Arizona House of Representatives Committee on Commerce — Report of Regular Meeting, March 24, 2026 (Fifty-seventh Legislature, Second Regular Session)

Summary

Report of a regular meeting of the Arizona House of Representatives Committee on Commerce on Tuesday, March 24, 2026, in House Hearing Room 5, convened at 2:15 P.M. and adjourned at 5:01 P.M. in the Fifty-seventh Legislature, Second Regular Session. Representative Weninger is chairman and Representative Way vice-chairman; Representatives Carter and Cavero are listed absent. The committee action table covers twelve bills, among them SB1421, SB1254 and SB1432, each marked DP, DPA or DPA/SE, with vote tallies such as 6-2-0-4 and 9-0-1-2. The attached roll call for SB1432 describes a bar on escrow transfers settled or backed by a federally recognized CBDC.

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-seventh Legislature - Second Regular Session

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 24, 2026

House Hearing Room 5 -- 2:00 P.M.

Convened 2:15 P.M.
Adjourned 5:01 P.M.

Members Present

Representative Aguilar
Representative Blackman
Representative Diaz

Representative Hendrix
Representative Villegas
Representative Volk

Representative Willoughby
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
SB1421 DP
SB1254 DPA/SE
SB1515  DPA/SE
SB1206 DPA
SB1563. DP
SB1649 DP
SB1290 DPA/SE
SB1670 DP
SB1671 DPA
SB1747. DPA/SE
SB1641 DP
SB1432 DP

Members Absent

RECEIVED
CHIEF CLERKS OFFICE

MAR 25 2026

Representative Carter
Representative Cavero

Vote

6-2-0-4
8-0-0-4
6-2-0-4
8-0-0-4
7-1-0-4
7-3-0-2
8-2-0-2
9-0-0-3
9-0-1-2
8-0-2-2
7-3-0-2
6-3-0-3

Attachments
4,5,6

7,8,9
1O11,12
13,14,15
16,17
18,19,20
21,22,23,24
25,26,27
28,29,30
3132,33
34,35

36,37

Mts. DAery-

Abby Selvey, Committe? Secretary

March 25, 2026

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

COMMITTEE ON COMMERCE
March 24, 2026
*corrected* Adjen . ol pr
REVISED #3 - 3/24/26 REVISED #3 - 3/24/26 REVISED #3 - 3/24/26

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - Second Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 24, 2026 ROOM HHR5 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=202603 1111

Members:
Representative Aguilar Representative Diaz Representative Willoughby
Representative Blackman Representative Hendrix Representative Wilmeth
Representative Carter N Representative Villegas Representative Way, Vice-Chairman
Representative Cavero Representative Volk Representative Weninger, Chairman
Representative-Connelly
Bills Short Title Strike Everything Title
# study-conmitice: serap-metalthert
——— (Gowan)
COM-aw/d APPROP-RULES

SB1206 p PA storm related insurance claims(now: storm related

insurance claims; adjusters)

(Carroll)
8-0-0-4. COM, RULES

*SB1254 real property conveyances; formal requirements __S/E: industrial commission; revisions
DPA SJe (Mesnard)

g 4 COM held 0-0-0-0-0, RULES
-0-0- ne

SB1290 agricultural property; inspections; notice. S/E: open meetings; planned communities
DF A | (Shamp) S/E: price tags; unfair pricing; penalties

COM, RULES
$-2-02

SB1421 D Pp undocumented aliens; financial services S/E: tax deed; sale; affordable housing
——— (Rogers: Finchem)

COM, RULES
G-2-0-Y

Page 1 of 2 ATTACHMENT |
*corrected*
Bills Short Title Strike Everything Title

central bank digital currency; ban S/E: data centers; tax relief; repeal

SB1432
_DP_ (Hoffman)
< 2 “p52 COM, RULES

SBI515 industrial commission; revisions S/E: public safety parity fund
DPASIE (Dunn)

“ yf COM, RULES

SB1563 barbering and cosmetology board; continuation
_DP (Dunn)

1 ] y COM, RULES
- O-
marijuana producers; licensure

SB1641
LE
1-3-9-2 COM: RULES

SB1649 digital assets strategic reserve fund
DP (Finchem)

1-2 0-72. COM, RULES

SB1670 p municipalities; counties; occupation; licensure; S/E: rental price fixing; algorithmic pricing
D prohibition

(Bolick)
~O*3 COM, RULES

S/E: employers; list; welfare recipients;
commission

continuation
(Bolick)

F-0-!-2 com, RULES

SB1747 S social media; online content; minors. S/E: social media; minors; fund
DPA SIE ewoiiciy

COM, RULES
$:0-2-2

SB1671 C PL gaming; racing; boxing; conflict-of-interest

+ On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

RA
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RA
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03482026

03/20/2026
03/24/2026

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 2 of 2
Information Registered on the Request to Speak System

House Commerce (3/24/2026)

SB1206, storm related insurance claims (NOW: storm related
insurance claims; adjusters)

Testified in support:
Don Isaacson, STATE FARM INSURANCE COMPANIES

Support:
Marie Isaacson, STATE FARM INSURANCE COMPANIES; Mackenzie Shane, GREATER PHOENIX CHAMBER OF

COMMERCE

Neutral:
Fausto Burruel, AZ DEPT. OF INSURANCE AND FINANCIAL INSTITUTIONS

SB1254, real property conveyances; formal requirements

Testified in support:
Charles Carpenter, INDUSTRIAL COMMISSION OF AZ

Support:
Kevin McCarthy, ARIZONA TAX RESEARCH ASSOCIATION (ATRA); Christian Bearden, ARIZONA STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL; Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE

All Comments:
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE: Supportive of S/E amendment pertaining to
industrial commission

SB1290, agricultural property; inspections; notice.

Testified in support:
David Winstanley, representing self; Dennis J Legere, ARIZONA HOMEOWNERS COALITION

Testified as opposed:
Alexis Glascock, COMMUNITY ASSOCIATIONS INSTITUTE; lori percival, representing self

All Comments:

David Winstanley, Self: Support strike sverything; Dennis J Legere, ARIZONA HOMEOWNERS COALITION: In support
of the N. Carter striker. This two-word clarification will end the unlawful interpretation of the law by HOA

ATTACHMENT 2
attorneys and Community managers, and reflects no change in the existing law as supported by the policy
statement in the statute.; lori percival, Self: Opposed to the Strike Everything amendment in Rep. Carter's name.

SB1421, undocumented aliens; financial services

Testified as opposed:
Joseph Palomino, THE ARIZONA CENTER FOR ECONOMIC PROGRESS

Support:

Michael Racy, Lobbyist, PIMA COUNTY; Shirley Dye, representing self; Shirley Lamonna, representing self; Corinne
Haynes, representing self; Buffalo Rick Galeener, representing self; Susan Bolt, representing self; John Oliver,
representing self; Melanie Hutchings, representing self; James McFadzean, representing self; Charlyce Knight,
representing self; J Holmes, representing self; Starr Costa, representing self; Peter Asencio, representing self; Gary
Zimmerman, representing self; Ryan Larson, representing self; Valerie Starr, representing self; Patti Carlson,
representing self; Jeri McDaniel, representing self

Oppose:

Katherine Warren, representing self; Vivian Serafin, representing self; Bridgette Luna Granillo, representing self;
Dave Long, representing self; Jaime Molera, JPMORGAN CHASE HOLDINGS LLC; Steven Linder, representing self;
Dawn Tripp, representing self; Maria Salvucci, representing self; Beverly Janowitz-Price, representing self; Jeanne
Casteen, representing self; Laurie Stoff, representing self; Alisa McMahon, representing self; Michael Fiflis,
representing self; Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Donita Ramos,
representing self; Adena Bank, representing self; Kathryn Kaczmarek, representing self; Katherine Doman Sheydayi,
representing self; Elizabeth Schauer, representing self; Charlie Silver, representing self; Becky Sayler, representing
self; Brent Gibbs, representing self; Dee Romesburg, representing self; Anna Arnold, representing self; Kathleen
Woessner, representing self; Linda Edwards, representing self; Jo Ann Caruthers, representing self; Linda Paul,
representing self; Libby Stortz, representing self; ALICE BUCK, representing self; Kathleen Dubbs, representing self;
Carly Mahlmeister, representing self; Pamela Chittenden, representing self; Devon Sloan, representing self; Susan
Heck, representing self; Barbara Larson, representing self; Mary Nelson, representing self; Cassandra Morano,
representing self; Nelson Morgan, representing self; Jessie Kline Loganbill, representing self; Jennifer Dawson,
representing self; Barbara Lynn Carpenter, representing self; Alex Johnson, representing self; Rivko Knox,
representing self; Marilyn Murov, representing self; Carolyn Shafer, representing self; Joseph Alexander,
representing self; Christopher Cerrato, representing self; George Ehrlich, representing self; Margaret Tinsley,
representing self; Patricia Brunner, representing self; Leonora Midgley, representing self; Janet Kerby, representing
self; Rebecca Haynes, representing self; Nancy Hancock, representing self; Jerrold Borchardt, representing self;
Christa Trexler, representing self; Janie Smieszek, representing self; Patricia Edelen, representing self; Carol
Garnett, representing self; Kristina Hakanson, representing self; Lisa Maczura, representing self; Cynthia
Stubenrauch, representing self; Terri Farneti, representing self; Marcia Tingley, representing self; Margaret DeVries,
representing self; Gayle Meredith, representing self; Ralph Meredith, representing self; Mary-Jeanne Fincher,
representing self; Christine Keitges, representing self; Sharon Arnst, representing self; Cynthia Wagner,
representing self; Paula Van Derven, representing self; Valarie Bryant, representing self; Greg Olszta, representing
self; Dieter Knecht, representing self; Pam Spicer, representing self; Shana Tevlin, representing self; Bart James,
representing self; Allison Jackson, representing self; William Bowlus-Root, representing self; Margie Gomez,
representing self; Louisa Pedraza, representing self; Barbara Jones, representing self; RITA DEPUYDT, representing
self; Jeannette Scoufos, representing self; Charlotte Lis, representing self; Jane Jackson, representing self; Susan
Bowen, representing self; Kathryn Avila Hammond, representing self; Karen Brown, representing self; Aaron Essif,
representing self; Kat Ginzel, representing self; Vera Markgraf, representing self; Traci Garcia, representing self;
Denise Hudson, representing self; Sundrop Carter, representing self; Roxanna Kearns, representing self; Amy
Gaiennie, representing self; Allen Brown, representing self; JoAnn McCay, representing self; Kathryn Dorn,
representing self; Sally Evans, representing self; Kathryn Anderson, representing self; Angela Buer, representing
self; Linda Block, representing self; Dianna DiMaggio, representing self; Marilyn Rodriguez, COUNCIL ON
AMERICAN-ISLAMIC RELATIONS ARIZONA (CAIR-AZ); Roy L Carrington Jr., representing self; Alexandria Mendoza,
Arizona Financial Choice Association; Joyce Schmidt, representing self; Susan Parson, representing self; Alison
Danis, representing self

All Comments:

Michael Racy, PIMA COUNTY: Support Villegas amendment.; Shirley Dye, Self: Another deterrent for illegals, if they
cannot get loans they should not be living here. Hopefully "Dreamers" who have grown up here and gone all
through school here are an exception.; Shirley Lamonna, Self: We need to stop providing services to those who are
not here legally.; Corinne Haynes, Self: ILLEGALS are ILLEGAL; James McFadzean, Self: Lawfully present aliens are
welcome to do business here. Others are not.; J Holmes, Self: Lawfully present aliens are welcome to do business
here. Others are not.; Gary Zimmerman, Self: Doing business with immigrants is fine, but not doing business with
illegal/undocumented immigrants.; Katherine Warren, Self: This punitive, mean-spirited bill is intended to drive
undocumented immigrants out of our state, in willful ignorance of studies showing that they contribute $704
million in taxes to Arizona's economy for services they cannot access.; Vivian Serafin, Self: SB1421 is an egregious
bill that will turn banks into ICE checkpoints. Vote NO.; Bridgette Luna Granillo, Self: Vote no.; Laurie Stoff, Self:
This ignores studies showing that migrants contribute $704 mil in taxes to Arizona's economy for services they
cannot access. Only 5% of Arizona's workforce is undocumented, but they do a lot; without them, Arizona's
economy will suffer & prices rise; Alisa McMahon, Self: Piecemeal approaches such as this would harm more than
help AZ’s economy, including the pocketbooks of lawful residents. The answer is real and comprehensive
immigration reform at the federal level.; Michael Fiflis, Self: Cutting off the commerce undocumented aliens
produce in AZ would adversely impact our economy (to the tune of hundreds of millions of dollars). It would create
local inflation and decreased revenue. We should not cut off our nose despite our face.; Adena Bank, Self: This
punitive, mean-spirited bill is intended to drive undocumented immigrants out of our state, in willful ignorance of
studies showing that they contribute $704 million in taxes to Arizona's economy for services they cannot access.;
Kathryn Kaczmarek, Self: Another punitive bill directed at our immigrant community who greatly contributes to our
AZ economy. They contribute $704 million in taxes annually. If | know this statistic, why doesn’t the sponsor of
this bill?; Linda Edwards, Self: | recall that immigrants pay a lot of taxes, so no.; Linda Paul, Self: This is crazy! Do
we need a passport to cash a check now?; Kathleen Dubbs, Self: So the sponsor wants to give up $704 million in
taxes that undocumented people pay into state coffers?; Carly Mahlmeister, Self: Only 5% of Arizona's workforce
is undocumented, but that tiny portion does a lot and without them, AZ's economy wills suffer and prices will
continue to go up. The hatred shines though on all R bills.; Susan Heck, Self: This is a mean, vindictive bill. My
grandparents came to US from Germany and worked very hard in their farm. Immigrants were needed and
appreciated at that time. How can you be so unfair and un-Christian to people that pay taxes here?; Jennifer
Dawson, Self: punitive, mean-spirited bill is intended to drive undocumented immigrants out of our state, in willful
ignorance of studies showing that they contribute $704 million in taxes to Arizona's economy for services they
cannot access.; Marilyn Murov, Self: Studies show undocumented immigrants contribute $704 million in taxes to
AZ and are unable to access many of the services this funds. Without these workers, our economy will suffer and
prices will go up.; Margaret Tinsley, Self: Pretty clearly theft by government, to the detriment of the state of
Arizona. Immigration law needs reform. to be sure, but this punitive act is not it. Please vote NO; Rebecca Haynes,
Self: This punitive, mean-spirited bill is intended to drive undocumented immigrants out of our state, in willful
ignorance of studies showing that they contribute $704 million in taxes to Arizona's economy for services they
cannot access. Mean and dumb.; Jerrold Borchardt, Self: Undocumented immigrants contribute over $700 million
in taxes to Arizona's economy for services they cannot even access. Without them, Arizona's economy will suffer
and prices will go up, especially on food, housing and services.; Christa Trexler, Self: Only 5% of Arizona's workforce
is undocumented, but that tiny proportion does a lot; without them, Arizona's economy will suffer and prices will
go up, especially on food, housing and services.; Janie Smieszek, Self: Banning the undocumented from using
banking is strict and cruel, especially when they contribute so much to the state; Patricia Edelen, Self: Nice way to
drive out immigrants who contribute significant amounts to the Arizona economy. Nice to know the sponsor is
willing to raise the price of food and services for us when we lose these essential workers.; Carol Garnett, Self: Bad
for the economy. Millions in taxes contributed by undocumented noncriminals and they receive no services.; Lisa
Maczura, Self: Banks wouldn't like this.; Terri Farneti, Self: Only 5% of Arizona's workforce is undocumented, but
that tiny proportion does a lot; without them, Arizona's economy will suffer and prices will go up, especially on
food, housing and services.; Marcia Tingley, Self: This punitive bill is intended to drive undocumented immigrants
out of AZ, although they contribute $704 million in taxes to AZ for services they can’t access. The smali number of
undocumented workers here helps our economy; bill would hurt it.; Sharon Arnst, Self: Overreaching and
discriminatory; Valarie Bryant, Self: discriminatory; Greg Olszta, Self: would ban undocumented immigrants from
banking in Arizona, including cashing checks and sending wire transfers. Anyone who tried would have one-quarter
of their transfer monies snatched via civil penalties. Punitive and mean spirited.; Louisa Pedraza, Self: This bill is
punitive and mean-spirited. It would harm Arizona's economy and cause prices to go up, especially on food,
housing and services.; Susan Bowen, Self: THIS PUNITIVE MEANSPIRITED BILL IS INTENDED TO DRIVE
UNDOCUMENTED IMMIGRANT OUT OF AZ IN WILLFUL IGNORANCE OF STUDIES SHOWING THAT THEY
CONTRIBUTE $704 MILLION IN TAXES FOR SERVICES THEY CANNOT ACCESS. AZ'S ECONOMY WILL SUFFER AND
PRICE INCREASE.; Kathryn Avila Hammond, Self: This punitive, mean-spirited bill is intended to drive
undocumented immigrants out of our state, in willful ignorance of studies showing that they contribute $704
million in taxes to Arizona's economy for services they cannot access. OPPOSE; Karen Brown, Self: Undocumented
workers contribute far more than they consume. They should not be penalized for using banking services. They
could easily become documented if not for the deliberately obstructive and punitive immigration process.
OPPOSE.; Aaron Essif, Self: This is a punitive mean spirited bill, the undocumented have been shown to contribute
$704 million in taxes for services they cannot access.; Kat Ginzel, Self; UNDOCUMENTED IMMIGRANTS
CONTRIBUTE $704 M TO AZ. THIS CRUEL BILL IS TO KEEP THEM OUT OF OUR STATE. THEREFORE EVERYONE
LOSES!; Roxanna Kearns, Self: Only 5% of Arizona's workforce is undocumented, but that tiny proportion does a
lot; without them, Arizona's economy will suffer and prices will go up, especially on food, housing and services.;
Amy Gaiennie, Self: | strongly oppose this bill!; Allen Brown, Self: | oppose SB1421. This bill is a ridiculous waste of
time. How will it be enforced? Will everyone need to show a passport to transact at a bank? What's next? Having
to show ID before anyone can buy groceries or gas?; Kathryn Dorn, Self: | think our state has more than enough
weaponized xenophobia (and consequently self-inflicted financial harm) to deal with already, thank you very much.
Please throw this bill straight into a garbage incinerator.; Angela Buer, Self: This bill targets a workforce that
contributes $704 million in taxes to Arizona. Seizing 25% of transfers and blocking banking will skyrocket costs for
food and housing while devastating our local economy. We should value contributors. | OPPOSE; Alison Danis, Self:
This bill is another example of how legislators can stuff agendas and waste taxpayer time and dollars with frivolous
bills that deny services to those who cannot present citizenship papers. Even visitors to this state could get caught
up in this.Nay!
$B1432, central bank digital currency; ban

Support:
Sherry Massie, representing self; Linda Paul, representing self; Michael Racy, Lobbyist, PIMA COUNTY

Neutral:
Alisa McMahon, representing self; Michael Fiflis, representing self; Kathryn Dorn, representing self

Oppose:

Alex Logvin, representing self

All Comments:

Linda Paul, Self: | approve the striker.; Alex Logvin, Self: This is unnecessary, this is not a state issue.; Alisa
McMahon, Self: Support the striker to repeal tax breaks for data centers.; Michael Fiflis, Self: Oppose original bill
and support the Striker.; Kathryn Dorn, Self: | strongly support Rep. Volk's strike-everything amendment - yes,
please repeal the wildly unnecessary, expensive, and harmful data-center tax break!

S$B1515, industrial commission; revisions

Testified in support:
Jeff Hawkins, ARIZONA STATE TROOPERS ASSOCIATION; Brian Tassinari, Arizona Police Association

Support:
Charles Carpenter, INDUSTRIAL COMMISSION OF AZ; Barry M. Aarons, AZ ASSN OF LAWYERS FOR INJURED
WORKERS

All Comments:
Jeff Hawkins, ARIZONA STATE TROOPERS ASSOCIATION: In favor of the strike everything amendment in
Representative Weninger's name.

SB1563, barbering and cosmetology board; continuation

Testified in support:
Frank Migali, ARIZONA BARBERING & COSMETOLOGY BOARD

SB1641, marijuana producers; licensure

Testified in support:

Jon Udell, representing self
Support:

Timothy Sparling, ARIZONA NORML; Nick Simonetta, ARIZONA RURAL OPPORTUNITY ALLIANCE; Shirley Dye,
representing self; Craig McDermott, representing self; Ruth Carter, representing self; Valerie Starr, representing
self; Alex Logvin, representing self

Oppose:

Kathryn Senseman, AZ Dispensaries Assiciation; Priscilla Moore, representing self; Michael O'Brien, representing
self; Jeremy Gerlach, STORY CANNABIS COMPANY; Shirley Lamonna, representing self; Stephen Harris,
representing self; Corinne Haynes, representing self; Buffalo Rick Galeener, representing self; Susan Bolt,
representing self; Bridget Nelke, representing self; Melanie Hutchings, representing self; James McFadzean,
representing self; Charlyce Knight, representing self; Helen Hebert, representing self; J Holmes, representing self;
Starr Costa, representing self; Bev Miller, representing self; Gary Zimmerman, representing self; Ryan Larson,
representing self; Jeri McDaniel, representing self; Douglas Cole, COPPERSTATE FARMS; Pele Fischer, MOHAVE
CANNABIS COMPANY

All Comments:

Timothy Sparling, ARIZONA NORML: Arizona NORML supports this legislation.; Shirley Dye, Self: We do not need
any more marijuana producers license to do business to provide dispensaries with a product which is taking away
the ambition of many young and old a like, and causing bad side effects according to statistics.; Alex Logvin, Self: |
support this bill because small businesses should be able to produce marijuana products without having to share a
license with a dispensary.; Priscilla Moore, Self: Granting more marijuana licenses will greatly harm our state - our
youth, weaken our workforce, crime, hurt families (parental neglect, illness) cause more car accidents. This bill
claims to help small businesses, but it damages society as a whole.; Shirley Lamonna, Self: Absolutely not! Dangers
of cannabis are emerging daily.; Corinne Haynes, Self: More dangers with cannabis keep surfacing.; Bridget Nelke,
Self: | DO NOT AGREE WITH THIS BILL we don' t need to expand licenses or soften oversight NO TO THIS; James
McFadzean, Self: Bad bill all the way around.; Helen Hebert, Self: NO there are already to many marijuana facilities
and we do not need to expand particularly with less rules and regs. Marijuana needs more res not less.; Starr
Costa, Self: Arizona should not be expanding production of and access to marijuana, especially now that
widespread new research is emerging on the dangers of cannabis, even in the name of (under the guise of) helping
small business and government deregulation.; Gary Zimmerman, Self: We have more than enough marijuana
suppliers in AZ. The drug is proving more dangerous with additional research. We should not be encouraging it's
recreational use.

SB1649, digital assets strategic reserve fund

Testified in support:
Stuart Goodman, RIPPLE LABS

S$B1670, municipalities; counties; occupation; licensure; prohibition

Support:

Cathy Schwanke, representing self; C D Tavares, representing self; Jeanne Tavares, representing self; Ute Edge,
representing self; Linda Jorgensen, representing self; Susan Bolt, representing self; William & Mary Jurica,
representing self; Debbie Joy, representing self; Carole Challoner, representing self; Linda Barnes, representing
self; April Smith, representing self; Christi Sourk, representing self; Frank Jorgensen, representing self; Cherie
Anello, representing self; Peter Anello, representing self; Terry Speiran, representing self; Lorraine S, representing
self; J Holmes, representing self; Peter Asencio, representing self; Donna Booth, representing self; Jean Rice,
representing self; louise liggett, representing self; karen enns, representing self; Jane Breakiron, representing self;
Cindy Cragin, representing self; Roy Scott Lassell, representing self; patricia wheeler, representing self; brenda
simon, representing self; Douglas Simon, representing self; Kathryn Clark, representing self; Joelene Williamson,
representing self; joel strabala, representing self; conrad tolson, representing self; Brent Michelson, representing
self; Kyrna Ball, representing self; Cheryl Pardini, representing self; Beth Pojman, representing self; Barbara Scott,
representing self; Ronald Pardini, representing self; Lynda Brady, representing self; Vickie Parks, representing self;
Renee Yarbrough, representing self; LEE YARBROUGH, representing self; Ann Brownell, representing self; Michael
Racy, Lobbyist, PIMA COUNTY

All Comments:

April Smith, Self: Please support this bill; J Holmes, Self: No more unnecessary regulations; karen enns, Self: State
licensing occupations is sufficient. Municipalities and counties doing the same would just add unnecessary
burdens and costs to those affected.; Roy Scott Lassell, Self: | fully support this bill. It makes sense and works for AZ
citizens.; patricia wheeler, Self: We don't need extra occupational licenses locally if someone already has a state
license.; Kathryn Clark, Self: Please protect workers in occupations requiring licenses from excessive, redundant
requirements. Vote YES. Thank you.; Joelene Williamson, Self: | support. A state license should be enough without
having to deal with localities, makes no sense for additional requirements coming with a new job in a different city
within the state; joel strabala, Self: | support legislation that prohibits local governments from regulating jobs that
are subject to licensure by the state.; conrad tolson, Self: Local governments should not impose more
requirements than those already set by the state.; Barbara Scott, Self: Support; Lynda Brady, Self: Why are we
spending time and $$ regulating jobs that normal, everyday people have already done their due diligence and
gotten their license?; Ann Brownell, Self: | am a PC in Peoria

SB1671, gaming; racing; boxing; conflict-of-interest continuation

Testified in support:

Jessica Roza, Arizona Department Of Gaming

Support:
Wendy Briggs, TOHONO O'ODHAM NATION; Jennifer Harris, TOHONO O'ODHAM NATION

SB1747, social media; online content; minors.

Testified as neutral:
Kelsey Lundy, MOTION PICTURE ASSOCIATION, INC.

Testified as opposed:
Jeanne Woodbury, AMERICAN CIVIL LIBERTIES UNION OF AZ (ACLU-AZ); Jose Torres, TECHNOLOGY NETWORK AKA

TECHNET
Oppose:

Ruth Carter, representing self; James Roth, representing self

All Comments:
James Roth, Self: Overbroad and over reaching; Kelsey Lundy, MOTION PICTURE ASSOCIATION, INC.: Opposed to

strike everything amendment
COMPLETE FORM FOR PUBLIC RECORD

STATE OF ARIZONA
HOUSE OF REPRESENTATIVES

REQUEST TO SPEAK
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Address: 20/7 Vv. ae St City/State: Ch» LAL Zip Code: ESO 6

Email Address: Open Ae L & ah 8 il, COM Phone Number: 6Or 3 26 Z 5S 7
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*SPEAKING TIME DETERMINED BY THE CHAIRMAN*
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON

COMMERCE

CHAIRMAN: Jeff Weninger

VICE-CHAIRMAN: _ Michael Way

Way, Vice-Chairman

DATE 03/24/26
CONVENED 7 1s pew
RECESSED
RECONVENED
ADJOURNED Sirol YY)
MEMBERS PRESENT : NOT PRESENT
Aguilar V4
Blackman Kf
Carter N a
Cavero ad
Diaz i
Hendrix WA
Villegas re
Volk we
Willoughby if
Wilmeth a
ral
vail

Weninger, Chairman

TOTAL |Z

ATTACHMENT 3
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: MABS DP 4-3-0-0 | Third Read 16-12-2-0-0

SB1421: undocumented aliens; financial services
Sponsor: Senator Rogers, LD 7
Committee on Commerce

Overview

Establishes prohibitions for financial institutions, check cashers and business entities
regarding the acceptance of specific licenses or identification cards from unauthorized aliens
or undocumented immigrants.

History
The Arizona Department of Insurance and Financial Institutions (DIFI) ensures public

confidence by protecting the interest of depositors, borrowers and consumers through the
enforcement of state laws. DIFI has the authority to adopt rules, investigate consumer
complaints related to financial services and enforce compliance requirements for financial
institutions and business entities through verification and reporting protocols.

At the federal level, the Internal Revenue Service (IRS) administers and enforces federal tax
laws. The IRS issues individual taxpayer identification numbers (ITINs) to individuals who
are required to have a U.S. taxpayer identification number but are ineligible for a Social
Security Number (SSN). Federal regulations clarify that an ITIN is a tax processing number
issued solely for federal tax reporting and compliance. An ITIN does not refer to a SSN or an
account number for use in employment for wages (26 C.F.R § 301.6109-1).

