Arizona House of Representatives Committee on Commerce Meeting Minutes - March 22, 2022

Summary

Minutes of the regular meeting of the Committee on Commerce of the Arizona House of Representatives, Fifty-fifth Legislature, Second Regular Session, held Tuesday, March 22, 2022, with Jeff Weninger as Chairman and Joseph Chaplik as Vice-Chairman. The meeting convened at 2:09 P.M. and adjourned at 5:46 P.M., and included presentations by young entrepreneurs. The committee action report lists SB1278 and SB1179 as DPA/SE and SB1021, SB1168 and SB1396 as DPA. Attachments include the agenda, the Request to Speak report listing those who supported, opposed or were neutral on each bill, the attendance record, bill summaries, proposed amendments and roll call votes. The summary of SB 1396, a hydrogen study committee bill, describes a report due by September 1, 2023 and repeal of the committee on October 1, 2024.

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

Cite this document

“Arizona House of Representatives Committee on Commerce Meeting Minutes - March 22, 2022.” Original at www.azleg.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/committee-a4c0f514f8882a65/, SHA-256 f264e33f70e16c0b47f7d5ed733da15fd89c275e5496021bc5069d3b41872e2e.

Full text

Convened 2:09 P.M.

Recessed
Reconvened

Adjourned 5:46 P.M.

Members Present
Mr. Carter

Mr. Chavez

Mr. Cook

Mr. Espinoza

Mr. Kaiser

Mrs. Liguori

Mr. Meza

Mr. Wilmeth

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

COMMITTEE ON COMMERCE
Report of Regular Meeting

Tuesday, March 22, 2022
House Hearing Room 3 -- 2:00 P.M.

Mr. Chaplik, Vice-Chairman
Mr. Weninger, Chairman

Agenda

Original Agenda — Attachment !

Request to Speak

Report — Attachment 2

Committee Attendance

Report — Attachment 3

Presentations
Name
Nic Brown
Jeremy Shockley
Izabella Garcia

Liliya Garcia
Patricia Romero

Committee Action

Bill Action
SB1278 DPA/SE
SB1021 DPA

SB1168 DPA

MINUTES RECEIVED
CHIBF CLERK'S OFFICE
3-24-22
Members Absent
Organization Attachments (Handouts)
Connect-UV and Dr. Shine My Ride
Eleoptics 4
Izabella Meal Preps and Golden Coffee
Café
Radiant Beauty by Liliya
Nicely Clean Auto
Vote Attachments

6-3-0-1 5, 6,7
8-2-0-0 8,9, 10, 11, 12, 13
9-0-0-1 14, 15, 16

COMMITTEE ON COMMERCE
March 22, 2022
SB1179 DPA/SE 9-0-0-1 17, 18, 19
$B1204. DPA 9-0-0-1 20, 21, 22
SB1396 DPA 9-0-0-1 23, 24,25.

C Joccuil ab on l oll

Jacqueline Denlinger, Committee Sé& geretary
March 24, 2022

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

convened + 2:09 pM

od purned & pin
REVISED #3 - 3/21/22 REVISED #3 - 3/21/22 REVISED - 3/21/22

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

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 22, 2022 ROOM HHR3 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https:/Avww.azlee.gow/videoplayer/?clientID=6361 162879&eventID=202203 1099

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

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

Presentations:
Yous Entrepreneurs:
¢ Nic Brown, Connect-UV and Dr, Shine My Ride

-Lagan-Graves,-Eleapitcs

Jeremy Shockley, Eleopitcs

Patricia Romero, Nicely Clean Auto

Izabella Garcia, Izabella Meal Preps and Golden Coffee Cafe

Liliya Garcia, Radiant Beauty by Liliya

Biils Short Title Strike Everything Title

SB1021 health care liens; limitation
(Zz. z) § DPA (Ugenti-Rita)

20-0 "COM, RULES

*SB1I168 DP A vacation rentals; short-term rentals; enforcement
(Mesnard: Kaiser)

4-0-0-| COM, RULES

Bi179 D PASE Ise technical correction; release of animals(now: S/E: video service; boundary change;
JLBC; reporting) definition

g -O -0- ‘O-} (Gowan)
COM, RULES

Page 1 of 2

Attachment i
Bills Short Title Strike Everything Title

S 04 D D /\ mortgage brokers; bankers; qualifications
gS (Pace: Cook)
COM, RULES

*SB1278 pp A | St. wage rates; technical correction(now: labor S/E: labor benefits organizations; damages;
t organizations; fiduciary guidelines; definitions) _ definitions

bs “3-0 “| (Mesnard)
COM held 0-0-0-0-0, RULES

SB1396 ~ hydrogen study committee
DPA (Shope)

~/J 4-0-0-] com, RULES

SB1567 vaccinations; prohibitions: evidence-of
exemption)
____ Barto)

COM-w/d JUD RULES

* On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

DF
03/21/2022

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

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

Page 2 of 2

Information Registered on the Request to Speak System

House Commerce (8/22/2022)

SB1021, health care liens: limitation

Testified in support:
Don Isaacson, STATE FARM INSURANCE COMPANIES; Marc Osborn, ALLSTATE INSURANCE CO, Geico; Liberty
Mutual Insurance; Nationwide insurance; Robert Dalager, FAIR ACCIDENT INJURY RECOVERY; Justin Henry,

representing self; Joel DeCiancio, representing self

Testified as neutral:
Steve Barclay, Arizona Medical Association, Arizona Osteopathic Medical Association, Injury Care Solutions

Testified as opposed:
Tom Farley, Health Systems Alliance Of AZ; Maya Zuckerberg, representing self; Trever Penny, representing self;
Beth Zuckerberg, representing self; Gregory Katsaros, representing self

Support:
Marie tsaacson, STATE FARM INSURANCE COMPANIES; Lisa Gentry, representing self; Kerry L. Hayden, UNITED
SERVICES AUTOMOBILE ASSN (USAA)

Neutral:
J. Michael Low, MUTUAL INSURANCE COMPANY OF AZ (MICA); Laura Magnus, Injury Care Solutions; Dorothy

Sunenshine, representing self

Oppose:

Jason Bezozo, Senior Program Director, Government Relations, BANNER HEALTH ARIZONA; Kristen Boilini,
AMERICANS FOR PATIENT ACCESS; James Candland, Airzona Association Of Chiropractic; Tom Dorn, Arizona
Physical Therapy Association; John MacDonald, Valleywise Healthcare; Shirley Gunther, DIGNITY HEALTH; Lauren
King, TENET HEALTH; Christine Maceri Genge, representing self; Michelle Pabis, HONORHEALTH; Webb Cochran,
TENET HEALTH; Jennifer Carusetta, PHOENIX CHILDREN'S HOSPITAL; Meghan McCabe, AZ HOSPITAL &
HEALTHCARE ASSN; Wendy Jonessee, representing self; Brittney Kaufmann, HEALTH SYSTEM ALLIANCE OF
ARIZONA; Douglas Lowden, NORTHERN ARIZONA HEALTHCARE

Ail Comments:

Kerry L. Hayden, UNITED SERVICES AUTOMOBILE ASSN (USAA): We support the Kaiser amendment. We oppose
the Cook amendment.; Beth Zuckerberg, Self: This bill is detrimental to healthcare providers that treat patients on
alien and will limit patient access to care.; Jason Bezozo, BANNER HEALTH ARIZONA: Please support Rep. Cook's
amendment; Kristen Boilini, AMERICANS FOR PATIENT ACCESS: Support both Kaiser and Cook Amendments.; Tom
Dorn, Arizona Physical Therapy Association: We are opposed to the bill. However, we do support the Cook and
Kaiser amendments being included if the bill is going to move out of committee.; Shirley Gunther, DIGNITY
HEALTH: Opposed to the bill without the Cook Amendment; Michelle Pabis, HONORHEALTH: Support Cook
amendment; Webb Cochran, TENET HEALTH: Support Cook Amendment; Meghan McCabe, AZ HOSPITAL &

Attachment 2.
HEALTHCARE ASSN: AZHHA supports the Cook amendment; Brittney Kaufmann, HEALTH SYSTEM ALLIANCE OF
ARIZONA: We support the Cook amendment.; Steve Barclay, Arizona Medical Association, Arizona Osteopathic
Medical Association, Injury Care Solutions: My clients were opposed to the bill as it passed the Senate, but with the
Kaiser amendment they are willing to move to a neutral position.; J. Michael Low, MUTUAL INSURANCE COMPANY
OF AZ (MICA): MICA is neutral with the proposed amendment; Laura Magnus, Injury Care Solutions: Neutral with

the Kaiser amendment

8B1168, vacation rentals; short-term rentals; enforcement

Testified in support:
Roxanna Pitones, LEAGUE OF ARIZONA CITIES & TOWNS; Linda Curry, representing self

Testified as neutral:
Tom Farley, Arizona Association Of Realtors; Douglas Cole, PARADISE VALLEY, TOWN OF; Paul Senseman, City Of
Sedona; Jake Hinman, AZ MULTIHOUSING ASSOCIATION; Jerry Bien Willner, representing self

Testified as opposed:
Susan Edwards, representing self; William Hunter, representing self; Sandra Scanlan, representing self

Support:

Wendy Briggs, EXPEDIA INC; Barbara Meaney, Sonder; Jack W Lunsford, Town Of Fountain Hills; David Wolf,
representing self; Charlie Silver, representing self; Laura Magnus, EXPERIENCE SCOTTSDALE, VISIT MESA; Nicole
LaSlavic, ARIZONA LODGING AND TOURISM ASSOCIATION; Lisa Gentry, representing self; Mike Johnson,
representing self; Trey Williams, COCONINO COUNTY; Jeff Sandquist, EXPEDIA INC; Don Isaacson, AMERICAN
RESORT DEVELOPMENT ASSOCIAITON; Marie Isaacson, AMERICAN RESORT DEVELOPMENT ASSN; Christopher

deVries, representing self

Neutral:
Anna Thomasson, representing self; Barry M. Aarons, SCOTTSDALE, CITY OF, VISIT PHOENIX

Oppose:

Timothy Scarpino, representing self; Christine Maceri Genge, representing self; Wendy Jonessee, representing
self; david mason, representing self

All Comments:
Roxanna Pitones, LEAGUE OF ARIZONA CITIES & TOWNS: Support the Kaiser committee amendment; Linda Curry,

Self: Bill 1168 will change the behavior of the bad players in this industry allowing responsible owners to continue
contributing to Arizona tourism in the direction visitors prefer.; Wendy Briggs, EXPEDIA INC: In support w/
amendments in House Com 3/22; Barbara Meaney, Sonder: We support the stakeholder process and are
committed to further discussion to resolve several outstanding issues.; Jack W Lunsford, Town Of Fountain Hills:
Please vote YES on the amendment to $B1168, and then YES on the bill as amended. Thank you. Jack; David Wolf,
Self: Short-term rentals are out of control. There is no tax parity with other lodging operations, areas in rural areas
with high fire danger should not be permitted for STRental.; Laura Magnus, EXPERIENCE SCOTTSDALE, VISIT MESA:
Support with the Kaiser amendment; Mike Johnson, Self: Short term rentals as they are allowed currently have
severely damaged many Arizonans quality of life. We are faced with huge increases in traffic, being priced out of
our local housing markets and have to deal with "party houses " .; Jeff Sandquist, EXPEDIA INC: In support of Kaiser
amendment; Susan Edwards, Self: As is, this won't solve anything. 97% of STRs are w/o TPT & illegal now; DOR
can't even respond when notified. Owner & operator are assumed to be the same, but aren't. Verified listings
would actually help, as would licensing the property.; William Hunter, Self: As written 1168 will be unenforceable
and still doesn't address the broader STR problems of occupancy limits, public safety, housing affordability, tax
cheats, STR concentration, etc- Its a complex issue that needs comprehensive, thoughtful policies; Sandra Scanlan,
Self: This bill is lacking in any constructive help for Arizona residents.; david mason, Self: SB1168 does too little. it
should better address non-compliance, licensing, enforcement, and local regulation, even if the STR industry
objects. The people are the only side, and Homeowner “Quiet enjoyment” property rights are superior.; Jerry
Bien Willner, Self: Mayor of the Town of Paradise Valley; Anna Thomasson, Self: Town of Paradise Valley Vice

Mayor

$B1179, technical correction; release of animals (NOW: JLBC;
reporting)

Testified in support:
Mike Gardner, DIRECT TV INC, DISH NETWORK LLC; Hamlin Wade, representing self

Testified as neutral:
Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS

Suppott:
Meghaen Dell'Artino, COX COMMUNICATIONS ARIZONA, LLC

Neutral:
Wendy Jonessee, representing self

All Comments:
Hamlin Wade, Self: Representing DIRECTV and DISH Network; Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS:

Working with proponents on amendments to address our concerns.

