Arizona House of Representatives Committee on Commerce Report of Regular Meeting for February 10, 2026

Summary

The Report of Regular Meeting of the Committee on Commerce of the Arizona House of Representatives, Fifty-seventh Legislature, Second Regular Session, for Tuesday, February 10, 2026, chaired by Representative Weninger. The report records the meeting convening at 2:52 P.M. and adjourning at 3:56 P.M., the members present, and committee action on six bills: HB2863 held, HB2174 DPA/SE, HB2938 DPA, and HB2496, HB2910 and HB2744 DP. Attachments include the agenda, the committee attendance record and the Request to Speak report listing organizations in support, opposition or neutral on each bill. It also contains Majority Research Staff summaries, including the strike-everything amendment to HB 2174 on modeling and data organizations and a summary of HB 2744 on industrial commission adjudication of overtime wages. The report closes with the roll call vote on HB 2744.

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

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

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, February 10, 2026
House Hearing Room 5 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR

Convened 2:52 P.M.
Adjourned 3:56 P.M.

Members Present

Representative Aguilar
Representative Carter
Representative Cavero
Representative Connolly
Representative Diaz

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

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action
Bill Action
HB2863 HELD
HB2174 DPA/SE
HB2496 DP
HB2910 DP
HB2938 DPA
HB2744 DP

RECEIVE
CHIEF CLERKS OFFice
Members Not Present FEB 11 2026
Vote Attachments
10-0-0-1 4,5,6
9-1-1-0 7,8
10-1-0-0 9,10
11-0-0-0 11,12,13
10-1-0-0 14,15

Abby cp Committed Secretary

February 10, 2026

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

COMMITTEE ON COMMERCE
February 10, 2026
REVISED #3 - 2/09/26 REVISED #3 - 2/09/26 REVISED #3 - 2/09/26

ARIZONA HOUSE OF REPRESENTATIVES Cony 2 2552 pm

Fifty-seventh Legislature - Second Regular Session

REGULAR MEETING AGENDA Adirn > §°S6 pM

COMMITTEE ON COMMERCE

DATE Tuesday, February 10, 2026 ROOM HHR5 TIME 2:00 P.M. or upon recess or
adjournment of Floor

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=636 | 162879&eventID=2026021050

Members:
Representative Aguilar Representative Connolly Representative Willoughby
Representative Blackman Representative Diaz Representative Wilmeth
Representative Carter N Representative Hendrix Representative Way, Vice-Chairman
Representative Cavero Representative Villegas Representative Weninger, Chairman
Bills Short Title Strike Everything Title
*HB2174 insurance; modeling organizations; predictive S/E: insurance; modeling and data
DPASIE models organizations
(Livingston: Blackman)
]0-0-o-| COM, RULES
HB2496 dD fe) revitalization districts; construction contracts
—————— (Way)
9-I- -O COM, RULES
HB2744 D industrial commission; wages; adjudication
DP (Rivero)

BD “ )-0-O COM, RULES

HB2863 H | landlord tenant; eviction; personal property
(Nguyen)
COM, RULES

*HB2910 D Pp registrar of contractors; administrative recovery
$+ — (Hendrix) :

IC -| ; rs) COM held 0-0-0-0-0, RULES

Page 1 of 2 ATTACHMENT
Bills Short Title Strike Everything Title

HB2938 mandatory rounding method; cash transactions
DPA (Martinez: Aguilar, Crews, et al)

COM, RULES
[l-o-0-0 C™

ss On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

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02/04/2026
02/062026
02/09/2026

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

Page 2 of 2
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON

COMMERCE

CHAIRMAN: Jeff Weninger

VICE-CHAIRMAN: _ Michael Way

Way, Vice-Chairman

Weninger, Chairman

TOTAL

DATE 02/10/26
CONVENED 9-S2 OM
RECESSED
RECONVENED
ADJOURNED 3: SG PY
MEMBERS PRESENT | NOT PRESENT
Aguilar
Carter N a
Cavero il
Connolly i
Diaz P
Hendrix V4
Villegas A
Willoughby al
Wilmeth i
~~
Aa
!|

ATTACHMENT 2
Information Registered on the Request to Speak System

House Commerce (2/10/2026)

HB2174, insurance; modeling organizations; predictive models

Support:
Marc Osborn, RELX; Emily Raymond, CSAA INSURANCE; Courtney Coolidge, AZ CHAMBER OF COMMERCE;
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Tim Beaubien, Arizona Association Of Realtors

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

HB2496, revitalization districts; construction contracts

Support:
Todd Wynn, ASSOCIATED GENERAL CONTRACTORS-AZ CHAPTER; Mike Gardner, AZ BUILDERS' ALLIANCE

Oppose:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Scott Smith, AZ League Of Cities And Towns; Tyler
Cobb, Homebuilders Association Of Central Arizona; Pamela Giss, representing self; Susie Stevens, VALLEY
PARTNERSHIP; Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Clark Princell, VALLEY PARTNERSHIP; Cole