A remittance transfer is the transfer of funds requested by a sender located in any state to a
designated recipient that is initiated by a remittance transfer provider, whether or not the
sender holds an account with the remittance transfer provider or whether or not the
remittance transfer is also an electronic fund transfer (15 U.S.C. § 16930-1).

Provisions
Forms of Identification
1. Prohibits a financial institution from accepting, as a form of identification for opening any
account, safe deposit box or receiving services, a license or identification card that is:
a. issued exclusively to an unauthorized alien or undocumented immigrant; or
b. substantially similar to a license or identification card issued to a U.S. citizen or
resident or an individual who is lawfully present in the U. S. but that has markings
indicating that the license or card holder did not present proof of lawful presence in
the U.S. (Sec. 1)

2. Deems making a loan to an individual, for loan applications that allow the use of an ITIN
as a method of identifying the loan recipient, unlawful. (Sec. 2)

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

Initials PB/ZE ; SB 1421
3/18/2026 Page 1 Commerce

ATTACHMENT 4
3. Allows a lender, after executing a lawful loan agreement, to request the borrower's ITIN
if the borrower is ineligible to receive an SSN. (Sec. 2)

4, Prohibits a check casher from accepting, as a form of identification, a license or
identification card that is:
a. issued exclusively to an unauthorized alien or undocumented immigrant; or
b. substantially similar to a license or identification card issued to a U.S. citizen or
resident or an individual who is lawfully present in the U.S. but that has markings
indicating that the license or card holder did not present proof of lawful presence in
the U.S. (Sec. 3)

Foreign Remittances of Monies
5. Prescribes requirements for business entities authorized to conduct foreign remittance
transfers from Arizona to another country on behalf on an individual, including:
a. prohibiting the transfer of monies unless the individual provides documentary proof
that the individual is not an unauthorized alien; and
b. requiring businesses to provide monthly confirmation to DIFI of individuals who
provided the required documentation. (Sec. 4)

6. Directs DIFI to adopt rules for foreign remittance transfers, including specifying which
forms of documentation are acceptable to verify an individual is not an unauthorized
alien. (Sec. 4)

7. Authorizes DIFI to request records from a business entity at any time to verify the
individual who requested the foreign remittance transfer was not an unauthorized alien.
(Sec. 4)

8. Allows any person who in good faith believes a business entity is violating foreign
remittance regulations to file a complaint with DIFI. (Sec. 4)

9. Mandates DIFI, on receipt of a valid complaint that is substantiated by evidence, to notify
the business entity of the complaint and the substantiated evidence. (Sec. 4)

10. Requires the business entity to pay the assessed civil penalty. (Sec. 4)

11. Requires DIFI to:
a. conduct random quarterly audits of business entities, beginning July 1, 2027, to
ensure compliance of foreign remittance regulations; and
b. impose a civil penalty against a business entity for violations equal to 25% of the total
transfer amount, excluding any fees or charges. (Sec. 4)

12. Defines pertinent terms. (Sec.4)

Initials PB/ZE SB 1421
3/18/2026 Page 2 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1421

OANA AHP WNM FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1421
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 42-18303, Arizona Revised Statutes, is amended
to read:

42-18303. Auction and sale of land held by state under tax

deed; disposition of proceeds

A. After advertisement, pursuant to section 42-18302, the board of
supervisors may sell the real property in the county held by the state by
tax deed to the highest bidder for cash except as provided in subsections
E, F and G of this section. The property may also be posted on the
treasurer's website. The sale may include a live auction or an online
bidding process in which the board receives bids electronically over the
internet in a real-time, competitive bidding event.

B. On selling the property, the board of supervisors shall execute
and deliver to the purchaser, at the purchaser's cost, a deed conveying
the title of the state in and to the parcel purchased. The deed shall be
acknowledged by the chairman and clerk of the board.

C. The purchase money shall be paid to the county treasurer. After
deducting and distributing interest, penalties, fees and costs charged
against the parcel, the treasurer shall apportion monies to the funds of
the various taxing authorities in proportion to their current share of the
taxes charged against real property. Any balance remaining with the
treasurer after payment of the taxes, interest, penalties, fees and costs
shall be paid to the owner of the property who was dispossessed by the
sale.

D. If the property is not sold before the time for the next
succeeding notice of sale, the board of supervisors may omit it from the
notice.

E. The board of supervisors may accept an offer from, and sell real
property held by this state by tax deed to, the county or a city, town or
special taxing district in the county for a public purpose retetet—to,
INCLUDING AFFORDABLE HOUSING FOR LOW-INCOME PERSONS AND FAMILIES PURSUANT
TO SECTION 11-251.10, transportation or flood control. The board of
supervisors shall convey the deed and apportion the monies received in the
transaction in the manner prescribed by this section. IF A COUNTY, CITY,
TOWN OR SPECIAL TAXING DISTRICT ACQUIRES REAL PROPERTY PURSUANT TO THIS
SUBSECTION FOR AFFORDABLE HOUSING PURPOSES AUTHORIZED BY SECTION 11-251.10
AND DETERMINES THE USE IS IN ITS BEST INTEREST, THE COUNTY, CITY, TOWN OR
SPECIAL TAXING DISTRICT MAY SELL, LEASE, EXCHANGE, QUITCLAIM, CONVEY OR
OTHERWISE DISPOSE OF THE REAL PROPERTY OR AN INTEREST IN THE REAL PROPERTY
FOR LESS THAN FAIR MARKET VALUE AND WITHOUT A PUBLIC AUCTION TO PROVIDE
AFFORDABLE HOUSING, IN COMPLIANCE WITH SECTION 11-251.10. A REGULATORY
AGREEMENT SHALL BE RECORDED IN THE OFFICE OF THE COUNTY RECORDER IN WHICH
THE PROPERTY IS LOCATED THAT CONTAINS COVENANTS AND CONDITIONS REQUIRING
THE DWELLING UNITS TO REMAIN CONTINUALLY AFFORDABLE TO LOW-INCOME PERSONS
AND FAMILIES FOR THE LONGEST FEASIBLE TIME, BUT NOT LESS THAN THIRTY

ATTACHMENT S

House Amendments to S.B. 1421

YEARS. FOR THE PURPOSES OF THIS SUBSECTION, “AFFORDABLE HOUSING FOR
LOW-INCOME PERSONS AND FAMILIES” HAS THE SAME MEANING PRESCRIBED IN
SECTION 11-251.10.

F. The board of supervisors may sell real property in the county
held by the state by tax deed to the owner of contiguous real property
that is used for commercial, agricultural or residential purposes, and the
board may accept an offer by the contiguous owner to purchase the
property, if all of the following conditions apply:

9 1. Both the property offered for sale and the contiguous property
10 were at one time under common ownership. If there is more than one
11 contiguous property owner offering to purchase the property, the board
12 shall accept the offer from the contiguous property owner’ that
13 demonstrates that the owner's contiguous property was most recently under
14 common ownership with the property offered for sale.

15 2. The property offered for sale cannot be separately used for
16 commercial, agricultural or residential purposes, as applicable, pursuant
17 to applicable building codes and ordinances of the jurisdiction in which
18 the property is located due to its size or configuration.

19 3. The contiguous property owner agrees to submit a request to the
20 county assessor to jointly assess the contiguous properties pursuant to
21 section 42-15058.

22 G. The board of supervisors may sell real property in the county
23 held by the state by tax deed to a homeowners" association if the real
24 property is part of a common area maintained by the _ homeowners'
25 association as determined by the county assessor.

26 H. If an offer under subsection £, F or G@ of this section is
27 pending at the time of the auction under this section, the board of
28 supervisors shall remove the property from the auction.

29 I. The board of supervisors may establish procedures for accepting
30 monetary offers and sell real property in the county held by the state by
31 tax deed over the counter if the real property is not eligible for sale
32 under subsection E, F or G@ of this section and was offered for sale and
33 not sold at the auction held pursuant to subsection a of this section.

34 J. The board of supervisors may establish procedures for accepting
35 monetary offers under subsection f of this section."

36 Amend title to conform

ONO WD FE

BETTY J. VILLEGAS

1421VILLEGAS SE.docx
03/20/2026

02:07 PM

H: NL/ra

130XRLTXC
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE

March 24, 2026

SB 1421

motion: [) P

PASS

NAY

PRESENT

ABSENT

Aguilar

Blackman

‘

Carter N

Cavero

i
va

Diaz

Hendrix

AN

Villegas

Volk

Willoughby

\\

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

SQ Zine, —_—

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

DIVAN

2

O

My,

pricy _—

COMMITTEE SECRETARY

ATTACHMENT. 6

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: FIN DP 6-0-1-0 | Third Reading 27-0-3-0-0

SB 1254: real property conveyances; formal requirements
S/E: industrial commission; revisions
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1254

Overview
Makes various revisions to statutes governing the Industrial Commission of Arizona
regulations.

History
The Industrial Commission of Arizona (ICA) is responsible for enforcing labor laws, ensuring

workplace safety and administering worker's compensation in Arizona. Additionally, the ICA
has the power to conduct workplace investigations, collect labor statistics and protect the
financial privacy of self-insured entities. The ICA is also authorized to license and supervise
the work of private employment offices, bring together employers seeking employees and
working people seeking employment and make known the opportunities for employment in
the state (A.R.S. § 23-107).

The Arizona Division of Occupational Safety and Health (ADOSH) is established within the
ICA and, on behalf of the ICA: 1) recommends all standards, rules or changes to the standards
or rules to the ICA; 2) has the authority to enforce all ICA-adopted standards or rules; 3)
implements an occupational safety and health program that includes outlined duties and
responsibilities, such as providing consultation training services to employers and employees
and conducts inspections of workplaces; and 4) administers the requirements for safety
conditions for boilers and safety conditions for elevators and conveyances. The ICA appoints
a director as the administrative head of the ADOSH under the control of the ICA (Title 23,
Chapter 2, A.R.S.).

Provisions

Industrial Commission of Arizona

1. Removes the ICAs authority to:
a. license and supervise the work of private employment offices;
b. bring together employers seeking employees and working people seeking employment;
and
c. make known the opportunities for employment in the State. (Sec. 1)

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

Initials PB SB 1254
3/22/2026 Page 1 Commerce

ATTACHMENT 7
Transfers and clarifies certain responsibilities of an employed ombudsman to a resource
officer. (Sec. 2)

Adds that the resource officer may provide information about the labor programs un the
ICA's purview and rules governing the ICA proceedings for related matters. (Sec. 2)

Instructs the ICA to post the schedule of fees for workers’ compensation on its website
and prepare and file a notice of public information with the website address to be
published in the Arizona Administrative Register. (Sec. 25)

Division of Occupational Safety and Health

5. Renames the ADOSH Director as the ADOSH Chief (See. 3)

Replace statutory references of director with chief. (Sec. 3-14)

Boiler Division

7. Defines chief as the chief of the boiler division of the ICA. Gec. 15)

Redefines division as the boiler division of the ICA. (Sec. 15)

9. Removes the definition of director. (Sec. 15)

10,

11.

12.
13.
14.
15.

16.

17.
18.

Requires the ICA to administer boiler safety regulations through the boiler division,
rather than through the ADOSH. (Sec. 16)

Replace statutory references of director with chief. (Sec. 17, 18)
Elevator Division

Defines chief as the chief of the elevator division of the ICA. (Sec. 19)

Redefines division as the elevator division of the ICA. (ec. 19)

Removes the definition of director. (Sec. 19)

Requires the ICA to administer elevator safety regulations through the elevator division
rather than through ADOSH. (Sec. 21)

Replaces statutory references of director with chief. (Gec. 20, 22, 23)
Miscellaneous

Modifies pertinent terms. Gec. 3, 15, 19)

Makes technical changes. (Sec. 1-24)

Initials PB SB 1254
3/22/2026 Page 2 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1254

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1254
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 23-107, Arizona Revised Statutes, is amended to
read:

23-107. General powers

A. The commission has full power, jurisdiction and authority to:

1. Formulate and adopt rules and regulations for effecting the
purposes of this article.

2. Administer and enforce all laws for the protection of life,
9 health, safety and welfare of employees in every case and under every law
10 when such duty is not specifically delegated to any other board or
11 officer, and, when such duty is specifically delegated, to counsel, advise
12 and assist in the administration and enforcement of such laws and for such
13 purposes may conduct investigations.
14 3. Promote the voluntary arbitration, mediation and conciliation of
15 disputes between employers and employees.
16 4.—ticerse—amt— supervise tte _work—_of—private—emptoyment—otffites;
17 primo—togetter—enmptoyers—seeking—emptoyees—and—working—_peopte seeking
18 emptoyment,—amdmeke—krown_tte—opportunrtttes—for—emptoyment—ittte—state;

19 Sy 4. Collect, collate and publish all statistical and other
20 information relating to employees, employers, employments and places of
21 employment with other appropriate statistics.

22 6> 5. Act as the regulatory agency rsurmrg ENSURING that workers'
23 compensation carriers are processing claims in accordance with chapter 6
24 of this title.

25 7> 6. Provide nonpublic, confidential or privileged documents,
26 materials or other information to another state, local or _ federal
27 regulatory agency for the purpose of the legitimate administrative needs
28 of the programs administered by that agency if the recipient agency agrees
29 and warrants that it has the authority to maintain and will maintain the
30 confidentiality and privileged status of the documents, materials or other
31 information.

32 86> 7. Receive nonpublic documents, materials and other information
33 from another state, local or federal regulatory agency to properly
34 administer programs of the commission. The commission shall maintain as
35 confidential or privileged any document, material or other information
36 that is identified by the exchange agency as confidential or privileged
37 under the laws of the jurisdiction that is the source of the document,
38 material or other information.

ANAT HP WM FE

Adopted ’ H# of Verbals

—xiled Withdrawn

Not Offered Analysts Initials

ATTACHMENT %
House Amendments to S.B. 1254

ONAN H WDM FE

> 8. Enter into agreements that govern the exchange of nonpublic
documents, materials and other information that are consistent with
paragraphs 7~ 6 and @- 7 OF THIS SUBSECTION. The commission may request
nondisclosure of information that is identified as privileged or
confidential. Any disclosure pursuant to paragraph 7 6 or ®- 7 OF THIS
SUBSECTION or this paragraph is not a waiver of any applicable privilege
or claim of confidentiality in the documents, materials or _ other
information.

B. tpom ON petition by any person that any employment or place of
employment is not safe or is injurious to the welfare of any employee, the
commission has power and authority, with or without notice, to make
investigations necessary to determine the matter complained of.

C. The members of the commission may confer and meet with officers
of other states and officers of the United States on matters pertaining to
their official duties.

D. Notwithstanding any other law, the commission may protect from
public inspection the financial information that is received from a
private entity that applies to _ self-insure or that renews’ its
self-insurance plan pursuant to section 23-961, subsection A if the
information is kept confidential by the private entity in its ordinary and
regular course of business.

Sec. 2. Section 23-110, Arizona Revised Statutes, is amended to
read:

23-110. Industrial commission of Arizona resource officer

A. The director of the industrial commission OF ARIZONA shall
employ am—ombuttsmat A RESOURCE OFFICER to assist recipients of workers~

tompersattom benefits UNDER THE INDUSTRIAL COMMISSION OF ARIZONA'S
PURVIEW.

B. The ombucsmar RESOURCE OFFICER shall not provide legal advice
but may provide information about the workers' compensation system and
rules governing commission proceedings and may assist in clarifying the
methods used to determine a person's workers' compensation benefits.

C. THE RESOURCE OFFICER MAY ALSO PROVIDE INFORMATION ABOUT THE
LABOR PROGRAMS UNDER THE INDUSTRIAL COMMISSION OF ARIZONA'S PURVIEW AND
RULES GOVERNING THE COMMISSION PROCEEDINGS FOR THESE MATTERS.

Sec. 3. Section 23-401, Arizona Revised Statutes, is amended to

read:

23-401. Definitions

In this article, unless the context otherwise requires:

1. "Board" means a review board established pursuant to section
23-422.

2. “CHIEF” MEANS THE CHIEF OF THE DIVISION.

2> 3. "Commission" means the industrial commission of Arizona.

3 4. “De minimis violation" means a condition or practice that,
although undesirable, has no direct or immediate relationship to safety or

health.
j}-—_up — + + tH ——

5. "Division" means the division of occupational safety and health
within the commission.

-2-
House Amendments to S.B. 1254

ANA THR WDM FE

6. "Employee" means any person performing services for an employer,
including any person defined as an employee pursuant to section 23-901,
except employees engaged in household domestic labor.

7. "Employer":

(a) Means any individual or type of organization, including this
state and all political subdivisions of this state, that has in its employ
one or more individuals performing services for it in employment. acd

(b) Includes self-employed persons. >but

(c) Does not include employers of household domestic labor.

8. "Interested party" means the commission and the commission's
agents, the employer and the affected employees of such employer.

9. "Model system" means an exemplary and votuntary VOLUNTARILY
implemented worker safety and health management system that BOTH:

(a) Exceeds basic compliance with occupational safety and health
laws and regulations.

(b) Meets the requirements adopted by the division pursuant to
section 23-432.

10. "Nonm-sertous NONSERIOUS violation" means a condition or
practice in a place of employment that does not constitute a serious
violation but that violates a standard or regulation and has a direct or
immediate relationship to safety or health, unless the employer did not,
and could not with the exercise of reasonable diligence, know of the
presence of such condition or practice.

11. “Program” means the voluntary protection program or any other
program under which the wtirector CHIEF recognizes and partners with
workplaces that have implemented a model system.

12. "Recognized hazard" means an unsafe or unhealthful condition or
practice recognized as such with respect to the standard of knowledge in
the industry.

13. "Regulation" means any written regulation of occupational
safety and health governing places of employment formulated pursuant to
section 23-410, exclusive of standards, and shat?—tave HAS the same
meaning as and trretute INCLUDES the term "rule".

14. “Serious violation" means a condition or practice in a place of
employment that violates a standard, A regulation or section 23-403,
subsection A and produces a substantial probability that death or serious
physical harm could result, unless the employer did not, and could not
with the exercise of reasonable diligence, know of the presence of such
condition or practice.

15. "Standard" means any occupational safety and health standard
that has been adopted and promulgated by a nationally recognized
standards-producing organization or the federal government and strati—tave
HAS the same meaning as>— and tmehrde INCLUDES the term "code".

16. “Trade secret" means a plan or process, tool, mechanism, or
compound not patented, known only to its owner and those of the owner's
employees to whom it is necessary to confide it, or other information that
the employer treats as confidential and has a reasonable basis for doing
so.
House Amendments to S.B. 1254

ONO HP WDM FE

17. “Workplace” means a location or site wherein work, either
temporary or permanent, is being conducted in connection with an industry,
trade or business.

Sec. 4. Section 23-405, Arizona Revised Statutes, is amended to
read:

23-405. Duties and powers of the industrial commission

relative to occupational safety and health

The commission shall:

1. Administer the—provistorms—of this article through the division
of-occupattonatsafety—andteatth.

2. Appoint the ctirector CHIEF of the division wuf—occupattronat
safety—amtteattnh.

3. Cooperate with the federal government to establish and maintain
an occupational safety and health program as effective as the federal
occupational safety and health program.

4. Promotgate ADOPT standards and regulations as required, pursuant
to section 23-410, and promutgate ADOPT such other rules and regulations
as are necessary for the efficient functioning of the division.

5. Have the authority to issue reasonable temporary, experimental
and permanent variances pursuant to sections 23-411 and 23-412.

6. Exercise such other powers as are necessary to carry out the
duties and requirements of this article.

Sec. 5. Section 23-406, Arizona Revised Statutes, is amended to
read:
23-406. Division of occupational safety and health; chief:
appointment; qualifications; compensation
A. There shall be a division of occupational safety and health
within the tmthrstrvet commission.

B. The tirector CHIEF of the division of—occupattoretsafety—amt
treattt shall be the administrative head of the division under the control
of the commission. The cirector CHIEF shall be appointed by the
commission and shall serve at the pleasure of the commission.

C. The trrector CHIEF shall be:

1. A person who has been employed in the safety or _ health
profession a minimum of ten years in the aggregate and is currently
engaged in the broad practice of safety or health or one of its relevant
specialties or holds a degree from an accredited college or university
appropriate to the field of safety and health and has a minimum of five
years' experience in the broad practice of safety or one of its relevant
specialties, and has been registered or licensed by a state agency as a
professional appropriate to trms THE PERSON'S field of safety and health or
has been certified as competent within the broad practice of safety or
health or one of its relevant specialties by an organization recognized as
qualified by the American society of safety engineers or American
industrial hygiene association.

2. Competent to deal with the planning, design and needs of
business operations as the use of such operations relates to the safe,
convenient and economic performance of their business functions, with not

-4-
House Amendments to S.B. 1254

OAnNanNFPWNH FE

less than three years' experience in an administrative capacity in the
field of occupational safety and health.

D. The salary of the thrector CHIEF shall be determined pursuant to
section 38-611.

Sec. 6. Section 23-408, Arizona Revised Statutes, is amended to

read:
23-408. Inspection of places and practices of employment;
closing conference; prohibitions; employee
initiation of investigation; violation;

classification; injunction

A. Except as prescribed in section 23-432, subsection E, the
director CHIEF of the division of—occupationatsafety—amtteatth, or the
directors CHIEF'S authorized representative, on presentation. of
credentials, shall be permrtted ALLOWED to inspect places of employment,
question employees and investigate conditions, practices or matters in
connection with employment subject to this article at reasonable times, as
the tirector CHIEF or the tirector’s CHIEF'S authorized representative may
deem appropriate to determine whether any person has violated any
provistor—of this article or any rule or regulation issued pursuant to
this article or that may aid in the enforcement of this article. An
employer or other person shall not refuse to admit the tirector CHIEF or
the tirector*s CHIEF'S authorized representatives to any place or refuse
to permit ALLOW the inspection if the proper credentials are presented and
the inspection is made at a reasonable time.

B. In making inspections and investigations, the tirector CHIEF or
the cdirector+s CHIEF'S authorized representative may require’ the
attendance and testimony of witnesses and the production of evidence under
oath. Witnesses shall be paid the same fees and mileage paid to witnesses
in the courts of this state. If any person fails or refuses to obey such
an order, the ctirector CHIEF or the ctrector*s CHIEF'S authorized
representative may apply to any superior court in any county where the
person is found, resides or transacts business for an order requiring the
person to produce evidence and to give testimony as ordered. Failure to
obey such an order is contempt of court.

C. The ttrector CHIEF or the cdirector*s CHIEF'S authorized
representative shall inspect at least every six months any operation that
mixes rock, sand, gravel or similar materials with water and cement or
with asphalt and that is not included in the definition of mine in section
27-301. The director CHIEF or the cdirector*s CHIEF'S authorized
representative shall monitor and work with the mine inspector only to the
extent necessary to ensure this. state's compliance with’ federal
occupational safety and health act standards>— (P.L. 91-596).

D. Notice of an intended inspection shall not be given to an
employer before the time of actual entry on the workplace, except by
specific authorization by the tirector CHIEF.

E. A representative of the employer and a representative authorized
by the employer's employees shall be given an opportunity to accompany the
director CHIEF or the tirectorts CHIEF'S authorized representative during
the physical inspection of any workplace for the purpose of aiding the

-5-

House Amendments to S.B. 1254

ONanOHP WM FE

inspection. ‘rere IF there is no authorized employee representative, the
director CHIEF or the tirector*s CHIEF'S authorized representative shall
consult a reasonable number of employees concerning matters of safety and
health in the workplace.

F. The tirector CHIEF may not allow any individual to accompany a
compliance safety and health officer when conducting inspections for the
trdustr+at commission uf—Artzora pursuant to this section unless the
individual is any of the following:

1. An employee of the employer being inspected.

2. A safety consultant, attorney or other agent of the employer or
a person present with the consent of the employer.

3. The authorized employee representative. For the purposes of
this paragraph, “authorized employee representative" means an agent of a
labor organization that has a collective bargaining relationship with the
employer who represents employees who are members of the collective
bargaining unit.

4. <A third party who is required by law to accompany the compliance
safety and health officer to ensure that the state plan is at least as
effective as the standards of the occupational safety and health act of
1970 (P.L. 91-596; 84 Stat. 1590).

5. Otherwise required by law to be present.

G. The employer may require the following conditions for a third
party who accompanies a compliance safety and health officer during an
inspection pursuant to subsection F of this section:

1. That not more than one individual be present unless otherwise
required by law.

2. That the individual follow all workplace safety rules regarding
personal protective equipment applicable to all visitors for the
workplace.

3. That the individual ts—required—to complete any safety trainings
applicable to all visitors of the workplace.

4. That the individual sign a_ confidentiality agreement with
respect to the use of confidential information that is learned during the
inspection that has the same terms as required for other visitors.

5. That nonemployees, other than the compliance safety and health
officer, are BE prohibited from entering areas that contain trade secrets.
The compliance safety and health officer may consult with a reasonable
number of employees who work in the identified trade secret area on
matters of safety and health, even if those employees are not joining the
inspection. Information obtained by the commission or its representatives
during the inspection that contains or that may reveal a trade secret is
subject to section 23-426.

H. Except as provided in section 23-426, information and facts
developed by the commission, the tirector CHIEF or any employee of the
commission or division in the course of any inspection or investigation
are public records subject to inspection pursuant to title 39, chapter 1,
article 2, if, pursuant to section 23-415, subsection D, the inspection or
investigation has been closed or a citation has been issued. Such
information and facts shall not be admissible in any court or before any

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ANANTH WDM FE

administrative body except pursuant to this article. Notwithstanding this
subsection, the tirector CHIEF or any commission employee is not required
to appear at any deposition, trial or hearing concerning a division
inspection or investigation unless the appearance is related to a hearing
held pursuant to this article. Hearings held pursuant to this article are
open to the public.

I. During the inspection or investigation and in deciding whether
to recommend and issue a citation, the thrector CHIEF or the tirector’s
CHIEF'S authorized representative and the commission may consider whether
an employee has committed misconduct by violating the employer's policies,
if any, regarding substance abuse while working, as evidenced by the
results of testing for substance abuse or other evidence of impairment
while working.

J. An employee of the division or the commission may not:

1. Before, during or after an inspection or investigation,
communicate to an employer that the employer should not be represented by
an attorney or that the employer may be treated more favorably by the
division or the commission if the employer is not represented by an
attorney.

2. Conduct an audio recording of an oral statement provided during
an interview without the knowledge and consent of the person being
interviewed. The employee of the division or the commission shall inform
the person being interviewed of the person's right to receive a copy of
the recorded oral statement within a reasonable time.

3. Obtain a written statement during an interview without informing
the person of the person's right to receive a copy of the written
statement within a reasonable time.

K. An employee or a representative of employees who believes that a
violation of a safety or health standard or regulation exists that
threatens physical harm or that an imminent danger exists may request an
investigation by giving notice to the ctirector CHIEF or the ttrector’s
CHIEF'S authorized representative of the violation or danger. Any notice
shall be in writing, set forth with reasonable particularity the grounds
for the notice and be signed by the employees or representative of the
employees. On the request of the employee giving the notice, the
employee's name and the names of other employees referred to in the notice
shall not appear on any copy of the notice or any record published,
released or made available. If on receipt of the notice the tirector
CHIEF determines that there are reasonable grounds to believe that the
violation or danger exists, the tirector CHIEF shall make an investigation
in accordance with this article as soon as practicable to determine if the
violation or danger exists. If the tirector CHIEF determines there are no
reasonable grounds to believe that a violation or danger exists, the
tirector CHIEF shall notify the employees or representative of the
employees in writing of the determination.

L. Any person who violates amy—provrstor-—cof this section is guilty
of a class 2 misdemeanor.

M. The commission, or the commission's authorized representative,
in addition to initiating an action under subsection K of this section,

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OANA TAF WDM FE

may file in the superior court in the county where the inspection was
refused a verified complaint against an employer who violates subsection A
of this section and request an injunction against continued refusal to
permit ALLOW an inspection.

N. At least thirty days before the tmtustrtat commission of-Arizone
submits the state plan proposal or proposed adoption to the United States
occupational safety and health administration, the commission shall submit
the state plan proposal or proposed adoption to the joint legislative
audit committee, which may review and recommend that the commission amend
the state plan proposal or proposed adoption.

