Committee on Commerce Report of Regular Meeting — Arizona House of Representatives, February 17, 2026

Summary

Report of Regular Meeting of the Arizona House of Representatives Committee on Commerce, Fifty-seventh Legislature, Second Regular Session, for Tuesday, February 17, 2026, adjourned at 8:22 P.M. Its bill action table lists HB4020 as DP 10-0-0-1, HB2680 as DPA 10-1-0-0 and HB4088 as FAILED 4-6-1-0, with attachment numbers for each. The attachments include the regular meeting agenda, which names Weninger as Chairman and Way as Vice-Chairman. They also include a Request to Speak report of support and opposition comments on bills such as HB2128 and HB2255, and a bill summary for HB4017 on pet ownership limits in planned communities.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
COMMITTEE ON COMMERCE
Report of Regular Meeting
Tuesday, February 17, 2026
House Hearing Room S -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR
Conyened 2:51 P.M.
Adjourned 8:22 P.M.
Members Present Members Not Present
Representative Aguilar
Representative Blackman
Representative Carter

Representative Cavero RECEIVED
Representative Connolly CHIEF CLERKS OFFICE
Representative Diaz

Representative Hendrix FEB 1 9 2026

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

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2
Committee Attendance
Report — Attachment 3
Committee Action

Bill Action Vote Attachments
HB2911 HELD 4,5
HB4020 DP 10-0-0-1 6,7
HB2255 DP 10-0-0-1 8,9

HB2591 DPA 10-0-0-1 10,11,12
HB2680 DPA 10-1-0-0 13,14,15
HB2979 DPA 11-0-0-0 16,17,18
HB2868 DP 8-1-2-0 19,20
HB2429 DPA/SE 8-2-1-0 21,22,23,24
HB4011 DP 11-0-0-0 25,26,27
HB2397 DPA 11-0-0-0 28,29,30
HB4026 DP 8-3-0-0 31 :32,33
HB2128 DPA 11-0-0-0 34,35,36
HB2991 DP 10-1-0-0 37,38,39
HB4088 FAILED 4-6-1-0 40,41
HB4086 DP 8-2-1-0 42,43,44
HB2999 DPA/SE 8-1-1-1 45,46,47,48
HB4001 DPA 9-1-0-1 49,50,51
HB2996 DPA 10-0-0-1 52,53,54
HB2834 DPA 10-0-0-1 55,56,57
HB2951 DPA/SE 10-0-0-1 58,59,60
HB4017 DP 10-0-0-1 61,62

? .
vA sbi E Stuaep~

Keesha Esquerette, Committee Secretary
February 19, 2026

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

COMMITTEE ON COMMERCE
February 17, 2026
Cony: 235) pm

Adi: yiaarapm
REVI

REVISED - 2/13/26 REVISED - 2/13/26 SED - 2/13/26

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - Second Regular Session

REGULAR MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, February 17, 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:/Avww.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=202602 1092

Members:
Representative Aguilar Representative Connolly Representative Wilmeth
Representative Blackman Representative Diaz Representative Way, Vice-Chairman
Representative Carter N Representative Hendrix Representative Weninger, Chairman
Representative Cavero Representative Villegas
Bills Short Title Strike Everything Title

HB2128 ? p A homeowners' associations; condominiums; actions;

meetings
(Carter N: Gress)

Il-0-O-O COM, RULES

HB2255 rc Pp teachers academy; community college students
(Weninger)

] 9-0-1 { ED w/d, COM, RULES

HB2397 homeowners' associations; property covenants;

disclosures
(Biasiucci)
-O"-©'COM, RULES

HB2429 vacation rentals; short-term rentals; occupancy S/E: same subject
DPASE (Bliss)
COM, RULES
“fe -O

HB2591 apprenticeships; registration; certificate
DPA (Wilmeth)

]0-0-6 -| COM, RULES

Page 1 of 3

Attachment |
Bills Short Title Strike Everything Title

HB2680 op worker's compensation; notice; fraud; commission
DPA (Hernandez A: Aguilar, Austin, et al)

Ip 5 -) COM: RULES

HB2834 ( Op claims against HOAs; filing fees
(Carter N)
COM, RULE
Ipest
HB2868 installation license; insurance; rules
DP (Wilmeth)
S- “3 sag D COM, RULES

HB2911 H | registrar of contractors; restitution; repeal
(Hendrix)

COM, RULES

*HB2951 | | automatic subscription renewals; contracts; S/E: same subject

requirements
(Connolly: Aguilar, Austin, et al)
[Q-0-0- COM, RULES

HB2979 credit unions; certificates; powers; committee
(Wilmeth)

COM, RULES
L-D-D-O.
social media; online content; minors S/E: application distributor; minor

HB2991 0
_DP (Carbone)
iD-|-b pom. RULES

DIFI; certificates of insurance

HB2996
DPA (Weninger)
lO A /- COM, RULES

**11B2999 municipal improvement districts; technical S/E: infrastructure finance districts
DPAlse correction

(Weninger)

GA-\-|
HB4001 D Pe alternative nicotine products; regulation.

(Weninger)

Gul-p-|_ COM: RULES
HB4011 HOAs; duties
_DP (Pingerelli)

}1-0-0-C COM: RULES

Page 2 of 3
Bills Short Title Strike Everything Title

HB4017 pet ownership limits; planned communities.
DP (Gress)

0-00-| O
tO _) GOV w/d, COM, RULES

HB4020 p insurance; fraud unit; assessment; increase
Ar... (Livingston: Blackman, Heap, et al)

16-¢-0-] COM: RULES

HB4026 D pP public infrastructure improvements; distribution
limit
(Carbone: Connolly, Livingston, et al)

oo COM, RULES

HB4086 f q escrow agents; notice; property sale
(Griffin)

8-J4-f) COM: RULES

HB4088 : commercial motor vehicle; liability insurance
Failed

(Lopez: Biasiucci, Marshall, et al)

4.| fe D COM, RULES

- On previous agenda
ae If printed, first read and assigned

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

VE
RA
02H0/2026
02442026
02/13/2026

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 3 of 3
Information Registered on the Request to Speak System

House Commerce (2/17/2026)

HB2128, homeowners' associations; condominiums; actions:
meetings

Support:

David Winstanley, representing self; Lisa Marx, representing self; Dennis J Legere, ARIZONA HOMEOWNERS
COALITION; John Krahn, representing self; Michele Morrison, representing self; Linda Ross, representing self;
Charmaine Roth, representing self; Roseanne and Steve Elson, representing self; Melanie Teixeira, representing
self; Pierre Desombre, representing self; Raymond Wasson, representing self; Kathleen Harden-Wasson,
representing self; deana corsa, representing self; Irene Smith, representing self; Teresa Pinter, representing self;
Clare Scarpulla, representing self; Julia Abston, representing self; Shirley Dlane Mier, representing self; Denise
Priddy, representing self; Leo Brown, representing self; Henry Schubel, representing self; Diana Dow, representing
self; Kathryn Kendall, representing self; Jeff Carr, representing self; James Roth, representing self; Ann Friday,
representing self; Larry Springer, representing self

Oppose:
Lynelle Glysson, representing self; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

All Comments:

David Winstanley, Self: This bill corrects a conflict in law between 33-1804 and 10-3821 that permits HOA boards
to make decisions without visibility of their constituents. It is critical to correct so HOA homeowners have visibility
in their own communities.; Lisa Marx, Self: Dennis Legere will present my statement.; Dennis J Legere, ARIZONA
HOMEOWNERS COALITION: The purpose of this section is to ensure transparency in the association business for
the homeowners who pay for it all. The use of "Action without a meeting" is one way this law is violated daily
across the state. Minor amendment required.; John Krahn, Self: If | am unable to attend in person (or virtualy),
please allow Dennis Legere to testify on my behalf; Michele Morrison, Self: Many HOA management companies
advise boards to make decisions by written consent and outside noticed meetings, effectively rendering ARS
33-1804 & 33-1248 meaningless, especially when boards adopt policies broadly opposed by the community.;
Roseanne and Steve Elson, Self: our HOA has abused the executive sessions on many occasions and circumventing
open meeting law by gaining support for their position by talking to other board members individually resulting in
little to no discussion during the open meeting.; Clare Scarpulla, Self: Our HOA Board lacks transparency. They
routinely discuss topics and make decisions in closed meetings. The ‘action without a meeting' is misused with
little documentation. They also go into ‘executive sessions' for reasons not applicable.; Denise Priddy, Self:
Transparency in our HOA is a major issue. The HOA board of directors will not provide essential information and/or
misrepresent and mislead the owners in the HOA whenever they don't want owners to know the purpose of their
actions or inactions.; Diana Dow, Self: Our HOA denied a permitted request, revised rules mid-process, and used
executive sessions to hide decisions. This opaque, punitive process caused legal costs. HB-2128 promotes
transparency. Please vote YES.; Jeff Carr, Self: Open meetings are crucial; James Roth, Self: This provides for more
transparency and limits abuse of ‘action without a meeting” by boards.; Ann Friday, Self: My HOA uses the
Executive session exceptions for item discussions that should be conducted in open meetings. My husband was a

Attachment |
board member. They would continue even after he told them they must stop. Also emergency exception to use
email to vote.; Larry Springer, Self: As a former board member | have seen this used to avoid informing the
membership of actions taken.; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ: Neutral with

Weninger amendment

HB2255, teachers academy; community college students

Support:

Lauren Armour, MARICOPA COUNTY COMMUNITY COLLEGE DIST; Jessica Rainbow, MOHAVE COMMUNITY
COLLEGE; Kristen Boilini, YAVAPAI COLLEGE; Beverly Janowitz-Price, representing self; Christina Mollica,
representing self; Becky Sayler, representing self; Carol Poole, representing self; Francesca Pardes, representing
self; Maryann Kenney, representing self; Dee Maitland, representing self; Danny Baker, representing self; Judith
Lohr, representing self; Courtney Coolidge, AZ CHAMBER OF COMMERCE; Mary Elizabeth Pollard, representing
self; Mary Beth Tripp, representing self; Michele Garrick Nave, representing self; Terri Farneti, representing self;
Cheryl McCutcheon, representing self; Lois Hansen, representing self; Shelley Erickson, representing self;
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Greg Olszta, representing self; Ruth Porter-
Tilman, representing self; Leslie Cox, representing self; Shana Hornstein, representing self; Margaret Deming,
representing self; Pam Spicer, representing self; Carolyn Drennan, representing self; Judy Shivack, representing self

Oppose:

Shari Schroeder, representing self

All Comments:

Lauren Armour, MARICOPA COUNTY COMMUNITY COLLEGE DIST: Maricopa Community Colleges urges support for
allowing our bachelor's of education students to receive four years of Arizona Teachers Academy scholarship
funding.; Francesca Pardes, Self: It is great that this bill expands the Teachers Academy scholarship for community
college students to 4 years; supporting an affordable means to teacher certification. It increases access to higher
education & helps expand the teacher workforce in AZ; Maryann Kenney, Self: Helpful to increase access to higher
ed and teacher certification; Danny Baker, Self: We need qualified, certified teachers in Arizona. Please support
this bill.; Chery! McCutcheon, Self: | believe this bill will increase access to higher education and diversify the
teaching workforce by facilitating a lower-cost pathway to teacher certification.; Lois Hansen, Self: This bill will
increase access to higher education and diversify the teaching workforce by facilitating a lower-cost pathway to
teacher certification.; Margaret Deming, Self: All for anything to improve the quality of teachers in the AZ
education system.; Judy Shivack, Self: | support affordable pathways to teacher certification given the teacher
shortage.; Shari Schroeder, Self: I'm against any bill that does not extend to all forms of education that my tax
dollars fund

HB2397, homeowners’ associations; property covenants: disclosures

Support:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION; Linda Ross, representing self; Charmaine Roth, representing
self; Melanie Teixeira, representing self; Lisa Marx, representing self; Pierre Desombre, representing self; Raymond
Wasson, representing self; Kathleen Harden-Wasson, representing self; deana corsa, representing self; Teresa
Pinter, representing self; Clare Scarpulla, representing self; Julia Abston, representing self; Shirley Dlane Mier,
representing self; Denise Priddy, representing self; Leo Brown, representing self; Henry Schubel, representing self;
Diana Dow, representing self; Jeff Carr, representing self

Neutral:
Tom Farley, Arizona Association Of Realtors; James Roth, representing self

Oppose:
Daniel Stasi, representing self; Lynelle Glysson, representing self; Spencer Kamps, HOME BUILDERS ASSOCIATION

OF CENTRAL AZ

All Comments:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION: This bill reflects 10 years of effort to finally address
inadequate disclosure requirements for home buyers. The amendment is still a work in progress as vital provisions
were removed or significantly altered WITHOUT the consensus of the homeowners.; Lisa Marx, Self: Unbale to;
Clare Scarpulla, Self: There have been several lawsuits and an investigation against my HOA, which ought to have
been required to be disclosed to potential home buyers without a specific request.; Denise Priddy, Self: We were
informed that the common area directly behind our home was owned and maintained by the HOA.The HOA has
not maintained the area and the common area is a major fire danger as noted in 3 violation letters from the local
fire dept fire marshal.; Diana Dow, Self: HB-2397 increases HOA transparency and accountability by limiting
arbitrary covenants, requiring accurate buyer disclosures, and clarifying member and board duties. It protects
property rights and prevents spiteful actions. Please vote YES.; Jeff Carr, Self: We need full disclosure; Daniel Stasi,
Self: Terms in this bill can be interpreted differently. Being "spiteful" will be seen by one side as just being fair and
by the other side as unfair.; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ: Neutral with the
Weninger Amendment

HB2429, vacation rentals; short-term rentals; occupancy

Support:

Kathryn Senseman, City Of Sedona; Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Theresa Prichard,
representing self; Paul Davenport, representing self; Carol Rohe, representing self; Tom Farley, Arizona Association
Of Realtors, AIRBNB, INC; Sandra Stark, representing self; Michael Racy, Lobbyist, PIMA COUNTY; Dave Long,
representing self; Janie Hydrick, representing self; Mayor Robyn Prud'homme-Bauer, Clarkdale, representing self;
Judith Simons, representing self; Dwight Kadar, representing self; Andrea Kadar, representing self; Mary Pradelt,
representing self; Karen Kruse, COCONINO COUNTY; Sandra Kravetz, representing self; Marguerite Chaikin,
representing self; Rebecca Smith Gross, representing self; Peggie Jo Vincent, representing self; Henne Queisser,
representing self; Kevin Brown, representing self; Opal Wagner, representing self; Jeanne Casteen, representing
self; Mary Ann Graffagnino, representing self; David Higuera, representing self; Lisa Olson, representing self;
Christina Mollica, representing self; Dianne Post, representing self; Alice Stambaugh, representing self; Cynthia
Couture, representing self; Sherrilynn James, representing self; Diana Roy, representing self; jacqueline Johnson,
representing self; Michele Smith, representing self; Elizabeth Schauer, representing self; Gail Kamaras,
representing self; Charlie Silver, representing self; Susan Morris, representing self; Brent Gibbs, representing self;
Sally Harvey, representing self; Robin LaVoie, representing self; Julie Golding, representing self; Linda Schwartz,
representing self; Brenda Nelson, representing self; Christine Keitges, representing self; Beverlee Loat,
representing self; Chris Senko, representing self; Linda Edwards, representing self; Jeri Dow, representing self;
Mary Martiniak, representing self; Allen Carlson, representing self; Katherine Lathrop, representing self; Janet Senf,
representing self; Michelle Winker, representing self; Kathy Pyner, representing self; Joan Murphy, representing
self; Judy Walruff, representing self; Penny Boone, representing self; Ralph Meredith, representing self; Gayle
Meredith, representing self; Valerie Policastro Edie, representing self; Vera Markgraf, representing self; Amy
Etzkorn, representing self; Mariette Francis, representing self; Kathleen Dubbs, representing self; Margaret DeVries,
representing self; Mary-Jeanne Fincher, representing self; Matthew Nelson, representing self; Francesca Pardes,
representing self; Glenn Sollers, representing self; Roxanna Kearns, representing self; William S. James,
representing self; Jo Ann Caruthers, representing self; Eileen Goldman, representing self; Edna Weigel,
representing self; Mary Ganapol, representing self; Steve Gorman-Hackstadt, representing self; Carolyn Watson,
representing self; Rebecca Haynes, representing self; Mary Nelson, representing self; Kristen Abrahamson,
representing self; Bart James, representing self; Saher Afzal, representing self; Bonnie Oakes, representing self;
Cassandra Morano, representing self; Karen Peterson, representing self; Ann Johnson, representing self; Fred
Miller, representing self; Emily Norton, representing self; Kathryn Anderson, representing self; Charlotte Lis,
representing self; William Yohey, representing self; Elizabeth Brauer, representing self; Mary Gaudio, representing
self; Dee Maitland, representing self; Barbara Larson, representing self; Carol Garnett, representing self; Jennifer
Dawson, representing self; Sandra Rizzo, representing self; Linda Block, representing self; Paula Van Derven,
representing self; Amy Gaiennie, representing self; Jean Meconi, representing self; Allison Jackson, representing
self; Mary Keerins, representing self; Cynthia Wagner, representing self; Nadine Smith, representing self; Nancy
Hancock, representing self; Kathleen Schanus-Gohl, representing self; Nelson Morgan, representing self; Joseph
Alexander, representing self; Roger Blain, representing self; Donna Corbin, representing self; Alicia Vaughan,
representing self; Angela Buer, representing self; Gail Graves, representing self; Kat Ginzel, representing self;
Charmaine Roth, representing self; Margaret Tinsley, representing self; Traci Garcia, representing self; John
Raeder, BUCKEYE, CITY OF; Lisa Maczura, representing self; Jacqueline deSa, representing self; Michael Tarek,
representing self; Jennifer Horne, representing self; Sarah Giles, representing self; Carol Campbell, representing
self; Alicia Messing, representing self; Greg Olszta, representing self; Eden Winget, representing self; Eric Kadel,
representing self; Frederick James, representing self; Susan Ordway, representing self; Marilyn Murov,
representing self; Felisa Gilley, representing self; Suzanne Zimmerman, representing self; Mitchell Smith,
representing self; Patty Goldsmith, representing self; Libby Stortz, representing self; Karen Brown, representing
self; Salie Travis, representing self; Christopher Cerrato, representing self; Devon Sloan, representing self; Rivko
Knox, representing self; Ann Lebert, representing self; Coconino County Supervisor Tammy Ontiveros, representing
self; STACEY NORDWALL, representing self; Pamela Chittenden, representing self; Deborah Anderson, representing
self; Remy Sinclair, representing self; Leonora Midgley, representing self; Barbara Lucas, representing self; Susan
Ashley , representing self; Steven Esposito, representing self; Kathleen Butler, representing self; Terri Farneti,
representing self; Caroline Esmond, representing self; Patricia Brunner, representing self; Susan Matheson,
representing self; Zinah Burke, representing self; Allen Brown, representing self; Dieter Knecht, representing self;
Sundrop Carter, representing self; Kristan Larson, representing self; Jerrold Borchardt, representing self; Danielle
Hedegard, representing self; Bridget Clark-Cooper, representing self; John Cummings, representing self; Jillian Ryan,
representing self; Coconino County Supervisor Patrice Horstman, representing self; Marcia Tingley, representing
self; Donna Rugg, representing self; Amy Licht, representing self; Tiffany Hall, representing self; Amy Gosla,
representing self; Garyh Rulapaugh, representing self; Jonathan Brechner, representing self; Janie Smieszek,
representing self; Marcella Deluca, representing self; Donna Jones, representing self; Kymberli Ricks-
WhiteColbourne, representing self; Christa Trexler, representing self; marcia stewart, representing self; Theresa
Ryan, representing self; Ruth Porter-Tilman, representing self; James Roth, representing self; Patricia Poe,
representing self; Sara Isett, representing self; Jan Allen, representing self; Janet Lewis-Weaver, representing self;
Linda Meerow, representing self; Valarie Bryant, representing self; Aaron Essif, representing self; Paige Spencer,
representing self; Julia Allison, representing self; Claudia Yeager-Smith, representing self; JoAnn McCay,
representing self; JOHN FIENE, representing self; Clarissa Vela, representing self; Chris Hill, representing self;
William Bowlus-Root, representing self; Sue Diaz, representing self; Melinda Bell, representing self; Nadya Laliberte,
representing self; Barbara Jones, representing self; Sally Evans, representing self; Kathleen Woessner, representing
self; Ken Jones, representing self; Lisa Koenig, representing self; Roy L Carrington Jr., representing self; Cheryl
Benefield, representing self; Mary Pena, representing self; Leigh Marino, City Of Cottonwood; Karen Perry,
representing self; Christine Cielens, representing self; Michele Parent, representing self; RITA DEPUYDT,
representing self; Barbara Rodman, representing self; NEIGHBORHOOD COALITION OF GREATER PHOENIX,
representing self; lore dickey, representing self; Jeanmarie Haney, representing self; Kayla Lundquist, representing
self; Coconino County Supervisor Jeronimo Vasquez, representing self; Kathryn Avila Hammond, representing self;
Erin Dahl, representing self; Sery Johnson, representing self; Jane Johnson, representing self; Melissa Boyle,
representing self; Susan Bowen, representing self; Mary Rose, representing self; Dara Marks-Marino, representing
self; Dimitrios Gockel, representing self; Deirdre MacDonald, representing self; Gina Gral, representing self;
Carolyn Drennan, representing self; Kathleen Sauer, representing self; Margaret Babbitt-Pierce, representing self;
JD Butler, ARIZONA LODGING AND TOURISM ASSOCIATION; Jackie Rich, representing self; Sarah Grossman,
representing self; Michelle Lerman, representing self; Margie Gomez, representing self; Kathryn Dorn, representing
self; Kristin White, representing self; Benjamin Cromwell, representing self; Jessie Kline Loganbill, representing self;
Stephen Flaaen, representing self; Sara Sparman, "SCOTTSDALE, CITY OF "; Amy Tremper, representing self; Marin
Lersch, representing self; Alison Danis, representing self; Lisa Wayman, representing self

Neutral:
Susan Edwards, representing self

Oppose:

Martha O'Connor, representing self; Beverly Janowitz-Price, representing self; Judith Lohr, representing self; Wego
All, representing self; Alisa McMahon, representing self; Michael Fiflis, representing self; Victoria Bacs,
representing self

All Comments:

Theresa Prichard, Self: Local control of the short term rentals in our communities is much needed.; Paul Davenport,
Self: | support the original bill. Communities need to be able to limit the number of STRs. The striker is helpful but
falls short of what communities need.. With the striker, this bill falls are short of what is needed. .; Janie Hydrick,
Self: "Locals" such as cities and counties know better when and how to regulate local short-term and vacation
rentals.; Dwight Kadar, Self: The quality of life for Sedona residences is suffering because of STR's. Give us local
control.; Andrea Kadar, Self: The quality of life for Sedona residences is suffering because of STR's. Give us local
control.; Marguerite Chaikin, Self: Cities and Towns need to have sway over the proportion of STR homes in the
mix of housing options to maintain community cohesion.; Mary Ann Graffagnino, Self: Very much needed.; David
Higuera, Self: It's about local control. Cities and counties are in the best position to determine whether and how
short-term rentals should be regulated in their communities. This would give them that authority. Govt closest to
the people is best.; Lisa Olson, Self: The GOP-led legislature allowed for excessive rental properties in 2016, which
has led to gentrification. Sedona is an example of the negative impact of pricing out everyday residents and driving
a housing emergency. We must address this. | support!; Brenda Nelson, Self: This legislation addresses short-term
& vacation rentals and fix the harms caused by banning local regulation. SUPPORT; Linda Edwards, Self: Local
regulation is the only way to go.; Penny Boone, Self: Cities and counties need to be able to regulate the number of
short-term and vacation rentals; Valerie Policastro Edie, Self: this is becoming a huge issue in Pima county;
Kathleen Dubbs, Self: Local rule!; Francesca Pardes, Self: By allowing cities & counties to limit the number of short-
term rentals by capping permits or licenses or requiring minimum distance requirements would certainly help
everyday AZ residents’ ability to find affordable housing for their families.; Roxanna Kearns, Self: Allow cities and
counties to limit the number of short-term and vacation rentals by capping permits or licenses or by establishing
minimum distance requirements.; Carolyn Watson, Self: Please vote yes on this bill, allowing cities to maintain
some local contol for vacation rentals. Unbridled vacation rentals have blown the housing market into a direction
no one can afford. Thank you.; Rebecca Haynes, Self: The grandfather clause is still problematic, but the legislature
must address the harms they caused by banning local regulation, and you have to start somewhere.; Kristen
Abrahamson, Self: | agree - these short term rentals are pricing our residents out of access to reasonable rents and
affordable housing.; Fred Miller, Self: Good legislation.; Elizabeth Brauer, Self: There needs to be limits on short
term rentals, which are a waste of housing resources; Mary Gaudio, Self: STRs are out of control; cities and towns
must be able to regulate the bad actors. Vote YES!; Barbara Larson, Self: comment; Carol Garnett, Self: Short term
rentals are taking homes from local employees. It should be regulated locally.; Sandra Rizzo, Self: Cities need this
for stability.; Amy Gaiennie, Self: | strongly support a bill that allows cities and counties to regulate the number of
short-term and vacation rentals.; Mary Keerins, Self: Allow cities and counties to regulate the number of short-
term and vacation rentals. Local regulation makes sense; Angela Buer, Self: The GOP-led legislature allowed for
excessive rental properties in 2016, which has led to gentrification. Sedona is an example of the negative impact of
pricing out everyday residents and driving a housing emergency. We must address this. | support!; Margaret
Tinsley, Self: This is an issue that should be subject to local control. Please vote yes.; Lisa Maczura, Self: Keep
regulation local. Locals know.; Jacqueline deSa, Self: Regulation of short term and vacation rentals is a good step in
the right direction; Susan Ordway, Self: Not allowing local communities to limit the number of short term rentals
has, in some communities, priced local residents out of the market. This is unfair, and needs to change.; Salie
Travis, Self: It is time to allow cities and counties to limit the number of short-term and vacation rentals. Sedona is
one example of the state's overreach in this case; allowing workers to sleep in cars is ridiculous. Support.; Martha
O'Connor, Self: Harms local regulation; Allen Brown, Self: | support HB 2429. Short term rentals have helped to
price the average person out of home ownership. Allowing cities and counties to limit short term vacation rentals
fixes a problem that was previously created by the Arizona legislature.; Jerrold Borchardt, Self: In 2016 the
legislature banned local regulation, which adversely affected the housing market. This bill will address some of the
harms caused by that 2016 bill. | don't like it, but | SUPPORT this bill.; Bridget Clark-Cooper, Self: It's important to
keep control of the rules for the # of short term & vacation rentals in the local city or county. Local regulation is
CRITICAL!; Jillian Ryan, Self: We aren't happy about the grandfather clause, but the legislature must address the
harms they caused by banning local regulation, and they have to start somewhere; Marcia Tingley, Self: Limiting
cities’ ability to regulate short-term rentals created a crisis for the AZ housing market, often pricing out residents.
Local regulation would help alleviate this housing crisis.; Jonathan Brechner, Self: Makes sense regarding rentals.;
Janie Smieszek, Self: Counties should have the power to regulate the number of rentals; marcia stewart, Self:
Guardrails are needed for this out of control industry; James Roth, Self: Protects homeowners from public nuisance
that reduces property values; Patricia Poe, Self: Please vote for this bill. Cities and counties bear the brundt health,
safety & law enforcement related to short-term rentals. They should at least be able to limit the number in their
jurisdictions. Thank you.; Sara Isett, Self: Good policy that will help alleviate the housing shortage.; Aaron Essif,
Self: Good bill; JOHN FIENE, Self: My wife and | are surrounded by short-term rentals in Sedona. We have no
neighbors; we have no street parking, and dangerous ingress and egress on party weekends. Please limit STRs! LD1
voter; William Bowlus-Root, Self: This makes good sense.; Mary Pena, Self: The legislature must address the harms
they caused by banning local regulation; Christine Cielens, Self: Yes regulate vac and short term rentals; Wego All,
Self: proposed section 11a) ESTABLISHING MAX # OF VACA/SHORT-TERM RENTAL REGULATORY PERMITS
restricting private property rights big time through the issuance of permits and is a slippery slope for other issues
like well permits, and water service permits.; RITA DEPUYDT, Self: Cities and counties should have more control
over STRs.; NEIGHBORHOOD COALITION OF GREATER PHOENIX, Self: HB2429 provides common-sense guardrails
that protect neighborhood quality of life while maintaining property rights. It doesn't ban short-term rentals or
harm Arizona's tourism economy. It strengthens safety protections for Arizona neighborhoods.; Jeanmarie Haney,
Self: Life as | knew it was ruined by runaway STRs. We had to sell, as over 1/2 of our neighborhood converted to
STRs with 2am noise and fights and no local entity to call. Police were often called. Return control and regulation
of STRs to the locals!; Kathryn Avila Hammond, Self: cities and counties must have the ability to regulate short
term rentals, to assure available housing for workers who keep the economy running.; Erin Dahl, Self: | am in
support of the bill allowing cities and counties to regulate the number of short-term and vacation rentals.; Alisa
McMahon, Self: S/E: | supported the introduced bill even though it was far too little, far too late. The striker
doesn’t begin to scratch the surface of the reforms needed to correct the STR mess created by the legislature.;
Susan Bowen, Self: 20% OF SEDONA HOMES ARE NOW SHORT-TERM RENTALS DRIVING A HOUSING EMERGENCY
THAT HAS THE CITY SCRAMBLING WITH DRASTIC MEASURES LIKE CREATING A PROGRAM THAT ALLOWS WORKERS
TO SLEEP IN THEIR CARS. NOT HAPPY ABOUT GRANDFATHERING - HAVE TO START SOMEWHER; Deirdre
MacDonald, Self: This is a problem in my neighborhood in Yuma where 4 houses out of 15 on our cul-de-sac are
short-term and vacation rentals.; Jackie Rich, Self: Thank you for hearing and supporting this bill which would help
control dangerous party houses in short term rentals. Please also give regulation authority of STRs back to local
governments. STR problems are local and not statewide.; Michelle Lerman, Self: Cities and counties should
regulate the number of short-term and vacation rentals in their communities.; Michael Fiflis, Self: S/E: | would have
supported the introduced bill, but cannot support the striker as it does nothing to solve the STR crisis.; Victoria
Bacs, Self: Building code violation language far to generic Sex offender required background check requirement is
irrational- what hotel has this requirement? Occupancy requirements are FAR more restrictive than hotels? WHY?
4 adults can sleep in hotel rooms!?!; Margie Gomez, Self: The GOP-led legislature allowed for excessive rental
properties in 2016, which has led to gentrification. Sedona is an example of the negative impact of pricing out
everyday residents and driving a housing emergency. We must address this. SUPPORT; Susan Edwards, Self: 90% of
AZ's STRs are illegal w/o TPT licenses. The ad rules deleted by the striker encourage that to continue, along
w/cities' inability to enforce occupancy. Taking away ability to control density will create more "neighborless
neighborhoods"; Kristin White, Self: Anything to help cities control the housing crisis is welcome news.; Stephen
Flaaen, Self: Yes for local control over the regulation of short-term rentals.; Sara Sparman, "SCOTTSDALE, CITY OF
": Support the strike everything amendment.

HB2591, apprenticeships; registration; certificate

Support:
Barry M. Aarons, CONSTRUCTION TRADES COALITION; Beverly Janowitz-Price, representing self; Bonnie Eckard,
representing self; Shawn Hutchinson, representing self; Judith Lohr, representing self

Neutral:
Kathy Ber, DES Director of Legislative Services, Arizona Department Of Economic Security

All Comments:

Bonnie Eckard, Self: Avoid passive renewals; Shawn Hutchinson, Self: True apprenticeship training must be clearly
defined so prospective candidates fully understand the scope, expectations, and long-term career outcomes of the
training they are entering.
HB2680, worker's compensation; notice; fraud: commission

Support:
Mark Cardenas, CARPENTERS UNION LOCAL 1912

Neutral:
Charles Carpenter, INDUSTRIAL COMMISSION OF AZ

HB2834, claims against HOAs; filing fees

Support:

Annette Cohen, representing self; Dennis J Legere, ARIZONA HOMEOWNERS COALITION; Harold Bergsma,
representing self; Linda Ross, representing self; Melanie Teixeira, representing self; Lisa Marx, representing self;
Pierre Desombre, representing self; Raymond Wasson, representing self; Kathleen Harden-Wasson, representing
self; deana corsa, representing self; Irene Smith, representing self; Teresa Pinter, representing self; Clare Scarpulla,
representing self; Marcia Tolin, representing self; Julia Abston, representing self; Denise Priddy, representing self;
Leo Brown, representing self; Henry Schubel, representing self; Kathryn Kendall, representing self; Jeff Carr,
representing self; Ann Friday, representing self; Larry Springer, representing self

Oppose:
Lynelle Glysson, representing self; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

All Comments:

Annette Cohen, Self: Dennis Legere to represent me at the committee meeting; Dennis J Legere, ARIZONA
HOMEOWNERS COALITION: The dispute resolution process was always intended as a lower-cost alternative to civil
litigation to enforce the laws and governing documents of these communities. But that fee is set by the ADRE rule
at $500 per issue, which is unreasonable.; Clare Scarpulla, Self: The cost of $500 reduced to $300 helps those who
need to challenge their HOA Boards in the Dispute Resolution Process.; Denise Priddy, Self: The ADRE dispute
resolution process for owners in an HOA is our only tool to enforce the law without extremely costly litigation. The
$500 per issue filing fee is a deterrence to use this process to ensure the HOA follows the law. $300 is reasonable.;
Jeff Carr, Self: Common sense legislation; Ann Friday, Self: | have experienced events in which the HOA exceeded
their authority to impose new regs outside of our CCR's or held "emergency" email voting meetings without proper
notice or subsequent minutes. The $500 filing fee discouraged me from using ADRE.; Larry Springer, Self: This fee
is too high per issue and discourages members from filing. They feel defeated before starting.; Spencer Kamps,
HOME BUILDERS ASSOCIATION OF CENTRAL AZ: Neutral with Weninger or Carter amendment

HB2868, installation license; insurance; rules

Support:

Rivko Knox, representing self
HB2911, registrar of contractors; restitution: repeal

Support:
JOHN FIENE, representing self

Oppose:

Glenn Sollers, representing self; Stephen Flaaen, representing self; Dave Long, representing self; Janie Hydrick,
representing self; Judith Simons, representing self; Mary Pradelt, representing self; Sandra Kravetz, representing
self; Rebecca Smith Gross, representing self; Kevin Brown, representing self; Beverly Janowitz-Price, representing
self; Anita Mosesman, representing self; Jeanne Casteen, representing self; Alisa McMahon, representing self; Lisa
Olson, representing self; Michael Fiflis, representing self; Claudia Bloom, representing self; Dianne Post,
representing self; Cynthia Couture, representing self; Sherrilynn James, representing self; jacqueline Johnson,
representing self; Elizabeth Schauer, representing self; Gail Kamaras, representing self; Charlie Silver, representing
self; Susan Morris, representing self; Brent Gibbs, representing self; Sally Harvey, representing self; Julie Golding,
representing self; Brenda Nelson, representing self; Beverlee Loat, representing self; Chris Senko, representing self;
Linda Edwards, representing self; Jeri Dow, representing self; Mary Martiniak, representing self; Katherine Lathrop,
representing self; Janet Senf, representing self; Kathy Pyner, representing self; Joan Murphy, representing self;
Penny Boone, representing self; Ralph Meredith, representing self; Gayle Meredith, representing self; Amy Etzkorn,
representing self; Mariette Francis, representing self; Martha O'Connor, representing self; Kathleen Dubbs,
representing self; Mary-Jeanne Fincher, representing self; Matthew Nelson, representing self; Francesca Pardes,
representing self; Roxanna Kearns, representing self; William S. James, representing self; Jo Ann Caruthers,
representing self; Edna Weigel, representing self; Mary Ganapol, representing self; Steve Gorman-Hackstadt,
representing self; Carolyn Watson, representing self; Rebecca Haynes, representing self; Mary Nelson,
representing self; Bart James, representing self; Saher Afzal, representing self; Bonnie Oakes, representing self;
Cassandra Morano, representing self; Ann Johnson, representing self; Fred Miller, representing self; Kathryn
Anderson, representing self; Charlotte Lis, representing self; William Yohey, representing self; Mary Gaudio,
representing self; Dee Maitland, representing self; Barbara Larson, representing self; Carol Garnett, representing
self; Jennifer Dawson, representing self; Sandra Rizzo, representing self; Linda Block, representing self; Paula Van
Derven, representing self; Amy Gaiennie, representing self; Jean Meconi, representing self; Allison Jackson,
representing self; ALICE BUCK, representing self; Mary Keerins, representing self; Cynthia Wagner, representing
self; Nancy Hancock, representing self; Kathleen Schanus-Gohl, representing self; Chrisie Gilbert, representing self;
Nelson Morgan, representing self; Linda Paul, representing self; Donna Corbin, representing self; Angela Buer,
representing self; Gail Graves, representing self; Kat Ginzel, representing self; Margaret Tinsley, representing self;
Traci Garcia, representing self; Jacqueline deSa, representing self; William Bowlus-Root, representing self; Susan
Matheson, representing self; Jerrold Borchardt, representing self; marcia stewart, representing self; Marilyn Murov,
representing self; Frederick James, representing self; Marcia Tingley, representing self; Kathleen Butler,
representing self; Theresa Ryan, representing self; RITA DEPUYDT, representing self; Christopher Cerrato,
representing self; Kathleen Sauer, representing self; Aaron Essif, representing self; Lisa Maczura, representing self;
Susan Ordway, representing self; Kathleen Woessner, representing self; Kristan Larson, representing self; Barbara
Jones, representing self; Alicia Messing, representing self; Michael Tarek, representing self; Theresa Prichard,
representing self; Dieter Knecht, representing self; Carol Campbell, representing self; Bridget Clark-Cooper,
representing self; Erin Dahl, representing self; Libby Stortz, representing self; Remy Sinclair, representing self;
Patricia Brunner, representing self; Devon Sloan, representing self; Jennifer Horne, representing self; Eden Winget,
representing self; Eric Kadel, representing self; Suzanne Zimmerman, representing self; Mitchell Smith,
representing self; Karen Brown, representing self; Felisa Gilley, representing self; Salie Travis, representing self;
Ann Lebert, representing self; Rivko Knox, representing self; STACEY NORDWALL, representing self; Pamela
Chittenden, representing self; Leonora Midgley, representing self; Sharon Arnst, representing self; Barbara Lucas,
representing self; Zinah Burke, representing self; Jillian Ryan, representing self; Caroline Esmond, representing self;
John Cummings, representing self; Pam Spicer, representing self; Carol Rohe, representing self; Donna Rugg,
representing self; Garyh Rulapaugh, representing self; Marcella Deluca, representing self; Christa Trexler,
representing self; Greg Olszta, representing self; Janet Lewis-Weaver, representing self; Steven Esposito,
representing self; Sara Isett, representing self; Valarie Bryant, representing self; Julia Allison, representing self;
Claudia Yeager-Smith, representing self; JoAnn McCay, representing self; Kymberli Ricks-WhiteColbourne,
representing self; Sue Diaz, representing self; Jonathan Brechner, representing self; Ken Jones, representing self;
Lisa Koenig, representing self; Roy L Carrington Jr., representing self; Mary Pena, representing self; Cheryl
Benefield, representing self; Allen Brown, representing self; Kathryn Avila Hammond, representing self; Mike
Kunnecke, representing self; Sery Johnson, representing self; Melissa Boyle, representing self; Susan Bowen,
representing self; Alison Danis, representing self; Mary Rose, representing self; Melinda Bell, representing self;
Gina Gral, representing self; Carolyn Drennan, representing self; Michelle Lerman, representing self; Nadya
Laliberte, representing self; Margie Gomez, representing self; Kathryn Dorn, representing self; Jane Johnson,
representing self; Jessie Kline Loganbill, representing self; Kristin White, representing self; Marin Lersch,
representing self

All Comments:

JOHN FIENE, Self: We live next to a house that has been under demolition and construction for 3 years. The owners
have been cheated by two general contractors. With the latest abandonment, we have to view the mess every day.
Punish the cheaters! LD1 voter; Glenn Sollers, Self: Getting reimbursed from this fund is a labyrinthine process that
can take years; even if a homeowner is entitled to a claim, there must be money in the fund for them to receive a
payout. This bill is an attack on consumer protection.; Stephen Flaaen, Self: Do not remove consumer protections!;
Judith Simons, Self: Homeowners deserve protection when contractors fail to uphold contract obligations. This bill
attacks that protection.; Alisa McMahon, Self: Terrible idea. The statute that would be repealed incentivizes
contractors to perform their work properly. It also provides one of the few recourses consumers have against
irresponsible entities in an industry we all deal with.; Michael Fiflis, Self: Removing one of the key tools available to
get work done to minimum standards by the class of contractors for which those tolls are needed will only
encourage non-compliance. | see the need for it over and over with my clients who have work done.; Charlie Silver,
Self: Not holding the responsible party responsible. Really?; Susan Morris, Self: Why should contractors who do
lousy work not be held accountable?; Brenda Nelson, Self: This proposed legislation attacks consumer protections.
OPPOSE; Chris Senko, Self: It's about accountability.; Linda Edwards, Self: Is the bill's sponsor linked to a
contractor?; Jeri Dow, Self: this bill is an attack on consumer protection; Kathy Pyner, Self: Contractors must be
held accountable; Penny Boone, Self: NO! This bill is an attack on consumer protection; Martha O'Connor, Self: This
bill is an attack on consumer protection.; Kathleen Dubbs, Self: So we don't want consumers to be protected from
scams and shoddy work?; Francesca Pardes, Self: This bill is an attack on consumer protection. Now, homeowners
can file an administrative claim against a recovery fund that contractors pay into at licensing,to provide restitution
for work not one or defective. with this bill they have no recourse.; Roxanna Kearns, Self: This bill is an attack on
consumer protection. Licensed contractors must provide restitution to homeowners if they abandon residential
contracts or do work so shoddy it constitutes grounds to suspend their license.; Carolyn Watson, Self: Please vote
"no" on this bill and allow consumer protection from dishonest/shoddy contractors to remain in place. Thank you.;
Rebecca Haynes, Self: This bill is an attack on consumer protection.; Mary Gaudio, Self: Protect AZ consumers, not
contractors.; Carol Garnett, Self: Homeowners should be able to file these claims.; Jennifer Dawson, Self: an attack
on consumer protection.; Sandra Rizzo, Self: | can't believe how anti-consumer protection some lawmakers are! OF
COURSE this should not pass, as many people are bilked without an adequate means of compensation. Do not pass
this bill.; Amy Gaiennie, Self: | strongly oppose this bill.; Jean Meconi, Self: Consumers are already under protected

10
from shoddy and incomplete workmanship. | had to have a bathroom remodel completed redone due to shoddy
workmanship, so ended up paying twice for the same job.; Mary Keerins, Self: Do you have a fly-by-night
contractor friend? This bill is an attack on consumer protection.; Chrisie Gilbert, Self: This is a terrible idea. ROC
would lose one of its tools to require contractors to pay back victims through the administrative process.
Homeowners would likely have to go to court instead. Removing that option shifts more burden onto
homeowners.; Donna Corbin, Self: This is an attack on consumer protections.; Angela Buer, Self: This bill is an
attack on Arizona homeowners. By repealing the Registrar of Contractors' authority to order restitution, this bill
leaves families with no recourse against shoddy work or abandoned contracts. We must protect consumers. |
OPPOSE.; Margaret Tinsley, Self: This bill is an attack on Arizona consumers, also known as voters and constituents.
The only ones to be helped are shoddy and dishonest contractors. Please vote no.; Jacqueline deSa, Self: | was one
who suffered after a licensed contractor took my money and ran. Got NO help from the contractors' Registrar.
Definitely NO on this one.; Jerrold Borchardt, Self: This bill is an attack on consumer protection. OPPOSED!!;
Marilyn Murov, Self: Consumers need reliable, easy to access protection from shoddy or incomplete work.; Marcia
Tingley, Self: Currently, aggrieved homeowners can file an administrative claim, but reimbursement through this
process can take years. This bill is an attack on consumer protection. Strongly oppose.; Theresa Ryan, Self: This bill
is an attack on consumer protection.; Christopher Cerrato, Self: This bill is an attack on consumer protections;
Aaron Essif, Self: This is an attack on consumer protection.; Susan Ordway, Self: This bill is an attack on consumer
protection.; Michael Tarek, Self: This bill is an attack on consumer protection.; Theresa Prichard, Self: Why? A
proposal to protect contractors and limits the rights of the consumer. Why?; Bridget Clark-Cooper, Self: It's critical
that homeowners can file an administrative claim against a contractor who provided shoddy work or abandoned
the job completely. This is consumer protection. TV shows (Holmes "Make it Right") show real life not covered by
this fund.; Erin Dahl, Self: | oppose the bill that would repeal the Registrar of Contractors’ ability to order licensed
contractors to provide restitution to homeowners if they abandon residential contracts or do work so shoddy it
constitutes grounds to suspend their license.; Karen Brown, Self: Homeowners must have some means of holding
contractors accountable and be able to receive compensation for poor workmanship.; Felisa Gilley, Self: This bill is
an attack on consumer protection.,; Salie Travis, Self: Oh, hell, NO! Consumers don't have enough problems finding
honest contractors who do good work and now we want to remove any protections for shoddy work/workers?
Arizona could become a haven for contractor fraud! What could go wrong? Oppose!; Barbara Lucas, Self: This bill is
an attack on consumer protection; Jillian Ryan, Self: This bill is an attack on consumer protection.; Greg Olszta, Self:
This bill is an attack on consumer protection.; Sara Isett, Self: This bill is an attack on consumer protection.; Claudia
Yeager-Smith, Self: This bill is an attack on consumer protection in so many ways. STRONGLY OPPOSE!!!!; Sue Diaz,
Self: Licensed contractors should pay restitution for inferior work.; Jonathan Brechner, Self: Why wouldn't we want
to protect homeowners against poor work and attack contractors who are at fault?; Mary Pena, Self: This bill is an
attack on consumer protection.; Allen Brown, Self: | oppose HB2911. This bill strips any safeguards that consumers
have for restitution for shoddy workmanship by a contractor.; Kathryn Avila Hammond, Self: this bill is an attack on
consumer protection. Homeowners deserve to be protected from dishonest and shoddy construction; Susan
Bowen, Self: GETTING REIMBURSE FROM THIS FUND IS A LABYRINTHINE PROCESS THAT CAN TAKE YEARS. THIS BILL
IS AN ATTACK ON CONSUMER PROTECTION.; Michelle Lerman, Self: Protect consumers seeking refunds for
defective workmanship.; Margie Gomez, Self: This bill is an attack on Arizona homeowners. By repealing the
Registrar of Contractors‘ authority to order restitution, this bill leaves families with no recourse against shoddy
work or abandoned contracts. We must protect consumers. OPPOSE; Kathryn Dorn, Self: Why exactly would the
Legislature offer this legal and financial shield to contractors who effectively break their contracts with
homeowners, rather than protecting the injured homeowners?; Marin Lersch, Self: This strips away consumer
protection designed to protect homeowners from poor workmanship.

11
HB2951, automatic subscription renewals; contracts; requirements

Support:

Marguerite Chaikin, representing self; Theresa Prichard, representing self; Sandra Stark, representing self; Michelle
Lerman, representing self; Dave Long, representing self; Janie Hydrick, representing self; Judith Simons,
representing self; Mary Pradelt, representing self; Janet Larkin, representing self; Sandra Kravetz, representing self;
Rebecca Smith Gross, representing self; Henne Queisser, representing self; Maria Salvucci, representing self; Kevin
Brown, representing self; Beverly Janowitz-Price, representing self; Anita Mosesman, representing self; Jeanne
Casteen, representing self; Mary Ann Graffagnino, representing self; David Higuera, representing self; Laurie Stoff,
representing self; Lisa Olson, representing self; Michael Fiflis, representing self; Claudia Bloom, representing self;
Christina Mollica, representing self; Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Alice
Stambaugh, representing self; Cynthia Couture, representing self; Sherrilynn James, representing self; Diana Roy,
representing self; jacqueline Johnson, representing self; James Scheid, representing self; Elizabeth Schauer,
representing self; Gail Kamaras, representing self; Charlie Silver, representing self; Becky Sayler, representing self;
Susan Morris, representing self; Brent Gibbs, representing self; Sally Harvey, representing self; Robin LaVoie,
representing self; Julie Golding, representing self; Linda Schwartz, representing self; Brenda Nelson, representing
self; Christine Keitges, representing self; Chris Senko, representing self; Bobbie Howard, representing self; Linda
Edwards, representing self; Jeri Dow, representing self; Mary Martiniak, representing self; Allen Carlson,
representing self; Gail Block, representing self; Katherine Lathrop, representing self; Janet Senf, representing self;
Kathy Pyner, representing self; Tess Calvert, representing self; Joan Murphy, representing self; Penny Boone,
representing self; Ralph Meredith, representing self; Gayle Meredith, representing self; Valerie Policastro Edie,
representing self; Vera Markgraf, representing self; Amy Etzkorn, representing self; Martha O'Connor, representing
self; Kathleen Dubbs, representing self; Margaret DeVries, representing self; Mary-Jeanne Fincher, representing
self; Matthew Nelson, representing self; Glenn Sollers, representing self; Roxanna Kearns, representing self; Edna
Weigel, representing self; Mary Ganapol, representing self; Steve Gorman-Hackstadt, representing self; Rebecca
Haynes, representing self; Mary Nelson, representing self; Kristen Abrahamson, representing self; Bart James,
representing self; Saher Afzal, representing self; Bonnie Oakes, representing self; Cassandra Morano, representing
self; Karen Peterson, representing self; Ann Johnson, representing self; Fred Miller, representing self; Emily Norton,
representing self; Kathryn Anderson, representing self; Charlotte Lis, representing self; William Yohey,
representing self; Mary Gaudio, representing self; Dee Maitland, representing self; Barbara Larson, representing
self; Carol Garnett, representing self; Jennifer Dawson, representing self; Sandra Rizzo, representing self; Linda
Block, representing self; Katie Rice, representing self; Paula Van Derven, representing self; Amy Gaiennie,
representing self; Jean Meconi, representing self; Allison Jackson, representing self; Harold Bergsma, representing
self; ALICE BUCK, representing self; Mary Keerins, representing self; Cynthia Wagner, representing self; Nancy
Hancock, representing self; Kathleen Schanus-Gohl, representing self; Nelson Morgan, representing self; Judith
Lohr, representing self; Karen Robbins, representing self; Joseph Alexander, representing self; Linda Paul,
representing self; Roger Blain, representing self; Donna Corbin, representing self; Alicia Vaughan, representing self;
Angela Buer, representing self; Gail Graves, representing self; Kat Ginzel, representing self; Margaret Tinsley,
representing self; Traci Garcia, representing self; Jacqueline deSa, representing self; William Bowlus-Root,
representing self; Susan Matheson, representing self; Jerrold Borchardt, representing self; marcia stewart,
representing self; Kymberli Ricks-WhiteColbourne, representing self; Karen Weihs, representing self; Rivko Knox,
representing self; Lisa Maczura, representing self; Michael Tarek, representing self; Jennifer Horne, representing
self; Alicia Messing, representing self; Carol Campbell, representing self; Greg Olszta, representing self; Eden
Winget, representing self; Eric Kadel, representing self; Frederick James, representing self; Susan Ordway,
representing self; Suzanne Zimmerman, representing self; Libby Stortz, representing self; Patty Goldsmith,
representing self; Mitchell Smith, representing self; Karen Brown, representing self; Devon Sloan, representing self;

12
Christopher Cerrato, representing self; Salie Travis, representing self; STACEY NORDWALL, representing self;
Pamela Chittenden, representing self; Remy Sinclair, representing self; Leonora Midgley, representing self; Barbara
Lucas, representing self; Kathleen Butler, representing self; Susan Ashley , representing self; Steven Esposito,
representing self; Terri Farneti, representing self; Caroline Esmond, representing self; Patricia Brunner,
representing self; Zinah Burke, representing self; Dieter Knecht, representing self; Danielle Hedegard, representing
self; Kristan Larson, representing self; John Cummings, representing self; Jillian Ryan, representing self; Pam Spicer,
representing self; Carol Rohe, representing self; Bridget Clark-Cooper, representing self; Marcia Tingley,
representing self; Donna Rugg, representing self; Tiffany Hall, representing self; Amy Licht, representing self;
Salvatore Caputo, representing self; Amy Gosla, representing self; Garyh Rulapaugh, representing self; Jonathan
Brechner, representing self; Marcella Deluca, representing self; Janie Smieszek, representing self; Donna Jones,
representing self; Christa Trexler, representing self; Allen Brown, representing self; Alfred Pena, representing self;
Theresa Ryan, representing self; Patricia Poe, representing self; Sara Isett, representing self; Janet Lewis-Weaver,
representing self; Jan Allen, representing self; Valarie Bryant, representing self; Linda Meerow, representing self;
Aaron Essif, representing self; Denbie Nash, representing self; Paige Spencer, representing self; Julia Allison,
representing self; Claudia Yeager-Smith, representing self; JoAnn McCay, representing self; Clarissa Vela,
representing self; Chris Hill, representing self; Sue Diaz, representing self; Melinda Bell, representing self; Nadya
Laliberte, representing self; Barbara Jones, representing self; Sally Evans, representing self; Don Howard,
representing self; Kathleen Woessner, representing self; Ken Jones, representing self; Lisa Koenig, representing
self; Roy L Carrington Jr., representing self; Mike Kunnecke, representing self; Cheryl Benefield, representing self;
Mary Pena, representing self; Karen Perry, representing self; Michele Parent, representing self; RITA DEPUYDT,
representing self; Barbara Rodman, representing self; lore dickey, representing self; Kayla Lundquist, representing
self; Kathryn Avila Hammond, representing self; Erin Dahl, representing self; Sery Johnson, representing self;
Allison Newton, representing self; Jane Johnson, representing self; Melissa Boyle, representing self; Susan Bowen,
representing self; Mary Rose, representing self; Gina Gral, representing self; Dimitrios Gockel, representing self;
Carolyn Drennan, representing self; Kathleen Sauer, representing self; Sarah Grossman, representing self; Margie
Gomez, representing self; Kathryn Dorn, representing self; Kristin White, representing self; Benjamin Cromwell,
representing self; Jessie Kline Loganbill, representing self; Stephen Flaaen, representing self; Amy Tremper,
representing self; Lisa Wayman, representing self

Neutral:
Nadine Smith, representing self

Oppose:
Jo Ann Caruthers, representing self; Beverlee Loat, representing self; Craig McDermott, representing self; Michelle
Ahlmer, ARIZONA RETAILERS ASSOCIATION

All Comments:

Marguerite Chaikin, Self: Help protect consumers from predatory subscription contracts that can tap needed
income this is especially pertaining to seniors!; Theresa Prichard, Self: helpful to AZ consumers; Michelle Lerman,
Self: Protect consumers dealing with automatic subscription renewals.; Janie Hydrick, Self: We definitely need
consumer protection from automatic subscription renewals. Please pass this bill.; Janet Larkin, Self: Invariably
these scams hook those who can least afford it.; Mary Ann Graffagnino, Self: Great for the average consumer.;
David Higuera, Self: Yes, please! Corporations should not be allowed to trap us into automatically renewing
subscriptions that are difficult or impossible to cancel. This is basic consumer protection. Please vote YES.; Lisa
Olson, Self: We need consumer protections for automatic subscription renewals. | personally would like to be
refunded by companies that have sneakily renewed my subscription, without my consent. | support this bill!; Diana

13
Roy, Self: consumer protection!; Brenda Nelson, Self: SUPPORT this legislation protecting consumers.; Mary
Martiniak, Self: Thank you for looking out for us! This makes good sense!; Penny Boone, Self: Az consumers need
protections for automatic subscription renewals, for sure!; Valerie Policastro Edie, Self: Thank you; Martha
O'Connor, Self: Companies would have to clearly disclose renewal terms, allow consumers to opt in directly rather
than being passively renewed, and offer an easy cancellation mechanism.; Kathleen Dubbs, Self: People have been
taken in by this scam forever! Time to make it transparent; Roxanna Kearns, Self: Support this consumer friendly
bill. Companies would be required to clearly disclose renewal terms, allow consumers to opt in directly rather than
being passively renewed, and offer an easy cancellation mechanism.; Rebecca Haynes, Self: Companies would have
to clearly disclose renewal terms, allow consumers to opt in directly rather than being passively renewed, and
offer an easy cancellation mechanism. Protecting consumers is an excellent idea!; Kristen Abrahamson, Self: This is
much needed protection from automatic subscription renewals.; Bonnie Oakes, Self: Seniors thank sponsor for
greater consumer protection from being taken advantage of.; Fred Miller, Self: Give consumers transparency.;
Mary Gaudio, Self: Yes, those automatic subscription renewals get me every time!; Dee Maitland, Self: What a
great idea! Thanks!; Carol Garnett, Self: Many people end up paying for subscriptions they no longer use. This
would help.; Sandra Rizzo, Self: Very good move to protect consumers from exploitation in this economy - thank
you for working to support consumers in this state!; Amy Gaiennie, Self: | strongly support a bill that creates
consumer protections for automatic subscription renewals.; Mary Keerins, Self: Protect consumers - create
consumer protections for automatic subscription renewals; Karen Robbins, Self: Corporate automatic renewals are
a disservice to consumers! It should be consumers deciding whether to renew a subscription, NOT the
corporations.; Donna Corbin, Self: A good bill for consumer protections.; Angela Buer, Self: We need consumer
protections for automatic subscription renewals. | personally would like to be refunded by companies that have
sneakily renewed my subscription, without my consent. | support this bill!; Margaret Tinsley, Self: This would be so
beneficial for many Arizonans. Please vote yes.; Jacqueline deSa, Self: So pleased to see this bill. Seems we spend
so much time having to cancel automatic subscription renewals.; William Bowlus-Root, Self: Help consumers know
what's happening. Don't let corporations and other businesses take advantage of them!; Jerrold Borchardt, Self: |
SUPPORT this bill to create consumer protections for automatic subscription renewals.; marcia stewart, Self:
COnsumer protections have been cut on a federal level. SUpport our AZ folks from scams; Lisa Maczura, Self: This
makes sense.; Susan Ordway, Self: A good consumer protection bill.; Mitchell Smith, Self: Auto opt-out of renewals
with consumer action required to opt-in for a renewal would be good.,; Salie Travis, Self: | LOVE this proposal! The
elderly population is a big target for scams and this will go a long way in providing a way out! Strongly support!;
Barbara Lucas, Self: consumer protections for automatic subscription renewals is a no brainer for constituents.;
Jillian Ryan, Self: Companies would have to clearly disclose renewal terms, allow consumers to opt in directly
rather than being passively renewed, and offer an easy cancellation mechanism.; Bridget Clark-Cooper, Self: | had a
subscription that didn't notify me of the renewal date, nor the way | could cancel my subscription. This bill is
needed! Consumers need protection from companies that don't follow the law.; Marcia Tingley, Self: This is a very
good idea, which would let consumers clearly understand renewal terms and allow direct buy-in rather than an
automatic renewal and would offer easy cancellation mechanism.; Beverlee Loat, Self: laughable that state

$ would be spent that way; Tiffany Hall, Self: This is an excellent consumer protection proposal. Automatic
renewals shouldn't be a surprise and it should be as easy to cancel as it was for the company to automatically
renew your subscription.; Salvatore Caputo, Self: It's important that companies check with individual consumers to
ensure they authorize a subscription renewal at the time they wish to charge the consumer and that the company
cannot automatically charge to renew without consent given at that moment.; Jonathan Brechner, Self: Protecting
people is important. Auto-renewals are a sneaky way to harm us.; Allen Brown, Self: HB2951 is an excellent bill and
very much needed. | support HB2951.; Patricia Poe, Self: Please vote for this bill. Help protect consumers from
predatory automatic subscription renewals. Thank you.; Sara Isett, Self: Excellent way to protect consumers.; Craig
McDermott, Self: re: the striker; Aaron Essif, Self: Very good idea.; Claudia Yeager-Smith, Self: Well thought out,

14
reasonable consumer protections. SUPPORT and thank you for your work!; Mike Kunnecke, Self: A vote against
this is not a “Public Service" & not an act of a Public Servant!; Mary Pena, Self: Would create consumer protections
for automatic subscription renewals.; Kathryn Avila Hammond, Self: Let's help keep predatory subscription services
in check, no one needs unlimited subscriptions, except the people making money off these never-ending
subscriptions.; Erin Dahl, Self: | am in support of the bill creating consumer protections for automatic subscription
renewals.; Susan Bowen, Self: YES, THIS IS PROTECTING YOUR CONSTITUENTS AND CONSUMERS!!!; Margie Gomez,
Self: We need consumer protections for automatic subscription renewals. | personally would like to be refunded by
companies that have sneakily renewed my subscription, without my consent. SUPPORT; Stephen Flaaen, Self: Yes
to consumer protections!

HB2979, credit unions; certificates; powers; committee

Support:

Brooke Parent, Gowest Credit Union Association

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

HB2991, social media; online content; minors

Support:

Charmaine Roth, representing self; Susan Cheatham, representing self; James Roth, representing self

Neutral:
Corinne Johnson, representing self; Peter Gentala, CENTER FOR ARIZONA POLICY

Oppose:
Jose Torres, TECHNOLOGY NETWORK AKA TECHNET; Montana Miranda, representing self; Jennifer Hanley,
representing self; Patrick Hedger, representing self

All Comments:

James Roth, Self: Protects minors from undue influence by social media without parental consent; Patrick Hedger,
Self: Representing NetChoice; Peter Gentala, CENTER FOR ARIZONA POLICY: Leisa Brug (CAP VP Advocacy) will be
in committee and can share about letter previously sent if it would be helpful for the sponsor.

HB2996, DIFI: certificates of insurance

Support:
Jennifer Harris, INDEPENDENT INSURANCE AGENTS & BROKERS OF AZ; Lisa Hankal, representing self; Shane
Opdahl, representing self; Whitney Hoelzen, representing self

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

15
HB2999, municipal improvement districts; technical correction

Support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Tyler Cobb, HOME BUILDERS ASSOCIATION OF
CENTRAL ARIZONA; Emily Ryan, Southern Arizona Home Builders Association; Courtney Coolidge, AZ CHAMBER OF
COMMERCE; Clark Princell, VALLEY PARTNERSHIP; Jake Hinman, ARIZONA NEIGHBORHOOD PROJECT; Jeremy
Browning, HOME BUILDERS ASSOCIATION OF CENTRAL ARIZONA; Steve Trussell, AZ ROCK PRODUCTS ASSN

Neutral:
Dante Mitchell, ARIZONA FINANCE AUTHORITY

Oppose:
Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Robert Wisler, APACHE JUNCTION, CITY OF

All Comments:
Emily Ryan, Southern Arizona Home Builders Association: In support of the strike everything amendment.

HB4001, alternative nicotine products: regulation.

Support:

Jobe Dickinson, Border Security Alliance; John Paul Willett, representing self; Tom Dorn, Vapor Technology
Association; Beverly Janowitz-Price, representing self; Geoff Habicht, representing self; Judith Lohr, representing
self; David Kopilovitch, representing self; michael damiano, representing self; Heidi Walton, representing self

Oppose:

Brian Hummell, American Cancer Society Cancer Action Network; Lisa Bednar, AZ FOOD MARKETING ALLIANCE; Pat
VanMaanen, representing self; JoAnna Strother, AMERICAN LUNG ASSOCIATION IN ARIZONA; Marilyn Rodriguez,
AZ ATTORNEYS FOR CRIMINAL JUSTICE (AACJ); Joshua Umar, Arizona Petroleum Marketers Association

All Comments:

John Paul Willett, Self: President of Arizona Innovates: The Harm Reduction Coalition; Geoff Habicht, Self: This is
great legislation that protects AZ consumers and AZ businesses that are good actors. It is rational and logical law
that properly penalizes bad actors and regulates this properly as an adult product like alcohol.; Heidi Walton, Self:
Please protect early childhood funding so children and families can access quality early childhood education. Young
children can't wait!; Brian Hummell, American Cancer Society Cancer Action Network: Creates a new product
outside of tobacco. Only licenses ANP not all tobacco products. License should be self sustaining.; Pat VanMaanen,
Self: All tobacco products should be regulated similarly.