Libera, Pinal Partnership

HB2744, industrial commission; wages; adjudication

Support:
Mark Cardenas, CARPENTERS UNION LOCAL 1912; Conrad Carrasco, representing self

Neutral:
Charles Carpenter, INDUSTRIAL COMMISSION OF AZ

HB2863, landlord tenant; eviction; personal property

Oppose:
Courtney Gilstrap LeVinus, Arizona Multihousing Association; Beverly Janowitz-Price, representing self; Jeanne
Casteen, representing self; Amber Rivera, representing self

ATTACHMENT 3
HB2910, registrar of contractors: administrative recovery

Support:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

Oppose:

Carol Maas, representing self

HB2938, mandatory rounding method; cash transactions

Support:
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Dan Bogert, AZ RESTAURANT ASSOCIATION; Trish
Hart, Arizona Food Marketing Alliance; Michelle Ahlmer, ARIZONA RETAILERS ASSOCIATION

All Comments:
Trish Hart, Arizona Food Marketing Alliance: We support the Rep. Weninger amendment to HB 2938.
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2174: insurance; modeling organizations; predictive models
Sponsor: Representative Livingston, LD 28
Committee on Commerce

Summary of the Strike-Everything Amendment to HB 2174

Overview
Replaces statutory references of advisory organization with modeling and data organization
and allows the organization to file models to be used by insurers.

History
Statute authorizes DIFI to adopt rules requiring each insurer licensed to write property or

casualty insurance in this state to report its loss and expense experience, investment income,
administrative expenses and other data for classes of risks. DIFI may designate one or more
rate service organizations or advisory organizations to gather and compile the experience and
data (A.R.S. § 20-235).

Each advisory organization that assists insurers who make their own filings or rating
organizations in rate making, by the collection and furnishing of loss or expense statistics or
the submission of recommendations, must file with DIFI: 1) a copy of its constitution, articles
of agreement, or certificate of incorporation and a copy of its bylaws; 2) a list of its members;
3) the name and address of a resident upon whom notices or orders of DIFI may be served;
and 4) an agreement that DIFI may examine the advisory organization (A.R.S. § 20-368).

Provisions
1. Redefines advisory organization as a modeling and data organization. (Sec. 5)

2. Authorizes a modeling and data organization to file with DIFI models to be used by
insurers for making rates. (Sec. 3, 8)

3. Allows DIFI to require the modeling and data organization to file supporting data or any
additional information related to the content of the model and the outputs of the model
necessary to verify statutory compliance. (Sec. 8)

4. Specifies models, supporting data or additional information and model outputs are
confidential and not subject to subpoena or public records requests. (Sec. 8)

5. Conforms the advisory organization's filing requirements as prescribed by statutes
relating to rates and rating organizations to the requirements as prescribed by statutes
relating to open competition rates and rating organizations. (Sec. 3)

OO Prop 105 (45 votes) Oo Prop 108 (40 votes) OO Emergency (40 votes) OU Fiscal Note

Initials PB HB 2174
2/7/2026 Page 1 Commerce

ATTACHMENT 4/
6. Replaces the term advisory organization with modeling and data organizations. (Sec. 1,
2, 3, 6, 7, 8, 9, 10, 11, 12, 18)

7. Makes a conforming change. (Sec. 4)

Initials PB HB 2174
2/7/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2174

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2174
(Reference to printed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 20-235, Arizona Revised Statutes, is amended to
read:

20-235. Insurers: financial disclosure; requirements

A. The director may adopt rules which require each insurer licensed
to write property or casualty insurance in this state to report its loss
and expense experience, investment income, administrative expenses and
other data, as he may require, for classes of risks which he may
9 designate. Such reports shall be in addition to the annual statement
10 required by section 20-223.
11 B. The department may designate one or more rate service
12 organizations or atdvrsory—orgatizatiors MODELING AND DATA ORGANIZATIONS to
13 gather and compile the experience and data.
14 C. The director by order may require an insurer authorized to
15 transact insurance in this state to submit statistical and other financial
16 data including the information prescribed in subsection A of this section
17 in a form and content consistent with rules adopted pursuant to subsection
18 A, with any model guideline, regulation, rule or act adopted by the
19 national association of insurance commissioners or with the classification
20 basis used by the insurer. The director shall prescribe the time period
21 and form in which the data shall be submitted.
22 D. An insurer who fails to provide the information required under
23 subsection C of this section is subject to payment of a late fee of not
24 more than one hundred dollars for each day of delinquency. The director
25 shall notify an insurer of late fees that it will incur as a result of
26 noncompliance with this section at least ten days prior to the date any
27 such late fees become due.