Sec. 7. Section 23-409, Arizona Revised Statutes, is amended to

read:

23-409. Advisory committees

A. The commission shall create an occupational safety and health
advisory committee to assist the commission in drafting standards and

regulations. The committee may be asked to perform other functions as may
be necessary. The committee shall be appointed by the commission and
shall be composed of a reasonably balanced representation of regulated
industries, including agriculture, and labor  and_- other persons
knowledgeable in safety and health and shall serve at the will of the
commission. The commission may establish other committees as it deems
necessary. The advisory committees may be paid their reasonable and
necessary travel and other expenses in accordance with standard travel
regulations.

B. The tirector CHIEF shall be an ex officio member of any advisory
committee established pursuant to this section.

Sec. 8. Section 23-415, Arizona Revised Statutes, is amended to
read:

23-415. Citations

A. If the tirector CHIEF, following an inspection or investigation
determines that there is reasonable cause to believe that A violation

exists tre, THE CHIEF shall with reasonable promptness issue a citation to
the employer. Each citation shall be in writing and shall contain the
following:

1. A particular description of the nature of the violation,
including a reference to the provision of this article, or of any standard
or regulation alleged to have been violated.

2. A reasonable time for the abatement of the violation.

3. A notice that the employer may request a hearing pursuant to
section 23-420 if tre THE EMPLOYER is aggrieved by the citation.

B. A certified mail delivery receipt or a signed verification of
delivery in person shall be prima facie evidence of receipt of a citation.

C. Each citation issued under this section or a copy or copies
thereof OF EACH CITATION shall be prominently posted at or near each place
a violation referred to in the citation existed.

D. wo A citation may NOT be issued after the expiration of a period
of six months from the date of the inspection or investigation whitch THAT
produced evidence of the violation.
House Amendments to S.B. 1254

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Sec. 9. Section 23-417, Arizona Revised Statutes, is amended to
read:

23-417. Enforcement procedure

A. If the tirector CHIEF, following an inspection or investigation,
issues a citation pursuant to section 23-415 the cdirector CHIEF, within a
reasonable time after termination of the inspection or investigation,
shall notify the employer by mail of any penalty proposed to be assessed
pursuant to section 23-418 and that the employer has fifteen working days
within which to notify the tirector CHIEF in writing if the employer
wishes to contest the citation or proposed assessment of penalty. If the
employer fails to notify the tirector CHIEF in writing within fifteen
working days of AFTER receipt of the notice that the employer intends to
contest the citation or penalty and a notice is not filed by any employee
or representative of employees pursuant to subsection D of this section
within such time, the citation and the assessment, as proposed, shall be a
final order of the commission and not subject to review by any court or
agency, except that the tirector CHIEF may excuse any late notification to
contest a citation only if the employer to whom the notice was sent shows
by clear and convincing evidence that the notice was not received.

B. The period allowed for correction of a violation shall not begin
to run until the entry of a final order in the case of any review
proceedings pursuant to this section initiated by the employer in good
faith and not solely for delay or avoidance of penalties. If the division
has reason to believe an employer has failed to correct a violation for
which a citation has been issued within the period allowed, the tirector
CHIEF shall notify the employer by mail of such failure, of the penalty
proposed to be assessed pursuant to section 23-418 and that the employer
has fifteen working days within which to notify the ctirector CHIEF in
writing if the employer wishes to contest the notification or proposed
assessment of penalty. If the employer fails to notify the tirector CHIEF
in writing within fifteen working days of receipt of the notice that the
employer intends to contest the notice or penalty, the notice and
assessment, as proposed, shall be deemed a final order of the commission
and not subject to review by any court or agency.

C. Any employer who corrects the violations for which a citation
was issued within the period allowed shall so notify the trector CHIEF in
writing.

D. Any affected employee or employee representative may request a
hearing to appeal the period allowed an employer to abate a particular
violation pursuant to section 23-420 if the affected employee or employee
representative files the appeal with the ctirector CHIEF within the
abatement period allowed in the citation or within fifteen days after the
date of receipt of the citation, whichever is shorter.

E. On a showing by an employer of a good faith effort to comply
with the abatement requirements of a citation, and that abatement has not
been completed because of factors beyond the reasonable control of the
employer, the commission or its authorized designee, after an opportunity
for a hearing as provided in section 23-420, shall issue an order
affirming or modifying the abatement requirements in such citation. The

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rules of procedure prescribed by the commission shall provide affected
employees or representatives of affected employees an opportunity to
participate as parties to hearings under this subsection.

Sec. 10. Section 23-418, Arizona Revised Statutes, is amended to
read:

23-418. Penalties: violation; classification

A. Any employer who wilfully or repeatedly violates’ the
requirements of section 23-403 or any standard or regulation adopted
pursuant to section 23-410 or 23-414 or this article may be assessed a
civil penalty for each wilful violation of not more than the maximum civil
penalty, but not less than the minimum civil penalty, for wilful or
repeated violations adopted by the United States occupational safety and
health administration pursuant to the federal civil penalties inflation
adjustment act improvements act of 2015 (P.L. 114-74; 129 Stat. 599).

B. Any employer who THAT has received a citation for a serious
violation of this article shall be assessed a civil penalty for each such
violation of not more than the maximum civil penalty for serious
violations adopted by the United States occupational safety and health
administration pursuant to the federal civil penalties inflation
adjustment act improvements act of 2015 (P.L. 114-74; 129 Stat. 599).

C. Any employer that has received a citation for a _ nonserious
violation of this article may be assessed a civil penalty for each such
violation of not more than the maximum civil penalty for nonserious
violations adopted by the United States occupational safety and health
administration pursuant to the federal civil penalties inflation
adjustment act improvements act of 2015 (P.L. 114-74; 129 Stat. 599).

D. Any employer that fails to correct a violation for which PERIOD
a citation has been issued within the abatement period allowed for its
correction, which shall be suspended in case of a review proceeding before
an administrative law judge or the review board initiated by the employer
in good faith and not solely for delay or avoidance of penalties, may be
assessed a civil penalty of not more than the maximum civil penalty for
abatement violations adopted by the United States occupational safety and
health administration pursuant to the federal civil penalties inflation
adjustment act improvements act of 2015 (P.L. 114-74; 129 Stat. 599) for
each day during which such failure or violation continues after the
abatement date.

E. Any employer that knowingly violates the requirements of section
23-403 or any standard or regulation adopted pursuant to section 23-410 or
23-414 or this article and that violation causes death to an employee is
guilty of a class 6 felony, except that if the conviction is for a second
or subsequent violation the employer is guilty of a class 5 felony.

F. Any person who Knowingly gives advance notice of any inspection
to be conducted under this article without authority from the tirector
CHIEF is guilty of a class 2 misdemeanor.

G. A person who knowingly makes any false statement, representation
or certification in any application, record, report, plan or _ other
document filed or required to be maintained pursuant to this article is
guilty of a class 2 misdemeanor.

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OnNanOHP WDM FE

H. Any employer that violates any of the posting requirements of
this article shall be assessed a civil penalty for each violation of not
more than the maximum civil penalty for posting violations adopted by the
United States occupational safety and health administration pursuant to
the federal civil penalties inflation adjustment act improvements act of
2015 (P.L. 114-74; 129 Stat. 599).

I. The commission shall have authority to assess all civil
penalties provided in this section, giving due consideration to the
appropriateness of the penalty with respect to the gravity of the
violation, the number of employees employed by the employer, the good
faith of the employer and the history of previous violations under this
article.

J. Civil penalties owed under this article shall be paid to the
commission for deposit in the state general fund. After an order or
decision on a civil penalty becomes final pursuant to section 23-417,
23-421 or 23-423, the civil penalty shall act as a judgment against the
employer. The commission shall file the civil penalty in the office of
the clerk of the superior court in any county in this state and the clerk
shall enter the civil penalty in the civil order book and judgment docket.
When the civil penalty is filed and entered it is a lien for eight years
after the date of the final order or decision on the property of the
employer located in the county. Execution may issue on the civil penalty
within eight years in the same manner and with like effect as a judgment
of the superior court. The civil penalty judgment shall accrue interest
pursuant to section 44-1201. The commission may recover’ reasonable
attorney fees incurred pursuant to this section.

Sec. 11. Section 23-423, Arizona Revised Statutes, is amended to
read:

23-423. Review board rights and procedures; definition

A. A request for review to the review board shall be filed with the
commission within fifteen days after the date the decision was mailed or
e~matted EMAILED to the parties and copies of the request shall be mailed
to all other parties to the proceeding before the administrative law
judge. for—the—purposes—of—thtssectton,—“frtet"trearrs_tepostted—tr ttre
Heritett—Stet — ; —_e a 7
commrsstor-

B. The request for review shall state the grounds for review and
whether oral argument is requested.

C. When review has been requested, the record of such oral
proceedings at the hearing before the administrative law judge for
purposes of the review shall be transcribed at the expense of the party
requesting review. The record shall -be certified to be true and correct
by the office of administrative hearings.

D. The board shall give the parties notice of review by mail or
emmatt EMAIL.

E. If oral argument is requested, a hearing date shall. be
established and notice of the hearing date will be sent with the notice of
review to the parties.

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ONAN HP WM PF

F. The review of the board shall be based on the record submitted
to it under subsection C of this section and such oral argument as may be
requested and received. If the board determines that a case has been
improperly, incompletely or otherwise insufficiently developed or heard by
the administrative law judge, it may remand the case to the administrative
law judge for further evidence taking, correction or other necessary
action.

G. The board may affirm, reverse, modify or supplement the decision
of the administrative law judge and make such disposition of the case as
it determines to be appropriate. The board shall make a decision within
thirty days after review has been submitted.

H. The decision of the board shall be filed with the commission and
a copy of the decision sent by mail or e~matt EMAIL to the parties. All
decisions of the review board shall be in writing. Decisions of the
review board shall be made by a majority vote of the review board. A
decision of the review board is binding on the ctirector CHIEF and the
division with respect to the parties involved in the particular appeal.
The cttrector CHIEF shall have the right to seek judicial review of a
review board decision irrespective of whether or not the tdirector CHIEF
appeared or participated in the appeal to the review board.

I. The decision of the board is final unless within ten days after
the date of service of copies of such decision on the parties, one of the
parties applies to the court of appeals for a writ of certiorari to review
the lawfulness of the decision. A copy of such application shall be
forthwith transmitted to the clerk of the court, to the review board, to
the commission and to the other parties and within ten days therefrom, the
commission shall certify the record, proceedings and evidence before the
administrative law judge and the review board to the court of appeals. On
such filing, the court shall have jurisdiction of the proceedings and of
the question determined therein, and shall have power to make and enter on
the pleadings, testimony and proceedings set forth in such record a decree
affirming, modifying or setting aside in whole or in part, the order of
the review board and enforcing the same to the extent that such order is
affirmed or modified. The commencement of proceedings under. this
subsection does not, unless ordered by the court, operate as a stay of the
order of the review board. No objection that has not been urged before
the review board shall be considered by the court, unless the failure or
neglect to urge such objection shall be excused because of extraordinary
circumstances. The findings of the review board with respect to questions
of fact, if supported by substantial evidence on the record considered as
a whole, shall be conclusive. If any party applies to the court for leave
to adduce additional evidence and shows to the satisfaction of the court
that such additional evidence is material and that there were reasonable
grounds for the failure to adduce such evidence in the hearing before the
administrative law judge, the court may order such additional evidence to
be taken before the administrative law judge and to be made a part of the
record. Petitions filed under this subsection shall be heard
expeditiously and the decision of the review board shall contain a
statement of this right of appeal.

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ANA OHP WM PF

J. FOR THE PURPOSES OF THIS SECTION, "FILED" MEANS DEPOSITED IN THE
UNITED STATES MAIL, POSTAGE PREPAID, OR ACTUALLY RECEIVED BY THE
COMMISSION.

Sec. 12. Section 23-426, Arizona Revised Statutes, is amended to
read:

23-426. Confidentiality of trade secrets

All information reported to or likewise obtained by the commission
or its representatives in connection with any inspection or investigation
under this article wh7ch THAT contains or whrctr THAT might reveal a trade
secret shall be considered confidential for the purpose of this article,
except that such information may be disclosed to other representatives of
the division or commission concerned with carrying out this article or
when relevant in any proceeding under this article. In any such
proceeding, the cirector CHIEF, the commission, the administrative law
judge, the review board or the courts shall issue orders as may be
appropriate to protect the confidentiality of trade secrets.

Sec. 13. Section 23-428, Arizona Revised Statutes, is amended to
read:

23-428. State legal representation

A. The office of the chief counsel of the industrial commission of
Arizona may appear for and represent the commission or the tirector CHIEF

or tres THE CHIEF'S authorized representative in any civil litigation
brought under this article.

B. In any criminal proceeding initiated under this article, the
office of the chief counsel of the industrial commission of Arizona may
appear for, represent and prosecute in the name of tte THIS state vf
Arizona.

Sec. 14. Section 23-433, Arizona Revised Statutes, is amended to
read:

23-433. Consulting program

A. The division shall develop a consulting program wtititzig THAT
USES visits to the workplace of employers to provide consultation and
advice to such employers. Such visits:

1. May be conducted only wpom ON request by an employer for
consultation and advice on the interpretation or applicability of
standards, possible alternative ways of complying with applicable
standards or other matters related to accident prevention, occupational
health or obligations pursuant to this article.

2. Shall be limited to matters specified in the request.

B. If, after evaluating such request, the tirector CHIEF determines
an alternative means of providing consultation is more appropriate and
equally effective, tre THE CHIEF may provide such alternative means rather
than consultation at the workplace.

C. The director CHIEF shall make recommendations regarding
solutions to matters within the scope of the workplace consultation.

D. No visit pursuant to this section shall be regarded as an
inspection or investigation pursuant to section 23-415. No citation shall
be issued nor shall any civil penalties be proposed tpon ON such visit,
except that tottmg—m this section statt DOES NOT affect in any manner

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any provision of this article the purpose of which is to eliminate
imminent danger violations.

Sec. 15. Section 23-471, Arizona Revised Statutes, is amended to
read:

23-471. Definitions

In this article, unless the context otherwise requires:

1. "Authorized representative" means the bovtter—chref—armd boiler
inspector employed by the division.

2. "Boiler" means a closed vessel in which water or other liquid is
heated, steam or vapor is generated or steam or vapor is superheated, or
any combination thereof, under pressure or vacuum for a use that is
external to itself, by the direct application of heat from the combustion
of fuels or from electricity.

3. "Certificate" means a certificate of competency.

4. “Certificate inspection" means an internal inspection, when
construction permits, otherwise it means as complete an inspection as
possible.

5. "CHIEF" MEANS THE CHIEF OF THE DIVISION.

Sy 6. “Commission" means the industrial commission of Arizona.

6" ttrector"—tmeans— thet rector—of—tthe—thvtston—of—occupattonat
safety—antteatth-

7. “Division” means the BOILER division of occupattonatsafety—ant
treattt—of the commission.

8. "Heating boilers" means a steam or vapor boiler operating at a
pressure not exceeding fifteen pounds per square inch or a hot water
boiler operating at a pressure not exceeding one hundred sixty pounds per
square inch or a temperature not exceeding two hundred fifty degrees
Fahrenheit.

9. “High temperature water boiler" means a water boiler intended
for operation at pressures in excess of one hundred sixty pounds per
square inch or temperatures in excess of two hundred fifty degrees
Fahrenheit.

10. "Interested party" means the commission, agents of the
commission and any owner or operator who has been issued a notice of
violation.

11. “Lined hot water heater" means a fired lined water heater with
linings providing corrosion resistance for supplying potable hot water for
commercial purposes. Lined hot water heaters are exempted when none of
the following limitations are exceeded:

(a) Heat input of two hundred thousand British thermal units per
hour.

(b) Water temperature of two hundred ten degrees Fahrenheit.

(c) Nominal water-containing capacity of one hundred’ twenty
gallons.

12. “Owner" or "operator" means any individual or type of
organization, including this state and all political subdivisions of this

state, that has title to or controls, or has the duty to control, the
operation of one or more boilers, pressure vessels or lined hot water
heaters.

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ANA TH WNH FE

13. "Power boiler" means a boiler in which steam or other vapor is
generated at a pressure more than fifteen pounds per square inch.
14, “Pressure vessel" means a container for the containment of

pressure, either internal or external. The pressure may be obtained from
an external source, or by the application of heat from a direct or
indirect source, or any combination thereof.

15. "Process boiler" means a heating boiler or a power boiler used
for processing purposes where the make-up water exceeds ten percent.

Sec. 16. Section 23-474, Arizona Revised Statutes, is amended to
read:

23-474. Duties of commission

The commission shall:

1. Administer this article through the BOILER’ division’ of

2. Adopt standards and regulations pursuant to section 23-475 and

adopt other rules as are necessary.
3. Exercise other powers as are necessary to carry out the duties

and requirements of this article.

Sec. 17. Section 23-477, Arizona Revised Statutes, is amended to
read:

23-477. Notice requesting investigation

A. Any person may make a request for an investigation by the
division into alleged violations of section 23-473 by giving notice to the

director CHIEF or the tirector*s CHIEF'S authorized representative of such
violation or danger. Such notice shall be reduced to writing, set forth
with reasonable particularity the grounds for the notice and be signed.

B. If, upon ON receipt of such notification, the tirector CHIEF
determines that there are reasonable grounds to believe that such
violation or danger exists, the tirector CHIEF shall make an investigation
pursuant to this article as soon as practicable to determine if such
violation or danger exists. If the director CHIEF determines there are no
reasonable grounds to believe that a violation or danger exists, the
tirector CHIEF shall notify the requesting party in writing of such
determination.

Sec. 18. Section 23-478, Arizona Revised Statutes, is amended to
read:

23-478. Enforcement

A. If the division, following an inspection or _ investigation

determines that there is reasonable cause to believe that there exists a
violation of a standard or regulation the division shall issue a notice of
violation directing any repairs, improvements, changes or additions
necessary to eliminate the hazard. Each notice of violation shall be in
writing, delivered either by mail or in person and shall contain the
following:

1. A particular description of the nature of the violation,
including a reference to the provision of this article or of any standard
or regulation alleged to have been violated.

2. A reasonable time for the abatement of the violation.

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FFP APP PWWWWWWWWWWNHYDNYDYDNYDNYDA NNN DFR RRP PRP RRP RE
SDOPWDNMHRF OW ANDAR WHF OW MANA TBR WNHEFE OW ONDA WDYHRKFOWw

B. Each notice of violation issued pursuant to this section or a
copy or copies of such notice of violation shall be prominently posted at
or near each place a violation referred to in the notice of violation
existed.

C. If in the opinion of the cttrector CHIEF or the tirector’s
CHIEF'S authorized representative the continued operation of the defective
boiler, pressure vessel or lined hot water heater constitutes an immediate
danger to the safety of the occupants of the establishment or the persons
operating such boiler, pressure vessel or lined hot water heater the
director CHIEF or tirector*s CHIEF'S authorized representative may condemn
such device and require the boiler, pressure vessel or lined hot water
heater to be returned to a condition allowing safe operation before use of
the boiler, pressure vessel or lined hot water heater is resumed.

D. On failure of an owner or operator to comply with either the
requirements of a notice of violation issued pursuant to subsection A of
this section or condemnation pursuant to tts subsection C OF THIS
SECTION, the commission may file an action in the superior court in the
county where the violation occurred to enjoin the owner or operator from
engaging in further acts in violation of the requirements of the notice of
violation or the condemnation. Any person found to be in contempt of an
injunctive order of the court shall be fined not less than fifty $50 nor
more than three—thorndred—totters $300 with each day of violation
constituting a separate contempt.

Sec. 19. Section 23-491, Arizona Revised Statutes, is amended to
read:

23-491. Definitions

In this article, unless the context otherwise requires:

1. “Authorized representative" means the  etevator—chref—andt
elevator inspector employed by the division.

2. "Certificate" means a certificate of inspection issued by the
division.

3. "CHIEF" MEANS THE CHIEF OF THE DIVISION.

3- 64. «="Commission" means the industrial commission of Arizona.

4> 5. "Conveyance":

(a) Means an elevator, dumbwaiter, escalator, moving walk, manlift,
personnel hoist, material hoist, stage lift and special purpose personnel
elevator. >—~exctodtt1yg

(b) DOES NOT INCLUDE conveyances located at mines amt THAT ARE
subject to regulation and inspection by the state mine inspector pursuant
to title 27, chapter 3.

5 —*trrector*tmeans—the—th rector—of—tte—thvts ton—_of—occupattorat
safety—antteatth-

6. “Division” means the ELEVATOR division wof—occupatrorat—safety
andteatth of the tmdustrret commission.

7. “Dumbwaiter" means a hoisting and lowering mechanism with a car
of limited capacity and size that moves in guides in a _ substantially
vertical direction and that is used exclusively for carrying material.

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House Amendments to S.B. 1254

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8. "Elevator" means a hoisting and lowering mechanism equipped with
a car or platform that moves in guides in substantially vertical direction
and that serves two or more floors of a building or structure.

9. "Elevator company" means a person that is engaged in the
business of erecting, constructing, installing, altering, servicing,
repairing or maintaining conveyances.

10. "Escalator" means a power—tcdrrver POWER-DRIVEN, inclined,
continuous stairway used for raising or lowering passengers.

11. “Interested party" means the commission and its agents and the
owner or operator who has been issued a correction order.

12. "“Manlift" means a device comststirg THAT CONSISTS of a power
drtverr POWER-DRIVEN endless belt moving in one direction only and provided
with steps or platforms and attached handholds for the transportation of
personnel from floor to floor.

13. “Material hoist" means a hoist for raising and lowering
materials only and prohibiting the hoisting of persons.

14. "Moving walk" means a type of Passerger—carry img
PASSENGER-CARRYING device on which passengers stand or walk and in which
the passenger—carrytrg PASSENGER-CARRYING surface remains parallel to its
direction of motion and is uninterrupted.

15. “Owner" or "operator":

(a) Means an individual or organization, including this state and
all political subdivisions of this state, who THAT has title to, controls
or has the duty to control the operation of one or more conveyances. >—but
statt

(b) DOES not include an individual or organization THAT IS engaged
in mining or metallurgical operations AND whose operation is subject to
regulation and inspection by the state mine inspector pursuant to title
27, chapter 3.

16. “Personnel hoist":

(a) Means a mechanism for—rse THAT IS USED in connection with the
construction, alteration, maintenance or demolition of a_ building,
structure or other work, THAT IS used for hoisting and lowering workers
and materials and THAT IS equipped with a car that moves on guide members
during its vertical movement. ‘tre-term

(b) Includes a hoistway of a personnel hoist.

17. "Private elevator inspector" means an individual who is
authorized by the commission under’ section 23-491.16 to conduct
inspections under this article.

18. "Special purpose personnel elevator" means a passenger, tran
poweret HAND-POWERED, counterweighted device or an _ wetectric—powered
ELECTRIC-POWERED device that travels vertically in guides and that serves
two or more landings.

19. "Stage lift" means a hoisting and lowering mechanism equipped
with a platform that moves in guides in a substantially vertical direction
and that serves one or more landings.

Sec. 20. Section 23-491.03, Arizona Revised Statutes, is amended to
read:

23-491.03. Existing conveyances

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House Amendments to S.B. 1254

ANANTH WNM FE

Existing conveyances lawfully installed prior—to BEFORE the
effective date of this article may continue in use if the use is, in the
opinion of the tirector CHIEF, not a hazard to life, health or property.

Sec. 21. Section 23-491.04, Arizona Revised Statutes, is amended to
read:

23-491.04. Commission powers and duties

A. The commission shall:

1. Administer this article through the division wf—occupatiorat
safety—amtteattt.

2. Promutgate ADOPT standards and regulations pursuant to section
23-491.06 as required and promutgate ADOPT such other’ rules” and
regulations and exercise such other powers as are necessary to carry out
this article.

B. The commission, by rule and regulation, may set fees not to
exceed the actual cost for inspections performed pursuant to this article.

Sec. 22. Section 23-491.08, Arizona Revised Statutes, is amended to
read:
23-491.08. Notice requesting investigation; confidentiality;
determination of grounds
A. Any person may make a request for an investigation by the
division into alleged violations of section 23-491.02 by giving notice to

the ttrector CHIEF or the ttrector’s CHIEF'S authorized representative of
such violation or danger. Such notice shall be in writing, shall set
forth with reasonable particularity the grounds for the notice and shall
be signed by the person making the request. tpon ON the request of the
person signing the notice, such person's name shall not appear on any copy
of such notice or any record published, released or made available.

B. If wuporm ON receipt of such notification the tirector CHIEF
determines that there are reasonable grounds to believe that such
violation or danger exists, the tirector CHIEF shall make an investigation
in accordance with the—provirstors—cof this article as soon as practicable
to determine if such violation or danger exists. If the tirector CHIEF
determines there are no reasonable grounds to believe that a violation or
danger exists, the tirector CHIEF shall notify the requesting party in
writing of such a determination.

Sec. 23. Section 23-491.09, Arizona Revised Statutes, is amended to

read:

23-491.09. Enforcement

A. If the division, following an inspection or investigation,
determines that there is reasonable cause to believe that there is a

violation of a standard or regulation, the division shall issue a
correction order directing any repairs, improvements, changes or additions
necessary to eliminate the hazard. Each correction order shall be in
writing, delivered either by mail or in person and shall contain the
following:

1. A particular description of the nature of the violation,
including a reference to the provision of this article or of any standard
or regulation alleged to have been violated.

2. <A reasonable time for the abatement of the violation.

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B. No correction order may be issued after the expiration of a
period of six months from the date of the inspection or investigation
whrct THAT produced evidence of the violation.

C. If, in the opinion of the ttrector CHIEF or the ttrector’s
CHIEF'S authorized representative, the continued operation of _ the
defective device constitutes an immediate danger to the safety of the
persons operating or being conveyed by such device, the titrector CHIEF or
the tirector*s CHIEF'S authorized representative may condemn such device
and require it to be returned to a condition allowing safe operation
before its use is resumed.

D. tporn ON failure of an owner or operator to comply with either
the requirements of a correction order issued pursuant to subsection A OF
THIS SECTION or condemnation pursuant to ttrs subsection C OF THIS
SECTION, the commission may file an action in the superior court vf IN the
county where the violation occurred to enjoin the owner or operator from
engaging in further acts in violation of the requirements of the
correction order or the condemnation. Any person found to be in contempt
of an injunctive order of the court shall be fined not less than fifty $50
nor more than three—hondredtotters $300 with each day of violation
constituting a separate contempt.

Sec. 24. Section 23-1065, Arizona Revised Statutes, is amended to

read:

23-1065. Special fund; purposes; investment committee

A. The tmtustrrat commission may direct the payment into the state
treasury of not to exceed one percent of all premiums received by private

insurance carriers during the immediately preceding calendar year. The
same percentage shall be assessed against self-insurers based on the total
cost to the self-insured employer as _ provided in section 23-961,
subsection G. Such assessments shall be computed on the same premium
basis as provided for in section 23-961, subsections G, H, J, K and L and
shall be to NOT more than is necessary to keep the special fund
actuarially sound. Such payments shall be placed in a special fund within
the administrative fund to provide, at the discretion of the commission,
such additional awards as may be necessary to enable injured employees to
accept the benefits of any law of this state or of the United States, or
both jointly, for promotion of vocational rehabilitation of persons with
disabilities in industry.

B. In claims involving an employee who has a_ preexisting
trdustriatty—-reteted INDUSTRIALLY RELATED permanent physical impairment of
the type specified in section 23-1044, subsection B and who thereafter
suffers an additional permanent physical impairment of the type specified
in such subsection, the claim involving the subsequent impairment is
eligible for reimbursement, as provided by subsection D of this section,
according to the following:

1. The employer in whose employ the subsequent impairment occurred
or its insurance carrier is solely responsible for all temporary
disability compensation to which the employee is entitled and for an
amount equal to the permanent disability compensation provided by section
23-1044, subsection B for the subsequent impairment. If the employee is

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OnNaTHP WDM FE

determined to have sustained no loss of earning capacity after the
medically stationary date, the employer or carrier shall pay trim THE
EMPLOYEE as a vocational rehabilitation bonus the amount calculated under
this paragraph as a lump sum, which shall be a credit against any
permanent compensation benefits awarded in any subsequent proceeding. The
amount of the vocational rehabilitation bonus for which the employer or
carrier is responsible under this paragraph shall be calculated solely on
physical, medically rated permanent impairment and not on occupational or
other factors.