SB1204, mortaage brokers: bankers; qualifications

Testified in support:
Stuart Goodman, INTUIT; Paul Senseman, Rabo Bank

Neutral:
Tom Farley, Arizona Mortgage Lenders Association; Wendy Jonessee, representing self
§B1278, wage rates: technical correction (NOW: labor organizations;
fiduciary guidelines; definitions

Testified in support:
Jack Biltis, representing self

Support:

Wendy Jonessee, representing self; Lisa Gentry, representing self

Oppase:

Stephanie Seigla, representing self

All Comments:
Jack Biltis, Self: This is a technical change to better coordinate with federal law.

SB1396, hydrogen study committee

Testified in support:
Helen Heiden, SOUTHWEST GAS CORP; Alana Langdon, NIKOLA CORPORATION

Support:

Steve Trussell, Arizona Mining Association; Russell Smoldon, AZ MUNICIPAL POWER USERS ASSN, IRRIGATION &
ELECTRICAL DISTRICTS ASSOCIATION OF ARIZONA, INC.; Daniella Smith, Arizona Coalition For Working Families;
Courtney Coolidge, AZ CHAMBER OF COMMERCE; Wendy Jonessee, representing self; Keaton Hill, Arizona Building

Trades; Stan Barnes, NEXTERA ENERGY RESOURCES, LLC

Oppose:

Sandy Bahr, Sierra Club - Grand Canyon Chapter; Rivko Knox, representing self; Thomas Krepitch, representing self;
Harry Lumley, representing self; Rebecca Smith Gross, representing self; Peggie Jo Vincent, representing self;
Beverly Janowitz-Price, representing self; Eve Shapiro, representing self; Kenneth Bierman, representing self; Alisa
McMahon, representing self; Michael Fiflis, representing self; Sandy Whitley, representing self; Karen Cusano,
representing self; Barbara Hutchinson, representing self; Becky Sayler, representing self; Jackie Rich, representing
self; Kathy Fraser, representing self; Linda Bentley, representing self; Kathryn Pensinger, representing self; Don
Bentley, representing self; Jim Moran, representing self; Kathleen Dubbs, representing self; Nancy Santori,
representing self; Jana Segal, representing self; Betty King, representing self; Patricia Dow, representing self;
Duane Ediger, representing self; Dorothy Reed-Inman, representing self; Irwin Sheer, representing self; Margaret
Owen, representing self; Diane Hermann, representing self; Tom Hermann, representing self; Sherry Massie,
representing self; Lynn DeMuth, representing self; Theresa Paszkiewicz, representing self; Karen Muir,
representing self; Barbara Reuter, representing self; Charlene Hoffman, representing self; Peter Bengston,
representing self; Birgit Loewenstein, representing self; Catherine Della Penta, representing self

All Comments:
Sandy Bahr, Sierra Club - Grand Canyon Chapter: Please focus this study committee on green hydrogen and how to

promote that, not methane-derived hydrogen.; Alisa McMahon, Self: What about hydrogen derived from water as
opposed to gas?; Michael Fiflis, Self: Hydrogen studies require specialized knowledge legislators do not have.;
Sandy Whitley, Self: Studying hydrogen and a fossil free energy source would be okay if it did not blend hydrogen
with fracked gas which defeats the purpose. Better to study green hydrogen, derived from water.; Jackie Rich,
Self: Why not include consideration of green hydrogen? Scope is strangely limited.; Jana Segal, Self: There is no
specific provision for studying green hydrogen -- hydrogen derived from water, not methane gas; Irwin Sheer, Self:
Fracking puts our our incredibly vulnerable ground water at risk.; Margaret Owen, Self: Shouldn't a hydrogen study
committee also be studying "green" hydrogen, which is derived from water, not methane gas?; Barbara Reuter,

Self: Hydrogen?

PLEASE COMPLETE THIS FORM FOR THE PUBLIC RECORD

HOUSE OF REPRESENTATIVES

Please PRINT Clearly fo™

Committee on Cs hy rere Bill Numbed / S 9 4
No
Date LE Ee | zZ L support [] Oppose UI Neutral

Name Soren : 207 f alen Need to speak? 21 Yes LI. No
Representing WV ho ZZ A Are you a registered lobbyist? Va

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Email Address sodZe J 2 A151- Zen __ Phone Number SL x “Ss ~ 9 8 3 +}

Comments:

*** Sneaking limit determined by Chair ***

PLEASE COMPLETE THIS: FORM ‘FOR’ THE PUBLIC RECORD

HOUSE OF REPRESENTATIVES =)

Please PRINT Clearly

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Date iT / A23\ UL XSupport Oppose O Neutral

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Representing - WA Are you a registered lobbyist? RO
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Comments:

#8 PTVE-MINUTE SPEAKING LIMIT***
PLEASE COMPLETE THIS FORM FOR THE PUBLIC RECORD /

HOUSE OF REPRESENTATIVES

Please PRINT Clearly

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Committee on Coram OC Bill Number Lb 8

Date VLE ZZ ple [] support © Oppose I Neutral:

Name Darot “ LA. Need to speak? A ves [1 No

Representing fA ‘4 bab Are you a registered lobbyist? Yes

Complete Address Fé LO A/ “ Lhe Ae Manone
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Comments:

*** Speaking limit determined by Chair ***

PLEASE COMPLETE THIS FORM FOR THE PUBLIC RECORD

HOUSE OF REPRESENTATIVES

Please PRINT Clearly

Committee on Com Nee Bill Number |0 i. |
Date 7 /22/L2- C1 support JX Oppose 0 Neutral
wath Spdtew 4 HlG Need to speak? (ZI Yes C1 No

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Representing 4 oy € [ f Are you a registered lobbyist?
Complete Address LEE. A Pt 2-
Email Address Phone Number _.

Comments:

ARIZONA STATE LEGISLATURE
Fifty-fifth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: Joseph Chaplik
DATE 03/22/22 122 /22 122 122
CONVENED t.:OF am m m m m
RECESSED
RECONVENED
ADJOURNED Ss 4b on
MEMBERS
Carter V
Chavez V
Cook wa
Espinoza wa
Kaiser ava
Liguori VA
Meza %
Wilmeth wa
Chaplik, Vice-Chairman i)
Weninger, Chairman aan

V Present --- Absent exc Excused

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DPA/SE 5-3-1-0 | 3° Read 16-12-2-0

SB 1278: labor organizations; fiduciary guidelines; definitions
S/E: labor benefits organization; damages; definitions
Sponsor: Senator Mesnard, LD 17
Committee on Commerce

Summary of the Strike-Everything Amendment to $B 1278

Overview
Outlines damages against a labor benefits organization for certain benefits and an exemption

from the liability.

History
Pursuant to A.R.S. § 23-1421, a labor organization that collects benefit monies or union dues is

subject to similar fiduciary guidelines as required by employers or third-party administrators
providing benefits to employees. These requirements include:
4) annually disclosing specified financial information to its members;
2) permitting a member to obtain various benefits of the member's own choosing instead of
the benefits offered by the labor organization;
3) any fringe benefit contributions received by the labor organization being refunded to the
employee; and
4) not accepting dues or benefits contributions for employees that have not voluntarily joined
the union.

Provisions

4. Repeals current statute relating to fiduciary guidelines for labor organizations. (Sec. 1)

2. Entitles an employee to recover triple the calculated damages from a labor benefits
organization for benefits paid by the employee. (Sec. 2)

3, Entitles an employer to recover triple the calculated damages from a labor benefits
organization for benefits incurred by the employer. (Sec. 2)

4. Outlines what level of monies paid for benefits is excessive and the calculated damages that
may be recovered from them. (Sec. 2)

5. Specifies that a benefit established by a labor benefits organization is considered:
a) disproportionate and excessive if it has an hourly or daily rate and the underlying expense
is not directly tied to the individual contribution for that employee; and
b) discriminatory if it does not result in a direct and additional benefit to an employee who

works additional hours. (Sec. 2)

6. Asserts that a labor benefits organization has a duty to act in the best interests of its member
employees, including not charging excessive rates. (Sec. 2)

QO Prop 105 (45 votes) Cl Prop 108 (40 votes) 1 Emergency (40 votes) 0 Fiscal Note

SB 1278
Initials NM/PRB Page 1 Commerce

eee cnet Attachment )

7. Asserts that an employer is presumed to be in a disadvantageous position to a labor benefits
organization if it uses a standardized labor union agreement and the employer has limited

negotiating power. (Sec. 2)
8. Exempts a labor benefits organization from liability for benefits if it:

a) provides a reconciliation to its member employees that contains specified information that
allows an employee to determine the costs and expenses of the benefits provided by the

labor benefits organization;
b) allows an employee to opt out of any health, pension, vacation leave or sick leave benefits
and allows the employer to withhold payment to the labor benefits organization for that

particular benefits category;
c) eliminates any penalty for an employer to use employees that are not affiliated with the

labor benefits organization; and
d) eliminates any penalty for an employee or employer to terminate the relationship with the

labor benefits organization. (Sec. 2)

9. Applies the benefits liability and exemption to any labor benefits organization that negotiates
the rates or collects monies for employee benefits on behalf of a resident of Arizona or an

employer that is located in Arizona. (Sec. 2)

40, Excludes from the benefits liability and exemption: a) an employer of an employee, insurer,
insurance agent, investment management firm or third-party administrator preforming a purely

administrative role; and b) a government employee. (Sec. 2)

11. Defines benefits and labor benefits organization. (Sec. 2)

SB 1278
Initials NM/PRB Page 2 Commerce

Commerce

Fifty-fifth Legislature
S.B, 1278

Second Regular Session

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PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1278

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Repeal
Section 23-1421, Arizona Revised Statutes, is repealed.

Sec. 2. Title 23, chapter 8, article 7, Arizona Revised Statutes, Ts

amended by adding a new section 23-1421, to read:
23-1421. Labor benefits organizations; damages; presumptions:

applicability: definitions
A. AN EMPLOYEE MAY RECOVER THREE TIMES THE CALCULATED DAMAGES FROM A
LABOR BENEFITS ORGANIZATION FOR BENEFITS PAID BY THE EMPLOYEE. AN EMPLOYER
MAY RECOVER THREE TIMES THE CALCULATED DAMAGES FROM A_ LABOR BENEFITS
ORGANIZATION FOR THE COST OF BENEFITS INCURRED BY THE EMPLOYER. THE

CALCULATED DAMAGES ARE AS FOLLOWS:
1. FOR HEALTH, PENSION OR VACATION OR SICK LEAVE BENEFITS, ANY MONIES

PAID FOR THE CATEGORY OF THE EMPLOYEE DURING A TWELVE-MONTH PERIOD THAT IS
MORE THAN ONE HUNDRED TWENTY PERCENT OF THE COST OF AN EQUIVALENT PLAN OR
INSURANCE POLICY. TO SHOW EQUIVALENCY, THE PLAINTIFF MAY SUBMIT A
MATHEMATICAL OR AN ACTUARIAL DATA ANALYSIS THAT DEMONSTRATES THAT THE
EMPLOYEE WOULD HAVE RECEIVED AT LEAST NINETY-FIVE PERCENT OF THE SAME VALUE
FROM A PRODUCT AVAILABLE THROUGH THE EMPLOYER OR ON THE GENERAL MARKET.

2, FOR TRAINING BENEFITS, ANY MONIES PAID IN EXCESS OF ONE HUNDRED
TWENTY PERCENT OF ANY REASONABLE TRAINING COSTS INCURRED DURING A
TWELVE-MONTH PERIOD FOR THE SPECIFIC BENEFIT OF THE EMPLOYEE’S JOB SKILL.

_ Adopted 7 # of Verb

| Failed _ Withdrawn.