ONO THR WN FE

28 Sec. 2. Section 20-341, Arizona Revised Statutes, is amended to
29 read:

30 20-341. Purpose of insurance rate regulation

31 A. The purpose of this article is to promote the public welfare by

32 regulating insurance rates to the end that they shall not be excessive,
33 inadequate or unfairly discriminatory, and to authorize and regulate
34 cooperative action among insurers in rate making and in other matters
35 within the scope of this article. Nothing in this article is intended to
36 prohibit or discourage reasonable competition, or to prohibit or
37 encourage, except to the extent necessary to accomplish the purpose stated
38 in this section, uniformity in insurance rates, rating systems, rating

Adopted # of Verbals

‘ailec Withdrawr

Not Offerec Analysts Initials

ATTACHMENT 5
H.B. 2174

OnNanFP WHE

plans or practices. This article shall be liberally interpreted to carry
into effect the provisions of this section.

B. Where the rules and regulations of a rating bureau or atvisory
orgamtzatton MODELING AND DATA ORGANIZATION conflict with the law, the
rules and regulations do not apply.

Sec. 3. Section 20-368, Arizona Revised Statutes, is amended to
read:

20-368. Modeling and data organizations

A. Every group, association or other organization of insurers,
whether located within or outside this state, which assists insurers which
make their own filings or rating organizations in rate making, by the
collection and furnishing of loss or expense statistics, or by the
submission of recommendations, but which does not make filings under this
article, shall be known as an—atvisory—orgatrizatton A MODELING AND DATA
ORGANIZATION.

B. Every atvtsory—organtzatton MODELING AND DATA ORGANIZATION shall
file with the director:

1. A copy of its constitution, its articles of agreement or
association or its certificate of incorporation and a copy of its bylaws,
rules and regulations governing its activities.

2. A list of its INSURER members, IF APPLICABLE.

3. The name and address of a resident of this state upon whom
notices or orders of the director or process affecting the zatvisury
orgattzatton MODELING AND DATA ORGANIZATION may be served.

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C. If, after a hearing, the director finds that the furnishing of
such information or assistance involves any act or practice which is
unfair or unreasonable or otherwise inconsistent with the provisions of
this article, he may issue a written order specifying in what respects
such act or practice is unfair or unreasonable or otherwise inconsistent,
and requiring the discontinuance of such act or practice.

D. No insurer which makes its own filings nor any rating
organization shall support its filings by statistics or adopt rate making
recommendations furnished to it by an atvisory—organization MODELING AND
DATA ORGANIZATION which has not complied with this section or with an
order of the director involving such statistics or recommendations issued
under subsection C of this section. If the director finds the insurer or
rating organization to be in violation of this subsection, he may issue an
order requiring the discontinuance of the violation.

E. THIS SECTION DOES NOT PRECLUDE A MODELING AND DATA ORGANIZATION
FROM FILING A MODEL PURSUANT TO SECTION 20-390, SUBSECTION C.

Sec. 4. Section 20-370, Arizona Revised Statutes, is amended to
read:

20-370. Examinations of rating organizations

A. The director, as often as he deems it expedient, may make or
cause to be made an examination of each rating organization licensed in

this state>—eacth—atvisury—organizationtreferredto—nrsection- 20-368 and

each group, association or other organization referred to in section
-2-

H.B. 2174

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20-369. The reasonable costs of such examination shall be paid by the
rating organization>—atvitsory—orgarizatron or group, association or other
organization examined upon presentation to it of a detailed account of the
cost.

B. The officers, managers, agents and employees of the rating
organi zation;——advtsory—crgatization or group, association or _ other
organization may be examined at any time under oath, and shall exhibit all
books, records, accounts, documents or agreements governing its method of
operation.

C. The director shall furnish two copies of the examination report
to the organization, group or association examined and shall notify the
organization, group or association that, within twenty days thereafter, it
may request a hearing on the report or on any facts or recommendations in
the report. Before filing the report for public inspection, the director
shall grant a hearing to the organization, group or association examined.

D. The report of the examination, when filed for public inspection,
shall be admissible in evidence in any action or proceeding brought by the
director against the organization, group or association examined, or its
officers or agents, and shall be prima facie evidence of the facts stated
in the report.

E. The director may withhold the report of the examination from
public inspection for such time as the director deems proper.

F. In lieu of the examination, the director may accept the report
of an examination made by the insurance supervisory official of another
state, pursuant to the laws of such state.

Sec. 5. Section 20-381, Arizona Revised Statutes, is amended to
read:

20-381. Definitions

In this article, unless the context otherwise requires:

tad sory—organizattor+

2@> 1. "Loss cost adjustment":

(a) Means that portion of a rate filed by an insurer with the
director that includes the insurer’s general expenses, total product
expenses, taxes, licenses and fee expenses and underwriting profit and
contingencies.

(b) Does not include loss adjustment expenses or prospective loss
costs.

Sy 2. “Loss cost modification factor" means that rating factor
filed by an insurer with the director for the purpose of modifying the
rate service organization’s prospective loss cost filing.

3. "MODELING AND DATA ORGANIZATION":

-3-
H.B. 2174

ONO HP WM FE

(a) MEANS ANY PERSON OTHER THAN A SINGLE INSURER WHO ASSISTS TWO OR
MORE INSURERS OR RATE SERVICE ORGANIZATIONS IN THE MAKING OF RATES BY
COMPILING AND FURNISHING LOSS OR EXPENSE STATISTICS OR OTHER STATISTICAL
INFORMATION AND DATA, OR BY THE SUBMISSION OF RECOMMENDATIONS AS TO RATES,
FORMS OR SUPPLEMENTARY RATE INFORMATION.