2. If the commission determines that the employee is entitled to
compensation for loss of earning capacity under’ section 23-1044,
subsection C or permanent total disability under’ section 23-1045,
subsection B, the total amount of permanent benefits for which the
employer or carrier is solely responsible under paragraph 1 of this
subsection shall be expended first, with monthly payments made according
to the loss of earning capacity or permanent total disability award. The
employer or carrier and the special fund are equally responsible for the
remaining amount of compensation for loss of earning capacity under
section 23-1044, subsection C or permanent total disability under section
23-1045, subsection B. This paragraph statt+ DOES not be—comstrued—as
requiring REQUIRE payment of any benefits under’ section 23-1044,
subsection B in any case in which an employee is entitled to benefits for
loss of earning capacity under section 23-1044, subsection C or permanent
total disability benefits under section 23-1045, subsection B.

C. In claims involving an employee who has a preexisting physical
impairment that is not trdustrratty-reteted INDUSTRIALLY RELATED and,
whether congenital or due to injury or disease, is of such seriousness as
to constitute a hindrance or obstacle to employment or to obtaining
reemployment if the employee becomes unemployed, and the impairment equals
or exceeds a ten percent permanent impairment evaluated in accordance with
the American medical association guides to the evaluation of permanent
impairment, and the employee thereafter suffers an additional permanent
impairment not of the type specified in section 23-1044, subsection B, the
claim involving the subsequent impairment is eligible for reimbursement,
as provided by subsection D of this section, under the _ following
conditions:

1. The employer in whose employ the subsequent impairment occurred
or its carrier is solely responsible for all temporary disability
compensation to which the employee is entitled.

2. The employer had knowledge of the permanent impairment at the
time the employee was hired, or that the employee continued in employment
after the employer acquired such Knowledge.

3. The employee's preexisting impairment is due to one or more of
the following:

(a) Epilepsy.

(b) Diabetes.

(c) Cardiac disease.

(d) Arthritis.

(e) Amputated foot, leg, arm or hand.

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—
ow

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(f) Loss of sight of one or both eyes or a partial loss of
uncorrected vision of more than seventy-five percent bilaterally.

(g) Residual disability from poliomyelitis.

(h) Cerebral palsy.

(i) Multiple sclerosis.

(j) Parkinson's disease.

(k) Cerebral vascular accident.

(1) Tuberculosis.

(m) Silicosis.

(n) Psychoneurotic disability following treatment in a recognized
medical or mental institution.

(o) Hemophilia.

(p) Chronic osteomyelitis.

(q) Hyperinsulinism.

(r) Muscular dystrophies.

(s) Arteriosclerosis.

(t) Thrombophlebitis.

(u) Varicose veins.

(v) Heavy metal poisoning.

(w) Ionizing radiation injury.

(x) Compressed air sequelae.

(y) Ruptured intervertebral disk.

4. The employer or carrier and the special fund are equally
responsible for the amount of compensation for loss of earning capacity
under section 23-1044, subsection C or permanent total disability under
section 23-1045, subsection B.

D. The employer or insurance carrier shall notify the commission of
its intent to claim reimbursement for an eligible claim under subsection B
or C of this section not later than the time the employer or insurance
carrier notifies the commission pursuant to section 23-1047, subsection A.
tporr ON receiving notice the commission may expend funds from the special
fund created by this section for travel and discovery procedures and for
the employment of such independent legal, medical, rehabilitation, claims
or labor market consultants or experts as may be deemed necessary by the
commission to assist in the determination of the liability of the special
fund, if any, under subsection B or C of this section. In the event there
is any dispute regarding liability to the special fund pursuant to
subsection B or C of this section, the commission shall not delay the
issuance of a permanent award pursuant to section 23-1047, subsection B.

E. If the special fund created by this section is determined to be
liable under either subsection B or C of this section, the employer or
insurance carrier that is primarily liable shall pay the entire amount of
the award to the injured employee and the commission shall by rule provide
for the reimbursement of the employer or insurance carrier on an annual
basis. In any case arising out of subsection B or C of this section, the
written approval of the special fund is required for the compromise of any
claim made pursuant to section 23-1023. In any such case, written
approval shall not be unreasonably withheld by the special fund, carrier,
self-insured employer or other person responsible for the payment of

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compensation. Failure to obtain the written approval of the special fund
shall not cause the injured worker to lose any benefits but ends the
special fund's liability for reimbursement and makes the employer or
carrier solely responsible for the payment of the remaining benefits.

F. The employer or insurance carrier shall make its claim for
reimbursement to the commission not later than November 1 each year, for
payments made pursuant to subsection B or C of this section during the
twelve months before October 1 each year. Claims shall be paid before
December 31 each year. If the total annual reserved liabilities of the
special fund obligated under subsections B and C of this section exceed
ste t+t+or—tottars «=$6,000,000, as determined by the annual actuarial
study performed pursuant to subsection I of this section, the commission,
after notice and a hearing, may levy an additional assessment under
subsection A of this section of up to one-half percent to meet such
liabilities. Any insurance carrier or employer wito THAT may be adversely
affected by the additional assessment may at any time before the sixtieth
day after such additional assessment is ordered file a_ complaint
challenging the validity of the additional assessment in the superior
court in Maricopa county for a judicial review of the additional
assessment. On judicial review the determination of the commission shall
be upheld if supported by substantial evidence in the record considered as
a whole.

G. In the event the injured employee is awarded additional
compensation, under subsection A of this section, the commission retains
jurisdiction to amend, alter or change the award wporr ON a change in the
physical condition of the injured employee resulting from the injury.

H. On receiving notice that the special fund may be liable under
this chapter, the commission may spend monies from the special fund
established by this section for expenses that are necessary to assist in
the processing, payment or determination of liability of the fund. These
expenses may include travel, discovery procedures and employing any legal,
medical, rehabilitation, claims or labor market consultant, examiner or
expert.

I. The commission shall cause an annual actuarial study of the
special award fund to be made by a qualified actuary who is a member of
the society of actuaries. The actuary shall make specific recommendations
for maintaining the fund on a sound actuarial basis. The actuarial study
shall be completed on or before September 1.

J. The special fund of the commission consists of all monies from
premiums and assessments, except penalties assessed pursuant to this
chapter, received and paid into the fund, property and securities acquired
by the use of monies in the fund, interest earned on monies in the fund
and other monies derived from the sale, use or lease of properties
belonging to the fund. The special fund created by this section shall be
administered by the director of the tmdustrvat commission, subject to the
authority of the tmtustrvat commission. The director of the commission
with approval of the investment committee, in the administration of the
special fund, may provide loans, subject to repayment, budgetary review
and legislative appropriation, to the administrative fund for the purposes

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and subject to section 23-1081, acquire real property and acquire or
construct a building or other improvements on the real property as may be
necessary to house, contain, furnish, equip and maintain offices and space
for departmental and operational facilities of the commission. The
commission, when using space constructed pursuant to this section, shall
make equal payments of rent on a semiannual basis, which shall be
deposited in the special fund. The investment committee shall determine
the amount of the rent, which must be at least equal to or greater than
that determined by the joint committee on capital review for buildings of
similar design and construction as provided by section 41-792.01.

K. There is established an investment committee consisting of the
director and the chairman of the commission and _ three persons
knowledgeable in investments and economics appointed by the governor. Of
the members appointed by the governor, one shall be a professional in the
investment business, one shall represent workers' compensation insurers
and one shall represent self-insurers. The term of members appointed by
the governor is three years, which shall begin on July 1 and end on June
30 three years later. The committee shall prescribe by rule investment
policies and supervise the investment activities of the special fund.

L. Each member of the investment committee, other than the director
of the commission, is eligible to receive from the special fund:

1. Compensation of fifty—totters $50 for each day while in actual
attendance at meetings of the investment committee.

2. Reimbursement for expenses pursuant to title 38, chapter 4,
article 2.

M. The investment committee shall meet at least once every month.

N. The investment committee shall periodically review and assess
the investment strategy.

0. The investment committee, by resolution, may invest and reinvest
the surplus or reserves in the funds established under this chapter in any
legal investments authorized under section 38-718.

P. In addition to the investments authorized under section 38-718,
the investment committee may approve the investment in real property and
improvements on real property to house and maintain offices of the
commission, including spaces for its departmental and _ operational
facilities. Title to the real estate and improvements on the real estate
vests in the special fund of the commission, and the assets become part of
the fund as provided by this section.

Q. The investment committee may appoint a custodian for _ the
safekeeping of all or any portion of the investments owned by the special
fund of the commission and may register stocks, bonds and _ other
investments in the name of a nominee. Except for investments held by a
custodian or in the name of a nominee, all securities purchased pursuant
to subsection 0 of this section shall promptly be deposited with the state
treasurer as custodian thereof, who shall collect the dividends, interest
and principal thereof, and pay, when collected, into the special
fund. The state treasurer shall pay all vouchers drawn for the purchase
of securities. The director may sell any of the securities as the
director deems appropriate, if authorized by resolution of the investment

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ONAN HP WME

committee, and the proceeds therefrom shall be payable to the state
treasurer for the account of the special fund wporm ON delivery of the
securities to the purchaser or the purchaser's agent.

Sec. 25. Section 41-1005, Arizona Revised Statutes, is amended to
read:

41-1005. Exemptions

A. This chapter does not apply to any:

1. Rule that relates to the use of public works, including streets
and highways, under the jurisdiction of an agency if the effect of the
order is indicated to the public by means of signs or signals.

2. Order or rule of the Arizona game and fish commission that does
the following:

(a) Opens, closes or alters seasons or establishes bag or
possession limits for wildlife.

(b) Establishes a fee pursuant to section 5-321, 5-322 or 5-327.

(c) Establishes a license classification, fee or application fee
pursuant to title 17, chapter 3, article 2.

(d) Limits the number or use of licenses or permits that are issued
to nonresidents pursuant to section 17-332.

3. Rule relating to section 28-641 or to any rule regulating motor
vehicle operation that relates to speed, parking, standing, stopping or
passing enacted pursuant to title 28, chapter 3.

4. Rule concerning only the internal management of an agency that
does not directly and substantially affect the procedural or substantive
rights or duties of any segment of the public.

5. Rule that only establishes specific prices to be charged for
particular goods or services sold by an agency.

6. Rule concerning only the physical servicing, maintenance or care
of agency owned or operated facilities or property.

7. Rule or substantive policy statement concerning inmates or
committed youths of a correctional or detention facility in secure custody
or patients admitted to a hospital if made by the state department of
corrections, the department of juvenile corrections, the board of
executive clemency or the department of health services or a facility or
hospital under the jurisdiction of the state department of corrections,
the department of juvenile corrections or the department of health
services.

8. Form whose contents or substantive requirements are prescribed
by rule or statute and instructions for the execution or use of the form.

9. Capped fee-for-service schedule adopted by the Arizona health
care cost containment system administration pursuant to title 36,
chapter 29.

10. Fees prescribed by section 6-125.

11. Order of the director of water resources adopting or modifying
a management plan pursuant to title 45, chapter 2, article 9.

12. Fees established under section 3-1086.

13. Fees established under sections 41-4010 and 41-4042.

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House Amendments to S.B. 1254

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14. Rule or other matter relating to agency contracts.

15. Fees established under section 32-2067 or 32-2132.

16. Rules made pursuant to section 5-111, subsection A.

17. Rules made by the Arizona state parks board concerning the
operation of the Tonto natural bridge state park, the facilities located
in the Tonto natural bridge state park and the entrance fees to the Tonto
natural bridge state park.

18. Fees or charges established under section 41-511.05.

19. Emergency medical services protocols except as provided in
section 36-2205, subsection B.

20. Fee schedules established pursuant to section 36-3409.

21. Procedures of the state transportation board as prescribed in
section 28-7048.

22. Rules made by the state department of corrections.

23. Fees prescribed pursuant to section 32-1527.

24. Rules made by the department of economic security pursuant to
section 46-805.

25. Schedule of fees prescribed by section 23-908, EXCEPT THAT THE
INDUSTRIAL COMMISSION OF ARIZONA MUST POST THE SCHEDULE OF FEES ON ITS
WEBSITE AND PREPARE AND FILE A NOTICE OF PUBLIC INFORMATION WITH THE
WEBSITE ADDRESS TO BE PUBLISHED IN THE REGISTER.

26. Procedure that is established pursuant to title 23, chapter 6,
article 6.

27. Rules, administrative policies, procedures and guidelines
adopted for any purpose by the Arizona commerce authority pursuant to
chapter 10 of this title if the authority provides, as appropriate under
the circumstances, for notice of an opportunity for comment on the
proposed rules, administrative policies, procedures and guidelines.

28. Rules made by a marketing commission or marketing committee
pursuant to section 3-414.

29. Administration of public assistance program monies authorized
for liabilities that are incurred for disasters declared pursuant to
sections 26-303 and 35-192.

30. User charges, tolls, fares, rents, advertising and sponsorship
charges, services charges or similar charges established pursuant to
section 28-7705.

31. Administration and implementation of the hospital assessment
pursuant to section 36-2901.08, except that the Arizona health care cost
containment system administration must provide notice and an opportunity
for public comment at least thirty days before establishing’ or
implementing the administration of the assessment.

32. Rules made by the Arizona department of agriculture to adopt
and implement the provisions of the federal milk ordinance as prescribed
by section 3-605.

33. Rules made by the Arizona department of agriculture to adopt,
implement and administer the United States food and drug administration
produce safety rule (21 Code of Federal Regulations part 112) and any
other federal produce safety regulation, order or guideline or other
requirement adopted pursuant to the FDA food safety modernization act

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House Amendments to S.B. 1254

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(P.L. 111-353; 21 United States Code sections 2201 through 2252) as
provided by title 3, chapter 3, article 4.1.

34. Calculations that are performed by the department of economic
security and that are associated with the adjustment of the sliding fee
scale and formula for determining child care assistance pursuant to
section 46-805.

35. Rules made by the Arizona department of agriculture to
implement and administer the livestock operator fire and flood assistance
grant program established by section 3-109.03.

B. Notwithstanding subsection A, paragraph 21 of this section, if
the federal highway administration authorizes the privatization of rest
areas, the state transportation board shall make rules governing the lease
or license by the department of transportation to a private entity for the
purposes of privatization of a rest area.

C. Coincident with tte making of a final rule pursuant to an
exemption from the applicability of this chapter under this section,
another statute or session law, the agency shall:

1. Prepare a notice and follow formatting guidelines prescribed by
the secretary of state.

2. Prepare the rulemaking exemption trotrces NOTICE pursuant to
chapter 6.2 of this title.

3. File wa—copy—of the rule with the secretary of state for
publication pursuant to section 41-1012 amt-provide-acopy—to_the-connett.

4. PROVIDE A COPY OF THE RULE TO THE COUNCIL.

D. Unless otherwise required by law, articles 2, 3, 4 and 5 of this
chapter do not apply to the Arizona board of regents and the institutions
under its jurisdiction, except that the Arizona board of regents shall
make policies or rules for the board and the institutions under its
jurisdiction that provide, as appropriate under the circumstances, for
notice of and opportunity for comment on the policies or rules proposed.

E. Unless otherwise required by law, articles 2, 3, 4 and 5 of this
chapter do not apply to the Arizona state schools for the deaf and the
blind, except that the board of directors of all the state schools for the
deaf and the blind shall adopt policies for the board and the schools
under its jurisdiction that provide, aS appropriate under the
circumstances, for notice of and opportunity for comment on the policies
proposed for adoption.

F. Unless otherwise required by law, articles 2, 3, 4 and 5 of this
chapter do not apply to the state board of education, except that the
state board of education shall adopt policies or rules for the board and
the institutions under its jurisdiction that provide, as appropriate under
the circumstances, for notice of and opportunity for comment on the
policies or rules proposed for adoption. In order to implement or change
any rule, the state board of education shall provide at least two
opportunities for public comment. The state board of education shall
consider the fiscal impact of any proposed rule pursuant to. this
subsection.

G. Unless otherwise required by law, articles 2, 3, 4 and 5 of this
chapter do not apply to the state board for charter schools, except that

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House Amendments to S.B. 1254

the board shall adopt policies or rules for the board and the charter
schools sponsored by the board that provide, as appropriate under the
circumstances, for notice of and opportunity for comment on the policies
or rules proposed for adoption. In order to implement or change any
policy or rule, the board shall provide at least two opportunities for
public comment. The state board for charter schools shall consider the
fiscal impact of any proposed rule pursuant to this subsection."

Amend title to conform

Oona WMH

JEFF WENINGER

1254WENINGER SE.docx
03/19/2026

12:00 PM

H: PB/1s

130EKHGKH

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. SB 1254

DATE March 24, 2026 MOTION: DPA SIE

PASS AYE NAY PRESENT | ABSENT
Aguilar \ |
Blackman 7

Carter N AX
Cavero Tl

Diaz

Hendrix

Villegas
Volk
Willoughby
Wilmeth

Vie
a

Way, Vice-Chairman

Weninger, Chairman

PRR TG) TRI

O | © y

APPROYED: bey od SECREFARY
tt _

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT.
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DPA 7-0-0-0 | Third Reading 30-0-0-0-0

SB 1515: industrial commission; revisions
S/E: public safety parity fund
Sponsor: Senator Dunn, LD 25

Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1515

Overview

Establishes the Public Safety Parity Fund (Parity Fund) to provide retention pay and benefits
for Department of Public Safety (DPS) and State Department of Corrections (DOC)
employees. Redirects a portion of Budget Stabilization Fund (BSF) investment earnings to
the Parity Fund.

History
The BSF, colloquially known as Arizona's "Rainy Day Fund", was enacted in 1990 to set

revenue aside during times of above-trend economic growth and to utilize this revenue during
times of below-trend growth. The BSF is administered by the State Treasurer, who is
responsible for transferring state General Fund (GF) monies into and out of the BSF.
Additionally, the State Treasurer is allowed to invest up to 25% of the BSF in equity
securities, in addition to its authority to invest and reinvest trust and treasury monies.
Investment earnings are credited back to the BSF (A.R.S. §§ 35-144; 35-314.02),

The Parity Compensation Fund is administered by DPS and is used to fund the salaries and
benefits for law enforcement personnel. The fund consists of 1.51% of the portion of vehicle
license tax revenues that are otherwise deposited in the State Highway Fund, and monies
appropriated by the Legislature (A.R.S. § 41-1720).

Provisions

Public Safety Parity Fund

1. Establishes the Parity Fund to provide retention pay and benefits for DPS and DOC
employees. (Sec. 2)

2. Specifies the Parity Fund:
a. is administered by DOC;
b. subject to legislative appropriations; and
c. consists of monies earned from investment from the BSF. (Sec. 2)

3. Instructs DOC, beginning June 30, 2027, and each fiscal year thereafter, to deposit 40%
of Parity Fund monies in the Parity Compensation Fund. (Sec. 2)

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

Initials SB 1515
3/19/2026 Page 1 Commerce
4. Prescribes the method for determining the amount of the expenditures from the Parity
Fund. (ee. 2)

5. Directs DOC to distribute monies from the Parity Fund on July 1 and December 31 each
year. (Sec. 2)
6. Limits the retention bonus that DOC may provide to employees to 3% from Parity Fund
monies. (Sec. 2)
Parity Compensation Fund

7. Adds that DPS must spend Parity Compensation Fund monies to provide retention pay
and benefits for department employees, in addition to providing salaries and benefits for
law enforcement personnel. (Sec. 3)

8. Limits the retention bonus that DPS may provide to employees to 3% from monies
deposited from the Parity Fund. (Sec. 38)

Budget Stabilization Fund

9. Requires the first $10,000,000 of investment earnings generated annually be credited to
the BSF and the remaining investment earnings be deposited into the Parity Fund. (Sec.
1)

Initials SB 1516
3/19/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1515

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1515
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 35-144, Arizona Revised Statutes, is amended to
read:

35-144. Budget stabilization fund; definitions

A. The budget stabilization fund is established consisting of
monies transferred from the state general fund pursuant to subsection B of
this section. The state treasurer shall administer the budget
stabilization fund, amt invest and divest monies in the _ budget
9 stabilization fund as provided by sections 35-313 and 35-314.02, and
10 DEPOSIT, PURSUANT TO SECTIONS 35-146 AND 35-147, monies earned from
11 investment statt—be—credited—to—the—baudget—stabttrizatron—fond IN THE
12 PUBLIC SAFETY PARITY FUND ESTABLISHED BY SECTION 41-1610.02, EXCEPT THAT
13 THE FIRST $10,000,000 GENERATED ANNUALLY SHALL REMAIN IN THE BUDGET
14 STABILIZATION FUND. Except as provided by this section:
15 1. Monies in the budget stabilization fund are exempt from the
16 provisions of section 35-190 relating to the reversion of monies to the
17 state general fund.

Ona nF WNM FE

18 2. The monies in the fund are separate monies to be used only for
19 the purposes of the fund.
20 3. An amount sufficient to pay claims certified by the state

21 forester pursuant to section 37-1305, subsection E, paragraph 4 is
22 continuously appropriated from the fund to the state treasurer for payment
23 of the certified claims. Not more than $20,000,000 in unreimbursed claims
24 may be outstanding from the fund at any time from the monies appropriated
25 pursuant to this paragraph.

26 B. In a calendar year in which the annual growth rate exceeds the
27 trend growth rate, the excess growth when multiplied by total general fund
28 revenue of the fiscal year ending in the calendar year determines the
29 amount to be appropriated by the legislature to the budget stabilization
30 fund in the fiscal year in which the calendar year ends.

31 C. In a calendar year in which the annual growth rate is both less
32 than two percent and less than the trend growth rate, the difference
33 between the annual growth rate and the trend growth rate when multiplied
34 by the total general fund revenue of the fiscal year ending in the
35 calendar year determines the amount to be transferred by the legislature
36 from the budget stabilization fund to the state general fund at the end of
37 the fiscal year in which the calendar year ends. The transfer calculated
38 pursuant to this subsection shall not exceed the available balance in the
39 budget stabilization fund, nor shall the legislature transfer an amount

Adopted # of Verbal:

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House Amendments to S.B. 1515

Onna Se Ww DN

that exceeds the amount sufficient to balance the state general fund
budget.

D. The legislature shall pass a bill that contains the emergency
clause if the legislature either:

1, Reduces the amount for appropriation to the budget stabilization
fund under subsection B of this section.

2. Increases the amount for transfer to the state general fund
under subsection C of this section.

E. The annual budget recommendations of the governor and the joint
legislative budget committee shall include estimates of appropriations or
transfers required under subsection B or C of this section.

F. A final determination of the amount to be appropriated to or
transferred from the budget stabilization fund shail be made using
personal income and price deflator estimates as reported in the second
calendar quarter for the preceding calendar year. The economic estimates
commission shal] determine the annual growth rate, the trend growth rate
and the required appropriation to or transfer from the budget
stabilization fund at its first meeting following the second calendar
quarter report of the United States department of commerce, but not later
than June 1. The commission shall certify and report its findings to the
governor, the state treasurer, the president of the senate, the speaker of
the house of representatives and the joint legislative budget committee.

G. The appropriation calculated pursuant to subsection B of this
section may be included in the general appropriations bill for that fiscal
year. Any additional appropriation calculated pursuant to subsection F of
this section shall be made by a separate act.

H. At the end of a fiscal year, the budget stabilization fund
balance shall not exceed ten percent of state general fund revenue for the
fiscal year. Any surplus monies above ten percent shall be transferred by
the state treasurer to the state general fund.

I. The state treasurer may temporarily divest monies in the budget
stabilization fund to avoid a negative cash balance in operating
monies. The amount divested shall not exceed the amount required to meet
immediate cash needs. The state treasurer may divest monies in the budget
stabilization fund only when the state general fund has a negative cash
balance.

J. For the purposes of this section:

1. “Adjusted personal income" means personal income minus transfer
payments, as reported by the United States department of commerce, bureau
of economic analysis, or its successor agency.

2. “Annual growth rate" means the percentage change in real
adjusted personal income in the calendar year ending during a fiscal year
as compared to real adjusted personal income for the preceding calendar
year. The annual growth rate shall be rounded to the nearest
one-hundredth of one percent.

3. “GDP price deflator" means the gross domestic product price
deflator reported by the United States department of commerce, bureau of
economic analysis, or its successor agency.

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House Amendments to S.B. 1515

ONO WDM FE

4. "Personal income" means the total personal income of all persons
in this state reported by the United States department of commerce, bureau
of economic analysis, or its successor agency.

5. "Real adjusted personal income" means an amount that is
determined by dividing adjusted personal income by the GDP price deflator
and multiplying the result by one hundred.

6. “Transfer payments" means that portion of personal income that
represents a government expenditure for which no service is rendered or
product is delivered, as determined by the United States department of
commerce, bureau of economic analysis, or its successor agency.

7. "Trend growth rate" means the average annual growth rate for the
most recent seven calendar years, rounded to the nearest one-hundredth of
one percent.

Sec. 2. Title 41, chapter 11, article 1, Arizona Revised Statutes,
is amended by adding section 41-1610.02, to read:

41-1610.02. Public safety parity fund

A. THE PUBLIC SAFETY PARITY FUND IS_ ESTABLISHED TO PROVIDE
RETENTION PAY AND BENEFITS FOR EMPLOYEES FROM THE DEPARTMENT OF PUBLIC
SAFETY AND THE STATE DEPARTMENT OF CORRECTIONS. THE FUND CONSISTS OF
MONIES EARNED FROM INVESTMENT FROM THE BUDGET STABILIZATION FUND
ESTABLISHED BY SECTION 35-144. THE STATE DEPARTMENT OF CORRECTIONS SHALL
ADMINISTER THE FUND. MONIES IN THE FUND ARE SUBJECT TO LEGISLATIVE
APPROPRIATION.

B. BEGINNING JUNE 30, 2027 AND EACH FISCAL YEAR THEREAFTER, THE
STATE DEPARTMENT OF CORRECTIONS SHALL DEPOSIT, PURSUANT TO SECTIONS 35-146
AND 35-147, FORTY PERCENT OF THE MONIES DEPOSITED IN THE PUBLIC SAFETY
PARITY FUND ESTABLISHED BY THIS SECTION IN THE PARITY COMPENSATION FUND
ESTABLISHED BY SECTION 41-1720.

C. IN DETERMINING THE AMOUNT OF THE EXPENDITURES FROM THE FUND, THE
STATE DEPARTMENT OF CORRECTIONS SHALL ANNUALLY ESTABLISH AND CONSIDER
BENCHMARKS BASED ON THE AVERAGE TOTAL COMPENSATION FOR EACH COMPARABLE
CORRECTIONS PERSONNEL RANK OF THE TWO LARGEST COUNTY JAILS IN THIS STATE
AND THE TWO LARGEST PRIVATE PRISONS IN THIS STATE.

D. THE STATE DEPARTMENT OF CORRECTIONS SHALL DISTRIBUTE THE MONIES
IN THE FUND ON JULY 1 AND DECEMBER 31 EACH YEAR. THE STATE DEPARTMENT OF
CORRECTIONS MAY PROVIDE A RETENTION BONUS TO DEPARTMENT EMPLOYEES OF NOT
MORE THAN THREE PERCENT FROM FUND MONIES.

Sec. 3. Section 41-1720, Arizona Revised Statutes, is amended to

read:

41-1720. Parity compensation fund

A. The parity compensation fund is established consisting of monies
deposited pursuant to sectrom SECTIONS 28-5808 AND 41-1610.02 and monies
appropriated by the legislature. The department shall administer the fund
and, considering state revenues and state employee pay adjustments, >the
department shall spend monies from the fund TO PROVIDE RETENTION PAY AND
BENEFITS FOR EMPLOYEES FROM THE DEPARTMENT AND for salaries and benefits
for law enforcement personnel that the department determines will enhance
the ability of the department to successfully recruit and retain qualified
law enforcement personnel. In determining the amount of the expenditures

-3-
House Amendments to S.B. 1515

from the fund, the department shall annually establish and consider
benchmarks based on the average total compensation for each comparable law
enforcement personnel rank of the department's three largest county or
municipal peer law enforcement agencies in this state. For the purposes
of this subsection, "total compensation" includes base salary, educational
incentive pay, physical performance pay, longevity pay and retirement
contributions made by an employer on behalf of an employee.