Attachment lo Not Offered __ Analysts Initials

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CO Ww Me RM MR STS MT TS MFO HY HB NH FY &
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House Amendments to S.B. 1278

3, FOR ANY OTHER BENEFIT, ANY MONIES PAID IN EXCESS OF $1,000 DURING
A TWELVE-MONTH PERIOD WHERE NO DIRECT BENEFIT CAN BE ATTRIBUTED TO THE
EMPLOYEE.

4, FOR ALL OTHER BENEFITS THAT ARE NOT INCLUDED IN PARAGRAPH 1, 2 OR
3 OF THIS SUBSECTION, ANY MONIES PAID BY THE EMPLOYEE DURING A TWELVE-MONTH
PERIOD FOR HOURS WORKED IN EXCESS OF THE LESSER AMOUNT OF ANY OF THE

FOLLOWING:
(a) IF THE EMPLOYEE WAS NOT ELIGIBLE FOR A BENEFIT DURING THE

TWELVE-MONTH PERIOD, THE AMOUNT IS ZERO.
(b) IF THE BENEFIT CONTAINS AN ELIGIBILITY PROVISION, THE HOURS

REQUIRED TO REMAIN ELIGIBLE.

(d) ONE THOUSAND EIGHT HUNDRED HOURS.

B. A LABOR BENEFITS ORGANIZATION IS NOT LIABLE PURSUANT TO THIS

SECTION IF THE LABOR BENEFITS ORGANIZATION SATISFIES ALL OF THE FOLLOWING:

1. PROVIDES A RECONCILIATION TO ITS MEMBER EMPLOYEES THROUGH UNITED
STATES MAIL OR EMAIL THAT WOULD REASONABLY ALLOW AN EMPLOYEE TO DETERMINE
THE COSTS AND EXPENSES OF THE BENEFITS. THE RECONCILIATION MUST BE LISTED
BY BENEFIT FOR A TWELVE-MONTH PERIOD AND PROVIDE THE FOLLOWING:

(a) THE SPECIFIC RATES CHARGED TO THE EMPLOYEE AND EMPLOYER,

(b) THE DIRECT EXPENSE RATES CHARGED TO THE PLAN BY THIRD-PARTY

INSURERS AND PLAN PROVIDERS.
(c) THE TOTAL NUMBER OF EMPLOYEES, INCLUDING HOURS AND REVENUE

COLLECTED IN THIS STATE AND NATIONALLY.
(d) THE TOTAL DIRECT CLAIMS EXPENSES OR PAYMENTS TO BENEFICIARIES, IF

ANY, IN THIS STATE AND NATIONALLY.
(e) A LIST OF TOTAL PAYMENTS MADE TO ANY THIRD-PARTY INSURERS OR PLAN

PROVIDERS IN THIS STATE AND NATIONALLY.
(f) A LIST OF ALL ADMINISTRATIVE EXPENSES INCURRED IN THIS STATE AND

NATIONALLY.
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House Amendments to S.B. 1278

(g) A LIST THAT SUMMARIZES THE DIFFERENCE BETWEEN THE REVENUES AND
EXPENSES IN SUBDIVISIONS (a) THROUGH (f) OF THIS PARAGRAPH IN THIS STATE AND
NATIONALLY LISTED IN TOTAL DOLLARS AND AS A PERCENTAGE OF REVENUE.

2. ALLOWS AN EMPLOYEE TO OPT OUT OF ANY HEALTH, PENSION OR VACATION
OR SICK LEAVE BENEFITS AND TO CHOOSE EITHER:

(a) BENEFITS FROM THE EMPLOYEE'S EMPLOYER IF THE EMPLOYER AGREES AND
THE EMPLOYER WITHHOLDS PAYMENT TO THE LABOR BENEFITS ORGANIZATION FOR THAT
PARTICULAR BENEFIT CATEGORY.

(b) BENEFITS OUTSIDE THE EMPLOYMENT RELATIONSHIP IF THE EMPLOYER
WITHHOLDS PAYMENT FROM THE LABOR BENEFITS ORGANIZATION FOR THAT PARTICULAR
BENEFIT CATEGORY AND FORWARDS THE MONIES TO THE EMPLOYEE.

3. ELIMINATES ANY PENALTY FOR AN EMPLOYER TO USE EMPLOYEES THAT ARE
NOT AFFILIATED WITH THE LABOR BENEFITS ORGANIZATION.

4, ELIMINATES ANY PENALTY FOR AN EMPLOYEE OR EMPLOYER TO TERMINATE
THE RELATIONSHIP WITH THE LABOR BENEFITS ORGANIZATION, INCLUDING LIABILITY
FOR ANY BENEFITS THAT ARE ACTUARILY UNDERFUNDED.

C. FOR THE PURPOSES OF THIS SECTION:
1. ANY BENEFIT THAT IS ESTABLISHED WITH AN HOURLY OR DAILY RATE WHERE

THE UNDERLYING EXPENSE IS NOT DIRECTLY TIED TO THE INDIVIDUAL CONTRIBUTION
FOR THAT EMPLOYEE IS PRESUMED TO BE DISPROPORTIONATE AND EXCESSIVE. IF AN
EMPLOYEE WORKS ADDITIONAL HOURS AND THE CHARGES TO THE EMPLOYEE DO NOT RESULT
IN A DIRECT ADDITIONAL BENEFIT TO THE EMPLOYEE, THE BENEFITS ARE
DISCRIMINATORY.

2, A LABOR BENEFITS ORGANIZATION HAS A DUTY TO ACT IN THE BEST
INTERESTS OF ITS MEMBER EMPLOYEES, INCLUDING NOT CHARGING EXCESS RATES.

3. IF A LABOR BENEFITS ORGANIZATION USED A STANDARDIZED LABOR UNION
AGREEMENT AND THE EMPLOYER HAD LIMITED NEGOTIATING POWER, THE EMPLOYER IS
PRESUMED TO BE IN A DISADVANTAGEOUS POSITION TO THE LABOR BENEFITS
ORGANIZATION.

D. THIS SECTION APPLIES TO ANY LABOR BENEFITS ORGANIZATION THAT
ESTABLISHES OR NEGOTIATES THE RATES OR COLLECTS MONIES FOR EMPLOYEE BENEFITS
Oo Oo NY DD NM BP WW DY &

ne ree sceel oe on
Oo Own DA OM BW MH FEF Oo

House Amendments to S.B. 1278

ON BEHALF OF A RESIDENT OF THIS STATE OR AN EMPLOYER THAT IS LOCATED IN THIS

STATE.
E. THIS SECTION DOES NOT APPLY TO EITHER:
1. AN EMPLOYER OF AN EMPLOYEE, INSURER, INSURANCE AGENT, INVESTMENT

MANAGEMENT FIRM OR THIRD-PARTY ADMINISTRATOR PERFORMING A PURELY

ADMINISTRATIVE ROLE.
2. AN EMPLOYEE WHO IS EMPLOYED BY THE FEDERAL GOVERNMENT OR A

POLITICAL SUBDIVISION OF THIS STATE.
F, FOR THE PURPOSES OF THIS SECTION:

1, "BENEFITS":
(a) MEANS MONIES PAID BY AN EMPLOYEE OR EMPLOYER TO A LABOR BENEFITS

ORGANIZATION FOR THE BENEFIT OF THE EMPLOYEE AND INCLUDES HEALTH, PENSION,
VACATION OR SICK LEAVE OR OTHER BENEFITS.

(b) DOES NOT INCLUDE LABOR ORGANIZATION MEMBERSHIP DUES.

2. “LABOR BENEFITS ORGANIZATION" INCLUDES ANY LABOR ORGANIZATION AS
DEFINED IN SECTIONS 23-1301 AND 23-1321 AND ANY TAFT HARTLEY TRUST, OTHER
FUND OR ENTITY USED TO ADMINISTER ANY BENEFIT REQUIRED BY A LABOR AGREEMENT
ADOPTED BY A LABOR BENEFITS ORGANIZATION.”

Amend title to conform

JEFF WENINGER

T27SBEANK
O34 672622
Srt9o-P
Cr Sk

1278WENINGER
03/17/2022
3:47 PM

H: PRB/1s

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1278
DATE March 22, 2022 motion: D¢A {SE

PASS AYE NAY PRESENT | ABSENT
Carter wi
Chavez eo
Cook LL
Espinoza Vo
Kaiser Wa
Liguori wa
Meza WA
Chaplik, Vice-Chairman ~~
Weninger, Chairman V7

6b | 319 ]

C I, soul ay on lena

APPROVED: COMMITTEE SECRETARY

VAN ji

~ JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT. |
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

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

SB 1021: health care liens; limitation
Sponsor: Senator Ugenti-Rita, LD 23
Committee on Commerce

Overview
Prescribes health care provider lien and assignment restrictions and compromise requirements.

History
Any health care provider, health care institution or ambulance entity that provides care and

treatment or transportation services to an injured person may assert a lien on the injured person's
claims settlement to recover costs associated with the services provided. A county that maintains,
operates or provides health care services may impose an assignment on an injured person's
settlement for costs associated with the care and treatment or transportation of the injured person.
The lien or assignment extends to all claims of liability or indemnity, except health insurance and
underinsured motorist and uninsured motorist coverage benefits (A.R.S. § 33-931).

In order to perfect a lien, a health care provider or health care institution must record a verified
written statement with the county recorder in the county where the health care provider or health
care Institution is located within 30 days after an injured person receives any medical services or
is discharged. The statement must include: 1) the dates of services received by the injured person;
2) the amount claimed due for services; 3) the name and address of the injured person; and 4)
the name and location of the health care provider or heaith care institution. Within five days after
recording the claim or lien, the health care provider or health care institution must mail a copy to
the injured person and either mail or provide notice to all persons, firms or corporations and
insurance carriers liable for damages, as applicable (A.R.S. § 33-932).

Provisions
1. Specifies health care provider liens and county assignments are subject to prescribed

restrictions. (Sec. 1)

2. Prescribes the following restrictions to liens and assignments:

a) exempts the first $20,000 of any third-party judgment, settlement or award from any
authorized lien or assignment;

b) stipulates the contract must expressly allow the claimant to assert an authorized lien or
assignment if the services provided are covered by the injured person's health insurance
or similar medical benefit plan with which the health care provider has a contract and
invalidates the lien or assignment in the absence of that contract provision;

c) specifies the lien amount exemption and contract provision requirement do not apply if: i)
the services provided are not covered by the injured person's health insurance or similar
medical benefit plan in which the health care provider has a contract; or ii) the insured
person is not covered by any health insurance or benefit plan;

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

SB 1021

Initials PRB Page 1 Commerce

Attachment 3
d) permits a claimant to enforce an authorized lien or assignment for the amount of a patient's
responsibility for outstanding copayments and deductibles that are due under the injured

person's health insurance or benefit plan; and
e) requires any valid and enforceable lien or assignment to be compromised in accordance

with prescribed criteria. (Sec. 1)

3. Requires health care providers to compromise any lien or assignment to provide a settlement
of the claim that is fair and equitable. (Sec. 2)

4. Prescribes factors that a health care provider must consider in determining the extent of the
required compromise. (Sec. 2)

5. Permits the injured person to file an action for a judicial determination of an appropriate
compromise of the lien or assignment based on the prescribed factors if the parties cannot
agree on a compromise. (Sec. 2)

6.. Prohibits a prevailing party in a lien or assignment judgment from recovering the statutorily
authorized attorney fees. (Sec. 2)

7. Asserts health care provider liens and county assignments are enforceable by a cause of
action as prescribed by statute. (Sec. 1)

8. Specifies a health care provider lien or county assignment does not extend to medical
payments coverage. (Sec. 1)

9. Applies the health care provider lien restrictions and compromise requirements to liens that
are filed for services that are provided beginning January 1, 2023. (Sec. 3)

10. Makes technical and clarifying changes. (Sec. 1)

; SB 1021
Initials PRB Page 2 Commerce

—

sa HA OT SFP W HY

Fifty-fifth Legislature
Second Regular Session

HOUSE OF REPRESENTAT

Commerce
§.8. 1021

PROPOSED
IVES AMENDMENTS TO S.B. 1021

(Reference to Senate engrossed bill)

Page 2, line 4, strike “THE FIRST $20,000” insert “NO MORE THAN FIFTY PERCENT NET

RECOVERY”

Line 5, Strike “EXEMPT” insert “PAYABLE”

Strike lines 42 through 44 insert:

"4. THE HEALTH CARE PROVIDER'S CUSTOMARY CHARGES FOR THE SERVICES

RENDERED TO THE PATIENT.”