(b) DOES NOT INCLUDE A JOINT UNDERWRITING ASSOCIATION, ANY
ACTUARIAL OR LEGAL CONSULTANT, ANY EMPLOYEE OF AN INSURER OR INSURERS
UNDER COMMON CONTROL OR MANAGEMENT OR THEIR EMPLOYEES OR MANAGER.

4. "Prospective loss costs" means the historical aggregate losses
and loss adjustment expenses filed by a rate service organization with the
director on which a portion of a rate is based, adjusted through actuarial
trending to a future point in time and developed to their ultimate values.

5. "Rate":

(a) Means that cost of insurance per exposure unit’ whether
expressed as a single number or as a prospective loss cost with an
adjustment to account for the treatment of expenses, profit and individual
insurer variation in loss experience before any application of individual
risk variations based on loss or expense considerations.

(b) Does not include the minimum premium.

6. "Rate service organization":

(a) Means any person other than a single insurer who assists
insurers by compiling and furnishing loss or expense statistics and
recommending, making or filing rates, forms or supplementary rate
information.

(b) Does not include a joint underwriting association, any
actuarial or legal consultant, any employee of an insurer or insurers
under common control or management, or their employees or manager.

7. “Supplementary rate information":

(a) Means any manual or plan of rates, statistical plan,
classification, rating schedule, minimum premium, schedule of fees,
including membership fees charged by a reciprocal or mutual insurer,
rating rule, rate related underwriting rule and other information used by
an insurer in making rates.

(b) Does not include the final rate pages that combine the
prospective loss costs with the loss cost adjustments.

Sec. 6. Section 20-387, Arizona Revised Statutes, is amended to
read:

20-387. Delegation of rate making and rate filing obligations

A. An insurer may establish rates and supplementary’ rate
information based on the factors in section 20-384 using, if desired, the
recommendations of am—atvTrsory—organization A MODELING AND DATA
ORGANIZATION, or rates and supplementary rate information prepared by a
rate service organization, with average expense factors determined by the
rate service organization or with such modification for its own expense
and loss experience as the credibility of that experience allows.

B. An insurer may discharge its obligations pursuant to section
20-385 by giving notice to the director that it uses rates and
supplementary rate information prepared by a designated rate service
organization, with such information about modifications of the rates as is

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Hs Bi;

ONOAONRWDMY PE

2174

necessary to inform the director. The insurer's rates and supplementary
rate information are those filed by the rate service organization,
including any amendments to the rate as filed, subject to _ the
modifications filed by the insurer.

C. Licensed rate service organizations, atvrsory—organizations
MODELING AND DATA ORGANIZATIONS and admitted insurers are authorized to
exchange information and experience data with rate service organizations,

advtsory—orgatizattors MODELING AND DATA ORGANIZATIONS and insurers in

this and other states and may consult with them with respect to rate

making.

Sec. 7. Section 20-388, Arizona Revised Statutes, is amended to
read:

20-388. Disapproval of rates

If the director finds that a rate is not in compliance with section

20-383, the director shall issue an order specifying in what respects it
so fails and stating that, within thirty days after the order is issued,
the rate is no longer effective. The order does not affect any contract
or policy made or issued prior to the effective date of the order. The
order shall be served immediately pursuant to section 20-151. Any
insurer, rate service organization or atvtsory—orgatization MODELING AND
DATA ORGANIZATION may request a hearing pursuant to title 41, chapter 6,
article 10, and the request for a hearing stays the effectiveness of the
order as provided in section 20-162.

Sec. 8. Section 20-390, Arizona Revised Statutes, is amended to
read:

20-390. Modeling and data organizations: filing with director

A. &n—advrsory—orgatrization A MODELING AND DATA ORGANIZATION shall
not conduct its operations in this state until it files with the director:

1. A copy of its constitution, charter, articles of organization,
agreement, association or incorporation and a copy of its bylaws and any
other rules or regulations governing its activities.

2. A list of its INSURER members and subscribers, IF APPLICABLE.

3. The name and address of one or more residents of this state upon
whom notices, process affecting it or orders of the director may be
served.

B. An—atvtsory—orgarizatton A MODELING AND DATA ORGANIZATION shall
promptly file any amendments to a document required to be filed pursuant
to this section.

C. A MODELING AND DATA ORGANIZATION MAY FILE WITH THE DIRECTOR
MODELS TO BE USED BY INSURERS IN THIS STATE FOR MAKING RATES. THE
DIRECTOR MAY REQUIRE THE MODELING AND DATA ORGANIZATION TO FILE SUPPORTING
DATA OR ANY ADDITIONAL INFORMATION RELATED TO THE CONTENT OF THE MODEL AND
THE OUTPUTS OF THE MODEL NECESSARY TO VERIFY THAT THE MODEL COMPLIES WITH
THE REQUIREMENTS OF THIS TITLE.