B. On notice from the department, the state treasurer shall invest
9 and divest monies in the fund as provided by section 35-313, and monies
10 earned from investment shall be credited to the fund.

ONO WNH HE

i C. Fund monies:

12 1. Do not revert to the state general fund.

13 2. Are exempt from the provisions of section 35-190 relating to
14 lapsing of appropriations.

5 3. Are subject to legislative appropriation.

16 D. THE DEPARTMENT MAY PROVIDE A RETENTION BONUS TO DEPARTMENT

17 EMPLOYEES OF NOT MORE THAN THREE PERCENT FROM MONIES DEPOSITED IN THE FUND
18 PURSUANT TO SECTION 41-1610.02."
19 Amend title to conform

JEFF WENINGER

1515WENINGER SE.docx
03/19/2026

12:20 PM

H: PB/1s

13OWCFKNR
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE

March 24, 2026

SB 1515

MOTION: DPASIE

PASS

NAY

PRESENT

ABSENT

Aguilar

Blackman

é

Carter N

Cavero

Ve
—

Diaz

Hendrix

Villegas

Volk

Willoughby

il
—

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

‘A WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

PS KAA) | AIM

ys

O

Zibb, Bi Sines

COMMITTEE SEGRETARY

ATTACHMENT._1Z. |

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: FIN DPA 5-1-1-0 | Third Read 29-0-1-0-0

SB1206: storm related insurance claims; adjusters
Sponsor: Senator Carroll, LD 28
Committee on Commerce

Overview
Establishes prohibitions on adjusters and contractors for storm related insurance claims.

History
An adjuster is any person who, for compensation, fee or commission, either adjusts,

investigates or negotiates settlement of claims arising under property and casualty insurance
contracts on behalf of either the insurer or the insured for holds oneself out to perform such
services. Adjusters must be licensed by the Department of Insurance and Financial
Institutions (A.R.S. §§ 20-321, 20-321.01).

Statute outlines specific regulations regarding contracts for residential repair or replacement
of damage resulting directly from a catastrophic storm, including a property owner's right to
cancel a contract within 72 hours of an insurance claim denial or within four business days
of signing the contract. A contractor may not act on a property owner's behalf to negotiate
settlement of claim or loss or make assurances of insurance policy coverage. Failing to comply
with regulations regarding contracts for residential repair or replacement of damage
resulting directly from a catastrophic storm subjects the contractor’s license to suspension or
revocation (A.R.S. § 32-1158.02).

Provisions
1. Prohibits an adjuster from:

a. proposing to any insured that the adjuster represents the insured while a loss-
producing occurrence is continuing or while public safety services are engaged in a
public safety emergency response at the damaged premises;

b. participating in the restoration, reconstruction or repair of damaged premises or
property that is the subject of a claim adjusted by the adjuster; and

c. endorsing payment instruments issued to an insured as a result of a claim arising
under an insurance contract without the insured's direct endorsement and signature.
(Sec. 2)

2. Stipulates a contractor, for an insured owner who submits a claim with the insurer for
residential repair or replacement, cannot advertise to pay, issue payment for or promise
to pay any deductible payable on the policy or issue any rebate deductible either directly
or indirectly. (Sec. 3)

3. Prohibits a contractor providing post-storm repair or replacement contracting services
from acting as an adjuster on behalf of the insured for the claim. (Sec. 3)

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

Initials PB/ZE SB 1206
3/17/2026 Page 1 Commerce

ATTACHMENT 13

4. Prohibits a contractor from proposing to any person that the person sign an agreement
for work on any damaged premises while a loss-producing occurrence is continuing or
while public safety services are engaged in a public safety emergency response at the
damaged premises. (Sec. 3)

5. Modifies the definition of adjuster to include a person who directly or indirectly solicits
business from, investigates or advises an insured about claims arising pursuant to

property and casualty insurance contracts for a person that performs adjustment services
(Sec. 1)

6. Defines adjust. Sec. 1)

Initials PB/ZE SB 1206
3/17/2026 Page 2 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1206

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1206
(Reference to Senate engrossed bill)

Amendment instruction key:
(GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
{Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
[GREEN-STFRIKECUT-F-BRACKEFS] indicates new text removed from statute
or previously enacted session law.
(Green—str7keout—irtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<freenstrikeout—ir-carets>> indicates a section removed from the bill.

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

2 Section 1. Section 20-321, Arizona Revised Statutes, is amended to
3 read:

4 20-321. Definitions

5 In this article, unless the context otherwise requires:

6 1. "ADJUST" MEANS TO INVESTIGATE OR NEGOTIATE THE SETTLEMENT OF A
7 CLAIM ARISING PURSUANT TO A PROPERTY AND CASUALTY INSURANCE CONTRACT.

8 t 2. "Adjuster":

9 (a) Means any person who for compensation, fee or commission e7ther
10 DOES ANY OF THE FOLLOWING:

ih (i) Adjusts>—imvesttgates—or—tregottates— setttement—of—ctamms
12 artsimg-omder—property—and-casuatty—irsurance—comtracts ADJUSTS CLAIMS on

13 behalf of either the insurer or the insured.

14 (ii) Holds oneself out to perform a service listed in item (i) of
15 this subdivision.
16 (iii) DIRECTLY OR INDIRECTLY SOLICITS BUSINESS FROM, INVESTIGATES

17 OR ADVISES AN INSURED ABOUT CLAIMS ARISING PURSUANT TO PROPERTY AND
18 CASUALTY INSURANCE CONTRACTS FOR A PERSON THAT PERFORMS SERVICES PURSUANT
19 TO ITEM (i) OF THIS SUBDIVISION.

20 (b) Does not include:

21 (i) A licensed attorney-at-law who is qualified to practice law in
22 this state.

23 (ii) A salaried employee of an insurer or of a managing general

24 agent. For the purposes of this item, "salaried employee" means an
25 employee whose compensation is not contingent on the outcome of a claim
26 determination.

Adoptec # of Verbals

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ATTACHMENT 14
House Amendments to S.B. 1206

OnNaOHP WHY FP

(iii) A licensed insurance producer who adjusts or assists in
adjustment of losses arising under policies procured through the insurance
producer.

(iv) An employee of a political subdivision who adjusts or assists
in the adjustment of losses arising under policies covering the political
subdivision or persons indemnified by the political subdivision.

(v) An independent contractor retained by a licensed adjuster or a
person listed in items (i), (ii), (iii) and (iv) of this subdivision for
the sole purpose of providing technical assistance in connection with a
claim. Independent contractors may include photographers, estimators,
engineers, private detectives or handwriting experts.

(vi) An individual who collects claim information from or furnishes
claim information to insureds or claimants and who conducts data entry,
including entering data into an automated claims adjudication system, if
not more than twenty-five persons, as described in this item, are under
the supervision of a single licensed adjuster or licensed producer.

(vii) A licensed insurance producer who supervises or adjusts
claims pursuant to item (vi) of this subdivision.

(viii) Registered third-party administrators and their employees
who are engaged in administering accident and health or life insurance
claims.

(ix) An individual who adjusts, investigates or negotiates
settlement of only workers' compensation claims.

> 3. “Automated claims adjudication system" means a preprogrammed
computer system that is designed for the collection, data entry,
calculation and final resolution of portable consumer electronic products
insurance claims and that:

(a) May be used only by a licensed adjuster, a licensed producer or
supervised individuals operating pursuant to this paragraph.

(b) Must comply with all claims payment requirements under this
title and be certified as compliant by a licensed adjuster.

3- 4. “Portable consumer electronic products" means electronic
devices and related accessories that are portable in nature.

Sec. 2. Section 20-321.02, Arizona Revised Statutes, is amended to
read:

20-321.02. Application of other laws

A. To the extent permitted ALLOWED by this article, sections 20-281
and 20-284, section 20-286, subsections B, C and D, sections 20-287,

20-288, 20-289 and 20-289.01, section 20-290, subsection A and sections
20-291, 20-292, 20-295, 20-296, 20-297, 20-299, 20-301 and 20-302 apply to
adjusters.

B. AN ADJUSTER MAY NOT PROPOSE OR ATTEMPT TO PROPOSE TO ANY INSURED
THAT THE ADJUSTER REPRESENTS THE INSURED WHILE A LOSS-PRODUCING OCCURRENCE
IS CONTINUING AT THE DAMAGED PREMISES OR WHILE THE FIRE DEPARTMENT OR ANY
OTHER PUBLIC SAFETY SERVICE IS ENGAGED IN A PUBLIC SAFETY EMERGENCY
RESPONSE AT THE DAMAGED PREMISES.
House Amendments to S.B. 1206

OmNMNOORWDNY FE

C. AN ADJUSTER MAY NOT PARTICIPATE EITHER DIRECTLY OR INDIRECTLY,
INCLUDING AS CONTRACTOR OR _ SUBCONTRACTOR, IN THE RESTORATION,
RECONSTRUCTION OR REPAIR OF ANY DAMAGED PREMISES OR PROPERTY THAT IS THE
SUBJECT OF A CLAIM ADJUSTED BY THE ADJUSTER.

D. AN ADJUSTER MAY NOT ENDORSE PAYMENT INSTRUMENTS ISSUED TO AN
INSURED AS A RESULT OF A CLAIM ARISING UNDER AN INSURANCE CONTRACT WITHOUT
THE INSURED'S DIRECT ENDORSEMENT AND SIGNATURE.

Sec. 3. Section 32-1158.02, Arizona Revised Statutes, is amended to
read:

32-1158.02. Residential construction contracts

A. For residential repair or replacement of damage resulting
directly from a catastrophic storm in a specific area that is designated
by an insurer, in addition to the requirements of section 32-1158, a
licensed contractor who enters into a contract for the repair or
replacement of a residential roof or other repair or replacement within
the scope of the regulation of this chapter with a purchaser who resides
in the residence or who intends to reside in the residence after the
completion of the contract shall include IN THE CONTRACT at least the
following provisions:

1. A statement in at least ten-point bold type in substantially the
following form: “You may cancel this contract at any time within
seventy-two hours after you have been notified that your insurer has
denied your claim to pay for the goods and services to be provided under
this contract."

2. A statement in at least ten-point bold type in substantially the
following form: “You may cancel this contract at any time, for any
reason, within four business days after signing this contract."

3. A copy of a repair estimate that contains the following
disclosures:

(a) A precise description and location of all damage claimed on the
repair estimate.

(b) For roofing repair or replacement, a detailed description of
the work to be done, including the square footage of the repair area or
the replacement area.

(c) If the damaged areas are not included in the repair estimate, a
specification of those areas and any reason for their exclusion from the
repair estimate.

(d) Whether or not the property was inspected before’ the
preparation of the estimate and the nature of that inspection,
specifically whether the roof was physically accessed.

(e) That a contractor has made no assurances that the claimed loss
will be covered by an insurance policy.

(f) That the policyholder is responsible for payment for any work
performed if the insurer should deny payment or coverage for any part of
the loss.

B. A residential owner of a property or casualty insurance policy
has the right to cancel the contract described in subsection A of this

House Amendments to S.B. 1206

ANAT HRWNMY FE

section within seventy-two hours after the insured owner has been notified
by the insurer that the claim has been denied.

C. In addition to the right prescribed in subsection B of this
section, the insured owner of a residence has the right to cancel the
contract described in subsection A of this section for any reason within
four business days after signing the contract. A cancellation shall be
evidenced by the insured owner giving written notice of cancellation to
the contractor's address stated in the contract. Notice of cancellation
does not need to be in a particular form, except that the notice must
indicate in writing the intent of the insured owner not to be bound by the
contract.

D. Within ten days after a contract has been canceled pursuant to
this section, the contractor must tender to the insured owner any payments
made by the insured owner and any note or other evidence of indebtedness,
except that if the contractor has performed any emergency services, the
contractor is entitled to receive reasonable compensation for the services
if the insured owner has received a detailed description and itemization
of the charges for those services.

E. The down payment section on the execution of a contract entered
into pursuant to this section shall not require more than fifty per—cent
PERCENT of the total contract.

F. Any changes, additions or deletions to the work order specified
in the original contract shall be included in a written change order that
is signed by the homeowner.

G. A contractor shall immediately notify and disclose in writing to
the residential owner of a property or casualty insurance policy any
cancellation of the contractor's workers' compensation coverage.

H. A contractor's failure to comply with this section is grounds
for license suspension or revocation pursuant to section 32-1154.

I. An individual or contractor who prepares a repair estimate for
post-storm repair or replacement services as described in subsection A of
this section in anticipation of making an insurance claim must disclose
the following information to the insured owner:

1. A precise description and location of all damage claimed or
included on the repair estimate.

2. Documentation to support the damage claimed on the estimate,
including photographs, digital images or another medium.

3. A detailed description and itemization of any emergency repairs
already completed by the contractor.

4. If damaged areas are not included in the repair estimate, a
specification of those areas and any reason for their exclusion from the
repair estimate.

5. A provision stating whether vur—rot the property was inspected
before the preparation of the estimate, if the contract is a contract for
repair or replacement of a roof, and whether the roof was physically
accessed.
House Amendments to S.B. 1206

AN anOF WM FE

6. A provision stating that the contractor has made no assurances
that the claimed loss will be covered by an insurance policy.

J. If an insured owner submits a claim with the insurer for
residential repair or replacement pursuant to this section, the contractor
MAY NOT ADVERTISE TO PAY, ISSUE PAYMENT FOR OR PROMISE TO PAY ANY
DEDUCTIBLE PAYABLE ON THE POLICY OR ISSUE ANY REBATE DEDUCTIBLE EITHER
DIRECTLY OR INDIRECTLY AND may not begin work on the repair or replacement
until the insurer approves or denies the claim, except if the work is
necessary to prevent further loss.

K. A person who is not licensed pursuant to this chapter and who is
not exempt from licensure pursuant to this chapter may not bring a private
cause of action to recover monies from a homeowner for any residential
repair or replacement that the person does pursuant to this section.

L. Except as otherwise provided in this subsection, a contractor
providing post-storm repair or replacement contracting services shall not
ALSO act AS AN ADJUSTER ON BEHALF OF THE INSURED FOR THE CLAIM, SHALL NOT
ACT on behalf of an insured owner in OTHERWISE negotiating for the
settlement of a claim for loss or damage under any policy of insurance
covering the insured owner's residence and shall not make any assurance
that the proposed repair or replacement contracting services will be
covered by an insurance policy. The contractor may communicate with an
insurer to assist in any claim disputes, including actual damages
incurred, if both of the following apply:

1. The insured owner gives the contractor permission.

2. The contractor is not compensated for the communication.

M. With a policyholder's written consent, an insurer providing
coverage for a post-storm residential repair or replacement may issue its
check in the name of both the policyholder and the contractor with the
contractor's license number issued pursuant to this chapter noted on the
check.

N. This section strat? DOES not limit the following individuals from
contacting and negotiating with the insured owner:

1. A government official WHO IS engaged in the performance of
official duties.

2. An attorney WHO IS engaged in the performance of professional
duties.

3. Licensed insurers and licensed insurance producers while engaged
in the performance of their duties in connection with insurance
transactions.

4. Any salaried office employee WHO IS performing exclusively
clerical or administrative duties and who is not compensated in any manner
for securing contracts related to post-storm residential repair or
replacement contracting.

5. Photographers, estimators, appraisers or engineers WHO ARE
employed exclusively for the purpose of furnishing technical assistance.

6. A private investigator who is licensed pursuant to chapter 24 of
this title.
House Amendments to S.B. 1206

OnNOA OH WHF

7. A full-time salaried employee of a property owner or property
management company who is retained by a property owner, who has not been
hired for the purpose of handling a specific claim resulting from a fire
or casualty loss and who acts at the sole discretion of the property owner
or management company regarding a claim related to the owner's property.

0. A CONTRACTOR MAY NOT PROPOSE TO ANY PERSON THAT THE PERSON SIGN
AN AGREEMENT FOR WORK ON ANY DAMAGED PREMISES WHILE A_ LOSS-PRODUCING
OCCURRENCE IS CONTINUING AT THE DAMAGED PREMISES OR WHILE THE FIRE
DEPARTMENT OR ANY OTHER PUBLIC SAFETY SERVICE IS ENGAGED IN A_ PUBLIC
SAFETY EMERGENCY RESPONSE AT THE DAMAGED PREMISES. [THI BSECTION DOES
NOT PREVENT A CONTRACTOR FROM PROVIDING SERVICES TO A HOMEOWNER IN ORDER
TO MAINTAIN OR RESTORE ESSENTIAL SERVICES TO THE PREMISES OR TO PREVENT

FURTHER IMMEDIATE DAMAGE TO THE PREMISES. ]

Enroll and engross to conform
Amend title to conform

JEFF WENINGER

1206WENINGER. docx
03/20/2026

08:30 AM

PB/1s
130YDYSKN

H:
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1206

DATE March 24, 2026 MOTION: DP A

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Carter N

Va
~

Cavero

Diaz

Hendrix

\IMAY | AN

Villegas

Volk

Fl
Willoughby Pd

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

din hes

a a 2s We

APPROVED: sogayre SECRETARY
Uhr

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. |S
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DP 6-0-1-0 | Third Reading 25-3-2-0-0

SB 1563: barbering and cosmetology board; continuation
Sponsor: Senator Dunn, LD 25
Committee on Commerce

Overview
Reduces the statutory caps on certain fees established by the Arizona Barbering and
Cosmetology Board (Board) and continues the Board for eight years.

History
In 2021, the Legislature consolidated the Arizona Board of Cosmetology and the Arizona

Board of Barbers as the Arizona Barbering and Cosmetology Board (Laws 2021, Chapter
334). The Board is responsible for: 1) adopting rules for the sanitary and safety standards for
the practices of barbering, cosmetology, aesthetics, nail technology and hairstyling; 2)
prescribing minimum school curriculum requirements for barbers, cosmetologists,
aestheticians, nail technicians, hairstylists and instructors; 3) issuing licenses and
registrations; 4) investigating complaints and taking disciplinary actions; 5) administering
and grading practical and written examinations; and 6) inspecting establishments and
schools. The Board consists of the following nine Governor-appointed members: 1) one
cosmetologist; 2) two school owners who do not own the same school and one of whom own a
school for cosmetology and one for barbering; 3) five public members; and 4) one barber (Title
32, Chapter 5, A.R.S.).

The House of Representatives Commerce Committee of Reference (COR) met on January 13,
2026, to review the Auditor General's Performance Audit and Sunset Review Report (25-107)
of the Board, consider the Board's responses to the statutorily-outlined sunset factors and
receive public testimony.

The Commerce COR recommended that the Board be continued for six years.

The Board is statutorily set to terminate on July 1, 2026, unless legislation is enacted for its
continuation (A.R.S. § 41-3026.06).

Provisions

Board Fees
1. Decreases the statutory caps on associated Board fees:

a. from $100 to $80, onetime fee for application of an initial personal license;

b. from $200 to $100, onetime fee for application for a personal reciprocity or universal
license;

c. from $250 to $200, application for an establishment license, including change of name,
ownership and location;

d. from $100 to $80, for personal license renewal;

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

Initials SB 1563
3/21/2026 Page 1 Commerce

ATTACHMENT |C
from $150 to $100, for personal license delinquent renewal;

from $100 to $80, for establishment license renewal;

from $150 to $100, for establishment license delinquent renewal;
from $500 to $400, for school license renewal;

from $600 to $500, for school license delinquent renewal; and

from $100 to $75, for Board-administered educational classes. (Sec. 1)

Sr poe pho

2. Removes the $150 fee for establishment license after a change of location. (Sec. 1)

3. Allows the Board to establish and collect delinquent penalties for each year or portion of
a year for which the license was expired, rather than inactive. (Sec. 1)

4. Clarifies the application for school license and initial inspection fee includes a name
change. (Sec. 1)

Continuation
5. Continues, retroactive to July 1, 2026, the Board for eight years until July 1, 2034. (Sec.
4, 5, 7)

6. Repeals the Board on January 1, 2035. (Sec. 5)

Miscellaneous
Contains a purpose statement relating to the Board. (Sec. 6)

8. Restates and makes clarifying changes to statute relating to applications and
qualifications for Board licensure. (Sec. 2, 3)

Initials SB 1563
3/21/2026 Page 2 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. __ SB 1563

DATE March 24, 2026 MOTION: | ) E

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

ATS

Cavero

Carter N wa
Vai

Diaz

ail
Hendrix al
4

Villegas

Volk va

Willoughby Lt

Wilmeth a

Way, Vice-Chairman

Weninger, Chairman al
TI oO | #

— Mb, Dudes
COMMITTEE SEGRETARY

APPROVED:
JEFF WENINGER, Chairman

MICHAEL WAY, Vice-Chairman

ATTACHMENT. |
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: FIN DP 4-2-1-0| Third Read 16-13-1-0-0

SB1649: digital assets strategic reserve fund
Sponsor: Senator Finchem, LD 1
Committee on Commerce

Overview
Establishes the Digital Assets Strategic Reserve Fund (Fund), to be managed by the State
Treasurer for the custody, investment and lending of state-held digital assets.

History
The State Treasurer is authorized to manage the investment and distribution of public

monies for state and local agencies. The State Treasurer administers the Bitcoin and Digital
Assets Reserve Fund which consists of any airdrops or rewards from staking the digit asset
by a qualified custodian. The State Treasurer is responsible for depositing 10% of the digital
assets held in the fund in the State General Fund, excluding bitcoin (A.R.S. § 41-180).

Provisions
1. Establishes the Fund consisting of digital assets that are held by, confiscated by or
surrendered to this State. (Sec. 1)

2. Requires the State Treasurer to administer the Fund and deposit digital assets in the
Fund through the use of a secure custody solution by a qualified custodian or in a form of
an exchange-traded product issued by an investment company registered in Arizona. (Sec.

1)

3. Authorizes the State Treasurer to:
a. invest the total amount of monies deposited in the Fund in any fiscal year; and
b. loan digital assets from the Fund to generate additional returns if the loan does not
increase any financial risks to this State. (Sec. 1)

4, Expands the definition of qualified custodian, as used in statute relating to abandoned
property, to include a technology provider of a secure custody solution. (Sec. 2)

Defines pertinent terms. (Sec. 1, 2)
Contains a legislative findings clause. (Sec. 3)

Makes a technical change. (Sec. 2)

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

Initials PB/ZE SB 1649
3/18/2026 Page 1 Commerce

ATTACHMENT | 8
Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1649

OnNaTFPWDNMPE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1649
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Title 23, chapter 1, article 1, Arizona Revised
Statutes, is amended by adding section 23-111, to read:

23-111. Industrial commission of Arizona; department of
economic. security public assistance; list _ of
employees who receive public assistance; employer
list: public postin

A. ON OR BEFORE JANUARY 1, 2027 AND EACH YEAR THEREAFTER, THE
INDUSTRIAL COMMISSION OF ARIZONA AND THE DEPARTMENT OF ECONOMIC SECURITY
SHALL PUBLISH ON THE INDUSTRIAL COMMISSION'S AND THE DEPARTMENT OF
ECONOMIC SECURITY'S PUBLICLY ACCESSIBLE WEBSITES A LIST OF THE TOP FIFTY
EMPLOYERS IN THIS STATE WITH THE HIGHEST NUMBER OF EMPLOYEES WHO RECEIVE
MEDICAID OR OTHER PUBLIC ASSISTANCE. THE REPORT MUST INCLUDE:

1. THE NAME AND ADDRESS OF THE EMPLOYER.

2. THE SIZE OF THE EMPLOYER.

3. THE NUMBER OF PUBLIC ASSISTANCE PROGRAM BENEFICIARIES WHO ARE AN
EMPLOYEE OF THAT EMPLOYER AND THE TYPE OF ASSISTANCE EACH EMPLOYEE
RECEIVES.

4. THE NUMBER OF PUBLIC ASSISTANCE BENEFICIARIES WHO ARE A SPOUSE
OR DEPENDENT OF AN EMPLOYEE OF THE EMPLOYER AND THE TYPE OF ASSISTANCE
EACH SPOUSE OR DEPENDENT RECEIVES.

5. IF AVAILABLE, THE PUBLIC WELFARE PROGRAM COSTS TO THIS STATE FOR
EMPLOYED INDIVIDUALS AND ENROLLED DEPENDENTS.

6. IF AN EMPLOYER OFFERS HEALTH BENEFITS TO THE EMPLOYER'S
EMPLOYEES, THE NUMBER OF EMPLOYEES WHO RECEIVE PUBLIC ASSISTANCE.

B. THE LIST MAY NOT INCLUDE CONFIDENTIAL INFORMATION THAT INCLUDES
THE NAMES OF THE INDIVIDUALS OR’ BENEFICIARIES WHO RECEIVE PUBLIC
ASSISTANCE.

C. THE DEPARTMENT OF ECONOMIC SECURITY SHALL COMPILE AND SEND ALL
DATA THAT IS RELATED TO SUBSECTION A OF THIS SECTION TO THE INDUSTRIAL
COMMISSION OF ARIZONA."

Amend title to conform

CESAR AGUILAR

1649AGUILAR SE.docx
03/20/2026

12:56 PM

H: NL/ra

130HTRWWN

H of Verbal

Withdrawt

Analysts inittals

ATTACHMENT 14

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

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILLNO. SB 1649

DATE March 24, 2026

MOTION: yE

PASS

AYE NAY

PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Diaz

Hendrix

NN

Villegas

Volk

Me
Via

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

\ pMar—m..

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

BINNS

=

fs ra

Tn, Daler

COMMITTEE SECRETARY

ATTACHMENT___2O

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: FIN DP 4-2-1-0 | Third Reading 17-12-1-0-0

SB1290: agricultural property; inspections; notice.
Sponsor: Senator Shamp, LD 29
Committee on Commerce

Overview
Establishes notification and reporting requirements for property inspections by the Arizona
Department of Revenue (DOR) and county assessors.

History
DOR is required to investigate property valuations and any matters relating to property

taxes and to require the production of any private or public records relating to those
valuations or property taxes (A.R.S. § 42-11053).

Additionally, county assessors are required to: 1) conduct on-site inspections of 25% of the
agricultural-use property annually; 2) make on-site inspection and appraisal of these
properties within every four years; and 3) notify property owners, if determined by the county
assessor, that the property does not meet the criteria for agricultural classification (A.R.S. §
42-12158).

Provisions

Department of Revenue; Property Valuations

1. Requires DOR, in investigating property valuations relating to property taxes, to:
a. notify the owner or possessor of the property that an inspection will occur and provide
the date of the inspection; and
b. provide to the owner or possessor a copy of the inspection report. (Sec. 1)

County Assessor; On-Site Inspections

2. Requires the county assessor, in making an on-site inspection for property classification,
to:
a. notify the property owner before an inspection occurs and provide the date of the
inspection; and
b. provide to the property owner a copy of the inspection report. (Sec. 2)

3. Specifies a property that meets the agricultural classification criteria is not subject to an
on-site inspection for the three-year period after the most recent on-site inspection, unless
the property owner files a change in the use notice or there is a:

a. split of the property;
b. change in ownership or lease of the property; or
c. taxable improvement made to the property. (Sec. 2)

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

Initials PB/ZE SB 1290
3/19/2026 Page 1 Commerce

ATTACHMENT 2 |
4, Authorizes the county assessor to develop a standardized form for inspection reports. (Sec.
2)

Miscellaneous

5. Stipulates DOR or the county assessor or the assessor's deputies are not required to
provide the inspection notice by certified mail. (Sec. 1, 2)

Initials PB/ZE SB 1290

3/19/2026 Page 2 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1290

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1290
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 33-1804, Arizona Revised Statutes, is amended
to read:

33-1804. Open meetings: exceptions: notice; agenda: policy

statement

A. Notwithstanding any provision in the declaration, bylaws or
other documents to the contrary, all meetings of the members' association
and the board of directors, and any regularly scheduled committee
9 meetings, are open to all members of the association or any person
10 designated by a member in writing as the member's representative and all
11 members or designated representatives so desiring shall be allowed to
12 attend and speak at an appropriate time during the deliberations and
13 proceedings. The board may place reasonable time restrictions on those
14 persons speaking during the meeting but shall allow a member or member's
15 designated representative to speak once after the board has discussed a
16 specific agenda item but before the board takes formal action on that item
17 in addition to any other opportunities to speak. The board shall provide
18 for a reasonable number of persons to speak on each side of an issue.
19 Persons attending may audiotape or videotape those portions of the
20 meetings of the board of directors and meetings of the members that are
21 open. The board of directors of the association shall not require advance
22 notice of the audiotaping or videotaping and may adopt reasonable rules
23 governing the audiotaping and videotaping of open portions of the meetings
24 of the board and the membership, but such rules shall not preclude such
25 audiotaping or videotaping by those attending, unless the board audiotapes
26 or videotapes the meeting and makes the unedited audiotapes or videotapes
27 available to members on request without restrictions on their use as
28 evidence in any dispute resolution process. If a board records a meeting
29 that is open to the members, the board shall keep a copy of the recording
30 for at least six months and make the unedited recording available to any
31 member on request in compliance with section 33-1805, subsection A. Any
32 portion of a meeting may be closed only if that closed portion of the
33 meeting is limited to consideration WITHOUT ACTION of one or more of the

34 following:
35 1. Legal advice from an attorney for the board or the association.
36 On final resolution of any matter for which the board received legal
37 advice or that concerned pending or contemplated litigation, the board may
38 disclose information about that matter in an open meeting except for

ONDA HP WDM FE

Adopted _ # of Verbals

-ailec Withdrawn

Not Offered Analysts Initials

ATTACHMENT 22
House Amendments to S.B. 1290

OOn DO PWM FP

PPP HP SW WW WW WWW & WD PM PP PMN PDH FR Be Re eH eR ee
SPwWNrNrF DW AN ANON A WNMEF DOO MAIDA HPWH OHM ANA PWD eE OC

matters that are required to remain confidential by the terms of a
settlement agreement or judgment.