Amend title to conform

1021C00K
03/21/2022
09:24 AM
H; PRB/ra

DAVID L. COOK

Adopted Vv # of Ve

= Failed Withdraw

Attachment. 1. . _Not Offered ___ Analysts initia

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

ROLL CALL VOTE

COMMITTEE ON

Commerce

BILLNO, 10°2-|

DATE 3, 22 2022.

Cook. Amend ment MOTION: DPA

agrestis

PASS

AYE NAY PRESENT | ABSENT

Carter

Chavez gecond

Cook

Espinoza Ro ues

Kaiser

Liguori

Meza

Wilmeth

YK \ AY

Chaplik, Vice-Chairman

Weninger, Chairman

—
wa
ae
\~

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

S fu |

ATTACHMENT 19

wo C&S SY DPD OO FP WW DH Ff

ROO ON pt
mo FF CO DO DO NN DTD TO Se WH MS LF OD

Commerce

Fifty-fifth Legislature
S.B. 1021

Second Regular Session

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1021

(Reference to Senate engrossed bill)

Page 2, line 6, strike "THE SERVICES PROVIDED ARE COVERED BY"; strike "PERSON'S"
insert "PERSON IS COVERED AS AN INSURED OR DEPENDENT UNDER A”

Line 7, strike "WITH WHICH" insert "AND"
Line 8, after "A" insert "VALID AND BINDING"; after the first “CONTRACT”

insert "WITH THAT INSURER OR PLAN AS AN IN-NETWORK PROVIDER"
Line 9, strike "CLAIMANT" insert "HEALTH CARE PROVIDER"
Line 12, after "33-934" insert "EXCEPT AS ALLOWED UNDER PARAGRAPH 3 OR 4 OF

THIS SUBSECTION"
Line 13, after "IF" insert “ANY OF THE FOLLOWING EXCEPTIONS ARE MET:
Ca)"
Line 15, strike "IN WHICH" insert ".
(b)"; strike "HAS" insert "DOES NOT HAVE"; after "A" insert “VALID

AND BINDING"
Line 16, strike ", OR IF" insert “AS AN IN-NETWORK PROVIDER.
(c)"

Between lines 17 and 18, insert:
(d) THE INJURED PERSON AND THE HEALTH CARE PROVIDER HAVE A WRITTEN

AND SIGNED DOCUMENT STATING THAT THEY ELECT NOT TO USE ANY COVERAGE
POTENTIALLY AVAILABLE UNDER A HEALTH INSURANCE OR SIMILAR MEDICAL BENEFIT
PLAN THAT COVERS THE INJURED AS AN INSURED OR DEPENDENT."

Line 19, strike "CLAIMANT" insert "HEALTH CARE PROVIDER"

Line 20, strike "THE AMOUNT OF A PATIENT'S"

“prone

, Not Offered Analysts Initials
Attachment \l ee

House Amendments to S.B. 1021

Page 2, line 21, strike "RESPONSIBILITY FOR" insert "ALL AMOUNTS FOR WHICH A
PATIENT IS PERSONALLY RESPONSIBLE, INCLUDING’; after "OUTSTANDING" insert

"COINSURANCE AMOUNTS,"
Line 22, after “PERSON'S” insert "OR DEPENDENT'S"™

"EF, THIS SECTION DOES NOT AFFECT THE RIGHTS OF A HEALTH CARE
PROVIDER TO ENFORCE A CONSENSUAL AGREEMENT, WHETHER CALLED A LIEN OR
CONTRACT, AGAINST THE PATIENT WHO HAS SIGNED THE AGREEMENT."

1
2
3
4
5 Between lines 26 and 27, insert:
6
7
8
9 Line 38, after "THE" insert "AVAILABILITY AND"

10 Between lines 39 and 40, insert:
11 "2 WHETHER THE HEALTH CARE PROVIDER OR THE HOSPITAL HAS RECEIVED ANY
12 PAYMENT."

13 Renumber to conform

14 Strike lines 42 through 44

15 Renumber to conform

16 Page 3, line 4, after “AWARD” insert “AND THE PRIORITY POSITION OF THE LIENS”

17 Amend title to conform

STEVE KAISER

1021KAISER2
03/21/2022
08:52 AM

H: PRB/HR/1s
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1021
DATE March 22, 2022 MOTION: _ DPA
PASS AYE NAY PRESENT | ABSENT

Carter ~ ae

Chavez ~~ Le

Cook V~

Espinoza Vv | ~*~

Kaiser \~

Liguori \/

Meza \~

Wilmeth 7

Chaplik, Vice-Chairman we

Weninger, Chairman WA

g O | O

INV

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

om Odonllan Lo

CQMMITTEE wt

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: COM DP 8-0-1-0 | 3 Read 22-6-2-0

SB 1168: vacation rentals; short-term rentals; enforcement
Sponsor: Senator Mesnard, LD 17
Committee on Commerce

Overview
Outlines further regulations of vacation or short-term rentals and restructures the civil penalties

for verified violations.

History
A city, town or county (local government) may not restrict the use of or regulate vacation or short-

term rentals based on their classification, use or occupancy, except to: 1) protect the public's
health and safety; 2) adopt and enforce residential use and zoning ordinances; and 3) limit or
prohibit the use of a rental for specified purposes.

Local governments are statutorily required to, within 30 days after a verified violation, notify the
Department of Revenue (DOR) and the vacation or short-term rental owner of the violation and
whether a civil penalty has been imposed. A verified violation is a finding of guilt or civil
responsibility for violating any state law or local ordinance that has been finally adjudicated
(A.R.S. §§ 9-500.39 and 11-269.17).

Pursuant to A.R.S. § 42-1125.02, DOR may impose civil penalties for an online lodging or a
vacation or short-term rental owner that receives a verified violation. If the local government did
not impose a civil penalty, the owner or operator must pay: 1) $500 for the first verified violation;
2) $1,000 for a second verified violation within a 12-month period; or 3) the greater of $1,500 or
50% of the gross monthly revenues for the month the violation occurs, for a third or subsequent
Violation within a 12-month period. If the local government imposed a civil penalty, the owner or
operator must pay the difference between the statutory amount and the amount of the civil penalty

the local government imposed.

Provisions
1. Caps the civil penalties a local government may impose on a vacation or short-term rental

owner within the same 12-month period as follows:
a) The greater of $500 or one-night's rent, as advertised on an online lodging marketplace,

for the first verified violation;
b) The greater of $1,000 or two-night's rent, as advertised on an online lodging marketplace,

for the second verified violation on the same property; and
¢) The greater of $3,500 or three-night’s rent, as advertised on an online lodging
marketplace, for the third and any subsequent verified violation on the same property.

(Sec. 1, 2)

2, Permits DOR, after proper notice and hearing, to suspend for one year the TPT license of a
vacation or short-term rental owner that has three verified violations within the same 12-month

period. (Sec. 1, 2, 4)

[] Prop 105 (45 votes) (© Prop 108 (40 votes) Emergency (40 votes) Uj Fiscal Note

SB 1168
initials PRB Page 1 Commerce

_. Attachment | |

i
|
Allows a local government to require a vacation or short-term rental owner to:
a) Maintain liability insurance appropriate to cover the rental in the aggregate of at least

$500,000; or
b) Advertise and offer each rental through a hosting platform that provides equal or greater

coverage. (Sec. 1, 2)

Authorizes a local government to impose a civil penalty of up to $1,000 for every 30 days a
vacation or short-term rental owner's failure to provide required contact information. (Sec. 1,
2)

Directs a local government to provide a vacation or short-term rental owner 30 days’ notice
prior to imposing an initial penalty for failure to provide required contact information. (Sec. 1,
2)

Removes language relating to the requirement for notifying DOR and the vacation or short-
term rental owner of verified violations. (Sec. 1, 2)

Restates multiple verified violations that arise out of the same incident are considered one
verified violation when assessing civil penalties or suspending a TPT license. (Sec. 1, 2)

Repeals laws relating to civil penalties imposed by DOR. (Sec. 3)

9. Removes the limitations on the types of ordinances that a local government may adopt and

10.
11.
12.

enforce. (Sec. 1, 2)
Provides a definition for online lodging marketplace. (Sec. 1, 2)
Removes timeshare from the definition of vacation rental or short-term rental. (Sec.1, 2)

Prescribes civil penalties for online lodging operators who fail to comply with certain
advertisement requirements. (Sec. 4)

SB 1168

Initials PRB Page 2 Commerce

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Fifty-fifth

Commerce

Legislature
S.B, 1168

Second Regular Session

Page 1, line
Line 17,
Line 18,
Line 21,
Line 22,
Line 32,
Line 34,

strike
AVAILA

Between ]
SHORT -
LICENS
ISSUAN

MAY ON

OWNER’

TO SEC

STATE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1168

(Reference to Senate engrossed bill)

15, strike "Protecthry"
strike the second comma insert “AND”
strike “and designation of an emergency point of contact,”
after “and” insert “ENFORCE” strike “residertiat-use-and-zoring”
strike “ENFORCE” insert “residential use and zoning”
strike “with” insert “AN EMERGENCY POINT OF”
after "complaints" insert "OR EMERGENCIES"; strike “in person,”;
“or” insert a comma; after “email” insert “OR IN PERSON IF
BLE,”

ines 41 and 42, insert:
“5. A CITY OR TOWN MAY REQUIRE AN OWNER OF A VACATION RENTAL OR

TERM RENTAL TO OBTAIN AND MAINTAIN A LOCAL REGULATORY PERMIT OR
—E PURSUANT TO TITLE 9, CHAPTER 7, ARTICLE 4. AS A CONDITION OF
CE OF A PERMIT OR LICENSE, THE APPLICATION FOR THE PERMIT OR LICENSE
LY REQUIRE AN APPLICANT TO PROVIDE THE FOLLOWING:

(a) NAME, ADDRESS, PHONE NUMBER AND EMAIL ADDRESS FOR THE OWNER OR
S AGENT.

(b) ADDRESS OF THE VACATION RENTAL OR SHORT-TERM RENTAL.

(d) INFORMATION REQUIRED PURSUANT TO PARAGRAPH 4 OF THIS SUBSECTION.
(e) ACKNOWLEDGMENT THAT THE OWNER WILL COMPLY WITH ALL APPLICABLE

LAWS AND ORDINANCES.

fl, ™
Adopted VA # of Ve
Failed Withdrawn.