D. MODELS, ANY SUPPORTING DATA OR ADDITIONAL INFORMATION REQUESTED
BY THE DIRECTOR AND MODEL OUTPUTS FILED BY MODELING AND DATA ORGANIZATIONS
PURSUANT TO SUBSECTION C OF THIS SECTION ARE CONFIDENTIAL AND NOT SUBJECT
TO SUBPOENA OR TITLE 39, CHAPTER 1.

H.B. 2174

ANA OHP WN FE

@ E. It is unlawful for ar—atvrsory—crgatizatron A MODELING AND
DATA ORGANIZATION to engage in any unfair or unreasonable practice.

Sec. 9. Section 20-392, Arizona Revised Statutes, is amended to
read:

20-392. Rate agreements among insurers prohibited

A. Except with respect to apportionment agreements among insurers
approved by the director pursuant to section 20-395, an insurer shall not
assume any obligation to any person, other than a policyholder or other
insurers which, with it, are under common control or management or are
members of a joint underwriting or joint reinsurance organization, to use
or adhere to certain rates or rules. No person other than the director
may impose any penalty or other adverse consequence for failure of an
insurer to adhere to certain rates or rules.

B. Members and subscribers of rate service organizations or
advtsory—organizeattorrs MODELING AND DATA ORGANIZATIONS may use the work
products and services of such organizations as their individual judgment
may dictate. Such use by two or more authorized insurers shall not be
sufficient to support a finding that an agreement to adhere exists and may
be used only for the purpose of supplementing direct evidence of such an
agreement.

Sec. 10. Section 20-393, Arizona Revised Statutes, is amended to
read:

20-393. Recording and reporting of experience

The director shall promulgate reasonable rules, including rules
providing statistical plans, for use by all insurers in the recording and
reporting of loss and expense experience, in order that the experience of
such insurers may be made available to the director. No insurer may be
required to record or report its experience on a classification basis
inconsistent with its own rating system. An insurer may report its
experience to any rate service organization or atvisory—orgamization
MODELING AND DATA ORGANIZATION with which it affiliates.

Sec. 11. Section 20-394, Arizona Revised Statutes, is amended to
read:

20-394. Examination of rate service organizations and joint
underwriting and joint reinsurance organizations

The director, as often as considered necessary, may examine each
rate service organization, each atvrsory—orgartzatton MODELING AND DATA
ORGANIZATION and each group, association or other organization filing
pursuant to section 20-391. The director shall examine only’ those
activities conducted pursuant to this article. The director may examine
the officers, manager, agents and employees of such organizations at any
time under oath. The organization examined shall pay the reasonable costs
of the examination upon presentation to it of a detailed account of the
costs. The organization examined shall exhibit all books, records,
accounts, documents or agreements governing its method of operation. In
lieu of the examination the director may accept the report of an
examination made by the insurance supervisory official of another state,
pursuant to the laws of such state.

H.B. 2174

1 Sec. 12. Section 20-396, Arizona Revised Statutes, is amended to
2 read:

3 20-396. Hearing and judicial review

4 Any insurer, rate service organization or adtvirsory—organizetion
5 MODELING AND DATA ORGANIZATION to which the director has issued an order
6 or decision may request a hearing pursuant to title 41, chapter 6, article
7 10 and, except as provided in section 41-1092.08, subsection H, seek
8 judicial review pursuant to title 12, chapter 7, article 6.

9 Sec. 13. Section 20-409, Arizona Revised Statutes, is amended to
10 read:

aE 20-409. Recognized surplus lines

12 A. If after a hearing the director finds that a particular

13 insurance coverage or type, class or kind of coverage is not readily
14 procurable from authorized insurers, the director may by order declare
15 such coverage or coverages to be recognized surplus lines until the
16 director's further order.

17 B. The order is subject to modification by the director. The
18 director shall modify any coverage if the director determines that the
19 coverage is no longer entitled to recognition as surplus lines after a
20 hearing held on the director's initiative or on the request of any
21 insurance producer, surplus lines broker, broker, insurer, rating or
22 advtsory—orgatrizatton MODELING AND DATA ORGANIZATION, or other person."

23 Amend title to conform

JEFF WENINGER

2174WENINGER SE.docx
02/06/2026

10:21 AM

H: PB/1s

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB2174

DATE February 10, 2026 MOTION: DPA S/E

PASS NAY PRESENT | ABSENT

Aguilar

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

SRAANAAN ASIF

"UB
Vile

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. G
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2496: revitalization districts; construction contracts
Sponsor: Representative Way, LD 15
Committee on Commerce

Overview
Delineates requirements for contracts entered into by a revitalization district.

History
The governing body of one or more municipalities may adopt a resolution declaring its

intention to form a tax levying revitalization district to include property within the corporate
boundaries of the district, if the public convenience and necessity require and on presentation
of a petition signed by the owners of at least 51% of the net assessed property value proposed
to be included in the district and a petition signed by at least 51% of the property owners in
the area proposed to be included in the district. The resolution must include a general plan
for the district which sets out a description of the improvements for which the district is
proposed to be formed and the areas to be improved.