HB4011, HOAs; duties

Support:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION; Harold Bergsma, representing self; Linda Ross, representing
self; Charmaine Roth, representing self; Melanie Teixeira, representing self; Lisa Marx, representing self; Raymond
Wasson, representing self; Kathleen Harden-Wasson, representing self; Irene Smith, representing self; Teresa

16
Pinter, representing self; Clare Scarpulla, representing self; Julia Abston, representing self; Henry Schubel,
representing self; Diana Dow, representing self; Kathryn Kendall, representing self; James Roth, representing self;
Marcia Tolin, representing self

Neutral:
Pierre Desombre, representing self; Lynelle Glysson, representing self; Denise Priddy, representing self; Summer
Cole, representing self

Oppose:

Daniel Stasi, representing self

All Comments:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION: | support the bill as amended; Diana Dow, Self: HB-4011
ensures HOA boards follow clear duties, promoting fair, consistent, and transparent governance. It prevents
arbitrary or capricious actions, protecting homeowners from surprise rule changes and unnecessary legal disputes.
Please vote Yes.; James Roth, Self: prohibits HOA boards from arbitary decision-making in secret; Daniel Stasi, Self:
A duty to act "fairly" will not be interpreted by all the same. Those that are a grieved will frequently see it as
unfair.; Lynelle Glysson, Self: with the new language, | am changing my position to neutral.

HB4017, pet ownership limits; planned communities.

Support:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION; MJ Simpson, WM E MORRIS INSTITUTE FOR JUSTICE; Briana
Romero, HUMANE WORLD FOR ANIMALS; Martha German, HVA, INC. DBA HUMANE VOTERS OF ARIZONA;
Maureen Beyers, representing self; Steven Hansen, ARIZONA HUMANE SOCIETY; Thomas Krepitch, representing
self; Linda Ross, representing self; Melanie Teixeira, representing self; Lisa Marx, representing self; Pierre
Desombre, representing self; Raymond Wasson, representing self; Kathleen Harden-Wasson, representing self;
Teresa Pinter, representing self; Clare Scarpulla, representing self; Marcia Tolin, representing self; Julia Abston,
representing self; Denise Priddy, representing self; Diana Dow, representing self; Kathryn Kendall, representing self

Neutral:
Henry Schubel, representing self

Oppose:
Charmaine Roth, representing self; Dieter Knecht, representing self; Jeff Carr, representing self; James Roth,
representing self

All Comments:

Dennis J Legere, ARIZONA HOMEOWNERS COALITION: These associations have the authority to regulate the
behaviors of homeowners, their guest or pets to protect the safety of other members or the ability of those other
members to enjoy their homes and common property without nuisance behaviors.; MJ Simpson, WM E MORRIS
INSTITUTE FOR JUSTICE: Arizona families should be free of biased and non-evidence based restrictions on the
companion animals they choose to have in their home. Breed bans create housing barriers and overcrowded
animal shelters. Please vote yes.; Steven Hansen, ARIZONA HUMANE SOCIETY: The Arizona Humane Society
receives 10,000 calls monthly form pet owners. Rental housing restrictions are one of the top two reasons pet

17
owners Call to relinquish their pets to the Arizona Humane Society.; Denise Priddy, Self: The purpose of an HOA is
to ensure our property value by maintaining the community. Giving HOA's the right to decide what breed, size and
weight of our pets is not their purpose.; Diana Dow, Self: HB-4017 protects homeowners’ right to keep pets by
prohibiting breed, size, or weight restrictions while allowing reasonable rules on pet behavior consistent with the
law. Please vote YES.; Jeff Carr, Self: Leave this to the community; James Roth, Self: It seems a better idea to let
local community based on the community consensus to decide this issue and not have the state imposing its
dictates

HB4020, insurance; fraud unit; assessment; increase

Support:

Daniel Romm, AIG, ALLSTATE INSURANCE CO, American Family Insurance, Chubb Insurance , FARMERS INSURANCE
GROUP OF COMPANIES, GOVERNMENT EMPLOYEES INSURANCE COMPANY (GEICO); Marie Isaacson, STATE FARM
INSURANCE COMPANIES; Don Isaacson, STATE FARM INSURANCE COMPANIES

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

All Comments:
Don Isaacson, STATE FARM INSURANCE COMPANIES: will speak, if necessary

HB4026, public infrastructure improvements; distribution limit

Support:

Courtney Coolidge, AZ CHAMBER OF COMMERCE; Timothy Bourcet, representing self; Mayor Julia Wheatley,
representing self; Dianne McCallister, Arizona Technology Council; Nick Simonetta, PEORIA, CITY OF; Theresa
Ulmer, AZ MUNICIPAL WATER USERS ASSN; Barry M. Aarons, AZ MUNICIPAL WATER USERS ASSN; Eric Emmert,
Arizona Association For Economic Development , East Valley Chambers Of Commerce Alliance ; Robert Dalager,
GREATER PHOENIX ECONOMIC COUNCIL; Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Maegan Johnson ,
PHOENIX, CITY OF; Heather Bernacki Wilkey, QUEEN CREEK, TOWN OF; Rodney Short, YUMA, CITY OF; Steve
Hetsler, representing self; Doris Mills, representing self; Melissa Taylor, GREATER PHOENIX LEADERSHIP; Ryan
Sullivan, ECOLAB; Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Laura French, TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY, LTD.,; Clark Princell, VALLEY PARTNERSHIP; John Raeder, BUCKEYE,
CITY OF; Allison Grigg, AMKOR TECHNOLOGY; Brittany Barba, CITY OF CHANDLER

Oppose:

Dwight Kadar, representing self; Andrea Kadar, representing self; Cathy Schwanke, representing self; Aimee Yentes,
AZ FREE ENTERPRISE CLUB; Randal Scott, representing self; Elizabeth King, representing self; Michael Gabrick,
representing self; Kristine Nelson, representing self; Michael Steffens, representing self; Bonnie Kistler,
representing self; Stephen Harris, representing self; Leslie White, representing self; Linda Jorgensen, representing
self; Susan Bolt, representing self; Jeffrey Scott Christopher, representing self; Linda Busam, representing self;
William & Mary Jurica, representing self; John Yoder, representing self; Charmaine Roth, representing self; Nikki
Colletti, representing self; Bridget Nelke, representing self; Greg Blackie, AZ FREE ENTERPRISE CLUB; Melanie
Hutchings, representing self; Jean Ferguson, representing self; Christi Sourk, representing self; Cara Kretz,

18
representing self; Cherie Anello, representing self; Peter Anello, representing self; Susan O'Daniel, representing
self; Laurie Reiner, representing self; Pam Reinke, representing self; Mozelle Ault, representing self; J Holmes,
representing self; Carol Kliewer, representing self; Dale Brewer, representing self; Thomas Simacek, representing
self; Donna Booth, representing self; Merl Nielsen, representing self; Kathryn Farkas, representing self; louise
liggett, representing self; karen enns, representing self; Jeffrey Luft, representing self; Carrie Cox, representing self;
Mary Jamsa, representing self; Roy Scott Lassell, representing self; Pam Throw, representing self; Margaret Barnes,
representing self; brenda simon, representing self; Douglas Simon, representing self; Cornel Choskey, representing
self; Joelene Williamson, representing self; conrad tolson, representing self; Donald Koeppen, representing self;
Lydia Choskey, representing self; Lynda Patrick-Hayes, LD1LOSTRONGI, representing self; Shay Cardell, representing
self; Laurel Lynn Scott, representing self; Pamela Calik, representing self; Michele Lennane-Root, representing self;
Barbara Scott, representing self; Steve Kolter, representing self; Ronald Pardini, representing self; Lynda Brady,
representing self; Renee Yarbrough, representing self; LEE YARBROUGH, representing self; James Roth,
representing self; Joyce Mansur, representing self

All Comments:

Rodney Short, YUMA, CITY OF: Please have some of this funding return to the rural/non-metropolitan areas of
Arizona.; Aimee Yentes, AZ FREE ENTERPRISE CLUB: Not available to testify, but will email committee members
testimony.; Randal Scott, Self: No to this; Leslie White, Self: NO! NO! Terrible idea. Leslie White PC - LDS -
Oregon District; Linda Jorgensen, Self: Please reject this bill; Bridget Nelke, Self: | OPPOSE THIS BILL; J Holmes, Self:
No more taxpayers subsidizing buildings; let corporate do that.; Dale Brewer, Self: | have 2 grandchildren and one
great grandchild. | am very concerned about their futures.; karen enns, Self: State taxpayers should not subsidize
local businesses. Furthermore this would lead to all sorts of corruption,; Mary Jamsa, Self: Our state taxpayers
should not have to subsidize these business projects. | do not support this bill.; Roy Scott Lassell, Self: | do not
support this bill. It is not appropriate and should not be passed. Taxpayers should not subsidize wasted expense.;
Joelene Williamson, Self: 1 do not support. state TPT revenues should not be used to subsidize local public
infrastructure improvement projects developed by businesses.; Lynda Brady, Self: A serious vote no is required
here. Thank you for reading and considering a constituents opinion. | understand how overloaded your plate is, by
design, to keep you from having time to thoughtfully consider your vote.; James Roth, Self: Uses state TPT
revenues to subsidize local public infrastructure improvement projects developed by businesses. Bad idea.

HB4086, escrow agents; notice; property sale

Support:
Debi Gotlieb, representing self; Liz Recchia, AZ DEPT OF REAL ESTATE

All Comments:
Liz Recchia, AZ DEPT OF REAL ESTATE: Az legalized deed fraud (ARS 12-523 to 12-527). No way for property owner
to know the fraud is occurring. Affects all real property, not just residential.

HB4088, commercial motor vehicle; liability insurance

Oppose:

Tony Bradley, President and CEO, Arizona Trucking Association

19
All Comments:

Tony Bradley, Arizona Trucking Association: HB 4088 abandons Arizona's existing towing consumer protections for
DPS tows and to towing companies unlimited lien rights without rate caps, oversight, or dispute resolution.

20
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

DATE 02/17/26
CONVENED os S| sie
RECESSED —_
RECONVENED :
ADJOURNED Z| a2 pm
MEMBERS PRESENT NOT PRESENT
Aguilar SY
Blackman Ps
Carter N uf
Cavero VA
Connolly od
Diaz a
Hendrix i
Villegas wv
Wilmeth VA
VA
VA

TOTAL

Attachment 3
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2911: registrar of contractors; restitution; repeal
Sponsor: Representative Hendrix, LD 14
Committee on Commerce

Overview
Repeals the statute relating to a recommendation made by an administrative law judge that
restitution be provided by a licensed contractor.

History
As part of the Registrar of Contractor's (ROC) compliant process, the ROC can assign an

amount of restitution be paid to a person who was financially harmed by a licensed
contractor. The licensed contractor can contest the amount awarded by requesting a hearing.
Contested cases are sent to the Office of Administrative Hearings (OAH), which is overseen
by an administrative law judge. The administrative law judge must issue a written decision
within 20 days after the hearing is concluded. Within 30 days after the date OAH sends a
copy of the decision to the agency head, the agency head may review the decision and accept,
reject or modify it. The agency head's decision is the final administrative decision with
outlined exemptions. The administrative law judge is statutory permitted to recommend that
a licensee provide restitution to any person who is injured or whose property is damaged by
actions of the licensee (A.R.S. §§ 32-1156, 32-1156.01, 41-1092.08).

Provisions

1. Repeals statute allowing an administrative law judge to recommend that a licensee
provide restitution to any person who is injured or whose property is damaged by actions
of the licensee. (Sec. 1)

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

Initials PB HB 2911
2/14/2026 Page 1 Commerce

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO./__HB 2911
DATE February 17, 2026 MOTION: DP

PASS AYE NAY PRESENT ABSENT

Aguilar v4

Blackman ~

Carter N yf

Cavero J

Connolly

Diaz

SQ
Hendrix IN ry 4

Villegas — Qi

Wilmeth a Q/ rf

Way, Vice-Chairman

Weninger, Chairman /

Mdus

APPROVED: COMMITTEE SECHETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Wice-Chairman

ATTACHMENT. 8

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB4020: insurance; fraud unit; assessment; increase
Sponsor: Representative Livingston, LD 28
Committee on Commerce

Overview
Increases the maximum annual amount the Director of the Department of Insurance and
Financial Institutions (DIFD can assess each licensed insurer to up to $1,350.

History
Established within DIFI, the Fraud Unit investigates any act or practice of insurance fraud.

The Director employs investigators who possess peace officer status while performing their
duties. The Director annually assesses each insurer authorized to transact business in
Arizona up to $1,050 for the administration and operation of the Fraud Unit and the
prosecution of fraud. Monies collected are deposited in the Fraud Unit Assessment Fund and
are continuously appropriated (A.R.S. §§ 20-466, 20-466.05).

Provisions
1. Increases the maximum assessment amount from $1,050 to $1,350. (Sec. 1)

2. Makes the legislation retroactive to July 1, 2026. (Sec. 2)

3. Contains a Proposition 108 clause. (Sec. 3)

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

Initials PB HB 4020
2/12/2026 Page 1 Commerce

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

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 4020
DATE February 17, 2026 MOTION: DP
PASS AYE NAY PRESENT | ABSENT
Aguilar rd a
Blackman a WA
Carter N r 4
Cavero al :
Connolly ”
Diaz ” i
Hendrix Va
Villegas ro a
Wilmeth 4
Way, Vice-Chairman oe
Weninger, Chairman aX
t@i| Ol ols

APPROVED: COMMITTEE SEQETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT |
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2255: teachers academy; community college students
Sponsor: Representative Weninger, LD 13
Committee on Commerce

Overview

Doubles the number of academic years or semesters for which a community college student
who is enrolled in the Arizona Teachers Academy (Academy) may receive a tuition and fees
scholarship.

History
Eligible postsecondary institutions operate an Academy to incentivize students to teach in

Arizona public schools or in schools that primarily serve public school students with
disabilities. The Academy must include accelerated models for: 1) high-demand teacher
specializations; 2) critical need areas; 3) individuals seeking postbaccalaureate coursework
resulting in professional certification; 4) dual enrollment teachers; and 5) students in
noneducation programs to complete teacher preparation courses.

An eligible postsecondary institution must provide each Academy student a scholarship, after
all other financial aid is considered, up to the actual cost of: 1) tuition and fees for
undergraduate, graduate and community college students, subject to academic year and
semester limitations; 2) obtaining National Board certification and renewal; and 8) obtaining
a teaching certificate. For each academic year the student successfully completes and receives
a tuition and fee scholarship, the student must agree to teach for one full school year in an
Arizona public school. A teacher seeking a National Board certification must teach for one
additional year after completing the certification program. Statute details circumstances in
which a student or teacher must reimburse the Arizona Board of Regents for an Academy
scholarship if the student or teacher does not fulfill the service requirement. Arizona
Teachers Academy Fund monies may be used to reimburse Academy scholarships (A.R.S. §

15-1655).

Provisions

1. Increases the number of academic years or semesters for which an eligible postsecondary
institution must provide an Academy tuition and fees scholarship to community college
students, from a maximum of two academic years or four semesters, to a maximum of
four academic years or eight semesters. (Sec. 1)

2. Contains a Proposition 105 clause. (Sec. 2)

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

Initials PB HB 2255
2/15/2026 Page 1 Commerce

Attachment & _
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. —_ HB 2255

DATE February 17, 2026 MOTION: DP

NAY PRESENT | ABSENT

ce
m

PASS

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

VANKARAINARBIS

Way, Vice-Chairman

Weninger, Chairman A

Jo| P| oO

pon

| yu

APPROVED: CONMITT E SEQRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT 4
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

the jj |: DITAT Deus 718 \

HB 2591: apprenticeships; registration; certificate
Sponsor: Representative Wilmeth, LD 2
Committee on Commerce

Overview
Prescribes requirements for the Department of Economic Security (DES) registered

apprenticeships.

History
DES is a state agency that provides protective and assistance services to Arizona’s children,

adults and families. DES administers a broad range of programs related to children’s
services, guardianship and adoption, child support enforcement, developmental disabilities,
vocational rehabilitation, domestic violence, adult protective services, medical assistance
eligibility, nutritional assistance, independent living, employment assistance and
unemployment insurance. Its three primary goals are to strengthen individuals and families,
increase self-sufficiency and develop the capacity of communities (Title 41, Chapter 14,

A.R.S.).

DES establishes special purpose councils as are required by state and federal law, rules or
regulations or determined to be essential to the public's interest, including an apprenticeship
advisory council (A.R.S. 41-1981).

The Arizona Apprenticeship Advisory Committee coordinates, advises and recommends
approval of procedures for the registration of apprenticeship programs and establishes
quality thresholds of employers and employees in a sound, voluntary system of
apprenticeship for men and women in skilled trades and occupations.

Provisions

1. Declares apprenticeships that are registered by DES must:
include written apprenticeship agreements;

define work processes and training plans;

provide progressive wage increases;

provide proper supervision and safety training; and
issue certificates of completion. (Sec. 1)

opoop

2. Defines apprenticeship as a formal, structured, earn-and-learn training model that
combines paid, supervised on-the-job learning with related technical instruction to
develop competent and skilled workers in an industry-recognized occupation. (Sec. 1)

3. Makes technical changes. (Sec. 1)

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

Initials PB HB 2591
2/13/2026 Page 1 Commerce

Attachment ! D
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2591

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2591
(Reference to printed bill)

Amendment instruction key:
[GREEN UNDERLINING IN B ] indicates text added to statute or
previously enacted session law.
[Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
(GREEN-STRIREGUT-H-BRACKETS] indicates new text removed from statute
or previously enacted session law.
(Green-strrkevut—ir_bracrets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<6reen—strikevut—ircarets>> indicates a section removed from the bill.

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

2 Section 1. Section 41-1951, Arizona Revised Statutes, is amended to
3 read:

4 41-1951. Definitions

5 In this chapter, unless the context otherwise requires:

6 1. "Agency" includes one or more of the state agencies consolidated
7 into the department of economic security by this chapter.

8 2. “APPRENTICESHIP"™ MEANS A FORMAL, STRUCTURED, EARN-AND-LEARN
9 TRAINING MODEL THAT COMBINES PAID, SUPERVISED ON-THE-JOB LEARNING WITH

10 RELATED TECHNICAL INSTRUCTION [PURSUANT TO THE UNITED STATES DEPARTMENT OF
11 LABOR STANDARDS FOR REGISTERING APPRENTICESHIP PROGRAMS] TO DEVELOP
12 COMPETENT AND SKILLED WORKERS IN AN INDUSTRY-RECOGNIZED OCCUPATION.

13 F> 3. “Community work and training" means work, training or job
14 development which THAT will be provided through a plan jointly entered
15 into by the department and an agency, department, board or commission of
16 the THIS state or THE federal government>- OR A county, city, political
17 subdivision or private agency. Such work, training or job development
18 will take place in and about public or private works or improvements and
19 will wtitize USE labor and services required to be performed where
20 feasible by those eligible for this program.

21 2> 4. “Comprehensive plan" means an evaluation of client needs and
22 the availability of services to meet these needs within tte THIS state.

23 3> 5. "Council" means the economic security council.

24 +> 6. “Department" means the department of economic security.

25 5S> 7. "Director" means the director of the department of economic

26 security.
Adopted # of Verbals

Failec Withdrawn

Not Offered Analysts Initials

Attachment We
House Amendments to H.B. 2591

ANA ONHPWNH FE

6- 8. "State plan" means any of the several state plans which THAT
establish the federal-state contractual relationships necessary for

federal funding.
Sec. 2. Section 41-1955, Arizona Revised Statutes, is amended to

read:
41-1955. Duty of department concerning employment
stabilization, ex-offender rehabilitation, income
Maintenance and manpower development; research
studies: apprenticeships
The department, with the advice and aid of its advisory councils,
shall:

1. Take appropriate steps to reduce and prevent unemployment and
dependency;— and to assist in alleviating the economic and social impact
of unemployment and dependency on the person and tres THE PERSON'S family.

2. Encourage and assist in the—adoption—of ADOPTING practical
methods of manpower services, occupational training, vocational counseling
and guidance, vocational rehabilitation and _ retraining, supportive
services and other such services the director deems appropriate.

3. Research, recommend, advise and assist in the—estabtrstment—of
ESTABLISHING community or area facilities, public and private, or both, to
provide an integration of direct services and programs for tte~tevetopment
of—tte DEVELOPING THIS state's manpower and the—reductron—of REDUCING

dependency.
4. Promote the effective wutitizatrorn USE of unemployed and

undter-utitized UNDER-USED workers.

5. Aid in the—tretabttttation—vFf- REHABILITATING’ employable
ex-offenders, in cooperation with the department of corrections. An
ex-offender, by accepting the assistance provided for by this article,
shall not be disqualified from receiving further assistance from any other
state agency to which tre THE EX-OFFENDER is legally entitled.

6. Be the state registration agency for apprenticeship functions
prescribed by the federal government.

7. Carry out and publish the results of research studies for the

purpose of this chapter.

[BAP PRENTFECESHEP S THAT ARE-REGTSTERERB1-THE-BEPARTIENT SHALE
House Amendments to H.B. 2591

1 Enroll and engross to conform
2 Amend title to conform

2591 WENINGER. docx
02/13/2026

09:19 AM

H: PB/1s
130VPPDBL

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

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO. __HB 2591

DATE

February 17, 2026

MOTION: DPA

NAY

>
x
m

PASS

PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

ets

@)INAAAAAAAAS

eae

O

O

a

— deg Le Lures

ITTEE SECRETARY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. | *

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2680: worker's compensation; notice; fraud; commission
Sponsor: Representative Hernandez A, LD 20
Committee on Commerce

Overview
Requires the Industrial Commission of Arizona to maintain a database containing certain
workers' compensation information.

History
The Industrial Commission of Arizona (ICA) administers and enforces state laws relating to

the protection of life, health, safety and welfare of Arizona's employees, including workers’
compensation. Worker’s compensation insurance provides coverage of medical costs,
rehabilitation and lost wages for an employee who has suffered injury or illness in the course
of performing job related duties. Employers are statutorily required to provide workers’
compensation to their employees either by securing insurance through an authorized carrier
or providing the ICA with proof of financial ability to pay workers’ compensation costs. An
employer can demonstrate financial ability to pay benefits directly or through participation
in an approved self-insurance compensation pool (A.R.S. §§ 23-107 and 23-961).

The ICA is statutorily required to establish a fraud unit which investigates fraudulent
activities, statements or representations made in connection with workers' compensation
claims. The fraud unit may investigate allegations of fraud either on receiving a complaint
or on the fraud unit's own motion. If, on investigation, the fraud unit determines that
fraudulent activities, statements or representations were made, the fraud unit may report
violations of law to the claimant or claimant's representative, to the reporting employer, self-
insured employer or insurance carrier, to the appropriate licensing agency, and to the
appropriate county attorney or the attorney general for prosecution (A.R.S. § 23-934).

Provisions
1. Requires the ICA to generate and maintain a publicly accessible database containing an
employer's workers' compensation information that includes:
a. the name of the insured person;
b. the name of the insurer; and
c. the expiration date of the policy. (Sec. 1)

2. Instructs the ICA to maintain a record of the workers' compensation policies sold by each
insurance broker or agent. (Sec. 1)

3. Details information that a licensed or certified insurer must provide to the ICA. (Sec. 1)

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

Initials PB HB 2680
2/14/2026 Page 1 Commerce

Attachment 19
4. Requires the ICA, on notice by an insurer, to investigate allegations of workers'
compensation or premium insurance fraud. (Sec. 1)

5. Requires insurers who issue a zero estimated exposure policy to include a specified
statement signed by the applicant that attests to the accuracy of the information provided
in the application and that the applicant has no employees and an estimated exposure of
zero. (Sec. 1)

6. Stipulates an employer that provides business construction and improvement services
obtains a zero estimated exposure policy must provide to each entity that the employer
directly contracts with a copy of the policy and written notification that states that the
employer has a total estimated exposure of zero. (Sec. 1)

7. Instructs an entity to retain the written notice and the policy for at least three years after
the date it was received. (Sec. 1)

8. Defines zero estimated exposure policy as an insurance policy that is obtained by an
employer to cover the employer's liability to pay compensation after the employer reports
a total estimated exposure of zero. (Sec. 1)

9. Applies the zero estimated exposure policy requirements to contracts that are entered
into after the effective date of this act. (Sec. 2)

Initials PB HB 2680

2/14/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2680

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2680
(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.
LGREEN-STRIKECUT-FHI-BRACKEFS ] indicates new text removed from statute
or previously enacted session law.
(Green—str+keout—irtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<freen—strvkeout—ircarets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:
Section 1. Title 23, chapter 6, article 1, Arizona’ Revised
Statutes, is amended by adding section 23-911, to read:
23-911. Workers' compensation; proof of insurance; public
database: notice: definition

[ASE CMTS STON SHAE GENERATE AND HATTA A— PUBTTELY

ONO WDM FE

19 27 EHIME OFTHE FIISURANEEBRORER-OR-AGENT THAT SOED THE HHORKERS—
20 COMPENSATTON-POLTEN- J

21 [B-] [A.] A [BECEARATTON—PAGE] [CERTIFICATE OF INSURANCE] SHALL
22 INCLUDE ALL OF THE FOLLOWING:

23 1. A QUICK-RESPONSE CODE THAT DIRECTS A USER TO THE [WORKERS
24 COMPENSATION VERIFICATION] DATABASE [AS—PRESERTBEB—EN-SUBSEECTHON-AOF HES
25 SECTTON].

26 2. THE NUMBER OF EMPLOYEES THAT ARE EMPLOYED BY THE INSURED.

27 3. THE ESTIMATED PAYROLL AMOUNT PER EMPLOYEE CLASSIFICATION.

# of Verbal:

Withdrawr

Analysts Initials

Attachment 4
House Amendments to H.B. 2680

1 [EON THO FEE EBA ERISORERS FE 6 ES STON SHALE “FAVES TFT GATE
2 ACCEGATTONS—OF—HORKERS — COMPENSATE ON—R-PREMEOM ANS URANEE—-FRAUB— OF at
3 THSUREDT]
4 (f] [B.] IF AN INSURER ISSUES A ZERO ESTIMATED EXPOSURE POLICY,
5 THE ZERO ESTIMATED EXPOSURE POLICY SHALL INCLUDE A STATEMENT SIGNED BY THE
6 APPLICANT THAT ATTESTS TO THE ACCURACY OF THE INFORMATION PROVIDED IN THE
7 APPLICATION AND THAT THE APPLICANT HAS NO EMPLOYEES AND AN ESTIMATED
8 EXPOSURE OF ZERO, AS FOLLOWS:
9 I ATTEST THAT THE INFORMATION PROVIDED ON THIS

10 APPLICATION IS CURRENT, TRUE, CORRECT, ACCURATE AND COMPLETE

11 TO THE BEST OF MY KNOWLEDGE AND BELIEF. I FURTHER ATTEST THAT

12 I DO NOT HAVE ANY EMPLOYEES AND AN ESTIMATED EXPOSURE OF ZERO.

t3 IF I EMPLOY AN EMPLOYEE DURING THE POLICY PERIOD, I WILL

14 PROVIDE WRITTEN NOTIFICATION TO MY WORKERS" COMPENSATION

15 INSURER OF THE EMPLOYMENT WITHIN SIXTY DAYS AND WILL INCLUDE

16 THE ESTIMATED PAYROLL AND CLASSIFICATION CODES OF THE NEW

Ld EMPLOYEE. I UNDERSTAND THAT AN INTENT TO DEFRAUD OR ANY

18 OMISSION OR MISREPRESENTATION CONTAINED IN THIS APPLICATION IS

19 UNLAWFUL.

| 20 (@>] ([€.] IF. AN EMPLOYER THAT PROVIDES BUSINESS CONSTRUCTION AND

21 IMPROVEMENT SERVICES OBTAINS A ZERO ESTIMATED EXPOSURE POLICY, THE
22 EMPLOYER SHALL PROVIDE TO EACH ENTITY THAT THE EMPLOYER DIRECTLY CONTRACTS
23 WITH A COPY OF THE POLICY AND WRITTEN NOTIFICATION THAT STATES THAT THE
24 EMPLOYER HAS A TOTAL ESTIMATED EXPOSURE OF ZERO. AN ENTITY THAT RECEIVES
25 WRITTEN NOTICE UNDER THIS SUBSECTION SHALL RETAIN THE NOTICE AND THE
26 POLICY FOR AT LEAST THREE YEARS AFTER THE DATE OF RECEIPT.

| 27 (t7] [D.] FOR THE PURPOSES OF THIS SECTION, "ZERO ESTIMATED
28 EXPOSURE POLICY" MEANS AN INSURANCE POLICY THAT IS OBTAINED BY AN EMPLOYER
29 TO COVER THE EMPLOYER'S LIABILITY TO PAY COMPENSATION AFTER THE EMPLOYER
30 REPORTS A TOTAL ESTIMATED EXPOSURE OF ZERO.

31 Sec. 2. Applicability
32 Section 23-911, Arizona Revised Statutes, as added by this act,

33 applies to contracts that are entered into on or after the effective date
34 of this act.

35 Enroll and engross to conform
36 Amend title to conform

JEFF WENINGER

2680WENINGER. docx
02/16/2026

02:13 PM

H: PB/ra
130DDCFNP
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2680

DATE February 17, 2026 MOTION: DPA

PASS NAY PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas
Wilmeth

Way, Vice-Chairman

Weninger, Chairman

© IINAN) IISKIAIANIA

O | 2
Md, .
APPROVED: COMMITTEE SECRETARY

VW"

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT_] 5

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2979: credit unions; certificates; powers; committee
Sponsor: Representative Wilmeth, LD 2
Committee on Commerce

Overview
Includes requirements relating to approval of a credit union's bylaws, name changes, and
changes to the principal place of business.

History
The Department of Insurance and Financial Institutions (DIF) is a multifaceted agency that

regulates the insurance industry, financial institutions and enterprises as well as the
distribution of Arizona Automobile Theft Authority Fund monies to combat auto theft.

DIFI regulates such industries through licensure of financial and insurance professionals
such as collection agencies, mortgage bankers and brokers, insurers and insurance
producers, registering and certifying state-chartered banks and credit unions and conducting
scheduled examinations and investigating complaints of licensed professionals and

businesses (Title 6, A.R.S.).

Provisions

Credit Union; Amendments to Bylaws
1. Instructs the Deputy Director to submit an acknowledgment of receipt or request
additional information within 10 business days after receiving a completed proposed
amendment request. (Sec. 2)

2. Requires Deputy Director to make a decision within 30 business days after the date that
the acknowledgment of receipt is submitted to the credit union. (Sec. 2)

3. Allows the Deputy Director to extend the response time for good cause shown. (Sec. 2)

Credit Union; Name Change
4. Instructs the Deputy Director to submit an acknowledgment of receipt or request
additional information within 10 business days after receiving a completed request for a
name change. (Sec. 3)

5. Requires the Deputy Director to make a decision within 30 business days after the date
that the acknowledgment of receipt is submitted to the credit union. (Sec. 3)

Credit Union; Change in Principal Place of Business
6. Instructs the Deputy Director to submit an acknowledgment of receipt or request
additional information within 10 business days after receiving a completed request for a
change in the principal place of business or branch. (Sec. 4)

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

Initials PB HB 2979
2/12/2026 Page 1 Commerce

Attachment |? _
7. Requires the Deputy Director to make a decision within 60 days after the date that the
acknowledgment of receipt is submitted to the credit union. (Sec. 4)

8. Allows the Deputy Director to extend the response time for good cause shown. (Sec. 4)

Miscellaneous
9. Deletes the prohibition for a credit union to delegate the exercise of any specified power
to certain persons without prior written approval. (Sec. 5)

10. Includes that a credit union is authorized to exercise all of the rights, powers and
privileges of any out-of-state credit union. (Sec. 6)

11. Requires a credit union, prior to exercising any right, power or privilege, to submit a
request and reference the specific statutory or regulatory source of the right, power or
privilege to be exercised. (Sec. 6)

12. Clarifies appeals to the credit committee relating to loans must be approved or denied by
a majority of the committee members. (Sec. 7)

13. Makes a technical and conforming changes. (Sec. 1, 2, 6, 8)

Initials PB HB 2979
2/12/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2979

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2979
(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.

(GREEN-STRIKEGUT-TH-BRACKETS] indicates new text removed from statute

or previously enacted session law.

(Green—strikevut—inrtracrets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.

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

The bill as proposed to be amended is reprinted as follows:
Section 1. Section 6-506, Arizona Revised Statutes, is amended to

read:
6-506. Organization procedure
A. Any seven or more residents of this state who are of legal age

and who have a common bond of interest or association may apply to the
deputy director for permission to organize a credit union under this

chapter.
B. The incorporators shall prepare, adopt and execute a certificate

10 of organization and shall agree to comply with the requirements of the
11 certificate and with all of the laws and rules applicable to credit
12 unions. The certificate shall state:

SOON DOT HP WM

13 1. The credit union's name and the location of the _ proposed
14 principal place of business.

15 2. That the existence of the credit union is perpetual.

16 3. The names and addresses of the incorporators and the number of
17 shares subscribed to by each.

18 4. The purpose for which the credit union is formed.

19 C. The incorporators shall prepare, adopt and execute’ bylaws

20 consistent with this chapter for the general governance of the credit
21 union. The bylaws, among other things, shall provide:

22 1. The proposed field of membership that shall consist of one or
23 more groups having a common bond of interest, occupation or association or
24 to groups within a well-defined neighborhood, community or rural district
25 consistent with the purposes of the credit union.

26 2. The par value, IF ANY, of shares.

2] 3. The number of directors of the credit union, which shall not be
28 fewer than five, all of whom shall be members, together with the titles of

Adopted y # of Verbals

Failed Withdrawr

Not Offere: Analysts Initials

Attachment_l 1 __
House Amendments to H.B. 2979

the officers and the number of members of the supervisory committee, which
shall not be fewer than three.

4. The conditions under which shares may be issued, transferred or
withdrawn, loans may be made and repaid and monies may be otherwise
invested.

5. The number of members of the credit committee, which shall not
be fewer than three, or the authorization of a credit manager.

D. The incorporators shall select at least five persons who are
eligible for membership and who agree to become members and serve on the
board of directors, and at least three persons who are eligible for
membership and who agree to become members and serve on the supervisory
committee. The persons selected to serve on the board of directors and
the supervisory committee shall execute an agreement to serve in those
capacities until the first annual meeting or until the election of their
respective successors, whichever is later.

E. The incorporators shall forward to the deputy director such
application as is required by the deputy director, along with the
application fee provided for in section 6-126, the certificate of
organization, the bylaws and the agreements to serve and any additional
information that the deputy director may request.

F. The incorporators shall not transact any business in the name of
the credit union until the certificate of incorporation has been issued by
the corporation commission and the application and the bylaws have been
approved by the deputy director.

Sec. 2. Section 6-508, Arizona Revised Statutes, is amended to
read:

6-508. Certificate of organization and bylaws

A. The deputy director shall prepare standard forms of the
certificate of organization and bylaws>~ THAT ARE consistent with this
chapter>—whtch AND THAT may be used by credit union incorporators.

B. The board of directors may adopt proposed amendments to the
certificate of organization at a duly held meeting. The board of
directors shall submit the proposed amendments to the members’ for
ratification at a regular or special meeting, after which they shall be
submitted to the deputy director for the deputy director's approval or
disapproval. If approved by the deputy director, the board of directors
shall follow the procedure for organization prescribed in section 6-507,
subsection B.

C. The board of directors may adopt proposed amendments to the
bylaws at any duly held meeting by a three-fourths majority vote. After
proposed amendments have been approved, the board shall submit the
proposed amendments to the deputy director for the deputy director's
approval. WITHIN TEN BUSINESS DAYS AFTER RECEIVING A COMPLETED PROPOSED
AMENDMENT REQUEST, THE DEPUTY DIRECTOR SHALL SUBMIT AN ACKNOWLEDGMENT OF
RECEIPT OR REQUEST ADDITIONAL INFORMATION. THE DEPUTY DIRECTOR SHALL MAKE
A DECISION WITHIN THIRTY BUSINESS DAYS AFTER THE DATE THAT THE
ACKNOWLEDGMENT OF RECEIPT IS SUBMITTED TO THE CREDIT UNION. FOR GOOD

House Amendments to H.B. 2979

HONDO P WDM PF

CAUSE SHOWN, THE DEPUTY DIRECTOR MAY EXTEND THE RESPONSE TIME. The
amendments are effective on approval of the deputy director. At the next
regular or special meeting of the membership, the board shall submit all
amendments to the bylaws to the members for ratification.

Sec. 3. Section 6-509, Arizona Revised Statutes, is amended to
read:

6-509. Exclusive use of name; exception

A. The name of every credit union organized under this chapter
shall include the words "credit union". A credit union shall not adopt a

name either identical to the name of any other credit union doing business
in this state or so similar as to be misleading or cause confusion.

B. It is unlawful for any person to engage in this state in the
business of a credit union or to make use of the words “credit union" or
any other words in a manner reasonably calculated to convey the impression
that the person is engaged in the business of a credit union in this
state, unless the act is done by or on behalf of a person having authority
under this chapter, except an association of credit unions, or an
organization, corporation or association whose membership or ownership
consists primarily of credit unions or credit union organizations, may use
a name or title containing the words "credit union".

C. A credit union may change its name only on the written
authorization of the deputy director. WITHIN TEN BUSINESS DAYS AFTER
RECEIVING A COMPLETED REQUEST FOR A CREDIT UNION NAME CHANGE, THE DEPUTY
DIRECTOR SHALL SUBMIT AN ACKNOWLEDGMENT OF RECEIPT OR REQUEST ADDITIONAL
INFORMATION. THE DEPUTY DIRECTOR SHALL MAKE A DECISION WITHIN THIRTY
BUSINESS DAYS AFTER THE DATE THAT THE ACKNOWLEDGMENT OF RECEIPT IS
SUBMITTED TO THE CREDIT UNION.

Sec. 4. Section 6-510, Arizona Revised Statutes, is amended to
read:

6-510. Principal place of business; branch office

A. A credit union may change its principal place of business or

branch within this state with the prior approval of the deputy director
and the payment of the fee provided in section 6-126.

B. A credit union may establish a branch office with the prior
approval of the deputy director.

C. A credit union organized under this chapter may conduct business
in other states or territories of the United States where it is allowed to
do so on approval of the deputy director, if it is reasonably necessary to
service its members.

D. WITHIN TEN BUSINESS DAYS AFTER RECEIVING A COMPLETED REQUEST FOR
A CHANGE IN THE CREDIT UNION'S PRINCIPAL PLACE OF BUSINESS OR BRANCH THAT
IS LOCATED IN THIS STATE, THE DEPUTY DIRECTOR SHALL SUBMIT AN
ACKNOWLEDGMENT OF RECEIPT OR REQUEST ADDITIONAL INFORMATION. THE DEPUTY
DIRECTOR SHALL MAKE A DECISION WITHIN SIXTY BUSINESS DAYS AFTER THE DATE
THAT THE ACKNOWLEDGMENT OF RECEIPT IS SUBMITTED TO THE CREDIT UNION. FOR
GOOD CAUSE SHOWN, THE DEPUTY DIRECTOR MAY EXTEND THE RESPONSE TIME.
House Amendments to H.B. 2979

ON aA TF WDM FE

Sec. 5. Section 6-516, Arizona Revised Statutes, is amended to

read:

6-516. General powers
A. In addition to the powers prescribed elsewhere in this chapter

and except as prohibited by law, a credit union may:

1. Enter into contracts of any nature.

2. Sue or be sued.

3. Adopt, use and display a corporate seal.

4. Acquire, lease, hold, assign, pledge, hypothecate, sell,
discount or otherwise dispose of property or assets, either in whole or in
part, necessary or incidental to its operations.

5. Borrow money from any source, except that a credit union shall
obtain the prior written approval of the deputy director to borrow in
excess of an aggregate of fifty percent of its capital.

6. Purchase all or a portion of the assets and assume all or a
portion of the liabilities of a credit union chartered under the laws of
any state, a federal credit union, a bank or an out-of-state bank.

7. Offer financial services incidental to the purposes of a credit
union, including electronic fund transfers, safe deposit boxes and leasing
and correspondent arrangements with other financial institutions.

8. Hold membership in other credit unions organized under this
chapter or other laws or in other associations and organizations.

9. Engage in activities and programs offered by any governmental
unit that are incidental or reasonably related to credit union activities.

10. Act as a fiscal agent for and receive payments on share and
deposit accounts from a governmental unit.

11. Make contributions to any nonprofit civic, charitable or
service organizations.

B. A credit union may exercise all incidental powers that are
convenient, suitable or necessary to enable it to promote or carry out its

purposes.
C. A credit union shall not delegate the management of a credit

union or—tte-exerctse-of—any—power—setforti-nrthtssectton to any person
who is not an officer, director or employee of the credit union without
the prior written approval of the deputy director. The deputy director
may examine the books, records and business affairs of any person or
entity to whom the credit union proposes to delegate any such authority.

Sec. 6. Section 6-517, Arizona Revised Statutes, is amended to
read:

6-517. Federal parity

In addition to all other rights, powers and privileges, a credit
union THAT IS organized under the laws of this state AND whose accounts
are insured by an insuring organization:

1. Has all of the rights, powers and privileges and is entitled to
the same exemptions and immunities as any credit union THAT IS chartered

under the laws of the United States.

House Amendments to H.B. 2979

ON OOP WDHY FE

2. MAY EXERCISE ALL OF THE RIGHTS, POWERS AND PRIVILEGES OF ANY
OUT-OF-STATE CREDIT UNION [WITH THE PRIOR APPROVAL OF THE DEPUTY

DIRECTOR). [BEFORE—EXERETSTNG—ANT—SUEH-RTEGHT—POTER-OR-PREVTCEGE>] «THE

CREDIT UNION SHALL SUBMIT A REQUEST TO THE DEPUTY DIRECTOR ON A FORM
PRESCRIBED BY THE DEPUTY DIRECTOR AND REFERENCE THE SPECIFIC STATUTORY OR
REGULATORY SOURCE OF THE RIGHTS, POWERS OR PRIVILEGES THAT THE CREDIT
UNION WISHES TO EXERCISE.

Sec. 7. Section 6-538, Arizona Revised Statutes, is amended to

read:

6-538. Credit committee

A. The credit committee has the general supervision of all loans to
members, unless it is replaced by a credit manager as provided in section
6-539. The credit committee may approve or disapprove loans subject to
written policies established by the board of directors.

B. The credit committee shall meet as often as the business of the
credit union requires but not less frequently than monthly, to review the
lending activities of the credit union and to consider applications for
loans. #&—toar—statt—rot—be—madte—amtess—7t—ts APPEALS TO THE CREDIT
COMMITTEE AS PROVIDED IN SECTION 6-540 SHALL BE approved OR DENIED by a
majority of the members of the committee who are present at the meeting at
which the application is considered.

C. The credit committee or the credit manager shall keep a record
of all actions taken and shall report on such actions to the board at its
next meeting.

Sec. 8. Section 6-551, Arizona Revised Statutes, is amended to
read:

6-551. are accounts

A. Share accounts shall be subscribed to and paid for in _ such
manner as the board of directors prescribes. A credit union may require
its members to subscribe to and make payments on membership
shares. Membership shares may not be pledged as security on any loan.

B. The par value, IF ANY, of any membership shares may differ from
the par value of other shares.

C. A credit union may limit the amount in share accounts and
deposit accounts and any such limit must apply to all account holders.

Enroll and engross to conform
Amend title to conform

JUSTIN WILMETH

2979WILMETH. docx
02/12/2026

04:11 PM

PB/1s
130PPLWLU

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

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILLNO. __HB2979_

DATE

February 17, 2026

MOTION: __ DPA _

NAY

>
x
m

PASS

PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

F INAAARIAARNARA

Oo

O O

SoMa Tee SECRETARY

JEFF WENINGER, Chairman

MICHAEL WAY, Vice-Chairman

ATTACHMENT__]

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2868: installation license; insurance; rules
Sponsor: Representative Wilmeth, LD 2
Committee on Commerce

Overview
Includes licensure requirements and removes certain duties of the Board of Manufactured

Housing relating to rule adoption.

History
The Arizona Department of Housing (ADOH) is responsible for: 1) establishing policies,

procedures and programs to address the affordable housing issues confronting Arizona,
including issues of low income families, moderate income families, housing affordability,
special needs populations and decaying housing stock; 2) providing, to qualified housing
participants and political subdivisions of Arizona, financial, advisory, consultative, planning,
training and educational assistance for the development of safe, decent and affordable
housing, including housing for low and moderate income households; and 3) maintaining and
enforcing standards of quality and safety for manufactured homes, mobile homes and factory-
built buildings (A.R.S. § 41-3953).

The Director of ADOH is responsible for establishing licensing and regulation procedures and
issuing certification documents for compliance with the licensing and bonding requirements.
The Director issues manufacturer, dealer, broker, salesperson and installer licenses through
qualification, investigation and examination. Before receiving and holding a license the
applicant must submit a valid fingerprint clearance card. The license expires one year after
the date of issuance. An application for renewal with evidence of a valid bond or cash deposit
authorizes the licensee to operate until the actual issuance of the renewal license (A.R.S. §§
41-4023, 41-4025, 41-2027).

Provisions

1. Requires an installation license applicant for a manufactured home or mobile home to
provide evidence of and maintain insurance in an amount that will cover the costs for
damages to the home caused by the installer during the installation. (Sec. 1)

2. Allows ADOH to require the licensed installer to provide proof of insurance at any time.
(Sec. 1)

3. Instructs the licensed installer to notify ADOH of any changes or cancellations regarding
the insurance coverage. (Sec. 1)

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

Initials HB 2868
2/12/2026 Page 1 Commerce

Attachment | 4

4. Requires an application for license renewal to include evidence of a valid fingerprint
clearance card and proof of the required insurance for authorization to operate until the
renewal license is issued. (Sec. 2)

5. Removes the requirement for the Board of Manufactured Housing to adopt:
a. separate rules for dealer trust and escrow accounts trust and escrow accounts; (Sec.
3)
b. rules establishing procedures for filed cosmetic complaints, including rules for
determining the date of installation of a new manufactured home; and (Sec. 4)
c. rules establishing procedures for scheduling repair and replacement of complaint
items. (Sec. 5)

6. Makes technical changes. (Sec. 2, 4)

Initials HB 2868
2/12/2026 Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2868
DATE February 17, 2026 MOTION: DP
PASS AYE NAY PRESENT | ABSENT

Aguilar i

Blackman ; ff e

Carter N ra ~

Cavero ea

Connolly if

Diaz ra

Hendrix ve A

Villegas

Wilmeth

Way, Vice-Chairman yr vA

Weninger, Chairman a

¥| || 2! o

sly Arf yer,

APPROVED: COMMYITEE SECREFARY

Whi

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT_ 20
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2429: vacation rentals; short-term rentals; occupancy
S/E: same subject
Sponsor: Representative Bliss, LD 1
Committee on Commerce

Summary of the Strike-Everything Amendment to HB 2429

Overview
Includes additional regulations that cities, towns and counties (local governments) may
enforce regarding vacation and short-term rentals.

History
Local governments are statutorily prohibited from preventing vacation rentals or short-term

rentals as well as restricting the use of or regulate vacation rentals or short-term rentals
based on their classification, use or occupancy. Local governments may regulate vacation
rentals or short-term rentals only to the extent as permitted by statute (A.R.S. §§ 9-500.39,

11-269.17).

Provisions

1. Allows a local government to limit the maximum occupancy for an overnight stay in
vacation rentals or short-term rentals to two adults per sleeping area plus up to two
additional persons, not including minors. (Sec.1, 2)

2. Specifies the occupancy limits only apply to guests staying overnight. (Sec. 1, 2)

3. Increases the period, from 12 to 24 months, in which three verified violations must occur
for a local government to suspend a local regulatory license or permit. (Sec. 1, 2)

4. Allows the local government to suspend a local regulatory license or permit after one
verified violation of a building code that presents a serious threat to public health or
safety, that is related to constructing, modifying or altering the rental without a required
building permit or failing to remedy an unsafe or unsanitary condition. (Sec. 1, 2)

5. Clarifies a local government that requires a local regulatory permit or license to adopt an
ordinance requiring sex offender background checks on a vacation rental or short-term
rental booking guest. (Sec. 1, 2)

6. Adds that a city or town may deny issuance of a local regulatory permit or license if the
applicant has unpaid fines or civil penalties for violations of the city's or town's vacation
rental or short-term rental ordinance associated with that property. (Sec. 1)

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

Initials PB/AI HB 2429
2/13/2026 Page 1 Commerce

Attachment t)
ok H8 2427
Bie ttladhment—

Protecting the residential integrity of Arizona’s neighborhood:

https://aznalliance.org/

HOUSEHOLDS & VOTERS AFFECTED BY STRs in AZ LD 13

APPROXIMATE NUMBERS’ AS OF 12/31/22

Senator: Reps:
J.D. Mesnard 602-926-4481 Jeff Weninger 602-926-4392 jweninger@azleg.gov
jmesnard@azleg.gov Julie Willoughby 602-926-3181 jwilloughby@azleg.gov
— VOTE,
#OF vVoTERS| VOTERS = | zishareaw

ZIP CITY/TOWN/AREA | #STRs' | CONTIGUOUS

AFFECTED? LOST? Other LDs?4

HOMES?
85224 Chandler 112 896 1344 168 12
85225 Chandler 198 1580 2370 296 12
85233 Gilbert 96 764 1146 143 12
85234 Gilbert 125 1000 1500 188 10,14
85248 Chandler, Sun Lakes 73 587 880 110 12,16
85249 Chandler 50 396 594 74 14
85286 Chandler 118 944 1416 177 NO
85295 Gilbert 83 664 996 125 14
85296 Gilbert 82 656 984 123 14
85297 Gilbert 76 604 906 113 14
85298 Gilbert 41 324 486 61 14
TOTAL 1052 8415 12622 1578

NOTE: THESE NUMBERS ARE 3 YEARS OLD AND WOULD BE HIGHER NOW,
BUT THEY ARE THE BEST AVAILABLE

1 Ifa zip code is included in more than one LD, the # of STRs listed for each LD is the total STRs in a zip/the # of LDs sharing that zip

2 #of Contiguous Homes = 2-8 X the # of STRs, depending on estimated community density

# of Voters = 1.5 X the # of Homes (Fed. est.)

* Ifa zip code is included in more than one Legislative District, the sharing LDs for that zip are noted

STR estimate methodology available on request

LD 13 STR Lost Affected Voters 260216

Attachment 22
In 2016, Senate Bill 1350 opened the floodgates for Short-Term Rentals (STRs) in Arizona.
We now have over 70,000 STR units. Every one should have a TPT license.

WHY ARE 90% UNLICENSED?

ARIZONA TRANSACTION PRIVILEGE TAX ACCOUNTS - FYE 2016-FYE 2025

2016 2017 2018 2019 2020 2021 2022 2023 2024 wank
HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/ HTL/MTL/STR
STR STR STR STR STR STR STR STR STR oan
TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS | TPTACCTS
Apache 51 54 54 56 48 46 53 60 66 74
Cochise 174 174 157 168 148 156 154 162 178 178
Coconino 409 502 577 630 547 525 638 813 1,059 1,206
Gila 74 75 85 92 86 93 101 128 142 154
Graham 14 14 16 14 14 14 20 20 20 14
Greenlee 12 14 14 12 14 13 17 16 17 13
La Paz 59 60 55 60 67 74 87 91 87 116
Maricopa 987 1,159 1,443 1,745 1,648 1,572 2,220 3,465 4,020 4,482
Mohave 175 223 248 298 268 315 415 520 655 667
Navajo 164 182 201 217 178 166 196 243 289 355
Pima 315 321 418 500 479 461 517 663 832 815
Pinal 111 120 85 152 130 125 144 159 183 223
Santa Cruz 56 51 48 52 45 45 56 56 66 65
Yavapai 255 316 422 492 451 464 595 766 852 918
Yuma 101 97 100 102 89 94 98 109 105 108
TOTAL 2,957 3,362 3,923 4,590 4,212 4,163 5,311
TOTAL HOTEL/MOTEL/STR TPT ACCOUNTS: 7,271 8,571 9,388
P.¢ E LESS HOTEL/MOTEL TPT ACCTS AS OF 6/30/16 (Pre SB 1350): -2,957 -2,957 -2,957
ALA NET INCREASE IN TPT LICENSES FROM FY2016-FY2025: 4,314 5,614 6,431
Re vars si i — LESS ESTIMATED HOTELS ADDED (@20/Year): -140 -160 -180
ALLIANCE APPROXIMATE # OF STR TPT LICENSES: 4,174 5,454 6,251

https://aznalliance.or Bottom Line: Only about 9% of the STRs in Arizona are operating legally.

TPT = Transaction Privilege Tax : all STRs are required to be registered to file & pay on all online lodging transactions pursuant to A.R.S. §42-5005 L.2.

Why Are 90% TPT Unlic FYE 25 - 260216
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ARIZONA

NEIGHBORHOOD
ALLIANCE

Protecting the residential integrity of Arizona's neighborhoods
https://aznalliance.org/

Who is Paying the Biggest Price for

Arizona's Runaway Short-Term Rental Problem?

LEGIS. STRsin |AFFECTED] AFFECTED LOST
LEGISLATORS RANK ; ; A P
DIST. DIST HOMES VOTERS VOTERS
4 Werner/Carter & Gress 1st 7522 60173 90260 11283
1 Finchem/Bliss & Nguyen 2nd 7440 29761 44642 6696
8 Kuby/Connolly & Garcia 3rd 6684 53470 80205 10026
7 Rogers/Blackman & Marshall 4th 5445 28213 42320 4901
30 Angius/Biasiucci & Gillette 5th 3722 28205 42308 2792
6 Hatathlie/Peshlakai & Tsosie 6th 3508 18768 28152 3157
5 Alston/Liguori & Marquez 7th 3123 24985 37478 4685
3 Kavanagh/Chaplik & Kolodin 8th 2789 22311 33466 4184
18 Sundareshan/Gutierrez & Mathis 9th 2019 16155 24232 3029
11 Miranda/Cavero & De Los Santos 10th 1845 14756 22134 2768
29 Shamp/Montenegro & Taylor 11th 1704 13633 20449 2556
12 Epstein/P. Contreras & Travers 12th 1701 13607 20411 2552
9 Burch/Austin & Blattman 13th 1645 13156 19734 2468
25 Dunn/Carbone & Kupper 14th 1585 12677 19016 2378
20 Gonzales/A. Hernandez & Villegas 15th 1323 10574 15861 1985
17 Leach/Keshel & Volk 16th 1291 10331 15496 1937
21 Gabaldon/C. Hernandez & Stahl-Hamilton 417th 1278 8634 12950 1917
16 Shope/Lopez & Martinez 18th 1235 9878 14817 1853
2 Bolick/Simacek & Wilmeth 19th 1190 9518 14277 1785
10 Farnsworth/Heap & Olson 20th 1127 9016 13524 1691
28 CarrolULivingston & Pingerelli 21st 1065 8521 12781 1598
13 Mesnard/Weninger & Willoughby 22nd 1052 8415 12622 1578
27 Payne/Fink & Rivero 23rd 1026 8204 12306 1539
19 Gowan/L. Diaz & Griffin 24th 889 5141 7712 800
22 E. Diaz/L. Contreras & Luna-Najera 25th 882 7055 10582 1323
23 Fernandez/Pena & Sandoval 26th 876 7011 10516 1314
14 Petersen/Hendrix & Khyl 27th 730 5487 8230 1095
26 Bravo/Aguilar & Crews 28th 694 5549 8323 1041
24 Ortiz/L. Hernandez & Abeytia 29th 393 3133 4699 590
15 Hoffman/Carter & Way 30th 392 3139 4708 588
EST. TOTALS (12/31/22): 66175 | 469476 | 704211 86102
EST. TOTALS - NOW (2/31/25): 70000 | 496300 | 744450 105000
1 As of 12/31/22; STR estimate methodology available on request. 2025 numbers by zip code/LD are no longer available, only by "markets"
2 4ot Contiguous Homes=2-8 X the # of STRs, depending on est. of community density
* # of Voters = 1.5 X the # of Homes (Fed. est.)
* In Districts with large concentrations of second homes, estimates of lost Voters are reduced significantly
For further ink Susan Edwards: sedwards@nelghborhoodsconnect.org. Who pays 4 STRs-Leg's260203

Commerce

Fifty-seventh Legislature
H.B. 2429

Second Regular Session

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2429
(Reference to printed bill)

1 Strike everything after the enacting clause and insert:

2 "Section 1. Section 9-500.39, Arizona Revised Statutes, is amended
3 to read:

4 9-500.39. Limits on requlation of vacation rentals and

5 short-term rentals: state preemption; civil

6 penalties: transaction privilege tax license

7 suspension; definitions

8 A. A city or town may not prohibit vacation rentals or short-term
9 rentals.

10 B. A city or town may not restrict the use of or regulate vacation

11 rentals or short-term rentals based on their classification, use or
12 occupancy except as provided in this section. A city or town may regulate
13 vacation rentals or short-term rentals as follows:

14 1. To protect the public's health and safety, including rules and
15 regulations related to fire and building codes, health and sanitation,
16 transportation or traffic control and solid or hazardous waste and
17 pollution control, if the city or town demonstrates that the rule or
18 regulation is for the primary purpose of protecting the public's health
19 and safety.

20 2. To adopt and enforce use and zoning ordinances, including
21 ordinances related to noise, protection of welfare, property maintenance
22 and other nuisance issues, if the ordinance is applied in the same manner
23 as other property classified under sections 42-12003 and 42-12004.

24 3. To limit or prohibit the use of a vacation rental or short-term
rental for the purposes of housing sex offenders, operating or maintaining
26 a sober living home, selling illegal drugs, liquor control or pornography,
27 obscenity, nude or topless dancing and other adult-oriented businesses.

28 4. To require the owner of a vacation rental or short-term rental
29 to provide the city or town with emergency contact information for the
30 owner or the owner's designee who is responsible for responding to
31 complaints or emergencies in a timely manner in person if required by
32 public safety personnel, over the phone or by email at any time of day
33 before offering for rent or renting the vacation rental or short-term
34 rental. In addition to any other penalty imposed pursuant to this
35 section, the city or town may impose a civil penalty of up to $1,000
36 against the owner for every thirty days the owner fails to provide contact
37 information as prescribed by this paragraph. The city or town shall
38 provide thirty days' notice to the owner before imposing the initial civil

3 alty.
9 pen y Adoptec # of Verbals

‘ailed Withdraw

Not Offered Analysts Initials

Attachment ae
House Amendments to H.B. 2429

ON OOP WDM

5. To require the owner of a vacation rental or short-term rental
to obtain and maintain a local regulatory permit or license. As a
condition of issuance of a permit or license, the application for the
permit or license may require an applicant to provide only the following:

(a) The name, address, telephone number and email address for the
owner or owner's agent.

(b) The address of the vacation rental or short-term rental.

(c) Proof of compliance with section 42-5005.

(d) Contact information required pursuant to paragraph 4 of this

subsection.
(e) Acknowledgment of an agreement to comply with all applicable

laws, regulations and ordinances.
(f) A fee not to exceed the actual cost of issuing the permit or

license or $250, whichever is less.

6. To require, before offering a vacation rental or short-term
rental for rent for the first time, the owner or the owner's designee of a
vacation rental or_ short-term rental to notify all single-family
residential properties adjacent to and directly and diagonally across the
street from the vacation rental or short-term rental. Notice shall be
deemed sufficient in a multifamily residential building if given to
residents on the same building floor. A city or town may require
additional notification pursuant to this paragraph if the contact
information previously provided changes. Notification provided’ in
compliance with this paragraph shall include the permit or license number
if required by the city or town, the address of the vacation rental or
short-term rental and the information required pursuant to paragraph 4 of
this subsection. The owner or the owner's designee shall demonstrate
compliance with this paragraph by providing the city or town with an
attestation of notification compliance that consists of the following

information:
(a) The permit or license number of the vacation rental or

short-term rental, if required by the city or town.

(b) The address of each property notified.

(c) A description of the manner in which the owner or owner's
designee chose to provide notification to each property subject to

notification.
(d) The name and contact information of the person attesting to

compliance with this paragraph.

7. To require the owner or owner's designee of a vacation rental or
short-term rental to display the local regulatory permit number or license
number, if any, on each advertisement for a vacation rental or short-term
rental that the owner or owner's designee maintains. A city or town that
does not require a local regulatory permit or license may require the
owner or owner's designee of a vacation rental or short-term rental to
display the transaction privilege tax license number required by section
42-5042 on each advertisement for a vacation rental or short-term rental
that the owner or owner's designee maintains.

-2-
House Amendments to H.B. 2429

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8. To require the vacation rental or short-term rental to maintain
liability insurance appropriate to cover the vacation rental or short-term
rental in the aggregate of at least $500,000 or to advertise and offer
each vacation rental or short-term rental through an online lodging
marketplace that provides equal or greater coverage.

9. To require the owner of a vacation rental or short-term rental
to reside on the property if the property contains an accessory dwelling
unit and if a certificate of occupancy, certificate of completion or
similar final approval for the accessory dwelling unit was issued by the
municipality on or after September 14, 2024. This paragraph does not
apply to an owner of a vacation rental or short-term rental if the
property contains an accessory dwelling unit and the certificate of
completion, the certificate of occupancy or a similar final approval for
the accessory dwelling unit was issued on or before September 13, 2024.

10. FOR LIMITS ON OCCUPANCY, THE MAXIMUM OCCUPANCY FOR AN OVERNIGHT
STAY IN A VACATION RENTAL OR SHORT-TERM RENTAL SHALL BE CALCULATED AS
FOLLOWING:

(a) THE MAXIMUM OCCUPANCY FOR OVERNIGHT STAYS FOR A VACATION RENTAL
OR SHORT-TERM RENTAL UNIT SHALL BE LIMITED TO TWO ADULTS PER SLEEPING AREA
PLUS UP TO TWO ADDITIONAL PERSONS, NOT INCLUDING MINORS.

(b) OCCUPANCY LIMITS FOR VACATION RENTAL OR SHORT-TERM RENTAL UNITS
SHALL ONLY APPLY TO GUESTS STAYING OVERNIGHT.

C. A city or town 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 city or town 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 (e) 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 for the same vacation rental or short-term rental.

4. The applicant provides false information.

5. The owner or owner's designee of a vacation rental or short-term
rental is a registered sex offender or has been convicted of any felony
offense that resulted in death or serious physical injury or any felony
use of a deadly weapon within the past five years.

6. THE APPLICANT HAS UNPAID FINES OR CIVIL PENALTIES FOR VIOLATIONS
OF THE CITY’S OR TOWN'S VACATION RENTAL OR SHORT-TERM RENTAL ORDINANCE
ASSOCIATED WITH THAT PROPERTY.

D. A city or town that requires a local regulatory permit or
license pursuant to this section shall adopt an ordinance to allow the
city or town to initiate an administrative process to suspend a local
regulatory permit or license for a period of up to twelve months for the

following verified violations associated with a property:
1. Three verified violations within a twetve~morrth TWENTY-FOUR-

MONTH period, not including any verified violation based on an aesthetic,
-3-
House Amendments to H.B. 2429

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solid waste disposal or vehicle parking violation that is not also a
serious threat to public health and safety.