Attachment | Not Offered Analysts tniti

House Amendments to S.B. 1168

(f) A FEE NOT TO EXCEED THE ACTUAL COST OF ISSUING THE PERMIT OR

1
2 LICENSE OR $250, WHICHEVER IS LESS.
3 6. TO REQUIRE, AFTER OBTAINING A PERMIT OR LICENSE PURSUANT TO
4 PARAGRAPH 5 OF THIS SUBSECTION BUT BEFORE OFFERING A VACATION RENTAL OR
5 SHORT-TERM RENTAL FOR RENT FOR THE FIRST TINE, THE OWNER OF A VACATION
6 RENTAL OR SHORT-TERM RENTAL TO NOTIFY THE OWNERS OF ALL RESIDENTIAL
7 PROPERTY OWNERS ADJACENT TO, DIRECTLY AND DIAGONALLY ACROSS THE STREET
8 FROM, OR IN THE SAME BUILDING AS, THE VACATION RENTAL OR SHORT-TERM RENTAL.
9 A CITY OR TOWN MAY REQUIRE ADDITIONAL NOTIFICATION PURSUANT TO THIS
10 PARAGRAPH IF THE CONTACT INFORMATION PREVIOUSLY PROVIDED CHANGES.”
il Renumber to conform
12 Page 1, line 42, strike “OWNER OF A”
13 Line 44, strike “OR TO ADVERTISE” insert a period
14 Page 2, line 1, strike “AND OFFER EACH VACATION RENTAL OR SHORT-TERM RENTAL
15 THROUGH” insert “ANY ORDINANCE ADOPTED PURSUANT TO THIS PARAGRAPH SHALL
16 ALLOW THE REQUIRED INSURANCE TO BE PROVIDED BY THE OWNER OR”
17 Line 2, after “MARKETPLACE” insert a period, strike the remainder of line
18 Between lines 13 and 14, insert:
19 "Cc, A CITY OR TOWN THAT REQUIRES A LOCAL REGULATORY PERMIT OR
20 LICENSE PURSUANT TO THIS SECTION SHALL ISSUE OR DENY THE PERMIT OR LICENSE
21 WITHIN SEVEN BUSINESS DAYS OF RECEIPT OF THE INFORMATION REQUIRED BY
22 SUBSECTION 8, PARAGRAPH 5 OF THIS SECTION AND OTHERWISE IN ACCORDANCE WITH
23 SECTION 9-835, EXCEPT THAT A CITY OR TOWN MAY DENY ISSUANCE OF A PERMIT OR
24 LICENSE ONLY FOR ANY OF THE FOLLOWING:
25 1. FAILURE TO PROVIDE THE INFORMATION REQUIRED BY SUBSECTION B,
26 PARAGRAPH 5, SUBDIVISIONS (a) THROUGH (f) OF THIS SECTION.
27 2. FAILURE TO PAY THE REQUIRED PERMIT OR LICENSE FEE.
28 3. AT THE TIME OF APPLICATION THE OWNER HAS A SUSPENDED PERMIT OR
29 LICENSE, PURSUANT TO SUBSECTION B, PARAGRAPH 5 OF THIS SECTION, FOR THE
30 SAME VACATION RENTAL OR SHORT-TERM RENTAL.
31 4, THE APPLICANT PROVIDES FALSE INFORMATION. “

32 Reletter to conform
1
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House Amendments to S.B. 1168

Page 2, line 14, strike “IMPOSE A” insert “ADOPT AN ORDINANCE THAT PROVIDES FOR

THE IMPOSITION OF A”
Line 16, strike “OWNER” insert “PROPERTY”
Lines 22 and 25, after “OR” insert “UP TO”
Line 30, strike “MAY” insert “SHALL”

Line 31, after "MONTHS" strike remainder of line
Strike lines 32 through 34, insert "THE USE OF A VALID TRANSACTION PRIVILEGE

TAX LICENSE FOR A VACATION RENTAL OR SHORT-TERM RENTAL IF THE VACATION
RENTAL OR SHORT-TERM RENTAL RECEIVES THREE VERIFIED VIOLATIONS WITHIN THE
SME TWELVE-MONTH PERIOD. THE TRANSACTION PRIVILEGE TAX LICENSE SHALL
REMAIN VALID FOR VACATION RENTALS OR SHORT-TERM RENTALS THAT DO NOT HAVE
THREE VERIFIED VIOLATIONS, ACCOUNTING FOR VACATION RENTAL OR SHORT-TERM
RENTAL OWNERS AND OPERATORS THAT USE A TRANSACTION PRIVILEGE TAX LICENSE
FOR MULTIPLE PROPERTIES."

Line 38, after “PENALTIES” insert “OR SUSPENDING THE OWNER’S REGULATORY PERMIT
OR LICENSE”

Page 3, between lines 15 and 16, insert:
“J. AN OWNER-OCCUPIED SHORT-TERM RENTAL OR VACATION RENTAL IS EXEMPT

FROM THE LOCAL REGULATORY PERMIT OR LICENSE REQUIREMENT IN SUBSECTION 8B,
PARAGRAPH 5 OF THIS SECTION, EXCEPT THE OWNER SHALL COMPLY WITH ALL OTHER
PROVISIONS OF THIS SECTION, INCLUDING OBTAINING A VALID TRANSACTION
PRIVILEGE TAX LICENSE ISSUED PURSUANT TO SECTION 42-5005.”

Reletter to conform

Between lines 18 and 19, insert:
“2. “OWNER-OCCUPIED” MEANS A DWELLING WITH FOUR OR FEWER UNITS, ON

WHICH THE OWNER RESIDES IN ONE OF THE UNITS AS THEIR LEGAL PRIMARY
RESIDENCE AND THE OWNER IS ONSITE DURING THE RENTAL PERIOD. FOR PURPOSES
OF THIS DEFINITION, A PERSON CAN HAVE ONLY ONE “LEGAL PRIMARY RESIDENCE”,
WHICH MEANS THE USUAL PLACE OF RETURN FOR HOUSING OF THE OWNER OF THE
DWELLING FOR AT LEAST 275 DAYS OF THE CALENDAR YEAR AND AS DOCUMENTED BY AT
LEAST TWO OF THE FOLLOWING:

(a) MOTOR VEHICLE REGISTRATION.

-3-
House Amendments to S.B. 1168

(dD) DRIVER'S LICENSE OR ARIZONA STATE IDENTIFICATION CARD.
(c) INCOME TAX RETURN.
(d) PROPERTY TAX BILL.

(e) UTILITY BILL.
3, “ONSITE” MEANS THE OWNER MAINTAINS A PHYSICAL PRESENCE IN THE

DWELLING AND RESIDES IN A HABITABLE DWELLING UNIT OR PORTION THEREOF
THROUGHOUT A GUEST’S STAY.”

Renumber to conform
Page 4, line 5, strike the second comma insert “AND”

Line 6, strike “and designation of an emergency point of contact,”

Line 9, after “and” insert "ENFORCE" strike “residenttat-ose~and-zoning”

Line 10, strike “ENFORCE” insert “residential use and zoning”

Line 20, strike “with” insert “AN EMERGENCY POINT OF”

Line 22, after “complaints” insert "OR EMERGENCIES"; strike “in person,”;
strike “or” insert a comma; after “email” insert “OR IN PERSON IF
AVAILABLE,”

Between Tines 28 and 29, insert:
“5 A COUNTY MAY REQUIRE AN OWNER OF A VACATION RENTAL OR SHORT-TERM

RENTAL TO OBTAIN AND MAINTAIN A LOCAL REGULATORY PERMIT OR LICENSE PURSUANT
TO TITLE 9, CHAPTER 7, ARTICLE 4. AS A CONDITION OF ISSUANCE OF A PERMIT
OR LICENSE, THE APPLICATION FOR THE PERMIT OR LICENSE MAY ONLY REQUIRE AN
APPLICANT TO PROVIDE THE FOLLOWING:

(a) NAME, ADDRESS, PHONE NUMBER AND EMAIL ADDRESS FOR THE OWNER OR

OWNER’S AGENT.
(b) ADDRESS OF THE VACATION RENTAL OR SHORT-TERM RENTAL.
(c) A VALID TRANSACTION PRIVILEGE TAX LICENSE NUMBER ISSUED PURSUANT

TO SECTION 42-5005.
(d) INFORMATION REQUIRED PURSUANT TO PARAGRAPH 4 OF THIS SUBSECTION.

(e) ACKNOWLEDGMENT THAT THE OWNER WILL COMPLY WITH ALL APPLICABLE

STATE LAWS AND ORDINANCES,
(f) A FEE NOT TO EXCEED THE ACTUAL COST OF ISSUING THE PERMIT OR

LICENSE OR $250, WHICHEVER IS LESS.

-4-
wo Om NHN DBD oO & WH

QoQ

12
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21
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23
24
25
26
27
28
29
30
31
32

House Amendments to S.B. 1168

6. TO REQUIRE, AFTER OBTAINING A PERMIT OR LICENSE PURSUANT TO

PARAGRAPH 5 OF THIS SUBSECTION BUT BEFORE OFFERING A VACATION RENTAL OR
SHORT-TERM RENTAL FOR RENT FOR THE FIRST TIME, THE OWNER OF A VACATION
RENTAL OR SHORT-TERM RENTAL TO NOTIFY THE OWNERS OF ALL RESIDENTIAL
PROPERTY OWNERS ADJACENT TO, DIRECTLY AND DIAGONALLY ACROSS THE STREET
FROM, OR IN THE SAME BUILDING AS, THE VACATION RENTAL OR SHORT-TERM RENTAL.
A COUNTY MAY REQUIRE ADDITIONAL NOTIFICATION PURSUANT TO THIS PARAGRAPH IF
THE CONTACT INFORMATION PREVIOUSLY PROVIDED CHANGES.”

Renumber to conform

Page 4, line 29, strike “OWNER OF A”

Line 31, strike “OR TO ADVERTISE” insert a period
Line 32, strike “AND OFFER EACH VACATION RENTAL OR SHORT-TERM RENTAL THROUGH”

insert “ANY ORDINANCE ADOPTED PURSUANT TO THIS PARAGRAPH SHALL ALLOW THE
REQUIRED INSURANCE TO BE PROVIDED BY THE OWNER OR”
Line 33, after “MARKETPLACE” insert a period, strike the remainder of line

After line 44, insert:
"Cc. A COUNTY THAT REQUIRES A LOCAL REGULATORY PERMIT OR LICENSE

PURSUANT TO THIS SECTION SHALL ISSUE OR DENY THE PERMIT OR LICENSE WITHIN
SEVEN BUSINESS DAYS OF RECEIPT OF THE INFORMATION REQUIRED BY SUBSECTION B,
PARAGRAPH 5 OF THIS SECTION AND OTHERWISE IN ACCORDANCE WITH SECTION 9-835,
EXCEPT THAT A COUNTY MAY DENY ISSUANCE OF A PERMIT OR LICENSE ONLY FOR ANY

OF THE FOLLOWING:
1. FAILURE TO PROVIDE THE INFORMATION REQUIRED BY SUBSECTION B,

PARAGRAPH 5, SUBDIVISIONS (a) THROUGH (f) OF THIS SECTION.
2, FAILURE TO PAY THE REQUIRED PERMIT OR LICENSE FEE.
3. AT THE TIME OF APPLICATION THE OWNER HAS A SUSPENDED PERMIT OR
LICENSE, PURSUANT TO SUBSECTION B, PARAGRAPH 5 OF THIS SECTION, FOR THE
SAME VACATION RENTAL OR SHORT-TERM RENTAL.
4. THE APPLICANT PROVIDES FALSE INFORMATION. ”
Reletter to conform
Page 5, line 1, strike "CITY OR TOWN" insert "COUNTY"; strike “IMPOSE A” insert
“ADOPT AN ORDINANCE THAT PROVIDES FOR THE IMPOSITION OF A”

-5-
oc ON DW OH B® WHY &

Se eee
Nm Fe ©

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

House Amendments to S.B. 1168

Line 3, strike “OWNER” insert “PROPERTY”
Lines 9 and 12, after “OR” insert “UP TO”
Line 17, strike “MAY” insert “SHALL”

Line 18, after "MONTHS" strike remainder of line
Strike lines 19 through 21, insert "THE USE OF A VALID TRANSACTION PRIVILEGE

TAX LICENSE FOR A VACATION RENTAL OR SHORT-TERM RENTAL IF THE VACATION
RENTAL OR SHORT-TERM RENTAL RECEIVES THREE VERIFIED VIOLATIONS WITHIN THE
(HE) TWELVE-MONTH PERIOD. THE TRANSACTION PRIVILEGE TAX LICENSE SHALL
REMAIN VALID FOR VACATION RENTALS OR SHORT-TERM RENTALS THAT DO NOT HAVE
THREE VERIFIED VIOLATIONS, ACCOUNTING FOR VACATION RENTAL OR SHORT-TERM
RENTAL OWNERS AND OPERATORS THAT USE A TRANSACTION PRIVILEGE TAX LICENSE
FOR MULTIPLE PROPERTIES.”

Line 25, after “PENALTIES” insert “OR SUSPENDING THE OWNER’S REGULATORY PERMIT
OR LICENSE”

Page 6, between lines 4 and 5, insert:
“J, AN OWNER-OCCUPIED SHORT-TERM RENTAL OR VACATION RENTAL IS EXEMPT

FROM THE LOCAL REGULATORY PERMIT OR LICENSE REQUIREMENT IN SUBSECTION B,
PARAGRAPH 5 OF THIS SECTION, EXCEPT THE OWNER SHALL COMPLY WITH ALL OTHER
PROVISIONS OF THIS SECTION, INCLUDING OBTAINING A VALID TRANSACTION
PRIVILEGE TAX LICENSE ISSUED PURSUANT TO SECTION 42-5005.”

Reletter to conform

Between lines 7 and 8, insert:
“2 "OWNER-OCCUPIED" MEANS A DWELLING WITH FOUR OR FEWER UNITS, ON

(a) MOTOR VEHICLE REGISTRATION.