To further the implementation of the general plan, a revitalization district may enter into
contracts and spend monies for any infrastructure purposes and enter into agreements with
landowners and the municipality for the collection of fees and charges from landowners for
infrastructure purposes, the advance of monies by landowners for infrastructure purposes or
the granting of real property by the landowner for infrastructure purposes. An agreement
between a landowner and a revitalization district may include agreements to repay all or
part of such advances, fees and charges from the proceeds of bonds if issued or from advances,
fees and charges collected from other landowners or users or those having a right to use any
infrastructure. Public infrastructure, other than movable property, may be located only in or
on lands owned by the state, the revitalization district or a municipality or county or
dedicated or otherwise designated as public roadways, highways, streets, thoroughfares,
easements or rights-of-way, whether in or out of the district or municipality.

A revitalization district has perpetual succession and, if the district does not have bonds or
other outstanding obligations, must be dissolved 10 years after the date of formation unless
the governing bodies extend the district by resolution for another 10 years. The governing
body by resolution may order the participation in the costs of any public infrastructure
purpose, including the payment of bond debt service (‘Title 48, Chapter 39, Article 1, A.R.S.).

Provisions
1. Declares any construction contract a revitalization district enters into must provide for:

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

Initials PB HB 2496
2/5/2026 Page 1 Commerce

ATTACHMENT 7]
a, allowing a contractor to suspend performance or terminate a construction contract for
failure by the district to make timely payment of amounts certified and approved for
payment;

b. allowing a subcontractor to suspend performance or terminate a contract with a
general contractor or subcontractor for a district if specified conditions are met;

c. allowing a subcontractor to suspend performance or terminate if the district makes
timely payment of certified and approved amounts for the subcontractor's work but
the contractor fails to pay the subcontractor;

d. allowing a subcontractor to suspend performance or terminate if the district declines
to approve and certify portions of the contractor's billing for the subcontractor's work
for reasons that are not the fault of or directly related to that subcontractor's work;

e. allowing a contractor or subcontractor that suspends performance to cease furnishing
further labor, materials or services until being paid the amount that was certified and
approved;

f. requiring the award of reasonable attorney fees and costs to the successful party in
any action or arbitration; and

g. requiring that any written notice is deemed provided upon specified occurrences. (Sec.
1)

2. Provides a time frame for providing written notice relating to intention of suspension or
termination of a contraction contract. (Sec. 1)

3. Adds that a contractor or subtractor is not in breach of the construction contract for
suspending performance or terminating the contract. (Sec. 1)

4. Apples the construction contract requirements prospectively. (Sec. 2)

Initials PB HB 2496
2/5/2026 Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2496

DATE February 10, 2026 MOTION: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar

Carter N

Cavero

Connolly

Diaz wt

Hendrix

Villegas

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

/ O

PARKA, AK) AXA

APPROVED: act SEORETARY

Wrnrw—

~ JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT -%&
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2910: registrar of contractors; administrative recovery
Sponsor: Representative Hendrix, LD 14
Committee on Commerce

Overview
Changes the amount of time in which the contractor's right to contest is deemed waived.

History
The Registrar of Contractors (ROC) licenses and regulates residential and commercial

contractors. The ROC is required to: 1) classify and qualify applicants for a license; 2) change
the license classification in the case of a title reclassification; 3) conduct investigations to
protect the health and safety of the public; and 4) establish written examinations to protect
the health and safety of the public.

The ROC also oversees the Residential Contractor's Recovery Fund, which pays claims of up
to $30,000 to homeowners who have been financially harmed by a licensed contractor. The
Recovery Fund is financed mainly by a contractor-paid assessment when they obtain or
renew their licenses (Title 32, Article 2.1, A.R.S.).

The ROC may order payment from the Recovery Fund to remedy a violation that caused a
contractor's license to be revoked or suspended. The ROC must serve the contractor a notice
setting forth the amount claimed or to be awarded. If the contractor contests the amount or
propriety of the payment, the contractor must respond in writing within 10 days after the
date of service by requesting a hearing to determine the amount or propriety of the payment.
A contractor's failure to respond within 10 days after the date of service may be deemed as a
waiver of the right to contest (A.R.S. § 32-1133.01).

Provisions
1. Increases, from 10 days to 20 days, the amount of time for which the contractor's failure

to respond is deemed a waiver of the right to contest. (Sec. 1)

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

Initials PB HB 2910
1/28/2026 Page 1 Commerce

ATTACHMENT 4
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2910

DATE February 10, 2026 MOTION: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

& NNVEAKAAAAA

pie

howe

APPROVED: wane é MITTEE SEGRETARY
hi“

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. a)
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2938: mandatory rounding method; cash transactions
Sponsor: Representative Martinez, LD 16
Committee on Commerce

Overview
Mandates the use of Swedish Rounding for cash transactions when the penny is unavailable

or not used.