2. One verified violation that results in or constitutes any of the
following:

(a) A felony offense committed at or in the vicinity of a vacation
rental or short-term rental by the vacation rental or short-term rental
owner or owner's designee.

(b) A serious physical injury or wrongful death at or related to a
vacation rental or_ short-term rental resulting from the’ knowing,
intentional or reckless conduct of the vacation rental or short-term
rental owner or owner's designee.

(c) An owner or owner's designee knowingly or intentionally housing
a sex offender, allowing offenses related to adult-oriented businesses,
sexual offenses or prostitution, or operating or maintaining a _ sober
living home, in violation of a regulation or ordinance adopted pursuant to
subsection B, paragraph 3 of this section.

(d) An owner or owner's designee knowingly or intentionally
allowing the use of a vacation rental or short-term rental for a special
event that would otherwise require a permit or license pursuant to a city
or town ordinance or a state law or rule or for a retail, restaurant,

banquet space or other similar use.
(e) A VIOLATION OF A BUILDING CODE THAT PRESENTS A SERIOUS THREAT

TO PUBLIC HEALTH OR SAFETY THAT IS RELATED TO CONSTRUCTING, MODIFYING OR
ALTERING A VACATION RENTAL OR SHORT-TERM RENTAL WITHOUT A REQUIRED
BUILDING PERMIT OR FAILING TO REMEDY AN UNSAFE OR UNSANITARY CONDITION.

3. Notwithstanding paragraphs 1 and 2 of this subsection, any
attempted or completed felony offense, arising from the occupancy or use
of a vacation rental or short-term rental, that results in a death, or
actual or attempted serious physical injury, shall be grounds for judicial
relief in the form of a suspension of the property's use as a vacation
rental or short-term rental for a period of time that shall not exceed

twelve months.
E. A city or town that requires A LOCAL REGULATORY PERMIT OR

LICENSE PURSUANT TO THIS SECTION SHALL ADOPT AN ORDINANCE REQUIRING sex
offender background checks on a vacation rental or short-term rental
BOOKING guest AND shall waive the requirement if an online lodging
marketplace performs a sex offender background check of the booking guest.

F. Notwithstanding any other law, a city or town may impose a civil
penalty of the following amounts against an owner of a vacation rental or
short-term rental if the owner receives one or more verified violations
related to the same vacation rental or short-term rental property within
the same twelve-month period:

1. Up to $500 or up to an amount equal to one night's rent for the
vacation rental or short-term rental as advertised, whichever is greater,
for the first verified violation.

2. Up to $1,000 or up to an amount equal to two nights' rent for
the vacation rental or short-term rental as advertised, whichever is

greater, for the second verified violation.
-4-
House Amendments to H.B. 2429

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3. Up to $3,500 or up to an amount equal to three nights' rent for
the vacation rental or short-term rental as advertised, whichever is
greater, for a third and any subsequent verified violation.

G. A vacation rental or short-term rental that fails to apply for a
local regulatory permit or license in accordance with subsection B,
paragraph 5 of this section, within thirty days of the local regulatory
permit or license application process being made available by the city or
town issuing such permits or licenses, must cease operations. In addition
to any civil penalties imposed pursuant to subsection F of this section, a
city or town may impose a civil penalty of up to $1,000 per month against
the owner if the owner or owner's designee fails to apply for a regulatory
permit or license within thirty days after receiving written notice of the
failure to comply with subsection B, paragraph 5 of this section.

H. If multiple verified violations arise out of the same response
to an incident at a vacation rental or short-term rental, those verified
violations are considered one verified violation for the purpose of
assessing civil penalties or suspending the regulatory permit or license
of the owner pursuant to this section.

I. If the owner of a vacation rental or short-term rental has
provided contact information to a city or town pursuant to subsection B,
paragraph 4 of this section and if the city or town issues a citation for
a violation of the city's or town's applicable laws, regulations or
ordinances or a state law that occurred on the owner's vacation rental or
short-term rental property, the city or town shall make a reasonable
attempt to notify the owner or the owner's designee of the citation within
seven business days after the citation is issued using the contact
information provided pursuant to subsection B, paragraph 4 of this
section. If the owner of a vacation rental or short-term rental has not
provided contact information pursuant to subsection B, paragraph 4 of this
section, the city or town is not required to provide such notice.

J. This section does not exempt an owner of a residential rental
property, as defined in section 33-1901, from maintaining with the
assessor of the county in which the property is located information
required under title 33, chapter 17, article 1.

K. A vacation rental or short-term rental may not be used for
nonresidential uses, including for a special event that would otherwise
require a permit or license pursuant to a city or town ordinance or a
state law or rule or for a retail, restaurant, banquet space or other
similar use.

L. For the purposes of this section:
1. "Accessory dwelling unit" has the same meaning prescribed in

section 9-461.18.
2. “Online lodging marketplace" has the same meaning prescribed in

section 42-5076.
3. "Transient" has the same meaning prescribed in section 42-5070.

4. "Vacation rental" or “short-term rental":
(a) Means any individually or collectively owned single-family or

one-to-four-family house or dwelling unit or any unit or group of units in

-5-
House Amendments to H.B. 2429

a condominium or cooperative that is also a transient public lodging
establishment or owner-occupied residential home offered for transient use
if the accommodations are not classified for property taxation under
section 42-12001.

(b) Does not include a unit that is used for any nonresidential
use, including retail, restaurant, banquet space, event center or another
similar use.

5. "Verified violation" means a finding of guilt or civil
responsibility for violating any state law or local ordinance relating to
a purpose prescribed in subsection B, D, F or K of this section that has

been finally adjudicated.
Sec. 2. Section 11-269.17, Arizona Revised Statutes, is amended to

read:

11-269.17. Limits on regulation of vacation rentals and
short-term rentals: state preemption; civil
penalties: transaction privilege tax license
suspension; definitions

A. A county may not prohibit vacation rentals or short-term
rentals.

B. A county may not restrict the use of or regulate vacation
rentals or short-term rentals based on their classification, use or
occupancy except as provided in this section. A county may regulate
vacation rentals or short-term rentals within the unincorporated areas of
the county as follows:

1. To protect the public's health and safety, including rules and
regulations related to fire and building codes, health and sanitation,
transportation or traffic control and solid or hazardous waste and
pollution control, if the county demonstrates that the rule or regulation
is for the primary purpose of protecting the public's health and safety.

2. To adopt and enforce use and zoning ordinances, including
ordinances related to noise, protection of welfare, property maintenance
and other nuisance issues, if the ordinance is applied in the same manner
as other property classified under sections 42-12003 and 42-12004.

3. To limit or prohibit the use of a vacation rental or short-term
rental for the purposes of housing sex offenders, operating or maintaining
a sober living home, selling illegal drugs, liquor control or pornography,
obscenity, nude or topless dancing and other adult-oriented businesses.

4. To require the owner of a vacation rental or short-term rental
to provide the county with emergency contact information for the owner or
the owner's designee who is responsible for responding to complaints or
emergencies in a timely manner in person if required by public safety
personnel, over the phone or by email at any time of day before offering
for rent or renting the vacation rental or short-term rental. In addition
to any other penalty imposed pursuant to this section, the county may
impose a civil penalty of up to $1,000 against the owner for every thirty
days the owner fails to provide contact information as prescribed by this
paragraph. The county shall provide thirty days' notice to the owner

before imposing the initial civil penalty.
-6-

House Amendments to H.B. 2429

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5. To require the owner of a vacation rental or short-term rental
to obtain and maintain a local regulatory permit or license. As a
condition of issuance of a permit or license, the application for the
permit or license may require an applicant to provide only the following:

(a) The name, address, telephone number and email address for the
owner or owner's agent.

(b) The address of the vacation rental or short-term rental.

(c) Proof of compliance with section 42-5005.

(d) Contact information required pursuant to paragraph 4 of this

subsection.
(e) Acknowledgment of an agreement to comply with all applicable

laws, regulations and ordinances.
(f) A fee not to exceed the actual cost of issuing the permit or

license or $250, whichever is less.

6. To require, before offering a vacation rental or short-term
rental for rent for the first time, the owner or the owner's designee of a
vacation rental or _ short-term rental to notify all single-family
residential properties adjacent to and directly and diagonally across the
street from the vacation rental or short-term rental. Notice shall be
deemed sufficient in a multifamily residential building if given to
residents on the same building floor. A county may require additional
notification pursuant to this paragraph if the contact information
previously provided changes. Notification provided in compliance with
this paragraph shall include the permit or license number if required by
the county, the address of the vacation rental or short-term rental and
the information required pursuant to paragraph 4 of this subsection. The
owner or the owner's designee shall demonstrate compliance with this
paragraph by providing the county with an attestation of notification
compliance that consists of the following information:

(a) The permit or license number of the vacation rental or
short-term rental, if required by the county.

(b) The address of each property notified.

(c) A description of the manner in which the owner or owner's
designee chose to provide notification to each property subject to

notification.
(d) The name and contact information of the person attesting to

compliance with this paragraph.

7. To require the owner or owner's designee of a vacation rental or
short-term rental to display the local regulatory permit number or license
number, if any, on each advertisement for a vacation rental or short-term
rental that the owner or owner's designee maintains. A county that does
not require a local regulatory permit or license may require the owner or
owner's designee of a vacation rental or short-term rental to display the
transaction privilege tax license number required by section 42-5042 on
each advertisement for a vacation rental or short-term rental that the
owner or owner's designee maintains.

8. To require the vacation rental or short-term rental to maintain
liability insurance appropriate to cover the vacation rental or short-term

-7-
House Amendments to H.B. 2429

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rental in the aggregate of at least $500,000 or to advertise and offer
each vacation rental or short-term rental through an online lodging
marketplace that provides equal or greater coverage.

9. To require the owner of a vacation rental or short-term rental
to reside on the property if the property contains an accessory dwelling
unit and if a certificate of occupancy, certificate of completion or
similar final approval for the accessory dwelling unit was issued by the
county on or after September 14, 2024. This paragraph does not apply to
an owner of a vacation rental or short-term rental if the property
contains an accessory dwelling unit and the certificate of completion, the
certificate of occupancy or a similar final approval for the accessory
dwelling unit was issued on or before September 13, 2024.

10. FOR LIMITS ON OCCUPANCY, THE MAXIMUM OCCUPANCY FOR AN OVERNIGHT
STAY IN A VACATION RENTAL OR SHORT-TERM RENTAL SHALL BE CALCULATED AS
FOLLOWING:

(a) THE MAXIMUM OCCUPANCY FOR OVERNIGHT STAYS FOR A VACATION RENTAL
OR SHORT-TERM RENTAL UNIT SHALL BE LIMITED TO TWO ADULTS PER SLEEPING AREA
PLUS UP TO TWO ADDITIONAL PERSONS, NOT INCLUDING MINORS.

(b) OCCUPANCY LIMITS FOR UNITS SHALL ONLY APPLY TO GUESTS STAYING
OVERNIGHT.

C. 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
11-1602, 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 (e) 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 for the same vacation rental or short-term rental.

4. The applicant provides false information.

5. The owner or owner's designee of a vacation rental or short-term
rental is a registered sex offender or has been convicted of any felony
offense that results in death or serious physical injury or any felony use
of a deadly weapon within the past five years.

D. A county that requires a local regulatory permit or license
pursuant to this section shall adopt an ordinance to allow the county to
initiate an administrative process to suspend a local regulatory permit or
license for a period of up to twelve months for the following verified

violations associated with a property:
1. Three verified violations within a twetvemontth TWENTY-FOUR-

MONTH period, not including any verified violation based on an aesthetic,
solid waste disposal or vehicle parking violation that is not also a
serious threat to public health or safety.

2. One verified violation that results in or constitutes any of the

following:
House Amendments to H.B. 2429

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(a) A felony offense committed at or in the vicinity of a vacation
rental or short-term rental by the vacation rental or short-term rental
owner or owner's designee.

(b) A serious physical injury or wrongful death at or related to a
vacation rental or_ short-term rental resulting from the _ knowing,
intentional or reckless conduct of the vacation rental or short-term
rental owner or owner's designee.

(c) An owner or owner's designee knowingly or intentionally housing
a sex offender, allowing offenses related to adult-oriented businesses,
sexual offenses or prostitution, or operating or maintaining a_ sober
living home, in violation of regulation or ordinance adopted pursuant to
subsection B, paragraph 3 of this section.

(d) An owner or owner's designee knowingly or intentionally
allowing the use of a vacation rental or short-term rental for a special
event that would otherwise require a permit or license pursuant to a
county ordinance or a state law or rule or for a retail, restaurant,

banquet space or other similar use.
(e) A VIOLATION OF A BUILDING CODE THAT PRESENTS A SERIOUS THREAT

TO PUBLIC HEALTH OR SAFETY THAT IS RELATED TO CONSTRUCTING, MODIFYING OR
ALTERING A VACATION RENTAL OR SHORT-TERM RENTAL WITHOUT A _ REQUIRED
BUILDING PERMIT OR FAILING TO REMEDY AN UNSAFE OR UNSANITARY CONDITION.

3. Notwithstanding paragraphs 1 and 2 of this subsection, any
attempted or completed felony offense, arising from the occupancy or use
of a vacation rental or short-term rental, that results in a death, or
actual or attempted serious physical injury, shall be grounds for judicial
relief in the form of a suspension of the property's use as a vacation
rental or short-term rental for a period of time that shall not exceed

twelve months.
E. A county that requires A LOCAL REGULATORY PERMIT OR LICENSE

PURSUANT TO THIS SECTION SHALL ADOPT AN ORDINANCE REQUIRING sex offender
background checks on a vacation rental or short-term rental BOOKING guest
AND shall waive the requirement if an online lodging marketplace performs
a sex offender background check of the booking guest.

F. Notwithstanding any other law, a county may impose a civil
penalty of the following amounts against an owner of a vacation rental or
short-term rental if the owner receives one or more verified violations
related to the same vacation rental or short-term rental property within
the same twelve-month period:

1. Up to $500 or up to an amount equal to one night's rent for the
vacation rental or short-term rental as advertised, whichever is greater,
for the first verified violation.

2. Up to $1,000 or up to an amount equal to two nights' rent for
the vacation rental or short-term rental as advertised, whichever is
greater, for the second verified violation.

3. Up to $3,500 or up to an amount equal to three nights' rent for
the vacation rental or short-term rental as advertised, whichever is
greater, for a third and any subsequent verified violation.

-9-
House Amendments to H.B. 2429

OnNOONBP WDM

G. A vacation rental or short-term rental that fails to apply for a
local regulatory permit or license in accordance with subsection B,
paragraph 5 of this section, within thirty days of the local regulatory
permit or license application process being made available by the county
issuing such permits or licenses, must cease operations. In addition to
any civil penalties imposed pursuant to subsection F of this section, a
county may impose a civil penalty of up to $1,000 per month against the
owner if the owner or owner's designee fails to apply for a regulatory
permit or license within thirty days after receiving written notice of the
failure to comply with subsection B, paragraph 5 of this section.

H. If multiple verified violations arise out of the same response
to an incident at a vacation rental or short-term rental, those verified
violations are considered one verified violation for the purpose of
assessing civil penalties or suspending the regulatory permit or license
of the owner pursuant to this section.

I. If the owner of a vacation rental or short-term rental has
provided contact information to a county pursuant to subsection B,
paragraph 4 of. this section and if the county issues a citation for a
violation of the county's applicable laws, regulations or ordinances or a
state law that occurred on the owner's vacation rental or short-term
rental property, the county shall make a reasonable attempt to notify the
owner or the owner's designee of the citation within seven business days
after the citation is issued using the contact information provided
pursuant to subsection B, paragraph 4 of this section. If the owner of a
vacation rental or short-term rental has not provided contact information
pursuant to subsection B, paragraph 4 of this section, the county is not
required to provide such notice.

J. This section does not exempt an owner of a residential rental
property, as defined in section 33-1901, from maintaining with the
assessor of the county in which the property is located information
required under title 33, chapter 17, article 1.

K. A vacation rental or short-term rental may not be used for
nonresidential uses, including for a special event that would otherwise
require a permit or license pursuant to a county ordinance or a state law
or rule or for a retail, restaurant, banquet space or other similar use.

L. For the purposes of this section:

1. "Accessory dwelling unit" has the same meaning prescribed in
section 11-810.01.
2. "Online lodging marketplace" has the same meaning prescribed in

section 42-5076.
3. "Transient" has the same meaning prescribed in section 42-5070.

4. "Vacation rental" or “short-term rental":

(a) Means any individually or collectively owned single-family or
one-to-four-family house or dwelling unit or any unit or group of units in
a condominium or cooperative that is also a transient public lodging
establishment or owner-occupied residential home offered for transient use
if the accommodations are not classified for property taxation under

section 42-12001.
-10-
House Amendments to H.B. 2429

On anP WMH

(b) Does not include a unit that is used for any nonresidential
use, including retail, restaurant, banquet space, event center or another
similar use.

5. "Verified violation" means a finding of guilt or civil
responsibility for violating any state law or local ordinance relating to
a purpose prescribed in subsection B, D, F or K of this section that has
been finally adjudicated."

Amend title to conform

JEFF WENINGER

2429WENINGER SE.docx
02/13/2026
09:04 AM

H:

PB/1s

130BBZYSQ

-11-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO. __HB 2429

DATE

February 17, 2026

MOTION: _ DPA S/E

PASS

>
<
mi

NAY PRESENT | ABSENT

Aguilar

Blackman

Carter N

VA

WA

Cavero

Connolly

Diaz

vw

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

—

Weninger, Chairman

APPROVED:

YE Gr>_—

—_—

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

PUN AIN, INA AK

Z O

bel SEGRETARY

ATTACHMENT. 27

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 4011: HOAs; duties
Sponsor: Representative Pingerelli, LD 28
Committee on Commerce

Overview
Declares an HOA has a duty to act reasonably in the exercise of their discretionary powers.

History
A condominium or planned community association (HOA) is formed and organized under

governing documents which include a declaration, bylaws and articles of incorporation, if
any. An HOA is responsible for managing, maintaining and improving community property.
Members of the association elect a board of directors who are given general management
powers to act on behalf of the association (Title 33, Chapters 9 & 16, A.R.S.).

Provisions
1. Asserts condominium and planned community associations have a duty to act reasonably
in the exercise of its discretionary powers. (Sec. 1, 2)

2. Defines duty to act reasonably as the duty to exercise discretionary powers neutrally,
fairly, without favoritism and in a nonarbitrary fashion. (Sec. 1, 2)

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

Initials PB/AI HB 4011
2/13/2026 Page 1 Commerce

Attachment 25
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 4011

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 4011
(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.
[GREEN-STREKEOGUT-HiI-BRACKETS] indicates new text removed from statute
or previously enacted session law.
(Green—strikeoutirbrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<freer—strtkeout—i1r-carets>> indicates a section removed from the bill.

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

2 Section 1. Section 33-1242, Arizona Revised Statutes, is amended to
3 read:

4 33-1242. Powers of unit owners' association; notice to unit

5 owner of violation

6 A. Subject to the provisions of the declaration, the association
7 may:

8 1. Adopt and amend bylaws and rules.

9 2. Adopt and amend budgets for revenues, expenditures and reserves
10 and collect assessments for common expenses from unit owners.

11 3. Hire and discharge managing agents and other employees, agents
12 and independent contractors.

13 4. Institute, defend or intervene in litigation or administrative

14 proceedings in its own name on behalf of itself or two or more unit owners
15 on matters affecting the condominium.

16 5. Make contracts and incur liabilities.

dey, 6. Regulate the use, maintenance, repair, replacement and
18 modification of common elements.

19 7. Cause additional improvements to be made as a part of the common
20 elements.

21 8. Acquire, hold, encumber and convey in its own name any right,

22 title or interest to real or personal property, except that common
23 elements may be conveyed or subjected to a security interest only pursuant

24 to section 33-1252.
25 9. Grant easements, leases, licenses and concessions through or

26 over the common elements.

A dopte # of Verbal:

ailec Withdraw

Not Offered \ Analysts Initial:

Attachment 2
House Amendments to H.B. 4011

ANNAN WNHE

10. Impose and receive any payments, fees or charges for the use,
rental or operation of the common elements other than limited common
elements described in section 33-1212, paragraphs 2 and 4 and for services
provided to unit owners.

11. Impose charges for late payment of assessments after the
association has provided notice that the assessment is overdue or provided
notice that the assessment is considered overdue after a certain date and,
after notice and an opportunity to be heard, impose reasonable monetary
penalties on unit owners for violations of the declaration, bylaws and
rules of the association.

12. Impose reasonable charges for the preparation and recordation
of amendments to the declaration or statements of unpaid assessments.

13. Provide for the indemnification of its officers and executive
board of directors and maintain directors" and officers' liability
insurance.

14. Assign its right to future income, including the right to
receive common expense assessments, but only to the extent the declaration
expressly provides.

15. Be a member of a master association or other entity owning,
maintaining or governing in any respect any portion of the common elements
or other property benefitting or related to the condominium or the unit
owners in any respect.

16. Exercise any other powers conferred by the declaration or
bylaws.

17. Exercise all other powers that may be exercised in this state
by legal entities of the same type as the association.

18. Exercise any other powers necessary and proper for. the
governance and operation of the association.

B. A unit owner who receives a written notice that the condition of
the property owned by the unit owner is in violation of a requirement of
the condominium documents without regard to whether a monetary penalty is
imposed by the notice may provide the association with a written response
by sending the response by certified mail within twenty-one calendar days
after the date of the notice. The response shall be sent to the address
identified in the notice.

C. Within ten business days after receipt of the certified mail
containing the response from the unit owner, the association shall respond
to the unit owner with a written explanation regarding the notice that
shall provide at least the following information unless_ previously
provided in the notice of violation:

1. The provision of the condominium documents that has allegedly
been violated.

2. The date of the violation or the date the violation was
observed.
House Amendments to H.B. 4011

OANA OF WNP

3. The first and last name of the person or persons who observed
the violation.

4. The process the unit owner must follow to contest the notice.

D. Unless the information required in subsection C, paragraph 4 of
this section is provided in the notice of violation, the association shall
not proceed with any action to enforce the condominium documents,
including the collection of attorney fees, before or during the time
prescribed by subsection C of this section regarding the exchange of
information between the association and the unit owner and shall give the
unit owner written notice of the unit owner's option to petition for an
administrative hearing on the matter in the state real estate department
pursuant to section 32-2199.01. At any time before or after completion
of the exchange of information pursuant to this section, the unit owner
may petition for a hearing pursuant to section 32-2199.01 if the dispute
is within the jurisdiction of the state real estate department as
prescribed in section 32-2199.01.

E. [IN ADDITION TO THE DUTIES PRESCRIBED BY STATUTE AND THE
CONDOMINIUM DOCUMENTS,] THE ASSOCIATION HAS [A—BtFR¥] [THE FOLLOWING DUTIES
TO THE MEMBERS OF THE ASSOCIATION:

1.) TO ACT REASONABLY IN THE EXERCISE OF ITS DISCRETIONARY POWERS
[._ INCLUDING RULEMAKING, ENFORCEMENT AND DESIGN CONTROL POWERS]. [FOR-FHE
PURPOSES—OF FATS ‘SUBSECTHONS "BUF T-F6 ACT REASONABLE THELUBES THE BUF I-F6
EXERECTSE-BISEREFTONARY- POWERS THEGTRALEEY; J

(2. TO TREAT UNIT OWNERS] FAIRLY (>—HHHTOUT—FAVORTFESI—AND—Ht-’”
HONARBLFERARY-FASHTON] .

[3. TO PROVIDE UNIT OWNERS REASONABLE ACCESS TO INFORMATION ABOUT
THE ASSOCIATION, THE COMMON ELEMENTS AND THE FINANCIAL AFFAIRS OF THE
ASSOCIATION.

4. TO USE ORDINARY CARE AND PRUDENCE IN MANAGING THE PROPERTY AND
FINANCIAL AFFAIRS OF THE CONDOMINIUM THAT ARE SUBJECT TO ITS CONTROL.)

Sec. 2. Title 33, chapter 16, article 1, Arizona Revised Statutes, is
amended by adding section 33-1821, to read:

33-1821. Association's duty to act reasonably

[Av] [IN_ADDITION TO THE DUTIES PRESCRIBED BY STATUTE AND THE
COMMUNITY DOCUMENTS, ] THE ASSOCIATION HAS [A—BUFT] [IHE FOLLOWING DUTIES
TO THE MEMBERS OF THE ASSOCIATION:

1.J] TO ACT REASONABLY IN THE EXERCISE OF ITS DISCRETIONARY POWERS
[. INCLUDING RULEMAKING, ENFORCEMENT AND DESIGN CONTROL POWERS].

[B>— FORTHE PURPOSES OFFS SECFH ON "BUF FA FREAS ONABET*
TNELCUBES-HHEBUFY-TO-EXERETSE-BISEREFTEONARY-POHERS THEGERATENS J

(2. TO TREAT MEMBERS] FAIRLY [77—HHHOUT—FAVORTFESIt—AND— Ht”
NONARBEFRARY-FASHTON] .

[3. TO PROVIDE MEMBERS REASONABLE ACCESS TO INFORMATION ABOUT THE
ASSOCIATION, THE COMMON ELEMENTS AND THE FINANCIAL AFFAIRS OF THE
ASSOCIATION.

House Amendments to H.B. 4011

1 4. TO USE ORDINARY CARE AMD PRUDENCE IN MANAGING THE PROPERTY AND
FINANCIAL AFFAIRS OF THE COMMUNITY THAT ARE SUBJECT TO ITS CONTROL.)

3 Enroll and engross to conform

4 Amend title to conform

NEAL CARTER

4011CARTER N.docx
02/16/2026

1:57 PM

C: MR

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. __HB4011

DATE. February 17, 2026 motion: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

AANAAARKINAAA

Weninger, Chairman

—
ed

O!| O!| O

APPROVED: eerie SECRATARY

Sut, ——$
JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. &°7
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2397: homeowners' associations; property covenants; disclosures
Sponsor: Representative Biasiucci, LD 30
Committee on Commerce

Overview
Makes revision to Condominium and Planned Communities statutes relating to the sale of

units or properties.

History
A condominium or planned community association (HOA) is formed and organized under

governing documents which include a declaration, bylaws and articles of incorporation, if
any. An HOA is responsible for managing, maintaining and improving community property.
Members of the association elect a board of directors who are given general management
powers to act on behalf of the association (Title 33, Chapters 9 & 16, A.R.S.).

Provisions
Private Covenants
1. Includes a stipulation that the private covenant does not violate public policy for the
covenant to the criteria in determining the validity and enforceability of a covenant. (Sec.
1)
2. Provides characteristics of a covenant that constitute a violation of public policy. (Sec. 1)

3. Allows any property owner that is subject to a private covenant to challenge the validity
of any provision in that covenant in a court of competent jurisdiction. (Sec. 1)

4. Defines pertinent terms. (Sec. 1)

Condominiums
5. Restates, for condominiums with fewer than 50 units, that a unit owner must
electronically transmit specified information to the purchaser within 10 calendar days
after acceptance of the purchaser's offer to purchase. (Sec. 2)

6. Allows the unit owner to request the association to provide the unit owner with the
specified information on listing the unit for sale. (Sec. 2)

7. Restates, for condominiums with 50 units or more, that the association must electronically
transmit specified information to the purchaser within 10 calendar days after receipt of a
written notice of a pending sale containing the name, email address and mailing address
of the purchaser. (Sec. 2)

8. Modifies the specified information contained in the dated statement that must be sent to
the purchaser prior to sale. (Sec. 2)

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

Initials PB HB 2397
2/13/2026 Page 1 Commerce
Attachment 2g

a
10.

1

12.

13.

14,

15.

16.

17.

18.

19.

20.

21.

22.

Outlines additional information that must be provided to the purchaser prior to sale,
relating to declarant control, percentage of units owned by an owner and viewing a
summarized report in its entirety. (Sec. 2)

Adds that a purchaser may accept the reported information, propose a cure to address
any concerns identified in the reported information or withdraw the offer without penalty
or loss of earnest money. (Sec. 2)

Requires the completed disclosure report be returned to the seller if a contract is canceled.
(Sec. 2)

Clarifies that a purchaser or seller may pursue all remedies at law against the unit owner
for providing materially false or misleading statements in the disclosure report. (Sec. 2)

Requires the association to provide to an escrow agent any requested information that is
relevant to the close of the escrow at no cost. (Sec. 2)

Allows the association to charge a nominal fee to the purchaser for compensation for
updating the new owner information in the association records. (Sec. 2)

Specifies any payment for fees associated with the disclosure report must be made directly
and only to the association. (Sec. 2)

Requires the declarant, for initial sales of a condominium unit from the declarant, to
provide to any purchaser the prescribed documents relating to the disclosure report. (Sec.
2)

Planned Communities
Declares any provision of a declaration that would impose mandatory assessments for
membership in a private recreational club or for the maintenance or use of separate public
or private property that is not owned by the association is invalid and unenforceable. (Sec.
4)

Specifies any prescribed creates both an unreasonable restraint on alienation and on

trade or competition and applies the following:

a. the board of directors of any association that has a declaration that contains such a
provision shall remove that provision by amendment to the declaration; and

b. the association may not use common expense assessments for the maintenance, use
or subsidy of third-party public or private property that is not directly owned by the
association. (Sec. 4)

Authorizes the association allow the use of resources or monies to effect the emergency
repairs and bill the public or private entity that owns the separate property for the costs
of the repairs if emergency measure are taken to maintain access to the association's
property. (Sec 4)

Allows the association to provide for voluntary assessments on individual property for the
use of third-party property, recreational facilities or other facilities. (Sec. 4)

Restates, for communities with fewer than 50 properties, that a member must
electronically transmit specified information to the purchaser within 10 calendar days
after acceptance of the purchaser's offer to purchase. (Sec. 5)

Allows the member to request the association to provide the member with the specified
information on listing the property for sale. (Sec. 5)

Initials PB HB 2397
2/13/2026 Page 2 Commerce
23. Restates, for communities with 50 properties or more, that the association must
electronically transmit specified information to the purchaser within 10 calendar days
after receipt of a written notice of a pending sale containing the name, email address and
mailing address of the purchaser. (Sec. 5)

24. Modifies the specified information contained in the dated statement that must be sent to
the purchaser prior to sale. (Sec. 5)

25. Outlines additional information that must be provided to the purchaser prior to sale,
relating to declarant control and viewing a summarized report in its entirety. (Sec. 5)

26. Adds that a purchaser may accept the reported information, propose a cure to address
any concerns identified in the reported information or withdraw the offer without penalty
or loss of earnest money. (Sec. 5)

27. Requires the completed disclosure report be returned to the seller if a contract is canceled.
(Sec. 5)

28. Clarifies that a purchaser or seller may pursue all remedies at law against the member
for providing materially false or misleading statements in the disclosure report. (Sec. 5)

29. Requires the association to provide to an escrow agent any requested information that is
relevant to the close of the escrow at no cost. (Sec. 5)

30. Allows the association to charge a nominal fee to the purchaser for compensation for
updating the new owner information in the association records. (Sec. 5)

31. Specifies any payment for fees associated with the disclosure report must be made directly
and only to the association. (Sec. 5)

32. Requires the declarant, for initial sales of a property from the declarant, to provide to any
purchaser the prescribed documents relating to the disclosure report. (Sec. 5)

33. Defines member and association. (Sec. 3,5)

Initials PB HB 2397
2/13/2026 Page 3 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2397

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2397
(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.

[GREEN-STRIKESUT-FHI- BRACKETS] indicates new text removed from statute

or previously enacted session law.

(Green—str+kevut—irbrackets] indicates text removed from existing statute,
previously enacted session law or new session law.

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

<<Green—strtkeout—rcarets>> indicates a section removed from the bill.

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

<<Secttron—-t—Sectton—33- 440 ar itzora—Revised Statutes, —_ts—amencted
dectaratton; tte tirrttorrs

Ay Ar omrrer—of—reat— property —may—enrter—itrto—a—_pr-tvate—coverrant

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Attachment 24

House Amendments to H.B. 2397

ONAN RWDMY FP

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to—any—extsting—private—coverrant—or—_tecttaration—urtess—_the—prtvate
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MMCTUQTTY CTE GSsenmt OT ally THUTVTUUdTS OT EMmUtTUtTes titat dre SPECTITeQ tit
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property
House Amendments to H.B. 2397

OmnNanf WHY FE

UNCONSCTONABLE; > >

Section 1. Section 33-1260, Arizona Revised Statutes, is amended to
read:

33-1260. Sale of units; information required; fees; civil

penalty; applicability; definition

A. [EXCEPT—AS—PRESERTSED—BY—_SUBSEECTTON—_T OF THES —SECTTON,] For
condominiums with fewer than fifty units, a unit owner’ shall matt
ELECTRONICALLY TRANSMIT or deliver to a purchaser [or a purchaser's]
authorizet [DESIGNATED] [agent] THE INFORMATION REQUIRED BY THIS
SUBSECTION within ten [€AtENDAR] days after [receipt of a written notice
of a pending sale of the unit]>—amd [ACECEPTANECE—OF—THE-PUREHASER'SOFFER
FO—-PUREHAS ES TAA EER THAT REG ES TFT KS SCE TATEON-TO-PROVEBETHE
CCH ER AFA ETF RAT EON REUTER EB BY FES —_SUBS EE TT ON-R-E FS THANE ATE
UNFF-—FOR-—SALE]. For condominiums with fifty or more units, the
association shall mart ELECTRONICALLY TRANSMIT or deliver to a purchaser
[ora purchaser's] «auttorizect [DESIGNATED] [agent] within ten [€AtENDAR]
days after receipt of a written notice of a pending sale that contains the
name, EMAIL ADDRESS and MAILING address of the purchaser [OR THE
PURCHASER'S DESIGNATED AGENT] all of the following in either paper or
electronic format:

1. A copy of the CURRENT bylaws and the CURRENT rules of the
association.

2. A copy of the CURRENT RECORDED declaration AND [FINAL] PLAT[.,_OR
AN ELECTRONIC COPY OF THE FINAL PLAT, IF AVAILABLE].

[3. A COPY OF THE MINUTES OF ALL OPEN MEETINGS OF THE BOARD OF
DIRECTORS FOR THE PREVIOUS THREE MONTHS. ]

[37] [4.] A dated statement containing [OR-TDENTTPYTHE]:

(a) The telephone number and address of a principal contact for the
association, which may be an association manager, an _ association
Management company, an officer of the association or any other person
designated by the board of directors.

(b) The amount of the ANNUAL common expense assessment for the
unit, amt THE REQUIRED INSTALLMENTS AND PAYMENT SCHEDULES ON ANY APPROVED
SPECIAL ASSESSMENT = [ANBAR REMATHCHTE TNS TFACEMENTS— 6 THE SP EE TALE
ASSESSHENF], IF ANY.

(c) THE ESTIMATED [B6ttAR] AMOUNT AND PURPOSE OF ANY [CONTEMPLATED
AND—EFFHER] APPROVED [ANB—RATEFEER—OR—ANTIETPATER—TO—BET*PPROVED ANB
RATHFHESD] «(BUT UNRATIFIED] SPECIAL ASSESSMENT - [6R——FHYANETHE—BEMG
BEVECEPER— BY THE AS SOECTATTON--FEORASSESSHENF] WITHIN THE [SUBSEQUENT]
[PREVIOUS] SIX MONTHS[>—HR—-AN*).

House Amendments to H.B. 2397

(d) ANY KNOWN MATERIAL DEFICIENCY OR CONDITION OF THE LIMITED
COMMON ELEMENTS ASSOCIATED WITH THE UNIT OR COMMON ELEMENTS [KNOWN BY THE
ASSOCIATION] FOR WHICH THE PURCHASER WILL BE LIABLE FOR THE DIRECTLY
ASSESSED REPAIR COSTS WITHIN SIX MONTHS OF THE PURCHASE, IF ANY.

(e) THE CURRENT AMOUNT OF any unpaid common expense

assessment>—spettat—assessment—or—other— assessment, —_fee—or—_ charge

agatrst—ttat—unrt LIEN OR JUDGMENT LIEN ON THE UNIT DUE TO THE ASSOCIATION
PURSUANT TO SECTION 33-1256 AND ANY LIS PENDENS RECORDED BY THE
ASSOCIATION AGAINST THE UNIT.
House Amendments to H.B. 2397

OAnNOaTNHPWDM FE

11
12
13
14
15
16
17
18
19
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27
28
29
30
31
32
33
34
35
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38
39
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41
42
43
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45
46
47

(f) THE AMOUNT AND PURPOSE OF ANY TITLE TRANSFER FEE OR OTHER
SIMILAR FEE, HOWEVER DENOMINATED, THAT IS AUTHORIZED IN THE DECLARATION
AND ESTABLISHED BY THE ASSOCIATION PURSUANT TO SECTION 33-442.

(g) A COPY OF THE ASSOCIATION'S MOST RECENT INCOME AND EXPENSES
FINANCIAL STATEMENT FOR ALL OPERATING AND RESERVE ACCOUNTS, AS APPLICABLE.

(h) ANY OUTSTANDING AND UNRESOLVED VIOLATION OF THE ASSOCIATION'S
CONDOMINIUM DOCUMENTS THAT WAS CITED AGAINST THE UNIT, IF ANY[>—AND—THATF
FRE—SECEER TS RESPONSTBEE—FORAPPEATINGS RESOLVE BR--ARRAN ENE FOR FE
RESOCUTTON-OF-ALE-ETFED-HTOCATFTONS J .

[47] [5.] A copy of the current operating budget of the
association.

[S57] [6.] A copy of the most recent annual fitratcvat AUDIT, REVIEW
OR COMPILATION report of the association PRESCRIBED BY SECTION 33-1243,
SUBSECTION J. If the report is more than ten pages, the association may
provide a summary of the report in lieu of the entire report.

[6-] [7.] A copy of the most recent reserve study OR LONG-RANGE
PLAN AND THE ASSOCIATED FUNDING STRATEGY of the association, if any. IF
THE REPORT IS MORE THAN TEN PAGES, THE ASSOCIATION MAY PROVIDE A SUMMARY
OF THE REPORT IN LIEU OF THE ENTIRE REPORT.

[7] [8.] A statement summarizing any pending lawsuits, except
those relating to the collection of assessments owed by unit owners other
than the selling unit owner, in which the association is a named party,
including the amount of any money claimed.

[87] [9.1] A STATEMENT AS TO WHETHER A PORTION OF THE UNIT IS
COVERED BY INSURANCE MAINTAINED BY THE ASSOCIATION AND A COPY OF ALL
INSURANCE CERTIFICATES IDENTIFYING THE COVERAGE LIMITS AND DEDUCTIBLES
MAINTAINED BY THE ASSOCIATION PURSUANT TO SECTION 33-1253.

[$7] [10.] A STATEMENT AS TO WHETHER THE CONDOMINIUM IS UNDER
DECLARANT CONTROL AND THE PERCENTAGE OF UNITS IDENTIFIED ON THE RECORDED
PLAT THAT ARE CURRENTLY OWNED BY THE DECLARANT.

(té-] [11.] A STATEMENT IDENTIFYING WHETHER ANY [@HHER—6R—ENFEFY
OTHER FAN THE BEETARANF] [CORPORATION, LIMITED LIABILITY COMPANY OR
TRUST] OWNS [AAHENFPY-F YE] [THIRTY-FIVE] PERCENT OR MORE OF THE UNITS.

[tt] [12.] A STATEMENT THAT, FOR ANY REPORT PROVIDED IN SUMMARY
FORMAT PURSUANT TO THIS SUBSECTION, THE PURCHASER MAY REQUEST TO VIEW THE
ENTIRE REPORT FROM THE ASSOCIATION DIRECTLY, AND THE ASSOCIATION SHALL
PROVIDE ACCESS TO THAT REPORT WITHIN THREE BUSINESS DAYS AFTER A WRITTEN
REQUEST.

(t2-] [13.] A STATEMENT TO BE SIGNED BY THE PURCHASER AT THE CLOSE
OF ESCROW THAT PROVIDES "I HEREBY ACKNOWLEDGE THAT WITH THE PURCHASE OF
THIS HOME OR PROPERTY, I WILL BE CONTRACTUALLY BOUND TO THE VALID
COVENANTS, CONDITIONS AND RESTRICTIONS OF THE RECORDED DECLARATION, AND
WILL BE [CONTRACTUALLY] BOUND TO PAY ALL COMMON EXPENSE ASSESSMENTS
APPLIED TO MY HOME OR PROPERTY AS AUTHORIZED IN THE DECLARATION AND TITLE
33, CHAPTER 9 OR 16, ARIZONA REVISED STATUTES, AS APPLICABLE. IF I FAIL
TO PAY COMMON EXPENSE ASSESSMENTS, I MAY BE SUBJECT TO COLLECTION ACTIVITY
BY THE ASSOCIATION UP TO AND INCLUDING FORECLOSURE ACTION, WITHOUT THE

House Amendments to H.B. 2397

ANAOHPWNHY FE

FPP HP HP PWWWWWWWWWWDMYDYDYDNYDNYDNADAYDY DY NHKP RP RP RP BRR Re
DAP WNHRFOUWO AN DATRPWNHRFOTOWO AND OTBRWNHEF OW ONO UOBRWDNHOHR OW

EQUITY PROTECTION OF THE HOMESTEAD ACT PURSUANT TO TITLE 33, CHAPTER 8,
ARIZONA REVISED STATUTES."

[BA FE EAC ERBAR— BAYS AFTER THE RECETP TOFFEE BTS EL OSORE
REPORT PRESERTBED— BY SUBSECTEON 1 OF THES SEETHING THE PURERASER THAT

HONEY —_ THA EHF RACT TS CANE ELEBFOR-ANAY REASON FTE EO PETE BES CLOSURE
REPORT SHALE BE-REFURNEB FOF SEE EER J]

[B.] [€>] A purchaser or seller who is damaged by tte—fatture—of
the unit owner or the association [KNOWINGLY OR RECKLESSLY] FAILING to
disclose the information required by subsection A of this section OR
CKNOWINGLY OR RECKLESSLY] PROVIDING MATERIALLY FALSE OR MISLEADING
STATEMENTS IN THE DISCLOSURE may pursue all remedies at law or in equity
against the unit owner[>—HE-HANAGHTE-AGENT—FOR-FIE ASSOCIATION] «or the
association, whichever failed to comply with subsection A of this section
[OR-PROVEBEBFAESE-ER-AES CEAB HES TATFEMENTS Fit“ THE BTS ELESURE] , including
the recovery of reasonable attorney fees AS AWARDED BY THE COURT.

[8-] [C.J] THE ASSOCIATION SHALL PROVIDE TO AN ESCROW AGENT THAT IS
LICENSED PURSUANT TO TITLE 6, CHAPTER 7 AND THAT IS DESIGNATED FOR THE
TRANSACTION ANY REQUESTED INFORMATION THAT IS RELEVANT TO THE CLOSE OF
ESCROW, SUBJECT TO AND PURSUANT TO SECTION 33-1256 [ATF—-HO—EOST—TFO—THE
ESCROW AGENT OR ABBE TONAL COST TO THE SEECER OR BUYER] = [AND MAY CHARGE
THE FEES AUTHORIZED BY THIS SECTION].

€- Ctr] CD.] CEPR ASSOCTATTON--PROVIBEB—FHEBTSELOSURE-REP ORF
REQUESTED BY FATE ONT OHNER; |] ~The association may charge the unit owner a
fee of not more than an aggregate of ‘four—thondred otters $400 to
compensate the association for the costs incurred in the preparation and
delivery of a statement REPORT or other documents furnished by the
association pursuant to this section for purposes of resale disclosure,
lien estoppel and any other services related to the transfer or use of the
property. In addition, the association may charge a rush fee of not more
than ome—hondred—totters $100 if the rush services are required to be
performed within seventy-two hours after the request for rush services.
>——aTrr¢ THE UNIT OWNER may REQUEST THE ASSOCIATION TO UPDATE THE REPORT IF
THIRTY DAYS OR MORE HAVE PASSED SINCE THE DATE OF THE ORIGINAL DISCLOSURE
REPORT. THE ASSOCIATION MAY charge a statement—or—other—tocuments
DOCUMENT update fee of not more than frfty—totters—ttiirty—tays—or-mnore
a + hi +4 hertred eben tat ; 4
date—tte—tocuments—were—tettveretd $50. The association shall make
available to any interested party the amount of any fee established from
time to time by the association. tf—the—aggregate—fee—for—pnurposes—of

; at —i ; ae : fein i)
; ; f t~ie~t + e heniivent~iet ;
— ee , p ; ¢ +H
; +H : ete? +H e+ ; : ; ,
exceed the—four—hundred tottar—agyregate fee; The association may charge

House Amendments to H.B. 2397

the same fee without regard to whether the association is furnishing the
statement or other documents in paper or electronic format.

[FFF THE HSSO ETAT TON AS HOF REQUESTED —FOPROVEBE-THEBTS ELOSORE
REPORT—PRESERTBED— BY SUBSECTION A OF FHS SEC FEN THE ASSOC TTT ON ta
CHARGE ATOM NAL FEET PUR EAS ER FO COMPENSATE FEA SOC TAT EON-FOR
FHE-EOST—-OF BP BATFE FETE OFERTAS SOCIATION RECORDS
COMMENSURATE ITTF BT RECT C6 STINECRRED? ]

B- [G7] [E.] The fees prescribed by this section shall be
collected mo NOT earlier than at the close of escrow and may only be
charged once to a unit owner OR PURCHASER for that transaction between the
parties spectfted—trthe notice required pursuant—to-subsectton aA of—tirs
section. [ANY —PAYtENT— SHALE BE HABE BT RECT Eat ONE OE
ASSOCTATTONT] An association shall not charge or collect a fee relating
to services for resale disclosure, lien estoppel and any other services
related to the transfer or use of a property except as specifically
authorized in this section. An association that charges or collects a fee
in violation of this section is subject to a civil penalty of not more
than one-thousand-two-hundredtotters $1,200.

& [tr] [E.] This section applies to a managing agent for an
association that is acting on behalf of the association.

CIFOR ATE ATA SAC 8-4 ESRB OEE ONE FROM “FE BEC LARATE
FHE-BDEECTARANT SHALE PROVE BE-FO ANY PURETASER SEAT FE FEE PRES ER EB ED BY
SUBSECTTON 1A OFFS —SEECFE GN FE BO ETER FES PRES ERT BED SUBS EC TION A
PARAGRAPHS +5 —2- ANB 42- OF -FHES SECTTONG J

fF [dv] [G.] The following are exempt from this section:

1. A sale in which a public report is issued pursuant to section
32-2183 or 32-2197.02.

2. A sale pursuant to section 32-2181.02.

3. A conveyance by recorded deed that bears an exemption listed in
section 11-1134, subsection B, paragraph 3 or 7. On recordation of the
deed amd—for—nv—adttttoratctarge, the umt—owrer PURCHASER shall provide
the association with the changes in ownership, including the unit owner's
name, billing address and phone’ number. Failure to provide’ the
information shall not prevent the unit owner from qualifying for the
exemption pursuant to this section.

@> [Kr] [H.] This section does not apply to timeshare plans or
associations that are subject to chapter 20 of this title.

H#> [tv] [1L.] For the purposes of this section, unless the context
otherwise requires, “unit owner":

1. Means the seller of the condominium unit title. amt-exctrdes

2. DOES NOT INCLUDE:

(a) Any real estate salesperson or real estate broker who is
licensed under title 32, chapter 20 and who is acting as a salesperson or
brokera ‘y7

(b) Any escrow agent who is licensed under title 6, chapter 7 and
who is acting as an escrow agent. and-atsu-exctudes
House Amendments to H.B. 2397

ON OOP WM FP

(c) A trustee of a deed of trust who is selling the property in a
trustee's sale pursuant to chapter 6.1 of this title.

<<Sect— 3 Sectton—33-t802>_aAr tora Revised statutes, _ts—amended to
House Amendments to H.B. 2397

ANaATNHPWNH FE

by—ar—assuctratton->>
9 <<Secc + Secttonr—33s-t803>_aArizora_revised Statutes, ts amended to
10 read
11 33-1663 th itt party property, vorurtary ams sessments;
12 assessment—timitation,_penatttes;troticetotnember
13 of—viotetion
14 PANE PREOV TES TON BFA BEE TARA FE ON FAT THOU EB FP OSE THAN BAT ORT
House Amendments to H.B. 2397

ONOAORWNHPE

-10-
House Amendments to H.B. 2397

ANON WNH PF

FPP PFPPHPRPWWWWWWWWWWNHYDNDDNYDNMDNHDNYDAYNYNNDMRP HRP HEHEHE EEE
SMATSWNHRFOTOVOANDATAHBPWNHERFDHOANATMABRWNHHOWDNDOTBRWNHYHOYw

4 peter itis rio
a = — mae : it aeanee sean heed — — eaaae ;

Trsectton32-2t98-6t->>

Sec. 2. Section 33-1806, Arizona Revised Statutes, is amended to
read:

33-1806. Sale of properties; information required; fees;

civil penalty; definition

A. [EXCEPT —AS—PRESERTBEB— BY SUBSEC THON 1 OF THT SECTION] For
planned communities with fewer than fifty writs PROPERTIES, a member shall
matt ELECTRONICALLY TRANSMIT or deliver to a purchaser [or a purchaser's]
authorized [DESIGNATED] [agent] THE INFORMATION REQUIRED BY THIS
SUBSECTION within ten [€AtENBDAR] days after [receipt of a written notice
of a pending sale of the] wmit>—ard [PROPERTY] [ACCEPTANCE —OF—THE
PURCHASER*S—OFFER-FO-PUREHASE THE MTEMBER TAY REQUEST THE 1S SOE EAT EON FO
PROVIDE THE THEMBER SAF FH FRATTON REGUTREB— BYTES SUBS EC TEON— OH

CESTHHE THE HEMBER* S— PROPERTY FER SACLE ] . For planned communities with
fifty or more wumits PROPERTIES, the association shall matt ELECTRONICALLY

TRANSMIT or deliver to a purchaser [or a purchaser's] authorized
[DESIGNATED] [agent] within ten [calendar] days after receipt of a written
notice of a pending sale that contains the name, EMAIL ADDRESS and MAILING
address of the purchaser [OR THE C "S DESIGNATED AGENT] all of the
following in either paper or electronic format:

1. A copy of the CURRENT bylaws and the CURRENT rules of the
association.

2. A copy of the CURRENT declaration AND [FINAL] PLAT[E,_OR AN
ELECTRONIC COPY OF THE FINAL PLAT, IF AVAILABLE].

[3. A COPY OF THE MINUTES OF ALL OPEN MEETINGS OF THE BOARD OF
DIRECTORS FOR THE PREVIOUS THREE MONTHS. 1]

[3+] [4.] A dated statement containing [@R-DENTHFYHE]:

(a) The telephone number and address of a principal contact for the
association, which may be an association manager, an association
management company, an officer of the association or any other person
designated by the board of directors.

(b) The amount of the ANNUAL common regular assessment and the
REQUIRED INSTALLMENTS AND PAYMENT SCHEDULES ON ANY APPROVED SPECIAL
ASSESSMENT = [ANBAR CREMATHTHTE FS TFAEEHENTS—ON-FHES PEE TAL ASSESSMENT EF
ANY] .

(c) THE ESTIMATED [B6ttAR] AMOUNT AND PURPOSE OF ANY [€6NFEMPCATED;
ANB—EFFHER] APPROVED [ANB—RATEFEER—OR—ANTTETPATER—TFO—BE-*APPROVER— aD
RATTFTEB] [BUT UNRATIFIED] SPECIAL ASSESSMENT [@R—PFHYANCTNG—BENEG
DEVELOPER — BY THE ASSOETATFTON FOR ASSESSMENF] WITHIN THE [SUBSEQUENT]
[PREVIOUS] SIX MONTHS[>—+ ANY].

(d) THE CURRENT AMOUNT OF ANY unpaid common regular

assessment>—spectat—assessment—or—other—assessment,fee—or— charge
immed the—f rw —_ ne — eb — ;
by—a—tremhotter,—esctrow—agent,—_member—or—person tes tgonrated by—a—trember

-ll-
House Amendments to H.B. 2397

DONATO HP WMP

i tron-33-1807——Fa ' ~te—tat - .
to—ttri pti ts4 Heri —the—tt bheti—for—hr—tirt reertt trait
eerortst +4 . rd ae tet

property LIEN OR JUDGMENT LIEN ON THE PROPERTY DUE TO THE ASSOCIATION
PURSUANT TO SECTION 33-1807 AND ANY LIS PENDENS RECORDED BY THE
ASSOCIATION AGAINST THE PROPERTY.

wrthitfourteer-catendar—tays~

(e) THE AMOUNT AND PURPOSE OF ANY TITLE TRANSFER FEE OR OTHER
SIMILAR FEE, HOWEVER DENOMINATED, THAT IS AUTHORIZED IN THE DECLARATION
AND ESTABLISHED BY THE ASSOCIATION PURSUANT TO SECTION 33-442.

(f) A COPY OF THE ASSOCIATION'S MOST RECENT INCOME AND EXPENSES
FINANCIAL STATEMENT FOR ALL OPERATING AND RESERVE ACCOUNTS, AS APPLICABLE.

(g) ANY OUTSTANDING AND UNRESOLVED VIOLATION OF THE ASSOCIATION'S
COMMUNITY DOCUMENTS THAT WAS CITED AGAINST THE PROPERTY, IF ANY(7—ANO—THAT
FHE—SECCER TS RESP ONSTBEE—FORAPPEAEHTGSRESOLY NE —BR--ARRANGHTEG—FOR-FHE
RESOCUFTON-CF ALE -EFFED TV TOLATFTORS J .

-12-
House Amendments to H.B. 2397

ON aA OBR WN PE

[47] [5.] A copy of the current operating budget of the
association.

([5-] [6.] A copy of the most recent annual fitramctat AUDIT, REVIEW
OR [€OrtPrcAtTon] [COMPILATION] report of the association PURSUANT TO
SECTION 33-1810. If the report is more than ten pages, the—assoctatior
may—provite a summary of the report t—tret MAY BE PROVIDED IN PLACE of
the entire report.

[6-] [7.] A copy of the most recent reserve study OR LONG-RANGE
PLAN AND ASSOCIATED FUNDING STRATEGY of the association, if any. IF THE
REPORT IS MORE THAN TEN PAGES, THE ASSOCIATION MAY PROVIDE A SUMMARY OF
THE REPORT IN PLACE OF THE ENTIRE REPORT.

[77] [8.] A statement summarizing any pending lawsuits, except
those relating to the collection of assessments owed by members other than
the selling member, in which the association is a named party, including
the amount of any money claimed.

(é7] [9.] A STATEMENT AS TO WHETHER THE PLANNED COMMUNITY IS UNDER
DECLARANT CONTROL AND THE PERCENTAGE OF LOTS IDENTIFIED ON THE RECORDED
PLAT THAT ARE CURRENTLY OWNED BY THE DECLARANT.

[$7] [10.] A STATEMENT THAT, FOR ANY REPORT PROVIDED IN SUMMARY
FORMAT PURSUANT TO THIS SUBSECTION, THE PURCHASER MAY REQUEST TO VIEW THE
ENTIRE REPORT FROM THE ASSOCIATION DIRECTLY, AND THE ASSOCIATION SHALL
PROVIDE ACCESS TO THAT REPORT WITHIN THREE BUSINESS DAYS AFTER A WRITTEN
REQUEST.

(t6-] [11.] A STATEMENT TO BE SIGNED BY THE PURCHASER AT THE CLOSE
OF ESCROW THAT PROVIDES "I HEREBY ACKNOWLEDGE THAT WITH THE PURCHASE OF
THIS HOME OR PROPERTY, I WILL BE CONTRACTUALLY BOUND TO THE VALID
COVENANTS, CONDITIONS AND RESTRICTIONS OF THE RECORDED DECLARATION, AND
WILL BE [CONTRACTUALLY] BOUND TO PAY ALL COMMON EXPENSE ASSESSMENTS
APPLIED TO MY HOME OR PROPERTY AS AUTHORIZED IN THE DECLARATION AND TITLE
33, CHAPTER 9 OR 16, ARIZONA REVISED STATUTES, AS APPLICABLE. IF I FAIL
TO PAY COMMON EXPENSE ASSESSMENTS, I MAY BE SUBJECT TO COLLECTION ACTIVITY
BY THE ASSOCIATION UP TO AND INCLUDING FORECLOSURE ACTION, WITHOUT THE
EQUITY PROTECTION OF THE HOMESTEAD ACT PURSUANT TO TITLE 33, CHAPTER 8,
ARIZONA REVISED STATUTES."

[CBSA FEA CENBAR BATS AFTER -FHE- REC ETP TOF FE BES CLOSURE
REPORT—PRESERTBEB— BY SUBSECTION 1 OF Fit SEC TT ON —_FHE— PURCHASER TAY
RECEP T—THE TNF ORMATFE ON PROPOSE-AEURE-F6-ABBRESS ANY CONE ERNS ED ENTFEFTED
TR—-THEREP ORT BRAT E OFF ER AEP ERATE FY BROS SOF EARNEST
HONE. —_ F-1 CON FRAC TTS CANE ELEBFER-ANY REASON THE COMPLETE BTS CLOSURE
REPORT-SHAEE-BE-RETURNEB-TO-FHE‘SECEER? J

[€-] [B.] A purchaser or seller who is damaged by the—fatture-of
the member or the association [KNOWINGLY OR RECKLESSLY] FAILING to
disclose the information required by subsection A of this section OR
[KNOWINGLY OR RECKLESSLY] PROVIDING MATERIALLY FALSE OR MISLEADING
STATEMENTS IN THE DISCLOSURE may pursue all remedies at law or in equity
against the member[>—Hte—HANAGHTE—AGENT—FORTHEASSOCTATION] «oor. the

association, whichever failed to comply with subsection A of this section

-13-
House Amendments to H.B. 2397

ANAT HPWNM FE

FPF HPHP SPP PWWWWWWWWWWNMYDYDNYDYDYDNY DYN DYNMYHPRP RRP RP Bee EE
SNDOAFPWNHRODOHOANDAARWDHEF DOO ANAT BRWNHHFOWANDOTBRWNHOHOWw

LOR-PROVIBEBHATERTAEEY-FAESE-ORAAES CEAB TES TATEMENTS FFE BES ELOSURE IJ ,
including the recovery of reasonable attorney fees AS AWARDED BY THE
COURT.

[87] ([C.] THE ASSOCIATION SHALL PROVIDE TO AN ESCROW AGENT THAT IS
LICENSED PURSUANT TO TITLE 6, CHAPTER 7 AND THAT IS DESIGNATED FOR THE
TRANSACTION ANY REQUESTED INFORMATION THAT IS RELEVANT TO THE CLOSE OF
ESCROW, SUBJECT TO AND PURSUANT TO SECTION 33-1807 [At—HO—EOST—TO—THE
ESEROH AGENT OR-ADBTTTONAL—EOSTTO FE SELLER ER-BUYER] = [AND MAY CHARGE
THE FEES AUTHORIZED BY THIS SECTION].

& Ce] CD.) CHR CHE—ASSOCTATTON-PROVEBER THE BIS ELESUREREPORF
REQUESTER BY THE THHEMBER;S ] The association may charge the member a fee of
not more than an aggregate of four—hundreddotters $400 to compensate the
association for the costs incurred in the preparation and delivery of a
statement REPORT or other documents furnished by the association pursuant
to this section for purposes of resale disclosure, lien estoppel and any
other services related to the transfer or use of the property. In
addition, the association may charge a rush fee of not more than one
homired—tottars $100 if the rush services are required to be performed
within seventy-two hours after the request for rush services. yard THE
MEMBER may REQUEST THE ASSOCIATION TO UPDATE THE REPORT IF THIRTY DAYS OR
MORE HAVE PASSED SINCE THE DATE OF THE ORIGINAL DISCLOSURE REPORT. THE
ASSOCIATION MAY charge a statement—or—other—tocumerts DOCUMENT update fee

of not more than f+fty—totters—ttirty—tys—or—mretave—passed—si1ce
the—tdate—of—the—ortgonmrattHrsctosure—statement—or—tte tate ttre thocumennts

were—tetiveret $50. The association shall make available to = any
interested party the amount of any fee established from time to time by

the association. tf—the—aggregatefee—for—purposes—ofresatetstctosure;
tren—estoppet—and—any—other—services retated_to—_tte—_tras fer—or—tse ofa
tncrease—at—aTrate_oftrotmnore_tthanr_twenty_percent—_per—year_based—or-ttre
‘ Hated +H e4 ; j 4 —tre—f i naliiveal
tottar—agygregatefee> The association may charge the same fee without

regard to whether the association is furnishing the statement or other
documents in paper or electronic format.

[FTF HEA SOE TATTONAIAS HOT REQUES FEB TF O-PROVE BE FE BES EL OSURE
REPORT—PRESERTBED— BY SUBSECTTON A OF PES SEC THON FATE AS SCOCTATHEON HAY
EHARGE—AHOMTNAL FEET 6TH PUR EAS ER TOE GMP ENSA TE THE AS SOC TATFTEON-FER
THEE OS T—-OF GP BATE TET EE OH ER TAF OR MATE ON -TE-TFAHE ASSOC TATEON-RECORES;
COMMENSURATE ATH -THE BE REET 6ST-THEGRREB? ]

B- [Gv] [E.] The fees prescribed by this section shall. be
collected mo NOT earlier than at the close of escrow and may only be
charged once to a member OR PURCHASER for that transaction between the
parties spectfred—tthetoticeteguired_pursuant—_to-subsecttonA”Aoftitrs
section. CLAN Y PATENT SHALE BE THABE—_ BERE CFE ANB Bt tHE
ASSOCHATTONT] ~=6An association shall not charge or collect a fee relating
to services for resale disclosure, lien estoppel and any other services
related to the transfer or use of a property except as specifically

-14-
House Amendments to H.B. 2397

OnNanfP WM FE

authorized in this section. An association that charges or collects a fee
in violation of this section is subject to a civil penalty of not more
than one-thousand-two-hondredtottars $1,200.

& [te] [E.J] This section applies to a managing agent for an
association that is acting on behalf of the association.

CIFOR AEE SAE BFA PROPER FF FROM FE BEE LARAN TE THE
BECCARANT—SHACE—PROVEBE—F6—ANY-PURERASER SFT Ft PRES ERT BEB BY
SUBSECTTON 1 OF THATS —SECTHON THE BO EUMENTSPRESERT BEB THt_SUBSEETTON-1A;
PARAGRAPHS +t, —2-AND_167 J

ft [dv] [G.] The following are exempt from this section:

1. A sale in which a public report is issued pursuant to section
32-2183 or 32-2197.02.

2. A sale pursuant to section 32-2181.02.

3. A conveyance by recorded deed that bears an exemption listed in
section 11-1134, subsection B, paragraph 3:or 7. On recordation of the
deed anmd—for—no—addtttoretctharge, the member PURCHASER shall provide the
association with the changes in ownership, including the member's name,
billing address and phone number. Failure to provide the information
shall not prevent the member from qualifying for the exemption pursuant to
this section.

> [ky] [H.] For the purposes of this section, unless the context
otherwise requires[.] [77]

[T5—*ASSOCTATEON THELUBES ARE HASTER ANB —_LOEAE AS SOCTATEGN Ht
RECORBEB-C COVENANTS AP FECTIANEG THE PROPER FI AS APPLET EABLET

27] +“Member":

[tay] [l1.] Means the seller of the wumit PROPERTY title. and
exctudes

[toy] [2.] DOES NOT INCLUDE:

[t+] [a] Any real estate salesperson or real estate broker who
is licensed under title 32, chapter 20 and who is acting as a salesperson
or broker. >

[t777] [(b)] Any escrow agent who is licensed under title 6,
chapter 7 and who is acting as an escrow agent. amd-atso-exchtes

[t7777] ~[(c)] A trustee of a deed of trust who is selling the
property in a trustee's sale pursuant to chapter 6.1 of this title.