2. Pending or contemplated litigation.

3. Personal, health or financial information about an individual
member of the association, an individual employee of the association or an
individual employee of a contractor for the association, including records
of the association directly related to the personal, health or financial
information about an individual member of the association, an individual
employee of the association or an individual employee of a contractor for
the association.

4, Matters relating to the job performance of, compensation of,
health records of or specific complaints against an individual employee of
the association or an individual employee of a contractor of the
association who works under the direction of the association.

5. Discussion of a member's appeal of any violation cited or
penalty imposed by the association except on request of the affected
member that the meeting be held in an open session.

B. Notwithstanding any provision in the community documents, a1]
meetings of the members’ association and the board shali be held in this
state. A meeting of the members’ association shall be held at least once
each year. Special meetings of the members’ association may be called by
the president, by a majority of the board of directors or by members
having at least twenty-five percent, or any lower percentage specified in
the bylaws, of the votes in the association. Not fewer than ten or more
than fifty days in advance of any meeting of the members the secretary
shall cause notice to be hand delivered or sent prepaid by United States
mail to the mailing address for each lot, parcel or unit owner or to any
other mailing address designated in writing by a member. The notice shali
state the date, time and place of the meeting. A notice of any annual,
regular or special meeting of the members shali also state the purpose for
which the meeting is called, including the general nature of any proposed
amendment to the declaration or bylaws, changes in assessments that
require approval of the members and any proposal to remove a director or
an officer. The secretary shall also provide an agenda for any meeting of
the members’ association by hand delivery, mai}, website posting, email or
other electronic means or posting at a community center or other similar
location. The failure of any member to receive actual notice of a meeting
of the members or the meeting agenda does not affect the validity of any
action taken at that meeting.

C. Before entering into any closed portion of a meeting of the
board of directors, or on notice of a meeting under subsection D of this
section that will be closed, the board shali identify the paragraph under
subsection A of this section that authorizes the board to close the
meeting.
House Amendments to S.B. 1290

On AO DS WH HE

PPP PAH BPW WWW WWW WW WMH PRM HY HY YD DYD BE ee ee epee op
OOPrWNHE OHOONMDOTRWNHHE DH ONDA EBWNHKF OW ONDA OT RWHH OW

D. Notwithstanding any provision in the declaration, bylaws or
other community documents, for meetings of the board of directors that are
held after the termination of declarant control of the association, notice
to members of meetings of the board of directors and meeting agendas shall
be given at least forty-eight hours in advance of the meeting by
newsletter, conspicuous posting or any other reasonable means as
determined by the board of directors. An affidavit of notice by an
officer of the corporation is prima facie evidence that notice was given
as prescribed by this section. Notice to members of meetings of the board
of directors is not required if emergency circumstances require action by
the board before notice can be given. Any notice of a board meeting shall
state the date, time and place of the meeting. The failure of any member
to receive actual notice of a meeting of the board of directors or a
meeting agenda does not affect the validity of any action taken at that
meeting.

E. Notwithstanding any provision in the declaration, bylaws or
other community documents, for meetings of the board of directors that are
held after the termination of declarant control of the association, all of
the following apply:

1. The agenda shall be available in advance for all members
attending.

2. An emergency meeting of the board of directors may be called to
discuss business or take action that cannot be delayed for the forty-eight
hours required for notice. At any emergency meeting called by the board
of directors, the board of directors may act only on emergency matters.
The minutes of the emergency meeting shall state the reason necessitating
the emergency meeting. The minutes of the emergency meeting shall be read
and approved at the next regularly scheduled meeting of the board of
directors.

3. A quorum of the board of directors may meet by means of a
telephone conference if a speakerphone is available in the meeting room
that allows board members and association members to hear all parties who
are speaking during the meeting.

4, Any quorum of the board of directors that meets informally to
discuss association business, including workshops, shall comply with the
open meeting and notice provisions of this section without regard to
whether the board votes or takes any action on any matter at that informal
meeting.

F, It is the policy of this state as reflected in this section that
all meetings of a planned community, whether meetings of the members‘
association or meetings of the board of directors of the association, be
conducted openly and that notices and agendas be provided in advance for
those meetings that contain the information that is reasonably necessary
to inform the members of the matters to be discussed or decided and to
ensure that members have the ability to speak after discussion of agenda
items, but before a vote of the board of directors or members is taken.

-3-
House Amendments to S.B. 1290

An mh WM Re

Toward this end, any person or entity that is charged with the
interpretation of these provisions, including members of the board of
directors and any community manager, shall take into account this
declaration of policy and shall construe any provision of this section in
favor of open meetings."

Amend title to conform

NEAL CARTER

1290CARTER N SE.docx
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1:29 PM

C: MR

130KDIKGC

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1290

OANanFWN FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1290
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Title 44, chapter 10, article 7, Arizona Revised
Statutes, is amended by adding section 44-1535, to read:

44-1535. Goods and services: pricing; unlawful practice;

state of emergency; digital shelf label
prohibition; attorney general powers; civil
penalty; definitions

A. A PERSON THAT ADVERTISES, DISPLAYS OR OFFERS A PRICE FOR GOODS
OR SERVICES IN THIS STATE SHALL:

1. INCLUDE ALL MANDATORY FEES OR CHARGES IN THE PRICE.

2. DESCRIBE A CLEAR PROCESS ON A RECEIPT AFTER PURCHASE RELATING TO
REFUNDS, INCLUDING WHETHER THE TOTAL AMOUNT PAID MAY BE REFUNDED AND THE
TIME FRAME FOR A REFUND.

B. IF THE GOVERNOR DECLARES A STATE OF EMERGENCY PURSUANT TO TITLE
26, CHAPTER 2, THE CURRENT PRICE OF GOODS OR SERVICES MAY NOT INCREASE
MORE THAN TEN PERCENT IMMEDIATELY BEFORE THE GOVERNOR DECLARED A STATE OF
EMERGENCY.

C. A BUSINESS IN THIS STATE MAY NOT USE DIGITAL SHELF LABELS.

D. FAILURE TO COMPLY WITH THIS SECTION IS AN UNLAWFUL PRACTICE
PURSUANT TO SECTION 44-1522. THE ATTORNEY GENERAL MAY INVESTIGATE AND
TAKE APPROPRIATE ACTION AS PRESCRIBED BY THIS ARTICLE, INCLUDING SEEKING A
TEMPORARY OR PERMANENT INJUNCTION TO CEASE THE UNLAWFUL PRACTICE. A
PERSON THAT VIOLATES THIS SECTION IS SUBJECT TO A CIVIL PENALTY NOT TO
EXCEED $5,000.

E. FOR THE PURPOSES OF THIS SECTION:

1. “DIGITAL SHELF LABEL":

(a) MEANS A FORM OF DIGITAL WIRELESS DISPLAY TECHNOLOGY THAT HAS
THE CAPABILITY TO DISPLAY THE LABEL AND TO CHANGE THE PRICE REMOTELY.

(b) INCLUDES DIGITAL PRICE TAGS OR ANY OTHER SIMILAR TECHNOLOGY.

2. “MANDATORY FEES OR CHARGES":

(a) INCLUDES A FEE OR SURCHARGE TO WHICH ANY OF THE FOLLOWING
APPLIES:

(i) THAT MUST BE PAID TO PURCHASE THE ADVERTISED GOODS OR SERVICES.

(ii) THAT IS NOT REASONABLY AVOIDABLE.

(iii) FOR ANY GOODS OR SERVICES THAT A REASONABLE CONSUMER WOULD
EXPECT TO BE INCLUDED WITH THE PURCHASE OF THE ADVERTISED GOODS OR
SERVICES.

(b) DOES NOT INCLUDE TAXES IMPOSED BY THE GOVERNMENT."

Amend title to conform

CESAR AGUILAR

1290AGUILAR SE.docx \dopte # of Verbal
03/20/2026 tte hina

12:28 PM

H: NL/ra Not Offere: Analysts Initial:

130TGQNPT

ATTACHMENT 2 3
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILLNO. SB 1290

DATE

March 24,

2026

motion: DPA SIE

PASS

AYE

NAY PRESENT | ABSENT

Aguilar

Blackman

\

Carter N

Cavero

vw
wil

Diaz

Hendrix

Villegas

Volk

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

Yuin

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

AANA ANS

Z e) Z

aw seas Fav

ATTACHMENT. 24
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DP 7-0-0-0 | Third Reading 18-9-3-0-0

SB 1670: municipalities; counties; occupation; licensure; prohibition
Sponsor: Senator Bolick, LD 2
Committee on Commerce

Overview

Preempts the regulation of persons subject to Registrar of Contractors (ROC) licensure and
allows municipalities and counties (local governments) to issue journeyman licenses to
individuals in specified occupations.

History
The ROC licenses and regulates residential and commercial contractors. The ROC is required

to: 1) classify and qualify applicants for a license; 2) change the license classification in the
case of a title reclassification; 3) conduct investigations to protect the health and safety of the
public; and 4) establish written examinations to protect the health and safety of the public
(Title 32, Chapter 10, Article 1).

Separate licenses are issued for commercial and residential work, and dual licenses that
cover both commercial and residential, for each trade or field of a construction science
profession. The ROC defines residential contracting as constructing, altering, repairing,
adding to, subtracting from, improving, moving wrecking or demolishing any residential
structure and any appurtenances on or within residential property lines. Residential
construction also includes any appurtenances on or within residential property lines,
connections to utility services and sewer lines, the installation of meters, and any mechanical
or structural services for residential structures. Commercial contracting is considered to be
anything other than residential contracting (License Classifications: ROC).

Provisions
1. Asserts the licensure of persons subject to ROC licensure is of statewide concern and is

not subject to further regulation by a local government. (Sec. 1, 2)

2. Stipulates a local government cannot require a person who is subject to ROC licensure to
obtain a journeyman license. (Sec. 1, 2)

3. Allows local governments to require licensure for, and issue journeyman licenses to,
individuals in the following occupations:

plumbing;

pipe fitting;

mechanical trades;

HVAC installation; and

electrical or alarm system trades. (Sec. 1, 2)

eno e

4. Defines licensure and occupation. (Sec. 1, 2)

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

Initials PB/AI SB 1670
3/18/2026 Page 1 Commerce

ATTACHMENT 25

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1670

ONanf WDM Ee

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1670
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Title 44, chapter 9, Arizona Revised Statutes, is
amended by adding article 27, to read:

ARTICLE 27. PRICE REGULATIONS

44-1383. Definitions

IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. “ALGORITHM" MEANS A COMPUTATIONAL PROCESS THAT USES A SET OF
RULES TO DEFINE A SEQUENCE OF OPERATIONS.

2. “ALGORITHMIC DEVICE":

(a) MEANS A COMPUTATIONAL PROCESS, MACHINE PROGRAM OR SOFTWARE
THAT USES ONE OR MORE ALGORITHMS, INCLUDING A COMPUTATIONAL PROCESS
DERIVED FROM MACHINE LEARNING OR OTHER ARTIFICIAL INTELLIGENCE TECHNIQUES,
THAT PROCESSES OR CALCULATES NONPUBLIC COMPETITOR DATA TO ADVISE A
LANDLORD ON HOW MUCH RENT TO CHARGE.

(b) DOES NOT INCLUDE A REPORT PUBLISHED PERIODICALLY BY A TRADE
ASSOCIATION THAT RECEIVES RENTER DATA IN AN AGGREGATED AND ANONYMOUS
MANNER. FOR THE PURPOSES OF THIS SUBDIVISION, PERIODIC REPORT DOES NOT
INCLUDE REPORTS PUBLISHED THAT ARE PUBLISHED MORE THAN ONE TIME PER MONTH.

3. “COORDINATING FUNCTION" MEANS THE ABILITY TO:

(a) COLLECT THE FOLLOWING INFORMATION FROM TWO OR MORE PERSONS:

(i) HISTORICAL PRICES.

(ii) | CONTEMPORARY PRICES.

(iii) SUPPLY LEVELS.

(iv) CONTRACT TERMINATION.

(v) RENEWAL DATES FROM TWO OR MORE PERSONS.

(b) ANALYZE OR PROCESS INFORMATION PROVIDED IN SUBDIVISION OF THIS
PARAGRAPH BY USING A SYSTEM, SOFTWARE OR PROCESS THAT COMPUTES INFORMATION
OR USES INFORMATION TO TRAIN AN ALGORITHM.

(c) RECOMMEND ANY OF THE FOLLOWING:

{i) PRICES.

(ii) SUPPLY.

(iii) OUTPUT.

(iv) CONTRACT RENEWAL TERMS.

(v) OTHER CONTRACTUAL OR COMMERCIAL TERMS.

4. "COORDINATOR" MEANS A PERSON THAT SELLS, LICENSES THE USE OF OR
OPERATES AND SELLS THE OUTPUT THAT IS GENERATED FROM AN ALGORITHMIC DEVICE
THAT PERFORMS A COORDINATING FUNCTION FOR A RESIDENTIAL RENTAL PROPERTY
LANDLORD.

5. “DWELLING UNIT" HAS THE SAME MEANING PRESCRIBED IN SECTION

33-1310.

Adopte: # of Verbals

‘aile Withdraw:

Not Offere Analysts Initial:

ATTACHMENT 2.6

House Amendments to S.B. 1670

i
SCWMO ON DOF WDNY PP

SPREE HPPHPWWWWWWWWWWNNDNDNNDYNNNNNHPR HEE EE EE
PNDOFWNHRFOWODANDATAAWNHEF OHO ONDA BWNHHEOWODWNRDORWD EB

6. "LANDLORD" HAS THE SAME MEANING PRESCRIBED IN SECTION 33-1310 OR
33-1409.

7. “NONPUBLIC COMPETITOR DATA":

(a) MEANS INFORMATION THAT IS NOT WIDELY AVAILABLE OR EASILY
ACCESSIBLE TO THE PUBLIC.

(b) INCLUDES ANY OF THE FOLLOWING:

(i) ACTUAL RENTAL PRICES.

(ii) ORIGINAL RENTAL PRICE OFFERS.

(iii) REBATES AND DISCOUNTS OFFERED AND ACCEPTED.

(iv) ADDITIONAL CHARGES FOR AMENITIES OR ANY OTHER FEES THAT MAY BE
ASSESSED.

(v) RENTAL AVAILABILITY.

(vi) OCCUPANCY RATES.

(vii) LEASE START AND END DATES.

(viii) ANY OTHER SIMILAR DATA REGARDLESS OF WHETHER THE INFORMATION
IS RELATED TO A SPECIFIC COMPETITOR OR ANONYMIZED.

(ix) INFORMATION THAT IS PROVIDED BY ANOTHER PERSON THAT COMPETES
IN THE SAME MARKET OR RELATED MARKET.

8. “RENT" MEANS PAYMENTS MADE TO A LANDLORD OR THE LANDLORD'S
DESIGNED AGENT IN FULL CONSIDERATION FOR THE RENTED PREMISES.

9. “RENTAL AGREEMENT" MEANS ANY ORAL OR WRITTEN AGREEMENT BETWEEN A
LANDLORD AND A TENANT FOR THE USE AND OCCUPANCY OF RESIDENTIAL RENTAL
PROPERTY.

10. “RESIDENTIAL RENTAL PROPERTY":

(a) HAS THE SAME MEANING PRESCRIBED IN SECTION 33-1901.

(b) INCLUDES ANY OF THE FOLLOWING:

(i) DWELLING UNITS.

(ii) MOBILE HOME SPACES.

(iii) RECREATIONAL VEHICLE SPACES.

11. “TENANT MEANS THE PERSON ENTERING INTO A RENTAL AGREEMENT WITH
A LANDLORD.

44-1383.01. Algorithmic device use prohibited; attorney

general; enforcement: applicability

A. A COORDINATOR OR A LANDLORD OF RESIDENTIAL RENTAL PROPERTY MAY
NOT USE AN ALGORITHMIC DEVICE THAT USES NONPUBLIC COMPETITOR DATA TO
PERFORM A COORDINATING FUNCTION OF RESIDENTIAL RENTAL PROPERTY TO:

1. FACILITATE AN AGREEMENT BETWEEN TWO OR MORE LANDLORDS TO NOT
COMPETE FOR RESIDENTIAL AGREEMENTS.

2. SET OR ADJUST ANY OF THE FOLLOWING:

(a) RENTAL PRICES.

(b) RENEWAL TERMS.

(c) OCCUPANCY LEVELS.

(d) ANY OTHER TERM OR CONDITION THAT AFFECTS RESIDENTIAL RENTAL
PROPERTY.

B. THE USE OF AN ALGORITHMIC DEVICE IN VIOLATION OF THIS SECTION
CREATES A REBUTTABLE PRESUMPTION OF A CONTRACT OR CONSPIRACY TO RESTRAIN
TRADE OR COMMERCE:

1. AS AGAINST A COORDINATOR WHEN:

-2-

House Amendments to S.B. 1670

(a) THE COORDINATOR KNEW OR HAD REASON TO KNOW THAT ONE OR MORE OF
THE COORDINATOR'S CUSTOMERS COMPETED AS LANDLORDS IN THE SAME OR RELATED
MARKET AND INTENDED THAT THE ALGORITHMIC DEVICE OR THE ALGORITHMIC
DEVICE'S OUTPUT BE USED IN THAT MARKET.

(b) TWO OR MORE OF THE COORDINATOR'S CUSTOMERS ACTUALLY COMPETED AS
LANDLORDS IN THE SAME OR RELATED MARKET AND USED THE ALGORITHMIC DEVICE OR
THE ALGORITHMIC DEVICE'S OUTPUT.

2. AS AGAINST A LANDLORD, WHEN TWO OR MORE LANDLORDS USED THE SAME
ALGORITHMIC DEVICE OR THE ALGORITHMIC DEVICE'S OUTPUT WITHIN THE SAME OR
10 RELATED MARKET.

11 C. A PRESUMPTION PURSUANT TO SUBSECTION B OF THIS SECTION IS
12 REBUTTABLE BY CLEAR AND CONVINCING EVIDENCE ON A SHOWING THAT THE
13 COORDINATOR OR LANDLORD LACKED KNOWLEDGE AND COULD NOT HAVE REASONABLY
14 KNOWN THAT THE ALGORITHMIC DEVICE USED NONPUBLIC COMPETITOR DATA.

15 D. AN ACT OR PRACTICE IN VIOLATION OF THIS ARTICLE IS AN UNLAWFUL
16 PRACTICE UNDER SECTION 44-1522. THE ATTORNEY GENERAL MAY INVESTIGATE AND
17 TAKE APPROPRIATE ACTION AS PRESCRIBED BY CHAPTER 10, ARTICLE 7 OF THIS

OANDAHPWNH FE

18 TITLE.

19 E. THE PROVISIONS OF THIS ARTICLE ARE CUMULATIVE AND IN ADDITION TO
20 ALL OTHER RIGHTS, REMEDIES AND PENALTIES THAT MAY EXIST AT LAW OR IN
21 EQUITY.

22 F. THIS SECTION APPLIES TO:

23 1. A LANDLORD THAT HAS ANY COMBINATION OF FIVE OR MORE DWELLING

24 UNITS, MOBILE HOME SPACES OR RECREATIONAL VEHICLE SPACES THAT ARE RENTED
25 OR OFFERED FOR RENT AT ANY ONE TIME.

26 2. A COORDINATOR THAT EITHER SELLS OR LICENSES THE USE OF OR
27 OPERATES AND SELLS THE OUTPUT FROM AN ALGORITHMIC DEVICE TO ANY LANDLORD.
28 G. THIS ARTICLE DOES NOT APPLY TO:

29 1. THE USE OF AN ALGORITHMIC DEVICE THAT IS EXCLUSIVELY USED IN A
30 FEDERAL, STATE OR LOCAL GOVERNMENT SPONSORED HOUSING PROGRAM.

31 2. PUBLIC HOUSING PURSUANT TO TITLE 36, CHAPTER 12.

32 3. A LANDLORD WITH NOT MORE THAN FOUR OF ANY OF THE FOLLOWING:

33 (a) DWELLING UNITS.

34 (b) MOBILE HOME SPACES.

35 (c) RECREATIONAL VEHICLE SPACES.

36 4. A DORMITORY OR OTHER RESIDENTIAL PROPERTY THAT IS OWNED BY A
37 PUBLIC OR PRIVATE EDUCATIONAL OR TRAINING INSTITUTION.

38 5. OCCUPANCY BY A MEMBER OF A FRATERNAL OR SOCIAL ORGANIZATION.

39 6. TRANSIENT OCCUPANCY IN A HOTEL, MOTEL OR RECREATIONAL LODGING."

40 Amend title to conform

BETTY J. VILLEGAS

1670VILLEGAS SE.docx
03/20/2026

01:00 PM

H: NL/ra

130RHWANG

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE

March 24, 2026

SB 1670

MOTION: D E

PASS

AYE

NAY

PRESENT

ABSENT

Aguilar

Blackman

ak

Carter N

Cavero

VA
—

Diaz

Hendrix

Villegas

Volk

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

hWn—__

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

Oo

O

Ss

PAARNL ARAN

LLY

COMMITTEE SECRETARY

ATTACHMENT___Z.

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DPA 5-0-2-0 | Third Reading 26-3-1-0-0

SB1671: gaming; racing; boxing; conflict-of-interest continuation
Sponsor: Senator Bolick, LD 2
Committee on Commerce

Overview

Continues the Arizona Department of Gaming (ADG), Arizona Racing Commission (Racing
Commission) and the Arizona State Boxing & Mixed Martial Arts Commission (Boxing &
MMA Commission) for six years. Includes conflict-of-interest requirements.

History
Established in 1995, the ADG regulates and monitors tribal gaming activities in accordance

with Arizona tribal-state gaming compacts as required by federal law and authorized by
statute. The ADG's statutory responsibilities include: 1) licensing and regulation of event
wagering and fantasy sports contests; 2) supporting programs to reduce problem gambling;
3) overseeing live horse racing, harness racing, pari-mutuel and simulcast wagering; and 4)
providing staff support for the Racing Commission and Boxing & MMA Commission.

The Arizona Racing Commission regulates and supervises all racing meetings held and pari-
mutuel wagering conducted in Arizona. The Racing Commission is statutorily required to: 1)
issue racing dates; 2) prepare and adopt rules governing racing and pari-mutuel wagering;
3) conduct hearings on permit applications and rehearings on licensing and regulatory
decisions; and 4) conduct all review of applications to construct capital improvements at
racetracks,

The Boxing & MMA Commission is responsible for regulating and supervising all boxing,
kickboxing, tough man, and mixed martial arts events in Arizona, including issuing licenses
to referees, judges, matchmakers, promoters, trainers, ring announcers, timekeepers,
ringside physicians, inspectors, mixed martial arts combatants, boxers, managers and
seconds (Title 5, Chapter 1, 2, and 6, A.R.S.)

The House of Representatives Commerce Committee of Reference (COR) met on January 13,
2026, to review the Auditor General's Performance Audit and Sunset Review Report (25-106)
of the ADG, Racing Commission and Boxing & MMA Commission, consider the ADG's
responses to the statutorily-outlined sunset factors and receive public testimony.

The Commerce COR recommended that the ADG be continued for two years and that the
Racing Commission and Boxing & MMA Commission be continued for six years.

The ADG, Racing Commission and Boxing & MMA Commission are statutorily set to
terminate on July 1, 2026, unless continued by the Legislature (A.R.S. §§ 41-3026.04, 41-
3026.13, 41-3026.22).

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

Initials PB SB 1671
3/11/2026 Page 1 Commerce

ATTACHMENT 23
Provisions

1.

Arizona Department of Gaming
Requires ADG, by December 17 of each year, to submit all audits conducted by third party
auditors to the President of the Senate, the Speaker of the House of Representatives, and
the Governor. (Sec. 3)

Instructs ADG to create and implement a submission process and tracking system to
track and monitor complaints to make the submission process available on ADG's
website. (Sec. 4)

Requires ADG to submit an annual report to the President of the Senate, the Speaker of
the House of Representatives, and the Governor including information on the number of
complaints that were received and dismissed or resolved. (Sec. 4)

Requires ADG to review all independent audits conducted since 2021 to determine if
event wagering operators are paid the correct privilege fees and to correct any identified
overpayments or underpayments. (Sec. 10)

Conflict-Of-Interest Requirements
Requires the director, deputy director, executive director, commissioners and all
employees of the Division of Racing, the Boxing & MMA Commission and ADG to:
a. complete a conflict-of-interest disclosure form upon their initial appointment and
hiring; and
b. submit an updated form annually if any conflict-of-interest information has changed.
(Sec. 1, 2, 3)

Continuations
Continues, retroactive to July 1, 2026, the Racing Commission, the Boxing & MMA
Commission and ADG for six years until July 1, 2032. (Sec. 5, 6, 11)

Repeals the Racing Commission, the Boxing & MMA Commission and ADG on January
1, 2033. (Sec. 6)

Miscellaneous
Contains purpose statements relating to the Racing Commission, the Arizona State
Boxing & MMA Commission and ADG. (ec. 7, 8, 9)

Adds that failure for the Division of Racing employees to comply with completing and
submitting the conflict-of-interest information is grounds for dismissal. (Sec. 1)

Initials PB SB 1671
3/11/2026 Page 2 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.Bs 1671

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1671
(Reference to Senate engrossed bill)

Amendment instruction key:
(GREEN UND NIN BRACKETS] indicates text added to statute or

previously enacted session law.

(Green underlining in brackets] indicates text added to new session law

or text restoring existing law.

[GREEN-STRIKECUT-TH-BRACKETS] indicates new text removed from statute

or previously enacted session law.

(Green-strikevut—inrbrackets] indicates text removed from existing statute,
previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green—strikevut—inr-carets>> indicates a section removed from the bill.

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

2 Section 1. Section 5-101.01, Arizona Revised Statutes, is amended
3 to read:

4 5-101.01. Division of racing; director: qualifications: term:

5 deputy director: conflict of interest

6 A. There is established a division of racing within the department
7 of gaming.

8 B. The director shall administer the division. To be eligible for
9 appointment as director, a person must have a minimum of five years of
10 experience in business and administration and shall not have a financial
11 interest in a racetrack or in the racing industry in this state during
12 that person's appointment.

13 C. The director may establish the position of deputy director of
14 the division.

15 D. The position of deputy director, if applicable, is exempt from
16 title 41, chapter 4, articles 5 and 6. The deputy director, if
17 applicable, is eligible to receive compensation pursuant .to section
18 38-611.

19 E. Tte—provistoms—of Title 38, chapter 3, article 8, relating to
20 conflict of interest, appty APPLIES to the director and all. other
21 employees of the department.

22 F. Neither the director, any employee of the department nor any
23 member of the immediate family of the director or other employee of the
24 department may:

25 1. Have any pecuniary interest in a racetrack in this state or in
26 any stable, compound or farm licensed under this chapter.

27 2. Wager money at a racetrack enclosure or additional wagering
28 facility in this state or wager money on the results of any race held at a
29 racetrack enclosure in this state.