(b) DRIVER'S LICENSE OR ARIZONA STATE IDENTIFICATION CARD.

(d) PROPERTY TAX BILL.

(e) UTILITY BILL.
3. “ONSITE” MEANS THE OWNER MAINTAINS A PHYSICAL PRESENCE IN THE

DWELLING AND RESIDES IN A HABITABLE OWELLING UNIT OR PORTION THEREOF
5 THROUGHOUT A GUEST’S STAY."

6 Renumber to conform

me WW MR

7 Amend title to conform

STEVE KAISER

LI68KAISER2
03/21/2022
10:05 AM
H: PRB/Ts

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. $B 1168

DATE March 22, 2022 MOTION: DP A

PASS AYE NAY PRESENT | ABSENT
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Weninger, Chairman \/

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APPROVED: COMMITTEE SECRETAR}

abner
JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT lb
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: APPROP DPA/SE 7-2-1-0 | 3° Read 28-0-2-0

SB 1179: JLBC; reporting
S/E: video service; boundary change; definition
Sponsor: Senator Gowan, LD 14
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1179

Overview
Modifies the definition of video service as it relates to city, town or county (local government)

licensing and regulation of video service providers. Adds requirements for boundary change
notifications.

History
Statute establishes uniform licensing and regulation of video service providers and use of video

service and grants local governments the exclusive authority to issue a uniform video service
license to a person to provide video service and to construct and operate a video service network
in any service area within Its boundaries (Title 9, Chapter 13, A.R.S.; Title 11, Chapter 14, A.R.S.).

A video service provider is a person that: 1) provides or offers to provide video service over a
video service network to subscribers in Arizona; 2) is an incumbent cable operator that elected to
terminate its local license and a multichannel video programming distributor; and 3) is not a

holdover cable operator.

Video service is the provision of multichannel video programming generally considered
comparable to video programming delivered by a television broadcast station, video service or
other digital television service, whether provided as part of a tier, on demand or ona per-channel
basis, without regard to the technology used to deliver the video service, including internet
protocol technology or any successor technology, including cable service.

Video service does not include: 1) video programming provided solely as part of, and through, a
service that enables users to access content, information, e-mail, messaging or other services
that are offered via the public internet; 2) direct broadcast satellite service; and 3) wireless
multichannel video programming that is provided by a commercial mobile service provider.

Provisions
1. Clarifies video service means the provision by a video service provider of multichannel video

programming generally considered comparable to video programming. (Sec. 1, 3)

2. Specifies video service does not include digital audiovisual works delivered over the internet,
including streaming content, rather than video programming that enables users to access
content or other services offered via the internet. (Sec. 1, 3)

3. Clarifies direct broadcast satellite service that is provided by a licensee for a Ku-band satellite
system or any distributor who controls a minimum number of channels using a Ku-band fixed

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

SB 1179

Initials PRB Page 1 Commerce

17
Attachment

service satellite system for the provision of video programming directly to a home is not
included as video service. (Sec. 1, 3)

4, Requires a local government's boundary change notifications to be sent by certified mail,
email or personal delivery. (Sec. 2, 4)

5. Prevents a video service provider from being required to pay certain licensing fees for at least
30 days after the boundary change notification is provided to the video service provider. (Sec.
2, 4)

6. Specifies the boundary change notification must be provided to the contract person and
address specified by the video service provider. (Sec. 2, 4)

7. Directs the video service provider to provide a written notice to the local government of any
change in the designated contract person or address. (Sec. 2, 4)

SB 1179
initials PRB Page 2 Commerce

Commerce

Fifty-fifth Legislature
§.B. 1179

Second Regular Session

Co ON HD MO Bm WH Hw

Mm PRO PO DRO re Be ee gs
on EF oO FC oON A OekReONRnD EU

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1179

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 9-1401, Arizona Revised Statutes, is amended to

read:

9-1401. Definitions

In this chapter, unless the context otherwise requires:

1. “Affiliate” means a person that directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common
control with a video service provider.

2. “Agreement” means any agreement or contract.

3. “Boundaries of a local government" or "boundaries" means all of
the area within the corporate limits of the city or town.

4. “Cable operator" has the same meaning prescribed in 47 United

States Code section 522,
5. “Cable service’ has the same meaning prescribed in 47 United

States Code section 522,
6. "Cable system" has the same meaning prescribed in 47 United

States Code section 522,
7. "Commercial mobile service provider" means a person that provides

commercial mobile service as defined in 47 United States Code section

332(d) or commercial mobile radio service as described in 47 Code of

Federal Regulations section 20.3.
8. "Day" means a calendar day, except a Saturday or Sunday or a

holiday prescribed in section 1-301.

Adopted J # of Verba

Faited Withdrawn.

Attachment 18 _ Not Offered, Analysts Initials
Oo Oo NH DD TO Be WCW fT

CO WOW WD DM DR NR MR PM PM KR MR MH MH Fe
ie
Re S GCS YTS FPESON SP SEOOAURSEESEREKS

House Amendments to S.B. 1179

9, "Gross revenue":
(a) Means all cash, credits, property of any kind or nature or other

consideration that is received directly or indirectly by a video service
provider, its affiliates, or any person, firm or corporation in which the
video service provider has a financial interest or that has a financial
interest in the video service provider and that is derived from the video
service provider's operation of its video service network to provide video
service in the service area.

(b) Includes all revenue from charges for video service to
subscribers and all charges for installation, removal, connection or
reinstatement of equipment necessary for a subscriber to receive video
service and any other receipts from subscribers derived from the video
service provider's operation of the video service network to provide video
service, including receipts from forfeited deposits, sale or rental of
equipment to provide video service, late charges, interest and sale of
program guides.

(i) Any revenue not received, even if billed, such as bad debt net

of any recoveries of bad debt or any refunds, credits, allowances or
discounts to subscribers to the extent that the refund, rebate, credit,
allowance or discount is attributed to video service,

(ii) Revenue from commercial advertising on the video service
network, the use or lease of studio facilities of the video service
network, internet access service, the use or lease of its facilities
located in the highways, the use or lease of leased access channels or
bandwidth, the use or lease of towers, the production of video programming
by the video service provider, the sale, exchange, use or cablecast of any
programming by the video service provider in the service area, sales to the
video service provider's subscribers by programmers of home shopping
services, reimbursements paid by programmers for launch fees or marketing
expenses, license fees, taxes or other fees or charges that the video

service provider collects and pays to any governmental authority, any

-2-
Co MO ws ODO OO FSP WY MH

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ee)

House Amendments to $.B. 1179

increase in the value of any stock, security or asset, or any dividends or

other distributions made from any stock or securities.
10. "Highway" means all roads, streets and alleys and other

dedicated public rights-of-way that are operated and maintained by a jocal

government.
il. “Holder™ means a video service provider that has been issued a

uniform video service license pursuant to this chapter.

12. “Holdover cable operator” means an incumbent cable operator that
elects under sections 9-1412 and 9-1413 to continue to operate within its
service area pursuant to its local license.

13. “Incumbent cable operator” means a cable operator or other video
service provider that on December 31, 2019 is providing video service in
this state pursuant to a local license.

14. “Information service" has the same meaning prescribed in 47
United States Code section 153,

15. “Interactive computer service" has the same meaning prescribed
in 47 United States Code section 230(f).

16. "License" means a franchise as defined in 47 United States Code
section 522.

17. “License fee" means a license fee imposed by a local government
on a video service provider for using the highways to provide and for the
privilege of providing video service.

18. “Local government" means any city, including a charter city, or

town,
19. “Local law" means any charter, code, ordinance, resolution,

regulation or other law of a local government.

20. “Local license" means any license, agreement, permit or similar

authorization that meets all of the following:
(a) Allows a person to construct or operate a video service network

within the boundaries of a local government.
Oo On Do Oo Se WO MH

mo Mh} MO MH MH FH MH MRO MDS HF HF ewe

House Amendments to S.B. 1179

(b) Is issued, granted, approved, extended or renewed by the iocal
government before January 1, 2020 pursuant to the authority of any federai,
state or local law in effect at the time of the issuance, grant, approval,
extension or renewal.

(c) Is effective under federal, state or local Jaw on December 31,
2019 for the person to continue to construct or operate a video service
network within the boundaries of a local government. |

21. “Multichannel video programming distributor" has the same
meaning prescribed in 47 United States Code section 522,

22. “Service area” means that part of the boundaries of a local
government within which a video service provider is authorized to provide
video service pursuant to a uniform video service license or a_ local
license.

23. “Subscriber":

(a) Means any person in this state that purchases video
service. Subscrrber

(b) Does not include any person that purchases video service for
resale and that, on resale, is required to pay a license fee pursuant to
this chapter or the terms of a local license.

24, “Telecommunications":
(a) Means the transmission, between or among points specified by the

user, of information of the user's choosing, without change in the form or

content of the information sent and received, regardless of the facilities,

equipment or technology used.
(b) Does not include commercial mobile radio service, pay phone

service, interstate service or cable service.
25, "“Telecommunications provider" means a person that is required to

obtain from the corporation commission a certificate of public convenience

and necessity to provide telecommunications service.
Oo Oo NY DBD oO Se W MH HF

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—

House Amendments to $.B. 1179

26. “Telecommunications service” means the offering of

telecommunications for a fee directly to the public, or to such users as to
be effectively available directly to the public, regardless of the

equipment, facilities or technology used.
27. “Uniform video service license” means a license that is issued

by a local government in the form of a uniform video service license
agreement as adopted pursuant to section 9-141].

28. "Video service":
(a) Means the provision BY A VIDEO SERVICE PROVIDER of multichannel

video programming generally considered comparable to video programming
delivered by a television broadcast station, video service or other digital
television service, whether provided as part of a tier, on demand or on a
per-channel basis, without regard to the technology used to deliver the
video service, including internet protocol technology or any successor
technology.

(b) Includes cable service.

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(i) DIGITAL AUDIOVISUAL WORKS DELIVERED OVER THE INTERNET, INCLUDING
STREAMING CONTENT.

(ii) Direct broadcast satellite service PROVIDED BY A PROVIDER OF
DIRECT BROADCAST SATELLITE SERVICE AS DEFINED IN 47 UNITED STATES CODE
SECTION 335(bD)(5),

(iii) Wireless multichannel video programming that is provided by a
commercial mobile service provider.

29, "Video service network”:

(a) Means a wireline network, or any component of a wireline
network, that is located in this state, constructed in whole or in part in,

on, under or over any highway and used to provide video service.
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House Amendments to S.B. 1179

(b) Includes a cable system.

30. "Video service provider”:

(a) Means any person that provides or offers to provide video
service over a video service network to subscribers in this state.

(b) Includes an incumbent cable operator that elected pursuant to
sections 9-1412 and 9-1413 to terminate its local license and a
multichannel video programming distributor.

Sec, 2. Section 9-1418, Arizona Revised Statutes, is amended to

read:
9-1418. Boundary change: license fees; exemption: notice

A. Each local government whose boundaries change shall notify in a
timely manner each video service provider that operates in the
boundaries. NOTIFICATION SHALL BE MADE BY CERTIFIED MAIL, EMAIL OR
PERSONAL DELIVERY.

B. A VIDEO SERVICE PROVIDER MAY NOT BE SUBJECT TO OR REQUIRED TO PAY
LICENSE FEES ON GROSS REVENUES AS PRESCRIBED IN SECTION 9-1443 WITHIN THE
AREA ENCOMPASSED BY A BOUNDARY CHANGE FOR AT LEAST THIRTY DAYS AFTER THE
NOTIFICATION OF A BOUNDARY CHANGE, REQUIRED BY SUBSECTION A OF THIS
SECTION, IS PROVIDED TO THE VIDEO SERVICE PROVIDER,

C. THE NOTICE REQUIRED BY SUBSECTION A OF THIS SECTION SHALL BE
PROVIDED TO THE CONTACT PERSON AND ADDRESS SPECIFIED BY THE VIDEO SERVICE
PROVIDER. THE VIDEO SERVICE PROVIDER SHALL INFORM THE LOCAL GOVERNMENT OF
ANY CHANGE IN THE DESIGNATED CONTACT PERSON OR ADDRESS BY PROVIDING WRITTEN
NOTICE TO THE GOVERNING BODY OF THE LOCAL GOVERNMENT.