Enroll and engross to conform
Amend title to conform
JEFF WENINGER

2397WENINGER. docx
02/13/2026
09:37 AM

C: MR

130FAIHKS

-15-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 2397

DATE February 17, 2026 MOTION: DPA

PASS E NAY PRESENT | ABSENT

>
x

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

AWNAAAANAN

Weninger, Chairman

O O O

—
Se,

4
APPROVED: ely td SECRETARY
JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 3 2
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB4026: public infrastructure improvements; distribution limit
Sponsor: Representative Carbone, LD 25
Committee on Commerce

Overview
Makes revisions relating to the requirements for distribution of monies for public

infrastructure improvements.

History
From October 1, 2013, through October 1, 2023, the State Treasurer must pay a city, town or

county for public infrastructure improvements for the benefit of a manufacturing facility. The
total amount paid cannot exceed the total amount of TPT revenues collected from persons
conducting business under the prime contracting classification that are derived from
contracts to construct buildings and associated improvements for the benefit of a
manufacturing facility or 80% of the total cost of the public infrastructure improvements,
which is less. The aggregate amount paid cannot exceed $200,000,000 (A.R.S. § 42-5032.02).

Provisions
1. Changes the aggregate amount paid to all cities, towns and counties to a maximum of
$75,000,000 each fiscal year, rather than $200,000,000. (Sec. 1)

2. Modifies the contents of the contract that a local government enters into with the Arizona

Department of Revenue (ADOR) to:

a. state that the city, town or county will immediately notify the department when
monies received exceed the total amount the local government is permitted to receive,
rather than 80% of the cost of the infrastructure improvements; and

b. provide an analysis of the anticipated direct and indirect revenues Arizona will receive
as a result of constructing the manufacturing facility to the Arizona Commerce
Authority. (Sec. 1)

3. Clarifies the State Treasurer must cease payments if the total amount subject to any
distribution has met the maximum allowable amount as of June 30 of each year. (Sec. 1)

4. Stipulates ADOR, for monies that are eligible to be paid to a local government that exceed
the maximum allowable amount, to retain such monies and direct the State Treasurer to
resume paying such monies in the following fiscal year. (Sec. 1)

5. Directs the State Treasurer to make payments in the order in which the expense is
submitted for reimbursement. (Sec. 1)

6. Requires ADOR to post development agreements and intergovernmental agreements
entered into with a local government on their website. (Sec. 1)

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

Initials PB HB 4026
2/13/2026 Page 1 Commerce

Attachment 5, |
7. Modifies the definition of public infrastructure. (Sec. 1)

Initials PB HB 4026
2/13/2026 Page 2 Commerce
free ARIZONA
ARIZONA CHAMBER | Qf) MANUFACTURERS

— OF COMMERCE & INDUSTRY — ~~’ COUNCIL

BUILT TO COMPETE
ARIZONA’S INFRASTRUCTURE ADVANTAGE

HOW HB 4026 SUPPORTS HIGH-WAGE MANUFACTURING
JOBS AND LONG-TERM ECONOMIC GROWTH

SPONSORED BY REP. MICHAEL CARBONE

PROVEN TOOL THAT'S HB4026 - MEETING THE NEEDS OF
DELIVERED REAL RESULTS ARIZONA'S GROWING ECONOMY
Established in 2012, this program has been The existing arbitrary lifetime cap of $200M is
a cornerstone of the state’s manufacturing rapidly being reached. Without action, current
success, securing billions in private capital public infrastructure projects are at risk of being
investment and becoming the nation’s underfunded, and communities across Arizona
Fess Be UNICO ENCY manufacturing won't be able to compete for the jobs of the future.
s

— . HB 4026 modernizes the program by:
These major investments come with real

demands on local infrastructure. This > Establishing an annual cap of $75M,
program allows municipalities to recapture ensuring predictable, statewide access.
construction sales tax generated directly

from the project itself and reinvest those > Requiring a detailed economic analysis
dollars into public infrastructure that documenting the direct and indirect revenues
supports the community and region that will be generated from the project and
as a whole. long-term fiscal benefits to the state.

No new taxes. No general fund exposure. » Ensuring transparency, accountability, and a
No giveaways. clear return on investment.

Attachment 3 2
PUBLIC INFRASTRUCTURE PROGRAM IN ACTION!

Proven Tool That's , __
Delivered Real Results

Saguaro Semiconductor Co. (SSC)
chooses Casa Grande over a
competing out-of-state site
thanks to Arizona’s innovative
Public Infrastructure Program.

Local
Agreement

Casa Grande enters into an
agreement with the Arizona
Department of Revenue (ADOR).

Contstruction
Work Begins

SSC breaks ground and
begins construction.

Public Infrastructure
Gets Built | Pt2° ~~

ADOR begins distribution of funds
and Casa Grande uses it to

invest in the expansion of roads
and/or development of a

water reclamation system that
will not only support SSC, but
Casa Grande’s residents and
overall commerce.

--*

Planning &
Coordination

SSC finishes construction and is in
operation - creating jobs, generating
revenue for the state, and supporting
Arizona’s economy. All while Casa
Grande’s public infrastructure is
up-to-date and supporting the

entire region!

Accountability

SSC creates an economic impact
analysis - showcasing the revenue
and jobs that will be generated for
Arizonans - and submits it to the
ACA for approval.

Public Infrastructure
Gets Built | Pt 1

Casa Grande submits public
infrastructure expenses to ADOR
and begins to recapture the
construction sales tax generated
from the SSC project.

The State Wins.
Jobs, Revenue, Growth.

SSC finishes construction and is in
operation - creating jobs, generating
revenue for the state, and supporting
Arizona’s economy. All while Casa
Grande’s public infrastructure is
up-to-date and supporting the

entire region!

ARIZONA IS WINNING THE RACE TO ONSHORE MANUFACTURING.

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 4026

DATE February 17, 2026 MOTION: DP

PASS AYE NAY PRESENT | ABSENT

Aguilar a

Blackman
Carter N

Cavero

Connolly

Diaz

Hendrix

x
Villegas A
Wilmeth

Way, Vice-Chairman

Weninger, Chairman

= | @ )

RIRIGN | IAKRKAI\

APPROVED: COMMITTEE SECRETARY

Ae a

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. 33
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2128: homeowners' associations; condominiums; actions; meetings
Sponsor: Representative Carter N, LD 15
Committee on Commerce

Overview
Removes the authority of a condominium or planned community association to take action

without a meeting.

History :
A condominium or planned community association (HOA) is formed and organized under

governing documents which include a declaration, bylaws and articles of incorporation, if
any. An HOA is responsible for managing, maintaining and improving community property.
Members of the association elect a board of directors who are given general management
powers to act on behalf of the association. Statute dictates a condominium and a planned
community association be organized as either a profit, nonprofit corporation or as an
unincorporated association (Title 33, Chapters 9 & 16, A.R.S.).

Statute authorizes the board of directors of a nonprofit corporation to take action without a
meeting if the action is taken by all of the directors. The action must be evidenced by one or
more written consents describing the action taken, signed by each director and included in
the minutes filed with the corporate records reflecting the action taken (A.R.S. § 10-3821).

Provisions
1. Exempts a condominium unit owners' association and a planned community members'
association from statutory authority to take action without a meeting. (Sec. 1)

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

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

Initials PB/AI HB 2128
2/13/2026 Page 1 Commerce

3Y

Attachment____
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2128

OND WNME

WNHNINNMNNANNRNANNFP RFP RP REP BRB PEPE
SUMO OANDANHPWNHEFOWO AON A OTHRWNHERF OW

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2128
(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.
LGREEN-STRIKREGUT-HH-BRACKEFS] indicates new text removed from statute
or previously enacted session law.
(Green—strykeout—frtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Greer—strtkeout—tr-carets>> indicates a section removed from the bill.

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

Section 1. Section 10-3821, Arizona Revised Statutes, is amended to
read:

10-3821. Action without meeting: exception

A. Unless the articles of incorporation or _ bylaws provide
otherwise, action required or permitted ALLOWED by chapters 24 through 40
of this title to be taken at a directors' meeting may be taken without a
meeting if the action is taken by all of the directors. The action must
be evidenced by one or more written consents describing the action taken,
signed by each director and included in the minutes filed with the
corporate records reflecting the action taken.

B. Action taken under this section is effective when the last
director signs the consent, unless the consent specifies a different
effective date.

C. The consent signed under this section has the effect of a
meeting vote and may be described as such in any document.

D. Any director may revoke a consent by delivering a_ signed
revocation of the consent to the president or secretary before the date
the last director signs the consent.

E. For the purposes of this section, a consent may be signed using
an electronic signature as defined in section 44-7002.

F. THIS SECTION DOES NOT APPLY TO AN ENTITY THAT IS SUBJECT TO
SECTION 33-1248 OR 33-1804 [AFTER TERMINATION OF THE PERIOD OF DECLARANT

CONTROL).

Sec. 2. Section 33-1248, Arizona Revised Statutes, is amended to
read:

33-1248. Open meetings; exceptions; notice; agenda; policy

statement
A. Notwithstanding any provision in the declaration, bylaws or
other documents to the contrary, all meetings of the unit’ owners'

Adopted # of Verbals

ailec Withdraw:

7
Not Offered Analysts Initials

Attachment 35
House Amendments to H.B. 2128

ONODOPWDY

association and the board of directors, and any regularly scheduled
committee meetings, are open to all members of the association or any
person designated by a member in writing as the member's representative
and all members or designated representatives so desiring shall be allowed
to attend and speak at an appropriate time during the deliberations and
proceedings. The board may place reasonable time restrictions on those
persons speaking during the meeting but shall allow a member or a member's
designated representative to speak once after the board has discussed a
specific agenda item but before the board takes formal action on that item
in addition to any other opportunities to speak. The board shall provide
for a reasonable number of persons to speak on each side of an issue.
Persons attending may audiotape or videotape those portions of the
meetings of the board of directors and meetings of the members that are
open. The board of directors of the association shall not require advance
notice of the audiotaping or videotaping and may adopt reasonable rules
governing the audiotaping or videotaping of open portions of the meetings
of the board and the membership, but such rules shall not preclude such
audiotaping or videotaping by those attending, unless the board audiotapes
or videotapes the meeting and makes the unedited audiotapes or videotapes
available to members on request without restrictions on their use as
evidence in any dispute resolution process. If a board records a meeting
that is open to the members, the board shall keep a copy of the recording
for at least six months and make the unedited recording available to any
member on request in compliance with section 33-1258, subsection A. Any
portion of a meeting may be closed only if that portion of the meeting is
limited to consideration of one or more of the following:

1. Legal advice from an attorney for the board or the association.
On final resolution of any matter for which the board received legal
advice or that concerned pending or contemplated litigation, the board may
disclose information about that matter in an open meeting except for
matters that are required to remain confidential by the terms of a
settlement agreement or judgment.

2. Pending or contemplated litigation.

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

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

5. Discussion of a unit owner's appeal of any violation cited or
penalty imposed by the association except on request of the affected unit
owner that the meeting be held in an open session.
House Amendments to H.B. 2128

ONODOHPWDM FE

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

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

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

E. Notwithstanding any provision in the declaration, bylaws or
other condominium documents, for meetings of the board of directors that
are held after the termination of declarant control of the association,
all of the following apply:
House Amendments to H.B. 2128

OANA WN FE

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

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

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

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

F. It is the policy of this state as reflected in this section that
all meetings of a condominium, whether meetings of the unit owners'
association or meetings of the board of directors of the association, be
conducted openly and that notices and agendas be provided in advance for
those meetings that contain the information that is reasonably necessary
to inform the unit owners of the matters to be discussed or decided and to
ensure that unit owners have the ability to speak after discussion of
agenda items, but before a vote of the board of directors or members is
taken. Toward this end, any person or entity that is charged with the
interpretation of these provisions, including members of the board of
directors and any community manager, shall take into account this
declaration of policy and shall construe any provision of this section in
favor of open meetings.

G. This section does not apply to timeshare plans or associations
that are subject to chapter 20 of this title.

H. [AFTER TERMINATION OF THE PERIOD OF DECLARANT CONTROL,] THE UNIT
OWNERS' ASSOCIATION OR THE BOARD OF DIRECTORS THAT IS SUBJECT TO THIS
SECTION IS NOT SUBJECT TO SECTION 10-3821.

Sec. 3. Section 33-1804, Arizona Revised Statutes, is amended to

read:

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

statement

A. Notwithstanding any provision in the declaration, bylaws or
other documents to the contrary, all meetings of the members" association
and the board of directors, and any regularly scheduled committee
meetings, are open to all members of the association or any person
designated by a member in writing as the member's representative and all
members or designated representatives so desiring shall be allowed to
attend and speak at an appropriate time during the deliberations and

House Amendments to H.B. 2128

ONAN HP WDM PF

PPPS HAPAFHPHPPWWWWWWWWWWNHYDNDNYDNDNNYNNNNDHPRP RPP BPP PR EE
DNANDAPWNHERFDHOANAANAHPWNHEF DMO DANATAHRWNHEHOWAOANODOBRWDHHOY

proceedings. The board may place reasonable time restrictions on those
persons speaking during the meeting but shall allow a member or member's
designated representative to speak once after the board has discussed a
specific agenda item but before the board takes formal action on that item
in addition to any other opportunities to speak. The board shall provide
for a reasonable number of persons to speak on each side of an issue.
Persons attending may audiotape or videotape those portions of the
meetings of the board of directors and meetings of the members that are
open. The board of directors of the association shall not require advance
notice of the audiotaping or videotaping and may adopt reasonable rules
governing the audiotaping and videotaping of open portions of the meetings
of the board and the membership, but such rules shall not preclude such
audiotaping or videotaping by those attending, unless the board audiotapes
or videotapes the meeting and makes the unedited audiotapes or videotapes
available to members on request without restrictions on their use as
evidence in any dispute resolution process. If a board records a meeting
that is open to the members, the board shall keep a copy of the recording
for at least six months and make the unedited recording available to any
member on request in compliance with section 33-1805, subsection A. Any
portion of a meeting may be closed only if that closed portion of the
meeting is limited to consideration of one or more of the following:

1. Legal advice from an attorney for the board or the association.
On final resolution of any matter for which the board received legal
advice or that concerned pending or contemplated litigation, the board may
disclose information about that matter in an open meeting except for
matters that are required to remain confidential by the terms of a
settlement agreement or judgment.

2. Pending or contemplated litigation.

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

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

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

B. Notwithstanding any provision in the community documents, al]
meetings of the members' association and the board shall be held in this
state. A meeting of the members' association shall be held at least once
each year. Special meetings of the members' association may be called by
the president, by a majority of the board of directors or by members
having at least twenty-five percent, or any lower percentage specified in
House Amendments to H.B. 2128

DONATO PWNM FE

the bylaws, of the votes in the association. Not fewer than ten or more
than fifty days in advance of any meeting of the members the secretary
shall cause notice to be hand delivered or sent prepaid by United States
mail to the mailing address for each lot, parcel or unit owner or to any
other mailing address designated in writing by a member. The notice shall
state the date, time and place of the meeting. A notice of any annual,
regular or special meeting of the members shall also state the purpose for
which the meeting is called, including the general nature of any proposed
amendment to the declaration or bylaws, changes in assessments. that
require approval of the members and any proposal to remove a director or
an officer. The secretary shall also provide an agenda for any meeting of
the members' association by hand delivery, mail, website posting, email or
other electronic means or posting at a community center or other similar
location. The failure of any member to receive actual notice of a meeting
of the members or the meeting agenda does not affect the validity of any
action taken at that meeting.

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

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

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

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

2. An emergency meeting of the board of directors may be called to
discuss business or take action that cannot be delayed for the forty-eight
hours required for notice. At any emergency meeting called by the board
of directors, the board of directors may act only on emergency matters.
The minutes of the emergency meeting shall state the reason necessitating
the emergency meeting. The minutes of the emergency meeting shall be read
House Amendments to H.B. 2128

OnNODOHRWNH FE

and approved at the next regularly scheduled meeting of the board of
directors.

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

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

F. It is the policy of this state as reflected in this section that
all meetings of a planned community, whether meetings of the members'
association or meetings of the board of directors of the association, be
conducted openly and that notices and agendas be provided in advance for
those meetings that contain the information that is reasonably necessary
to inform the members of the matters to be discussed or decided and to
ensure that members have the ability to speak after discussion of agenda
items, but before a vote of the board of directors or members is taken.
Toward this end, any person or entity that is charged with the
interpretation of these provisions, including members of the board of
directors and any community manager, shall take into account this
declaration of policy and shall construe any provision of this section in
favor of open meetings.

G. [AFTER TERMINATION OF THE PERIOD OF DECLARANT CONTROL,] THE
MEMBERS' ASSOCIATION OR THE BOARD OF DIRECTORS THAT IS SUBJECT TO THIS
SECTION IS NOT SUBJECT TO SECTION 10-3821.

Enroll and engross to conform
Amend title to conform

NEAL CARTER

2128CARTER N.docx
02/16/2026

08:19 AM

PB/1s
130PEJEKC

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

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO. __HB2128

DATE

February 17, 2026

MOTION: DPA

PASS

NAY PRESENT | ABSENT

Aguilar

Blackman

ay

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

AAAANSAAAARAA

APPROVED:

\ ya

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

_——
—

Ol1O ©

—_—_
COWIMITTEE SEGRETARY

ATTACHMENT. 3 é

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2991: social media; online content; minors
S/E: application distributor; minor
Sponsor: Representative Carbone, LD 25
Committee on Commerce

Summary of the Strike-Everything Amendment HB 2991

Overview
Provides requirements for application distribution providers relating to identifying the age
of an account holder.

History
A person commits unlawful age misrepresentation if the person is at least 18 years of age,

and knowing or having reason to know that the recipient of a communication is a minor, uses
an electronic communication device to knowingly misrepresent the person's age for the
purpose of committing any sexual offense involving the recipient (A.R.S. § 13-3561).

Provisions
1. Requires an application distribution provider to:

a. request the age of an individual who is creating an account;

b. provide a developer of a covered application with the technical ability to identify an
age signal, if the age signal is agreed to be shareable;

c. provide the ability to prevent an account holder who is a minor from acquiring or using
the developer's covered application from the application distributor provider;

d. provide the capability to a developer to disclose the developer's relevant parental
controls for a covered application through a centralized product page or a user
interface that provides relevant information about the covered application; and

e. comply with the prescribed obligations for its own covered applications for which the
application distribution provider is also the developer. (Sec. 1)

2. Authorizes an application distribution provider to:
a. use commercially reasonable efforts to obtain the age category of an account holder;
and
b. provide account holders with a mechanism to obtain the account holder's age category
and the ability to request an update if believed the age category is incorrect. (Sec. 1)

38. Prohibits an application distribution provider from using certain collected data to give
the application distribution provider preference relative to the third-party covered
applications or to otherwise use the data in an anticompetitive manner. (Sec. 1)

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

Initials PB HB 2991
2/14/2026 Page 1 Commerce

Attachment
9.

Exempts an application distribution provider, from specified liabilities, that operates in
good faith to provide an account holder's age signal or makes a good faith effort to comply
with the outlined provider requirements. (Sec. 1)

Exempts a developer of a covered application from liability for an erroneous age signal
provided by an applications distribution provider if the develop meets certain
stipulations. (Sec. 1)

Declares the developer of a covered application is solely liable to correctly identify
whether the developer of a covered application's application is a covered application, as
agreed on between the developer and a provider. (Sec. 1)

Authorizes the Attorney General to enforce and impose civil penalties for violations. (Sec.
1)

Specifies the application distribution provider requirements do not:

a. create a private right of action; or

b. require a developer to determine whether an account holder is an adult or a minor if
the developer and an application distribution provider are controlled by the same
entity. (Sec. 1)

Defines pertinent terms. (Sec. 1)

10. Cites this act as the Mobile Ecosystem Responsibility Act. (Sec. 2)

Initials PB HB 2991
2/14/2026 Page 2 Commerce
Patrick Hedger aan | b

Director of Policy, NetChoice N et h CO f Cc Cc
| y ]

Washington, DC 20005 oe | o i Yo We

Protecting Free Speech and Free Enterprise Online

Arizona HB 299] TESTIMONY IN OPPOSITION

February 17, 2026

Arizona House of Representatives
Committee on Commerce

and Government Efficiency

1700 W. Washington St.,

HHR 5

Phoenix, AZ 85007

Dear Chair Weninger, Vice Chair Way, and Distinguished Members of the Commerce Committee:

NetChoice respectfully asks that you oppose HB 2991 which requires online platforms to verify all users' ages and
obtain parental consent for certain minors. If enacted, this bill would almost certainly violate Arizonan’s First

Amendment rights, weaken their privacy, and fail to keep kids safe.

NetChoice is a trade association of leading internet businesses that promotes the value, convenience, and choice
that internet business models provide to American consumers. Our mission is to make the internet safe for free

enterprise and free expression.

We share the sponsor’s goal to better protect minors from harmful content online. NetChoice members have taken
the issues of children’s and teen safety seriously and, in recent years, have rolled out new features, settings,
parental tools, and protections to better empower parents and help them monitor their children’s use of social
media. We ask that you oppose age verification proposals and instead focus on proposals that more effectively

protect young people online without violating the constitutional rights of every Arizonan of any age.

Age Verification-whether at the app store level, device or website-level raises constitutional
issues—and is now being litigated in other states.

The Supreme Court and other federal courts have ruled that age verification mandates that block access to the
exercise of First Amendment rights are unconstitutional. Age verification laws have recently failed to withstand

legal scrutiny in several states. NetChoice has secured permanent injunctions against such censorious laws in

Attachment oh

——
Arkansas, Louisiana, and Ohio.’ Implementing such a measure in Arizona would likely meet the same fate and lead

to costly legal challenges without providing any real benefits to the state's residents.

As Federal Judge John W. deGravelles noted in granting a full injunction against Louisiana’s age restriction law, “’It is
. . Well established that the [Free Speech Clause] protects the right to receive information and ideas,’ Stanley v.
Georgia, 394 U.S. 557, 564 (1969), because ‘the right to receive ideas follows ineluctably from the sender’s First
Amendment right to send them’ and is necessary for the recipient’s own ‘meaningful exercise’ of First Amendment
rights, Bd. of Educ., Island Trees Union Free Sch. Dist. No. 26 v. Pico, 457 U.S. 853, 867 (1982) (plurality opinion).
Even minors ‘are entitled to a significant measure of First Amendment protection’: ‘[O]nly in relatively narrow and
well-defined circumstances may government bar public dissemination of protected materials to them, Erznoznik,
422 U.S. at 212-13. Although States “possess[{] legitimate power to protect children from harm, .. . that does not

include a free-floating power to restrict the ideas to which children may be exposed.’””

Beyond its First Amendment violations, HB 2991 is unconstitutional under the Dormant Commerce Clause because
it regulates behavior and activities that take place outside of Arizona. The law also imposes requirements on
websites for the use, tracking, and storage of information about their users who are under the age of 18. These
requirements conflict with COPPA, a federal law that governs how websites handle minors’ data. Therefore, HB

2991 also violates the Constitution’s Supremacy Clause.

Given the legal landscape, HB 2991's age-verification and parental-consent requirements cannot survive judicial
review. Unlike regulating access to physical products no one has a constitutionally enumerated right to buy
(cigarettes, alcohol), requiring ID (or similar “identity-based” burdens) for accessing lawful speech violates the First
Amendment rights of adults, minors, and businesses alike. “Age-verification schemes,” a federal district court
recently held in enjoining Arkansas’s similar age-verification requirements, “are not only an additional hassle, but

they also require that website visitors forgo the anonymity otherwise available on the internet.””

Age Verification proposals undermine parental authority.

Poorly-designed age verification laws not only face legal challenges, but also encroach upon parents'

long-established prerogatives in guiding their children's upbringing and online activities. Many online platforms

* See NetChoice v. Griffin, Western District of Arkansas (2023) https://netchoice.ora/netchoice-v-ariffin’ NetChoice v. Murrill, Middle
District of Louisiana (2025) hitos://netchoice.org/netchoice-v-murrill-louisiana/ NetChoice v. Yost, Southern District of Ohio (2024)
RR Fey my

have already implemented robust parental control features. For example, some online platforms have led the way

with suites of tools for parents and teens to better protect themselves.

Additional parental controls are available at the browser, device, and ISP level. For example, iPhones and iPads
already empower parents to limit the time their children can spend on the device, choose which applications (e.g.,
YouTube, Facebook, Snapchat, or Instagram) their children can use, set age-related content restrictions for those
applications, filter online content, and control privacy settings. Market-driven innovation allows for diverse

solutions that address different needs and preferences.

Moreover, if onerous requirements are forced onto social media platforms, minors will quickly shift their use to
sites at the fringes of the internet, circumventing the protections the law aims to establish. This highlights the

ineffectiveness of platform-level verification as a comprehensive solution.

Simply put, a one-size-fits-all government mandate will give users a false sense of security and will flatten the
offerings for youth safety that are currently provided by the private sector. It would stifle innovation in this space
and potentially reduce protections for Arizonan youth, as traffic shifts away from platforms operating in good faith

and as companies focus on compliance rather than developing more effective, tailored solutions.

Age Verification proposals would put Arizonans’ private data at risk, leaving them vulnerable
to breaches and crime.

Mandating age verification creates immediate privacy and cybersecurity liabilities for users. Age verification
systems require collecting and storing sensitive personal data, potentially including government-issued IDs or
biometric information. This not only contradicts the bipartisan aim of improving data security but also creates a
new target for cybercriminals, potentially putting Arizona consumers at risk of identity theft or other forms of
fraud. As we know from recent experience, any time there is a store of sensitive information it becomes a prime

target for identity thieves and other nefarious individuals.

Age verification technology remains unproven and insufficiently secure. There are countless examples of
high-profile hacks of concentrated collections of sensitive data, from the federal Office of Personnel Management*
to health insurance exchanges created by the Affordable Care Act.° Concentrating sensitive data creates a bullseye
for bad actors. Age verification systems create such a target, demonstrated by the recent hack of an age verification

system used in Australia to verify and store the information of adults accessing physical locations with age

4 Sclutto, Jim, “OPM pl let data breach sel ee at 5 pla CNN, rh 10, 2015,

restrictions, such as bars.° The requirements of HB 2991 would necessitate creating caches of sensitive data,

including personal identification, of all Arizona users regardless of their age.

A quarter of minors become a victim of identity fraud or theft before their 18th birthday.’ The problem is even
worse for minors in foster care and child welfare systems. Identity fraud incidents can affect a young person’s credit
reports, holding them back on the path to financial stability. Age verification mandates stand to make this problem

a catastrophe.

Conclusion

While age-verification proposals are well-intended, NetChoice strongly believes that the drawbacks outweigh
potential benefits. We respectfully urge the committee to reject this unconstitutional and ineffective approach.
Instead, we encourage fostering private sector innovation in parental controls and youth safety tools. NetChoice
members remain committed to protecting minors online through empowering parents, educating users, and
working with policymakers to develop more effective and constitutional solutions to address concerns about

underage access to sensitive content or services.

We want to be a resource to discuss these issues in further detail, and we appreciate the opportunity to provide

the committee with our thoughts on this important matter.

Sincerely,

Patrick Hedger
Director of Policy
NetChoice®

NetChoice is a trade association that works to protect free expression and promote free enterprise online.

© Kidd, Jessica, “Cybercrime detectives arrest man following alleged data breach involving more than 1 million NSW clubs customer
records,” ABC News, May 1, 2024,
NUDpS NAN gaDC NELa ews/2U Ul >t i i= ia did-Dieati HUES: Y 5

‘ 25 percent of kids will face identity theft before turning 18. Age-verification laws will make this worse. - R Street Institute (2024).
8 The views of NetChoice expressed here do not necessarily represent the views of all NetChoice members.

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2991

DATE February 17, 2026 MOTION: I )

PASS AYE NAY PRESENT | ABSENT
Aguilar uf
Blackman A
Carter N V4 Wz
Cavero yf
Connolly ue
Diaz 4
Hendrix VY
Villegas it
Wilmeth ,
Way, Vice-Chairman Va
Weninger, Chairman vA
iO | | O ©

MA-,

APPROVED: COMMITTEE SECRETARY

Saif /"A

~ JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. Ea

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB4088: commercial motor vehicle; liability insurance
Sponsor: Representative Lopez, LD 16
Committee on Commerce

Overview
Mandates motor carriers transporting agricultural commodities to maintain a liability policy
sufficient to cover emergency towing and recovery services.

History
Statute prescribes financial responsibility requirements which mandate individuals

operating motor vehicles in furtherance of a commercial enterprise maintain combined single
limit liability insurance based on the vehicles declared gross weight. For vehicles
transporting nonhazardous property, the insurance minimum for vehicles weighting between
20,001 and 26,000 pounds is $300,000 and for vehicles weighing more than 26,000 pounds is
$750,000 (A.R.S. § 28-4033).

Motor carrier is a person who operates or causes to be operated a commercial motor vehicle
on a public highway. Commercial motor vehicle as a motor vehicle designed, used or
maintained to transport passengers or property in the furtherance of a commercial enterprise
on Arizona highways, including a vehicle that has either a gross weight of 26,001 or more
pounds and that is used for intrastate commerce (A.R.S. § 28-5201).

Provisions

1. Requires motor carriers transporting agricultural commodities on Arizona highways for
intrastate commerce to maintain a liability policy that is sufficient to cover emergency
towing and recovery services. (Sec. 1)

2. Specifies the liability policy must be satisfied by cargo insurance coverage applicable to
the agricultural commodity being transported or a surety bond or other approved
financial security. (Sec.1)

3. Stipulates any unpaid amount owed to an operator for providing emergency towing and
recovery services to a commercial motor vehicle towing agricultural commodities is a lien
on the commercial motor vehicle and agricultural commodity of the motor carrier. (Sec.

1)

4, Allows the towing or recovery operator to perfect the lien against the commercial motor
vehicle owner by recording a notice of the lien in the Office of the Secretary of State. (Sec.
1)

0 Prop 105 (45 votes) O1 Prop 108 (40 votes) OO Emergency (40 votes) O Fiscal Note

Initials PB HB 4088
2/11/2026 Page 1 Commerce

Attachment HO
5. Instructs the towing or recovery operator to issue a lien release, upon satisfaction, to the
owner of the commercial motor vehicle and record the release in the Office of the Secretary
of State. (Sec. 1)

6. Exempts the following from the liability policy requirements:
a. farm-to-field operations;
b. private hauling or self-hauling by a farmer or rancher; and
c. a noncommercial or passenger vehicle. (Sec. 1)

7. Defines agricultural commodity and emergency towing and recovery services. (Sec. 1)

Initials PB HB 4088
2/11/2026 Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. HB 4088

DATE February 17, 2026 MOTION: Ok led

PASS AYE NAY PRESENT | ABSENT

Aguilar Vv

Blackman WA

Carter N 4

Cavero , Vv

Connolly TA

Diaz Vv a

Hendrix ut

Villegas xslt

Wilmeth i

Way, Vice-Chairman V4

Weninger, Chairman /

uiynlt |o

s i
APPROVED: senenac SECHEIARY
/

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT__‘]
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB4086: escrow agents; notice; property sale
Sponsor: Representative Griffin, LD 19
Committee on Commerce

Overview

Provides reporting requirements for escrow agents relating to transference of real property
and instructs the Arizona Department of Real Estate (ADRE) to create an early alert system
that notifies persons of pending sales or transfers of real estate ownership.

History
The Department of Insurance and Financial Institutions licenses, monitors and regulates the

safety and soundness of regulated entities, including the examination of escrow agents and
their trusts (A.R.S § 6-122). Simultaneously, the ADRE governs the licensing and
enforcement of real estate brokers and salespersons under the authority of the real estate
commissioner (A.R.S §§ 32-2102, 32-2107).

County recorders are required to provide a system for notifying a person or entity when any
document is recorded in which the person or entity is mentioned. The system is voluntary
and notice must be provided promptly through email, text message or other similar means
(A.R.S § 11-467). In Maricopa County, the Maricopa County Title Alert system alerts entities
after a document is officially recorded under an entities' name.

Provisions
1. Mandates an escrow agent to transmit specific property, owner and escrow company
information to the ADRE, when either:
a. receiving orders to transfer real property ownership through sale or inheritance and
creates preliminary title reports; or
b. five days before recording a title that is being handled as a courtesy, transferring
ownership or placing a lien on real property. (Sec. 1)

2. Directs ADRE's Commissioner to create and administer an early alert system that, upon
receiving notice from an escrow agent or company, notifies individuals of pending sales
or transfers of real estate ownership. (Sec. 2)

3. Requires the early alert system to provide prompt notice by email, text message or other
similar means of communication. (Sec. 2)

4. Specifies participation in the early alert system is voluntary and must allow individuals
to opt in to the system. (Sec. 2)

Exempts the early alert system from public records statutes. (Sec. 2)
6. Makes technical changes. (Sec. 2)
OO Prop 105 (45 votes) OO Prop 108 (40 votes) OO Emergency (40 votes) O Fiscal Note

Initials PB HB 4086
2/11/2026 Page 1 Commerce

Attachment dar ;
100 North 15th Avenue,

DEPARTMENT OF Suite 201} KATIE HOBBS
BS REAL ESTATE Phoenix, AZ, 85007 | COVERNOR
SUSAN NICOLSON

602.771.7700 COMMISSIONER

Dear Chairman Weninger and Members of the Committee,

| am writing to express my strong support for HB4086, a critical piece of legislation that will
fundamentally change how Arizona protects its property owners from deed fraud.

As the leader of the agency on the frontline of intake for title theft cases, | have personally witnessed
the devastation caused by this crime. Our data shows a clear need for proactive defense: of the over
80 deed fraud cases the Department has tracked in the past two and a half years, a staggering 87%
would have passed through escrow. The current "best-practice" of merely setting up a Google alert is
insufficient. HB4086 will stop deed theft before the final transfer of ownership, offering Arizonans a
critical, proactive defense.

The proposed alert system operates as follows:

e Consumer Registration: Property owners voluntarily register for the alert system via the
Department’s website.

e Escrow Integration: Upon enactment, the Department will establish a consumable Application
Programming Interface (API) for the escrow industry. Alternatives for data transfer will also be
provided, including CSV/Excel uploads, a fillable form, or a dedicated email address.

e Alert Trigger: The system will receive transaction data from an escrow company and match it
against the secure owner database, triggering an immediate alert if a match is found.

e@ Owner Notification: The alert will notify the property owner that a sale is in progress and
provide clear, actionable instructions on the steps to take if they are not the party initiating
the sale.

e Department Response: Upon receiving a verified alert from the property owner, the
Department of Real Estate will contact the appropriate escrow office and coordinate a
response with the Attorney General’s criminal division.

HB4086 will create a real and substantial difference in protecting the citizens of Arizona. | urge the
committee to approve this legislation.

incerely,

mmissioner Nicolson

Website | www.azre,.gov

Attachment Y

—_.
Pa 7

DESERT DECEPTION: DEED FRAUD
HEADLINES FROM ARIZONA

MARICOPA COUNTY REPORTS
SURGE IN FRAUDULENT TRANSFERS
Recorder's office sees spike in forged
deed filings targeting vacant properties.
— AZ Central, Oct 2023

SENIORS TARGETED IN TUCSON
‘TITLE THEFT’ SCHEMES

Scammers exploit vulnerable homeowners,
transferring titles without their knowledge.
— Tucson Sentinei, Nov 2023

ATTORNEY GENERAL ISSUES
STATEWIDE ALERT ON PROPERTY SCAMS
Official warning highlights new tactics used
by organized fraud rings in Arizona.

— Arizona Daily Star, Jan 2024

PHOENIX WOMAN DISCOVERS HOME
SOLD WITHOUT HER KNOWLEDGE
Victim finds deed transferred to stranger;
forced to fight for property rights in court.
— AZ Familiy, Mar 2024

CALL TO ACTION: ARIZONA LAW MAKERS, VOTE YES ON HB4086 We.
Protect Homeowners from Deed Fraud & Property Scams! |

_
HB4086 Early Real Estate Sales Alert System
& Property Owner Sign Up Owners register with DRE for alert program. ee eee

se AP) , = Automated
Real Estate => Escrow => Preliminary ""? >» Data => DRE Data
Contract Officer Title Report Transfer Comparison
Cy Loa Wenn Rae ~ | CRE con-pares dala to
= . Created by registerecl property
Creates a binding Recsives contract Escrow Officer, Application Programming owners database,
agreement. with an order to interface automaticall -
escrow scrvices. y :
transfer data to DRE. :
Data Sent By API
* Escrow Company rN @
* Escrow Officer Email Electronic Notice No Action/Standard
+ Property Assessor Parcel Number Sent Process
. Properly Owner(s) Name ‘ : Matching data sonds If{no maich, proceeds
+ Property Mailing Address (if available) property onner an with standard process.
electronic nolce.
] ”

S WAYS TO TRANSMIT REAL ESTATE TRANSACTION DATA

TO THE EARLY REAL ESTATE ALERT SYSTEM

1. CONNECT TO DEPARTMENT'S
CONSUMABLE API

I = Direct, automated data transfer via API integration.

a oe

IKLSX Structured pee file erate for batch processing. :

2. WEBSITE BASED FILLABLE FORM

Manual data entry through a secure online form.

4. UPLOAD CSV FILE
Screen s CSV. Comma-separated values file upload for simple data.

Transaction Data Origin

EARLY REAL ESTATE
ALERT SYSTEM

Secure Data Repository & Analysis

ro 5. SEND EMAIL WITH INFORMATION

Secure email submission of transaction details.

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO.

DATE February 17, 2026 MOTION:

HB 4086

DP

PASS NAY PRESENT

ABSENT

Aguilar

Blackman

Carter N Vv

Cavero

Connolly

Diaz

Hendrix

Villegas

SRI SARK KRKI

Wilmeth

Way, Vice-Chairman -

V

Weninger, Chairman

7 | a |

O

APPROYED: soi foe Lobe

/
FF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT. Y Y

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2999: municipal improvement districts; technical correction
S/E: infrastructure finance districts
Sponsor: Representative Weninger, LD 13
Committee on Commerce

Summary of the Strike-Everything to HB 2999

Overview
Enables the formation of an infrastructure finance district (District).

History
A municipality and a county is authorized to assess development fess to offset costs associated

with providing necessary public services to a development, including the costs of
infrastructure, improvements, real property, engineering and architectural services,
financing and professional services required for the preparation or revision of a development,
including the relevant portion of the infrastructure improvements plan (A.R.S. §§ 9-463.05,
11-1102)

Special taxing districts are usually created to fill a need and to enable the provision of
services in an area that might otherwise be limited from receiving those services for various
reasons, including size, location, financial limitations or unavailability of other government
support. The formation of a special taxing district creates a funding stream to pay for the
desired or needed services by placing the responsibility on those who benefit from that
service.

Title 48 of the Arizona Revised Statutes currently allows and outlines the process for the
formation of various types of special taxing districts including fire districts, irrigation
districts, hospital districts, pest abatement districts and power districts. Although the
specific process depends on the type of district created, the formation in many cases requires
the submission of petitions to the county board of supervisors followed by a public hearing.
Sometimes an election may be required to form a district.

Provisions
Infrastructure Finance Districts
1. Authorizes individuals and entities having fee-title ownership of all real property in the
proposed district to petition the Arizona Finance Authority (Authority) to form a District.
(Sec. 3)

2. Detail the contents of the petition. (Sec. 3)

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

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2/15/2026 Page 1 Commerce

Attachment :

—___.
3. Specifies any financial burden of a District and any liability, judgment or claim against a
District is the sole responsibility of the District. (Sec. 3)

4. Provides requirements for a filing notice of the petition to the Authority regarding the
formation of the District. (Sec. 3)

Infrastructure Finance Districts Formation

5. Declares a District is formed only on the issuance of a formation order by the Authority.
(Sec. 3)

6. Instructs the Authority to review the petition to evaluate outlined criteria. (Sec. 3)
Instructs the Authority to approve the formation of the District and issue a formation
order within 60 days after submission of the petition provided specified requirements are
met. (Sec. 3)

Outlines the contents of the formation order. (Sec. 3)
Limits the Authority's review to confirming that the statutory requirements are satisfied
and provides specified factors for petition rejection. (Sec. 3)

10. Provides requirements relating to failure to issue the formation order within 60 days and
recording the formation order in the county's real property records. (Sec. 3)

11. Declares the District is a special purpose district, a tax levying public improvement
district and a municipal corporation in accordance with constitutional and statutory
provisions. (Sec. 3)

12. Instructs the District's board of directors to make a good faith effort to implement the
general plan for the public infrastructure of the District. (Sec. 3)

13. Prescribes limitation and requirements relating to fees and other charges assessed by the
Authority in connection with the District. (Sec. 3)

Infrastructure Finance Districts Governance

14, Specifies the District is governed by a board of directors consisting of three directors. (Sec.
3)

15. Prescribes the qualifications, terms, responsibilities and vacancies of the board. (Sec. 3)

16. Outlines the records that must be keep and open to public inspection by the board. (Sec.
3)

17. Delineates the powers of the District. (Sec. 3)

18. Prevent a District from exercising land use or zoning authority, and adopting or enforcing
zoning ordinances or similar land use regulations. (Sec. 3)

19. Asserts public infrastructure other than personalty may be located only in or on lands
owned by this state, a county, a municipality or the district or dedicated or otherwise
designated as public roadways, highways, streets, thoroughfares, easements or rights-of-
way, whether in or out of the district or a municipality. (Sec. 3)

20. Outlines the contents an agreement may include. (Sec. 3)

21. Declares a person does not have authority to compel the issuance or sale of the bonds of
the district or the exercise of any taxing power of the district to make repayment under
any agreement. (Sec. 3)

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2/15/2026 Page 2 Commerce
22.

23.

24.

25.

26.

27.

28.

29.

30.

31.
32.

Infrastructure Finance Districts Revenue
Specifies the projects to be constructed or acquired as shown in the general plan may be
financed from the following sources of revenue:
a. proceeds received from the sale of bonds of the district;
b. monies of a municipality or Indian tribe or community that are contributed to the
district;
assessments;
ad valorem taxes;
private contributions;
user, landowner and other fees and charges;
proceeds of loans or advances; and
any other monies available to the district by law. (Sec. 3)

pm no as

Infrastructure Finance Districts Project Approval
Instructs and outlines the requirements for the board of directors to conduct a study of
the feasibility and benefits of the project prior to constructing or acquiring any public
infrastructure. (Sec. 3)

Directs the board of directors to provide outlined information, in addition to the study, to
the Authority. (Sec. 3)

Requires the Authority to review the information to confirm that all information required
has been submitted and that the construction or acquisition of the public infrastructure,
complies with the formation order and the general plan and does not otherwise violate
District provisions. (Sec. 3)

Instructs the Authority to notify the District if the submitted information is incomplete
or has not been submitted or if the submitted information indicates that the construction
or acquisition of the public infrastructure does not comply with the formation order or the
general plan or does not otherwise comply with District provisions. (Sec. 3)

Prohibits the board from holding the required public hearing until 30 days has elapsed
since the submission of the information and the District has not received from the
Authority the prescribed notice. (Sec. 3)

Limits fees and other charges assessed in connection with the review of the submitted
information to $15,000 per submission. (Sec. 3)

Infrastructure Finance Districts Tax
Prescribes the limitations regarding the total aggregate outstanding amount of bonds and
the ad valorem tax rate levied to pay the debt service on all general obligation bonds. (Sec.
3)

Authorizes the board to call a general obligation bond election for providing monies for
any public infrastructure purposes consistent with the general plan. (Sec. 3)

Prescribes requirements for bond issuance and bond refunds. (Sec. 3)

Specifies all bonds are secured by a lien on all revenues received in accordance with the
ad valorem tax levy and provides stipulations for the lien. (Sec. 3)

Infrastructure Finance Districts Assessment

33. Authorizes the board to levy an assessment of the costs of any public infrastructure

purpose or any operation and maintenance of public infrastructure on any land in the

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2/15/2026 Page 3 Commerce
34.
35.

36.

37.

38.

39.

40.
41.

42.

43.

44,

45.

46.

47.

48.

49.

District that is based on the benefit determined by the board to be received by the land.
(Sec. 3)

Outlines requirements for issuing assessment bonds. (Sec. 3)

Allows the board to issue and sell assessment bonds, after the adoption of a resolution
levying an assessment on property in the District. (Sec. 3)

Provides requirements for collection of the assessment and delinquent assessments by
the county treasurer. (Sec. 3)

Allows the District to issue and sell refunding bonds to refund any assessment bonds of
the District. (Sec. 3)

Infrastructure Finance Districts Revenue Bonds
Authorizes the board to issue revenue bonds to provide monies for any infrastructure
purposes consistent with the general plan. (Sec. 3)

Requires the District to prescribe fees and charges to generate revenue sufficient to pay
when due the principal and interest of all revenue bonds for the payment of which revenue
has been pledged which are to be identified with the annual budget process of the district.
(Sec. 3)

Outlines restrictions and limitations for revenue bonds. (Sec. 3)

Allows the District to issue and sell refunding bonds to refund any revenue bonds of the
District. (Sec. 3)

Prescribes requirements for the term, denomination, interest rates, selling of bonds and
use. (Sec. 3)

Infrastructure Finance Districts O/M Tax
Allows the board to call an election to authorize the board to levy an O/M tax on the net
limited assessed property valuation of property in the District. (Sec. 3)

Outlines the requirements for levying the O/M tax, include the tax rate. (Sec. 3)

Infrastructure Finance Districts Budgets
Instructs the treasurer to prepare a proposed budget for the ensuing fiscal year to be
submitted to the board for approval. (Sec. 3)

Requires the board to indicate its approval of the budget by resolution, which shall
provide for a hearing on the budget as approved. (Sec. 3)

Allows entities to review and submit comments for its assistance and information in
adopting the annual budget. (Sec. 3)

Requires the board to adopt a budget before October 1 each year. (Sec. 3)

Miscellaneous
Prescribes District requirements relating to:
displaying ad valorem tax or assessment tax on each property tax bill;

a.
b. notice and conducting any election;
c. recording documents with the county recorder;
d. establishing and maintaining an official website;
e. annual reporting;
f. seller disclosures;
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2/15/2026 Page 4 Commerce
g. changes in District boundaries or general plan;
h. district improvements; and
i. district dissolution. (Sec. 3)

50. Define pertinent terms. (Sec. 3)

51. Includes, to the municipal and county schedule for payment of development fees, the costs
identified in the infrastructure improvement plan applicable to a community facilities
district or an infrastructure finance district. (Sec. 1, 2)

52. Cites this act as the State Housing Affordability District Act. (Sec. 4)

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2/15/2026 Page 5 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2999

WOON DAR WM FE

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2999
(Reference to printed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 9-463.05, Arizona Revised Statutes, is amended
to read:

9-463.05. Development fees: imposition by cities and towns;
infrastructure improvements plan; annual report;
advisory _ committee; limitation on actions;
definitions

A. A municipality may assess development fees to offset costs to
the municipality associated with providing necessary public services to a
development, including the costs of infrastructure, improvements, real
property, engineering and = architectural services, financing and
professional services required for the preparation or revision of a
development fee pursuant to this section, including the relevant portion
of the infrastructure improvements plan.

B. Development fees assessed by a municipality under this section
are subject to the following requirements:

1. Development fees shall result in a beneficial use to the
development.

2. The municipality shall calculate the development fee based on
the infrastructure improvements plan adopted pursuant to this section.

3. The development fee shall not exceed a proportionate share of
the cost of necessary public services, based on service units, needed to
provide necessary public services to the development.

4. Costs for necessary public services made necessary by new
development shall be based on the same level of service provided to
existing development in the service area.

5. Development fees may not be used for any of the following:

(a) Construction, acquisition or expansion of public facilities or
assets other than necessary public services or facility expansions
identified in the infrastructure improvements plan.

(b) Repair, operation or maintenance of existing or new necessary
public services or facility expansions.

(c) Upgrading, updating, expanding, correcting or _ replacing
existing necessary public services to serve existing development in order
to meet stricter safety, efficiency, environmental or _ regulatory
standards.

(d) Upgrading, updating, expanding, correcting or _ replacing
existing necessary public services to provide a higher level of service to
existing development.

# of Verbals

Withdrawn

Analysts Initials

Attachment

\p
House Amendments to H.B. 2999

ONO PWM FE

(e) Administrative, maintenance or operating costs of the
municipality.

6. Any development for which a development fee has been paid is
entitled to the use and benefit of the services for which the fee was
imposed and is entitled to receive immediate service from any existing
facility with available capacity to serve the new service units if the
available capacity has not been reserved or pledged in connection with the
construction or financing of the facility.

7. Development fees may be collected if any of the following
occurs:

(a) The collection is made to pay for a necessary public service or
facility expansion that is identified in the infrastructure improvements
plan and the municipality plans to complete construction and to have the
service available within the time period established in the infrastructure
Tmprovement IMPROVEMENTS plan, but in no event longer than the time period
provided in subsection H, paragraph 3 of this section.

(b) The municipality reserves in the infrastructure improvements
plan adopted pursuant to this section or otherwise agrees to reserve
capacity to serve future development.

(c) The municipality requires or agrees to allow the owner of a
development to construct or finance the necessary public service or
facility expansion and any of the following appty APPLIES:

(i) The costs incurred or money advanced are credited against or
reimbursed from the development fees otherwise due from a development.

(ii) The municipality reimburses the owner for those costs from the
development fees paid from all developments that will use those necessary
public services or facility expansions.

(iii) For those costs incurred the municipality allows the owner to
assign the credits or reimbursement rights from the development fees
otherwise due from a development to other developments for the same
category of necessary public services in the same service area.

8. Projected interest charges and other finance costs may be
included in determining the amount of development fees only if the monies
are used for the payment of principal and interest on the portion of the
bonds, notes or other obligations issued to finance construction of
necessary public services or facility expansions identified in the
infrastructure improvements plan.

9. Monies received from development fees assessed pursuant to this
section shall be placed in a separate fund and accounted for separately
and may only be used for the purposes authorized by this section. Monies
received from a development fee identified in an_ infrastructure
improvements plan adopted or updated pursuant to subsection D of this
section shall be used to provide the same category of necessary public
services or facility expansions for which the development fee was assessed
and for the benefit of the same service area, as defined in the
infrastructure improvements plan, in which the development fee was
assessed. Interest earned on monies in the separate fund shall be

credited to the fund.
House Amendments to H.B. 2999

ONAN HWM FE

10. The schedule for payment of fees shall be provided by the
municipality. Based on the cost identified in the infrastructure
improvements plan, the municipality shall provide a credit toward the
payment of a development fee for the required or agreed to dedication of
public sites, improvements and other necessary public services or facility
expansions included in the infrastructure improvements plan and for which
a development fee is assessed, to the extent the public. sites,
improvements and necessary public services or facility expansions are
provided by the developer, A COMMUNITY FACILITIES DISTRICT ESTABLISHED
UNDER TITLE 48, CHAPTER 4, ARTICLE 6 OR AN INFRASTRUCTURE FINANCE DISTRICT
ESTABLISHED UNDER TITLE 48, CHAPTER 40. The developer of residential
dwelling units shall be required to pay development fees when construction
permits for the dwelling units are issued, or at a later time if specified
in a development agreement pursuant to section 9-500.05. If a development
agreement provides for fees to be paid at a time later than the issuance
of construction permits, the deferred fees shall be paid mo NOT later than
fifteen days after the issuance of a certificate of occupancy. The
development agreement shall provide for the value of any deferred fees to
be supported by appropriate security, including a surety bond, letter of
credit or cash bond.

11. If a municipality requires as a condition of development
approval the construction or improvement of, contributions to or
dedication of any facilities that were not included in a_ previously
adopted infrastructure improvements plan, the municipality shall cause the
infrastructure improvements plan to be amended to include the facilities
and shall provide a credit toward the payment of a development fee for the
construction, improvement, contribution or dedication of the facilities to
the extent that the facilities will substitute for or otherwise reduce the
need for other similar facilities in the infrastructure improvements plan
for which development fees were assessed.

12. The municipality shall forecast the contribution to be made in
the future in cash or by taxes, fees, assessments or other sources of
revenue derived from the property owner towards the capital costs of the
necessary public service covered by the development fee and shall include
these contributions in determining the extent of the burden imposed by the
development. Beginning August 1, 2014, for purposes of calculating the
required offset to development fees pursuant to this subsection, if a
municipality imposes a construction contracting or similar excise tax rate
in excess of the percentage amount of the transaction privilege tax rate
imposed on the majority of other transaction’ privilege tax
classifications, the entire excess portion of the construction contracting
or similar excise tax shall be treated as a contribution to the capital
costs of necessary public services provided to development for which
development fees are assessed, unless the excess portion was already taken
into account for such purpose pursuant to this subsection.

13. If development fees are assessed by a municipality, the fees
shall be assessed against commercial, residential and _ industrial
development, except that the municipality may distinguish between
different categories of residential, commercial and industrial development

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House Amendments to H.B. 2999

ONO WD

in assessing the costs to the municipality of providing necessary public
services to new development and in determining the amount of the
development fee applicable to the category of development. If @
municipality agrees to waive any of the development fees assessed on a
development, the municipality shall reimburse the appropriate development
fee accounts for the amount that was waived. The municipality shall
provide notice of any such waiver to the advisory committee established
pursuant to subsection G of this section within thirty days.

14. In determining and assessing a development fee applying to land
in a community facilities district established under title 48, chapter 4,
article 6 OR AN INFRASTRUCTURE FINANCE DISTRICT ESTABLISHED UNDER TITLE
48, CHAPTER 40, the municipality shall take into account all public
infrastructure provided by the district and capital costs paid by the
district for necessary public services and shall not assess a portion of
the development fee based on the infrastructure or costs.

C. A municipality shall give at least thirty days' advance notice
of intention to assess a development fee and shall release to the public
and post on its website or the website of an association of cities and
towns if a municipality does not have a website a written report of the
land use assumptions and infrastructure improvements plan adopted pursuant
to subsection D of this section. The municipality shall conduct a public
hearing on the proposed development fee at any time after the expiration
of the ttirty—tay THIRTY-DAY notice of intention to assess a development
fee and at least thirty days before the scheduled date of adoption of the
fee by the governing body. Within sixty days after the date of the public
hearing on the proposed development fee, a municipality shall approve or
disapprove the imposition of the development fee. A municipality shall
not adopt an ordinance, order or resolution approving a development fee as
an emergency measure. A development fee assessed pursuant to this section
shall not be effective until seventy-five days after its formal adoption
by the governing body of the municipality. Nothing in this subsection
shall affect any development fee adopted before July 24, 1982.

D. Before the adoption or amendment of a development fee, the
governing body of the municipality shall adopt or update the land use
assumptions and infrastructure improvements plan for the designated
service area. The municipality shall conduct a public hearing on the land
use assumptions and infrastructure improvements plan at least thirty days
before the adoption or update of the plan. The municipality shall release
the plan to the public, post the plan on its website or the website of an
association of cities and towns if the municipality does not have a
website, including in the posting its land use assumptions, the time
period of the projections, a description of the necessary public services
included in the infrastructure improvements plan and a map of the service
area to which the land use assumptions apply, make available to the public
the documents used to prepare the assumptions and plan and provide public
notice at least sixty days before the public hearing, subject to the
following:

1. The land use assumptions and infrastructure improvements plan
shall be approved or disapproved within sixty days after the public

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House Amendments to H.B. 2999

ANANTH WM FP

hearing on the land use assumptions and infrastructure improvements plan
and at least thirty days before the public hearing on the report required
by subsection C of this section. A municipality shall not adopt an
ordinance, order or resolution approving the land use assumptions or
infrastructure improvements plan as an emergency measure.

2. An infrastructure improvements plan shall be developed by
qualified professionals using generally accepted engineering and planning
practices pursuant to subsection E of this section.

3. A municipality shall update the land use assumptions and
infrastructure improvements plan at least every five years. The initial
five—year FIVE-YEAR period begins on the day the infrastructure
improvements plan is adopted. The municipality shall review and evaluate
its current land use assumptions and shall cause an update of the
infrastructure improvements plan to be prepared pursuant to this section.

4, Within sixty days after completion of the updated land use
assumptions and infrastructure improvements plan, the municipality shall
schedule and provide notice of a public hearing to discuss and review the
update and shall determine whether to amend the assumptions and plan.

5. A municipality shall hold a public hearing to discuss the
proposed amendments to the land use assumptions, the infrastructure
improvements plan or the development fee. The land use assumptions and
the infrastructure improvements plan, including the amount of any proposed
changes to the development fee per service unit, shall be made available
to the public on or before the date of the first publication of the notice
of the hearing on the amendments.

6. The notice and hearing procedures prescribed in paragraph 1 of
this subsection apply to a hearing on the amendment of land use
assumptions, an infrastructure improvements plan or a development fee.
Within sixty days after the date of the public hearing on the amendments,
a municipality shall approve or disapprove the amendments to the land use
assumptions, infrastructure improvements plan or development fee. A
municipality shall not adopt an ordinance, order or resolution approving
the amended land use assumptions, infrastructure improvements plan or
development fee as an emergency measure.

7. The advisory committee established under subsection G@ of this
section shall file its written comments on any proposed or updated land
use assumptions, infrastructure improvements plan and development fees
before the fifth business day before the date of the public hearing on the
proposed or updated assumptions, plan and fees.

8. If, at the time an update as prescribed in paragraph 3 of this
subsection is required, the municipality determines that no changes to the
land use assumptions, infrastructure improvements plan or development fees
are needed, the municipality may as an alternative to the updating
requirements of this subsection publish notice of its determination on its
website and include the following:

(a) A statement that the municipality has determined that no change
to the land use assumptions, infrastructure improvements plan_ or

development fee is necessary.
House Amendments to H.B. 2999

(b) A description and map of the service area in which an update
has been determined to be unnecessary.

(c) A statement that by a specified date, which shall be at least
sixty days after the date of publication of the first notice, a person may
make a written request to the municipality requesting that the land use
assumptions, infrastructure improvements plan or development fee be
updated.

(d) A statement identifying the person or entity to whom the
written request for an update should be sent.

9. If, by the date specified pursuant to paragraph 8 of this
subsection, a person requests in writing that the land use assumptions,
infrastructure improvements plan or development fee be updated, the
municipality shall cause, accept or reject an update of the assumptions
and plan to be prepared pursuant to this subsection.

10. Notwithstanding the notice and hearing requirements for adoption
of an infrastructure improvements plan, a municipality may amend an
infrastructure improvements plan adopted pursuant to this section without
a public hearing if the amendment addresses only elements of necessary
public services in the existing infrastructure improvements plan and the
changes to the plan will not, individually or cumulatively with other
amendments adopted pursuant to this subsection, increase the level of
service in the service area or cause a development fee increase of greater
than five per—cemt PERCENT when a new or modified development fee is
assessed pursuant to this section. The municipality shall provide notice
of any such amendment at least thirty days before adoption, shall post the
amendment on its website or on the website of an association of cities and
towns if the municipality does not have a website and shall provide notice
to the advisory committee established pursuant to subsection G@ of this
section that the amendment complies with this subsection.

E. For each necessary public service that is the subject of a
development fee, the infrastructure improvements plan shall include:

1. A description of the existing necessary public services in the
service area and the costs to upgrade, update, improve, expand, correct or
replace those necessary public services to meet existing needs and usage
and stricter safety, efficiency, environmental or regulatory standards,
which shall be prepared by qualified professionals licensed in this state,
as applicable.

2. An analysis of the total capacity, the level of current usage
and commitments for usage of capacity of the existing necessary public
services, which shall be prepared by qualified professionals licensed in
this state, as applicable.

3. A description of all or the parts of the necessary public
services or facility expansions and their costs necessitated by and
attributable to development in the service area based on the approved land
use assumptions, including a forecast of the costs of infrastructure,
improvements, real property, financing, engineering and architectural
services, which shall be prepared by qualified professionals licensed in

this state, as applicable.
House Amendments to H.B. 2999

ONDA HP WM

4. A table establishing the specific level or quantity of use,
consumption, generation or discharge of a service unit for each category
of necessary public services or facility expansions and an equivalency or
conversion table establishing the ratio of a service unit to various types
of land uses, including residential, commercial and industrial.

5. The total number of projected service units necessitated by and
attributable to new development in the service area based on the approved
land use assumptions and calculated pursuant to generally accepted
engineering and planning criteria.

6. The projected demand for necessary public services or facility
expansions required by new service units for a period not to exceed ten
years.

7. A forecast of revenues generated by new service units other than
development fees, which shall include estimated state-shared revenue,
highway wsers USER revenue, federal revenue, ad valorem property taxes,
construction contracting or similar excise taxes and the capital recovery
portion of utility fees attributable to development based on the approved
land use assumptions, and a plan to include these contributions in
determining the extent of the burden imposed by the development as
required in subsection B, paragraph 12 of this section.

F. A municipality's development fee ordinance shall provide that a
new development fee or an increased portion of a modified development fee
shall not be assessed against a development for twenty-four months after
the date that the municipality issues the final approval for a commercial,
industrial or multifamily development or the date that the first building
permit is issued for a residential development pursuant to an approved
site plan or subdivision plat, provided that no subsequent changes are
made to the approved site plan or subdivision plat that would increase the
number of service units. If the number of service units increases, the
new or increased portion of a modified development fee shall be limited to
the amount attributable to the additional service units. The twenty-four
month period shall not be extended by a renewal or amendment of the site
plan or the final subdivision plat that was the subject of the final
approval. The municipality shall issue, on request, a written statement
of the development fee schedule applicable to the development. If, after
the date of the municipality's final approval of a development, the
municipality reduces the development fee assessed on development, the
reduced fee shall apply to the development.

G. A municipality shall do one of the following:

1. Before the adoption of proposed or updated land use assumptions,
infrastructure improvements plan and development fees as prescribed in
subsection D of this section, the municipality shall appoint an
infrastructure improvements advisory committee, subject to the following
requirements:

(a) The advisory committee shall be composed of at least five
members who are appointed by the governing body of the municipality. At
least fifty per-cemt PERCENT of the members of the advisory committee must
be representatives of the real estate, development or building industries,
of which at least one member of the committee must be from the home

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House Amendments to H.B. 2999

ONAN BP WM FR

building industry. Members shall not be employees or officials of the
municipality.

(b) The advisory committee shall serve in an advisory capacity and
shall:

(i) Advise the municipality in adopting land use assumptions and in
determining whether the assumptions are in conformance with the general
plan of the municipality.

(ii) Review the infrastructure improvements plan and file written

comments.
(iii) Monitor and evaluate implementation of the infrastructure

improvements plan.

(iv) Every year file reports with respect to the progress of the
infrastructure improvements plan and the collection and expenditures of
development fees and report to the municipality any perceived inequities
in implementing the plan or imposing the development fee.

(v) Advise the municipality of the need to update or revise the
land use assumptions, infrastructure improvements plan and development
fee.

(c) The municipality shall make available to the advisory committee
any professional reports with respect to developing and implementing the
infrastructure improvements plan.

(d) The municipality shall adopt procedural rules for the advisory
committee to follow in carrying out the committee's duties.

2. In lieu of creating an advisory committee pursuant to paragraph
1 of this subsection, provide for a biennial certified audit of the
municipality's land use assumptions, infrastructure improvements plan and
development fees. An audit pursuant to this paragraph shall be conducted
by one or more qualified professionals who are not employees or officials
of the municipality and who did not’ prepare the’ infrastructure
improvements plan. The audit shall review the progress of the
infrastructure improvements plan, including the collection and
expenditures of development fees for each project in the plan, and
evaluate any inequities in implementing the plan or imposing the
development fee. The municipality shall post the findings of the audit on
the municipality's website or the website of an association of cities and
towns if the municipality does not have a website and shall conduct a
public hearing on the audit within sixty days of the release of the audit
to the public.