Adopted # of Verbals

‘aile Withdrawn

Not Offered Analysts Initials

ATTACHMENT Z.4
House Amendments to S.B. 1671

WOON OATH WNM HE

3. Hold more than a five percent interest in any entity doing
business with a racetrack in this state.

4. Have any interest, whether direct or indirect, in a license
issued pursuant to this chapter or in a licensee, facility or entity that
is involved in any way with pari-mutuel wagering. For the purposes of
this paragraph, “interest" includes employment.

G. THE DIRECTOR, THE DEPUTY DIRECTOR, IF APPLICABLE, AND ALL
EMPLOYEES OF THE DEPARTMENT SHALL COMPLETE A  CONFLICT-OF-INTEREST
DISCLOSURE FORM ON INITIAL APPOINTMENT AS DIRECTOR AND DEPUTY DIRECTOR, IF
APPLICABLE, AND ON HIRING AS A NEW EMPLOYEE. THE DIRECTOR, THE DEPUTY
DIRECTOR, IF APPLICABLE, AND ALL DEPARTMENT EMPLOYEES SHALL SUBMIT AN
UPDATED CONFLICT-OF- INTEREST DISCLOSURE FORM ANNUALLY IF ANY
CONFLICT-OF-INTEREST INFORMATION HAS CHANGED.

Gv dH. Failure to comply with subsection F OR G of this section is
grounds for dismissal.

tty I. For the purposes of subsection F of this section, "immediate
family" means a spouse or children who regularly reside in the household
of the director or other employee of the department.

Sec. 2. Section 5-223, Arizona Revised Statutes, is amended to
read:

5-223. Arizona state boxing and mixed martial arts
commission: appointment; terms; compensation;
conflict of interest: emergency ringside meetings

A. The Artzvona—state—boxing—and—nixedtnrarttat—arts commission
consists of three members appointed by the governor pursuant to section
38-211. The term of office of commissioners is three years. The term of
one member shall expire on the third Monday in January each year.

B. Two members of the commission constitute a quorum for conducting
business. A concurrence of two members is necessary to render a decision
by the commission. Emergency ringside meetings held immediately prior
BEFORE and subsequert—to AFTER a scheduled contest for the purpose of
determining whether there has been a violation of the rules and
regulations of the commission or this chapter are exempt from tte
provitstons—of title 38, chapter 3, article 3.1.

C. The commissioners shall receive compensation as determined
pursuant to section 38-611 for each day they act in their official
capacity, not to exceed one hundred days each year.

D. A commissioner shall not during the commissioner's term of
office promote, sponsor or have any financial interest in a combatant, a
boxing contest or in the premises leased for a boxing contest.

E. THE EXECUTIVE DIRECTOR, ALL COMMISSIONERS AND ALL DEPARTMENT AND
COMMISSION EMPLOYEES SHALL COMPLETE A CONFLICT-OF-INTEREST DISCLOSURE FORM
ON INITIAL APPOINTMENT AS A COMMISSIONER AND ON HIRING AS A NEW EMPLOYEE.
THE EXECUTIVE DIRECTOR, ALL COMMISSIONERS AND ALL EMPLOYEES SHALL SUBMIT
AN UPDATED CONFLICT-OF-INTEREST DISCLOSURE FORM ANNUALLY IF ANY
CONFLICT-OF-INTEREST INFORMATION HAS CHANGED.

House Amendments to S.B. 1671

OONDONHB WMH FE

Sec. 3. Section 5-604, Arizona Revised Statutes, is amended to
read:

5-604. Department of gaming; director; qualifications: term:

conflict of interest; grounds for dismissal

A. The department of gaming is established.

B. The governor shall appoint a director of the department of
gaming pursuant to section 38-211. The director serves at the pleasure of
the governor. To be eligible for appointment as director, a person shall
not have a financial interest in a gambling operation or in the gambling
industry in this state during the term of appointment. The governor may
appoint an acting director if there is a vacancy in the office.

C. The director and all other employees of the department are
subject to title 41, chapter 4, article 4. The director is eligible to
receive compensation pursuant to section 38-611.

D. The employment or financial interest of any relative to the
first degree of consanguinity or affinity to the director or any other
employee of the department in the gambling industry in this state is
grounds for the dismissal of the director or employee of the department.

E. THE DIRECTOR AND ALL EMPLOYEES OF THE DEPARTMENT SHALL COMPLETE
A CONFLICT-OF-INTEREST DISCLOSURE FORM ON INITIAL APPOINTMENT AS DIRECTOR
AND ON HIRING AS A NEW EMPLOYEE. THE DIRECTOR AND ALL DEPARTMENT
EMPLOYEES SHALL SUBMIT AN UPDATED CONFLICT-OF-INTEREST DISCLOSURE FORM
ANNUALLY IF ANY CONFLICT-OF-INTEREST INFORMATION HAS CHANGED.

[TOR ER BEF ERE BEC EMBER 17-6 EACH HEARS THE BEPARFIEN AR STALE
SUBMTT—ATE—BEPARTHENTAUBTAS THAT ARE EON BUETFER— BY FHE RB PARE AUBEFOR
TO—THE— PRESTBENT— 6F— THE SENATE FE SPEAKER OF —_ FE HH 80S EOF
REPRESENTATIVES AND —FHE-GOVERNORS ]

Sec. 4. Title 5, chapter 6, article 1, Arizona Revised Statutes, is
amended by adding section 5-606, to read:

5-606. Complaints: tracking system: annual report

A. THE DEPARTMENT SHALL CREATE AND IMPLEMENT A COMPLAINT SUBMISSION
PROCESS AND COMPLAINT TRACKING SYSTEM THAT ALLOW THE DEPARTMENT TO TRACK
AND MONITOR COMPLAINTS RELATING TO THIS CHAPTER AND CHAPTERS 2, 10 AND 11
OF THIS TITLE. THE DEPARTMENT SHALL MAKE THE COMPLAINT SUBMISSION PROCESS

AVAILABLE ON THE DEPARTMENT WEBSITE.

[B-—THEBEPAR THEN T—SHACE— SUB TA AN ANHOAE- REPORT -TO THE PRES TB ENT

ST THE HUMBER — OF — € OM PLEATS —_ THAT HERE REC ET EB FHROUGH THE
COMPLATNT-SUBMES STON-P ROCESS ANB THAT HERE RES OLY EB J

(B. ON OR BEFORE SEPTEMBER 30 OF EACH YEAR, THE DEPARTMENT SHALL
SUBMIT AN ANNUAL REPORT TO THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE
HOUSE OF REPRESENTATIVES AND THE GOVERNOR THAT INCLUDES AGGREGATE DATA OF

House Amendments to S.B. 1671

CONDOR WDM BF

COMPLAINTS THAT ARE RECEIVED BY THE DEPARTMENT RELATING TO PERSONS OR
ENTITIES THAT ARE LICENSED OR REGULATED PURSUANT TO THIS TITLE AND THAT

ARE WITHIN THE STATUTORY AUTHORITY OF THE DEPARTMENT. J

<<Sec. 5. Section 5-1312, Arizona Revised Statutes, is amended to

read:

-1312. Reporting
A. On or before September 30 of each year, the department shall

prepare and submit an annual report to the governor, the president of the
senate and the speaker of the house of representatives, and shall provide
a copy to the secretary of state that contains the following information:
The number of active licensees by type.

The aggregate gross and net revenue of all licensees.

The number of investigations conducted to enforce this chapter.

4. The financial impact on this state of the event wagering
industry in this state.

B. The report may be included with other information required to be
submitted by the department annually. A report submitted under subsection
A of this section may be submitted electronically.

[C. THE REPORT REQUIRED PURSUANT TO SUBSECTION A OF THIS SECTION
MUST INCLUDE A STATEMENT THAT INDICATES THE NUMBER OF INDEPENDENT AUDIT
RESULTS THAT ARE REQUIRED TO BE SUBMITTED BY LICENSED EVENT WAGERING
OPERATORS AND MANAGEMENT SERVICES PROVIDERS PURSUANT TO SECTION 5-1319 AND
THAT WERE RECEIVED BY THE DEPARTMENT AND MUST INCLUDE ANY CORRECTIVE
ACTIONS TAKEN BY THE DEPARTMENT REGARDING OVERPAYMENT OR UNDERPAYMENT OF

PRIVILEGE FEES. ]>>

Sec. 6. Repeal
Sections 41-3026.04, 41-3026.13 and 41-3026.22, Arizona Revised

Statutes, are repealed.

Sec. 7. Title 41, chapter 27, article 2, Arizona Revised Statutes,
is amended by adding sections 41-3032.11, 41-3032.15 and 41-3032.20 to
read:

41-3032.11. Arizona racing commission; termination July 1, 2032

A. THE ARIZONA RACING COMMISSION TERMINATES ON JULY 1, 2032.

B. TITLE 5, CHAPTER 1 AND THIS SECTION ARE REPEALED ON JANUARY 1,
2033.

41-3032.15. Arizona state boxing and mixed martial arts

commission; termination July 1, 2032
A. THE ARIZONA STATE BOXING AND MIXED MARTIAL ARTS COMMISSION

TERMINATES ON JULY 1, 2032.
B. TITLE 5, CHAPTER 2 AND THIS SECTION ARE REPEALED ON JANUARY 1,

2033:

41-3032.20. Department of gaming: termination July 1, 2032

A. THE DEPARTMENT OF GAMING TERMINATES ON JULY 1, 2032.

B. SECTIONS 5-601, 5-602, 5-602.01, 5-603 AND 5-604, TITLE 5,
CHAPTERS 10 AND 11 AND THIS SECTION ARE REPEALED ON JANUARY 1, 2033.

WN re

House Amendments to S.B. 1671

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Sec. 8. Purpose

Pursuant to section 41-2955, subsection B, Arizona Revised Statutes,
the legislature continues the department of gaming to:

1. Carry out the responsibilities of the state gaming agency in
compacts executed by the state Indian tribes and this state pursuant to
the Indian gaming regulatory act of 1988 (25 United States Code sections
2701 through 2721 and 18 United States Code sections 1166 through 1168).

2. Ensure the integrity of fantasy sports contests.

3. Enforce and supervise compliance with the laws and rules
relating to regulating and controlling event wagering in this state.

4. Regulate racing and boxing and mixed martial arts in this state
in conjunction with their respective commissions.

Sec. 9. Purpose

Pursuant to section 41-2955, subsection B, Arizona Revised Statutes,
the legislature continues the Arizona racing commission to regulate the
racing industry in this state for the protection of the public peace,
safety and welfare.

Sec. 10. Purpose
Pursuant to section 41-2955, subsection B, Arizona Revised Statutes,

the legislature continues the Arizona state boxing and mixed martial arts
commission to provide the best protection for all interested parties in
the sports of boxing, kickboxing and mixed martial arts.

<<Sec.— tt bepartment—of—gaming; review; —imdepentent audits;

required -bytute>>>
Sec. 11. Retroactivity
Sections [S~—amd] 6 [and 7] of this act are effective retroactively

to from and after July 1, 2026.

Enroll and engross to conform
Amend title to conform

JEFF WENINGER

t67tBtAtiK-cdocx 1671WENINGER. docx
6374872026 03/23/2026
3755-? tt 03:41 PM

H: PB/1s

TSOHPZZER 130HPZZCQ
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __ SB 1671

DATE March 24, 2026 motion: _ DPA

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

7

Cavero

Carter N wi
i

Diaz

Hendrix

Villegas

Volk

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

PN AAAAAK

CO ] =.

APPROVED: COMMITTEE SECRETARY

Ui Mimn~—

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 3O
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DP 4-3-0-0 | Third Read 18-11-1-0-0

SB 1747: social media; online content; minors.
S/E: social media; minors; fund
Sponsor: Senator Bolick, LD 2

Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1747

Overview
Prescribes requirements for developers and covered companies relating to social media
applications. Establishes the Technology Content Protection for Minors Grant Fund (Grant

Fund).

History
A person commits unlawful age misrepresentation if the person is at least 18 years of age,

and knowing or having reason to know that the recipient of a communication is a minor, uses
an electronic communication device to knowingly misrepresent the person's age for the
purpose of committing any sexual offense involving the recipient (A.R.S. § 13-3561).

A commercial entity that knowingly and intentionally publishes or distributes material on
an internet website, including a social media platform, of which more than one-third is sexual
material that is harmful to minors must use reasonable age verification methods to verify
that an individual who attempts to access the material is eighteen years of age or older.
Individuals attempting to access the material must either: 1) provide a form of digital
identification that does not cause or allow the individual's identifying information to be
transmitted to any federal, state or local government entity; or 2) comply with a commercial
age verification system that does not cause or allow the individual's identifying information
to be transmitted to any federal, state or local government entity and verifies age using a
government-issued identification or a commercially reasonable method that relies on public
or private transactional data to verify the age of an individual (A.R.S. § 18-701).

Provisions
Technology Content Protection for Minors Grant Fund
1. Creates the Grant Fund, administered by the Attorney General (AG), which consists of
monies from civil penalties, attorney fees and litigation costs that are recovered by the
AG in actions brought against a covered company, developer or commercial entity for
violations of Technology Content statutes. (Sec. 1)

2. Specifies monies in the Grant Fund are continuously appropriated and are exempt from
lapsing. (Sec. 1)

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

Initials PB SB 1747
3/21/2026 Page 1 Commerce

ATTACHMENT 31
10.
11.

12.

13.

14.

15.

16.

Provides restrictions on the use of Grant Fund monies. (Sec. 1)

Directs the AG to use Grant Fund monies solely to award grants to nonprofit
organizations for specified programs as outlined. (Sec. 1)

Instructs the AG, subject to JLBC approval, to establish grant eligibility criteria,
application procedures and reporting requirements for recipients of grants awarded. (Sec.

1)
Provides reporting requirements that includes an accounting of all the monies spent from
the Grant Fund. (Sec. 1)

Technology Content
Details requirements for a covered company relating to:
a. determining the age of a user;
b. obtaining parental consent before allowing a child to download or access certain types
of applications;
ce. notifying the parent of certain features for applications that a child downloads; and
d. providing a developer with an age signal for determining parental consent and the age
of an individual. Gec. 2)

Requires a developer to:

a. request from a covered company, on an individual's account creation or first access,
an age signal and a parental consent signal for the individual who is a child;

b. use the age signal and parental consent signal to enforce minimum age restrictions,
ensure compliance with laws and provide an age-appropriate default, safeguards or
experiences; and

ec. comply with the additional technology content requirements if the developer operates
a social media platform. (Sec. 2)

Directs a social media platform to provide readily available features for a parent or
guardian to oversee the child's use of the application as appropriate to the risks that arise
from the child's use of the developer's application.

Outlines certain functions that the available feature must include. (Sec. 2)

Requires a social media platform to implement minor account default settings for a user
that the developer knows is a minor. (Sec. 2)

Specifies the individuals who may modify the minor account default settings based on the
minor's age. (Sec. 2)

Outlines requirements for the minor account default settings. (Sec. 2)

Age Signal and Verification
Provides direction for a developer on using an age signal if an internal age signal conflicts
with the age sign from a covered company. (Sec. 2)

Requires a developer to transmit the conflicting internal age signal back to a covered
company through a mechanism that is provided by the covered company if the developer
has clear and convincing evidence that an internal age signal is more accurate. (Sec. 2)

Directs a covered company, on receipt of a conflicting internal age signal from a developer,
to take steps to reverify the user's age and update the age signal to provide developers
with the newly verified age. (Sec. 2)

Initials PB SB 1747
3/21/2026 Page 2 Commerce
17.

18.

19.
20.

21,

22,

23.

24.

26.

a7.

28.

29,

30.
31.

Delineates responsibilities for a commercial entity that knowingly and intentionally
publishes or distributes material that is harmful to minors on the application including
using anonymous or standard age verification to verify that the person attempting to
access the material is at least the age of 18. (Sec. 2)

Court Proceedings
Allows a minor or the minor's parent who has been harmed to bring a civil action against
the covered company, developer or commercial entity. (Sec. 2)

Outlines the awards that a court may grant to a prevailing plaintiff. (Sec. 2)

Requires civil actions to be brought within one year after the date that the complainant
knew or reasonably should have known of the violation. (Sec. 2)

Authorizes the AG to bring an action against a covered company, developer or commercial

entity to:

a. recover a civil penalty of not more than $75,000 for each violation;

b. restrain or enjoin the covered company, developer or commercial entity from violating
Technology Content statutes;

c. seek injunctive relief;

d. recover reasonable attorney fees; and

e. recover litigation costs and reasonable costs for investigating the violation. (Sec. 2)

Directs the AG to deposit monies collected from civil penalties in the Grant Fund. (Sec. 2)

Immunity
Provides circumstances which grant a developer or a covered company immunity from
liability for Technology Content violations. (Sec. 2)

Stipules a developer is not liable for Technology Content violations if, in determining an
application's age rating and content description, the developer uses widely adopted
industry standards to determine the application's age category and content description
and applies those standards consistently and in good faith. (Sec. 2)

. Adds a developer is not liable for transmitting an internal age signal to a covered company

for the purposes of reconciling conflicting age signals. (Sec. 2)

Specifies the described immunity:

a. applies only to actions brought under Technology Content statutes; and

b. does not limit a developer or covered company's liability under any other applicable
law. (Sec. 2)

Specifies the immunity exemptions do not replace any other available remedy or right in
State or federal law. (Sec. 2)

Miscellaneous
Specifies the Technology Content statutes do not modify, impair or supersede the
operation of any antitrust laws. (Sec. 2)

Stipulates a covered company must comply with Technology Content statutes in a
nondiscriminatory manner, including by complying with additional outlined
requirements. (Sec. 2)

Defines pertinent terms. (Sec. 2)

Contains a severability clause. (Sec. 3)

Initials PB SB 1747
3/21/2026 Page 3 Commerce
32. Contains a delayed effective date. (Sec. 4)

Initials PB SB 1747
3/21/2026 Page 4 Commerce

Fifty-seventh Legislature Commerce
Second Regular Session S.B. 1747

ONAN HPWDHY FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1747
(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Title 41, chapter 1, article 5, Arizona Revised
Statutes, is amended by adding section 41-191.14, to read:

41-191.14. Technology content protection for minors grant

ey gene : re

A. THE TECHNOLOGY CONTENT PROTECTION FOR MINORS GRANT FUND IS
ESTABLISHED CONSISTING OF MONIES FROM CIVIL PENALTIES, ATTORNEY FEES AND
LITIGATION COSTS THAT ARE RECOVERED BY THE ATTORNEY GENERAL PURSUANT TO
SECTION 44-8047. THE ATTORNEY GENERAL SHALL ADMINISTER THE FUND. MONIES
IN THE FUND ARE CONTINUOUSLY APPROPRIATED AND ARE EXEMPT FROM THE
PROVISIONS OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS.

B. MONIES IN THE FUND MAY NOT BE TRANSFERRED TO OR OTHERWISE MADE
AVAILABLE TO ANY OTHER STATE FUND OR ACCOUNT AND MAY NOT BE USED FOR
OPERATING EXPENSES OF THE ATTORNEY GENERAL'S OFFICE OR STAFF SALARIES.

C. THE ATTORNEY GENERAL SHALL USE THE MONIES IN THE FUND SOLELY TO
AWARD GRANTS TO NONPROFIT ORGANIZATIONS FOR THE FOLLOWING:

1. OUTREACH PROGRAMS THAT PROVIDE EDUCATION TO PARENTS, GUARDIANS
AND MINORS ABOUT ONLINE SAFETY, DIGITAL LITERACY AND THE EFFECTS OF SOCIAL
MEDIA ON THE MENTAL HEALTH OF MINORS.

2. PROGRAMS THAT PROVIDE RESOURCES OR SERVICES TO MINORS WHO HAVE
EXPERIENCED HARM AS A RESULT OF VIOLATIONS OF CHAPTER 42 OF THIS TITLE.

3. RESEARCH ON THE EFFECTS OF SOCIAL MEDIA ON THE MENTAL AND
PHYSICAL HEALTH OF MINORS.

4. LAW ENFORCEMENT PROGRAMS THAT INVESTIGATE VIOLATIONS OF CHAPTER
42 OF THIS TITLE AND TECHNOLOGY-FACILITATED HARM TO MINORS.

5. PROGRAMS THAT PROVIDE MENTAL HEALTH COUNSELING, TREATMENT OR
SUPPORT SERVICES TO MINORS WHO HAVE EXPERIENCED PSYCHOLOGICAL: OR EMOTIONAL
HARM AS A RESULT OF USING SOCIAL MEDIA AND VIOLATIONS OF CHAPTER 42 OF
THES PETE.

6. PROGRAMS THAT PROVIDE PREVENTION EDUCATION, VICTIM SERVICES OR
LAW ENFORCEMENT SUPPORT RELATED TO THE HUMAN TRAFFICKING OR SEXUAL
EXPLOITATION OF MINORS FACILITATED THROUGH SOCIAL MEDIA PLATFORMS.

D. THE ATTORNEY GENERAL SHALL ESTABLISH GRANT ELIGIBILITY CRITERIA,
APPLICATION PROCEDURES AND REPORTING REQUIREMENTS FOR RECIPIENTS OF GRANTS
AWARDED PURSUANT TO THIS SECTION SUBJECT TO JOINT LEGISLATIVE BUDGET
COMMITTEE APPROVAL.

E. ON OR BEFORE JANUARY 15, APRIL 15, JULY 15 AND OCTOBER 15 OF
EACH YEAR, THE ATTORNEY GENERAL SHALL COMPILE A REPORT THAT INCLUDES AN
ACCOUNTING OF ALL THE MONIES SPENT FROM THE FUND, INCLUDING:

Adopter # of Verbal:

ile Withdraw

Analysts Initial:

ATTACHMENT 32

House Amendments to S.B. 1747

OON DOR WDM HE

RECEIPTS.

DISBURSEMENTS.

THE CURRENT BALANCE OF THE FUND.

THE NAME OF EACH GRANT RECIPIENT.

THE AMOUNT AWARDED TO EACH GRANT RECIPIENT.

THE PURPOSE FOR EACH GRANT AWARDED.

THE ATTORNEY GENERAL SHALL SUBMIT THE REPORT TO ALL OF THE
FOLLOWING:

THE GOVERNOR.

THE PRESIDENT OF THE SENATE.

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

THE MINORITY LEADER OF THE SENATE.

THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES.

THE DIRECTOR OF THE JOINT LEGISLATIVE BUDGET COMMITTEE.

. THE SECRETARY OF STATE.

Sec. 2. Title 44, Arizona Revised Statutes, is amended by adding

chapter 42, to read:

NOOB WME HS TODO HP WH

CHAPTER 42
TECHNOLOGY CONTENT
ARTICLE 1. SOCIAL MEDIA

44-8041. Definitions

IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. "ANONYMOUS AGE VERIFICATION" MEANS A COMMERCIALLY REASONABLE
METHOD THAT IS USED BY A GOVERNMENT AGENCY OR A BUSINESS FOR THE PURPOSE
OF AGE VERIFICATION THAT IS CONDUCTED BY A NONGOVERNMENTAL, INDEPENDENT
THIRD PARTY THAT IS ORGANIZED UNDER THE LAWS OF ANY STATE OF THE UNITED
STATES THAT BOTH:

(a) HAS ITS PRINCIPAL PLACE OF BUSINESS IN ANY STATE OF THE UNITED
STATES.

(b) IS NOT OWNED OR CONTROLLED BY A COMPANY THAT IS FORMED IN A
FOREIGN COUNTRY, A GOVERNMENT OF A FOREIGN COUNTRY OR ANY OTHER ENTITY
FORMED IN A FOREIGN COUNTRY.

2. “APPLICATION" MEANS A SOFTWARE APPLICATION OR ELECTRONIC SERVICE
THAT A USER MAY RUN OR DIRECT ON A COMPUTER, A MOBILE DEVICE OR ANY OTHER
GENERAL PURPOSE COMPUTING DEVICE.

3. “APPLICATION STORE" MEANS A PUBLICLY AVAILABLE WEBSITE, SOFTWARE
APPLICATION, ELECTRONIC SERVICE OR’ PLATFORM THAT’ DISTRIBUTES AND
FACILITATES THE DOWNLOAD OF APPLICATIONS FROM THIRD-PARTY DEVELOPERS TO
USERS OF A COMPUTER, A MOBILE DEVICE OR ANY OTHER GENERAL PURPOSE
COMPUTING DEVICE.

4. "CHILD" MEANS AN INDIVIDUAL WHO IS LESS THAN SIXTEEN YEARS OF
AGE.

5. “COMMERCIAL ENTITY" INCLUDES A CORPORATION, A LIMITED LIABILITY
COMPANY, A PARTNERSHIP, A LIMITED PARTNERSHIP, A SOLE PROPRIETORSHIP AND
ANY OTHER LEGALLY RECOGNIZED ENTITY.

6. “COVERED COMPANY" MEANS A PERSON THAT OWNS, CONTROLS OR OPERATES
AN APPLICATION STORE OR OPERATING SYSTEM THAT SERVICES CUSTOMERS IN THIS
STATE.

House Amendments to S.B. 1747

WOON OAH WMH

PEP HSHPHPAP AR RWWWWWWWWWWNHNYDNYNNNNYNYNYNYHPHE BEE eee
CONAMNFWNHEFOODNATMAEPWNHE DOOCBDINDAGABRWNHOKCDAUNAUMGRWHRHEO

7. “DAILY ACTIVE USERS" MEANS THE NUMBER OF UNIQUE USERS IN THE
UNITED STATES WHO USED THE SOCIAL MEDIA PLATFORM AT LEAST EIGHTY PERCENT
OF THE DAYS DURING EITHER:

(a) THE PREVIOUS TWELVE-MONTH PERIOD.

(b) THE PREVIOUS ONE-MONTH PERIOD IF THE SOCIAL MEDIA PLATFORM DID
NOT EXIST DURING THE PREVIOUS TWELVE-MONTH PERIOD.

8. "DEVELOPER" MEANS A PERSON THAT CREATES, OWNS OR CONTROLS A
PUBLIC-FACING WEBSITE, ONLINE SERVICE, ONLINE APPLICATION OR MOBILE
APPLICATION.

9. “DISTRIBUTE” MEANS TO ISSUE, SELL, GIVE, PROVIDE, DELIVER,
TRANSFER, TRANSMIT, CIRCULATE OR DISSEMINATE BY ANY MEANS.

10. “HARMFUL TO MINORS" HAS THE SAME MEANING PRESCRIBED IN SECTION
13-3501.

11. “INFINITE SCROLLING" MEANS CONTENT THAT IS CONTINUOUSLY LOADING
OR CONTENT THAT LOADS AS THE USER SCROLLS DOWN THE WEBPAGE WITHOUT THE
NEED TO OPEN A SEPARATE WEBPAGE.

12. “OPERATING SYSTEM" MEANS AN ENTITY THAT DEVELOPS, MAINTAINS OR
DISTRIBUTES AN OPERATING SYSTEM ON A COMPUTER, A MOBILE DEVICE OR ANY
OTHER GENERAL PURPOSE COMPUTING DEVICE.

13. “PERSONALIZED RECOMMENDATION SYSTEM":

(a) MEANS A FULLY OR PARTIALLY AUTOMATED SYSTEM USED TO SUGGEST,
PROMOTE OR RANK A FEED OF A USER-GENERATED CONTENT BASED ON THE USER'S
ACTIVITY ON THE COVERED PLATFORM.

(b) DOES NOT INCLUDE A RECOMMENDATION SYSTEM THAT SUGGESTS,
PROMOTES OR RANKS CONTENT BASED SOLELY ON THE USER'S LANGUAGE, CITY OR
TOWN OR AGE.

14. “PRECISE GEOLOCATION":

(a) MEANS INFORMATION DERIVED FROM TECHNOLOGY, INCLUDING GLOBAL
POSITIONING SYSTEM LEVEL LATITUDE AND LONGITUDE COORDINATES OR OTHER
MECHANISMS, THAT DIRECTLY IDENTIFIES THE SPECIFIC LOCATION OF A NATURAL
PERSON WITH PRECISION AND ACCURACY WITHIN A RADIUS OF ONE THOUSAND SEVEN
HUNDRED FIFTY FEET.

(b) DOES NOT INCLUDE THE CONTENT OF COMMUNICATIONS OR ANY DATA
GENERATED BY OR CONNECTED TO ADVANCED UTILITY METERING INFRASTRUCTURE
SYSTEMS OR EQUIPMENT FOR USE BY A UTILITY.

