notify the health spa in writing by either certified mail or personal delivery (A.R.S. § 44-
1793).

Provisions
1. Requires a health spa to notify a customer of the methods to cancel or suspend a health spa

contract. (Sec. 1)

2. Allows a customer to cancel or suspend a health spa contract by notifying the health spa by
any of the following methods: 1) mail; 2) personal delivery; 3) email; 4) using a cancellation
option provided on the heath spa's website; or 5) using any other manner specified in the
contract. (Sec. 1)

3. Requires a customer, in order to cancel a health spa contract, to notify the health spa using
one of the defined notification methods. (Sec. 1)

4. Clarifies a heath spa contract is subject to cancellation or suspension by notice sent using
one of the defined notification methods:
a. onthe customer's death or permanent disability.
b. on the customer's change of permanent residence to a location more than 25 miles from
the health spa or to an affiliated health spa.
c. onmilitary deployment. (Sec. 1)

5. Updates a notice to customer statement to include a cancellation notice may be sent my email.
(Sec. 1)

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

HB 2697
initials _ Page 1 Commerce

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB 2697
DATE February 02, 2021 motion: Df
PASS AYE NAY PRESENT | ABSENT

Chaplik YW

Cook VA

Espinoza /

Fernandez V4

Meza /

Nutt J.

Powers Hannley /

Wilmeth V,

Kaiser, Vice-Chairman J

Weninger, Chairman /

/? 0 a) O
COMMITTEE SECRETARY

~ JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman

ATTACHMENT__o? A

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