H. On written request, an owner of real property for which a
development fee has been paid after July 31, 2014 is entitled to a refund
of a development fee or any part of a development fee if:

1. Pursuant to subsection B, paragraph 6 of this section, existing
facilities are available and service is not provided.

2. The municipality has, after collecting the fee to construct a
facility when service is not available, failed to complete construction
within the time period identified in the infrastructure improvements plan,
but in no event later than the time period specified in paragraph 3 of

this subsection.
House Amendments to H.B. 2999

ONO ONHP WM FR

3. For a development fee other than a development fee for water or
wastewater facilities, any part of the development fee is not spent as
authorized by this section within ten years after the fee has been paid
or, for a development fee for water or wastewater facilities, any part of
the development fee is not spent as authorized by this section within
fifteen years after the fee has been paid.

I. If the development fee was collected for the construction of all
or a portion of a specific item of infrastructure, and on completion of
the infrastructure the municipality determines that the actual cost of
construction was less than the forecasted cost of construction on which
the development fee was based and the difference between the actual and
estimated cost is greater than ten per cent, the current owner may receive
a refund of the portion of the development fee equal to the difference
between the development fee paid and the development fee that would have
been due if the development fee had been calculated at the actual
construction cost.

J. A refund shall include any interest earned by the municipality
from the date of collection to the date of refund on the amount of the
refunded fee. All refunds shall be made to the record owner of the
property at the time the refund is paid. If the development fee is paid
by a governmental entity, the refund shall be paid to the governmental
entity.

K. A development fee that was adopted before January 1, 2012 may
continue to be assessed only to the extent that it will be used to provide
a necessary public service for which development fees can be assessed
pursuant to this section and shall be replaced by a development fee
imposed under this section on or before August 1, 2014. Any municipality
having a development fee that has not been replaced under this section on
or before August 1, 2014 shall not collect development fees until the
development fee has been replaced with a fee that complies with this
section. Any development fee monies collected before January 1, 2012
remaining in a development fee account:

1. Shall be used towards the same category of necessary public
services as authorized by this section.

2. If development fees were collected for a purpose not authorized
by this section, shall be used for the purpose for which they were
collected on or before January 1, 2020, and after which, if not spent,
shall be distributed equally among the categories of necessary public
services authorized by this section.

L. A moratorium shall not be placed on development for the sole
purpose of awaiting completion of all or any part of the process necessary
to develop, adopt or update development fees.

M. In any judicial action interpreting this section, all powers
conferred on municipal governments in this section shall be narrowly
construed to ensure that development fees are not used to impose on new
residents a burden all taxpayers of a municipality should bear equally.

N. Each municipality that assesses development fees shall submit an
annual report accounting for the collection and use of the fees for each
service area. The annual report shall include the following:

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1. The amount assessed by the municipality for each type of
development fee.

2. The balance of each fund maintained for each type of development
fee assessed as of the beginning and end of the fiscal year.

3. The amount of interest or other earnings on the monies in each
fund as of the end of the fiscal year.

4. The amount of development fee monies used to repay:

(a) Bonds issued by the municipality to pay the cost of a capital
improvement project that is the subject of a development fee assessment,
including the amount needed to repay the debt service obligations on each
facility for which development fees have been identified as the source of
funding and the time frames in which the debt service will be repaid.

(b) Monies advanced by the municipality from funds other than the
funds established for development fees in order to pay the cost of a
capital improvement project that is the subject of a development fee
assessment, the total amount advanced by the municipality for each
facility, the source of the monies advanced and the terms under which the
monies will be repaid to the municipality.

5. The amount of development fee monies spent on each capital
improvement project that is the subject of a development fee assessment
and the physical location of each capital improvement project.

6. The amount of development fee monies spent for each purpose
other than a capital improvement project that is the subject of a
development fee assessment.

O. Within ninety days following the end of each fiscal year, each
municipality shall submit a copy of the annual report to the city clerk
and post the report on the municipality's website or the website of an
association of cities and towns if the municipality does not have a
website. Copies shall be made available to the public on request. The
annual report may contain financial information that has not been audited.

P. A municipality that fails to file the report and post the report
on the municipality's website or the website of an association of cities
and towns if the municipality does not have a website as required by this
section shall not collect development fees until the report is filed and
posted.

Q. Any action to collect a development fee shall be commenced
within two years after the obligation to pay the fee accrues.

R. A municipality may continue to assess a development fee adopted
before January 1, 2012 for any facility that was financed before June 1,
2011 if:

1. Development fees were pledged to repay debt service obligations
related to the construction of the facility.

2. After August 1, 2014, any development fees collected under this
subsection are used solely for the payment of principal and interest on
the portion of the bonds, notes or other debt service obligations issued
before June 1, 2011 to finance construction of the facility.

S. Through August 1, 2014, a development fee adopted before January
1, 2012 may be used to finance construction of a facility and may be
pledged to repay debt service obligations if:

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1. The facility that is being financed is a facility that is
described under subsection T, paragraph 7, subdivisions (a) through (g) of
this section.

2. The facility was included in an infrastructure improvements plan
adopted before June 1, 2011.

3. The development fees are used for the payment of principal and
interest on the portion of the bonds, notes or other debt service
obligations issued to finance construction of the necessary public
services or facility expansions identified in the infrastructure
Tmprovemert IMPROVEMENTS plan.

T. For the purposes of this section:

1. "Dedication" means the actual conveyance date or the date an
improvement, facility or real or personal property is placed into service,
whichever occurs first.

2. "Development" means:

(a) The subdivision of land.

(b) The construction, reconstruction, conversion, structural
alteration, relocation or enlargement of any structure that adds or
increases the number of service units.

(c) Any use or extension of the use of land that increases the
number of service units.

3. "Facility expansion" means the expansion of the capacity of an
existing facility that serves the same function as an otherwise new
necessary public service in order that the existing facility may serve new
development. Facility expansion does not include the repair, maintenance,
modernization or expansion of an existing facility to better serve
existing development.

4. “Final approval" means:

(a) For a nonresidential or multifamily development, the approval
of a site plan or, if no site plan is submitted for the development, the
approval of a final subdivision plat.

(b) For a single family residential development, the approval of a
final subdivision plat.

5. “Infrastructure improvements plan" means a written plan that
identifies each necessary public service or facility expansion that is
proposed to be the subject of a development fee and otherwise complies
with the requirements of this section, and may be the municipality's
capital improvements plan.

6. “Land use assumptions" means projections of changes in land
uses, densities, intensities and population for a specified service area
over a period of at least ten years and pursuant to the general plan of
the municipality.

7. “Necessary public service" means any of the following facilities
that have a life expectancy of three or more years and that are owned and
operated by or on behalf of the municipality:

(a) Water facilities, including the supply, transportation,
treatment, purification and distribution of water, and any appurtenances
for those facilities.

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House Amendments to H.B. 2999

(b) Wastewater facilities, including collection, interception,
transportation, treatment and disposal of wastewater, and_— any
appurtenances for those facilities.

(c) Storm water, drainage and flood control facilities, including
any appurtenances for those facilities.

(d) Library facilities of up to ten thousand square feet that
provide a direct benefit to development, not including equipment, vehicles
or appurtenances.

(e) Street facilities located in the service area, including
arterial or collector streets or roads that have been designated on an
officially adopted plan of the municipality, traffic signals and
rights-of-way and improvements thereon.

(f) Fire and police facilities, including all appurtenances,
equipment and vehicles. Fire and police facilities do not include a
facility or portion of a facility that is used to replace services that
were once provided elsewhere in the municipality, vehicles and equipment
used to provide administrative services, helicopters or airplanes or a
facility that is used for training firefighters or officers from more than
one station or substation.

(g) Neighborhood parks and recreational facilities on real property
up to thirty acres in area, or parks and recreational facilities larger
than thirty acres if the facilities provide a direct benefit to the
development. Park and recreational facilities do not include vehicles,
equipment or that portion of any facility that is used for amusement
parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural
facilities, bandstand and orchestra facilities, bathhouses, boathouses,
clubhouses, community centers greater than three thousand square feet in
floor area, environmental education centers, equestrian facilities, golf
course facilities, greenhouses, lakes, museums, theme parks, water
reclamation or riparian areas, wetlands, zoo facilities or similar
recreational facilities, but may include swimming pools.

(h) Any facility that was financed and that meets all of the
requirements prescribed in subsection R of this section.

8. "Qualified professional" means a professional engineer,
surveyor, financial analyst or planner providing services within the scope
of the person's license, education or experience.

9. "Service area" means any specified area within the boundaries of
a municipality in which development will be served by necessary public
services or facility expansions and within which a substantial nexus
exists between the necessary public services or facility expansions and
the development being served as_ prescribed in the infrastructure
improvements plan.

10. “Service unit" means a standardized measure of consumption, use,
generation or discharge attributable to an individual unit of development
calculated pursuant to generally accepted engineering or planning
standards for a particular category of necessary public services or
facility expansions.

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Sec. 2. Section 11-1102, Arizona Revised Statutes, is amended to

read:
11-1102. County d e S; imposition ) ies;
infrastructure improvements plan; advisory
: ae | ns;
definitions

A. A county may assess development fees to offset costs to the
county associated with providing necessary public services to a
development, including the costs of infrastructure, improvements, real
property, engineering and architectural services, financing and
professional services required for the preparation or revision of
a development fee FEES pursuant to this section, including the relevant
portion of the infrastructure improvements plan.

B. Development fees assessed under this section are subject to the
following requirements:

1. Development fees shall result in a _ beneficial use to the
development.

2. The county shall calculate the development fee FEES based on the
infrastructure improvements plan adopted pursuant to this section.

3. The development fees may not exceed a proportionate share of the
cost of necessary public services, based on service units, needed to
provide necessary public services to the development.

4. Costs for necessary public services made necessary by new
development shall be based on the same level of service provided to
existing development in the service area at the time the infrastructure
improvements plan is adopted.

5. Development fees may not be used for any of the following:

(a) Funding a level of service that is higher than the current
level of service provided to existing development at the time the
infrastructure improvements plan is adopted.

(b) Construction, acquisition or expansion of public facilities or
assets other than necessary public services or facility expansions
identified in the infrastructure improvements plan.

(c) Repair, operation or maintenance of existing or new necessary
public services or facility expansions.

(d) Upgrading, updating, expanding, correcting or _ replacing
existing necessary public services to serve existing development in order
to meet stricter safety, efficiency, environmental or regulatory
standards.

(e) Upgrading, updating, expanding, correcting or replacing
existing necessary public services to provide a higher level of service to
existing development.

(f) Administrative, maintenance or operating costs of the county.

6. Any development for which development fees have been paid is
entitled to the use and benefit of the services for which the development
fees were imposed and is entitled to receive immediate service from any
existing facility with available capacity to serve the new service units
if the available capacity has not been reserved or pledged in connection
with the construction or financing of the facility.

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7. Development fees may be collected if any of the following
occurs:

(a) The collection is made to pay for a necessary public service or
facility expansion that is identified in the infrastructure improvements
plan and the county plans to complete construction and have the service
available within the time period established in the infrastructure
improvements plan, but not longer than the time period provided in
subsection J, paragraph 3 of this section.

(b) The county reserves capacity in the infrastructure improvements
plan adopted pursuant to this section or otherwise agrees to reserve
capacity to serve future development.

(c) The county requires or agrees to allow the owner of a
development to construct or finance the necessary public service or
facility expansion and any of the following applies:

(i) The costs incurred or monies advanced are credited against or
reimbursed from the development fees otherwise due from a development.
The amount of credits issued shall equal the costs identified by the
county in the infrastructure improvements plan associated with the
construction of the necessary public services or facility expansions. The
county shall allow the owner to assign the credits from the development
fees otherwise due from a development and any excess credits to other
developments for the same category of necessary public services in the
Same service area.

(ii) The county reimburses the owner for those costs from the
development fees paid from all developments that will use those necessary
public services or facility expansions. The county shall allow the owner
to assign the reimbursement rights to other developments for the same
category of necessary public services in the same service area.

8. Projected interest charges and other finance costs may be
included in determining the amount of development fees only if the monies
are used for the payment of principal and interest on the portion of the
bonds, notes or other obligations issued to finance construction of
necessary public services or facility expansions identified in the
infrastructure improvements plan.

9. Monies received from development fees shall be placed in a
separate fund and accounted for separately and may only be used for the
purposes authorized by this section. Monies received from development
fees identified in an infrastructure improvements plan adopted or updated
pursuant to subsection E of this section shall be used to provide the same
category of necessary public services or facilities expansions for which
the development fee was assessed and for the benefit of the same service
area as defined in the infrastructure improvements plan in which the
development fees were assessed. Interest earned on monies in the separate
fund shall be credited to the fund.

10. The county shall prescribe the schedule for paying the
development fees. Based on the costs identified in the infrastructure
improvements plan, the county shall provide a credit toward the payment of
the development fees for the required or agreed to dedication of public
sites, improvements and other necessary public services or facility

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expansions included in the infrastructure improvements plan and for which
development fees are assessed, to the extent the public. sites,
improvements and necessary public services or facility expansions are
provided by the developer, A COMMUNITY FACILITIES DISTRICT ESTABLISHED
UNDER TITLE 48, CHAPTER 4, ARTICLE 6 OR AN INFRASTRUCTURE FINANCE DISTRICT
ESTABLISHED UNDER TITLE 48, CHAPTER 40. On request of the developer,
instead of providing a credit toward the payment of development fees, the
county shall provide for reimbursement from the development fees paid from
all development that will use those public sites, improvements. or
necessary public services or facility expansions of the actual costs of
the required or agreed to dedication of public sites, improvements or
other necessary public services or facility expansions included in the
infrastructure improvements plan and for which development fees are
assessed, to the extent the public sites, improvements and necessary
public services or facility expansions are provided by the developer, A
COMMUNITY FACILITIES DISTRICT ESTABLISHED UNDER TITLE 48, CHAPTER 4,
ARTICLE 6 OR AN INFRASTRUCTURE FINANCE DISTRICT ESTABLISHED UNDER TITLE
48, CHAPTER 40. The developer of residential dwelling units shall be
required to pay the fees when construction permits for the dwelling units
are issued, or at a later time if specified in the development agreement
pursuant to section 11-1101. If a development agreement provides for
development fees to be paid at a time later than the issuance of
construction permits, the deferred development fees shall be paid not
later than fifteen days after the issuance of a certificate of occupancy.
The development agreement shall provide for the value of any deferred
development fees to be supported by an appropriate security, including a
surety bond, letter of credit or cash bond.

11. If a county requires as a condition of development approval the
construction or improvement of, contributions to or dedication of any
facilities that were not included in a previously adopted infrastructure
improvements plan, the county shall cause the infrastructure improvements
plan to be amended to include the facilities and shall provide a credit
toward the payment of development fees for the construction, improvement,
contribution or dedication of the facilities to the extent that the
facilities will substitute for or otherwise reduce the need for other
similar facilities in the infrastructure improvements plan for which
development fees were assessed. If a county requires as a condition of
development approval the set aside of active or passive open space, the
county shall issue a credit toward any development fees identified in the
infrastructure improvements plan to fund any park facilities or facility
expansion. On request of the individual or entity seeking development
approval, instead of issuing a credit toward the payment of development
fees, the county shall provide for reimbursement from the development fees
paid from all development that will use those facilities or facility
expansions of the actual costs of the construction or improvement of,
contributions to or dedication of the public facilities required as a

condition of development approval.

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12. The county shall forecast the contribution to be made in the
future in cash, taxes, fees, assessments and all other sources of revenue
derived from the property owner towards the capital costs of the necessary
public service covered by the development fees.

13. If development fees are assessed against residential
development, the county shall also assess development fees against
commercial and industrial development. The county may distinguish between
different categories of residential, commercial and industrial development
in assessing the costs to the county of providing necessary public
services to new development and in determining the amount of the
development fees applicable to the category, except that the county may
not distinguish residential developments on the basis of the size of the
dwelling unit or number of bedrooms. If a county agrees to waive any of
the development fees assessed on a development, the county shall reimburse
the appropriate development fees accounts for the amount that was
waived. The county shall provide notice of any such waiver to the
advisory committee established pursuant to subsection I of this section.

14. In determining and assessing development fees applying to land
in a community facilities district established under title 48, chapter 4,
article 6, the county shall take into account all public infrastructure
provided by the district and capital costs paid by the district for
necessary public. services and shall not assess a_ portion of the
development fees based on the infrastructure or costs.

15. The county shall not assess or collect development fees from a
school district or charter school, other than fees assessed or collected
for streets and water and wastewater utility functions.

C. Before assessing development fees, the county shall:

1. Give at least thirty days’ advance notice of intention to assess
new or increased development fees.

2. Release to the public and post on the county's website a written
report of the land use assumptions and infrastructure improvements plan
adopted pursuant to subsection E of this section.

3. Conduct a public hearing on the proposed development fees at any
time after the expiration of the thirty-day notice of intention to assess
development fees and at least thirty days before the scheduled date of
adoption of the development fees. Within sixty days after the date of the
public hearing on the proposed development fees, the county shall approve
or disapprove the imposition of the development fees. A county may not
adopt an ordinance, order or resolution approving development fees as an
emergency measure.

D. Development fees assessed pursuant to this section are not
effective for at least ninety days after formal adoption by the board of
supervisors.

E. Before the adoption or amendment of development fees or
amendment of the boundaries of a service area, the board of supervisors
shall adopt or update the land use assumptions and infrastructure
improvements plan for the designated service area. The county shall
conduct a public hearing on the land use assumptions and infrastructure
improvements plan at least thirty days before the adoption or update of

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the infrastructure improvements plan. The county shall release the
infrastructure improvements plan to the public, post the infrastructure
improvements plan on the county's website, including in the posting the
land use assumptions, the time period of the projections, a description of
the necessary public services included in the infrastructure improvements
plan and a map of the service area to which the land use assumptions
apply, make available to the public the documents used to prepare the land
use assumptions and infrastructure improvements plan and provide public
notice at least sixty days before the public hearing, subject to the
following:

1. The land use assumptions and infrastructure improvements plan
shall be approved or disapproved within sixty days after the public
hearing on the land use assumptions and infrastructure improvements plan
and at least thirty days before the public hearing on the report required
by subsection C of this section. A county may not adopt an ordinance,
order or resolution approving the land use assumptions or infrastructure
improvements plan as an emergency measure.

2. An infrastructure improvements plan shall be developed by
qualified professionals using generally accepted engineering and planning
practices pursuant to subsection F of this section.

3. A county shall update the land use assumptions’ and
infrastructure improvements plan at least every five years. The initial
five-year period begins on the day the infrastructure improvements plan is
adopted. The county shall review and evaluate the current land use
assumptions and shall cause an update of the infrastructure improvements
plan to be prepared pursuant to this section.

4. Within sixty days after completion of the updated land use
assumptions and infrastructure improvements plan, the county. shall
schedule and provide notice of a public hearing to discuss and review the
update and shall determine whether to amend the land use assumptions and
infrastructure improvements plan.

5. A county shall hold a public hearing to discuss the proposed
amendments to the land use assumptions, the infrastructure improvements
plan or the development fees. The land use assumptions and_ the
infrastructure improvements plan, including the amount of any proposed
changes to the development fees per service unit, shall be made available
to the public on or before the date of the first publication of the notice
of the hearing on the amendments.

6. The hearing procedures prescribed in paragraph 1 of this
subsection apply to a hearing on the amendment of land use assumptions, an
infrastructure improvements plan or development fees. Within sixty days
after the date of the public hearing on the amendments, a county shall
approve or disapprove the amendments to the land use assumptions,
infrastructure improvements plan or development fees. A county may not
adopt an ordinance, order or resolution approving the amended land use
assumptions, infrastructure improvements plan or development fees as an

emergency measure.

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7. The advisory committee established under subsection I of this
section shall file its written comments on any proposed or updated land
use assumptions, infrastructure improvements plan and development fees
before the fifth business day before the date of the public hearing on the
proposed or updated land use assumptions, infrastructure improvements plan
and development fees.

8. If, at the time an update as prescribed in paragraph 3 of this
subsection is required, the county determines that no changes to the land
use assumptions, infrastructure improvements plan or development fees are
needed, the county, as an alternative to the updating requirements of this
subsection, may publish notice of the determination on the county's
website that includes the following:

(a) A statement that the county has determined that no change to
the land use assumptions, infrastructure improvements plan or development
fees is necessary.

(b) A description and map of the service area in which an update
has been determined to be unnecessary.

(c) A statement that by a specified date, which shall be at least
sixty days after the date of publication of the first notice, a person may
request to the county in writing that the county update the land use
assumptions, infrastructure improvements plan or development fees.

(d) A statement identifying the person or entity to whom the
written request for an update should be sent.

9. If, by the date specified pursuant to paragraph 8 of this
subsection, a person requests in writing that the county update the land
use assumptions, infrastructure improvements plan or development fees, the
county shall cause, accept or reject an update of the land use
assumptions, infrastructure improvements plan or development fees to be
prepared pursuant to this section.

10. Notwithstanding the notice and hearing requirements’ for
adoption of an infrastructure improvements plan, the county may amend an
infrastructure improvements plan without a public hearing if the amendment
addresses only elements of necessary public services in the existing
infrastructure improvements plan and the changes to the plan will not,
individually or cumulatively with other amendments adopted pursuant to
this subsection, increase the level of service in the service area or
cause an increase in development fees that is greater than five percent
when new or modified development fees are assessed pursuant to this
section. The county shall provide notice of the amendment at least thirty
days before adoption, shall post the amendment on the county's website and
shall provide notice to the advisory committee established pursuant to
subsection I of this section that the amendment complies with this
subsection.

F. For each necessary public service that is the subject of
development fees, the infrastructure improvements plan shall include:

1. A description of the existing necessary public services in the
service area and the costs to upgrade, update, improve, expand, correct or
replace those necessary public services to meet existing needs and usage
and stricter safety, efficiency, environmental or regulatory standards.

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The description shall be prepared by qualified professionals who are
licensed in this state, as applicable.

2. An analysis of the total capacity, the level of current usage
and commitments for usage of capacity of the existing necessary public
services. The analysis shall be prepared by qualified professionals who
are licensed in this state, as applicable.

3. A description of all or the parts of the necessary public
services or facility expansions and their costs necessitated by and
attributable to new development in the service area based on the approved
land use assumptions, including a forecast of the cost of infrastructure,
improvements, real property, financing, engineering and architectural
services. The description shall be prepared by qualified professionals
who are licensed in this state, as applicable.

4. <A table that establishes the specific level or quantity of use,
consumption, generation or discharge of a service unit for each category
of necessary public services or facility expansions and an equivalency or
conversion table that establishes the ratio of a service unit to various
types of land uses, including residential, commercial and industrial.

' 5. A description of all the costs necessitated by ongoing
maintenance and operations of the necessary public. services once
construction is completed and a description of the source of revenue to be
used to fund the maintenance and operations.

6. The total number of projected service units necessitated by and
attributable to new development in the service area based on the approved
land use assumptions and calculated pursuant to generally accepted
engineering and planning criteria.

7. The projected demand for necessary public services or facility
expansions required by new service units for a period of not more than ten
years.

8. A forecast of revenues generated by new service units other than
development fees, including estimated state shared revenue, highway user
revenue, federal revenue, ad valorem property taxes, construction
contracting or similar excise taxes and the capital recovery portion of
utility fees attributable to development based on the approved land use
assumptions, and a plan to include these contributions in determining the
extent of the burden imposed by the development as required in subsection
B, paragraph 12 of this section.

G. A county's infrastructure improvements plan may _ identify
necessary public services or facility expansions that the county plans to
construct beyond the time period provided for in subsection J, paragraph 3
of this section but may not include the costs of those necessary public
services or facility expansions in the calculation of development fees.

H. A county's development fees ordinance shall provide:

1. That new development fees or an increased portion of modified
development fees may not be assessed against a development for twenty-four
months after the date that the county issues the final approval for a
commercial, industrial or multifamily development or the date that the
first building permit is issued for a residential development pursuant to
an approved site plan or subdivision plat, only if subsequent changes are

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not made to the approved site plan or subdivision plat that would increase
the number of service units. If the number of service units increases,
the new or increased portion of modified development fees shall be limited
to the amount attributable to the additional service units. The period is
not extended by a renewal or amendment of the site plan or the final
subdivision plat that was the subject of the final approval. The county
shall issue, on request, a written statement of the development fees
schedule applicable to the development. If, after the date of the
county's final approval of a development, the county reduces’ the
development fees assessed on development, the reduced fees shall apply to
the development.

2. A process for a development to request an alternative
development fee calculation or change in category of development that
appears on an adopted development fee schedule based on a projection that
the actual burdens and costs associated with the county's provision of
necessary public services or facility expansions to the development that
are to be paid by development fees will differ substantially from those
costs projected by the county or will be substantially less than the
amount projected to be paid by development fees. The county manager or
the county manager's designee shall review the request and make a
determination as to the development fee to be assessed. The assessed
development fee shall have a substantial nexus to the actual burdens and
costs associated with providing the necessary public services or facility
expansions to that development that are to be funded by development fees.
The determination of the county manager is appealable to the board of
supervisors.

I. A county shall do one of the following:

1. Before the adoption of the proposed or updated land use
assumptions, infrastructure improvements plan and development fees as
prescribed in subsection E of this section, appoint an infrastructure
improvements advisory committee, subject to the following requirements:

(a) The advisory committee shall be composed of at least five
members who are appointed by the board of supervisors. At least fifty
percent of the members of the advisory committee must be representatives
of the real estate, development or building industries, of which at least
one member of the committee must be from the home building industry.
Members may not be employees or officials of the county.

(b) The advisory committee shall serve in an advisory capacity and
shall:

(i) Advise the county in adopting land use assumptions and in
determining whether the assumptions are in conformance with the general

plan of the county.
(ii) Review the infrastructure improvements plan and file written

comments.
(iii) Monitor and evaluate implementation of the infrastructure

improvements plan.

(iv) Every year file reports with respect to the progress of the
infrastructure improvements plan and the collection and expenditures of
development fees and report to the county any perceived inequities in

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implementing the infrastructure improvements plan or assessing the
development fees.

(v) Advise the county of the need to update or revise the land use
assumptions, infrastructure improvements plan and development fees.

(c) The county shall make available to the advisory committee any
professional reports with respect to developing and implementing the
infrastructure improvements plan.

(d) The county shall adopt procedural rules for the advisory
committee to follow in carrying out the advisory committee's duties.

2. Provide for a biennial certified audit of the county's land use
assumptions, infrastructure improvements plan and development fees. An
audit pursuant to this paragraph shall be conducted by one or more
qualified professionals who are not employees or officials of the county
and who did not prepare the infrastructure improvements plan. The audit
shall review the progress of the infrastructure improvements plan,
including the collection and expenditures of development fees for each
project in the infrastructure improvements plan, and evaluate any
inequities in implementing the infrastructure improvements plan or
imposing the development fees. The county shall post the findings of the
audit on the county's website and shall conduct a public hearing on the
audit within sixty days after the release of the audit to the public.

J. On written request, an owner of real property for which
development fees have been paid after December 31, 2020 is entitled to a
refund of the development fees or any part of the development fees if:

1. Pursuant to subsection B, paragraph 6 of this section, existing
facilities are available and service is not provided.

2. The county, after collecting the fees to construct a facility
when service is not available, has failed to complete construction within
the time period identified in the infrastructure improvements plan, but in
no event later than the time period specified in paragraph 3 of this
subsection.

3. For development fees other than development fees for water or
wastewater facilities, any part of the development fees is not spent as
authorized by this section within ten years after the fees have been paid
or, for development fees for water or wastewater facilities, any part of
the development fees is not spent as authorized by this section within
fifteen years after the development fees have been paid.

K. If the development fees were collected for the construction of
all or a portion of a specific item of infrastructure, and on completion
of the infrastructure the county determines that the actual cost of
construction was less than the forecasted cost of construction on which
the development fees were based and the difference between the actual and
estimated cost is greater than ten percent, the current owner may receive
a refund of the portion of the development fees equal to the difference
between the development fees paid and the development fees that would have
been due if the development fees had been calculated at the actual

construction cost.

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L. A refund shall include any interest earned by the county from
the date of collection to the date of refund on the amount of the refunded
fees. All refunds shall be paid to the owner of record of the property at
the time the refund is paid. If the development fees are paid by a
governmental entity, the refund shall be paid to the governmental entity.

M. Development fees that were adopted before January 1, 2017 may
continue to be assessed only to the extent that the development fees will
be used to provide a necessary public service for which development fees
can be assessed pursuant to this section and shall be replaced by
development fees imposed under this section on or before January 1, 2021.
Any county having development fees that have not been replaced under this
section on or before January 1, 2021 may not collect development fees
until the development fees have been replaced with fees that comply with
this section. Development fees adopted or amended by a county after
January 1, 2017 shall comply with this section. Any development fees
monies collected before January 1, 2017 remaining in a development fees
account: ;

1. Shall be used towarts TOWARD the same category of necessary
public services as authorized by this section.

2. mt THAT WERE collected for a purpose not authorized by this
section shall be used for the purpose for which the development fees were
collected on or before January 1, 2024, and after which, if not spent,
shall be distributed equally among the categories of necessary public
services authorized by this section.

N. A moratorium may not be placed on development for the sole
purpose of awaiting completion of all or any part of the process necessary
to develop, adopt or update development fees.

O. In any judicial action interpreting this section all powers
conferred on a county by this section shall be narrowly construed to
ensure that development fees are not used to impose on new residents a
burden all taxpayers of a county should bear equally.

P. Each county that assesses development fees shall submit an
annual report accounting for the collection and use of the fees for each
service area. The annual report shall include the following:

1. The amount assessed by the county for each type of development
fee.

2. The balance of each fund maintained for each type of development
fee assessed as of the beginning and end of the fiscal year.

3. The amount of interest or other earnings on the monies in each
fund as of the end of the fiscal year.

4. The amount of development fee monies used to repay:

(a) Bonds issued by the county to pay the cost of a necessary
public service that is the subject of a development fees assessment,
including the amount needed to repay the debt service obligations on each
facility for which development fees have been identified as the source of
funding and the time frames in which the debt service will be repaid.

(b) Monies advanced by the county from funds other than the funds
established for development fees in order to pay the cost of a necessary
public service that is the subject of a development fees assessment, the

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total amount advanced by the county for each facility, the source of the
monies advanced and the terms under which the monies will be repaid to the
county.

5. The amount of development fees monies spent on each necessary
public service or facility expansion that is the subject of a development
fees assessment and the physical location of each capital improvement
project.

6. The amount of development fees monies spent for each purpose
other than a necessary public service or facility expansion that is the
subject of a development fees assessment.

Q. Within ninety days following the end of each fiscal year, each
county shall submit a copy of the annual report to the clerk of the board
of supervisors and post the annual report on the county's website. Copies
shall be made available to the public on request. The annual report may
contain financial information that has not been audited.

R. A county that fails to file the report and post the annual
report on the county's website as required by this section shall not
collect development fees until the report is filed and posted.

S. Any action to collect development fees shall be commenced within
two years after the obligation to pay the development fees accrues.

T. A county may continue to assess development fees adopted before
January 1, 2017 for any facility that was financed before June 1, 2016 if:

1. Development fees were pledged to repay debt service obligations
related to the construction of the facility.

2. After January 1, 2018, any development fees collected under this
subsection are used solely for the payment of principal and interest on
the portion of the bonds, notes or other debt service obligations issued
before June 1, 2016 to finance construction of the facility.

U. Through January 1, 2018, development fees adopted before January
1, 2017 may be used to finance construction of a facility and may be
pledged to repay debt service obligations if:

1. The facility that is being financed is a facility that is
described under subsection V, paragraph 7, subdivision (a), (b), (c), (d)
or (e) of this section.

2. The facility was included in an infrastructure improvements plan
adopted before June 1, 2016.

3. The development fees are used for the payment of principal and
interest on the portion of the bonds, notes or other debt service
obligations issued to finance construction of the necessary public
services or facility expansions identified in the infrastructure
improvements plan.

V. For the purposes of this section:

1. “Dedication” means the actual conveyance date or the date an
improvement, facility or real or personal property is placed into service,
whichever occurs first.

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2. "Development" means:

(a) The subdivision of land.

(b) The construction, reconstruction, conversion, structural
alteration, relocation or enlargement of any structure that adds or
increases the number of service units.

(c) Any use or extension of the use of land that increases the
number of service units.

3. “Facility expansion" means the expansion of the capacity of an
existing facility that serves the same function as an otherwise new
necessary public service in order that the existing facility may serve new
development. Facility expansion does not include the repair, maintenance,
modernization or expansion of an existing facility to better serve
existing development.

4. “Final approval" means, for nonresidential or multifamily
development, the approval of a site plan or, if no site plan is submitted
for the development, the approval of a final subdivision plat.

5. “Infrastructure improvements plan" means a written plan that
identifies each necessary public service or facility expansion that is
proposed to be the subject of development fees and otherwise complies with
the requirements of this section and may be the county's capital
improvements plan.

6. “Land use assumptions" means projections of changes in land
uses, densities, intensities and population for a specified service area
over a period of at least ten years and pursuant to the general plan of
the county.

7. “Necessary public service" means any of the following facilities
that have a life expectancy of three or more years and that are owned and
operated by or on behalf of the county:

(a) Water facilities, including the supply, transportation,
treatment, purification and distribution of water, and any appurtenances
for those facilities.

(b) Wastewater facilities, including collection, interception,
transportation, treatment and disposal of wastewater, and any
appurtenances for those facilities.

(c) Street facilities located in the service area, including
arterial or collector streets or roads that have been designated on an
officially adopted plan of the county, traffic signals and rights-of-way
and improvements thereon. Improvements to rights-of-way do not include
streetcars, railways or other forms of transportation and_ their
corresponding tracks.

(d) Public safety facilities, including all appurtenances,
equipment and vehicles. Public safety facilities do not include a
facility or portion of a facility that is used to replace services that
were once provided elsewhere in the county, vehicles and equipment used to
provide administrative services, helicopters or airplanes, paramilitary
vehicles, court and judicial facilities, facilities that are used for
training firefighters or officers from more than one station or substation
or jail, correctional or detention facilities.

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(e) Neighborhood parks and recreational facilities on real property
up to thirty acres in area, or parks and recreational facilities larger
than thirty acres if the facilities provide a direct benefit to the
development. Parks and recreational facilities do not include vehicles,
equipment of that portion of any facility that is used for amusement
parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural
facilities, bandstand and orchestra facilities, bathhouses, boathouses,
clubhouses, community centers greater than three thousand square feet in
floor area, environmental education centers, equestrian facilities,
trails, golf course facilities, greenhouses, lakes, museums, theme parks,
water reclamation or riparian areas, wetlands, zoo facilities or similar
recreational facilities, but may include swimming pools and equipment or
improvements constituting accessory or incidental amenities to a park or
recreational facility allowed under this section.

(f) Any facility that was financed and that meets all of the
requirements prescribed in subsection T of this section.

8. "Qualified professional" means a_ professional engineer,
surveyor, financial analyst or planner providing services within the scope
of the person's license, education or experience.

9. "Service area" means any specified area within the boundaries of
a county in which development will be served by necessary public services
or facility expansions and within which a substantial nexus exists between
the necessary public services or facility expansions and the development
being served as prescribed in the infrastructure improvements plan.

10. "Service unit" means a standardized measure of consumption,
use, generation or discharge attributable to an individual unit of
development calculated using data specific to the service area in which
the facility will be located and pursuant to generally accepted
engineering or planning standards for a particular category of necessary
public services or facility expansions.

Sec. 3. Title 48, Arizona Revised Statutes, is amended by adding
chapter 40, to read:

CHAPTER 40
INFRASTRUCTURE FINANCE DISTRICTS
ARTICLE 1. GENERAL PROVISIONS

48-7001. Definition

IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. "AD VALOREM TAX" MEANS THE LIMITED PROPERTY TAXES LEVIED BY A
DISTRICT AGAINST THE NET ASSESSED LIMITED PROPERTY VALUATION OF REAL AND
PERSONAL PROPERTY IN THE DISTRICT.

2. "ASSESSMENT" MEANS A CHARGE FOR THE COSTS OF ANY PUBLIC
INFRASTRUCTURE PURPOSE LEVIED BY THE DISTRICT AGAINST SPECIFIC REAL
PROPERTY WITHIN THE DISTRICT FOR THE COSTS OF ANY PUBLIC INFRASTRUCTURE
PURPOSE BASED ON THE BENEFIT DETERMINED BY THE BOARD TO BE RECEIVED BY THE
SPECIFIC REAL PROPERTY AGAINST WHICH THE ASSESSMENT IS LEVIED.

3. “AUTHORITY" MEANS THE ARIZONA FINANCE AUTHORITY ESTABLISHED BY

SECTION 41-5352.
4. "BOARD" MEANS THE BOARD OF DIRECTORS OF A DISTRICT CREATED

PURSUANT TO THIS CHAPTER.
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5: “BONDS":

(a) MEANS ANY BOND PRESCRIBED BY THIS CHAPTER AND ISSUED BY A
DISTRICT.

(b) INCLUDES GENERAL OBLIGATION BONDS, ASSESSMENT BONDS, REVENUE
BONDS AND REFUNDING BONDS.

6. "CLERK" MEANS THE PERSON APPOINTED BY THE BOARD TO BE THE

DISTRICT CLERK.
7. "COUNTY" MEANS THE COUNTY IN WHICH A DISTRICT IS FORMED PURSUANT

TO THIS CHAPTER.

8. “DEBT SERVICE" MEANS THE PRINCIPAL OF, INTEREST ON AND PREMIUM,
IF ANY, ON THE BONDS, WHEN DUE, WHETHER AT MATURITY OR PRIOR REDEMPTION
AND FEES AND COSTS OF REGISTRARS, TRUSTEES, PAYING AGENTS OR OTHER AGENTS
NECESSARY TO HANDLE THE BONDS AND THE COSTS OF CREDIT ENHANCEMENT OR
LIQUIDITY SUPPORT.

9. "DISTRICT" MEANS AN INFRASTRUCTURE FINANCE DISTRICT FORMED
PURSUANT TO THIS CHAPTER.

10. "FINANCING PLAN" MEANS THE DISTRICT'S CAPITAL PLAN CONTAINING
FINANCIAL PROJECTIONS, ENGINEERING STUDIES, COST ALLOCATION, SEQUENCING
AND MARKET-VALUE ANALYSES.

11. "FORMATION ORDER" MEANS THE WRITTEN ORDER ISSUED BY THE
AUTHORITY EVIDENCING ITS FINAL APPROVAL OF THE FORMATION OF A DISTRICT
PURSUANT TO THIS CHAPTER.

12. "GENERAL PLAN” MEANS THE GENERAL PLAN DESCRIBED IN SECTION
48-7002, SUBSECTION B, AS THE PLAN MAY BE AMENDED.

13. "MARKET VALUE" HAS THE SAME MEANING AS PRESCRIBED IN SECTION
28-7091, AS INDICATED BY AN APPRAISAL OF THE REAL PROPERTY BY AN APPRAISER
WHO IS LICENSED OR CERTIFIED PURSUANT TO TITLE 32, CHAPTER 36.

14. "MUNICIPALITY" MEANS A CITY OR TOWN.

15. "O/M TAX" MEANS A SECONDARY PROPERTY TAX LEVIED TO PAY THE
EXPENSES OF OPERATING, MAINTAINING AND ADMINISTERING THE DISTRICT AND THE
PUBLIC INFRASTRUCTURE FINANCED BY THE DISTRICT, INCLUDING LEGAL EXPENSES
AND EXPENSES ASSOCIATED WITH INSURANCE COVERAGE, AS APPROVED BY THE
DISTRICT IN ITS BUDGET.

16. “PETITION” MEANS A PETITION SUBMITTED TO THE AUTHORITY TO
INITIATE FORMATION OF A DISTRICT PURSUANT TO THIS CHAPTER.

17. "PETITIONER" MEANS THE PERSON OR ENTITY THAT INITIATES THE
FORMATION OF A DISTRICT BY SUBMITTING A PETITION TO THE AUTHORITY PURSUANT
TO THIS CHAPTER AND INCLUDES ANY SUCCESSOR OR ASSIGNEE OF THAT PERSON OR
ENTITY THAT THE AUTHORITY RECOGNIZES AS THE PETITIONER FOR THE PURPOSES OF
THE PETITION AND FORMATION ORDER.

18. "PUBLIC INFRASTRUCTURE” MEANS:

(a) WATER, WASTEWATER, SEWER, STORMWATER AND FLOOD CONTROL
FACILITIES AND APPURTENANCES USED FOR THE DEVELOPMENT, TREATMENT, STORAGE,
CONVEYANCE, CONTROL, REUSE, DISTRIBUTION, CONNECTION AND ~ LAWFUL
DISPOSITION OF POTABLE AND NONPOTABLE WATER, WASTEWATER, STORMWATER AND
FLOODWATERS FOR RESIDENTIAL, COMMERCIAL, GOVERNMENTAL, IRRIGATION AND
FIRE-SUPPRESSION USES, EXCLUDING INFRASTRUCTURE DEDICATED PRIMARILY TO
AGRICULTURAL IRRIGATION FACILITIES IMPACTED BY OTHER IMPROVEMENTS
AUTHORIZED BY THIS CHAPTER AND ENERGY AND UTILITY FACILITIES AND

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APPURTENANCES USED FOR THE GENERATION, INTERCONNECTION, TRANSMISSION,
DISTRIBUTION, STORAGE AND CONTROL OF ELECTRIC POWER AND OTHER ENERGY
RESOURCES AND NATURAL GAS AND ALTERNATIVE FUEL PIPELINE AND DISTRIBUTION
FACILITIES, ALL TO THE EXTENT LOCATED WITHIN OR NECESSARY TO SERVE THE
DISTRICT.

(b) TRANSPORTATION AND MOBILITY FACILITIES, IMPROVEMENTS AND
APPURTENANCES USED TO PROVIDE VEHICULAR AND NON-VEHICULAR CIRCULATION,
ACCESS, EGRESS AND PARKING, INCLUDING STREETS, ROADS, HIGHWAYS, BRIDGES,
ALLEYS, PARKING FACILITIES, SIDEWALKS, TRAILS, PATHWAYS, BICYCLE
FACILITIES, EQUESTRIAN ROUTES AND OTHER AREAS AND IMPROVEMENTS INTENDED
FOR MOTORIZED AND NONMOTORIZED TRAVEL AND PARKING, AND, IF LOCATED WITHIN
OR NECESSARY TO SERVE THE DISTRICT, RAILWAY CORRIDORS, RAIL CROSSINGS,
GRADE SEPARATIONS, SIDINGS, SIGNALIZATION AND RELATED RAIL TRANSPORTATION
FACILITIES AND TRAFFIC MANAGEMENT AND CONTROL FACILITIES AND DEVICES,
INCLUDING SIGNALS, INTELLIGENT TRANSPORTATION SYSTEMS, CONTROLS, PAVEMENT
MARKINGS, WAYFINDING, SIGNAGE AND LIGHTING AND ILLUMINATIONS SYSTEMS,
INCLUDING STREET LIGHTING, PATHWAY LIGHTING, AREA LIGHTING AND RELATED
ELECTRICAL AND CONTROL FACILITIES.

(c) PUBLIC REALM AND OPEN SPACE AMENITIES, INCLUDING PEDESTRIAN
MALLS, PARKS, PLAZAS, RECREATIONAL FACILITIES OTHER THAN STADIUMS, AND
OTHER AREAS AND IMPROVEMENTS INTENDED FOR PUBLIC ENTERTAINMENT, ASSEMBLY,
AND RECREATION, TOGETHER WITH LANDSCAPING, GRADING, EARTHWORKS,
STRUCTURES, LAKES AND WATER FEATURES, PLANTINGS, TREES, IRRIGATION AND
WATER DELIVERY SYSTEMS AND RELATED SITE IMPROVEMENTS.

(d) PUBLIC BUILDINGS AND PUBLIC SAFETY FACILITIES, INCLUDING
POLICE, FIRE AND EMERGENCY SERVICES FACILITIES AND RELATED IMPROVEMENTS.

(e) COMMUNICATIONS AND DIGITAL INFRASTRUCTURE, INCLUDING
FIBEROPTIC, WIRELESS AND BROADBAND FACILITIES, CONDUITS, TOWERS, ANTENNAS,
DATA TRANSMISSION SYSTEMS, NETWORK EQUIPMENT, PUBLIC SAFETY COMMUNICATIONS
FACILITIES, AND RELATED APPURTENANCES AND RIGHTS-OF-WAY.

(f) EQUIPMENT, VEHICLES, FURNISHINGS, TECHNOLOGY AND OTHER PERSONAL
PROPERTY AND APPURTENANCES RELATED TO OR NECESSARY FOR THE SFEBATTOR OF
ANY PUBLIC INFRASTRUCTURE AUTHORIZED BY THIS CHAPTER.

(g) REFINANCING ANY MATURED OR UNMATURED BONDS WITH NEW BONDS.

19. “PUBLIC INFRASTRUCTURE PURPOSE" MEANS:

(a) PLANNING, DESIGNING, ENGINEERING, CONSTRUCTING, ACQUIRING OR
INSTALLING OF PUBLIC INFRASTRUCTURE.

(b) ACQUIRING, CONVERTING, RENOVATING OR _ IMPROVING EXISTING
FACILITIES FOR PUBLIC INFRASTRUCTURE.

(c) ACQUIRING INTERESTS IN REAL PROPERTY FOR PUBLIC INFRASTRUCTURE.

(d) ESTABLISHING, MAINTAINING AND REPLENISHING RESERVES IN ORDER TO
SECURE PAYMENT OF DEBT SERVICE ON BONDS.

(e) FUNDING AND PAYING FROM BOND PROCEEDS INTEREST ACCRUING ON
BONDS FOR A PERIOD OF NOT TO EXCEED THREE YEARS AFTER THEIR DATE OF
ISSUANCE.

(f) PROVIDING FOR THE TIMELY PAYMENT OF DEBT SERVICE ON
INDEBTEDNESS OF THE DISTRICT OR OF DEVELOPMENT FEES OR SIMILAR EXACTIONS
IMPOSED BY A MUNICIPALITY OR OTHER PUBLIC ENTITY, TO THE EXTENT THOSE

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CHARGES ARE IMPOSED TO FUND PUBLIC INFRASTRUCTURE THAT IS LOCATED WITHIN,
PRIMARILY SERVES OR IS NECESSITATED BY DEVELOPMENT WITHIN THE DISTRICT.

(g) REFINANCING ANY MATURED OR UNMATURED BONDS WITH NEW BONDS.

(h) INCURRING EXPENSES OF THE DISTRICT THAT ARE INCIDENTAL TO AND

“REASONABLY NECESSARY TO CARRY OUT THE PURPOSES SPECIFIED IN THIS

PARAGRAPH.
20. “QUALIFIED ELECTOR" MEANS A PERSON WHO IS A QUALIFIED ELECTOR

PURSUANT TO TITLE 16 AND WHO RESIDES WITHIN THE BOUNDARIES OF A DISTRICT.

21. "TREASURER" MEANS THE PERSON APPOINTED BY THE BOARD TO BE THE
DISTRICT TREASURER.

48-7002. orm dis t: contents o etition:

fili : : n_of liabilit

A. AN INFRASTRUCTURE FINANCE DISTRICT MAY BE FORMED PURSUANT TO
THIS CHAPTER BY PETITION OF ALL INDIVIDUALS AND ENTITIES HAVING FEE-TITLE
OWNERSHIP OF ALL REAL PROPERTY IN THE PROPOSED DISTRICT. THE PETITION
SHALL BE SUBMITTED TO THE AUTHORITY. THE DISTRICT MAY INCLUDE CONTIGUOUS
OR NONCONTIGUOUS PROPERTY.

B. THE PETITION SHALL CONTAIN ALL OF THE FOLLOWING:

1. A METES AND BOUNDS DESCRIPTION AND A MAP OF THE DISTRICT

BOUNDARIES.

2. THE PROPOSED NAME OF THE DISTRICT.

3. A PRELIMINARY FINANCING PLAN THAT INCLUDES THE SOURCES AND USES
OF MONIES FOR THE PUBLIC INFRASTRUCTURE AND ECONOMIC FEASIBILITY
INFORMATION INDICATING THAT THE LAND VALUES, EXISTING IMPROVEMENTS AND
PUBLIC INFRASTRUCTURE TO BE FINANCED WITHIN THE DISTRICT WILL BE
SUFFICIENT TO SUPPORT A TAX RATE THAT DOES NOT EXCEED THE MAXIMUM
AUTHORIZED TAX RATE FOR PROPOSED INDEBTEDNESS OF THE DISTRICT.

4. A GENERAL PLAN SETTING OUT A GENERAL DESCRIPTION OF THE PUBLIC
INFRASTRUCTURE FOR WHICH THE DISTRICT IS PROPOSED TO BE FORMED AND FOR
WHICH BONDS MAY BE ISSUED, THE GENERAL AREAS TO BE IMPROVED AND THE
ESTIMATED COSTS OF CONSTRUCTING OR ACQUIRING THE PUBLIC INFRASTRUCTURE TO
BE FINANCED, CONSTRUCTED OR ACQUIRED BY THE DISTRICT.

5. A GENERAL DESCRIPTION OF THE ESTIMATED COST OF ENGINEERING
SERVICES, LEGAL SERVICES, ADMINISTRATIVE SERVICES AND OTHER MAJOR EXPENSES
THAT ARE RELATED TO ORGANIZING AND INITIALLY OPERATING THE DISTRICT.

6. AN ENGINEER’S ESTIMATE OF THE COSTS OF THE PUBLIC INFRASTRUCTURE
FOR WHICH THE DISTRICT IS PROPOSED TO BE FORMED AND FOR WHICH BONDS MAY BE
ISSUED.

7. THE MAXIMUM AUTHORIZED TAX RATE, THE MAXIMUM AGGREGATE PRINCIPAL
AMOUNT OF GENERAL OBLIGATION BONDS AND THE MAXIMUM AGGREGATE ASSESSMENT
AMOUNT, IF ANY.

8. THE MAXIMUM 0/M TAX RATE, IF ANY.

9. AN APPRAISAL INDICATING THE AGGREGATE AS-IS MARKET VALUE OF REAL
PROPERTY IN THE DISTRICT AND PROJECTIONS AS TO THE LIMITED PROPERTY VALUE
AND MARKET VALUE OF REAL PROPERTY IN THE DISTRICT FOR EACH YEAR IN WHICH
GENERAL OBLIGATION BONDS AND ASSESSMENT BONDS ARE PROPOSED TO BE

OUTSTANDING.

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10. A STATEMENT OF ALL HOLDERS OF FEE TITLE TO ALL REAL PROPERTY IN
THE DISTRICT, THE INITIAL BOARD MEMBERS, THE INITIAL TERMS OF OFFICE OF
THE INITIAL BOARD MEMBERS AND THE DISTRICT CLERK AND THE DISTRICT
TREASURER.

11. A STATEMENT OF BOND COUNSEL INDICATING THAT THE PETITION
COMPLIES WITH THE PROCEDURAL REQUIREMENTS OF THIS SECTION.

12. A COPY OF ANY DEVELOPMENT AGREEMENT OR OTHER AGREEMENT WITH THE
MUNICIPALITY OR THE COUNTY, IF ANY, THAT RELATES TO THE LAND INCLUDED
WITHIN THE BOUNDARIES OF THE PROPOSED DISTRICT OR TO THE PUBLIC
INFRASTRUCTURE TO BE FINANCED BY THE PROPOSED DISTRICT.

13. A WRITTEN STATEMENT, SIGNED BY AN ENGINEER, CERTIFYING THAT THE
ESTIMATED COST OF THE PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED IN THE
PROPOSED DISTRICT EXCEEDS $5,000,000.

14. A FORMATION ORDER IN SUBSTANTIALLY FINAL AND RECORDABLE FORM.

15. A DESCRIPTION OF THE PETITIONER, INCLUDING:

(a) THE ORGANIZATIONAL STRUCTURE OF EACH ENTITY OR INDIVIDUAL THAT
HOLD FEE TITLE TO THE LAND AREA IN THE PROPOSED DISTRICT, INCLUDING THE
NAMES OF ALL OFFICERS AND DIRECTORS OF EACH ENTITY THAT HOLD FEE TITLE TO
THE LAND AREA IN THE PROPOSED DISTRICT.

(b) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE PRIMARY CONTACT
FOR THE PETITIONER.

(c) THE NAMES OF ANY LEGAL REPRESENTATIVES, ENGINEERS, ARCHITECTS,
FINANCIAL CONSULTANTS OR OTHER CONSULTANTS THAT ARE SIGNIFICANTLY INVOLVED
IN THE PETITION.

(d) A GENERAL DESCRIPTION OF THE PETITIONER’S EXPERIENCE WITH
SIMILAR TYPES OF DEVELOPMENTS THAT THE DISTRICT WILL SUPPORT.

C. ANY FINANCIAL BURDEN OF A DISTRICT IS BORNE SOLELY BY THE
DISTRICT AND IS NOT BORNE BY THE AUTHORITY, THIS STATE OR ANY
MUNICIPALITY, COUNTY OR OTHER POLITICAL SUBDIVISION OF THIS STATE. ANY
LIABILITY, JUDGMENT OR CLAIM AGAINST A DISTRICT IS THE SOLE RESPONSIBILITY
OF THE DISTRICT AND DOES NOT CONSTITUTE A LIABILITY, JUDGMENT OR CLAIM
AGAINST THE AUTHORITY, THIS STATE OR ANY MUNICIPALITY, COUNTY OR OTHER
POLITICAL SUBDIVISION OF THIS STATE.

D. THE PETITION SHALL BE FILED WITH THE AUTHORITY. THE PETITIONER
SHALL PROVIDE WRITTEN NOTICE OF THE FILING OF THE PETITION TO EACH
AFFECTED MUNICIPALITY AND, IF THE DISTRICT IS LOCATED IN AN UNINCORPORATED
AREA, TO THE COUNTY. THE NOTICE SHALL STATE THAT THE DISTRICT WILL BE
FORMED NOT LESS THAN THIRTY DAYS AND NOT MORE THAN SIXTY DAYS AFTER
SUBMITTING THE PETITION, SUBJECT TO APPROVAL BY THE AUTHORITY.

E. IF THE AUTHORITY DETERMINES THAT THE PETITION IS INCOMPLETE OR
DEFICIENT, THE AUTHORITY SHALL NOTIFY THE PETITIONER AND THE PETITIONER
SHALL HAVE A PERIOD OF SIXTY DAYS AFTER NOTICE OF THE DEFICIENCIES TO
CORRECT THE DEFICIENCIES. IF THE DEFICIENCIES ARE NOT CORRECTED WITHIN
SIXTY DAYS AFTER NOTICE, THE AUTHORITY MAY REJECT THE PETITION.

48-7003. Authority; formation order; Limitations on
rejection: fees

A. A DISTRICT SHALL BE FORMED ONLY ON THE ISSUANCE OF A FORMATION
ORDER BY THE AUTHORITY. THE AUTHORITY SHALL REVIEW THE PETITION SUBMITTED

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PURSUANT TO SECTION 48-7002 AND. ACCOMPANYING MATERIALS TO EVALUATE, SOLELY
ON THE BASIS OF THE INFORMATION INCLUDED WITH THE PETITION, THE FOLLOWING:
FINANCIAL FEASIBILITY OF THE DISTRICT.

ENGINEERING SUFFICIENCY OF THE PROPOSED PUBLIC INFRASTRUCTURE.
FINANCIAL STRUCTURE OF THE PROPOSED DISTRICT AND FINANCINGS.
DEBT CAPACITY AND MARKET-VALUE COMPLIANCE UNDER THIS CHAPTER.

5. WHETHER THE PROPOSED DISTRICT IS DETERMINED TO BE IN THE BEST
INTEREST OF THIS STATE.

6. WHETHER FORMATION OF THE DISTRICT WILL VIOLATE ANY APPLICABLE
GENERAL PLAN OR COMPREHENSIVE PLAN OR ANY EXISTING DEVELOPMENT AGREEMENT
RELATING TO LAND WITHIN THE DISTRICT.

B. THE AUTHORITY SHALL APPROVE FORMATION OF THE DISTRICT AND ISSUE
THE FORMATION ORDER FOR THE DISTRICT IF THE AUTHORITY FINDS THAT ALL OF
THE FOLLOWING OCCURRED:

1. ALL REQUIRED DOCUMENTS HAVE BEEN SUBMITTED IN THE FORM
PRESCRIBED BY THIS CHAPTER.

2. THE PROPOSED DISTRICT MEETS ALL STATUTORY ELIGIBILITY AND
BOUNDARY REQUIREMENTS THAT ARE ESTABLISHED UNDER THIS CHAPTER.

3. THE NOTICE TO EACH AFFECTED MUNICIPALITY AND, IF THE DISTRICT IS
LOCATED IN AN UNINCORPORATED AREA, TO THE COUNTY HAS BEEN PROVIDED AS
PRESCRIBED BY SECTION 48-7002, SUBSECTION D.

4. THE AUTHORITY HAS RECEIVED ALL REQUIRED ENGINEERING AND ECONOMIC
FEASIBILITY FINDINGS THAT ARE REQUIRED BY THE PETITION AND, SOLELY ON THE
BASIS OF THOSE FINDINGS, THE AUTHORITY DETERMINED THAT THE DISTRICT HAS,
OR WILL HAVE, THE FINANCIAL ABILITY TO DISCHARGE THE PROPOSED INDEBTEDNESS
ON A REASONABLE BASIS.

C. IF THE REQUIREMENTS OF SUBSECTION B OF THIS SECTION ARE
SATISFIED, THE AUTHORITY SHALL ISSUE A FORMATION ORDER WITHIN SIXTY DAYS
AFTER THE SUBMISSION OF A COMPLETE PETITION. THE FORMATION ORDER SHALL
INCLUDE ALL OF THE FOLLOWING:

1. THE NAME OF THE DISTRICT.

2. A METES AND BOUNDS DESCRIPTION AND A MAP OF THE DISTRICT'S

BOUNDARIES.
3. A GENERAL DESCRIPTION OF THE PUBLIC INFRASTRUCTURE THAT THE

DISTRICT MAY FINANCE.

4. A STATEMENT THAT A GENERAL PLAN AND A PRELIMINARY FINANCING PLAN
FOR THE DISTRICT ARE ON FILE WITH THE CLERK.

5. THE TYPES OF BONDS THAT THE DISTRICT IS AUTHORIZED TO ISSUE.

6. THE MAXIMUM AUTHORIZED TAX RATE, THE MAXIMUM AUTHORIZED
AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, THE MAXIMUM
AGGREGATE ASSESSMENT AMOUNT AND THE MAXIMUM O/M TAX RATE.

7. THE NAMES AND INITIAL TERMS OF THE INITIAL BOARD OF DIRECTORS
AND THAT THE DISTRICT WILL BE GOVERNED BY DIRECTORS WHO ARE CHOSEN
PURSUANT TO THIS CHAPTER.

8. A STATEMENT THAT:
(a) THE FORMATION OF THE DISTRICT MAY RESULT IN THE LEVY OF AD

VALOREM TAXES OR ASSESSMENTS TO PAY THE COSTS OF AUTHORIZED PUBLIC
INFRASTRUCTURE THAT IS CONSTRUCTED BY THE DISTRICT AND FOR OPERATING AND
MAINTAINING THE AUTHORIZED PUBLIC INFRASTRUCTURE.

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(b) ANY AD VALOREM TAX THAT IS LEVIED FOR THE PAYMENT OF GENERAL
OBLIGATION BONDS MAY NOT BE LEVIED AT A RATE THAT EXCEEDS THE MAXIMUM
AUTHORIZED TAX RATE THAT IS APPROVED AT THE ELECTION THAT AUTHORIZED THE
LEVY AND THE ISSUANCE OF THE BONDS.

(c) ANY BONDS OR OTHER OBLIGATIONS OF THE DISTRICT WILL NOT BE A
DEBT, LEGAL OR MORAL, OF THIS STATE OR ANY MUNICIPALITY OR ANY COUNTY OF
THIS STATE, ARE NOT OBLIGATIONS OF THIS STATE OR ANY MUNICIPALITY OR ANY
COUNTY OF THIS STATE AND ARE OBLIGATIONS OF THE DISTRICT AND ARE PAYABLE
ONLY FROM THE SOURCES PLEDGED FOR THEIR PAYMENT.

D. THE AUTHORITY SHALL APPROVE FORMATION OF THE DISTRICT AND ISSUE
THE FORMATION ORDER IF THE AUTHORITY DETERMINES THAT THE PETITION AND
ACCOMPANYING MATERIALS MEET THE STATUTORY REQUIREMENTS OF THIS CHAPTER.
THE AUTHORITY'S REVIEW IS LIMITED TO CONFIRMING THAT THE STATUTORY
REQUIREMENTS OF THIS CHAPTER HAVE BEEN SATISFIED AND THE AUTHORITY MAY
REJECT A PETITION ONLY IF:

1. THE PETITION IS INCOMPLETE.

2. THE FEASIBILITY INFORMATION IS INCOMPLETE OR INSUFFICIENT TO
SUPPORT A FINDING THAT THE DISTRICT HAS OR WILL HAVE THE FINANCIAL ABILITY
TO DISCHARGE THE PROPOSED INDEBTEDNESS ON A REASONABLE BASIS.

3. THE PROPOSED DISTRICT VIOLATES A STATUTORY PROHIBITION OR
BOUNDARY RULE UNDER THIS CHAPTER, AND IN EACH CASE THE PETITIONER FAILED
TO CORRECT THE DEFICIENCIES WITHIN SIXTY DAYS AFTER NOTICE.

E. IF THE AUTHORITY DOES NOT ISSUE THE FORMATION ORDER WITHIN SIXTY
DAYS AFTER SUBMISSION OF A COMPLETE PETITION, THE AUTHORITY SHALL PROVIDE
A WRITTEN BASIS FOR NOT ADOPTING THE FORMATION ORDER AND SHALL IDENTIFY
THE SPECIFIC CHANGES THAT ARE NEEDED FOR THE PETITION TO BE APPROVED AND
FOR THE DISTRICT TO BE FORMED. THE PETITION MAY BE REVISED AND RESUBMITTED
AT ANY TIME.

F. ON ISSUANCE OF THE FORMATION ORDER BY THE AUTHORITY, THE
DISTRICT SHALL CAUSE THE FORMATION ORDER TO BE RECORDED IN THE REAL
PROPERTY RECORDS OF THE COUNTY IN WHICH THE DISTRICT IS LOCATED AND SHALL
CAUSE A COPY OF THE FORMATION ORDER TO BE DELIVERED TO THE COUNTY ASSESSOR
AND THE BOARD OF SUPERVISORS OF THE COUNTY IN WHICH THE DISTRICT IS
LOCATED, TO ANY MUNICIPALITY IN WHICH THE DISTRICT IS LOCATED AND TO THE
DEPARTMENT OF REVENUE. ON RECORDING THE FORMATION ORDER, THE DISTRICT IS
ESTABLISHED AS A POLITICAL SUBDIVISION OF THIS STATE.

G. BEFORE RECORDING A FORMATION ORDER UNDER THIS SECTION, A GENERAL
PLAN FOR THE DISTRICT SHALL BE FILED WITH THE CLERK THAT SETS OUT A
GENERAL DESCRIPTION OF THE IMPROVEMENTS FOR WHICH THE DISTRICT IS PROPOSED
TO BE FORMED AND THE AREAS TO BE IMPROVED.