15. "PUBLISH" MEANS TO COMMUNICATE OR MAKE INFORMATION AVAILABLE TO
ANOTHER PERSON ON A PUBLICLY AVAILABLE WEBSITE OR APPLICATION.

16. “SOCIAL MEDIA PLATFORM":

(a) MEANS AN ONLINE FORUM, WEBSITE OR APPLICATION THAT SATISFIES
EACH OF THE FOLLOWING CRITERIA:

(i) ALLOWS A USER TO UPLOAD CONTENT OR VIEW THE CONTENT OR ACTIVITY
OF OTHER USERS.

(ii) EMPLOYS ALGORITHMS THAT ANALYZE USER DATA OR INFORMATION ON
USERS TO SELECT CONTENT FOR USERS.

(iii) HAS INFINITE SCROLLING OR SEAMLESS CONTENT OR THE USE OF
WEBPAGES WITH NO VISIBLE OR APPARENT END OR PAGE BREAKS, HAS PUSH
NOTIFICATIONS OR ALERTS SENT BY AN ONLINE FORUM, WEBSITE OR APPLICATION TO
INFORM A USER ABOUT SPECIFIC ACTIVITIES OR EVENTS RELATED TO THE USER'S
ACCOUNT, DISPLAYS PERSONAL INTERACTIVE METRICS THAT INDICATE THE NUMBER OF

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House Amendments to S.B. 1747

WOONDTOHPWNHE

TIMES OTHER USERS HAVE CLICKED A BUTTON TO INDICATE THE USERS' REACTIONS
TO CONTENT OR HAVE SHARED OR REPOSTED THE CONTENT, HAS AUTO-PLAY VIDEO OR
VIDEO THAT BEGINS TO PLAY WITHOUT THE USER FIRST CLICKING ON THE VIDEO OR
ON A PLAY BUTTON FOR THAT VIDEO OR HAS LIVE-STREAMING OR HAS A FUNCTION
THAT ALLOWS A USER OR ADVERTISER TO BROADCAST LIVE VIDEO CONTENT IN
REAL-TIME.

(b) DOES NOT INCLUDE AN ONLINE SERVICE, WEBSITE OR APPLICATION
WHERE THE EXCLUSIVE FUNCTION IS EMAIL OR DIRECT MESSAGING CONSISTING OF
TEXT, PHOTOGRAPHS, PICTURES, IMAGES OR VIDEOS THAT ARE SHARED ONLY BETWEEN
THE SENDER AND THE RECIPIENTS AND THAT ARE NOT DISPLAYED OR POSTED
PUBLICLY OR TO OTHER USERS THAT ARE NOT SPECIFICALLY IDENTIFIED BY THE
SENDER AS THE RECIPIENTS.

17. “STANDARD AGE VERIFICATION" MEANS ANY COMMERCIALLY REASONABLE
METHOD OF AGE VERIFICATION THAT IS APPROVED BY THE COMMERCIAL ENTITY.

18. "SUBSTANTIAL PORTION" MEANS MORE THAN THIRTY-THREE AND ONE
THIRD PERCENT OF THE TOTAL MATERIAL ON A WEBSITE OR APPLICATION.

44-8042. Covered company duties

A COVERED COMPANY SHALL:

1. TAKE COMMERCIALLY REASONABLE STEPS TO DETERMINE OR ESTIMATE THE
AGE FOR:

(a) NEW USERS, AT ACCOUNT CREATION.

(b) EXISTING USERS, WITHIN SIX MONTHS AFTER THE EFFECTIVE DATE OF
THIS SECTION.

2. OBTAIN PARENTAL OR GUARDIAN CONSENT BEFORE ALLOWING A CHILD TO
EITHER:

(a) DOWNLOAD AN APPLICATION DISTRIBUTED OR MADE ACCESSIBLE THROUGH
THE COVERED COMPANY'S APPLICATION STORE, IF THE COVERED COMPANY PROVIDES
AN APPLICATION STORE.

(b) ACCESS AN APPLICATION PRE-LOADED ONTO A DEVICE FOR THE FIRST
TIME, IF THE COVERED COMPANY PROVIDES AN OPERATING SYSTEM.

3. IF THE COVERED COMPANY PROVIDES AN APPLICATION STORE, CONNECT
THE DEVELOPER OF AN APPLICATION THAT A CHILD DOWNLOADS FROM THE COVERED
COMPANY'S APPLICATION STORE WITH THE CHILD'S APPROVING PARENT OR GUARDIAN
TO NOTIFY THE PARENT OR GUARDIAN OF THE FEATURES PRESCRIBED IN SECTION
44-8043.

4. ON REQUEST, PROVIDE A DEVELOPER, INCLUDING A DEVELOPER OF THE
PRE-LOADED APPLICATION, WITH AN AGE SIGNAL THROUGH A REAL-TIME APPLICATION
PROGRAMMING INTERFACE ON AN ONGOING BASIS REGARDING WHETHER PARENTAL OR

GUARDIAN CONSENT HAS BEEN PROVIDED AND WHETHER AN INDIVIDUAL IS:

(a) LESS THAN THIRTEEN YEARS OF AGE.

(b) AT LEAST THIRTEEN YEARS OF AGE BUT LESS THAN SIXTEEN YEARS OF
AGE.

(c) AT LEAST SIXTEEN YEARS OF AGE BUT LESS THAN EIGHTEEN YEARS OF
AGE.

(d) AT LEAST EIGHTEEN YEARS OF AGE.

House Amendments to S.B. 1747

OONDOTAHP WDM FE

44-8043. Developer duties: social media platform duties;

minor account default settings

A. A DEVELOPER SHALL:

1. ON AN INDIVIDUAL'S ACCOUNT CREATION OR FIRST ACCESS, REQUEST
FROM A COVERED COMPANY AN AGE SIGNAL AND, IF THE INDIVIDUAL IS A CHILD, A
PARENTAL CONSENT SIGNAL FOR THE INDIVIDUAL AND MAY SUBSEQUENTLY REQUEST
ADDITIONAL AGE SIGNALS.

2. USE THE AGE SIGNAL AND PARENTAL CONSENT SIGNAL FROM A COVERED
COMPANY TO:

(a) ENFORCE LEGALLY REQUIRED MINIMUM AGE RESTRICTIONS.

(b) ENSURE COMPLIANCE WITH ALL LAWS.

(c) PROVIDE ANY AGE-APPROPRIATE DEFAULTS, SAFEGUARDS OR EXPERIENCES
AS REQUIRED BY THIS CHAPTER.

B. IN ADDITION TO THE REQUIREMENTS PRESCRIBED IN SUBSECTION A OF
THIS SECTION, IF A DEVELOPER OPERATES A SOCIAL MEDIA PLATFORM, THE
DEVELOPER SHALL COMPLY WITH THE ADDITIONAL REQUIREMENTS OF THIS SECTION.

C. IF APPLICABLE AND TECHNICALLY FEASIBLE, A SOCIAL MEDIA PLATFORM
SHALL PROVIDE READILY AVAILABLE FEATURES FOR A PARENT OR GUARDIAN TO
OVERSEE THE PARENT'S OR GUARDIAN'S CHILD'S USE OF THE APPLICATION AS
APPROPRIATE TO THE RISKS THAT ARISE FROM THE CHILD'S USE OF THE
DEVELOPER'S APPLICATION. THE FEATURES MUST INCLUDE:

1. THE ABILITY TO VIEW METRICS REFLECTING THE AMOUNT OF TIME THAT
THE CHILD IS USING THE APPLICATION AND SET DAILY TIME LIMITS ON THE
CHILD'S USE.

2. THE ABILITY TO SEE WHICH INDIVIDUALS OR ACCOUNTS’ ARE
AFFIRMATIVELY LINKED TO THE CHILD'S ACCOUNT, INCLUDING THE CHILD'S
FRIENDS, FOLLOWERS OR ACCOUNTS THAT THE CHILD IS FOLLOWING.

3. THE ABILITY TO DETERMINE WHETHER THE CHILD HAS LIMITED THE
PUBLIC VISIBILITY OF THE CHILD'S ACCOUNT OR INFORMATION AND CONTENT THAT
IS UPLOADED TO THE APPLICATION.

4. THE ABILITY TO SEE WHICH INDIVIDUALS THE CHILD HAS BLOCKED.

5. THE ABILITY TO SUBMIT A REPORT TO THE APPLICATION CONCERNING A
POTENTIAL VIOLATION OF THE DEVELOPER'S TERMS AND POLICIES.

6. THE ABILITY TO ODISABLE THE DISPLAY OF ~~ PERSONALIZED
RECOMMENDATION SYSTEMS FOR A CHILD.

D. A SOCIAL MEDIA PLATFORM MUST IMPLEMENT MINOR ACCOUNT DEFAULT
SETTINGS FOR A USER THAT THE DEVELOPER KNOWS IS A MINOR. FOR A MINOR USER
WHO IS A CHILD, ONLY THE CHILD'S PARENT OR GUARDIAN MAY MODIFY THE MINOR
ACCOUNT DEFAULT SETTINGS. FOR A MINOR USER WHO IS AT LEAST SIXTEEN YEARS
OF AGE, THE MINOR USER OR THE MINOR'S PARENT MAY MODIFY THE MINOR ACCOUNT
DEFAULT SETTINGS. THE MINOR ACCOUNT DEFAULT SETTINGS MUST:

1. DISPLAY A NOTIFICATION TO A USER WHOM THE SOCIAL MEDIA PLATFORM
KNOWS IS A MINOR IF THE USER HAS SPENT ONE CUMULATIVE HOUR ON THE
APPLICATION DURING ONE CALENDAR DAY. THE NOTIFICATION SHALL INFORM THE
MINOR USER OF THE CUMULATIVE DAILY TIME SPENT ON THE APPLICATION.

House Amendments to S.B. 1747

WOON ODOR WN FE

2. LIMIT THE VISIBILITY OF A MINOR'S ACCOUNT OR PROFILE TO
CONNECTED USERS OTHER THAN THE MINOR'S NAME, USERNAME AND PRIMARY DISPLAY
PICTURE.

3. MAINTAIN REASONABLE POLICIES ADDRESSING EXPOSURE TO SEXUALLY OR
VIOLENTLY EXPLICIT MATERIAL ON THE PLATFORM.

4. SILENCE NOTIFICATIONS BETWEEN 10:00 P.M. AND 6:00 A.M. LOCAL
TIME.

5. PROHIBIT AN UNCONNECTED USER FROM SENDING PRIVATE OR DIRECT
MESSAGES TO A MINOR USER, INCLUDING THROUGH VIDEO, VOICE, TEXT OR OTHER

MESSAGING.

6. PROHIBIT A MINOR USER FROM SHARING THE MINOR USER'S REAL-TIME
PRECISE GEOLOCATION WITH ANY OTHER USER AND ESTABLISH A FEATURE FOR THE
MINOR'S PARENT OR GUARDIAN TO ALLOW THE MINOR TO SHARE THE MINOR'S PRECISE
GEOLOCATION WITH CONNECTED USERS AND USERS WHO ARE APPROVED BY THE PARENT.

7. DISABLE THE AUTOMATIC PLAYING OF VIDEO CONTENT WITHOUT USER
ACTION IN A PERSONALIZED RECOMMENDATION SYSTEM.

44-8044. Age signal conflicts

A. IF A DEVELOPER DETERMINES THAT AN INTERNAL AGE SIGNAL CONFLICTS
WITH THE AGE SIGNAL FROM A COVERED COMPANY, THE DEVELOPER MAY RELY ON THE
AGE SIGNAL FROM THE COVERED COMPANY UNLESS THE DEVELOPER HAS CLEAR AND
CONVINCING EVIDENCE THAT AN INTERNAL AGE SIGNAL IS MORE ACCURATE. IF THE
DEVELOPER HAS CLEAR AND CONVINCING EVIDENCE THAT THE DEVELOPER'S INTERNAL
AGE SIGNAL IS MORE ACCURATE, INCLUDING IF THE USER PROVIDED PROOF OF AGE
TO THE DEVELOPER, THE DEVELOPER SHALL USE THE DEVELOPER'S INTERNAL SIGNAL.

B. IF APPLICABLE AND TECHNICALLY FEASIBLE, A DEVELOPER SHALL
TRANSMIT THE CONFLICTING INTERNAL AGE SIGNAL BACK TO A COVERED COMPANY
THROUGH A MECHANISM THAT IS PROVIDED BY THE COVERED COMPANY IF THE
DEVELOPER HAS CLEAR AND CONVINCING EVIDENCE THAT AN INTERNAL AGE SIGNAL IS
MORE ACCURATE.

C. ON RECEIPT OF A CONFLICTING INTERNAL AGE SIGNAL FROM A
DEVELOPER, THE COVERED COMPANY SHALL TAKE STEPS TO REVERIFY THE USER'S AGE
AND UPDATE THE AGE SIGNAL TO PROVIDE DEVELOPERS WITH THE NEWLY VERIFIED

AGE.
44-8045. Material that is harmful to minors: age
verification; personal identifying information
protection

IF AN APPLICATION CONTAINS A SUBSTANTIAL PORTION OF MATERIAL THAT IS
HARMFUL TO MINORS, A COMMERCIAL ENTITY THAT KNOWINGLY AND INTENTIONALLY
PUBLISHES OR DISTRIBUTES MATERIAL THAT IS HARMFUL TO MINORS ON THE
APPLICATION SHALL DO ALL OF THE FOLLOWING:

1. USE EITHER ANONYMOUS AGE VERIFICATION OR STANDARD AGE
VERIFICATION TO VERIFY THAT THE PERSON ATTEMPTING TO ACCESS THE MATERIAL
THAT IS HARMFUL TO MINORS IS AT LEAST EIGHTEEN YEARS OF AGE.

2. PREVENT ACCESS TO THE MATERIAL THAT IS HARMFUL TO MINORS BY A
PERSON WHO IS LESS THAN EIGHTEEN YEARS OF AGE.

3. OFFER ANONYMOUS AGE VERIFICATION AND STANDARD AGE VERIFICATION
AND ALLOW A PERSON ATTEMPTING TO ACCESS THE MATERIAL THAT IS HARMFUL TO
MINORS TO SELECT WHICH METHOD WILL BE USED TO VERIFY THE PERSON'S AGE.

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House Amendments to S.B. 1747

WOON ADAH WNHFE

PPPS HPHPHPPHPWWWWWWWWWWNHNDNNDNYDNDNNNNRPRP RP RP PRP RP RP Be
ANDAMNFPWNMHRFDOWOANDATAHPWDHE DMO ANA TAHRWNHERFP DOWD OANA ONBRWNHHEO

4. ENSURE THAT A THIRD PARTY CONDUCTING ANONYMOUS AGE VERIFICATION
PURSUANT TO THIS SECTION:

(a) DOES NOT RETAIN PERSONAL IDENTIFYING INFORMATION USED TO VERIFY
AGE WHEN THE AGE OF A PERSON SEEKING ACCESS HAS BEEN VERIFIED.

(b) DOES NOT USE PERSONAL IDENTIFYING INFORMATION THAT IS USED TO
VERIFY AGE FOR ANY OTHER PURPOSE.

(c) KEEPS ANONYMOUS ANY PERSONAL IDENTIFYING INFORMATION USED TO
VERIFY AGE AND DOES NOT SHARE OR OTHERWISE COMMUNICATE THE INFORMATION TO
ANY PERSON.

(d) PROTECTS PERSONAL IDENTIFYING INFORMATION USED TO VERIFY AGE
FROM UNAUTHORIZED OR ILLEGAL ACCESS, DESTRUCTION, USE, MODIFICATION OR
DISCLOSURE THROUGH REASONABLE SECURITY PROCEDURES AND PRACTICES
APPROPRIATE TO THE NATURE OF THE PERSONAL INFORMATION.

44-8046. ivil action; u f_limi

A. A MINOR OR THE MINOR'S PARENT WHO HAS BEEN HARMED BY A VIOLATION
OF THIS CHAPTER MAY BRING A CIVIL ACTION AGAINST THE COVERED COMPANY,
DEVELOPER OR COMMERCIAL ENTITY.

B. A COURT OF COMPETENT JURISDICTION MAY AWARD A_ PREVAILING
PLAINTIFF ANY OR ALL OF THE FOLLOWING:

1. ACTUAL DAMAGES OR $1,000 FOR EACH VIOLATION, WHICHEVER IS
GREATER.

2. PUNITIVE DAMAGES IF THE VIOLATION WAS EGREGIOUS.

3. REASONABLE ATTORNEY FEES.

4. LITIGATION COSTS.

C. NOTWITHSTANDING ANY OTHER LAW, A CIVIL ACTION FOR A CLAIM UNDER
THIS SECTION MUST BE BROUGHT WITHIN ONE YEAR AFTER THE DATE THAT THE
COMPLAINANT KNEW OR REASONABLY SHOULD HAVE KNOWN OF THE VIOLATION.

44-8047. Attorney general; enforcement; penalties

A. IN ADDITION TO ANY OTHER REMEDY AVAILABLE UNDER STATE LAW, THE
ATTORNEY GENERAL MAY BRING AN ACTION AGAINST A COVERED COMPANY, DEVELOPER
OR COMMERCIAL ENTITY TO:

1. RECOVER A CIVIL PENALTY OF NOT MORE THAN $75,000 FOR EACH
VIOLATION.

2. RESTRAIN OR ENJOIN THE COVERED COMPANY, DEVELOPER OR COMMERCIAL
ENTITY FROM VIOLATING THIS CHAPTER.

3. SEEK INJUNCTIVE RELIEF.

4. RECOVER REASONABLE ATTORNEY FEES.

5. RECOVER LITIGATION COSTS AND REASONABLE COSTS FOR INVESTIGATING
THE VIOLATION.

B. THE ATTORNEY GENERAL SHALL DEPOSIT, PURSUANT TO SECTIONS 35-146
AND 35-147, MONIES COLLECTED PURSUANT TO THIS SECTION IN THE TECHNOLOGY
CONTENT PROTECTION FOR MINORS GRANT FUND ESTABLISHED BY SECTION
44-1531.03.

44-8048. Immunity from liability

A. A DEVELOPER OR COVERED COMPANY IS IMMUNE FROM LIABILITY FOR A
VIOLATION OF THIS CHAPTER IF THE DEVELOPER OR COVERED COMPANY DEMONSTRATES
THAT THE DEVELOPER OR COVERED COMPANY BOTH:

1. RELIED IN GOOD FAITH ON BOTH:

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House Amendments to S.B. 1747

(a) THE APPLICABLE AGE SIGNAL AND, AGE SIGNAL INDICATES THAT THE
USER IS A CHILD AND THE PARENTAL OR GUARDIAN CONSENT INFORMATION RECEIVED
THROUGH THE COVERED COMPANY'S DATA SHARING METHODS.

(b) THE NOTIFICATION PROVIDED BY THE COVERED COMPANY THAT
VERIFIABLE PARENTAL OR GUARDIAN CONSENT WAS OBTAINED IF THE AGE SIGNAL
INDICATED THAT THE USER IS A CHILD.

2. IF A DEVELOPER, COMPLIED WITH THE DEFAULT ACCOUNT SETTINGS
REQUIREMENTS DESCRIBED IN SECTION 44-8043 SUBSECTIONS C AND D.

B. IN DETERMINING AN APPLICATION'S AGE RATING AND CONTENT
DESCRIPTION, A DEVELOPER IS NOT LIABLE FOR A VIOLATION OF THIS CHAPTER IF
THE DEVELOPER USES WIDELY ADOPTED INDUSTRY STANDARDS TO DETERMINE THE
APPLICATION'S AGE CATEGORY AND CONTENT DESCRIPTION AND APPLIES THOSE
STANDARDS CONSISTENTLY AND IN GOOD FAITH.

C. A DEVELOPER IS NOT LIABLE FOR TRANSMITTING AN INTERNAL AGE
SIGNAL TO A COVERED COMPANY FOR THE PURPOSES OF RECONCILING CONFLICTING
AGE SIGNALS PURSUANT TO SECTION 44-8044.

D. THE IMMUNITY DESCRIBED IN THIS SECTION BOTH:

1. APPLIES ONLY TO ACTIONS BROUGHT UNDER THIS CHAPTER.

2. DOES NOT LIMIT A DEVELOPER OR COVERED COMPANY'S LIABILITY UNDER
ANY OTHER APPLICABLE LAW.

E. THIS SECTION DOES NOT REPLACE ANY OTHER AVAILABLE REMEDY OR
RIGHT IN STATE OR FEDERAL LAW.

44-8049. Covered company compliance; nondiscrimination; use

of data

A. THIS CHAPTER DOES NOT MODIFY, IMPAIR OR SUPERSEDE THE OPERATION
OF ANY ANTITRUST LAWS, UNLESS OTHERWISE SPECIFIED.

B. A COVERED COMPANY SHALL COMPLY WITH THIS CHAPTER IN A
NONDISCRIMINATORY MANNER, INCLUDING BY COMPLYING WITH BOTH OF THE
FOLLOWING:

1. A COVERED COMPANY SHALL IMPOSE THE SAME RESTRICTIONS AND
OBLIGATIONS ON ITS OWN APPLICATIONS AND APPLICATION DISTRIBUTION AS THE
COVERED COMPANY IMPOSES ON THIRD-PARTY APPLICATIONS AND APPLICATION
DISTRIBUTORS.

2. A COVERED COMPANY MAY NOT USE DATA THAT IS COLLECTED FROM THIRD
PARTIES, OR CONSENT MECHANISMS DEPLOYED FOR THIRD PARTIES, IN THE COURSE
OF COMPLIANCE WITH THIS CHAPTER TO COMPETE AGAINST THOSE THIRD PARTIES,
GIVE THE COVERED COMPANY'S SERVICES PREFERENCE RELATIVE TO THOSE OF THIRD
PARTIES OR TO OTHERWISE USE THIS DATA OR CONSENT MECHANISM IN AN
ANTICOMPETITIVE MANNER.

Sec. 3. Severability

If a provision of this act or its application to any person or
circumstance is held invalid, the invalidity does not affect other
provisions or applications of the act that can be given effect without the
invalid provision or application, and to this end the provisions of this
act are severable.

Sec. 4. Effective date
Section 44-1531.03, Arizona Revised Statutes, and title 44, chapter

42, Arizona Revised Statutes, as added by this act, are effective one year
after the effective date of this act."

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House Amendments to S.B. 1747

1 Amend title to conform

1747BLACKMAN SE.docx
03/20/2026

01:59 PM

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WALT BLACKMAN
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILLNO. _ $B 1747

DATE

March 24, 2026

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COMMITTEE SECRETARY

ATTACHMENT 33
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE: 7-0-0-0 | Third Read 23-5-2-0-0

SB1641: marijuana producers; licensure
Sponsor: Senator Payne, LD 27
Committee on Commerce

Overview

Establishes the marijuana producer license for the cultivation and manufacturing of
marijuana and marijuana products. Applies various requirements for a licensed marijuana
establishment to a licensed marijuana producer.

History
The Arizona Department of Health Services (DHS) oversees and regulates the licensure of

healthcare facilities, childcare centers and medical and adult-use marijuana establishments.
DHS is required to adopt rules to regulate marijuana, marijuana products, marijuana
establishments and marijuana testing facilities, including licensing requirements (A.R.S. §

36-2854).

A marijuana establishment is any DHS licensed entity that operates a single: 1) retail site
for cultivation, manufacturing and consumer sales of marijuana and marijuana products; 2)
off-site cultivation facility for growing and manufacturing, but products may not be
transferred or sold; and 8) off-site manufacturing hub for processing, packaging and storage,
but products may not be transferred or sold (A.R.S. § 36-2850).

Provisions
Marijuana Producer Licensure; DHS Requirements
1. Requires DHS to adopt rules for the regulation and licensure of marijuana producers.
(Sec. 2)

2. Instructs DHS to begin accepting applications for marijuana producer licenses on
January 1, 2029. (Sec. 2)

38. Directs DHS, until January 1, 2082, to:

a. only accept applications from entities that, by January 1, 2026, contracted with a
marijuana establishment, nonprofit medical marijuana dispensary or management
company to have a right to cultivate marijuana or manufacture marijuana products
and retain all associated profits; and

b. prohibit the transfer or sublease of marijuana producer licenses and prohibit entities
that lack a marijuana producer license from cultivating marijuana or manufacturing
marijuana products at marijuana producer sites. (Sec. 2)

4. Authorizes DHS, beginning in 2082, to issue additional marijuana producer licenses. (Sec.
2)

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

Initials PB/ZE SB 1641
3/19/2026 Page 1 Commerce

ATTACHMENT 34
5. Prohibits DHS from imposing any restrictions or obligations on marijuana producers that
are not imposed on marijuana establishments, unless specifically identified in statute.
(Sec. 2)

6. Specifies a marijuana producer license is valid for two years. (Sec. 2)

Marijuana Producer; Lawful Operation
7. Specifies it is lawful for a marijuana producer, or an agent acting on behalf of a marijuana

producer to:

a. possess marijuana or marijuana products;

b. purchase, sell or transport marijuana and marijuana products to or from a marijuana
establishment or marijuana producer; and

c. cultivate, produce, test or process marijuana or marijuana products by any means,
including chemical extraction or chemical synthesis. (Sec. 4)

8. Adds that it is lawful for a marijuana establishment, or an agent acting on behalf of a
marijuana establishment to purchase, sell or transport marijuana and marijuana
products to or from a marijuana producer. (Sec. 4)

Miscellaneous
9. Defines marijuana producer as an entity that is licensed by the department to operate a
single location at which the licensee may cultivate marijuana, process marijuana,
manufacture marijuana products and package and store marijuana and marijuana
products but from which marijuana and marijuana products may not be transferred or
sold to consumers, (Sec. 1)

10. Applies certain statutory requirements and restrictions for licensed marijuana
establishments to licensed marijuana producers relating to:

packaging restrictions; and
transaction privilege taxes. (Sec. 2, 3, 4, 5, 6, 7, 8)

a. DHS restrictions;

b. locality regulations;
c. operations;

d. advertising;

e,

f.

11. Stipulates any citizen may commence a special action in superior court to compel DHS to
perform the specified actions if DHS fails to begin accepting applications in accordance
with statute. (Sec. 9)

12. Contains a Proposition 105 clause. (Sec. 10)
13. Makes a technical change. (Sec. 7)

Initials PB/ZE SB 1641
3/19/2026 Page 2 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. SB 1641

DATE March 24, 2026 MOTION: D id

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APPROVED: COMMITTEE SEGRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 35
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: GOV DP 4-3-0-0 | Third Reading 16-11-3-0-0

SB1432: central bank digital currency; ban
Sponsor: Senator Hoffman, LD 15
Committee on Commerce

Overview

Prohibits federally recognized Central Bank Digital Currency (CBDC) from being recognized
as legal tender or used as a medium of payment of any contract, security or other similar
instrument.

History
CBDC is generally defined by the Federal Reserve as a digital form of central bank money

that is widely available to the general public.

On January 23, 2025, Executive Order 14178 prohibited agencies from undertaking any
action to establish, issue or promote CBDCs within U.S. jurisdiction and terminated all
CBDC related initiatives. The Executive Order defined CBDC as a form of digital money or
monetary value, denominated in the national unit of account, that is a direct liability of the
central bank.

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.).

Provisions

1. Prohibits federally recognized CBDCs from being used as legal tender or from being the
subject or medium of payment of any contract, security or other similar instrument in
Arizona, including contracts relating to commercial transactions. (Sec. 1)

2. Establishes legal tender as any medium of exchange, including specie, that is authorized
by the U.S. Constitution or Congress for the payment of debts, public charges, taxes and
dues. (Sec. 1)

Defines specie as coins that have precious metal content. (Sec. 1)

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

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

Initials SB 1432
2/19/2026 Page 1 Commerce

- ATTACHMENT 36¢
5. Prohibits transfers made by an escrow agent from an escrow account from being settled
or backed by federally recognized CBDC. (Sec. 2)

listablishes legal tender and specie as uniform statutory definitions. (Sec. 1)

Makes technical and conforming changes. (Sec. 3-10)

Initials SB 1432
2/19/2026 Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1432
DATE March 24, 2026 MOTION: Df
PASS AYE NAY PRESENT | ABSENT

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APPROVED:

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MICHAEL WAY, Vice-Chairman

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