History
The Weights and Measures Services Division (WMSD), administered by the Arizona

Department of Agriculture (AZDA), ensures fairness and accuracy in commercial
transactions by regulating, weighing and measuring devices used in commerce. Additionally,
WMSD conduct a wide variety of inspection programs to protect the marketplace and
auditing measuring devices and enforcing the statutes, rules and regulations governing their
use.

The Secretary of the Treasury has the authority to mint and issue pennies in amounts
necessary to meet the needs of the United States. The Secretary of the Treasury ceased penny
production November 12, 2025.

Provisions
1. Mandates Swedish rounding, when pennies are unavailable or not used by a seller, to a
total transaction amount that rounds the total transaction amount to the nearest five-

cent increment as follows:
a. $0.01, $0.02, $0.06 or $0.07; rounded down to the nearest multiple of $0.05; and
b. $0.03, $0.04, $0.08 or $0.09; rounded wp to the nearest multiple of $0.05. (Sec. 2)

2. Applies Swedish rounding requirements to a final total transaction amount of a cash
transaction after taxes, fees and other charges are calculated. (Sec. 2)

Excludes all non-cash payment methods from Swedish rounding requirements. (Sec. 2)

Requires sellers to post visible notice at the point of sale explaining the rounding policy.
(Sec. 2)

5. Prohibits a seller from applying a rounding method other than the Swedish rounding.
(Sec. 2)

6. Authorizes the WMSD to enforce Swedish rounding requirements by issuing warnings,
orders and imposing civil penalties. (Sec. 2)

7. Declares the Swedish rounding requirements are intended to operate consistently with
US coinage and legal tender law. (Sec. 2)

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

Initials PB HB 2938
2/4/2026 Page 1 Commerce

ATTACHMENT ||
8. Specifies Swedish rounding requirements do not:
a. declare any coin or currency invalid as legal tender;
b. require acceptance or refusal of any specific denomination of the U.S. coin or currency;

and
c. preempt, conflict with or supersede any provision of federal law regulation.

9. Contains a legislative intent clause. (Sec. 3)

10. Makes a technical change. (Sec. 1)

Initials PB HB 2938
2/4/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2938

ONAL WN PF

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2938
(Reference to printed bill)

Amendment instruction key:
(GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
(Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
LGREER-STREKEGUT-F- BRACKETS] indicates new text removed from statute
or previously enacted session law.
(freen—strikeout—nir_trackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<treen—str+keout—rr-carets>> indicates a section removed from the bill.

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

Section 1. Heading change

The chapter heading of title 44, chapter 38, Arizona Revised
Statutes, is changed from "BUSINESSES EXEMPT FROM MASK MANDATE" to
“BUSINESSES GENERALLY".

Sec. 2. Title 44, chapter 38, article 1, Arizona Revised Statutes,
is amended by adding section 44-7952, to read:

44-7952. Cash transactions; mandatory rounding of transaction

totals; notice; enforcement

A. IF ONE-CENT COINS ARE NOT AVAILABLE OR ARE NOT USED BY A SELLER
AT A POINT OF SALE, THE SELLER SHALL APPLY SWEDISH ROUNDING TO A TOTAL
TRANSACTION AMOUNT THAT ROUNDS THE TOTAL TRANSACTION AMOUNT TO THE NEAREST
FIVE-CENT INCREMENT. IF A TOTAL TRANSACTION AMOUNT ENDS:

1. IN ONE OR TWO CENTS, THE TOTAL TRANSACTION AMOUNT IS ROUNDED
DOWN TO THE NEAREST MULTIPLE OF FIVE CENTS.

2. IN THREE OR FOUR CENTS, THE TOTAL TRANSACTION AMOUNT IS ROUNDED
UP TO THE NEAREST MULTIPLE OF FIVE CENTS.

3. IN SIX OR SEVEN CENTS, THE TOTAL TRANSACTION AMOUNT IS ROUNDED
DOWN TO THE NEAREST MULTIPLE OF FIVE CENTS.

4. IN EIGHT OR NINE CENTS, THE TOTAL TRANSACTION AMOUNT IS ROUNDED
UP TO THE NEAREST MULTIPLE OF FIVE CENTS.

B. SWEDISH ROUNDING APPLIES TO A FINAL TOTAL TRANSACTION AMOUNT OF
A CASH TRANSACTION AFTER TAXES, FEES AND OTHER CHARGES ARE CALCULATED.

C. SWEDISH ROUNDING DOES NOT APPLY TO A TRANSACTION THAT IS PAID BY
A CREDIT CARD, DEBIT CARD, ELECTRONIC FUNDS TRANSFER, MOBILE PAYMENT
APPLICATION OR OTHER NON-CASH PAYMENT METHOD.