H. ON FORMATION, THE DISTRICT IS A SPECIAL PURPOSE DISTRICT FOR THE
PURPOSES OF ARTICLE IX, SECTION 19, CONSTITUTION OF ARIZONA, A TAX LEVYING
PUBLIC IMPROVEMENT DISTRICT FOR THE PURPOSES OF ARTICLE XIII, SECTION 7,
CONSTITUTION OF ARIZONA, AND A MUNICIPAL CORPORATION FOR ALL PURPOSES OF
TITLE 35, CHAPTER 3, ARTICLES 3, 3.1, 3.2, 4 AND 5. A DISTRICT THAT
DISTRIBUTES OR SELLS GROUNDWATER IS A PRIVATE WATER COMPANY ONLY FOR THE
PURPOSES OF TITLE 45, CHAPTERS 2 AND 3.1. EXCEPT AS OTHERWISE PROVIDED IN
THIS SECTION, A DISTRICT IS CONSIDERED TO BE A MUNICIPAL CORPORATION AND
POLITICAL SUBDIVISION OF THIS STATE, SEPARATE AND APART FROM ANY

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WOON ATP WNH EH

PHFRPHFA PPAR AR WWWWWWWWWWNNYDYNDYNNYNYNDP
mR
CONAMNERWNHEDGSCBHBUAGAONEPOCONHRAARONDEOOSCONAAARONED

MUNICIPALITY OR COUNTY IN WHICH THE DISTRICT IS LOCATED. NOTWITHSTANDING
ANY OTHER LAW, A DISTRICT FORMED PURSUANT TO THIS CHAPTER DOES NOT HAVE
THE POWER OF EMINENT DOMAIN AND DOES NOT HAVE THE POWER TO ENACT ZONING
ORDINANCES.

I. ON FORMATION OF THE DISTRICT, THE BOARD SHALL MAKE A GOOD FAITH
EFFORT TO IMPLEMENT THE GENERAL PLAN FOR THE PUBLIC INFRASTRUCTURE OF THE
DISTRICT.

J. FEES AND OTHER CHARGES ASSESSED BY THE AUTHORITY IN CONNECTION
WITH THE SUBMISSION AND CONSIDERATION OF A PETITION TO FORM A DISTRICT MAY
NOT EXCEED $15,000. IF A PETITION IS DENIED BY THE AUTHORITY, IT MAY NOT
ASSESS A FEE OR OTHER CHARGE IN CONNECTION WITH SUBMITTING AND CONSIDERING
A SUBSTANTIALLY SIMILAR PETITION THAT IS SUBMITTED WITHIN ONE YEAR AFTER
THE DENIAL. FEES AND OTHER CHARGES ASSESSED BY A DISTRICT IN CONNECTION
WITH ADMINISTERING THE DISTRICT, INCLUDING THE ISSUANCE AND SALE OF BONDS,
MAY NOT EXCEED THE ACTUAL EXPENSE INCURRED BY THE DISTRICT FOR STAFF AND
CONSULTANT SERVICES AND SUPPORT FACILITIES SUPPLIED BY THE DISTRICT OR THE
FINANCIAL, LEGAL AND ADMINISTRATIVE COSTS OF THE DISTRICT THAT ARE NOT
REIMBURSED FROM PROCEEDS OF THE BONDS OR OTHER DISTRICT REVENUE.

48-7004. District governance; board of directors; elections;

powers and duties

A. ON ISSUANCE OF THE FORMATION ORDER, A DISTRICT SHALL BE GOVERNED
BY A BOARD OF DIRECTORS THAT CONSISTS OF THREE DIRECTORS. THE INITIAL
DIRECTORS SHALL BE APPOINTED AS SET FORTH IN THE PETITION AND FORMATION
ORDER.

B. EACH DIRECTOR SHALL EITHER HOLD A FEE TITLE TO REAL PROPERTY
WITHIN THE DISTRICT OR BE AN INDIVIDUAL WHO IS DESIGNATED OR APPOINTED BY
A HOLDER OF A FEE TITLE TO REAL PROPERTY WITHIN THE DISTRICT.

C. THE TERM OF THE INITIAL DIRECTORS BEGINS ON THE DATE OF THE
FORMATION ORDER. OF THE INITIAL DIRECTORS, ONE DIRECTOR SHALL SERVE A
TERM OF THREE YEARS, ONE DIRECTOR SHALL SERVE A TERM OF FOUR YEARS AND ONE
DIRECTOR SHALL SERVE A TERM OF FIVE YEARS, AS SPECIFIED IN THE PETITION.
THEREAFTER, EACH SUBSEQUENTLY ELECTED DIRECTOR SHALL SERVE A TERM OF THREE
YEARS. THESE SUBSEQUENTLY ELECTED DIRECTORS SHALL BE AN OWNER OF REAL
PROPERTY IN THE DISTRICT WHO SHALL BE ELECTED AT LARGE BY THE OWNERS OF
REAL PROPERTY IN THE DISTRICT, AS SHOWN ON THE PROPERTY TAX ASSESSMENT
ROLL, WHO ARE QUALIFIED TO VOTE PURSUANT TO SECTION 48-7041. THE BOARD
SHALL DEVELOP BYLAWS FOR THE OPERATION OF THE DISTRICT.

D. ONLY THE OWNERS THAT HOLD FEE TITLE TO REAL PROPERTY IN THE
DISTRICT AND THEIR RESPECTIVE DESIGNEES AND APPOINTEES ARE ELIGIBLE TO
VOTE IN:

1. AN ELECTION REGARDING AN AD VALOREM TAX OR AN ASSESSMENT TO BE
LEVIED AGAINST THE REAL PROPERTY IN THE DISTRICT.

2. AN ELECTION FOR THE BOARD OF THE DISTRICT.

3. AN ELECTION FOR DISSOLUTION OF THE DISTRICT.

E. CORPORATIONS, PARTNERSHIPS AND OTHER BUSINESS ENTITIES ARE
ELIGIBLE TO VOTE AS PROPERTY OWNERS, BUT ONLY ONE VOTE MAY BE CAST FOR
EACH ONE-SEVENTH OF AN ACRE OF REAL PROPERTY IN THE DISTRICT, EXCEPT THAT
ANY FRACTION OF OWNERSHIP OF REAL PROPERTY THAT IS LESS THAN ONE-SEVENTH
OF AN ACRE ENTITLES THE OWNER TO CAST ONE VOTE. A MAJORITY OF THE ACREAGE,

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AS REPRESENTED BY THE VOTES CAST AT AN ELECTION THAT IS CONDUCTED SOLELY
UNDER THIS ACREAGE SYSTEM, DETERMINES THE RESULT OF THE ELECTION.

F. AN ELECTION CONDUCTED UNDER THIS SECTION SHALL BE HELD AS A
SPECIAL ELECTION OF THE DISTRICT AND SHALL BE NOTICED, CALLED, CONDUCTED
AND CANVASSED BY THE BOARD IN THE MANNER PRESCRIBED BY THIS CHAPTER. THE
BOARD MAY ENTER INTO INTERGOVERNMENTAL AGREEMENTS WITH THE COUNTY, A
MUNICIPALITY OR ANOTHER PUBLIC ENTITY FOR ELECTION ADMINISTRATION,
INCLUDING REIMBURSEMENT OF REASONABLE COSTS OF DISTRICT ELECTIONS.

G. THE BOARD SHALL:

1. ADOPT AND AMEND THE FINANCING PLAN FOR THE DISTRICT.

2. AUTHORIZE AND APPROVE THE ISSUANCE OF BONDS OF THE DISTRICT AS
PROVIDED BY THIS CHAPTER.

3. LEVY AD VALOREM TAXES AND ASSESSMENTS, SUBJECT TO THE
LIMITATIONS AND ELECTION REQUIREMENTS OF THIS CHAPTER, INCLUDING THE
MAXIMUM AUTHORIZED TAX RATE.

4. MANAGE AND ADMINISTER THE AFFAIRS OF THE DISTRICT, INCLUDING
OPERATING, MAINTAINING AND REPAIRING PUBLIC INFRASTRUCTURE THAT IS OWNED
OR OPERATED BY THE DISTRICT.

5. ADOPT ANNUAL BUDGETS, STATEMENTS AND ESTIMATES FOR THE DISTRICT.

6. ADMINISTER DISTRICT ELECTIONS OR ENTER INTO INTERGOVERNMENTAL
AGREEMENTS WITH THE COUNTY AND OTHER QUALIFIED PUBLIC ENTITIES TO
ADMINISTER DISTRICT ELECTIONS.

7. PERFORM ALL OTHER ACTS THAT ARE NECESSARY OR CONVENIENT TO CARRY
OUT THE PURPOSES OF THIS CHAPTER.

H. IF A VACANCY OCCURS ON THE BOARD BECAUSE OF A DEATH, A
RESIGNATION OR AN INABILITY OF THE DIRECTOR TO DISCHARGE THE DUTIES OF
DIRECTOR, THE VACANCY SHALL BE FILLED BY APPOINTMENT MADE BY THE
AUTHORITY. A DIRECTOR APPOINTED BY THE AUTHORITY SHALL HOLD OFFICE FOR
THE REMAINDER OF THE UNEXPIRED TERM UNTIL THE DIRECTOR'S SUCCESSOR IS
ELECTED AS PROVIDED BY THIS ARTICLE. A DIRECTOR SHALL NOT BE AN ELECTED
OFFICIAL OF A MUNICIPALITY IN WHICH THE DISTRICT IS LOCATED OR AN INDIAN
TRIBE OR COMMUNITY OR AN EMPLOYEE OR AGENT OF A MUNICIPALITY OR INDIAN
TRIBE OR COMMUNITY BUT MAY BE A DIRECTOR OF MORE THAN ONE DISTRICT.

I. THE MEMBERS OF THE BOARD ARE NOT ELIGIBLE TO RECEIVE
COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE BOARD.

48-7005. Records; open meetings

A. A DISTRICT SHALL KEEP THE FOLLOWING RECORDS, WHICH SHALL BE OPEN
TO PUBLIC INSPECTION:

1. MINUTES OF ALL BOARD MEETINGS.

ALL RESOLUTIONS.

ACCOUNTS SHOWING ALL MONIES RECEIVED AND DISBURSED.
THE ANNUAL BUDGET.

ALL OTHER RECORDS REQUIRED TO BE MAINTAINED BY LAW.

B. THE BOARD SHALL COMPLY WITH THE REQUIREMENTS OF TITLE 38,
CHAPTER 3, ARTICLE 3.1 AS A SEPARATE POLITICAL SUBDIVISION.

48-7006. District powers

A. IN ADDITION TO THE POWERS OTHERWISE GRANTED TO A _ DISTRICT
PURSUANT TO THIS CHAPTER, A DISTRICT, TO FURTHER IMPLEMENT THE GENERAL

PLAN, MAY:

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1. ENTER INTO CONTRACTS AND EXPEND MONIES FOR ANY PUBLIC
INFRASTRUCTURE PURPOSE WITH RESPECT TO THE DISTRICT, INCLUDING IN
CONNECTION WITH THE ACQUISITION, CONSTRUCTION OR INSTALLATION OF PUBLIC
INFRASTRUCTURE.

2. ENTER INTO INTERGOVERNMENTAL AGREEMENTS WITH THIS STATE, A
COUNTY, A MUNICIPALITY OR ANY OTHER PUBLIC AGENCY THAT IS AUTHORIZED BY
LAW TO ENTER INTO INTERGOVERNMENTAL AGREEMENTS FOR THE PLANNING, DESIGN,
INSPECTION, OWNERSHIP, CONTROL, MAINTENANCE, OPERATION OR REPAIR OF PUBLIC
INFRASTRUCTURE.

3. ENTER INTO INTERGOVERNMENTAL AGREEMENTS WITH THE COUNTY, A
MUNICIPALITY OR ANOTHER QUALIFIED PUBLIC ENTITY FOR THE ADMINISTRATION OF
DISTRICT ELECTIONS, INCLUDING AGREEMENTS TO REIMBURSE THE PUBLIC ENTITY
FOR THE REASONABLE COSTS OF DISTRICT ELECTIONS.

4. SELL, LEASE OR OTHERWISE DISPOSE OF DISTRICT PROPERTY IF THE
SALE, LEASE OR CONVEYANCE IS NOT A VIOLATION OF THE TERMS OF ANY CONTRACT,
BOND RESOLUTION OR TRUST INDENTURE OF THE DISTRICT.

5. OPERATE, MAINTAIN AND REPAIR PUBLIC INFRASTRUCTURE THAT IS OWNED
OR OPERATED BY THE DISTRICT.

6. ESTABLISH, CHARGE AND COLLECT USER FEES, RATES OR OTHER CHARGES
FOR THE USE OF ANY PUBLIC INFRASTRUCTURE OR SERVICE OF THE DISTRICT.

7. EMPLOY OR CONTRACT FOR STAFF, COUNSEL AND CONSULTANTS, INCLUDING
ENGINEERS, ATTORNEYS, ACCOUNTANTS, FINANCIAL ADVISORS, UNDERWRITERS,
ADMINISTRATORS AND ELECTION OFFICIALS, TO ASSIST WITH DISTRICT AND BOARD
ADMINISTRATION, FINANCING AND ELECTION MATTERS.

8. INCUR AND REPAY LOANS FOR ANY PUBLIC INFRASTRUCTURE PURPOSE.

9. ENTER INTO AGREEMENTS WITH LANDOWNERS AND WITH A MUNICIPALITY OR
COUNTY FOR THE COLLECTION OF FEES AND CHARGES FROM LANDOWNERS FOR PUBLIC
INFRASTRUCTURE PURPOSES, FOR THE ADVANCE OF MONIES BY LANDOWNERS FOR
PUBLIC INFRASTRUCTURE PURPOSES OR FOR THE GRANTING OF REAL PROPERTY OR
INTERESTS IN REAL PROPERTY BY A LANDOWNER FOR PUBLIC INFRASTRUCTURE
PURPOSES.

10. BY RESOLUTION, LEVY AND ASSESS THE COSTS OF ANY PUBLIC
INFRASTRUCTURE PURPOSE ON ANY LAND THAT IS BENEFITED IN THE DISTRICT,
SUBJECT TO THE LIMITATIONS AND ELECTION REQUIREMENTS OF THIS CHAPTER,
INCLUDING THE MAXIMUM AUTHORIZED TAX RATE.

11. PAY THE FINANCIAL, LEGAL AND ADMINISTRATIVE COSTS OF THE
DISTRICT.

12. ENTER INTO CONTRACTS, AGREEMENTS AND TRUST INDENTURES TO OBTAIN
CREDIT ENHANCEMENT OR LIQUIDITY SUPPORT FOR ITS BONDS AND TO PROVIDE FOR
THE ISSUANCE, REGISTRATION, TRANSFER AND PAYMENT OF ITS BONDS AND FOR THE
DISBURSEMENT AND INVESTMENT OF BOND PROCEEDS.

13. ENTER INTO AGREEMENTS WITH PERSONS OUTSIDE OF THE DISTRICT TO
PROVIDE SERVICES TO PERSONS AND PROPERTY OUTSIDE OF THE DISTRICT AND TO
RECEIVE COMPENSATION FOR THOSE SERVICES.

14. USE PUBLIC EASEMENTS AND RIGHTS-OF-WAY IN OR ACROSS PUBLIC
PROPERTY, ROADWAYS, HIGHWAYS, STREETS OR OTHER THOROUGHFARES AND OTHER
PUBLIC EASEMENTS AND RIGHTS-OF-WAY, WHETHER IN OR OUT OF THE GEOGRAPHICAL
LIMITS OF THE DISTRICT, A MUNICIPALITY OR A COUNTY, SUBJECT TO APPLICABLE

LAW AND THE RIGHTS OF THE PUBLIC.
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B. IN CONNECTION WITH ANY POWER AUTHORIZED BY STATUTE, THE DISTRICT
MAY:

1. CONTRACT.

2. ENTER INTO INTERGOVERNMENTAL AGREEMENTS PURSUANT TO TITLE 11,
CHAPTER 7, ARTICLE 3.

3. ADOPT AND CHANGE A SEAL.

4. SUE AND BE SUED.

5. ENTER INTO DEVELOPMENT AGREEMENTS AS DEFINED IN’ SECTION
9-500.05.

C. A DISTRICT IS NOT EMPOWERED TO EXERCISE LAND USE OR ZONING
AUTHORITY AND MAY NOT ADOPT, AMEND OR ENFORCE ZONING ORDINANCES OR SIMILAR
LAND USE REGULATIONS.

D. PUBLIC INFRASTRUCTURE OTHER THAN PERSONALTY MAY BE LOCATED ONLY
IN OR ON LANDS OWNED BY THIS STATE, A COUNTY, A MUNICIPALITY OR THE
DISTRICT OR DEDICATED OR OTHERWISE DESIGNATED AS PUBLIC ROADWAYS,
HIGHWAYS, STREETS, THOROUGHFARES, EASEMENTS OR RIGHTS-OF-WAY, WHETHER IN
OR OUT OF THE DISTRICT OR A MUNICIPALITY. PERSONALTY MAY BE USED ONLY FOR
PURPOSES AUTHORIZED BY THE BOARD.

E. AN AGREEMENT PURSUANT TO SUBSECTION A, PARAGRAPH 9 OF THIS
SECTION 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. A PERSON DOES NOT HAVE AUTHORITY TO
COMPEL THE ISSUANCE OR SALE OF THE BONDS OF THE DISTRICT OR THE EXERCISE
OF ANY TAXING POWER OF THE DISTRICT TO MAKE REPAYMENT UNDER ANY AGREEMENT.

48-7007. District finances: revenue

THE PROJECTS TO BE CONSTRUCTED OR ACQUIRED AS SHOWN IN THE GENERAL
PLAN MAY BE FINANCED FROM THE FOLLOWING SOURCES OF REVENUE:

1. PROCEEDS RECEIVED FROM THE SALE OF BONDS OF THE DISTRICT.

2. MONIES OF A MUNICIPALITY OR INDIAN TRIBE OR COMMUNITY THAT ARE
CONTRIBUTED TO THE DISTRICT. ;

3. ASSESSMENTS.

AD VALOREM TAXES.

PRIVATE CONTRIBUTIONS.

USER, LANDOWNER AND OTHER FEES AND CHARGES.
PROCEEDS OF LOANS OR ADVANCES.

8. ANY OTHER MONIES AVAILABLE TO THE DISTRICT BY LAW.

48-7008. Project approval; hearing; notice; fees

A. BEFORE CONSTRUCTING OR ACQUIRING ANY PUBLIC INFRASTRUCTURE, THE
BOARD SHALL CAUSE A STUDY OF THE FEASIBILITY AND BENEFITS OF THE PROJECT
THAT SHALL BE PREPARED BY ENGINEERS AND OTHER QUALIFIED PERSONS AND THAT
SHALL INCLUDE A DESCRIPTION OF THE PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED
OR ACQUIRED AND ALL OTHER INFORMATION USEFUL TO UNDERSTAND THE PROJECT, A
MAP SHOWING, IN GENERAL, THE LOCATION OF THE PROJECT, AN ESTIMATE OF THE
COST TO CONSTRUCT, ACQUIRE, OPERATE AND MAINTAIN THE PROJECT, AN ESTIMATED
SCHEDULE FOR COMPLETION OF THE PROJECT, A MAP OR DESCRIPTION OF THE AREA
TO BE BENEFITED BY THE PROJECT AND THE FINANCING PLAN FOR THE PROJECT.
WITHIN SIXTY DAYS AFTER RECEIVING THE REPORT, THE BOARD SHALL HOLD A
PUBLIC HEARING ON THE REPORT AND PROVIDE NOTICE OF THE HEARING BY

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CONAN WNHERFOHWODANAATAHREBDNYNHOWw ONO fS One S& o Ww ans @ he

PUBLICATION NOT LESS THAN TEN DAYS IN ADVANCE IN THE OFFICIAL NEWSPAPER OF
THE MUNICIPALITY IN WHICH THE DISTRICT IS LOCATED OR, IF NONE IN THE
MUNICIPALITY, A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY AND BY MAIL
TO THE GOVERNING BODY OF THE MUNICIPALITY. WITHIN SIXTY DAYS AFTER THE
HEARING, THE BOARD MAY REJECT, AMEND OR APPROVE THE REPORT. IF THE REPORT
IS AMENDED SUBSTANTIALLY, A NEW HEARING SHALL BE HELD WITHIN SIXTY DAYS
AFTER THE DATE THE AMENDED REPORT IS RECEIVED AND BEFORE APPROVAL. IF THE
REPORT IS APPROVED, THE BOARD SHALL ADOPT A RESOLUTION THAT IDENTIFIES THE
PUBLIC INFRASTRUCTURE OF THE PROJECT, THE AREAS BENEFITED, THE EXPECTED
METHOD OF FINANCING, INCLUDING THE NATURE AND TIMING OF THE ISSUANCE OF
BONDS, IF ANY, AND AN APPROPRIATE SYSTEM OF PROVIDING REVENUES TO OPERATE
AND MAINTAIN THE PROJECT. THE BOARD SHALL EXECUTE THE PROVISIONS OF THE
REPORT WITHIN THE TIME FRAMES IDENTIFIED IN THE APPROVED REPORT.

B. BEFORE CONSTRUCTING OR ACQUIRING ANY PUBLIC INFRASTRUCTURE AND
BEFORE THE BOARD HAS HELD THE PUBLIC HEARING PRESCRIBED IN SUBSECTION A OF
THIS SECTION, THE BOARD SHALL CAUSE THE STUDY OF THE FEASIBILITY AND
BENEFITS OF THE PROJECT PRESCRIBED IN SUBSECTION A OF THIS SECTION TO BE
PROVIDED TO THE AUTHORITY. IN ADDITION TO THE STUDY OF THE FEASIBILITY
AND BENEFITS OF THE PROJECT PRESCRIBED IN SUBSECTION A OF THIS SECTION,
THE BOARD SHALL CAUSE THE FOLLOWING INFORMATION TO BE PROVIDED TO THE
AUTHORITY:

1. THE CURRENT MARKET VALUE AND PROJECTED MARKET VALUE ON
COMPLETION OF THE PUBLIC INFRASTRUCTURE TO BE FINANCED.

2. THE PROPOSED MAXIMUM PRINCIPAL AMOUNT OF BONDS TO BE ISSUED, THE
MAXIMUM INTEREST RATE AND A PRELIMINARY DEBT SERVICE SCHEDULE FOR THE
BONDS.

3. IF THE BONDS ARE GENERAL OBLIGATION BONDS, A PROJECTION OF THE
AD VALOREM TAX RATE THAT IS REQUIRED TO SUPPORT DEBT SERVICE ON THE BONDS,
WHICH PROJECTED RATE DOES NOT EXCEED THE MAXIMUM AUTHORIZED TAX RATE.

4. IF THE BONDS ARE ASSESSMENT BONDS, THE MAXIMUM AGGREGATE
ASSESSMENT AND THE MAXIMUM PER-LOT ASSESSMENT TO BE LEVIED IN CONNECTION
WITH THE BONDS.

5. THE ANTICIPATED BUILD-OUT SCHEDULE AND ASSOCIATED VALUATION
INCREASES.

6. THE CURRENTLY OUTSTANDING PRINCIPAL AMOUNT OF DISTRICT BONDS AND
THE CURRENT AD VALOREM TAX RATE OF THE DISTRICT, IF ANY.

7. THE PROPOSED FINANCING TEAM, INCLUDING THE UNDERWRITER OR
PLACEMENT AGENT, THE DISTRICT’S FINANCIAL ADVISOR AND THE DISTRICT’S BOND
COUNSEL.

8. A CERTIFICATION AS TO THE REASONABLENESS OF ASSUMPTIONS THAT ARE
USED IN THE VALUATION AND GROWTH PROJECTIONS.

9. A CERTIFICATION THAT THE PROPOSED DEBT CAN BE REPAID WITHOUT
IMPOSING EXCESSIVE OR UNREASONABLE AD VALOREM TAXES OR ASSESSMENTS ON
RESIDENTS OF THE DISTRICT.

10. A CERTIFICATION THAT THE CONSTRUCTION OR ACQUISITION OF THE
PUBLIC INFRASTRUCTURE, OR BOTH, AS APPLICABLE, WILL NOT CONFLICT WITH THE
MUNICIPALITY'S ADOPTED GENERAL PLAN OR THE COUNTY'S COMPREHENSIVE PLAN, IF
ANY, AND ANY EXISTING AND APPLICABLE DEVELOPMENT AGREEMENTS RELATING TO

THE SUBJECT LAND.
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C. THE AUTHORITY SHALL REVIEW THE INFORMATION SUBMITTED PURSUANT TO
SUBSECTION B OF THIS SECTION TO CONFIRM, SOLELY ON THE BASIS OF THE
INFORMATION SUBMITTED AND WITHOUT ANY INDEPENDENT DETERMINATION OF
FEASIBILITY OR VALUE, THAT ALL INFORMATION REQUIRED PURSUANT TO SUBSECTION
B OF THIS SECTION HAS BEEN SUBMITTED AND THAT THE CONSTRUCTION OR
ACQUISITION OF THE PUBLIC INFRASTRUCTURE, OR BOTH, AS APPLICABLE, COMPLIES
WITH THE FORMATION ORDER AND THE GENERAL PLAN AND DOES NOT OTHERWISE
VIOLATE THE PROVISIONS OF THIS CHAPTER.

D. THE AUTHORITY SHALL NOTIFY THE DISTRICT WITHIN THIRTY DAYS AFTER
RECEIVING THE INFORMATION SUBMITTED PURSUANT TO SUBSECTION B OF THIS
SECTION IF THE SUBMITTED INFORMATION IS INCOMPLETE OR HAS NOT BEEN
SUBMITTED OR IF THE SUBMITTED INFORMATION INDICATES THAT THE CONSTRUCTION
OR ACQUISITION OF THE PUBLIC INFRASTRUCTURE DOES NOT COMPLY WITH THE
FORMATION ORDER OR THE GENERAL PLAN OR DOES NOT OTHERWISE COMPLY WITH THE
PROVISIONS OF THIS CHAPTER. THE BOARD MAY NOT HOLD THE PUBLIC HEARING
DESCRIBED IN SUBSECTION A OF THIS SECTION UNTIL THIRTY DAYS HAS ELAPSED
SINCE THE SUBMISSION OF THE INFORMATION SUBMITTED PURSUANT TO SUBSECTION B
OF THIS SECTION AND THE DISTRICT HAS NOT RECEIVED FROM THE AUTHORITY THE
NOTICE PRESCRIBED IN THIS SUBSECTION.

E. FEES AND OTHER CHARGES THAT ARE ASSESSED BY THE AUTHORITY IN
CONNECTION WITH THE REVIEW OF THE INFORMATION SUBMITTED PURSUANT TO
SUBSECTION B OF THIS SECTION SHALL NOT EXCEED $15,000 FOR EACH SUBMISSION.

ARTICLE 2. FINANCIAL PROVISIONS

48-7021. Deb imitations; maximum authoriz ax rT

A. THE TOTAL AGGREGATE OUTSTANDING AMOUNT OF BONDS AND ANY OTHER
INDEBTEDNESS FOR WHICH THE FULL FAITH AND CREDIT OF A DISTRICT ARE PLEDGED
SHALL NOT EXCEED SIXTY PERCENT OF THE AGGREGATE OF THE ESTIMATED MARKET
VALUE OF THE REAL PROPERTY AND IMPROVEMENTS IN THE DISTRICT AFTER THE
PUBLIC INFRASTRUCTURE OF THE DISTRICT IS COMPLETED PLUS THE VALUE OF THE
PUBLIC INFRASTRUCTURE OWNED OR TO BE ACQUIRED BY THE DISTRICT WITH THE
PROCEEDS OF THE BONDS.

B. ANY AD VALOREM TAX LEVIED TO PAY THE DEBT SERVICE ON ALL GENERAL
OBLIGATION BONDS OF THE DISTRICT SHALL NOT BE LEVIED AT A RATE THAT
EXCEEDS THE MAXIMUM AUTHORIZED TAX RATE. THE MAXIMUM AUTHORIZED TAX RATE
SHALL BE INDICATED IN THE PETITION AND THE FORMATION ORDER AND SHALL BE
APPROVED AT AN ELECTION HELD PURSUANT TO SECTION 48-7041 EXCEPT THAT THE
MAXIMUM AUTHORIZED TAX RATE SHALL NOT EXCEED $10 PER $100 OF NET LIMITED
ASSESSED PROPERTY VALUATION OF PROPERTY WITHIN THE BOUNDARIES OF THE
DISTRICT. THE AUTHORITY SHALL NOT OTHERWISE RESTRICT THE MAXIMUM
AUTHORIZED TAX RATE, THE MAXIMUM ASSESSMENT ASSESSED BY A DISTRICT OR THE
MAXIMUM AGGREGATE AMOUNT OF BONDS ISSUED BY A DISTRICT EXCEPT AS EXPRESSLY
PROVIDED IN THIS CHAPTER.

48-7022. eral o onds; tax 1]

A. AT ANY TIME AFTER THE FORMATION OF A DISTRICT, THE BOARD MAY
FROM TIME TO TIME ORDER AND CALL A GENERAL OBLIGATION BOND ELECTION TO
SUBMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT OR TO THOSE PERSONS WHO
ARE QUALIFIED TO VOTE PURSUANT TO SECTION 48-7041 THE QUESTION OF
AUTHORIZING THE BOARD TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT TO
PROVIDE MONIES FOR ANY PUBLIC INFRASTRUCTURE PURPOSES CONSISTENT WITH THE

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GENERAL PLAN AND THE QUESTION OF AUTHORIZING AN AD VALOREM TAX TO BE
LEVIED.

B. IF GENERAL OBLIGATION BONDS ARE APPROVED AT AN ELECTION, THE
BOARD MAY ISSUE AND SELL GENERAL OBLIGATION BONDS OF THE DISTRICT, THE
TERM OF WHICH MAY NOT EXCEED TWENTY-FIVE YEARS, SUBJECT TO THE LIMITATION
THAT ANY AD VALOREM TAX LEVIED TO PAY THE DEBT SERVICE ON THE GENERAL
OBLIGATION BONDS SHALL NOT BE LEVIED AT A RATE THAT EXCEEDS THE MAXIMUM
AUTHORIZED TAX RATE.

C. THE DISTRICT MAY ISSUE AND SELL REFUNDING BONDS TO REFUND ANY
GENERAL OBLIGATION BONDS OF THE DISTRICT. IF GENERAL OBLIGATION BONDS ARE
ISSUED TO REFUND ANY GENERAL OBLIGATION BONDS OF THE DISTRICT, AN ELECTION
ON THE ISSUANCE OF SUCH REFUNDING BONDS IS NOT REQUIRED, BUT ANY AD
VALOREM TAX LEVIED TO PAY THE DEBT SERVICE ON SUCH REFUNDING BONDS SHALL
NOT BE LEVIED AT A RATE THAT EXCEEDS THE MAXIMUM AUTHORIZED TAX RATE.

D. AFTER THE BONDS ARE ISSUED, THE BOARD SHALL ENTER IN ITS MINUTES
A RECORD OF THE BONDS SOLD AND THEIR NUMBERS AND DATES AND SHALL ANNUALLY
LEVY AND CAUSE AN AD VALOREM TAX TO BE COLLECTED, AT THE SAME TIME AND IN
THE SAME MANNER AS OTHER TAXES ARE LEVIED AND COLLECTED ON ALL TAXABLE
PROPERTY IN THE DISTRICT, SUFFICIENT, TOGETHER WITH ANY MONIES FROM THE
SOURCES DESCRIBED IN SECTION 48-7007, TO PAY DEBT SERVICE ON THE BONDS
WHEN DUE. THE ANNUAL LEVY SHALL NOT EXCEED THE NET AMOUNT NECESSARY TO
MEET ANNUAL PAYMENTS OF PRINCIPAL AND INTEREST, PROJECTED PAYMENTS OF
PRINCIPAL AND INTEREST ON NEW DEBT PLANNED FOR THE ENSUING YEAR, A
REASONABLE DELINQUENCY FACTOR, INCLUDING AN AMOUNT NECESSARY TO CORRECT
PRIOR YEAR ERRORS OR SHORTAGES IN THE LEVY, IF APPLICABLE, AND ANY
EXPENSES AND FEES REQUIRED IN CONJUNCTION WITH THE AUTHORIZATION PURSUANT
TO SECTION 35-512. THE ANNUAL AD VALOREM TAX RATE LEVIED PURSUANT TO THIS
SUBSECTION SHALL NOT EXCEED THE MAXIMUM AUTHORIZED TAX RATE. THE LEVY
SHALL BE THE NET OF ALL CASH IN EXCESS OF TEN PERCENT OF THE ANNUAL
PAYMENTS OF PRINCIPAL AND INTEREST IN THE CURRENT FISCAL YEAR FROM THE
PREVIOUS YEAR THAT REMAIN IN THE FUND OR FUNDS PRESCRIBED BY SUBSECTION E
OF THIS SECTION.

E. MONIES DERIVED FROM THE LEVY OF THE TAX PROVIDED IN THIS SECTION
WHEN COLLECTED CONSTITUTE FUNDS TO PAY THE DEBT SERVICE ON THE BONDS AND
SHALL BE KEPT SEPARATELY FROM OTHER FUNDS OF THE DISTRICT. AMOUNTS LEVIED
FOR DEBT SERVICE ON BONDS PAYABLE FROM THE SECONDARY TAX ARE AND SHALL BE
CONSIDERED SPECIAL REVENUES OF THE DISTRICT, SHALL BE KEPT IN A SPECIAL,
SEGREGATED FUND, ARE NOT AND SHALL NOT BE GENERAL PROPERTY TAXES AND MAY
NOT BE USED FOR ANY OTHER PURPOSE OF THE DISTRICT.

F. ALL BONDS, HERETOFORE AND HEREAFTER ISSUED, ARE SECURED BY A
LIEN ON ALL REVENUES RECEIVED PURSUANT TO THE AD VALOREM TAX LEVY. THE
LIEN ARISES AUTOMATICALLY WITHOUT THE NEED FOR ANY ACTION OR AUTHORIZATION
BY THE DISTRICT OR THE BOARD. THE LIEN IS VALID AND BINDING FROM THE TIME
OF THE ISSUANCE OF THE BONDS. THE REVENUES RECEIVED PURSUANT TO THE LEVY
OF THE AD VALOREM TAX ARE IMMEDIATELY SUBJECT TO THE LIEN. THE LIEN
ATTACHES IMMEDIATELY TO THE REVENUES AND IS EFFECTIVE, BINDING AND
ENFORCEABLE AGAINST THE DISTRICT, THE DISTRICT'S SUCCESSORS, TRANSFEREES
AND CREDITORS AND ALL OTHER PARTIES ASSERTING RIGHTS IN THE REVENUES,

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IRRESPECTIVE OF WHETHER THE PARTIES HAVE NOTICE OF THE LIEN, WITHOUT THE
NEED FOR ANY PHYSICAL DELIVERY, RECORDATION, FILING OR FURTHER ACT.

48-7023. Asses : ent onds; judicial review

A. AFTER APPROVAL OF THE ASSESSMENT AT AN ELECTION HELD AS
PRESCRIBED BY SECTION 48-7041, AND PURSUANT TO THE PROCEDURES PRESCRIBED
BY SECTIONS 48-576 THROUGH 48-589, AS NEARLY AS PRACTICABLE, OR SUCH OTHER
PROCEDURES AS THE BOARD PROVIDES, THE BOARD, MAY LEVY BY RESOLUTION AN
ASSESSMENT OF THE COSTS OF ANY PUBLIC INFRASTRUCTURE PURPOSE OR ANY
OPERATION AND MAINTENANCE OF PUBLIC INFRASTRUCTURE ON ANY LAND IN THE
DISTRICT THAT IS BASED ON THE BENEFIT DETERMINED BY THE BOARD TO BE
RECEIVED BY THE LAND. BEFORE THE ISSUANCE OF ASSESSMENT BONDS, THE
DISTRICT MAY ENTER INTO A WRITTEN AGREEMENT WITH A LANDOWNER AS TO THE
MANNER IN WHICH THE ASSESSMENT IS TO BE ALLOCATED IF THE LAND IS TO BE
DIVIDED INTO MORE THAN ONE PARCEL. IF AN ISSUE OF ASSESSMENT BONDS
FINANCES MORE THAN ONE PURPOSE OR SERVICE, THE BENEFIT RECEIVED BY THE
LAND, IN THE DISCRETION OF THE DISTRICT, MAY BE DETERMINED BY REFERENCE TO
THE PURPOSES AND SERVICES AS A WHOLE OR INDIVIDUALLY. THE ASSESSMENT MAY
BE BASED ON ESTIMATED COSTS AND AMENDED TO REFLECT ACTUAL COSTS, AND THE
PREPARATION OF PLANS AND SPECIFICATIONS AND THE AWARDING OF THE CONTRACT
ARE NOT A PREREQUISITE TO THE LEVYING OF THE ASSESSMENT. AN OWNER OF LAND
ON WHICH AN ASSESSMENT HAS BEEN LEVIED MAY SEEK JUDICIAL REVIEW OF WHETHER
THE LAND IS BENEFITED BY THE PROPOSED PUBLIC INFRASTRUCTURE, ON THE
MERITS, BY SPECIAL ACTION FILED WITH THE COURT OF APPEALS, WITHIN THIRTY
DAYS AFTER THE EFFECTIVE DATE OF THE RESOLUTION.

B. AFTER ADOPTION BY THE BOARD OF A_ RESOLUTION LEVYING AN
ASSESSMENT ON PROPERTY IN THE DISTRICT, THE BOARD MAY ISSUE AND SELL
ASSESSMENT BONDS, THE TERM OF WHICH MAY NOT EXCEED TWENTY-FIVE YEARS,
PAYABLE FROM AMOUNTS COLLECTED FROM THE ASSESSMENTS, FROM AMOUNTS
AVAILABLE FROM TIME TO TIME IN ANY RESERVE FUND ESTABLISHED FOR THOSE
BONDS AND FROM ANY OTHER AMOUNTS AVAILABLE FOR THOSE PURPOSES AS
PRESCRIBED BY SECTION 48-7007. THE DISTRICT AND THE COUNTY TREASURER FOR
THE COUNTY IN WHICH THE DISTRICT IS LOCATED MAY ENTER INTO AN AGREEMENT
FOR THE COUNTY TREASURER TO COLLECT THE DISTRICT'S ASSESSMENTS IN THE
MANNER AND BY THE OFFICERS PROVIDED BY LAW FOR THE COLLECTION AND
ENFORCEMENT OF GENERAL TAXES. THE DISTRICT AND THE COUNTY TREASURER MAY
PROVIDE BY AGREEMENT FOR THE PAYMENT OF THE COUNTY TREASURER'S COLLECTION
EXPENSES DIRECTLY RELATED TO THE LEVY OF THE ASSESSMENT AND, IF SO
PROVIDED, THE LEVY OF THE ASSESSMENT MAY INCLUDE AN AMOUNT FOR
COMPENSATION OF THE COUNTY TREASURER DIRECTLY RELATED TO THE COLLECTION OF
THE ASSESSMENT. THE COMPENSATION RECEIVED BY THE COUNTY TREASURER
PURSUANT TO THE AGREEMENT SHALL BE GOVERNED BY SECTION 11-496. THE BOARD
MAY ALSO ISSUE AND SELL BOND ANTICIPATION NOTES PURSUANT TO THE PROCEDURES
PRESCRIBED IN SECTION 48-2081 OR WITH PROCEDURES AS SIMILAR TO THOSE AS IS
PRACTICABLE. THE ASSESSMENT SHALL BE A FIRST LIEN ON THE PROPERTY ASSESSED
SUBJECT ONLY TO GENERAL PROPERTY TAXES AND PRIOR ASSESSMENTS. IN THE EVENT
OF NONPAYMENT OF AN ASSESSMENT AND EXCEPT AS OTHERWISE PROVIDED IN AN
AGREEMENT BETWEEN THE DISTRICT AND THE COUNTY TREASURER PURSUANT TO THIS
SECTION, THE PROCEDURES FOR COLLECTION OF DELINQUENT ASSESSMENTS, SALE OF
DELINQUENT PROPERTY AND ISSUANCE AND EFFECT OF THE DEED PRESCRIBED BY

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SECTIONS 48-601 THROUGH 48-607 APPLY, AS NEARLY AS PRACTICABLE, EXCEPT
THAT THE DISTRICT, A MUNICIPALITY OR THE STATE IS NOT REQUIRED TO PURCHASE
THE DELINQUENT LAND AT THE SALE IF THERE IS NO OTHER PURCHASER. IF THE
LANDOWNER OWNS MORE THAN ONE PARCEL IN THE DISTRICT, THE BOARD MAY PROVIDE
PROCEDURES FOR THE COLLECTION AND ENFORCEMENT OF ASSESSMENTS AS THE BOARD
DEEMS APPROPRIATE BY CONTRACT WITH A LANDOWNER TO ALLOW THE SALE OF ANY OR
ALL OF THE LANDOWNER'S PARCELS IN THE DISTRICT IF THE LANDOWNER BECOMES
DELINQUENT AS TO ANY PARCEL THAT THE LANDOWNER OWNS IN THE DISTRICT.

C. ON ADOPTION OF THE RESOLUTION, BUT BEFORE ISSUANCE OF THE
ASSESSMENT BONDS, THE DISTRICT MAY DIRECT THE TREASURER TO MAKE DEMAND ON
THE OWNERS OF THE PROPERTY SO ASSESSED, AS SHOWN ON THE PROPERTY TAX ROLL,
FOR ADVANCE PAYMENT OF THE AMOUNT ASSESSED. THE DEMAND SHALL STATE A DATE
NOT LESS THAN TWENTY DAYS AFTER THE DATE OF ADOPTION OF THE RESOLUTION
AFTER WHICH THE TREASURER MAY REFUSE TO ACCEPT ADVANCE PAYMENTS OF THE
ASSESSMENT. THE TREASURER SHALL CERTIFY TO THE CLERK ON OR AFTER THE DATE
SPECIFIED IN THE DEMAND THE AMOUNT COLLECTED AND THE ASSESSMENTS REMAINING
UNPAID AGAINST EACH PARCEL OF LAND ASSESSED. ASSESSMENT BONDS MAY NOT BE
ISSUED IN AN AMOUNT IN EXCESS OF THE AMOUNT ASSESSED IN THE RESOLUTION OR,
IF ADVANCE PAYMENTS ARE DEMANDED, THE AMOUNT CERTIFIED TO THE CLERK. THE
DISTRICT MAY ADOPT PROCEDURES FOR PREPAYMENT AND PROVISIONS FOR PAYMENT
AND REALLOCATION OF ASSESSMENTS.

D. THE DISTRICT MAY ISSUE AND SELL REFUNDING BONDS TO REFUND ANY
ASSESSMENT BONDS OF THE DISTRICT.

48-7024. Revenue bonds
A. AT ANY TIME AFTER THE HEARING ON FORMATION OF THE DISTRICT, THE

BOARD MAY HOLD A HEARING ON THE QUESTION OF AUTHORIZING THE BOARD TO ISSUE
REVENUE BONDS OF THE DISTRICT TO PROVIDE MONIES FOR ANY INFRASTRUCTURE
PURPOSES CONSISTENT WITH THE GENERAL PLAN.

B. IF REVENUE BONDS ARE APPROVED BY RESOLUTION, THE BOARD MAY ISSUE
AND SELL REVENUE BONDS OF THE DISTRICT, THE TERM OF WHICH MAY NOT EXCEED
TWENTY-FIVE YEARS.

C. IF THE BONDS ARE TO BE SOLD IN A PUBLIC OFFERING, NO BONDS MAY
BE ISSUED BY THE DISTRICT UNLESS THE BONDS RECEIVE ONE OF THE FOUR HIGHEST
INVESTMENT GRADE RATINGS BY A NATIONALLY RECOGNIZED BOND RATING AGENCY.

D. THE BOARD MAY PLEDGE TO THE PAYMENT OF ITS REVENUE BONDS ANY
REVENUES OF THE DISTRICT OR REVENUES TO BE COLLECTED BY A MUNICIPALITY OR
A COUNTY IN TRUST FOR THE DISTRICT AND RETURNED TO THE DISTRICT.

E. THE DISTRICT SHALL PRESCRIBE FEES AND CHARGES, AND SHALL REVISE
THEM WHEN NECESSARY, TO GENERATE REVENUE SUFFICIENT, TOGETHER WITH ANY
MONIES FROM THE SOURCES DESCRIBED IN SECTION 48-7007, TO PAY WHEN DUE THE
PRINCIPAL AND INTEREST OF ALL REVENUE BONDS FOR THE PAYMENT OF WHICH
REVENUE HAS BEEN PLEDGED. THE ESTABLISHMENT OR REVISION OF ANY RATES, FEES
AND CHARGES SHALL BE IDENTIFIED AND NOTICED CONCURRENTLY WITH THE ANNUAL
BUDGET PROCESS OF THE DISTRICT PURSUANT TO SECTION 48-7027.

F. IF, IN THE RESOLUTION OF THE BOARD, THE REVENUES TO BE PLEDGED
ARE LIMITED TO CERTAIN TYPES OF REVENUES, ONLY THOSE TYPES OF REVENUES MAY
BE PLEDGED AND ONLY THOSE REVENUES MUST BE MAINTAINED.

G. A HOLDER OF REVENUE BONDS ISSUED UNDER THIS CHAPTER MAY NOT
COMPEL ANY EXERCISE OF THE TAXING POWER OF THE DISTRICT, A MUNICIPALITY OR

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THIS STATE TO PAY THE BONDS OR THE INTEREST ON THE BONDS. REVENUE BONDS
ISSUED UNDER THIS CHAPTER ARE NOT A DEBT OF THE DISTRICT, A MUNICIPALITY
OR THIS STATE, NOR IS THE PAYMENT OF REVENUE BONDS ENFORCEABLE OUT OF ANY
MONIES OTHER THAN THE REVENUE PLEDGED TO THE PAYMENT OF THE BONDS.

H. THE DISTRICT MAY ISSUE AND SELL REFUNDING BONDS TO REFUND ANY
REVENUE BONDS OF THE DISTRICT.

48-7025. Terms of bo

A. WITH RESPECT TO ANY BONDS, THE BOARD SHALL PRESCRIBE THE
DENOMINATIONS OF THE BONDS, THE SIZE OF EACH ISSUE AND THE FORM OF THE
BONDS AND SHALL ESTABLISH THE MATURITIES, INTEREST PAYMENT DATES AND
INTEREST RATES, WHETHER FIXED OR VARIABLE, NOT EXCEEDING THE MAXIMUM RATE
STATED IN THE NOTICE OF THE ELECTION OR THE RESOLUTION OF THE BOARD. THE
BONDS MAY BE SOLD BY COMPETITIVE BID OR NEGOTIATED SALE FOR PUBLIC OR
PRIVATE OFFERING AT, BELOW OR ABOVE PAR. IF THE BONDS ARE SOLD BELOW PAR,
THE AGGREGATE AMOUNT OF DISCOUNT AND INTEREST TO BE PAID ON THE BONDS
SHALL NOT EXCEED THE AMOUNT OF INTEREST THAT WOULD HAVE BEEN PAYABLE ON
THOSE BONDS PURSUANT TO THE MATURITY SCHEDULE PRESCRIBED BY THE BOARD AT
THE MAXIMUM RATE SET OUT IN THE BOND RESOLUTION.

B. IF GENERAL OBLIGATION BONDS OF THE DISTRICT ARE SOLD ABOVE PAR,
THE AMOUNT OF NET PREMIUM ASSOCIATED WITH A GENERAL OBLIGATION BOND ISSUE
MAY BE USED ONLY FOR THE FOLLOWING PURPOSES:

1. TO PAY ANY OR ALL COSTS INCURRED IN ISSUING THE GENERAL
OBLIGATION BONDS.

2. AS A DEPOSIT IN A DEBT SERVICE FUND AND USED ONLY TO PAY
INTEREST ON THE ISSUE OF GENERAL OBLIGATION BONDS.

C. IF USED FOR ANY PURPOSE OTHER THAN AS PRESCRIBED IN SUBSECTION B
OF THIS SECTION, AND IF THE DISTRICT HAS GENERAL OBLIGATION BOND VOTER
AUTHORIZATION AND AVAILABLE CAPACITY UNDER ITS DEBT LIMITATIONS PRESCRIBED
BY SECTION 48-7021, SUBSECTION A, THE AMOUNT OF NET PREMIUM USED FOR THAT
PURPOSE SHALL REDUCE IN AN EQUAL AMOUNT BOTH THE AVAILABLE AGGREGATE
INDEBTEDNESS CAPACITY OF THE DISTRICT PRESCRIBED IN SECTION 48-7021,
SUBSECTION A AND THE PRINCIPAL AMOUNT AUTHORIZED AT THE GENERAL OBLIGATION
BOND ELECTION FOR THE DISTRICT FROM WHICH THE ISSUE OF GENERAL OBLIGATION
BONDS IS BEING SOLD. ANY NET PREMIUM THAT IS USED AS PRESCRIBED IN THIS
SUBSECTION SHALL BE AMORTIZED FOR ALL DEBT LIMITATION PURPOSES ON A PRO
RATA BASIS EACH YEAR BY MULTIPLYING THE NET PREMIUM USED BY A PERCENTAGE
EQUAL TO THE PERCENTAGE OF THE TOTAL PRINCIPAL AMOUNT OF THE GENERAL
OBLIGATION BOND ISSUE THAT MATURES IN THAT YEAR.

D. THE PROCEEDS OF THE SALES SHALL BE DEPOSITED WITH THE TREASURER,
OR WITH A TRUSTEE OR AGENT DESIGNATED BY THE BOARD, TO THE CREDIT OF THE
DISTRICT TO BE WITHDRAWN FOR THE PURPOSES PROVIDED BY THIS CHAPTER.
PENDING THAT USE, THE PROCEEDS MAY BE INVESTED AS DETERMINED BY THE
DISTRICT. THE BONDS MAY CONTAIN TERMS, CONDITIONS, COVENANTS AND
AGREEMENTS AS THE BOARD DEEMS PROPER. THE BONDS MAY BE PAYABLE FROM ANY
COMBINATION OF AD VALOREM TAXES, REVENUES OR ASSESSMENTS OF THE TYPES
DESCRIBED IN THIS CHAPTER AND AS SPECIFIED IN THE BONDS IF ALL APPLICABLE

REQUIREMENTS ARE MET.

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48-7026. O/M taxes: election; financial estimate and
budget; hearing

A. AT ANY TIME AFTER THE RECORDING OF A FORMATION ORDER, THE BOARD
MAY CALL AN ELECTION TO SUBMIT TO THE PERSONS WHO ARE ELIGIBLE TO VOTE IN
THE DISTRICT AS PRESCRIBED IN SECTION 48-7041 THE QUESTION OF AUTHORIZING
THE BOARD TO LEVY AN O/M TAX ON THE NET LIMITED ASSESSED PROPERTY
VALUATION OF PROPERTY IN THE DISTRICT AT A RATE OR RATES THAT DO NOT
EXCEED THE MAXIMUM RATE OR RATES SPECIFIED IN THE BALLOT. THE CONTINUED
IMPOSITION OF THE TAX MUST BE APPROVED BY A MAJORITY OF THE PERSONS WHO
ARE ELIGIBLE TO VOTE IN THE DISTRICT AS PRESCRIBED IN SECTION 48-7041,
VOTING IN A REGULAR OR SPECIAL ELECTION AT LEAST EVERY SEVEN YEARS AFTER
THE DATE OF THE INITIAL IMPOSITION. ALL O/M TAXES SHALL BE USED FOR THE
OPERATION AND MAINTENANCE EXPENSES OF THE DISTRICT, INCLUDING LEGAL
EXPENSES AND EXPENSES THAT ARE ASSOCIATED WITH INSURANCE COVERAGE, AND
SHALL NOT EXCEED AN AMOUNT EQUAL TO $.30 PER $100 OF ASSESSED VALUATION
FOR ALL REAL AND PERSONAL PROPERTY IN THE DISTRICT. THE BOARD BY SIMPLE
MAJORITY VOTE MAY REDUCE OR ELIMINATE ANY PORTION OF THE O/M TAX IMPOSED
BY THE DISTRICT.

B. THE DISTRICT MAY NOT LEVY AN O/M TAX AT A RATE OR RATES IN
EXCESS OF THE MAXIMUM RATE THEN IN EFFECT.

C. WHEN LEVYING AN O/M TAX, THE BOARD SHALL MAKE ANNUAL STATEMENTS
AND ESTIMATES OF THE OPERATION AND MAINTENANCE EXPENSES OF THE DISTRICT
AND THE AMOUNT OF ALL OTHER EXPENDITURES FOR PUBLIC INFRASTRUCTURE
PROPOSED TO BE PAID FROM THE O/M TAX LEVY OR LEVIES, ALL OF WHICH SHALL BE
PROVIDED FOR BY THE LEVY AND COLLECTION OF AD VALOREM TAXES ON THE
ASSESSED VALUE OF ALL THE REAL AND PERSONAL PROPERTY IN THE DISTRICT. THE
BOARD SHALL FILE THE ANNUAL STATEMENTS AND ESTIMATES WITH THE CLERK. THE
BOARD SHALL PUBLISH A NOTICE OF THE FILING OF THE ESTIMATE, SHALL HOLD
HEARINGS ON THE PORTIONS OF THE ESTIMATE NOT RELATING TO DEBT SERVICE ON
BONDS AND SHALL ADOPT A BUDGET. THE BOARD, ON OR BEFORE THE DATE SET BY
LAW FOR CERTIFYING THE ANNUAL BUDGET OF THE COUNTY OR MUNICIPALITY, SHALL
FIX, LEVY AND ASSESS THE AMOUNTS TO BE RAISED BY O/M TAXES OF THE DISTRICT
AND SHALL CAUSE CERTIFIED COPIES OF THE ORDER TO BE DELIVERED TO THE BOARD
OF SUPERVISORS AND TO THE DEPARTMENT OF REVENUE. ALL STATUTES RELATING TO
THE LEVY AND COLLECTION OF GENERAL COUNTY TAXES, INCLUDING THE COLLECTION
OF DELINQUENT TAXES AND SALE OF PROPERTY FOR NONPAYMENT OF TAXES, APPLY TO
THE DISTRICT TAXES PROVIDED FOR BY THIS SECTION.

48-7027. Budget; heari

ON OR BEFORE JULY 15 EACH YEAR, THE TREASURER SHALL PREPARE A
PROPOSED BUDGET FOR THE ENSUING FISCAL YEAR TO BE SUBMITTED TO THE BOARD
FOR APPROVAL. THE BOARD SHALL INDICATE ITS APPROVAL OF THE BUDGET BY
RESOLUTION, WHICH SHALL PROVIDE FOR A HEARING ON THE BUDGET AS APPROVED.
THE PARTICIPATING ENTITIES MAY REVIEW THE PROPOSED ANNUAL BUDGET AND MAY
SUBMIT WRITTEN COMMENTS TO THE BOARD FOR ITS ASSISTANCE AND INFORMATION IN
ADOPTING ITS ANNUAL BUDGET. AT THE CONCLUSION OF THE BUDGET HEARING, THE
BOARD, BY RESOLUTION, SHALL ADOPT THE BUDGET AS FINALLY APPROVED BY THE
BOARD. THE BUDGET SHALL BE ADOPTED BEFORE OCTOBER 1 EACH YEAR.

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48-7028. Di i a s

property tax bills

A. ANY AD VALOREM TAX THAT IS LEVIED BY A DISTRICT PURSUANT TO THIS
CHAPTER SHALL BE SHOWN ON EACH PROPERTY TAX BILL AS A SEPARATE LINE ITEM
THAT:

1. IDENTIFIES THE NAME OF THE DISTRICT.

2. STATES THAT THE TAX IS LEVIED BY AN INFRASTRUCTURE FINANCE
DISTRICT AND IS NOT A TAX OF THE MUNICIPALITY OR THE COUNTY.

3. STATES THAT THE FORMATION OF THE DISTRICT WAS APPROVED BY THE
AUTHORITY.

B. ANY ASSESSMENT THAT IS LEVIED BY A DISTRICT PURSUANT TO THIS
CHAPTER AND THAT IS COLLECTED BY THE COUNTY TREASURER SHALL BE SHOWN ON
EACH PROPERTY TAX BILL AS A SEPARATE LINE ITEM THAT:

1. IDENTIFIES THE NAME OF THE DISTRICT.

2. STATES THAT THE CHARGE IS AN ASSESSMENT LEVIED BY AN
INFRASTRUCTURE FINANCE DISTRICT AND IS NOT AN ASSESSMENT OF THE
MUNICIPALITY OR THE COUNTY.

3. STATES THAT THE FORMATION OF THE DISTRICT WAS APPROVED BY THE
AUTHORITY.

ARTICLE 3. OPERATIONS

48-7041. Notice and conduct of elections: eligible voters

A. ANY ELECTION UNDER THIS ARTICLE SHALL BE A NONPARTISAN ELECTION
CALLED BY POSTING NOTICES IN THREE PUBLIC PLACES WITHIN THE BOUNDARIES OF
THE DISTRICT NOT LESS THAN TWENTY DAYS BEFORE THE ELECTION. ANY ELECTION
MAY BE CONDUCTED AS A MAIL BALLOT ELECTION IN THE MANNER PRESCRIBED IN
TITLE 16, CHAPTER 4, ARTICLE 8.1 AS NEARLY AS PRACTICABLE. IF THE
ELECTION NOTICE IS NOT MAILED TO THE PROPERTY OWNERS AND, IF APPLICABLE,
TO THE QUALIFIED ELECTORS, THE NOTICE SHALL ALSO BE PUBLISHED IN A
NEWSPAPER OF GENERAL CIRCULATION IN THE MUNICIPALITY, OR IF THERE IS NO
NEWSPAPER SO CIRCULATED IN THE MUNICIPALITY, IN A NEWSPAPER OF GENERAL
CIRCULATION IN THE COUNTY IN WHICH THE DISTRICT IS LOCATED ONCE A WEEK FOR
TWO CONSECUTIVE WEEKS BEFORE THE ELECTION. THE NOTICE SHALL STATE:

1. THE PLACE OF HOLDING THE ELECTION.

2. THE HOURS DURING THE DAY, NOT LESS THAN SIX, IN WHICH THE POLLS
WILL BE OPEN.

3. IF IT IS A BOND ELECTION, THE AMOUNT OF BONDS TO BE AUTHORIZED
FOR THE DISTRICT, THE MAXIMUM RATE OF INTEREST TO BE BORNE ON THE BONDS,
THE MAXIMUM TERM OF THE BONDS, NOT EXCEEDING TWENTY-FIVE YEARS, AND THE
PURPOSES FOR WHICH THE MONIES RAISED WILL BE USED.

4. IF IT IS AN AD VALOREM TAX LEVY ELECTION PURSUANT TO SECTION
48-7022 OR 48-7023, THE MAXIMUM TAX RATE PER $100 OF NET ASSESSED LIMITED
PROPERTY VALUATION TO BE IMPOSED, THE PURPOSES FOR WHICH THE MONIES RAISED
WILL BE USED AND THE EXISTING MAXIMUM AUTHORIZED TAX RATE.

5. IF IT IS AN ASSESSMENT LEVY ELECTION PURSUANT TO SECTION
48-7023, THE MAXIMUM ASSESSMENT RATE TO BE IMPOSED, THE PURPOSES FOR WHICH
THE MONIES RAISED WILL BE USED AND THE EXISTING MAXIMUM ASSESSMENT RATE,

IF ANY.
6. THAT A GENERAL PLAN IS ON FILE WITH THE CLERK.

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B. THE BOARD SHALL DETERMINE THE DATE OF THE ELECTION AND, IF
APPLICABLE, THE POLLING PLACES FOR THE ELECTION AND MAY CONSOLIDATE
PRECINCTS. THE CLERK OF THE BOARD SHALL PREPARE A LIST OF ELIGIBLE VOTERS
IN THE ELECTION. A PROSPECTIVE LANDOWNER VOTER SHALL EXECUTE AN AFFIDAVIT
STATING THAT THE VOTER IS THE OWNER OF LAND IN THE DISTRICT AND IS
QUALIFIED TO VOTE PURSUANT TO THIS SECTION AND STATING THE PARCEL NUMBER
OWNED BY THE VOTER. ELECTION BOARD MEMBERS MAY ADMINISTER OATHS OR TAKE
ALL AFFIRMATIONS FOR THESE PURPOSES. AN ELECTION HELD PURSUANT TO THIS
ARTICLE IS NOT SUBJECT TO TITLE 16, CHAPTER 2, ARTICLE 3.

C. ONLY THE OWNERS OF REAL PROPERTY IN THE DISTRICT ARE ELIGIBLE TO
VOTE IN AN ELECTION REGARDING AN AD VALOREM TAX LEVY ELECTION, AN
ASSESSMENT ELECTION, AN O/M TAX ELECTION, AN ELECTION FOR THE BOARD OF
DIRECTORS OF THE DISTRICT AND IN AN ELECTION FOR DISSOLUTION.
CORPORATIONS, PARTNERSHIPS AND OTHER BUSINESS ENTITIES ARE ELIGIBLE TO
VOTE AS PROPERTY OWNERS, BUT ONLY ONE VOTE MAY BE CAST FOR EACH
ONE-SEVENTH OF AN ACRE OF REAL PROPERTY IN THE DISTRICT, EXCEPT THAT ANY
FRACTION OF OWNERSHIP OF REAL PROPERTY THAT IS LESS THAN ONE-SEVENTH OF AN
ACRE ENTITLES THE OWNER TO CAST ONE VOTE. A MAJORITY OF THE ACREAGE AS
REPRESENTED BY THE VOTES CAST AT AN ELECTION CONDUCTED SOLELY UNDER THE
ACREAGE SYSTEM SHALL DETERMINE THE RESULT. AN ACREAGE SYSTEM ELECTION
SHALL BE CONDUCTED PURSUANT TO THE PROCEDURES PRESCRIBED IN SECTIONS
48-3042 THROUGH 48-3051 AS NEARLY AS PRACTICABLE. QUALIFIED ELECTORS ARE
ELIGIBLE TO VOTE IN AN ELECTION REGARDING GENERAL OBLIGATION BONDS.

D. EXCEPT AS OTHERWISE PROVIDED BY THIS ARTICLE, THE ELECTION SHALL
COMPLY WITH THE GENERAL ELECTION LAWS OF THIS STATE, EXCEPT THAT THE WORDS
TO APPEAR ON THE BALLOTS SHALL BE FOR A BOND ELECTION “BONDS, YES" AND
“BONDS, NO", FOR A TAX ELECTION IF NO TAX IS IN PLACE "TAX, YES" AND "TAX,
NO" AND FOR A TAX ELECTION TO CHANGE AN EXISTING MAXIMUM OR ELIMINATE AN
EXISTING TAX "TAX CHANGE, YES" AND “TAX CHANGE, NO". THE RETURNS OF
ELECTION SHALL BE MADE TO THE BOARD.

E. WITHIN FOURTEEN DAYS AFTER AN ELECTION, THE BOARD SHALL MEET AND
CANVASS THE RETURNS. IF THE MAJORITY OF ACREAGE AS REPRESENTED BY THE
VOTES CAST AT THE ELECTION IS IN FAVOR OF IMPOSING THE TAX, THE BOARD
SHALL ENTER THAT FACT ON ITS MINUTES. THE CANVASS MAY BE CONTINUED FROM
TIME TO TIME. FAILURE OF A MAJORITY TO VOTE IN FAVOR OF THE MATTER
SUBMITTED DOES NOT PREJUDICE THE SUBMISSION OF THE SAME OR SIMILAR MATTERS
AT A LATER ELECTION.