Sec, 3. Section 11-1901, Arizona Revised Statutes, is amended to
read:

11-1901. Definitions

A> In this chapter, unless the context otherwise requires:

1. "Affiliate" means a person that directly or indirectly, through

one or more intermediaries, controls, is controlled by or is under common

control with a video service provider.

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House Amendments to $.B, 1179

2. “Agreement” means any agreement or contract.

3. “Boundaries of a county" or "boundaries" means all of the area of
the county that is not within the corporate limits of any city or town,
including unincorporated territory that is surrounded on all sides by 4
combination of one or more cities, towns or Indian reservations.

4. "Cable operator" has the same meaning prescribed in 47 United

States Code section 522.
5. "Cable service” has the same meaning prescribed in 47 United

States Code section 522.
6. "Cable system” has the same meaning prescribed in 47 United

States Code section 522.

7. “Commercial mobile service provider” means a person that provides
commercial mobile service as defined in 47 United States Code section
332(d) or commercial mobile radio service as described in 47 Code of
Federal Regulations section 20.3.

8. "Day" means a calendar day, except a Saturday or Sunday or a
holiday prescribed in section 1-301.

9. "Gross revenue”:
(a) Means all cash, credits, property of any kind or nature or other

service, including receipts from forfeited deposits, sale or rental of
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House Amendments to S.B. 1179

equipment to provide video service, late charges, interest and sale of

program guides.
(c) Does not include:
(i) Any revenue not received, even if billed, such as bad debt net

of any recoveries of bad debt or any refunds, rebates, credits, allowances
or discounts to subscribers to the extent that the refund, rebate, credit,
allowance or discount is attributed to video service.

(ii) Revenue from commercial advertising on the video service
network, the use or lease of studio facilities of the video service
network, internet access service, the use or lease of its facilities
located in the highways, the use or lease of leased access channeis or
bandwidth, the use or lease of towers, the production of video programming
by the video service provider, the sale, exchange, use or cablecast of any
programming by the video service provider in the service area, sales to the
video service provider's subscribers by programmers of home shopping
services, reimbursements paid by programmers for launch fees or marketing
expenses, license fees, taxes or other fees or charges that the video
service provider collects and pays to any governmental authority, any
increase in the value of any stock, security or asset or any dividends or
other distributions made from any stock or securities.

10. "Highway" means all roads, streets and alleys and other
dedicated public rights-of-way that are operated and maintained by the
county.

11. “Holder” means a video service provider that has been issued a
uniform video service license pursuant to this chapter.

12. “Holdover cable operator" means an incumbent cable operator that
elects under sections 11-1912 and 11-1913 to continue to operate within its
service area pursuant to its local license.

13. “Incumbent cable operator" means a cable operator or other video
service provider that on December 31, 2019 is providing video service in

this state pursuant to a local license.
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House Amendments to S.B. 1179

14. “Information service” has the same meaning prescribed in 47

United States Code section 153.
15. “Interactive computer service" has the same meaning prescribed

in 47 United States Code section 230(f).
16. "License" means a franchise as defined in 47 United States Code

section 522.

17. “License fee" means a license fee imposed by a county on a video
service provider for using the highways to provide and for the privilege of
providing video service.

18. “Local law" means any code, ordinance, resolution, regulation or

other law of a county.
19. “Local license" means any license, agreement, permit or similar

authorization that meets all of the following:

(a) Allows a person to construct or operate a video service network
within the boundaries of a county.

(b) Is issued, granted, approved, extended or renewed by the county
before January 1, 2020 pursuant to the authority of any federal, state or
local law in effect at the time of the issuance, grant, approval, extension
or renewal.

(c) Is effective under federal, state or local law on December 31,
2019 for the person to continue to construct or operate a video service
network within the boundaries of a county,

20. “Multichannel video programming distributor" has the same
meaning prescribed in 47 United States Code section 522,

21. “Service area” means that part of the boundaries of a county
within which a video service provider is authorized to provide video
service pursuant to a uniform video service license or a Jocal license.

22, "Subscriber":

(a) Means any person in this. state that purchases video

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House Amendments to S.B. 1179

(b) Does not include any person that purchases video service for
resale and that, on resale, is required to pay a license fee pursuant to

this chapter or the terms of a local license.

23. "“Telecommunications”:
(a) Means the transmission, between or among points specified by the

user, of information of the user's choosing, without change in the form or
content of the information sent and received, regardless of the facilities,

equipment or technology used.
(b) Does not include commercial mobile radio service, pay phone

service, interstate service or cable service.

24. “Telecommunications provider" means a person that is required to
obtain from the corporation commission a certificate of public convenience
and necessity to provide telecommunications service.

25. "Telecommunications service" means the offering of
telecommunications for a fee directly to the public, or to such users as to
be effectively available directly to the public, regardless of the

equipment, facilities or technology used.
26. "Uniform video service license" means a license that ts issued

by a county in the form of A uniform video service license agreement as

adopted pursuant to section 11-1911.

27, “Video service":
(a) Means the provision BY A VIDEO SERVICE PROVIDER of multichannel

video programming ‘generally considered comparable to video programming
delivered by a television broadcast station, video service or other digital
television service, whether provided as part of a tier, on demand or on a
per-channel basis, without regard to the technology used to deliver the
video service, including internet protocol technology or any successor
technology.

(b) Includes cable service.

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House Amendments to $.B. 1179

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(1) DIGITAL AUDIOVISUAL WORKS DELIVERED OVER THE INTERNET, INCLUDING
STREAMING CONTENT.

(ii) Direct broadcast satellite service PROVIDED BY A PROVIDER OF
DIRECT BROADCAST SATELLITE SERVICE AS DEFINED IN 47 UNITED STATES CODE
SECTION 335(b)(5).

(iii) Wireless multichannel video programming that is provided by a
commercial mobile service provider.

28. “Video service network”:

(a) Means a wireline network, or any component of a wireline
network, that is located in this state, constructed in whole or in part in,
on, under or over any highway and used to provide video service.

(b) Includes a cable system.

29. “Video service provider”:

(a) Means any person that provides or offers to provide video
service over a video service network to subscribers in this state.

(b) Includes an incumbent cable operator that elected pursuant to
sections 11-1912 and 11-1913 to terminate its local license and a
multichannel video programming distributor.

Sec. 4. Section 11-1918, Arizona Revised Statutes, is amended to

read:
11-1918. Boundary change; license fees: exemption; notice

A. Each county whose boundaries change shall notify in a timely
manner each video service provider that operates in the boundaries.
NOTIFICATION SHALL BE MADE BY CERTIFIED MAIL, EMAIL OR PERSONAL DELIVERY.

B, A VIDEO SERVICE PROVIDER MAY NOT BE SUBJECT TO OR REQUIRED TO PAY
LICENSE FEES ON GROSS REVENUES AS PRESCRIBED IN SECTION 11-1943 WITHIN THE
AREA ENCOMPASSED BY A BOUNDARY CHANGE FOR AT LEAST THIRTY DAYS AFTER THE

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House Amendments to S.B. 1179

NOTIFICATION OF A BOUNDARY CHANGE, REQUIRED BY SUBSECTION A OF THIS
SECTION, IS PROVIDED TO THE VIDEO SERVICE PROVIDER.

C. THE NOTICE REQUIRED BY SUBSECTION A OF THIS SECTION SHALL BE
PROVIDED TO THE CONTACT PERSON AND ADDRESS SPECIFIED BY THE VIDEO SERVICE
PROVIDER. THE VIDEO SERVICE PROVIDER SHALL INFORM THE COUNTY OF ANY CHANGE
IN THE DESIGNATED CONTACT PERSON OR ADDRESS BY PROVIDING WRITTEN NOTICE TO
THE COUNTY BOARD OF SUPERVISORS.“

Amend title to conform

JEFF WENINGER

1179WENINGER
03/18/2022
11:34 AM

C: LAT

-12-

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

ROLL CALL VOTE

COMMITTEE ON

Commerce BILLNO. _ $B 1179

DATE March 22, 2022

MOTION: Dppy IE

PASS

YE NAY | PRESENT | ABSENT

Carter

Chavez

Cook

Espinoza

Kaiser

Liguori

Meza

Wilmeth

Chaplik, Vice-Chairman

Weninger, Chairman

APPROVED:

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

S)RIKNIG SKS

6) 6) |

hoch cr Ouro!

COMMITTEE SECRETARY

ATTACHMENT. } 9

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature
Second Regular Session
Senate: FIN DPA 9-0-1-0 | 3 Read 26-0-4-0

$B 1204: mortgage brokers; bankers; qualifications
Sponsor: Senator Pace, LD 25
Committee on Commerce

Overview
Permits a responsible individual of mortgage brokers and bankers to reside out-of-state.

History
All mortgage broker, commercial mortgage broker and commercial mortgage banker licenses

must designate a natural person as a responsible individual for the license. If the licensee is
natural person, that person is the responsible individual. If a licensee is a business entity, one

member or employee of that entity must be designated in the license as the individual responsible

for the entity (A.R.S. §§ 6-903; 6-978).

A mortgage broker license may not be given to a person, other than a natural person, who is not
registered to do business in Arizona. If a natural person is not a resident of Arizona, an employee
of that licensee must be designated in the license as the individual responsible for the licensee.
The responsible individual must: 1) be a resident of Arizona; 2) be in active management of the
licensee's activities; and 3) meet statutory broker license qualifications (A.R.S. § 6-903).

Likewise for a commercial mortgage banker, a license may not be given to a person, other than
a natural person, who is not registered to do business in Arizona; and a natural person who is not
resident in Arizona must designate a responsible individual. This responsible individual must: 1)
be a resident of Arizona; 2) be in active management of the licensee's activities; and 3) have at
least three years' experience in commercial mortgage banking (A.R.S. § 6-976).

Provisions

Responsible Individual

1. Permits a mortgage broker, commercial mortgage broker and a commercial mortgage banker
who is a natural person, and not resident in Arizona, to designate as a responsible individual:
a) an employee of an affiliated entity of the licensee; or
b) an employee of the parent company of the licensee. (Sec. 2, 3)

2. Stipulates that the responsible individual for a mortgage broker or commercial mortgage
broker must be resident in Arizona unless the Director of the Department of Insurance and
Financial Institutions (DIF!) grants a Certificate of Exemption. (Sec. 2)

3. Strikes the requirement that the responsible individual for a commercial mortgage banker must
be a resident of Arizona. (Sec. 3)
Certificate of Exemption
4. Permits a parent company to apply for a Certificate of Exemption, on behalf of a mortgage
broker or commercial mortgage broker (entity), to allow a responsible individual to reside
outside of Arizona. (Sec. 1)

SB 1204
Initials NM/PRB Page 1 Commerce

Attachment

5. Requires a responsible individual residing outside of Arizona to:

a) be a natural person;
b) receive notification from the parent company that the parent company was granted a

certificate of exemption by the Director of DIFI; and
c) meet all the regular requirements to be a responsible individual. (Sec. 1)
6. Directs the parent company to apply on behalf of the entity and submit an attestation that the

parent company:

a) maintains a physical presence in Arizona;

b) does not have any disciplinary actions by DIFI; and

c) has a class of securities registered with the United States Securities and Exchange

Commission. (Sec. 1)

7. Requires the applying parent company to pay all applicable fees prescribed by DIFI in rule.
(Sec. 71)

8. Specifies that a Certificate of Exemption is continuous during the license's period. (Sec. 1)

9. Allows the Director of DIFI to revoke the Certificate of Exemption if: a) the interests of the
consumer are not met; or b) the responsible individual does not meet statutory requirements.

(Sec. 1)

10. Instructs the Director of DIFI to issue an order outlining the reasons for a denial or revocation
of a Certificate of Exemption. (Sec. 1)

41, Permits the Director of DIFI to prescribe rules to implement the Certificate of Exemption. (Sec.
1)

Miscellaneous
12. Makes technical changes. (Sec. 2, 3)

SB 1204
Initials NV/PRB Page 2 Commerce

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Fifty-fifth Legislature
Second Regular Session

Commerce
S.B. 1204

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1204

(Reference to Senate engrossed bill)

Page 1, between lines 1 and 2, insert:

"Section 1. Section 6-901, Arizona Revised Statutes, is amended to

read:

6-901. Definitions

In this article, unless the context otherwise requires:

1. “Affiliate” means an entity which directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common
control with the entity specified.