D. A SELLER THAT IS SUBJECT TO THIS SECTION SHALL POST A NOTICE
THAT IS VISIBLE TO CUSTOMERS AT THE POINT OF SALE STATING "CASH

# of Verbals

WVithd| awl

Analysts Initials

House Amendments to H.B. 2938

1 TRANSACTIONS ARE ROUNDED TO THE NEAREST FIVE-CENT INCREMENT PURSUANT TO
2 STATE LAW".

3 E. A SELLER MAY NOT APPLY A ROUNDING METHOD OTHER THAN SWEDISH
4 ROUNDING.

3 [ ELLER CALCULATE AND REMIT

6 IMPOSED BY A STATE OR MUNICIPAL TAXING AUTHORITY BASED ON THE SALES PRICE
7 BEFORE THE CASH TRANSACTION WAS ROUNDED. J

8 ([f-] [G.] THIS SECTION SHALL BE ENFORCED BY THE WEIGHTS AND

9 MEASURES SERVICES DIVISION OF THE ARIZONA DEPARTMENT OF AGRICULTURE

10 PURSUANT TO TITLE 3, CHAPTER 19. THE DIVISION MAY ISSUE WARNINGS AND

11 ORDERS AND IMPOSE CIVIL PENALTIES IN ADDITION TO OTHER ENFORCEMENT

| 12 MEASURES.

13 [H. A SELLER IS NOT IN VIOLATION OF ANY STATE OR MUNICIPAL
14 T RD IF THE ACTION IS BASED ON
| 15 COMPLIANCE WITH THIS SECTION. ]
16 [@-] [{1.] THIS SECTION IS INTENDED TO OPERATE CONSISTENTLY WITH
17 FEDERAL LAW THAT GOVERNS UNITED STATES COINAGE AND LEGAL TENDER.
| 18 [H+] [d.] THIS SECTION DOES NOT:
19 1. DECLARE ANY COIN OR CURRENCY INVALID AS LEGAL TENDER.
20 2. REQUIRE ACCEPTANCE OR REFUSAL OF ANY SPECIFIC DENOMINATION OF
21 THE UNITED STATES COIN OR CURRENCY.
22 3. PREEMPT, CONFLICT WITH OR SUPERSEDE ANY PROVISION OF FEDERAL LAW
23 REGULATION.
24 Sec. 3. Legislative intent
25 The legislature intends that section 44-7952, Arizona Revised

26 Statutes, as added by this act, protects businesses and governmental
27 agencies in this state.

28 Enroll and engross to conform
29 Amend title to conform

JEFF WENINGER

2938WENINGER. docx
02/09/2026

10:52 AM

H: PB/1s
130BPQQVA
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2938

DATE February 10, 2026 MOTION: DPA

PASS

>

ay NAY PRESENT | ABSENT

Aguilar

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Willoughby

Wilmeth

Way, Vice-Chairman

NAKAARARKRKAAY

Weninger, Chairman

go | 2 O

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WZ he

APPROVED: he CQMMITTEE SEPRETARY
ae

‘WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT | 3
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2744: industrial commission; wages; adjudication
Sponsor: Representative Rivero, LD 27
Committee on Commerce

Overview
Authorizes the Industrial Commission of Arizona (ICA) to investigate and adjudicate matters

related to overtime wage pay violations.

History
The Fair Labor Standards Act (Act) authorizes the U.S. Department of Labor (USDOL) to

investigate and supervise the payment of unpaid wages or unpaid overtime compensation
owing to any employee. The Act mandates that employees covered by the Act must receive
overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-
half their regular rates of pay. The Act specifies that there is no limit on the number of hours
employees aged 16 and older may work in a workweek and is applied on a workweek basis.
The Wage and Labor Division of the USDOL is the primary agency responsible for enforcing
overtime laws under the Act.

If an employer fails to pay the wages due to the employee, the employee may recover in a civil
action against an employer an amount that is treble the amount of the unpaid wages.
Alternatively, an employee may file a written claim with the ICA for unpaid wages against
an employer if the amount of such wages does not exceed $12,000 and if such claim is filed
within one year of the accrual of such claim. The ICA, on behalf of an employee, may obtain
judgment and execution, garnishment, attachment or other available remedies for collection
of unpaid wages established by the department's final determination (A.R.S. §§ 23-355, 23-

356).

Provisions
1. Authorizes the ICA to investigate and adjudicate matters related to overtime wage pay

violations. (Sec. 1)

2. Requires an employee to file a complaint with the ICA within a year of the occurrence of
the alleged violation. (Sec. 1)

3. Requires the ICA to adopt rules governing the complaint process and investigation
procedures. (Sec. 1)

4. Prescribes the ICA's authority in overseeing overtime wage adjudication cases. (Sec. 1)
Preserves an employee's ability to pursue other legal remedies. (Sec. 1)

Defines commission, employee and overtime wage. (Sec. 1)

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

Initials PB HB 2744
2/5/2026 Page 1 Commerce

ATTACHMENT |4
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO. __ HB 2744

DATE

February 10, 2026

MOTION: DP

PASS

NAY PRESENT | ABSENT

Aguilar

Carter N

—

Cavero

Connolly

Diaz

Hendrix

Villegas

Willoughby

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

\ AOA

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

SIN AARAANINAANS

| ©

Agee

COMMITTEE SEQRETARY

ATTACHMENT! 5

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