F. IF A PERSON LISTED ON THE ASSESSMENT ROLL IS NO LONGER THE OWNER
OF LAND IN THE DISTRICT AND THE NAME OF THE SUCCESSOR OWNER BECOMES KNOWN
AND IS VERIFIED BY RECORDED DEED OR OTHER SIMILAR EVIDENCE OF TRANSFER OF
OWNERSHIP, THE SUCCESSOR OWNER IS DEEMED TO BE THE OWNER FOR THE PURPOSES
OF THIS ARTICLE.

G. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, IF NO
PERSON HAS REGISTERED TO VOTE WITHIN THE DISTRICT WITHIN FIFTY DAYS
IMMEDIATELY PRECEDING ANY SCHEDULED ELECTION DATE, ANY ELECTION REQUIRED
TO BE HELD PURSUANT TO THIS ARTICLE SHALL BE HELD WITH THE VOTE BY THE
OWNERS OF LAND WITHIN THE DISTRICT WHO ARE QUALIFIED ELECTORS OF THIS
STATE AND OTHER LANDOWNERS ACCORDING TO SECTION 48-3043. EACH OWNER HAS
THE NUMBER OF VOTES OR PORTION OF VOTES EQUAL TO THE NUMBER OF ACRES OR

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PORTION OF ACRES ROUNDED UPWARD TO THE NEAREST ONE-FIFTH OF AN ACRE OWNED
IN THE DISTRICT BY THAT PERSON.

48-7042. Recording documents

THE DISTRICT SHALL FILE AND RECORD WITH THE COUNTY RECORDER THE
FORMATION ORDER, THE GENERAL PLAN OF THE DISTRICT, THE CANVASS OF ANY
GENERAL OBLIGATION BOND ELECTION AND ANY ASSESSMENTS LEVIED BY THE
DISTRICT. COPIES OF ALL SUCH INFORMATION SHALL BE PROVIDED TO THE STATE
REAL ESTATE DEPARTMENT.

48-7043. site: a| ent; coordination

with seller disclosures

A. THE BOARD SHALL ESTABLISH AND MAINTAIN AN OFFICIAL WEBSITE THAT
IS ELECTRONICALLY SEARCHABLE BY THE PUBLIC AND THAT CONTAINS A
COMPREHENSIVE DATABASE OF DISTRICT CONTRACTS, PUBLIC NOTICES, MEETING
MINUTES, RESOLUTIONS AND ACCOUNTS SHOWING ALL MONIES RECEIVED AND
DISBURSED, THE ANNUAL BUDGET AND OTHER RECORDS REQUIRED TO BE MAINTAINED
BY LAW. THE BOARD SHALL PROVIDE A LINK TO THE DATABASE ON THE DISTRICT'S
MAIN WEBSITE MAINTAINED BY THE BOARD AND SHALL PROVIDE A LINK TO THAT
DATABASE TO THE DEPARTMENT OF ADMINISTRATION. THE DATABASE MAY NOT

INCLUDE:
1. TAX PAYMENT OR REFUND DATA THAT INCLUDES CONFIDENTIAL TAXPAYER
INFORMATION.

2. WORK PRODUCT IN ANTICIPATION OF LITIGATION OR OTHER INFORMATION
THAT IS SUBJECT TO ATTORNEY-CLIENT PRIVILEGE.

3. ANY OTHER INFORMATION THAT IS DESIGNATED BY LAW AS CONFIDENTIAL.

B. THE DISTRICT SHALL KEEP THE WEBSITE CURRENT AND SHALL POST, IN
ADDITION TO THE INFORMATION DESCRIBED IN SUBSECTION A OF THIS SECTION, ALL
OF THE FOLLOWING INFORMATION:

1. THE DISTRICT'S LEGAL NAME, COMMON NAME, IF ANY, STATUTORY
AUTHORITY, FORMATION DATE AND THE BOUNDARIES OF THE DISTRICT, INCLUDING AT
LEAST ONE MAP IN A DOWNLOADABLE FORMAT.

2. A COPY OF THE FORMATION ORDER AND THE GENERAL PLAN.

3. A STATEMENT THAT THE FORMATION OF THE DISTRICT WAS REVIEWED AND
APPROVED BY THE AUTHORITY DESIGNATED PURSUANT TO THIS CHAPTER, AND THAT
THE DISTRICT IS A SEPARATE POLITICAL SUBDIVISION FROM THE MUNICIPALITY AND
THE COUNTY IN WHICH IT IS LOCATED AND THAT ANY AD VALOREM TAXES,
ASSESSMENTS, FEES OR CHARGES IMPOSED BY THE DISTRICT ARE LEVIED BY THE
DISTRICT AND ARE NOT TAXES, ASSESSMENTS, FEES OR CHARGES OF THE
MUNICIPALITY OR THE COUNTY.

4. A PLAIN-LANGUAGE DESCRIPTION OF THE PURPOSE FOR WHICH THE
DISTRICT WAS FORMED AND THE PUBLIC IMPROVEMENTS OR SERVICES THE DISTRICT
IS AUTHORIZED TO FINANCE OR PROVIDE.

5. THE CURRENT YEAR'S ADOPTED BUDGET FOR THE DISTRICT AND THE TWO
MOST RECENT PRIOR YEARS' ADOPTED BUDGETS.

6. A SCHEDULE OF ALL AD VALOREM TAXES, ASSESSMENTS, FEES AND
CHARGES IMPOSED BY THE DISTRICT FOR THE CURRENT FISCAL YEAR.

7. A DESCRIPTION OF ALL OUTSTANDING BONDS AND OTHER LONG-TERM
OBLIGATIONS OF THE DISTRICT, INCLUDING THE ORIGINAL PRINCIPAL AMOUNT,
CURRENT PRINCIPAL BALANCE, IF REASONABLY AVAILABLE, MAXIMUM AUTHORIZED

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House Amendments to H.B. 2999

OANA TL WDM FE

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CONDAAHBRWNMHEFOODANAAGRKROP FOoOWOON aN Sf Ome S& ow an ® & Re S

PRINCIPAL, FINAL MATURITY DATE AND A GENERAL DESCRIPTION OF THE REVENUE
SOURCES PLEDGED FOR REPAYMENT.

8. THE MAXIMUM AUTHORIZED TAX RATE, THE MAXIMUM AUTHORIZED
AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, THE MAXIMUM
AGGREGATE ASSESSMENT AMOUNT AND THE MAXIMUM 0/M TAX RATE.

9. THE NAMES, OFFICIAL TITLES AND CONTACT INFORMATION FOR THE
BOARD, THE CLERK AND THE TREASURER.

10. NOTICES OF ALL REGULAR AND SPECIAL MEETINGS OF THE BOARD,
AGENDAS AND MINUTES, POSTED IN A TIMELY MANNER.

11. ANY ANNUAL REPORTS, AUDITS OR FINANCIAL REVIEWS REQUIRED TO BE
FILED WITH A COUNTY, THIS STATE OR ANY OTHER PUBLIC BODY AND ANY
ADDITIONAL REPORTS THE DISTRICT ELECTS TO PROVIDE FOR PUBLIC TRANSPARENCY.

C. THE DISTRICT SHALL ALSO MAKE AVAILABLE ON THE WEBSITE, IN A FORM
THAT CAN BE DOWNLOADED AND PROVIDED TO A PURCHASER, A STANDARDIZED
"DISTRICT DISCLOSURE NOTICE" THAT INCLUDES:

1. A BRIEF DESCRIPTION OF THE DISTRICT AND ITS POWERS TO LEVY AD
VALOREM TAXES, ASSESSMENTS, FEES AND CHARGES.

2. THE MOST RECENT AD VALOREM TAX RATE OR ASSESSMENT RATE IMPOSED
BY THE DISTRICT AND A SAMPLE CALCULATION OF THE ESTIMATED ANNUAL AD
VALOREM TAX OR ASSESSMENT ON A HYPOTHETICAL RESIDENTIAL PROPERTY VALUE
SELECTED BY THE BOARD.

3. A STATEMENT THAT ACTUAL AD VALOREM TAXES, ASSESSMENTS, FEES AND
CHARGES ON A PARTICULAR PROPERTY MAY DIFFER BASED ON CHANGES IN TAX RATES,
ASSESSED VALUE AND DISTRICT FINANCING DECISIONS.

4. A STATEMENT DIRECTING PROSPECTIVE PURCHASERS TO THE DISTRICT
WEBSITE FOR ADDITIONAL AND UPDATED INFORMATION.

D. A SELLER OF PROPERTY LOCATED IN THE DISTRICT WHO IS REQUIRED BY
LAW TO PROVIDE A DISTRICT DISCLOSURE TO A PURCHASER MAY SATISFY ANY
REQUIREMENT TO DESCRIBE THE DISTRICT'S PURPOSES, POWERS, TAX RATES OR
INDEBTEDNESS BY:

1. PROVIDING THE PURCHASER WITH A CURRENT COPY OF THE STANDARDIZED
DISTRICT DISCLOSURE NOTICE DESCRIBED IN SUBSECTION C OF THIS SECTION.

2. IDENTIFYING IN WRITING THE DISTRICT'S WEBSITE ADDRESS ON OR
BEFORE THE DATE THE PURCHASER SIGNS A BINDING CONTRACT TO ACQUIRE THE
PROPERTY.

E. THE FAILURE OF THE DISTRICT TO TIMELY UPDATE ALL INFORMATION ON
THE WEBSITE DOES NOT RELIEVE A SELLER FROM ANY DUTY UNDER OTHER APPLICABLE
DISCLOSURE LAWS, BUT A SELLER WHO, IN GOOD FAITH, RELIES ON INFORMATION
POSTED BY THE DISTRICT ON ITS WEBSITE AT THE TIME OF DISCLOSURE IS NOT
LIABLE FOR AN INACCURACY IN THAT INFORMATION UNLESS THE SELLER HAD ACTUAL
KNOWLEDGE OF THE INACCURACY.

48-7044. tip eport
A. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE END OF EACH

FISCAL YEAR, THE DISTRICT SHALL SUBMIT TO THE AUTHORITY AN ANNUAL REPORT

CONTAINING:
1. THE CURRENT YEAR'S ADOPTED BUDGET FOR THE DISTRICT AND THE TWO

MOST RECENT PRIOR YEARS' ADOPTED BUDGETS.
2. A SCHEDULE OF ALL AD VALOREM TAXES, ASSESSMENTS, FEES AND

CHARGES IMPOSED BY THE DISTRICT FOR THE CURRENT FISCAL YEAR.
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House Amendments to H.B. 2999

OANA HPWNHE

SPRFEFSFPRPSPRPEWWWWWWWWWWNHNNNNYNNYNYNDDP Rr ke

3. A DESCRIPTION OF ALL OUTSTANDING BONDS AND OTHER LONG-TERM
OBLIGATIONS OF THE DISTRICT, INCLUDING THE ORIGINAL PRINCIPAL AMOUNT,
CURRENT PRINCIPAL BALANCE, IF REASONABLY AVAILABLE, MAXIMUM AUTHORIZED
PRINCIPAL, FINAL MATURITY DATE AND A GENERAL DESCRIPTION OF THE REVENUE
SOURCES PLEDGED FOR REPAYMENT.

4. THE MAXIMUM AUTHORIZED TAX RATE, THE MAXIMUM AUTHORIZED
AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, THE MAXIMUM
AGGREGATE ASSESSMENT AMOUNT AND THE MAXIMUM O/M TAX RATE.

5. THE NAMES, OFFICIAL TITLES AND CONTACT INFORMATION FOR THE
BOARD, THE CLERK AND THE TREASURER.

6. A BRIEF DESCRIPTION OF THE PUBLIC INFRASTRUCTURE THE DISTRICT
HAS ACQUIRED OR CONSTRUCTED.

7. THE NUMBER OF RESIDENTIAL HOUSING UNITS CONSTRUCTED WITHIN THE
DISTRICT.

B. NOT LATER THAN THIRTY DAYS AFTER THE ISSUANCE OF ANY BONDS, THE
DISTRICT SHALL SUBMIT TO THE AUTHORITY A BOND ISSUANCE REPORT CONTAINING:

1. THE FINAL OFFERING DOCUMENT, IF ANY, PURSUANT TO WHICH THE BONDS
WERE SOLD.

2. A DEBT SERVICE SCHEDULE FOR THE BONDS.

3. A DESCRIPTION OF THE PUBLIC INFRASTRUCTURE FINANCED WITH THE
PROCEEDS OF THE BONDS.

4. IF THE BONDS ARE GENERAL OBLIGATION BONDS, A PROJECTION OF THE
AD VALOREM TAX RATE THAT IS REQUIRED TO SUPPORT DEBT SERVICE ON THE BONDS,
WHICH PROJECTED RATE DOES NOT EXCEED THE MAXIMUM AUTHORIZED TAX RATE.

5. IF THE BONDS ARE ASSESSMENT BONDS, THE MAXIMUM AGGREGATE
ASSESSMENT AND THE MAXIMUM PER-LOT ASSESSMENT LEVIED IN CONNECTION WITH
THE BONDS.

6. A DESCRIPTION OF ALL OUTSTANDING BONDS AND OTHER LONG-TERM
OBLIGATIONS OF THE DISTRICT, INCLUDING THE ORIGINAL PRINCIPAL AMOUNT,
CURRENT PRINCIPAL BALANCE, IF REASONABLY AVAILABLE, MAXIMUM AUTHORIZED
PRINCIPAL, FINAL MATURITY DATE AND A GENERAL DESCRIPTION OF THE REVENUE
SOURCES PLEDGED FOR REPAYMENT.

48-7045. Seller disclosure; form of notice

A. THIS SECTION APPLIES TO THE SALE OR OTHER CONVEYANCE OF ANY
RESIDENTIAL REAL PROPERTY THAT IS LOCATED WITHIN THE BOUNDARIES OF A
DISTRICT FORMED UNDER THIS CHAPTER AND THAT IS AUTHORIZED TO LEVY AN AD
VALOREM TAX, ASSESSMENT, FEE OR CHARGE THAT APPEARS AS A SEPARATE LINE
ITEM ON THE PROPERTY TAX BILL FOR THAT PROPERTY.

B. A SELLER OF RESIDENTIAL REAL PROPERTY TO WHICH THIS SECTION
APPLIES SHALL PROVIDE TO EACH PROSPECTIVE PURCHASER A WRITTEN “DISTRICT
DISCLOSURE NOTICE" THAT CONTAINS, AT A MINIMUM, THE INFORMATION DESCRIBED
IN SECTION 48-7043, SUBSECTION C AND THAT SUBSTANTIALLY COMPLIES WITH THE
FORM PRESCRIBED BY THE DISTRICT.

C. THE SELLER SHALL DELIVER THE DISTRICT DISCLOSURE NOTICE AS
FOLLOWS:

1. FOR A TRANSACTION IN WHICH THE PURCHASER SIGNS A WRITTEN OFFER,
THE SELLER SHALL DELIVER THE NOTICE TO THE PURCHASER ON OR BEFORE THE DATE
ON WHICH THE PURCHASER SIGNS A BINDING PURCHASE CONTRACT FOR THE PROPERTY.

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House Amendments to H.B. 2999

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PHP PHP PAR WWW WWW WwW ww P MMH NM MP M PY P ee
ANANFWNMRFPOWANATAHRWNHHEOWw OIAAEONNOS SHaoasowese

2. FOR ANY OTHER TRANSACTION, THE SELLER SHALL DELIVER THE NOTICE
TO THE PURCHASER BEFORE THE PURCHASER BECOMES OBLIGATED UNDER ANY BINDING
AGREEMENT TO ACQUIRE THE PROPERTY.

D. A DISTRICT DISCLOSURE NOTICE SATISFIES THE SELLER'S OBLIGATION
UNDER THIS SECTION IF THE NOTICE:

1. IDENTIFIES THE DISTRICT BY LEGAL NAME AND COMMON NAME, IF ANY.

2. STATES THAT THE PROPERTY IS LOCATED WITHIN THE DISTRICT AND IS
SUBJECT TO THE DISTRICT'S TAXING AND ASSESSMENT AUTHORITY.

3. INCLUDES A BRIEF DESCRIPTION OF THE DISTRICT'S PURPOSES AND
POWERS, INCLUDING ITS AUTHORITY TO LEVY AD VALOREM TAXES, ASSESSMENTS,
FEES OR CHARGES.

4. STATES THE CURRENT AD VALOREM TAX RATE OR ASSESSMENT RATE
IMPOSED BY THE DISTRICT AND PROVIDES AN EXAMPLE OF THE ESTIMATED ANNUAL
TAX OR ASSESSMENT ON A HYPOTHETICAL RESIDENTIAL PROPERTY VALUE.

5. STATES THAT ACTUAL TAXES, ASSESSMENTS, FEES AND CHARGES ON THE
PROPERTY MAY CHANGE OVER TIME AND MAY DIFFER FROM THE EXAMPLE PROVIDED.

6. STATES THAT THE FORMATION OF THE DISTRICT WAS REVIEWED AND
APPROVED BY THE AUTHORITY DESIGNATED PURSUANT TO THIS CHAPTER AND THAT THE
DISTRICT IS A SEPARATE POLITICAL SUBDIVISION FROM THE MUNICIPALITY AND THE
COUNTY IN WHICH IT IS LOCATED AND THAT ANY AD VALOREM TAXES, ASSESSMENTS,
FEES OR CHARGES IMPOSED BY THE DISTRICT ARE LEVIED BY THE DISTRICT AND ARE
NOT TAXES, ASSESSMENTS, FEES OR CHARGES OF THE MUNICIPALITY OR THE COUNTY.

7. PROVIDES THE INTERNET WEBSITE ADDRESS FOR THE DISTRICT AND
ADVISES THE PURCHASER THAT ADDITIONAL AND UPDATED INFORMATION REGARDING
THE DISTRICT'S FINANCES, MEETINGS AND OPERATIONS IS AVAILABLE ON THAT
WEBSITE.

E. A SELLER MAY SATISFY THE DISCLOSURE REQUIREMENTS OF THIS SECTION
BY:

1. PROVIDING THE PURCHASER WITH A CURRENT COPY OF THE STANDARDIZED
DISTRICT DISCLOSURE NOTICE MADE AVAILABLE BY THE DISTRICT PURSUANT TO
SECTION 48-7043, SUBSECTION C.

2. IDENTIFYING THE DISTRICT'S WEBSITE ADDRESS IN THE PURCHASE

CONTRACT OR IN A SEPARATE WRITTEN DISCLOSURE DELIVERED WITH THE NOTICE.
F. A SELLER WHO, IN GOOD FAITH, RELIES ON INFORMATION CONTAINED IN
THE STANDARDIZED DISTRICT DISCLOSURE NOTICE PROVIDED BY THE DISTRICT OR
POSTED ON THE DISTRICT'S WEBSITE AT THE TIME OF DISCLOSURE IS NOT LIABLE
FOR AN INACCURACY IN THAT INFORMATION UNLESS THE SELLER HAD ACTUAL
KNOWLEDGE OF THE INACCURACY.

G. A SELLER'S COMPLIANCE WITH THIS SECTION DOES NOT SATISFY OR
LIMIT ANY OBLIGATION OF A SUBDIVIDER OR OTHER SELLER TO OBTAIN AND DELIVER
A SUBDIVISION PUBLIC REPORT UNDER TITLE 32, CHAPTER 20, ARTICLE 4, AND
DOES NOT LIMIT ANY DISCLOSURE OBLIGATIONS IMPOSED BY SECTION 33-423 OR ANY
OTHER PROVISION OF LAW.

48-7046. Change in district boundaries or general plan

A. AFTER FORMATION OF A DISTRICT, AN AREA MAY BE DELETED FROM THE
DISTRICT ONLY FOLLOWING A HEARING AFTER NOTICE TO THE OWNERS OF LAND IN
THE DISTRICT, ADOPTION OF A RESOLUTION OF INTENTION TO DO SO BY THE BOARD
AND APPROVAL BY THE OWNERS OF LAND IN THE DISTRICT PURSUANT TO SECTION

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House Amendments to H.B. 2999

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48-7041, SUBSECTION C. DELETED AREAS REMAIN SUBJECT TO THE LEVY FOR DEBT
SERVICE ON ANY BONDS ISSUED BEFORE THE DATE OF DELETION.

B. AFTER FORMATION OF A DISTRICT, AN AREA MAY BE ADDED TO THE
DISTRICT ON APPROVAL BY THE BOARD FOLLOWING RECEIPT OF A PETITION FOR
ADDITION SIGNED BY THE FEE-TITLE OWNERS OF ALL OF THE REAL PROPERTY IN THE
PROPOSED ADDITION AREA. THE PETITION MUST INCLUDE A WAIVER OF ANY
REQUIREMENT FOR A SEPARATE RESOLUTION OF INTENTION BY THE BOARD AND A
WAIVER OF ANY REQUIREMENT OF POSTING, PUBLICATION, MAILING, NOTICE,
HEARING AND ELECTION AS TO THAT ADDITION TO THE DISTRICT.

C. FOLLOWING A HEARING ON NOTICE TO OWNERS OF LAND IN THE DISTRICT
GIVEN IN THE MANNER PRESCRIBED FOR THE DELETION OF AN AREA FROM THE
DISTRICT, THE BOARD MAY AMEND THE GENERAL PLAN IN ANY MANNER THAT IT
DETERMINES WILL NOT SUBSTANTIALLY REDUCE THE BENEFITS TO BE RECEIVED BY
ANY LAND IN THE DISTRICT FROM THE PUBLIC INFRASTRUCTURE ON COMPLETION OF
THE WORK TO BE PERFORMED UNDER THE GENERAL PLAN.

48-7047. Other districts or improvements

A. THE FORMATION OF A DISTRICT UNDER THIS CHAPTER DOES NOT PREVENT
THE SUBSEQUENT ESTABLISHMENT OF SIMILAR DISTRICTS OR THE IMPROVEMENT OR
ASSESSMENT OF LAND IN THE DISTRICT BY THE MUNICIPALITY OR COUNTY PURSUANT
TO, CHAPTER 4, ARTICLE 2 OF THIS STATE OR THE EXERCISE BY THE MUNICIPALITY
OR COUNTY OF ANY OF ITS POWERS ON THE SAME BASIS AS ON ALL OTHER LAND IN
ITS CORPORATE BOUNDARIES.

B. NOTWITHSTANDING SUBSECTION A OF THIS SECTION, A DISTRICT MAY NOT
BE FORMED IF ANY PORTION OF THE LAND TO BE INCLUDED WITHIN THE DISTRICT IS
ALREADY INCLUDED WITHIN THE BOUNDARIES OF A COMMUNITY FACILITIES DISTRICT
OR REVITALIZATION DISTRICT IF THE COMMUNITY FACILITIES DISTRICT OR
REVITALIZATION DISTRICT HAS DEBT OUTSTANDING THAT IS SECURED BY AD VALOREM
TAXES OR ASSESSMENTS.

48-7048. Perpetu ccession: dissolution of district

A. THE DISTRICT HAS PERPETUAL SUCCESSION, EXCEPT THAT THE DISTRICT
MAY BE DISSOLVED AS PROVIDED IN THIS SECTION AND, IF THE DISTRICT DOES NOT
HAVE ANY BONDS OR OTHER OBLIGATIONS OUTSTANDING, SHALL BE DISSOLVED TEN
YEARS AFTER THE DATE OF FORMATION UNLESS THE AUTHORITY BY RESOLUTION
EXTENDS THE DISTRICT BY AN ADDITIONAL PERIOD OF TEN YEARS.

B. THE BOARD SHALL ADOPT A RESOLUTION DISSOLVING THE DISTRICT IF
THE FOLLOWING CONDITIONS EXIST:

1. ALL OF THE REAL AND PERSONAL PROPERTY OWNED BY THE DISTRICT HAS
BEEN OR WILL BE CONVEYED TO A MUNICIPALITY OR A COUNTY.

2. EITHER THE DISTRICT HAS NO BONDS OR OBLIGATIONS OR A
MUNICIPALITY HAS ASSUMED ALL OF THE OBLIGATIONS OF THE DISTRICT.

3. THE AUTHORITY APPROVES THE DISSOLUTION ORDER ON RECEIPT OF A
DISSOLUTION PETITION EXECUTED BY THE FEE-TITLE OWNERS OF A MAJORITY OF THE
REAL PROPERTY IN THE DISTRICT.

C. ON SATISFACTION OF THE CONDITIONS PRESCRIBED BY SUBSECTION B OF
THIS SECTION, THE AUTHORITY SHALL APPROVE THE DISSOLUTION AND ISSUE A
DISSOLUTION ORDER. THE BOARD SHALL CAUSE THE DISSOLUTION ORDER TO BE
RECORDED IN THE OFFICE OF THE COUNTY RECORDER.

D. ALL PROPERTY IN THE DISTRICT, EXCEPT FEDERAL, STATE, COUNTY AND
MUNICIPAL PROPERTY, REMAINS SUBJECT TO THE LIEN FOR THE PAYMENT OF AD

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House Amendments to H.B. 2999

OANA NFP WHY FP

VALOREM TAXES LEVIED, AND ANY PROPERTY SUBJECT TO AN ASSESSMENT LIEN
REMAINS SUBJECT TO THE LIEN NOTWITHSTANDING DISSOLUTION OF THE DISTRICT.
THE DISTRICT MAY NOT BE DISSOLVED IF ANY GENERAL OBLIGATION BONDS, REVENUE
BONDS OR ASSESSMENT BONDS OF THE DISTRICT REMAIN OUTSTANDING UNLESS AN
AMOUNT OF MONEY SUFFICIENT, TOGETHER WITH INVESTMENT INCOME THEREON, TO
MAKE ALL PAYMENTS DUE ON THE BONDS EITHER AT MATURITY OR PRIOR REDEMPTION
HAS BEEN DEPOSITED WITH A TRUSTEE OR ESCROW AGENT AND PLEDGED TO THE
PAYMENT AND REDEMPTION OF THE BONDS. THE DISTRICT MAY CONTINUE TO OPERATE
AFTER DISSOLUTION ONLY AS NEEDED TO COLLECT MONIES AND MAKE PAYMENTS ON
ANY OUTSTANDING BONDS.

Sec. 4. Short title

This act may be cited as the "State Housing Affordability District
Act";
Amend title to conform

JEFF WENINGER

2999Weninger SE 1.docx
02/11/2026
1:35 PM

C: MR

130XDUCSX

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*corrected*

Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2999

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oH re F& OD OBO ON DO BP WH DH F CO

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2999
(Reference to proposed WENINGER s/e amendment dated 2/11/2026; 1:35 pm)

Page 12, after line 47 insert:

"Sec. 2. Section 11-495, Arizona Revised Statutes, is amended to
read:

11-495. Taxpayers' information fund

A. <A taxpayers' information fund is established in each county
treasury consisting of monies collected from the public records copy
surcharge imposed pursuant to section 11-496, the tax lien processing fee
imposed pursuant to section 42-18116, subsection C, fifteen dollars of each
judgment deed fee collected pursuant to section 42-18205, subsection A,
interest earned from the elderly assistance fund pursuant to. section
42-17401, the community facilities district special assessment fee imposed
pursuant to section 48-721, THE STATE HOUSING AFFORDABILITY DISTRICT
SPECIAL ASSESSMENT FEE IMPOSED PURSUANT TO SECTION 48-7023 and the fees
authorized for collecting municipal fire and emergency services fees in
certain areas of the county as prescribed in section 9-500.23.

B. The county treasurer shall administer the fund and spend monies
in the fund only to defray the cost of converting or upgrading an automated
public information system as follows:

1. Purchasing computer hardware and software.

2. Training employees to operate the system.

3. Maintaining the system, including purchasing equipment
maintenance agreements.

4. Updating the system hardware and software.

# of Verbals

Withdraw

Analysts Initials

Attachment 47
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ae 2 SO) ao oo ES DE o> EE CO 0G

House Amendments to H.B. 2999

5. In counties with a population of more than two million persons,
notifying property owners of the tax and ownership status of a taxpayer's
parcel prior to the taxpayer's parcel being sold at a deed sale and the tax
and ownership status of any parcels being sold at a deed sale that are
adjacent to a taxpayer's parcel, prior to the deed sale.

C. The county treasurer shall annually submit to the board of
supervisors the amount of anticipated revenues under this section. If the
projected revenues are considered to be insufficient to establish and
maintain the fund at an adequate level, the monies may accumulate until
sufficient monies are available in the fund.

Sec. 3. Section 11-496, Arizona Revised Statutes, is amended to
read:

11-496. Public records copy: proceeds of sale; agent duties;

surcharge: special district assessments: deposit

A. In addition to the fee prescribed by section 39-121.01,
subsection D, paragraph 1 or section 39-121.03, subsection A, the county
treasurer may impose a surcharge of not more than twenty-five per—tcent
PERCENT of the fee charged for furnishing a copy, printout or photograph.

B. A county treasurer who is designated as a registrar pursuant to
section 35-491 may impose a surcharge of not more than twenty-five per-cent
PERCENT of the average fee charged by commercial bank trust departments
during the previous calendar year for discharging registrar, transfer and
paying agent duties.

C. The county treasurer may impose and collect a fee for expenses
directly related to the collection of special assessments for a community
facilities district pursuant to section 48-721, A STATE HOUSING
AFFORDABILITY DISTRICT PURSUANT TO SECTION 48-7023 and a revitalization
district pursuant to section 48-6815 and for collecting municipal fire and
emergency services fees from owners of record in certain areas of the

county as prescribed in section 9-500.23.
House Amendments to H.B. 2999

1 D. The county treasurer shall deposit monies collected pursuant to
2 this section in the taxpayers' information fund established by section
3 11-495."

4 Renumber to conform

5 Page 25, line 34, strike "INFRASTRUCTURE FINANCE" insert "STATE HOUSING
6 AFFORDABILITY"

7 Page 26, line 15, strike "AN INFRASTRUCTURE FINANCE" insert "A STATE HOUSING
8 AFFORDABILITY"

9 Between lines 16 and 17, insert:

10 "10. “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE
11 AUTHORITY OR THE EXECUTIVE DIRECTOR’S DESIGNEE."

12 Renumber to conform

13 Between lines 27 and 28, insert:

14 "15. "MAXIMUM AUTHORIZED TAX RATE" MEANS THE MAXIMUM TAX RATE FOR AD
15 VALOREM TAXES PLEDGED TO SECURE GENERAL OBLIGATION BONDS APPROVED AT AN
16 ELECTION AUTHORIZING THE LEVY OF AD VALOREM TAXES AND THE ISSUANCE OF
17 GENERAL OBLIGATION BONDS AND INDICATED IN THE PETITION, PROVIDED THAT THE
18 MAXIMUM AUTHORIZED TAX RATE SHALL NOT EXCEED $10 PER $100 OF NET LIMITED
19 ASSESSED PROPERTY VALUATION OF PROPERTY WITHIN THE BOUNDARIES OF THE
20 OISTRICEs,"

21 Renumber to conform

22 Between lines 28 and 29, insert:

23 17. "NET PREMIUM" MEANS THE DIFFERENCE BETWEEN THE PAR AMOUNT OF THE
24 GENERAL OBLIGATION BOND ISSUE AND THE GENERAL OBLIGATION BOND ISSUE PRICE
25 THAT IS DETERMINED PURSUANT TO UNITED STATES DEPARTMENT OF THE , TREASURY
26 REGULATIONS.

27 Renumber to conform

28 Between lines 33 and 34, insert:

29 "19. “OWNER” MEANS THE PERSON OR ENTITY THAT, ON THE DAY THE ACTION,
30 ELECTION OR PROCEEDING IS BEGUN OR HELD, APPEARS TO BE THE FEE-TITLE OWNER
31 OF REAL PROPERTY AS SHOWN ON THE PROPERTY TAX ASSESSMENT ROLL."

32 Renumber to conform
House Amendments to H.B. 2999

Hb Page 26, line 41 strike the colon insert "ALL IMPROVEMENTS LISTED IN THIS
2 PARAGRAPH THAT WILL RESULT IN A BENEFICIAL USE PRINCIPALLY TO LAND WITHIN
3 THE GEOGRAPHICAL LIMITS OF THE DISTRICT AND MAY INCLUDE A DISTRICT'S SHARE
4 OF ANY IMPROVEMENTS LISTED IN THIS PARAGRAPH IF THE DISTRICT BOARD
5 DETERMINES SUCH SHARE IS PROPORTIONATE TO THE BENEFICIAL USE OF SUCH
6 IMPROVEMENTS TO LAND WITHIN THE GEOGRAPHICAL LIMITS OF THE DISTRICT,
7 IMPROVEMENTS WITHIN OR OUTSIDE THE GEOGRAPHICAL LIMITS OF THE DISTRICT,
8 NECESSARY OR INCIDENTAL WORK, INCLUDING LAND CLEARANCE AND ENVIRONMENTAL
9 REMEDIATION ACTIVITIES, WHETHER NEWLY CONSTRUCTED, RENOVATED OR EXISTING,

10 AND ALL NECESSARY OR DESIRABLE APPURTENANCES. FOR THE PURPOSES OF THIS
11 PARAGRAPH, ADOPTION BY THE DISTRICT BOARD OF A RESOLUTION OF INTENT
12 PURSUANT TO SECTION 48-7008 SHALL CONCLUSIVELY ESTABLISH THAT THE
13 IMPROVEMENTS OR, IF APPLICABLE, SHARE OF THE IMPROVEMENTS THAT ARE THE
14 SUBJECT OF THE RESOLUTION WILL RESULT IN A BENEFICIAL USE PRINCIPALLY TO
15 LAND WITHIN THE GEOGRAPHICAL LIMITS OF THE DISTRICT. PUBLIC INFRASTRUCTURE
16 IMPROVEMENTS ARE:"

17 Page 27, line 45, after "ISSUANCE" insert "AND COSTS OF ISSUANCE OF THE BONDS AND
18 UNDERWRITER AND PLACEMENT AGENT FEES"

19 Page 28, line 13, strike "AN INFRASTRUCTURE FINANCE" insert "A STATE HOUSING
20 AFFORDABILITY"

21 Line 17, after "PROPERTY" insert ", PROVIDED THAT ALL NONCONTIGUOUS PROPERTY
22 SHALL BE LOCATED IN THE SAME COUNTY AND SHALL LIE WITHIN FIVE MILES OF THE
23 BOUNDARY OF OTHER PROPERTY WITHIN THE DISTRICT, MEASURED IN A STRAIGHT LINE
24 BETWEEN SUCH PARCEL BOUNDARIES. IF ANY PORTION OF A DISTRICT IS LOCATED
25 WITHIN THE CORPORATE LIMITS OF A MUNICIPALITY, THE ENTIRE DISTRICT SHALL AT
26 ALL TIMES BE LOCATED WITHIN THE CORPORATE LIMITS OR WITHIN THE ADOPTED
27 PLANNING AREA OF THAT MUNICIPALITY, AS SUCH LIMITS OR PLANNING AREA MAY BE
28 AMENDED FROM TIME TO TIME"

29 Strike lines 22 through 27
30 Renumber to conform
31 Between lines 42 and 43, insert:

se On DD oO F&F WO LT KF

oO wn © © BY YW BW YW YW DY KD BB ee ee Be Be Be
re oD DOD N DOF FF WHF DOD wD DAN DOT BPW DH Ho

House Amendments to H.B. 2999

"8. A PRELIMINARY FINANCING PLAN THAT INCLUDES THE ANTICIPATED
SOURCES AND USES OF MONIES FOR THE PUBLIC INFRASTRUCTURE."

Renumber to conform
Page 28, line 43,after "9." insert "IF THE DISTRICT PROPOSES TO ISSUE ASSESSMENT

BONDS,"

Line 44, strike PROJECTIONS AS TO" insert "THE PROJECTED MARKET VALUE OF THE
REAL PROPERTY AND IMPROVEMENTS IN THE DISTRICT AFTER COMPLETION OF THE
PUBLIC INFRASTRUCTURE PROPOSED TO BE FINANCED WITH SUCH ASSESSMENT BONDS.

10. IF THE DISTRICT PROPOSES TO ISSUE GENERAL OBLIGATION BONDS, A
THIRD-PARTY MARKET STUDY THAT INCLUDES PROJECTIONS OF"

Line 45, strike "AND MARKET VALUE"

Line 46, strike "AND ASSESSMENT BONDS"

Line 47, after "“QUTSTANDING" insert "TOGETHER WITH INFORMATION DEMONSTRATING
THAT DEBT SERVICE ON SUCH BONDS CAN BE SUPPORTED WITHIN THE MAXIMUM
AUTHORIZED TAX RATE"

Page 29, line 7, after "ANY" insert "EXISTING AND APPLICABLE"

Line 8, strike ", IF ANY,"

Line 9, strike "PROPOSED DISTRICT OR TO THE PUBLIC"

Strike line 10 insert "DISTRICT AND A CERTIFICATION THAT THE FORMATION OF THE
DISTRICT WILL NOT VIOLATE ANY SUCH AGREEMENT."

Line 16, strike "ORGANIZATIONAL STRUCTURE" insert "LEGAL NAME"; strike "THAT"

Strike lines 17 and 18

Line 19, strike "THE LAND AREA" insert "HAVING FEE-TITLE OWNERSHIP OF ANY REAL
PROPERTY"

Line 41,strike "AUTHORITY SHALL NOTIFY THE PETITIONER AND THE"

Line 42, after "AFTER" insert "WRITTEN"

Line 43, strike "CORRECT" insert "SUBMIT CORRECTIONS OF"; after "IF THE"
insert "CORRECTIONS OF THE"; strike "CORRECTED" insert "SUBMITTED TO THE
AUTHORITY"

Line 44, after "NOTICE" insert "OR DO NOT CORRECT THE DEFICIENCIES"

Between lines 44 and 45, insert:
House Amendments to H.B. 2999

1 F. FOR PURPOSES OF THIS CHAPTER, ALL CERTIFICATIONS, DETERMINATIONS,
2 APPROVALS, FINDINGS AND ACTIONS REQUIRED TO BE MADE BY THE AUTHORITY SHALL
3 BE MADE BY THE EXECUTIVE DIRECTOR. NOTWITHSTANDING ANY OTHER LAW, NO
4 ACTION, APPROVAL, RESOLUTION OR VOTE OF THE BOARD OF DIRECTORS OF THE

5 AUTHORITY IS REQUIRED FOR ANY CERTIFICATION, DETERMINATION OR ACTION TAKEN

6 BY THE EXECUTIVE DIRECTOR PURSUANT TO THIS CHAPTER. ANY ACTION TAKEN BY

7 THE EXECUTIVE DIRECTOR PURSUANT TO THIS CHAPTER IS DEEMED AN ACTION OF THE

8 AUTHORITY.

9 G. FEES AND OTHER CHARGES THAT ARE ASSESSED BY THE AUTHORITY IN
10 CONNECTION WITH THE SUBMISSION AND CONSIDERATION OF AN APPLICATION AND
11 PETITION TO FORM A DISTRICT SHALL NOT EXCEED $15,000 FOR EACH PETITION. IF
12 A PETITION IS DENIED BY THE AUTHORITY, THE AUTHORITY MAY NOT ASSESS A FEE
13 OR OTHER CHARGE IN CONNECTION WITH THE SUBMISSION AND CONSIDERATION OF A
14 REVISED PETITION THAT IS SUBMITTED WITHIN ONE YEAR AFTER THE DENIAL.

15 Page 30, strike line 3, insert:

16 "1. WHETHER ANY APPRAISAL OR THIRD-PARTY MARKET STUDY PROVIDED IN
17 CONNECTION WITH THE PETITION IS COMPLETE."

18 Line 4, strike “ENGINEERING SUFFICIENCY" insert “WHETHER THE DESCRIPTION";
19 after "INFRASTRUCTURE" insert "IN THE GENERAL PLAN APPEARS COMPLETE ON ITS
20 FACE AND DOES NOT CONTAIN OBVIOUS ERRORS, WITHOUT ANY INDEPENDENT
21 ENGINEERING INVESTIGATION, ANALYSIS OR VERIFICATION"

22 Strike line 5, insert:

23 "3. WHETHER THE PRELIMINARY FINANCING PLAN INCLUDES THE ANTICIPATED
24 SOURCES AND USES OF MONIES FOR THE PUBLIC INFRASTRUCTURE."

25 Strike line 6

26 Renumber to conform

27 Line 7, strike "PROPOSED"; after "IS" strike remainder of line

28 Line 8, strike "INTEREST OF THIS STATE" insert “REASONABLY EXPECTED TO HAVE

29 THE FINANCIAL ABILITY TO DISCHARGE ITS PROPOSED INDEBTEDNESS WITHIN THE
30 MAXIMUM AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS
31 APPLICABLE"

32 Line 9, after "ANY" insert "EXISTING AND"
ifn

House Amendments to H.B. 2999

1 Page 30, line 10, strike "GENERAL PLAN OR COMPREHENSIVE PLAN OR ANY EXISTING"
2 Line 11, strike "RELATING"; insert "OR OTHER AGREEMENT WITH THE MUNICIPALITY
3 OR THE COUNTY THAT RELATES"; after "TO" insert "THE"; after "LAND" insert
4 "INCLUDED"; after "THE" insert “BOUNDARIES OF THE"; after "DISTRICT" insert
5 "THAT WAS SUBMITTED TO THE AUTHORITY IN CONNECTION WITH THE PETITION"

6 Line 22, after the period strike remainder of line

7 Line 23, strike "FEASIBILITY FINDINGS THAT ARE REQUIRED BY THE PETITION AND,"
8 Line 24, strike "THOSE FINDINGS, THE AUTHORITY DETERMINED THAT" insert "THE
9 INFORMATION SUBMITTED IN CONNECTION WITH THE PETITION, INCLUDING ANY
10 APPRAISAL OR THIRD-PARTY MARKET STUDY,"

11 Line 25, after "DISCHARGE" strike "THE" insert "ITS"

12 Line 26, strike "ON A REASONABLE BASIS" insert "WITHIN THE MAXIMUM AUTHORIZED
13 TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS APPLICABLE"

14 Line 37, strike "ARE" insert "WILL BE"

15 Page 31, line 15, strike "REJECT" insert "DENY"; strike "IF" insert “UPON A

16 WRITTEN FINDING OF ONE OF THE FOLLOWING"

17 Line 17, strike "FEASIBILITY" insert "FINANCIAL"; after "INFORMATION" insert
18 “SUBMITTED IN CONNECTION WITH THE PETITION, INCLUDING ANY APPRAISAL OR
19 THIRD-PARTY MARKET STUDY,"

20 Line 19, strike "THE" insert "ITS"; strike "ON A REASONABLE BASIS" insert
21 "WITHIN THE MAXIMUM AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT
22 AMOUNT, AS APPLICABLE"

23 Line 22, strike "CORRECT" insert "SUBMIT PROPOSED CORRECTIONS OF"
24 Line 27, after the period insert "SUCH ACTION WILL NOT CONSTITUTE A DENIAL OF

25 THE PETITION AND"
26 Line 38, strike "FILED" insert "RECORDED"; strike "CLERK" insert “COUNTRY

27 RECORDER OF THE COUNTY IN WHICH THE DISTRICT IS LOCATED"

28 Page 32, between lines 18 and 19, insert:

29 K. AFTER THE FORMATION ORDER IS ISSUED, THE OWNERS OF AT LEAST FIFTY
30 PERCENT OF THE LAND IN THE DISTRICT MAY PETITION THE AUTHORITY TO AMEND THE
31 FORMATION ORDER TO MODIFY THE POWERS OR FINANCIAL PARAMETERS OF THE
32 DISTRICT, INCLUDING ANY MAXIMUM AUTHORIZED TAX RATE, MAXIMUM AUTHORIZED

-7-
House Amendments to H.B. 2999

1 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS, MAXIMUM AGGREGATE
2 ASSESSMENT AMOUNT OR MAXIMUM OPERATIONS AND MAINTENANCE TAX RATE. ANY SUCH
3 PETITION FOR AMENDMENT SHALL:

4 1. DESCRIBE THE PROPOSED AMENDMENTS TO THE FORMATION ORDER AND
5 GENERAL PLAN.

6 2. INCLUDE UPDATED FINANCIAL INFORMATION, INCLUDING AN UPDATED
7 PRELIMINARY FINANCING PLAN, SUFFICIENT TO ALLOW THE AUTHORITY TO DETERMINE
8 WHETHER THE DISTRICT IS REASONABLY EXPECTED TO HAVE THE FINANCIAL ABILITY
9 TO DISCHARGE ITS PROPOSED INDEBTEDNESS WITHIN THE REVISED MAXIMUM
10 AUTHORIZED TAX RATE AND MAXIMUM AGGREGATE ASSESSMENT AMOUNT, AS APPLICABLE.
il 3. DEMONSTRATE THAT THE PROPOSED AMENDMENTS DO NOT VIOLATE ANY
12 APPLICABLE STATUTORY ELIGIBILITY OR BOUNDARY REQUIREMENTS OR ANY
13 DEVELOPMENT AGREEMENT OR OTHER AGREEMENT WITH THE MUNICIPALITY OR COUNTY
14 RELATING TO THE LAND WITHIN THE DISTRICT.

15 L. THE AUTHORITY SHALL REVIEW AND ACT ON A PETITION FOR AMENDMENT
16 UNDER THE STANDARDS AND WITHIN THE TIME PERIODS PRESCRIBED IN SUBSECTIONS A
17 THROUGH E OF THIS SECTION, AND, IF APPROVED, SHALL ISSUE AND CAUSE TO BE
18 RECORDED AN AMENDED FORMATION ORDER REFLECTING THE APPROVED CHANGES.

19 M. ANY PETITION TO AMEND THE FORMATION ORDER THAT INCREASES THE
20 MAXIMUM AUTHORIZED TAX RATE OR MAXIMUM AGGREGATE ASSESSMENT AMOUNT SHALL BE
21 SIGNED BY ALL OWNERS OF ALL REAL PROPERTY IN THE DISTRICT.

22 N. THE AUTHORITY’S ISSUANCE OF A FORMATION ORDER PURSUANT TO THIS
23 CHAPTER IS A GOVERNMENTAL DETERMINATION OF STATEWIDE FINANCIAL COMPLIANCE

24 AND DOES NOT CONSTITUTE ZONING, PLANNING OR LAND-USE APPROVAL.
25 Page 32, line 25, after the period insert "SUBJECT TO SUBSECTION J OF THIS

26 SECTION"
aN | Line 27, after the period insert "A DIRECTOR WILL RESIGN FROM THE BOARD OF

28 DIRECTORS IF AT ANY TIME DURING SUCH DIRECTOR’S TERM THE DIRECTOR IS NO
29 LONGER AN OWNER OF REAL PROPERTY WITHIN THE DISTRICT OR, IF SUCH DIRECTOR
30 WAS DESIGNATED OR APPOINTED BY AN OWNER OF REAL PROPERTY WITHIN THE
31 DISTRICT, SUCH OWNER OF REAL PROPERTY WITHIN THE DISTRICT IS NO LONGER AN

-8-

House Amendments to H.B. 2999

OWNER OF REAL PROPERTY WITHIN THE DISTRICT. SUCH DIRECTOR’S VACANCY WILL
BE FILLED PURSUANT TO SUBSECTION H OF THIS SECTION."
Page 33, line 10, strike "FINANCING" insert "GENERAL"
Line 28, strike the first and second "AUTHORITY" insert "REMAINING DIRECTORS"

Between lines 35 and 36, insert:

ese ON DTD TO FF WO MY

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
3

"J. IF A VACANCY OCCURS ON THE BOARD BECAUSE OF DEATH, RESIGNATION OR
INABILITY OF THE DIRECTOR TO DISCHARGE THE DUTIES OF DIRECTOR, AND THERE
ARE NO OWNERS OF REAL PROPERTY WITHIN THE DISTRICT OR INDIVIDUALS
DESIGNATED OR APPOINTED BY AN OWNER OF REAL PROPERTY WITHIN THE DISTRICT,
WHO ARE WILLING TO FILL SUCH VACANCY, THE AUTHORITY SHALL APPOINT A
DIRECTOR TO FILL THE VACANCY. THE DIRECTOR APPOINTED BY THE AUTHORITY IS
NOT REQUIRED TO BE A FEE-TITLE OWNER OF REAL PROPERTY WITHIN THE DISTRICT
OR AN INDIVIDUAL DESIGNATED OR APPOINTED BY A FEE-TITLE OWNER OF REAL
PROPERTY WITHIN THE DISTRICT. THE DIRECTOR APPOINTED BY THE AUTHORITY
SHALL HOLD OFFICE FOR THE REMAINDER OF THE UNEXPIRED TERM AND UNTIL THE
DIRECTOR’S SUCCESSOR IS ELECTED, UNLESS A FEE-TITLE OWNER OF REAL PROPERTY
WITHIN THE DISTRICT SUBMITS A WRITTEN REQUEST TO THE AUTHORITY AND THE
BOARD TO REPLACE THE DIRECTOR APPOINTED BY THE AUTHORITY. IN THAT EVENT,
THE AUTHORITY SHALL, AS SOON AS PRACTICABLE, APPOINT THAT FEE-TITLE OWNER
OF REAL PROPERTY WITHIN THE DISTRICT TO REPLACE THE DIRECTOR APPOINTED BY
THE AUTHORITY.

K. THE BOARD SHALL COMPLY WITH TITLE 38, CHAPTER 3, ARTICLE 3.1 AS A
SEPARATE POLITICAL SUBDIVISION."

Line 37, after "BE" insert "MAINTAINED BY THE CLERK AND"
Page 34, line 25, after "LOANS" insert ", ADVANCES OR OTHER OBLIGATIONS"; after

"PURPOSE" insert ", INCLUDING TO PROVIDE FOR THE PRESENT FINANCING OF COSTS
TO BE REIMBURSED FROM FUTURE DISTRICT REVENUES OR REIMBURSEMENTS RELATED TO
PUBLIC INFRASTRUCTURE"

Line 31, after "PURPOSES" insert ", AND TO RECOGNIZE, ASSIGN, CONFIRM OR

CONSENT TO THE ASSIGNMENT BY SUCH LANDOWNERS OF THEIR RIGHTS TO RECEIVE ANY
REIMBURSEMENTS OR PAYMENTS FROM THE DISTRICT FOR PUBLIC INFRASTRUCTURE

-9-

House Amendments to H.B. 2999

1 COSTS, INCLUDING TO OR IN FAVOR OF LENDERS, TRUSTEES OR OTHER FINANCING
2 PARTIES"

3 Page 35, line 38, strike "approval" insert "review by authority"

4 Page 36, strike lines 22 and 23

5 Renumber to conform

6 Between lines 26 and 27, insert:

7 "2. IF THE PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED OR ACQUIRED IS
8 PROPOSED TO BE FINANCED WITH THE PROCEEDS OF GENERAL OBLIGATION BONDS, AN
9 APPRAISAL INDICATING THE PROJECTED MARKET VALUE OF THE REAL PROPERTY AND
10 IMPROVEMENTS IN THE DISTRICT AFTER THE PUBLIC INFRASTRUCTURE TO BE
11 CONSTRUCTED OR ACQUIRED BY THE DISTRICT WITH THE PROCEEDS OF SUCH BONDS IS
12 COMPLETED PLUS THE VALUE OF THE PUBLIC INFRASTRUCTURE OWNED BY THE DISTRICT
13 AND TO BE CONSTRUCTED OR ACQUIRED BY THE DISTRICT WITH THE PROCEEDS OF SUCH
14 BONDS."

15 Line 27, strike "BONDS ARE" insert "PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED OR
16 ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF"; after "A" insert
es "THIRD-PARTY MARKET STUDY THAT INCLUDES PROJECTIONS OF THE LIMITED PROPERTY
18 VALUE OF REAL PROPERTY IN THE DISTRICT FOR EACH YEAR IN WHICH GENERAL
19 OBLIGATION BONDS ARE PROPOSED TO BE OUTSTANDING, TOGETHER WITH A"

20 Line 28, after "THE" insert "GENERAL OBLIGATION"

21 Between lines 29 and 30, insert:

22 "4, IF THE PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED OR ACQUIRED IS
23 PROPOSED TO BE FINANCED WITH THE PROCEEDS OF ASSESSMENT BONDS, AN APPRAISAL
24 INDICATING THE AGGREGATE AS-IS MARKET VALUE OF REAL PROPERTY IN THE
25 DISTRICT AND THE PROJECTED MARKET VALUE OF THE REAL PROPERTY AND
26 IMPROVEMENTS IN THE DISTRICT AFTER COMPLETION OF THE PUBLIC INFRASTRUCTURE
27 PROPOSED TO BE FINANCED WITH SUCH ASSESSMENT BONDS."

28 Renumber to conform
29 Line 30, strike "BONDS ARE" insert "PUBLIC INFRASTRUCTURE TO BE CONSTRUCTED OR

30 ACQUIRED IS PROPOSED TO BE FINANCED WITH THE PROCEEDS OF"
31 Line 32, after "THE" insert "ASSESSMENT"

-10-
House Amendments to H.B. 2999

1 Page 36, line 35, after "OUTSTANDING" insert “AGGREGATE”; strike "DISTRICT"
2 insert "ALL"; after "BONDS" insert "OF THE DISTRICT"

3 Line 38, strike ", THE DISTRICT'S FINANCIAL ADVISOR"

4 Line 41, strike "VALUATION" insert "MARKET VALUE"

5 Strike lines 42 through 44

6 Renumber to conform

7 Line 46, strike ", OR BOTH,"; strike "THE"

8 Strike line 47

9 Line 48, strike "ANY, AND"; strike "AGREEMENTS RELATING" insert "AGREEMENT OR

10 OTHER AGREEMENT WITH THE MUNICIPALITY OR THE COUNTY THAT RELATES"

11 Line 49, strike "SUBJECT"; after "LAND" insert “INCLUDED WITHIN THE BOUNDARIES
12 OF THE DISTRICT THAT WAS SUBMITTED TO THE AUTHORITY IN CONNECTION WITH THE
13 PETITION"

14 Page 37, line 9, strike "NOTIFY" insert "PROVIDE WRITTEN NOTICE TO"

15 Line 15, after "CHAPTER" insert ", WHICH WRITTEN NOTICE SHALL IDENTIFY ANY
16 DEFICIENCIES"

17 Line 24, strike "Debt" insert "General obligation bonds debt"
18 Line 25, after "OF" insert “GENERAL OBLIGATION"

19 Line 26, strike "FULL FAITH AND CREDIT" insert "AD VALOREM TAXES"; strike "A"

20 insert "THE"

21 Line 27, strike "ESTIMATED" insert "PROJECTED"

22 Line 29, after "INFRASTRUCTURE" strike "OF" insert "TO BE CONSTRUCTED OR

23 ACQUIRED BY"; after "DISTRICT" insert "WITH THE PROCEEDS OF SUCH GENERAL

24 OBLIGATION BONDS"

25 Line 30, strike "OR" insert "BY THE DISTRICT AND"; after "BE" insert

26 “CONSTRUCTED OR"

a7 Line 31, strike "THE" insert "SUCH GENERAL OBLIGATION"

28 Page 38, line 5, strike "TWENTY-FIVE" insert "THIRTY"

29 Line 10, after "DISTRICT" insert "DISTRICT, THE TERM OF WHICH MAY NOT EXCEED

30 THIRTY YEARS"

31 Line 14, after the period, insert "AD VALOREM TAXES LEVIED TO PAY GENERAL

32 OBLIGATION BONDS OF A DISTRICT ARE LIMITED TAXES SUBJECT TO THE MAXIMUM
“fi
mo ONY DO Fe CO PO KF

OB Ww wow me MO YW MY YW WH YW YH DH LDH KB Bee ee Be ee Ee BE
nF Oo S&S ON DOF FF DW YH F DOD BD DON DD BP WO DH HK OO

House Amendments to H.B. 2999

AUTHORIZED TAX RATE APPROVED AT ELECTION AND DO NOT CONSTITUTE UNLIMITED AD
VALOREM TAXES."
Page 38, line 40, after "ALL" insert "GENERAL OBLIGATION"
Line 44, after the second "THE" insert "GENERAL OBLIGATION"
Page 39, strike "TWENTY-FIVE" insert "THIRTY"
Page 40, line 23, after "DISTRICT" insert ", THE TERM OF WHICH MAY NOT EXCEED
THIRTY YEARS"
Line 31, line 27, strike "TWENTY-FIVE" insert "THIRTY"
Strike lines 32 through 34
Reletter to conform
Line 49, after "MUNICIPALITY" insert ", THE COUNTY"
Page 41, line 2, after "MUNICIPALITY" insert ", THE COUNTY"
Line 6, after "DISTRICT" insert ", THE TERM OF WHICH MAY NOT EXCEED THIRTY
YEARS"
Page 43, Between lines 5 and 6, insert:
"1. STATES THAT THE DISTRICT IS "STATE-CERTIFIED" TO INDICATE THAT
ITS FORMATION WAS APPROVED BY THE AUTHORITY."
Renumber to conform
Strike lines 7 through 10
Renumber to conform
Between lines 13 and 14, insert:
"1. STATES THAT THE DISTRICT IS "STATE-CERTIFIED" TO INDICATE THAT
ITS FORMATION WAS APPROVED BY THE AUTHORITY."
Renumber to conform
Strike lines 15 through 19

Renumber to conform
Line 22, after the second "ELECTION" insert "AND NOT A GENERAL ELECTION AND IS

NOT SUBJECT TO THE REQUIREMENTS APPLICABLE TO ELECTIONS FOR GENERAL
GOVERNMENTAL BODIES, INCLUDING ONE-PERSON-ONE-VOTE PRINCIPLES. AN ELECTION
UNDER THIS ARTICLE SHALL BE"
Line 38, strike "TWENTY-FIVE" insert "THIRTY"
Page 44, line 10, after "DISTRICT" insert "AND THEIR DESIGNATED REPRESENTATIVES"
7%.
House Amendments to H.B. 2999

1 Page 44, line 13, after the period insert "VOTING ELIGIBILITY IS BASED ON
2 OWNERSHIP OF REAL PROPERTY SUBJECT TO TAXATION OR ASSESSMENT BY THE
3 DISTRICT."

4 Line 27, strike "AND" insert a comma

5 Line 28, after "NO"" insert "AND FOR AN ASSESSMENT LEVY ELECTION, “ASSESSMENT,
6 YES” AND “ASSESSMENT, NO""

7 Line 37, after the period insert "ANY CHALLENGE TO THE CONDUCT OR OUTCOME OF
8 AN ELECTION HELD PURSUANT TO THIS CHAPTER MUST BE COMMENCED WITHIN THIRTY
9 DAYS AFTER THE CANVASS OF THE ELECTION AND SHALL BE LIMITED TO WHETHER THE

10 DISTRICT COMPLIED WITH THE PROCEDURAL REQUIREMENTS OF THIS CHAPTER."

11 Page 45, between lines 2 and 3, insert:

12. "H. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, IF THE
13 DISTRICT RECEIVES A CONSENT TO WAIVER SIGNED BY OWNERS OF ALL OF THE LAND
14 IN THE DISTRICT, THE DISTRICT MAY WAIVE ANY OR ALL REQUIREMENTS OF POSTING,
15 PUBLICATION, MAILING, NOTICE, HEARING AND LANDOWNER ELECTION OTHERWISE
16 REQUIRED IN CONNECTION WITH ASSESSMENTS OR ASSESSMENT BONDS. ON RECEIPT OF
17 SUCH CONSENT TO WAIVER, THE DISTRICT MAY LEVY THE ASSESSMENT AND ISSUE THE
18 ASSESSMENT BONDS WITHOUT BEING REQUIRED TO COMPLY WITH THE PROVISIONS OF
19 THIS ARTICLE FOR POSTING, PUBLICATION, MAILING, NOTICE, HEARING OR
20 LANDOWNER ELECTION."

21 Line 14, after "SHOWING" insert " , ON AN AGGREGATE AND SUMMARY BASIS,"

22 Page 49, line 5, strike "FEE-TITLE"
23 Line 9, after the period, insert “THE ADDITION OF PROPERTY TO A DISTRICT

24 PURSUANT TO THIS SECTION DOES NOT CONSTITUTE THE FORMATION OF A NEW
25 DISTRICT AND DOES NOT REQUIRE COMPLIANCE WITH THE PROCEDURES APPLICABLE TO
26 INITIAL DISTRICT FORMATION OR TO AMENDING THE FORMATION ORDER PURSUANT TO
27 SECTION 48-7041, SUBSECTION K."

28 Between lines 15 and 16, insert:

29 "D. THE AUTHORITY SHALL APPROVE THE ADDITION OR DELETION OF PROPERTY
30 UPON DETERMINING THAT THE REQUIREMENTS OF THIS SECTION HAVE BEEN SATISFIED
31 AND WILL AMEND THE FORMATION ORDER ACCORDINGLY."

-13-
House Amendments to H.B. 2999

1 Page 49, line 39, strike "EITHER" insert "THE AUTHORITY VERIFIES THAT"; strike
2 "OR A"

3 Strike line 40, insert "OUTSTANDING."

4 Line 42, strike "FEE-TITLE"

5 Page 50, between lines 10 and 11, insert:

6 "Sec. 5. Legislative findings; purpose

y A. The legislature finds and declares that:

8 1. The provision of public infrastructure in advance of development
9

is essential to housing affordability, economic development and orderly

10 growth.

dial 2. State housing affordability districts provide a_ uniform,
12 statewide mechanism for financing public infrastructure in a manner that:
13 (a) Protects taxpayers through limited tax rates and _ debt
14 limitations.

15 (b) Ensures transparency and public accountability.

16 (c) Facilitates early delivery of public infrastructure at lower
17 cost;

18 3. The Arizona finance authority is the appropriate statewide
19 certification authority to ensure uniform financial, engineering, and
20 statutory compliance for such districts.

21 4. The certification and oversight functions provided in this
22 chapter constitute governmental functions serving valid public purposes.

23 B. The legislature further finds and declares that:

24 1. State housing affordability districts exercise limited, special-
25 purpose governmental powers relating solely to the financing, construction,
26 operation and maintenance of public infrastructure.

27 2. The financial obligations of a district, including ad valorem
28 taxes, assessments, and liens, are borne directly and proportionally by
29 real property within the district.

30 3. Because the powers and financial burdens of a_ district
3 disproportionately affect real property owners, it is reasonable and

-14-

House Amendments to H.B. 2999

1 constitutionally permissible to allocate voting power in district elections
2 based on land ownership and acreage.

3 4. Elections conducted pursuant to this chapter are_ fiscal
4 determinations relating to property-based obligations and are not general
5 political elections."

6 Renumber to conform

7 Amend title to conform

JEFF WENINGER

2999WENINGER.1.docx
02/16/2026

7:37 PM

H: PB/1s/ra

-15-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

Commerce

ROLL CALL VOTE

BILL NO. __HB 2999

DATE February 17, 2026

MOTION: ___ DPA S/E_

PASS

AYE NAY PRESENT | ABSENT

Aguilar

Blackman

w

Carter N

NNN

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

VJEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

VA

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Vv

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| | |

Be
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ATTACHMENT. U&%

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB4001: alternative nicotine products; regulation.
Sponsor: Representative Weninger, LD 13
Committee on Commerce

Overview
Establishes licensure requirements for alternative nicotine products.

History

The U.S. Food and Drug Administration (FDA) is responsible for protecting public health by
ensuring the safety, efficacy and security of human drugs, biological products, medical
devices and food supply. Additionally, the FDA maintains specific authority to oversee the
distribution, sale and consumption of tobacco and nicotine products (21 U.S.C. § 387a).

The Federal Food, Drug, and Cosmetic Act, under the FDA, establishes a national minimum
age of 21 years old for the purchase of any tobacco product (21 U.S.C. § 387f). Statute clarifies
that a tobacco product refers to any product made or derived from tobacco, or containing
nicotine from any source, that is intended for human consumption, including any component,
part or accessory of tobacco product (21 U.S.C. § 321).

The FDA also establishes Good Manufacturing Practice (GMP) requirements to ensure the
design, manufacture, packing and storage of tobacco and nicotine products meet quality and
safety standards to protect public health (21 U.S.C. § 387f).