2. “Commercial mortgage broker” means a person who for compensation
or in the expectation of compensation either directly or indirectly makes,
negotiates or offers to make or negotiate a commercial mortgage loan.

3. “Commercial mortgage loan" means a loan that is directly or
indirectly secured by a mortgage or deed of trust or any lien interest on
commercial property and that is created with the consent of the owner of
the commercial property.

4. “Commercial property" means real property that is not a
residential dwelling of one to four units.

5, "Compensation" means anything of value or any benefit, including
points, commissions, bonuses, referral fees, Joan origination fees and
other similar fees but excluding periodic interest resulting from the
application of the note rate of interest to the outstanding principal
balance remaining unpaid from time to time.

6. "Continuing education unit” means a fifty minute period of time
in a continuing education course that relates to the mortgage industry or

to mortgage transactions, including courses taken to maintain recognized

industry designations. ee
Adopted a # of Ver

Failed Withdrawn

Attachment ZI Not Offered: Analysts fnitiais

House Amendments to S.B. 1204

7. “GENERALLY ACCEPTED ACCOUNTING PRINCIPLES” MEANS UNITED STATES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ISSUED BY THE FINANCIAL ACCOUNTING

—

3 STANDARDS BOARD OR THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUED
4 BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD.

5 7-8. "Investor" means a person who Tends or invests money in
6 mortgage loans.

7 879 "License" means a license issued under this article.

8 $-10. "Licensee" means a person licensed under this article.

9 0-11. “Loan originator” has the same meaning prescribed in section
10 6-991.

11 +t-12 "Mortgage broker" means a person who is not exempt under
12 section 6-902 and who for compensation or in the expectation of
13 compensation either directly or indirectly makes, negotiates or offers to
14 make or negotiate a mortgage loan.

15 42-13. "Mortgage joan" means a loan secured by a mortgage or deed of
16 trust or any lien interest on real estate located in this state created
17 with the consent of the owner of the real estate.

18 +3714, "Mortgage loan closing" means the day by which all documents
19 relating to the mortgage loan have been executed and recorded and all
20 montes have been accounted for under the terms of the escrow instructions.
21 +715. "Residential mortgage loan" means a mortgage loan that has
22 security in the form of a residential dwelling of one to four units.”

23 Renumber to conform

24 Page 3, line 16, after “person" insert "OR AN EMPLOYEE OF AN AFFILIATED ENTITY OR
25 THE PARENT COMPANY OF THE LICENSEE"

26 Line 21, after "licensee" strike remainder of line
27 Line 22, strike "THE LICENSEE”
28 Page 6, between lines 30 and 31, insert:

29 "Sec, 4. Section 6-941, Arizona Revised Statutes, is amended to
30 read:

31 6-941. Definitions

32 In this article, unless the context otherwise requires:

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House Amendments to $.B, 1204

1. “Affiliate” means an entity which directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common
control with the entity specified.

2. "Compensation" means anything of value or any benefit including
points, commissions, bonuses, referral fees, loan origination fees and
other similar fees but excluding periodic interest resulting from the
application of the note rate of interest to the outstanding principal
balance remaining unpaid from time to time.

3. “GENERALLY ACCEPTED ACCOUNTING PRINCIPLES” MEANS UNITED STATES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ISSUED BY THE FINANCIAL ACCOUNTING
STANDARDS BOARD OR THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUED
BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD,

3-4. “License” means a license issued under this article.

#-5, “Licensee” means a person licensed under this article.

S76. "Mortgage banker" means a person who is not exempt under
section 6-942 and who for compensation or in the expectation of
compensation either directly or indirectly makes, negotiates or offers to
make or negotiate a mortgage banking loan or a mortgage loan.

677. "Mortgage banking Joan” means a loan which is funded
exclusively from the mortgage banker's own resources, which is directly or
indirectly secured by a mortgage or deed of trust or any lien interest on
real estate located in this state and which is created with the consent of
the owner of the real property. For the purposes of this paragraph, "own
resources" means any of the following:

(a) Cash, corporate capital, warehouse credit lines at commercial
banks, savings banks or savings and loan associations or other sources that
are liability items on the mortgage banker's financial statements for which
its assets are pledged.

(b) Correspondent contracts between the mortgage banker and a bank,
savings bank, trust company, savings and loan association, credit union,

profit sharing or pension trust, consumer lender or insurance company.
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House Amendments to S.B. 1204

(c) The mortgage banker's affiliates’ cash, corporate capital,
warehouse credit lines at commercial banks or other sources that are

liability items on the affiliates’ financial statements for which the
affiliates’ assets are pledged.

#-8, "Mortgage banking Joan closing" means the day by which all
documents relating to the mortgage banking loan or mortgage loan have been
executed and recorded and al] monies have been accounted for.

8-9. “Mortgage loan“ means any loan, other than a mortgage banking
loan, secured by a mortgage or deed of trust or any lien interest on real
estate located in this state and created with the consent of the owner of

the real estate."
Sec. 5. Section 6-971, Arizona Revised Statutes, is amended to read:

6-971. Definitions

In this article, unless the context otherwise requires:

1. “Affiliate" means an entity that directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common
control with the specified entity.

2. “Commercial mortgage banker" means a person who engages in the
following:

(a) Originating commercial mortgage loans.

(b) Servicing commercial mortgage loans.

3. "Commercial mortgage loan" means a Joan that is directly or
indirectly secured by a mortgage or deed of trust or any lien interest on
commercial property and created with the consent of the owner of the
commercial property.

4. “Commercial mortgage loan closing’ means the day by which all
documents relating to the commercial mortgage loan have been executed and

recorded and all monies have been accounted for under the terms of the

escrow instructions.
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House Amendments to S.B. 1204

5. “Commercial property” means real estate that is located in this
state and that is not used for a one to four family residence.

6. "Compensation" means anything of value or any benefit including
points, commissions, bonuses, referral fees, loan origination fees and
other similar fees but excluding periodic interest resulting from the
application of the note rate of interest to the outstanding principal
balance remaining unpaid from time to time.

7. “GENERALLY ACCEPTED ACCOUNTING PRINCIPLES” MEANS UNITED STATES
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ISSUED BY THE FINANCIAL ACCOUNTING
STANDARDS BOARD OR THE INTERNATIONAL FINANCIAL REPORTING STANDARDS ISSUED
BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD.

7-8. "Institutional investor” means a person who in the regular
course of business makes commercial mortgage loans of more than two hundred
fifty thousand dollars that are funded exclusively from the institutional
investor’s own resources.

8-9, "Investor" means a person who directly or indirectly provides
monies to a commercial mortgage banker that are, or are intended to be,
used to make a loan, and any person who purchases a loan, or any interest
in a loan, from a commercial mortgage banker or in a transaction that has
been directly or indirectly arranged or negotiated by a commercial mortgage
banker.

$-10, "License" means a license issued under this article.

40-11. “Licensee” means a person who is licensed under this article.
+t-12, “Own resources" means any of the following:

(a) Cash, corporate capital, warehouse credit lines at commercial
banks, savings banks or savings and loan associations or other sources that
are liability items on the person's financial statements.

(b) Correspondent contracts between the commercial mortgage banker
and an institutional investor, bank, savings bank, trust company, savings

and loan association, credit union, profit sharing or pension trust,

consumer lender or insurance company.
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House Amendments to $.B. 1204

(c) The person's affiliates’ cash, corporate capital, warehouse
credit lines at commercial banks or other sources that are liability items
on the affiliates’ financial statements for which the affiliates’ assets
are pledged.

42-13, "Servicing commercial mortgage loans” means collecting
payments at a location in this state on commercial mortgage loans,
including:

(a) Principal.

(b) Interest.
(c) Trust items such as hazard insurance premiums, taxes and various

reserves on an obligation under the terms of the obligation.

(d) Operational procedures covering accounting, bookkeeping,
insurance, tax records, loan payment follow-up, delinquency loan follow-up,
loan analysis and property valuation."

Renumber to conform
Page 6, line 37, after “person" insert "OR AN EMPLOYEE OF AN AFFILIATED ENTITY OR

THE PARENT COMPANY OF THE LICENSEE"
Line 40, after “licensee” strike remainder of line
Line 41, strike "THE LICENSEE”

Amend title to conform

JEFF WENINGER

1204WENINGER2
03/16/2022
04:35 PM

H: PRB/ra
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1204

DATE March 22, 2022 MOTION: DPA
PASS AYE NAY PRESENT | ABSENT

Carter ~

Chavez ~

Cook VA

Espinoza we

Kaiser ~~

Liguori WA

Meza ~~

Wilmeth wae

Chaplik, Vice-Chairman %

Weninger, Chairman \~

4 5 |
uuu ‘Ou, leno f

APPROVED: COMMITTEE SECRETARY

Vane

JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

ATTACHMENT. 272.
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature

Second Regular Session

Senate: NREW DP 7-2-0-0 | 3 Read 19-8-3-0

SB 1396: hydrogen study committee
Sponsor: Senator Shope, LD 8
Committee on Commerce

Overview
Establishes the Hydrogen Study Committee (Committee).

History
Statute defines, as an alternative fuel, liquefied petroleum gas, natural gas, hydrogen or a blend

of hydrogen with liquefied petroleum or natural gas that is used in an engine that is certified to
meet specified Environmental Protection Agency standards (A.R.S. § 4-215).

Provisions
4. Establishes the Hydrogen Study Committee and delineates the Committee membership. (Sec.

2. Asserts Committee members who are not members of the Legislature do not have voting

privileges. (Sec. 1)

3. Prescribes Committee responsibilities, which includes:

a) investigate and evaluate existing state and federal laws, regulations and funding sources
and recommend legislation related to the production, use, distribution and storage of
hydrogen;

b) study the production of hydrogen from any fuel source, the construction of a dedicated
hydrogen pipeline or network of pipelines to serve users of hydrogen, carbon capture and
sequestration, streamlined permitting processes for hydrogen facilities and cost-effective

industrial rates for hydrogen production; and
¢) review the safety standards regarding the production, use, distribution and storage of

hydrogen by state agencies.
4, Permits state agencies to take into consideration any applicable international and national
codes, regulations and standards after the Committee's review, including from specified
entities. (Sec. 1)

5. Instructs the Committee to make recommendations in consultation with specified entities.
(Sec. 1)

6. Directs the Committee, by September 1, 2023, to submit a report regarding recommendations
and include an economic impact analysis of the potential hydrogen value chain to the
Legislature and provide a copy to the Secretary of State. (Sec. 1)

7. Repeals the Committee on October 1, 2024. (Sec. 1)

SB 1396
Initials PRB Page 1 Commerce

Attachment ae)
Commerce

Fifty-fifth Legisiature
S.B. 1396

Second Regular Session
PROPOSED

HOUSE OF REPRESENTATIVES AMENDMENTS TO S.8. 1396

(Reference to Senate engrossed bill)

Page 3, after line 20, insert:

"Sec. 2. Emergency
This act is an emergency measure that is necessary to preserve the

public peace, health or safety and is operative immediately as provided by

law."

Amend title to conform
JEFF WENINGER

L396WENINGER
03/16/2022
02:35 PM

H: PRB/1s

__ Adopted vk
Failed

‘ Not Offered Analysts ini
Attachment 24 S

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1396

DATE March 22, 2022 MOTION: .)P A

PASS AYE NAY PRESENT | ABSENT

Carter

Chavez

Cook

Espinoza

Kaiser

Liguori

Meza

Wilmeth

Chaplik, Vice-Chairman

Weninger, Chairman

> AISIVAINIA SIA

O | O |

Ne he walls On / hall
NV a ; CEMMITTEE SECRETARY!
Ch

“JEFF WENINGER, Chairman
JOSEPH CHAPLIK, Vice-Chairman

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ATTACHMENT. a9

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SHA-256: f264e33f70e16c0b47f7d5ed733da15fd89c275e5496021bc5069d3b41872e2e
Our copy: 2022-03-22_commerce-minutes.pdf
Original: www.azleg.gov

Arizona House of Representatives Committee on Commerce Meeting Minutes - March 22, 2022

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