The Prevent All Cigarette Trafficking (PACT) act mandates that any person shipping tobacco
or nicotine products into Arizona for profit must register their business with the U.S.
Attorney General and the Arizona Department of Revenue and submit monthly invoices of
the products delivered (15 U.S.C. § 376).

The Department of Liquor Licenses and Control (DLLC) governs the sale and distribution of
spirituous liquor and regulated goods within Arizona. The DLLC maintains the authority to
grant or deny licenses, hear appeals and establish necessary regulations for industry conduct.
The Director (Director) of the DLLC is responsible for adopting administrative rules,
ensuring licensee compliance, overseeing a specialized investigations unit and initiating
regulatory actions to ensure public safety and the integrity of the marketplace. Additionally,
the Director is required to: 1) partner with the Department of Public Safety (DPS) and local
law enforcement to prevent underage alcohol consumption by individuals under 21 years old;
and 2) establish a separate investigations unit responsible for investigating licensees alleged
to have sold or distributed spirituous liquor in any form to individuals under 21 years old
(A.R.S. § 4-112).

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

Initials PB HB 4001
2/4/2026 Page 1 Commerce

Attachment y4
Statute specifies that knowingly selling or furnishing tobacco or vapor products to an
individual under 21 years old is classified as a petty offense. Additionally, any person under
the age of 21 years old who purchases or possesses these products is also guilty of a petty
offense. Tobacco product applies to cigars; cigarettes or cigarette papers; and smoking and
chewing tobacco. Vapor product applies to noncombustible, tobacco-derived products using a
heating element or battery to heat a liquid nicotine solution (A.R.S. § 13-3622).

Provisions
Director Responsibilities
1. Requires the Director to partner with DPS and local law enforcement to enforce laws
against the sale or possession of alternative nicotine products by persons under the age
of 21. (Sec. 3)

2. Adds that DLLC's investigations unit must investigate licensees alleged to have sold or
distributed alternative nicotine products to persons under the age of 21. (Sec. 3)

3. Authorizes the Director to:

a. remove contaminated alternative nicotine products from the marketplace;

b. accept and expend private grants for conducting education programs on the
repercussions of the sale or possession of alternative nicotine products by persons
under the age of 21; and

c. visit during occupied hours and inspect the premises of an alternative nicotine
products licensee. (Sec. 3, 4)

Alternative Nicotine Products Licensure
4. Prohibits an individual from selling alternative nicotine products in Arizona without a
license. (Sec. 7)

5. Requires a person desiring a license to sell alternative nicotine products in Arizona to
apply to DLLC and outlines the information an applicant must provide. (Sec. 7)

6. Allows the Director to determine the fee for an alternative nicotine product retail license.
(Sec.7)

7. Specifies the license is valid for one year and authorizes the sale of alternative nicotine
products only at the location provided on the license. (Sec.7)

8. Declares a license to sell alternative nicotine products is not transferrable and is
prohibited from being leased or subleased. (Sec. 7)

9. Requires the licensee to report any change in business ownership of the licensee within
30 days of the ownership change. (Sec. 7)

Manufacture Alternative Nicotine Products Licensure
10. Prohibits an individual from manufacturing alternative nicotine products in Arizona
without a license. (Sec. 7)

11. Requires a person desiring a license to manufacture alternative nicotine products in
Arizona to apply to DLLC and outlines the information an applicant must provide. (Sec.
7)

12. Allows the Director to determine the fee for an alternative nicotine product
manufacturing license. (Sec. 7)

13. Specifies the license is valid for one year. (Sec. 7)

Initials PB HB 4001
2/4/2026 Page 2 Commerce
14,

15.

16.

Li.

18.

19.

20.

21.

22.

23.

24,

25.

26.

Requires the licensee to pay DLLC an annual fee, as determined by the Director, for each
stock keeping unit of each alternative nicotine product to be manufactured in Arizona.
(Sec. 7)

Declares a license to manufacture alternative nicotine products is not transferrable and
is prohibited from being leased or subleased. (Sec. 7)

Requires the licensee to report any change in ownership of the business of the licensee
within 30 days of the ownership change. (Sec. 7)

Alternative Nicotine Products Violations
Prohibits a licensee or their employee from selling alternative nicotine products to a
person under the age of 21. (Sec. 7)

Instructs the Director, upon notification of an alleged violation, to provide notice of the
alleged violation to the licensee. (Sec. 7)

Prescribes the penalties for a licensee who, after a hearing, is found to have committed a
violation. (Sec. 7)

Stipulates, for licensees ordered to attend an alternative nicotine products retailer
educational course, the persons who must attend the course. (Sec. 7)

Alternative Nicotine Products Requirements
Requires all alternative nicotine products manufactured and sold in Arizona to:
a. have received a written marketing order from the FDA; or
b. be processed and packaged within a U.S. based FDA registered facility or a certified
good manufacturing practices facility. (Sec. 7)

Requires all consumable material of an alternative nicotine product sold in Arizona to be
entirely manufactured and assembled in the U.S. by January 1, 2028. (Sec. 7)

Alternative Nicotine Products Marketing
Prohibits a licensee from marketing, advertising or selling alternative nicotine products
in containers that:

a. depicts cartoon character that mimics a character primarily aimed at entertaining;
b. mimics a trademark or includes a symbol aimed at minors;
c. includes the image or name of a celebrity; or
d. is meant to disguise the appearance of the alternative nicotine product. (Sec. 7)
Sale and Identification Requirements
Requires the licensee questioning whether an individual purchasing, attempting to

purchase or procuring an alternative nicotine product is under the age of 21 to:

a. demand and review the validity of the identification and confirm the photograph and
date of birth of the individual; and

b. scan the identification using an electronic scanning device. (Sec. 7)

Outlines the written instruments that constitute the only acceptable forms of
identification. (Sec. 7)

Miscellaneous
Defines alternative nicotine product as any noncombustible product that contains nicotine
and that is intended for human consumption, whether chewed, absorbed, dissolved,
ingested or consumed by any other means. (Sec. 2)

Initials PB HB 4001
2/4/2026 Page 3 Commerce
27. Excludes, as an alternative nicotine product, tobacco products or any product regulated
as a drug or device by the FDA. (Sec. 2)

28. Makes technical and conforming changes. (Sec. 1-6)

Initials PB HB 4001
2/4/2026 Page 4 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 4001

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 4001
(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.

CGREEN-STREKEOUT-FIF-BRACKETS] indicates new text removed from statute

or previously enacted session law.

[Green—strt+keout—inrtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.

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

<<Green—strtkevut—ir-carets>> indicates a section removed from the bill.

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

2 Section 1. Heading change
3 The title heading of title 4, Arizona Revised Statutes, is
4 changed from "ALCOHOLIC BEVERAGES" to "ALCOHOLIC BEVERAGES AND
5 ALTERNATIVE NICOTINE PRODUCTS".
6 Sec. 2. Section 4-101, Arizona Revised Statutes, is amended
7 to read:

8 4-101. Definitions

9 In this title, unless the context otherwise requires:

10 1. "Act of violence":

11 (a) Means an incident that consists of a riot, a fight, an
12 altercation or tumultuous conduct and that meets at least one of the
13 following criteria:

14 (i) Bodily injuries are sustained by any person and the
15 injuries would be obvious to a reasonable person.

16 (ii) Is of sufficient intensity as to require’ the
17 intervention of a peace officer to restore normal order.

18 (iii) A weapon is brandished, displayed or used.

19 (iv) A licensee or an employee or contractor of the licensee
20 fails to follow a clear and direct lawful order from a_ law

21 enforcement officer or a fire marshal.

22 (b) Does not include the use of nonlethal devices by a peace
23 officer.

24 2. "“Aggrieved party" means a person who resides at, owns or
25 leases property within a one-mile radius of premises proposed to be
26 licensed and who filed a written request with the department to
27 speak in favor of or opposition to the issuance of the license not

Adopted ’ # of Verbals

ile. Withdrawn

Not Offerec Analysts Initials

Attachment_____
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OnNOOHPWNMY Fe

later than sixty days after filing the application or fifteen days
after action by the local governing body, whichever is sooner.

3. "ALTERNATIVE NICOTINE PRODUCT":

(a) MEANS ANY NONCOMBUSTIBLE PRODUCT THAT CONTAINS NICOTINE
AND THAT IS INTENDED FOR HUMAN CONSUMPTION, WHETHER CHEWED,
ABSORBED, DISSOLVED, INGESTED [, INHALED] OR CONSUMED BY ANY OTHER
MEANS.

(b) DOES NOT INCLUDE TOBACCO PRODUCTS OR ANY PRODUCT
REGULATED AS A DRUG OR DEVICE BY THE UNITED STATES FOOD AND DRUG
ADMINISTRATION UNDER CHAPTER V OF THE FEDERAL FOOD, DRUG, AND
COSMETIC ACT.

Sv 4.) O“Beer":

(a) Means any beverage obtained by the alcoholic
fermentation, infusion or decoction of barley malt, hops, rice, bran
or other grain, glucose, sugar or molasses, or any combination of
them, and may include, as adjuncts in fermentation, honey, fruit,
fruit juice, fruit concentrate, herbs, spices and other’ food
materials.

(b) Includes beer aged in an empty wooden barrel previously
used to contain wine or distilled spirits and as such is not
considered a dilution or mixture of any other spirituous liquor.

4> 5. "Biometric identity verification device" means a
device authorized by the department that instantly verifies the
identity and age of a person by an electronic scan of a biometric of
the person, through a fingerprint, iris image, facial image or other
biometric characteristic, or any combination of these
characteristics, that references the person's identity and age
against any record described in section 4-241, subsection K, and
that meets all of the following conditions:

(a) The authenticity of the record was previously verified by
an electronic authentication process.

(b) The identity of and information about the record holder
was previously verified through either:

(i) A secondary, electronic authentication process or set of
processes using commercially available data, such as a_ public
records query or a knowledge-based authentication quiz.

(ii) Using a state or federal government system of records
for digital authentication.

(c) The authenticated record was securely linked to
biometrics contemporaneously collected from the verified record
holder and is stored in a centralized, highly secured, encrypted
biometric database.

Sy 6. "Board" means the state liquor board.

ty 7. “Bona fide guest" means:

(a) An individual who is personally familiar to the member,
who is personally sponsored by the member and whose presence as a
guest is in response to a specific and personal invitation.
House Amendments to H.B. 4001

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(b) In the case of a club that meets the criteria prescribed
in paragraph @- 9, subdivision (a) of this section, a current member
of the armed services of the United States who presents proper
military identification and any member of a recognized veterans'
organization of the United States and of any country allied with the
United States during current or past wars or through treaty
arrangements.

7> 8. “Broken package" means any container of spirituous
liquor on which the United States tax seal has been broken or
removed or from which the cap, cork or seal placed on the container
by the manufacturer has been removed.

6> 9. “Club" includes any of the following organizations
where the sale of spirituous liquor for consumption on the premises
is made only to members, spouses of members, families of members,
bona fide guests of members and guests at other events authorized in
this title:

(a) A post, chapter, camp or other local unit composed solely
of veterans and its duly recognized auxiliary that has been
chartered by the Congress of the United States for patriotic,
fraternal or benevolent purposes and that has, as the owner, lessee
or occupant, operated an establishment for that purpose in this
state.

(b) A chapter, aerie, parlor, lodge or other local unit of an
American national fraternal organization that has,’ as the owner,
lessee or occupant, operated an establishment for fraternal purposes
in this state. An American national fraternal organization as used
in this subdivision shall actively operate in at least thirty-six
states or have been in active continuous existence for at least
twenty years.

(c) A hall or building association of a local unit mentioned
in subdivisions (a) and (b) of this paragraph of which all of the
capital stock is owned by the local unit or the members and that
operates the clubroom facilities of the local unit.

(d) A golf club that has more than fifty bona fide members
and that owns, maintains or operates a bona fide golf links together
with a clubhouse.

(e) A.social club that has more than one hundred bona fide
members who are actual residents of the county in which it is
located, that owns, maintains or operates club quarters, that is
authorized and incorporated to operate as a nonprofit club under the
laws of this state, and that has been continuously incorporated and
operating for a period of at least one year. The club shall have
had, during this one-year period, a bona fide membership with
regular meetings conducted at least once each month, and the
membership shall be and shall have been actively engaged in carrying
out the objects of the club. The club's membership shall consist of
bona fide dues-paying members paying dues of at least $6 per year,
House Amendments to H.B. 4001

ANDO HP WD FE

payable monthly, quarterly or annually, which have been recorded by
the secretary of the club, and the members at the time of
application for a club license shall be in good standing having for
at least one full year paid dues. At least fifty-one percent of the
members shall have signified their intention to secure a social club
license by personally signing a petition, on a form prescribed by
the board, which shall also include the correct mailing address of
each signer. The petition shall not have been signed by a member at
a date earlier than one hundred eighty days before the filing of the
application. The club shall qualify for exemption from the payment
of state income taxes under title 43. It is the intent of this
subdivision that a license shall not be granted to a club that is,
or has been, primarily formed or activated to obtain a license to
sell liquor, but solely to a bona fide club, where the sale of
liquor is incidental to the main purposes of the club.

(f) An airline club operated by or for airlines that are
certificated by the United States government and that maintain or
operate club quarters located at airports with international status.

$> 10. "Company" or "association", when used in reference to
a corporation, includes successors or assigns.
Té> 11. "Control" means the power to direct or cause the

direction of the management and policies of an applicant or
licensee, whether through the ownership of voting securities or a
partnership interest, by agreement or otherwise. Control is
presumed to exist if a person has the direct or indirect ownership
of or power to vote ten percent or more of the outstanding voting
securities of the applicant or licensee or to control in any manner
the election of one or more of the directors of the applicant or
licensee. In the case of a partnership, control is presumed to mean
the general partner or a limited partner who holds ten percent or
more of the voting rights of the partnership. For the purposes of
determining the percentage of voting securities owned, controlled or
held by a person, there shall be aggregated with the voting
securities attributed to the person the voting securities of an
officer, partner, employee or agent of the person or a_ spouse,
parent or child of the person. Control is also presumed to exist if
a creditor of the applicant or licensee holds a beneficial interest
in ten percent or more of the liabilities of the licensee. The
presumptions in this paragraph regarding control are rebuttable.

TH #412. “Controlling person" means a person directly or
indirectly possessing control of an applicant or licensee.

te, 13. "Craft distiller" means a distiller in the United
States or in a territory or possession of the United States that
holds a license pursuant to section 4-205.10.

tTSy «#14. "Craft producer" means a licensed farm winery, a
licensed microbrewery or a licensed craft distiller.
House Amendments to H.B. 4001

OnNOOPWNH

T4+> #15. "Department" means the department of liquor licenses
and control.

ts> 16. "Director" means the director of the department of
liquor licenses and control.

tée> 17. “Distilled spirits" includes alcohol, brandy,
whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture
of any of them or of any of them with any vegetable or other
substance, alcohol bitters, bitters containing alcohol, fruits
preserved in ardent spirits, and any alcoholic mixture’ or
preparation, whether patented or otherwise, that may in sufficient
quantities produce intoxication.

b> 18. “Employee” means any person who performs any service
on licensed premises on a full-time, part-time or contract basis
with consent of the licensee, whether or not the person is
denominated an employee or independent contractor or
otherwise. Employee does not include a person who is exclusively on
the premises for musical or vocal performances, for repair or
maintenance of the premises or for the delivery of goods to the
licensee.

té> 19. "Farm winery" means a winery in the United States or
in a territory or possession of the United States that holds a
license pursuant to section 4-205.04.

t8- 20. “Government license" means a license to serve and
sell spirituous liquor on specified premises available only to a
state agency, state board, state commission, county, city, town,
community college or state university or the national guard or
Arizona coliseum and exposition center on application by the
governing body of the state agency, state board, state commission,
county, city, town, community college or state university or the
national guard or Arizona exposition and state fair board.

20> 21. “Legal drinking age" means twenty-one years of age
or older.

2@t> 22. “License” means a license or an interim retail
permit issued pursuant to this title.

22> 23. "Licensee" means a person who has been issued a

license or an interim retail permit pursuant to this title or a
special event licensee.

237 «424. “License fees" means fees collected for license
issuance, license application, license renewal, interim permit
issuance and license transfer between persons or locations.

24> 25. “Manager” means a natural person who meets the
standards required of licensees and who has authority to organize,
direct, carry on, control or otherwise operate a licensed business
on a temporary or full-time basis.

25> 26. “Menu food item" means a food item from a regular
menu, special menu or happy hour menu that is prepared by the
licensee or the licensee's employee.
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26- 27. “Microbrewery" means a brewery in the United States
or in a territory or possession of the United States that meets the
requirements of section 4-205.08.

27> «628. “Mixed cocktail":

(a) Means any drink combined at the premises of an authorized
licensee that contains a spirituous liquor and that is combined with
at least one other ingredient, which may include additional
spirituous liquors, fruit juice, vegetable juice, mixers, cream,
flavored syrup or other ingredients except water, and that when
combined contains more than one-half of one percent of alcohol by
volume.

(b) Does not include a drink sold in an_- original
manufacturer's packaging or any drink poured from an _ original
manufacturer's package without the addition of all of the cocktail's
other ingredients at the premises of the licensed bar, liquor store
or restaurant.

[29 "NICOTINE":

(a) MEANS THE CHEMICAL SUBSTANCE NAMED —_—3- (1-METHYL-2-
PYRROLIDINYL) PYRIDINE OR C(10)H(14)N(2).

(b) INCLUDES ANY SALT OR COMPLEX OF NICOTINE DERIVED FROM ANY
SOURCE. J

28> «[297] [30.] "Off-sale retailer" means any person that
operates a bona fide regularly established retail liquor store that
sells spirituous liquors, wines and beer and any established retail
store that sells commodities other than spirituous liquors and that
is engaged in the sale of spirituous liquors only in the original
unbroken package, to be taken away from the premises of the retailer
and to be consumed off the premises.

28- [367] [31.] "On-sale retailer" means any person
operating an establishment where spirituous liquors are sold in the
original container for consumption on or off the premises or in
individual portions for consumption on the premises.

30> «[31.] [32.] "Permanent occupancy" means the maximum
occupancy of the building or facility as set by the office of the
state fire marshal for the jurisdiction in which the building or
facility is located.

St- [S27] [33.] "Person" includes a partnership, limited
liability company, association, company or corporation, as well as a
natural person.

32> «O«[33y] «=4[34.] "Premises" or "licensed premises":

(a) Means the area from which the licensee is authorized to
sell, dispense or serve spirituous liquors under the provision of
the license.

(b) Includes a patio that is not contiguous to the remainder
of the premises or licensed premises if the patio is separated from
the remainder of the premises or licensed premises by a public or
private walkway or driveway not to exceed thirty feet, subject to

House Amendments to H.B. 4001

ONADOHP WHY FE

rules the director may adopt to establish criteria for noncontiguous
premises.

33> «O[S47] =[35.] "Registered alcohol delivery contractor":

(a) Means a person who delivers spirituous liquor to a
consumer on behalf of a bar, beer and wine bar, liquor store, beer
and wine store or restaurant.

(b) Does not include:

(i) A motor carrier as defined in section 28-5201.

(ii) An independent contractor, a subcontractor of an
independent contractor, an employee of an independent contractor or
an employee of a subcontractor as provided in section 4-203,
subsection J.

s4-)«[(357] «=6[36.] "Registered mail" includes certified mail.

35> «[S67] [37.] "Registered retail agent" means any person
who is authorized pursuant to section 4-222 to purchase spirituous
liquors for and on behalf of the person and other retail licensees.

36> «6«[377] =[38.] “Repeated acts of violence" means:

(a) For licensed premises with a permanent occupancy of two
hundred or fewer persons, two or more acts of violence occurring
within seven days or three or more acts of violence occurring within
thirty days.

(b) For licensed premises with a permanent occupancy of more
than two hundred but not more than four hundred persons, four or
more acts of violence within thirty days.

(c) For licensed premises with a permanent occupancy of more
than four hundred but not more than six hundred fifty persons, five
or more acts of violence within thirty days.

(d) For licensed premises with a permanent occupancy of more
than six hundred fifty but not more than one thousand fifty persons,
six or more acts of violence within thirty days.

(e) For licensed premises with a permanent occupancy of more
than one thousand fifty persons, seven or more acts of violence
within thirty days.

S7> «O[36e] «=[39.] "Sell" includes soliciting or receiving an
order for, keeping or exposing for sale, directly or indirectly
delivering for value, peddling, keeping with intent to sell and
trafficking in.

38>) «[3S7]) «=—(40.] 1 "Spirituous liquor" includes alcohol,
brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer,
any malt liquor or malt beverage, absinthe, a compound or mixture of
any of them or of any of them with any vegetable or other substance,
alcohol bitters, bitters containing alcohol, any liquid mixture or
preparation, whether patented or _ otherwise, that produces
intoxication, fruits preserved in ardent spirits, and beverages
containing more than one-half of one percent of alcohol by volume.

39- «6«[*#07] ([41.] "Tamperproof sealed" means designed to
prevent consumption without the removal of a tamperproof cap, seal,
House Amendments to H.B. 4001

OANA TNHPWNMY FE

cork or closure that has a device, mechanism or adhesive that
clearly shows whether a container has been opened.

407 «[+tr] [42.] "Vehicle" means any means of transportation
by land, water or air, and includes everything made use of in any
way for such transportation.

4i> «[42@r] [43.] "Vending machine" means a machine’ that
dispenses merchandise through the means of coin, token, credit card
or other nonpersonal means of accepting payment for merchandise
received.

42> «6[4#37] [44.] "Veteran" means a person who has served in
the United States air force, army, navy, marine corps or coast
guard, as an active nurse in the services of the American red cross,
in the army and navy nurse corps in time of war, or in = any
expedition of the armed forces of the United States, and who has
received a discharge other than dishonorable.

43> «o[#AR]) O45.) "Voting security" means any security
presently entitling the owner or holder of the security to vote for
the election of directors of an applicant or a licensee.

44> [457] [46.] "Wine" means the product obtained by the
fermentation of grapes, other agricultural products containing
natural or added sugar or cider or any such alcoholic beverage
fortified with grape brandy and containing not more than twenty-four
percent of alcohol by volume.

Sec. 3. Section 4-112, Arizona Revised Statutes, is amended
to read:

4-112. Powers and duties of board and director of
department of liquor licenses and control:
investigations; county and municipal
regulation; definition

A. The board shall:

1. Grant and deny applications in accordance with tte
provistons—of this title.

2. Adopt rules in order to carry out ttre-provisiorms—of this
section.

3. Hear appeals and hold hearings as provided in_ this
section.

B. Except as provided in subsection A of this section, the
director shall administer tte—provtstons—of this titles—imenmtng
AND SHALL DO THE FOLLOWING:

1. x#*doptirg ADOPT rules:

(a) for-carrytrg TO CARRY out the-provistors-cf this title.
(b) or—tte-proper TO PROPERLY conduct of the business to be

carried on under each specific type of spirituous liquor license.

(c) To enable and assist state officials and political
subdivisions to collect taxes levied or imposed in connection with
spirituous liquors.

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(d) for—tte—tssuance TO ISSUE and revocation—of REVOKE
certificates of registration of retail agents, including provisions
governing the shipping, storage and delivery of spirituous liquors
by registered retail agents, the keeping of records and the filing
of reports by registered retail agents.

(e) To establish requirements for licensees under section
4-209, subsection B, paragraph 12.

2. Subject to title 41, chapter 4, article 4, emptoying
EMPLOY necessary personnel and ‘fiximg FIX their compensation
pursuant to section 38-611.

3. eeprrg KEEP an index record that is a public record open
to public inspection and that contains the name and address of each
licensee and the name and address of any person having an interest,
either legal or equitable, in each license as shown by any written
document that is placed on file in the office of the board.

4, Provitirg PROVIDE the board with supplies and personnel as
directed by the board.

5. Respomtmrg RESPOND in writing to any law enforcement
agency that submits an investigative report to the department
relating to a violation of this title, setting forth what action, if
any, the department has taken or intends to take on the report and,
if the report lacks sufficient information or is otherwise defective
for use by the department, what the agency must do to remedy the
report.

6. Takimg TAKE steps that are necessary to maintain effective
liaison with the department of public safety and all local law
enforcement agencies t1—the—enforcement—of TO ENFORCE this title,
including the laws of this state against the consumption of
spirituous liquor by persons under the legal drinking age OR THE
SALE OR POSSESSION OF ALTERNATIVE NICOTINE PRODUCTS BY PERSONS UNDER
TWENTY-ONE YEARS OF AGE.

7. Provitimrg PROVIDE training to law enforcement agencies in
the—proper—imvesttgatton PROPER INVESTIGATION and reporting vf
violations of this title.

C. The director shall establish within the department a
separate investigations unit thet-tes-—ss tts WHOSE sole
responsibility tte—mvesttgattor-of IS INVESTIGATING compliance with
this title, including tte—imvestigatiorn—of INVESTIGATING licensees
alleged to have sold or distributed spirituous liquor in any form to
persons under the legal drinking age OR HAVE SOLD OR DISTRIBUTED
ALTERNATIVE NICOTINE PRODUCTS TO A PERSON WHO IS UNDER TWENTY-ONE
YEARS OF AGE. Investigations conducted by this unit may include
covert undercover investigations.

D. All employees of the department of liquor licenses and
control, except members of the state liquor board and the director
of the department, shall be employed by the department in the manner
prescribed by the department of administration.

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E. The director may enter into a contract or agreement with
any public agency for any joint or cooperative action as provided
for by title 11, chapter 7, article 3.

F. The board or the director may take evidence, administer
oaths or affirmations, issue subpoenas requiring attendance and
testimony of witnesses, cause depositions to be taken and require by
subpoena duces tecum the production of books, papers and other
documents that are necessary for—the—enforcement—of TO ENFORCE this
title. Proceedings held during the course of a_ confidential
investigation are exempt from title 38, chapter 3, article 3.1. If
a person refuses to obey a subpoena or fails to answer questions as
provided by this subsection, the board or the director may apply to
the superior court in the manner provided in section 12-2212. The
board or director may serve subpoenas by personal service or
certified mail, return receipt requested.

G. The director may:

1. Examine books, records and papers of a licensee.

2. Require applicants, licensees, employees who serve, sell
or furnish spirituous liquors to retail customers, managers and
managing agents to take training courses approved by the director in
spirituous liquor handling and spirituous liquor laws and rules.
The director shall adopt rules that set standards for approving
training courses. The director may suspend or revoke the previous
approval of trainers who do not adhere to course administration
requirements prescribed by the department or who do not meet course
standards. If the director suspends or revokes the previous
approval of a trainer pursuant to this paragraph, the trainer may
appeal to the board pursuant to section 4-210.02 as if the
suspension or revocation was a sanction against a licensee. After
Jdanuary tt, 2018; The rules for on-sale retailer basic training and
on-sale retailer management training shall include security
procedures for security personnel assigned to monitor admission of
patrons, interaction with patrons, calls to law enforcement and
strategies for use of force and for the use of de-escalation
techniques. If the retailer uses a registered security guard, the
retailer shall attempt to verify the validity and status of the
security guard's registration certificate. The department's
licensed investigators may participate and receive compensation as
lecturers at approved training courses within this. state's
jurisdiction that are conducted by other entities but shall not
participate in in-house training programs for licensees.

3. Delegate to employees of the department authority to
exercise powers of the director in order to administer’ the
department.

4. Regulate signs that advertise a spirituous liquor product
at licensed retail premises.

-10-
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5. Cause to be removed from the marketplace spirituous liquor
OR ALTERNATIVE NICOTINE PRODUCTS that may be contaminated.

6. Regulate the age and conduct of erotic entertainers at
licensed premises. The age limitation governing these erotic
entertainers may be different from other employees of the licensee.

7. Issue and enforce cease and desist orders against any
person or entity that sells beer, wine, or spirituous liquor without
an appropriate license or permit.

8. Confiscate wines carrying a label including a reference to
Arizona or any Arizona city, town or place unless at least
seventy-five percent by volume of the grapes used in making the wine
were grown in this state.

9. Accept and expend private grants of monies, gifts and
devises for conducting educational programs for parents and students
on the repercussions of underage alcohol consumption OR THE SALE OR
POSSESSION OF ALTERNATIVE NICOTINE PRODUCTS BY A PERSON WHO IS UNDER
TWENTY-ONE YEARS OF AGE. State general fund monies shall not be
expended for the purposes of this paragraph. If the director does
not receive sufficient monies from private sources to carry out the
purposes of this paragraph, the director shall not provide the
educational programs prescribed in this paragraph. Grant monies
received pursuant to this paragraph are nonlapsing and do not revert
to the state general fund at the close of the fiscal year.

10. Procure fingerprint scanning equipment and_ provide
fingerprint services to license applicants and licensees. The
department may charge a fee for providing these services.

11. Accept electronic signatures on all department and
licensee forms and documents and applications. The director may
adopt requirements that would require facsimile signatures to be
followed by original signatures within a specified time period.

12. For—use—after—tanuary—t— 2019, Adopt a form that is
required to be used by all on-sale retailers that hire or designate
employees to serve as security personnel. All security personnel
job applicants and employees for on-sale retailers shall complete
the form, which shall be notarized, before assignment to a security
role. The form shall require the applicant or other person to
disclose whether in the previous five years the person has been a
registered sex offender or pled guilty TO, pled no contest TO or
been convicted of any offense that constitutes assault, homicide,
domestic violence, sexual misconduct, misconduct involving a deadly
weapon or a drug violation that constitutes the illegal sale,
manufacturing, cultivation or transportation for sale of marijuana,
a dangerous drug or a narcotic drug. A licensee may not hire or
assign to a role as security personnel any person who fails to
complete the form or +f—tte WHOSE form discloses one of the listed
offenses within the previous five years. The licensee’ shall
maintain on file affidavits of all security personnel hired or

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designated by the licensee. The form may not be required for a
peace officer who is certified by the Arizona peace officer
standards and training board or other security personnel who hold a
current security guard registration certificate or armed security
guard registration certificate issued pursuant to title 32, chapter
26.

H. A county or municipality may enact and enforce ordinances
regulating the age and conduct of erotic entertainers at licensed
premises in a manner at least as restrictive as rules adopted by the
director.

I. For the purposes of this section, "security personnel":

1. Includes individuals whose primary assigned
responsibilities include the security and safety of employees and
patrons of an on-sale retailer premises. ‘Security—persomret

2. Does not include a person whose primary responsibilities
include checking the identification cards of patrons to determine
compliance with age requirements.

Sec. 4. Section 4-118, Arizona Revised Statutes, is amended
to read:

4-118. Inspection of premises

The director, the director's agents and any peace officer may,
in enforcing tte—provtstoms—cf this title, MAY visit during the
hours in which the premises are occupied and inspect the premises of
a licensee OR AN ALTERNATIVE NICOTINE PRODUCTS LICENSEE.

Sec. 5. Section 4-205.02, Arizona Revised Statutes, is
amended to read:

4-205.02. Restaurant license: issuance; regulatory
provisions; expiration; off-sale leases and
permits; fee; definitions

A. The director may issue a restaurant license to any
restaurant in this state that is regularly open for serving food to
guests for compensation and that has suitable kitchen facilities
connected with the restaurant for keeping, cooking and preparing
foods required for ordinary meals.

B. The director shall issue the license in the name of the
restaurant on application for the license by the owner or lessee of
the restaurant, if the applicant is otherwise qualified to hold a
spirituous liquor license. The holder of such a license is subject
to the penalties prescribed for any violation of the law relating to
alcoholic beverages.

C. The holder of a restaurant license may sell and serve
spirituous liquors solely for consumption on the licensed premises.
For the purpose of this subsection, “licensed premises" may include
rooms, areas or locations in which the restaurant normally sells or
serves spirituous liquors pursuant to regular operating procedures
and practices and that are contiguous to the restaurant or a
noncontiguous patio pursuant to section 4-101, paragraph 3@ 33. For

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the purposes of this subsection, a restaurant licensee must submit
proof of tenancy or permission from the landowner or lessor for all
property to be included in the licensed premises.

D. In addition to other grounds prescribed in this title on
which a license may be revoked, the director may require the holder
of a restaurant license issued pursuant to this section to surrender
the license in any case in which the licensee ceases to operate as a
restaurant, as prescribed in subsection A of this section. The
surrender of a license pursuant to this subsection does not prevent
the director from revoking the license for other grounds prescribed
in this title or for making deliberate material misrepresentations
to the department regarding the licensee's equipment, service or
entertainment items or seating capacity. in applying for the
restaurant license.

E. Neither the director nor the board may initially issue a
restaurant license if either finds that there is sufficient evidence
that the operation will not satisfy the criteria adopted by the
director for issuing a restaurant license described in section
4-209, subsection B, paragraph 12. The director shall issue a
restaurant license only if the applicant has submitted a plan for
the operation of the restaurant. The plan shall be completed on
forms provided by the department and shall include listings of all
restaurant equipment and service items, the restaurant seating
capacity and other information requested by the department to
substantiate that the restaurant will operate in compliance with
this section.

F. The holder of the license described in section 4-209,
subsection B, paragraph 12 who intends to alter the seating capacity
or dimensions of a restaurant facility shall notify the department
in advance on forms provided by the department.

G. The director may charge a fee for site inspections
conducted before the issuance of a restaurant license.

H. A restaurant applicant or licensee may apply for a permit
allowing for the sale of beer for consumption off the licensed
premises pursuant to section 4-244, paragraph 32, subdivision (c) on
a form prescribed and furnished by the director. The department
shall not issue a permit to a restaurant applicant or licensee that
does not meet the requirements in section 4-207, subsection A.
Section 4-207, subsection B does not apply to this subsection. The
permit shall be issued only after the director has determined that
the public convenience requires and that the best interest of the
community will be substantially served by the issuance of the
permit, considering the same criteria adopted by the director for
issuing a restaurant license described in section 4-209, subsection
B, paragraph 12. The amount of beer sold under the permit shall not
exceed ten percent of gross revenue of spirituous liquor sold by the
establishment. After the permit has been issued, the permit shall

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be noted on the license itself and in the records of the department.
The director may charge a fee for processing the application for the
permit and a renewal fee.

I. Notwithstanding any rule adopted by the department,
business establishments that relied on a form issued by the
department that provides for a small restaurant exemption for fifty
or fewer seats before January 31, 2019 are allowed to continue to
maintain the capacity of fifty or fewer seats for the duration of
the business. The rights of a business establishment subject to
this section are not transferable.

J. Notwithstanding section 4-203, subsection E, section 4-207
and section 4-210, subsection A, paragraph 6, through December 31,
2025, a restaurant applicant or licensee may apply to the department
for a lease for the privilege of selling mixed cocktails for
consumption off the licensed premises pursuant to section—4-?03~-06
amd section 4-244, paragraph 32, subdivision (d).

K. Notwithstanding section 4-207, beginning January 1, 2026,
a restaurant applicant or licensee may apply for a permit to allow
the sale of mixed cocktails for consumption off the licensed
premises pursuant to section 4-203.07 and section 4-244, paragraph
32, subdivision (d), on a form prescribed and furnished by the
director. The sale of mixed cocktails for consumption off the
licensed premises must be accompanied by the sale of menu food items
for consumption on or off the licensed premises. The department
shall issue the permit only after the director has determined that
the public convenience requires and that the best interest of the
community will be substantially served by issuing the permit. All
permit holders and their employees, managers and agents must
complete alcohol training pursuant to section 4-112, subsection G,
paragraph 2. After the department issues the permit, the permit
shall be noted on the license itself and in the records of the
department. The director may establish and charge a fee for
processing the permit application and a renewal fee.

L. A restaurant licensee shall cease selling spirituous
liquor, including mixed cocktails, for off-premises consumption when
the licensee ceases regular kitchen service for food.

M. For the purposes of this section:

1. "Gross revenue":

(a) Means the revenue derived from all sales of food and
spirituous liquor on the licensed premises, regardless of whether
the sales of spirituous liquor are made under a restaurant license
issued pursuant to this section or under any other license that has
been issued for the premises pursuant to this article.

(b) Includes revenue derived from spirituous liquor sold for
off-sale consumption.

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2. "Restaurant" means an establishment that derives at least
forty percent of its gross revenue from the sale of food, including
sales of food for consumption off the licensed premises if the
amount of these sales included in the calculation of gross revenue
from the sale of food does not exceed fifteen percent of all gross
revenue of the restaurant.

Sec. 6. Section 4-244, Arizona Revised Statutes, is amended
to read:

4-244, Unlawful acts; definition

It is unlawful:

1. For a person to buy for resale, sell or deal in spirituous
liquors in this state without first having procured a license duly
issued by the board, except that the director may issue a temporary
permit of any series pursuant to section 4-205.05 to a trustee in
bankruptcy to acquire and dispose of the spirituous liquor of a
debtor.

2. For a person to sell or deal in alcohol for beverage
purposes without first complying with this title.

3. For a distiller, vintner, brewer or wholesaler knowingly
to sell, dispose of or give spirituous liquor to any person other
than a licensee except in sampling wares as may be necessary in the
ordinary course of business, except in donating spirituous liquor to
a nonprofit organization that has obtained a special event license
for the purpose of charitable fundraising activities or except in
donating spirituous liquor with a cost to the distiller, brewer or
wholesaler of up to $500 in a calendar year to an organization that
is exempt from federal income taxes under section 501(c) (3), (4),
(6) or (7) of the internal revenue code and not licensed under this
title.

4. For a distiller, vintner or brewer to require a wholesaler
to offer or grant a discount to a retailer, unless the discount has
also been offered and granted to the wholesaler by the distiller,
vintner or brewer.

5. For a distiller, vintner or brewer to use a vehicle for
trucking or transporting spirituous liquors unless there is affixed
to both sides of the vehicle a sign showing the name and address of
the licensee and the type and number of the person's license in
letters not less than three and one-half inches in height.

6. For a person to take or solicit orders for spirituous
liquors unless the person is a salesman or solicitor of a licensed
wholesaler, a salesman or solicitor of a distiller, brewer, vintner,
importer or broker or a registered retail agent.

7. For any retail licensee to purchase spirituous liquors
from any person other than a solicitor or salesman of a wholesaler
licensed in this state.

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8. For a retailer to acquire an interest in property owned,
occupied or used by a wholesaler in the wholesaler's business, or in
a license with respect to the premises of the wholesaler.

9. Except as provided in paragraphs 10 and 11 of this
section, for a licensee or other person to sell, furnish, dispose of
or give, or cause to be sold, furnished, disposed of or given, to a
person under the legal drinking age or for a person under the legal-
drinking age to buy, receive, have in the person's possession or
consume spirituous liquor. This paragraph does not prohibit the
employment by an off-sale retailer of persons who are at least
sixteen years of age to check out, if supervised by a person on the
premises who is at least eighteen years of age, package or carry
merchandise, including spirituous liquor, in unbroken packages, for
the convenience of the customer of the employer, if the employer
sells primarily merchandise other than spirituous liquor.

10. For a licensee to employ a person under eighteen years of
age to manufacture, sell or dispose of spirituous liquors. This
paragraph does not prohibit the employment by an off-sale retailer
of persons who are at least sixteen years of age to check out, if
supervised by a person on the premises who is at least eighteen
years of age, package or carry merchandise, including spirituous
liquor, in unbroken packages, for the convenience of the customer of
the employer, if the employer sells primarily merchandise other than
spirituous liquor.

11. For an on-sale retailer to employ a person under eighteen
years of age in any capacity connected with the handling of
spirituous liquors. This paragraph does not prohibit the employment
by an on-sale retailer of a person under eighteen years of age who
cleans up the tables on the premises for reuse, removes dirty
dishes, keeps a ready supply of needed items and helps clean up the
premises.

12. For a licensee, when engaged in waiting on or serving
customers, to consume spirituous liquor or for a licensee or on-duty
employee to be on or about the licensed premises while in an
intoxicated or disorderly condition.

13. For an employee of a retail licensee, during that
employee's working hours or in connection with such employment, to
give to or purchase for any other person, accept a gift of, purchase
for the employee or consume spirituous liquor, except that:

(a) An employee of a licensee, during that employee's working
hours or in connection with the employment, while the employee is
not engaged in waiting on or serving customers, may give spirituous
liquor to or purchase spirituous liquor for any other person.

(b) An employee of an on-sale retail licensee, during that
employee's working hours or in connection with the employment, while
the employee is not engaged in waiting on or serving customers, may
taste samples of beer or wine of not more than four ounces per day

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or distilled spirits of not more than two ounces per day provided by
an employee of a wholesaler or distributor who is present at the
time of the sampling.

(c) An employee of an on-sale retail licensee, under the
supervision of a manager as part of the employee's training and
education, while not engaged in waiting on or serving customers may
taste samples of distilled spirits of not more than two ounces per
educational session or beer or wine of not more than four ounces per
educational session, and provided that a licensee does not have more
than two educational sessions in any thirty-day period.

(d) An unpaid volunteer who is a bona fide member of a club
and who is not engaged in waiting on or serving spirituous liquor to
customers may purchase for himself and consume spirituous liquor
while participating in a scheduled event at the club. An unpaid
participant in a food competition may purchase for himself and
consume spirituous liquor while participating in the _ food
competition.

(e) An unpaid volunteer of a special event licensee under
section 4-203.02 may purchase and consume spirituous liquor while
not engaged in waiting on or serving spirituous liquor to customers
at the special event. This subdivision does not apply to an unpaid
volunteer whose responsibilities include verification of a person's
legal drinking age, security or the operation of any vehicle or
heavy machinery.

(f) A representative of a producer or wholesaler
participating at a special event under section 4-203.02 may consume
small amounts of the products of the producer or wholesaler on the
premises of the special event for the purpose of quality control.

14. For a licensee or other person to serve, sell or furnish
spirituous liquor to a disorderly or obviously intoxicated person,
or for a licensee or employee of the licensee to allow a disorderly
or obviously intoxicated person to come into or remain on or about
the premises, except that a licensee or an employee of the licensee
may allow an obviously intoxicated person to remain on the premises
for not more than thirty minutes after the state of obvious
intoxication is known or should be known to the licensee for a
nonintoxicated person to transport the obviously intoxicated person
from the premises. For the purposes of this section, "obviously
intoxicated" means inebriated to the extent that a person's physical
faculties are substantially impaired and the impairment is shown by
significantly uncoordinated physical action or significant physical
dysfunction that would have been obvious to a reasonable person.

15. For an on-sale or off-sale retailer or an employee of
such retailer or an alcohol delivery contractor to sell, dispose of,
deliver or give spirituous liquor to a person between the hours of
2:00 a.m. and 6:00 a.m., except that:

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(a) A retailer with off-sale privileges may receive and
process orders, accept payment or package, load or otherwise prepare
spirituous liquor for delivery at any time, if the actual deliveries
to customers are made between the hours of 6:00 a.m. and 2:00 a.m.,
at which time section 4-241, subsections A and K apply.

(b) The governor, in consultation with the governor's office
of highway safety and the public safety community in this state, may
issue an executive order that extends the closing time until
3:00 a.m. for spirituous liquor sales in connection with a
professional or collegiate national sporting championship event held
in this state.

16. For a licensee or employee to knowingly allow any person
on or about the licensed premises to give or furnish any spirituous
liquor to any person under twenty-one years of age or knowingly
allow any person under twenty-one years of age to have in the
person's possession spirituous liquor on the licensed premises.

17. For an on-sale retailer or an employee of such retailer
to allow a person to consume or possess spirituous liquors on the
premises between the hours of 2:30 a.m. and 6:00 a.m., except that
if the governor extends the closing time for a day for spirituous
liquor sales pursuant to paragraph 15 of this section it is unlawful
for an on-sale retailer or an employee of such retailer on that day
to allow a person to consume or possess spirituous liquor on the
premises between the hours of 3:30 a.m. and 6:00 a.m.

18. For an on-sale retailer to allow an employee or for an
employee to solicit or encourage others, directly or indirectly, to
buy the employee drinks or anything of value in the licensed
premises during the employee's working hours. An on-sale retailer
shall not serve employees or allow a patron of the establishment to
give spirituous liquor to, purchase liquor for or drink liquor with
any employee during the employee's working hours.

19. For an off-sale retailer or employee to sell spirituous
liquor except in the original unbroken container, to allow
spirituous liquor to be consumed on the premises or to knowingly
allow spirituous liquor to be consumed on adjacent property under
the licensee's exclusive control.

20. For a person to consume spirituous liquor in a public
place, thoroughfare or gathering. The license of a_ licensee
allowing a violation of this paragraph on the premises shall be
subject to revocation. This paragraph does not apply to the sale of
spirituous liquors on the premises of and by an on-sale retailer.
This paragraph also does not apply to a person consuming beer or
wine from a broken package in a public recreation area or on private
property with permission of the owner or lessor or on the walkways
surrounding such private property or to a person consuming beer or
wine from a broken package in a public recreation area as part of a

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special event or festival that is conducted under a license secured
pursuant to section 4-203.02 or 4-203.03.

21. For a person to possess or to transport spirituous liquor
that is manufactured in a distillery, winery, brewery or rectifying
plant contrary to the laws of the United States and this state. Any
property used in transporting such spirituous liquor shall be
forfeited to tire THIS state and shall be seized and disposed of as
provided in section 4-221.

22. For an on-sale retailer or employee to allow a person
under the legal drinking age to remain in an area on the licensed
premises during those hours in which its primary use is the sale,
dispensing or consumption of alcoholic beverages after the licensee,
or the licensee's employees, know or should have known that the
person is under the legal drinking age. An on-sale retailer may
designate an area of the licensed premises as an area in which
spirituous liquor will not be sold or consumed for—tte—purpuse—of
attowirg TO ALLOW underage persons on the premises if the designated
area is separated by a physical barrier and at no time will underage
persons have access to the area in which spirituous liquor is sold
or consumed. A licensee or an employee of a licensee may require a
person who intends to enter a licensed premises or a portion of a
licensed premises where persons under the legal drinking age are
prohibited under this section to exhibit an instrument of
identification that is acceptable under section 4-241 as a condition
of entry or may use a biometric identity verification device to
determine the person's age as a condition of entry. The director,
or a municipality, may adopt rules to regulate the presence of
underage persons on licensed premises provided the rules adopted by
a municipality are more stringent than those adopted by the
director. The rules adopted by the municipality shall be adopted by
local ordinance and shall not interfere with the licensee's ability
to comply with this paragraph. This paragraph does not apply:

(a) If the person under the legal drinking age is accompanied
by a spouse, parent, grandparent or legal guardian of legal drinking
age or is an on-duty employee of the licensee.

(b) If the owner, lessee or occupant of the premises is a
club as defined in section 4-101, paragraph @- 9, subdivision (a)
and the person under the legal drinking age is any of the following:

(i) An active duty military service member.

(ii) A veteran.

(iii) A member of the United States army national guard or
the United States air national guard.

(iv) A member of the United States military reserve forces.

(c) To the area of the premises used primarily for serving
food during the hours when food is served.

23. For an on-sale retailer or employee to conduct drinking
contests, to sell or deliver to a person an unlimited number of

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spirituous liquor beverages during any set period of time for a
fixed price, to deliver more than fifty ounces of beer, one liter of
wine or four ounces of distilled spirits in any spirituous liquor
drink to one person at one time for that person's consumption or to
advertise any practice prohibited by this paragraph. This paragraph
does not prohibit an on-sale retailer or employee from selling and
delivering an opened, original container of distilled spirits if:

(a) Service or pouring of the spirituous liquor is provided
by an employee of the on-sale retailer. A licensee shall not be
charged for a violation of this paragraph if a customer, without the
knowledge of the retailer, removes or tampers with a locking device
on a bottle delivered to the customer for bottle service and the
customer pours the customer's own drink from the bottle, if when the
licensee becomes aware of the removal or tampering of the locking
device the licensee immediately installs a functioning locking
device on the bottle or removes the bottle and lock from bottle
service.

(b) The employee of the on-sale retailer monitors consumption
to ensure compliance with this paragraph. Locking devices may be
used, but are not required.

24. For a licensee or employee to knowingly allow. the
unlawful possession, use, sale or offer for sale of narcotics,
dangerous drugs or marijuana on the premises. For the purposes of
this paragraph, “dangerous drug" has the same meaning prescribed in
section 13-3401.

25. For a licensee or employee to knowingly allow
prostitution or the solicitation of prostitution on the premises.

26. For a licensee or employee to knowingly allow unlawful
gambling on the premises.

27. For a licensee or employee to knowingly allow trafficking
or attempted trafficking in stolen property on the premises.

28. For a licensee or employee to fail or refuse to make the
premises or records available for inspection and examination as
provided in this title or to comply with a lawful subpoena issued
under this title.

29. For any person other than a peace officer while on duty
or off duty or a member of a sheriff's volunteer posse while on duty
who has received firearms training that is approved by the Arizona
peace officer standards and training board, a retired peace officer
as defined in section 38-1113 or an _ honorably retired law
enforcement officer who has been issued a certificate of firearms
proficiency pursuant to section 13-3112, subsection T, the licensee
or an employee of the licensee acting with the permission of the
licensee to be in possession of a firearm while on the licensed
premises of an on-sale retailer. This paragraph does not include a
situation in which a person is on licensed premises for a limited
time in order to seek emergency aid and such person does not buy,

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receive, consume or possess spirituous liquor. This paragraph does
not apply to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in conjunction with a
meeting, show, class or similar event.

(c) A person with a permit issued pursuant to section 13-3112
who carries a concealed handgun on the licensed premises of any
on-sale retailer that has not posted a notice pursuant to section
4-229.

30. For a licensee or employee to knowingly allow a person in
possession of a firearm other than a peace officer while on duty or
off duty or a member of a sheriff's volunteer posse while on duty
who has received firearms training that is approved by the Arizona
peace officer standards and training board, a retired peace officer
as defined in section 38-1113 or an _ honorably retired law
enforcement officer who has been issued a certificate of firearms
proficiency pursuant to section 13-3112, subsection T, the licensee
or an employee of the licensee acting with the permission of the
licensee to remain on the licensed premises or to serve, sell or
furnish spirituous liquor to a person in possession of a firearm
while on the licensed premises of an on-sale retailer. It is a
defense to action under this paragraph if the licensee or employee
requested assistance of a peace officer to remove such person. This
paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in conjunction with a
meeting, show, class or similar event.

(c) A person with a permit issued pursuant to section 13-3112
who carries a concealed handgun on the licensed premises of any
on-sale retailer that has not posted a notice pursuant to section
4-229,

31. For any person in possession of a firearm while on the
licensed premises of an on-sale retailer to consume spirituous
liquor. This paragraph does not prohibit the consumption of small
amounts of spirituous liquor by an undercover peace officer on
assignment to investigate the licensed establishment.

32. For a licensee or employee to knowingly allow spirituous
liquor to be removed from the licensed premises, except in the
original unbroken package. This paragraph does not apply to any of
the following:

(a) A person who removes a bottle of wine that has been
partially consumed in conjunction with a purchased meal from
licensed premises if a cork is inserted flush with the top of the
bottle or the bottle is otherwise securely closed.

(b) A person who is in licensed premises that have
noncontiguous portions that are separated by a public or private
walkway or driveway and who takes spirituous liquor from one portion

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of the licensed premises across the public or private walkway or
driveway directly to the other portion of the licensed premises.

(c) A licensee of a bar, beer and wine bar, liquor store,
beer and wine store, microbrewery or restaurant that has a permit
pursuant to section 4-205.02, subsection H that dispenses beer only
in a clean container composed of a material approved by a national
sanitation organization with a maximum capacity that does not exceed
one gallon and not for consumption on the premises if:

(i) The licensee or the licensee's employee fills the
container at the tap at the time of sale.

(ii) The container is sealed and displays a government
warning label.

(d) A bar or liquor store licensee that prepares a mixed

cocktail or a restaurant licensee that teases the —privitegetosett

mixett cocktatts For comsumpttorr off ttre trcetrsed premTses pur Strat
to—sectiunr +-203-t6—cr holds a permit pursuant to section 4-203.07
and section 4-205.02, subsection K and that prepares a_ mixed
cocktail and transfers it to a clean container composed of a
material approved by a national sanitation organization with a
maximum capacity that does not exceed thirty-two ounces and not for
consumption on the premises if all of the following apply:

(i) The licensee or licensee's employee fills the container
with the mixed cocktail on the licensed premises of the bar, liquor
store or restaurant.

(ii) The container is tamperproof sealed by the licensee or
the licensee's employee and displays a government warning label.

(iii) The container clearly displays the bar's, liquor
store's or restaurant's logo or name.

(iv) For a restaurant licensee licensed pursuant to section
4-205.02, the sale of mixed cocktails for consumption off the
licensed premises is accompanied by the sale of menu food items for
consumption on or off the licensed premises.

33. For a person who is obviously intoxicated to buy or
attempt to buy spirituous liquor from a licensee or employee of a
licensee or to consume spirituous liquor on licensed premises.

34, For a person who is under twenty-one years of age to
drive or be in physical control of a motor vehicle while there is
any spirituous liquor in the person's body.

35. For a person who is under twenty-one years of age to
operate or be in physical control of a motorized watercraft that is
underway while there is any spirituous liquor in the person's
body. For the purposes of this paragraph, “underway" has the same
meaning prescribed in section 5-301.

36. For a licensee, manager, employee or controlling person
to purposely induce a voter, by means of alcohol, to vote or abstain
from voting for or against a particular candidate or issue on an
election day.

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37. For a licensee to fail to report an occurrence of an act
of violence to either the department or a law enforcement agency.

38. For a licensee to use a vending machine for—the—purpuse
uf—drspemsitrg TO DISPENSE spirituous liquor.

39. For a licensee to offer for sale a wine carrying a label
including a reference to Arizona or any Arizona city, town or
geographic location unless at least seventy-five percent by volume
of the grapes used in making the wine were grown in Arizona.

40. For a retailer to knowingly allow a customer to bring
spirituous liquor onto the licensed premises, except that an on-sale
retailer may allow a wine and food club to bring wine onto the
premises for consumption by the club's members and guests of the
club's members in conjunction with meals purchased at a meeting of
the club that is conducted on the premises and that at least seven
members attend. An on-sale retailer that allows wine and food clubs
to bring wine onto its premises under this paragraph shall comply
with all applicable provisions of this title and any rules adopted
pursuant to this title to the same extent as if the on-sale retailer
had sold the wine to the members of the club and their guests. For
the purposes of this paragraph, "wine and food club" means an
association that has more than twenty bona fide members paying at
least $6 per year in dues and that has been in existence for at
least one year.

41. For a person who is under twenty-one years of age to have
in the person's body any spirituous liquor. In a prosecution for a
violation of this paragraph:

(a) Pursuant to section 4-249, it is a defense that the
spirituous liquor was consumed in connection with the bona fide
practice of a religious belief or as an integral part of a religious
exercise and in a manner not dangerous to public health or safety.

(b) Pursuant to section 4-226, it is a defense that the
spirituous liquor was consumed for a bona fide medicinal purpose and
in a manner not dangerous to public health or safety.

42. For an employee of a licensee to accept any gratuity,
compensation, remuneration or consideration of any kind to either:

(a) Allow a person who is under twenty-one years of age to
enter any portion of the premises where that person is prohibited
from entering pursuant to paragraph 22 of this section.

(b) Sell, furnish, dispose of or give spirituous liquor to a
person who is under twenty-one years of age.

43. For a person to purchase, offer for sale or use any
device, machine or process that mixes spirituous liquor with pure
oxygen or another gas to produce a vaporized product for the purpose
of consumption by inhalation or to allow patrons to use any item for
the consumption of vaporized spirituous liquor.

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House Amendments to H.B. 4001

OnNODOHP WN FE

44. For a retail licensee or an employee of a retail licensee
to sell spirituous liquor to a person if the retail licensee or
employee Knows the person intends to resell the spirituous liquor.

45. Except as authorized by paragraph 32, subdivision (c) of
this section, for a person to reuse a bottle or other container
authorized for use by the laws of the United States or any agency of
the United States for the packaging of distilled spirits or for a
person to increase the original contents or a _ portion of the
original contents remaining in a liquor bottle or other authorized
container by adding any substance.

46. For a direct shipment licensee, a farm winery licensee or
an employee of those licensees to sell, dispose of, deliver or give
spirituous liquor to an individual purchaser between the hours of
2:00 a.m. and 6:00 a.m., except that a direct shipment licensee or a
farm winery licensee may receive and process orders, accept payment,
package, load or otherwise prepare wine for delivery at any time
without complying with section 4-241, subsections A and K, if the
actual deliveries to individual purchasers are made between the
hours of 6:00 a.m. and 2:00 a.m. and in accordance with section
4-203.04 for direct shipment licensees and section 4-205.04 for farm
winery licensees.

47. For a supplier to coerce or attempt to coerce a
wholesaler to accept delivery of beer or any other commodity that
has not been ordered by the wholesaler or for which the order was
canceled. A supplier may impose reasonable inventory requirements
on a wholesaler if the requirements are made in good faith and are
generally applied to other similarly situated wholesalers that have
an agreement with the supplier.

Sec. 7. Title 4, Arizona Revised Statutes, is amended by
adding chapter 4, to read:

CHAPTER 4
ALTERNATIVE NICOTINE PRODUCTS
ARTICLE 1. LICENSURE AND SALE OF
ALTERNATIVE NICOTINE PRODUCTS
4-401. Sale of alternative nicotine products; license
required; application requirements; fee;
violation; classification

A. A PERSON MAY NOT SELL ALTERNATIVE NICOTINE PRODUCTS IN
THIS STATE WITHOUT A LICENSE ISSUED PURSUANT TO THIS SECTION. A
PERSON DESIRING A LICENSE TO SELL ALTERNATIVE NICOTINE PRODUCTS IN
THIS STATE SHALL APPLY TO THE DIRECTOR ON A FORM FURNISHED BY THE
DIRECTOR. THE APPLICANT SHALL PROVIDE ALL OF THE FOLLOWING:

1. THE ADDRESS OF THE RETAIL LOCATION FOR THE SALE OF THE
ALTERNATIVE NICOTINE PRODUCTS.

2. THE APPLICANT'S TRANSACTION PRIVILEGE TAX NUMBER.

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House Amendments to H.B. 4001

OONAD THR WDM FE

3. PROOF OF THE APPLICANT'S COMPLIANCE WITH A PROGRAM THAT
TRAINS AND EDUCATES ALTERNATIVE NICOTINE PRODUCT RETAILERS ON
FEDERAL AND STATE ALTERNATIVE NICOTINE PRODUCTS LAWS.

4. PROOF THAT THE APPLICANT HAS A METHOD FOR SCANNING OR
ANOTHER METHOD OF CHECKING IDENTIFICATIONS FOR AGE VERIFICATION FOR
THE SALE OF ALTERNATIVE NICOTINE PRODUCTS THAT COMPLIES WITH SECTION
[4-#66] [4-405].

B. THE DIRECTOR MAY DETERMINE THE FEE FOR A LICENSE ISSUED
PURSUANT TO THIS SECTION. A LICENSE ISSUED PURSUANT TO THIS SECTION
IS VALID FOR ONE YEAR.

C. A LICENSE ISSUED PURSUANT TO THIS SECTION AUTHORIZES THE
LICENSEE TO SELL ALTERNATIVE NICOTINE PRODUCTS ONLY AT THE LOCATION
PROVIDED ON THE LICENSE.

D. A LICENSE TO SELL ALTERNATIVE NICOTINE PRODUCTS IS NOT
TRANSFERABLE. THE LICENSEE SHALL REPORT ANY CHANGE IN OWNERSHIP OF
THE BUSINESS OF THE LICENSEE, DIRECTLY OR INDIRECTLY, AS DEFINED BY
RULE, TO THE DIRECTOR WITHIN THIRTY DAYS AFTER THE CHANGE IN
OWNERSHIP.

E. A LICENSE TO SELL ALTERNATIVE NICOTINE PRODUCTS MAY NOT BE
LEASED OR SUBLEASED.

(F. A PERSON THAT IS LICENSED BY THE DEPARTMENT TO SELL

PIRITUOUS L SELLING RODU
AS OF THE EFFECTIVE DATE OF THIS SECTION IS EXEMPT FROM THE
LICENSING FEE REQUIREMENT PRESCRIBED IN SUBSECTION B OF THIS
SECTION.

G. A PERSON THAT SELLS ALTERNATIVE NICOTINE PRODUCTS WITHOUT
A LICENSE AS REQUIRED BY THIS SECTION IS GUILTY OF A CLASS 5 FELONY
AND:

1. SHALL PAY A FINE OF AT LEAST $10,000.

2. IS PROHIBITED FROM SELLING, GIVING OR FURNISHING
ALTERNATIVE NICOTINE PRODUCTS FOR A PERIOD OF ONE YEAR.

3. IS SUBJECT TO ANY OTHER PUNISHMENT DEEMED APPROPRIATE BY
THE DIRECTOR. ]

4-402. Manufacture of alternative nicotine products;

license required; application requirements:
fee; violation; classification

A. A PERSON MAY NOT MANUFACTURE ALTERNATIVE NICOTINE PRODUCTS
CIHAT ARE FOR SALE] IN THIS STATE WITHOUT A LICENSE ISSUED PURSUANT
TO THIS SECTION. A PERSON DESIRING A LICENSE TO MANUFACTURE
ALTERNATIVE NICOTINE PRODUCTS [THAT ARE FOR SALE] IN THIS STATE
SHALL APPLY TO THE DIRECTOR ON A FORM FURNISHED BY THE DIRECTOR.
THE APPLICANT SHALL PROVIDE ALL OF THE FOLLOWING:

1. THE APPLICANT'S MANUFACTURING BUSINESS ADDRESS, TELEPHONE
NUMBER, EMAIL ADDRESS AND IF THE APPLICANT IS AN ENTITY, THE NAME OF
THE SENIOR OFFICER.

2. PROOF OF MANUFACTURING LIABILITY INSURANCE COVERAGE.

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House Amendments to H.B. 4001

OnNanfPwnrre

3. PROOF OF THE APPLICANT'S COMPLIANCE WITH THE PREVENT ALL
CIGARETTE TRAFFICKING ACT OF 2009 (P.L. 111-154; 124 STAT. 1087; 15
UNITED STATES CODE SECTION 376a).

4. THE APPLICANT'S PRODUCT CATALOG OF ALTERNATIVE NICOTINE
PRODUCTS THAT THE APPLICANT INTENDS TO MANUFACTURE CAND THAT WILL BE
FOR SALE] IN THIS STATE. THE PRODUCT CATALOG SHALL INCLUDE ALL OF
THE FOLLOWING:

(a) THE ALTERNATIVE PRODUCT NAME, CATEGORY, NICOTINE STRENGTH
AND FLAVORS.

(b) A COPY OR IMAGE OF THE NICOTINE PRODUCT'S PACKAGING AND
WARNING LABEL.

(c) A TOXICOLOGY REPORT FOR THE NICOTINE PRODUCT, IF
REQUESTED BY THE DEPARTMENT.

[AER PAR FANS PEC TE ON REP ORFFREI A STATE APPROVED

SHALE BE-ENTEREEYTHANUFACTORER ANB ASS EMBEEB—F-THE ONT EB STATES ]

B. THE DIRECTOR MAY DETERMINE THE FEE FOR A LICENSE ISSUED
PURSUANT TO THIS SECTION. A LICENSE IS VALID FOR ONE YEAR.

C. A LICENSEE SHALL PAY TO THE DEPARTMENT AN ANNUAL FEE FOR
EACH ([STOCK—KEEPTHG] [STOCKKEEPING] UNIT OF EACH ALTERNATIVE
NICOTINE PRODUCT [THAT] THE LICENSEE WILL MANUFACTURE [AND THAT ARE
FOR SALE] IN THIS STATE. THE DIRECTOR MAY DETERMINE THE ANNUAL
[STOCK-KEEPTHG] [STOCKKEEPING] UNIT FEE THAT IS REQUIRED PURSUANT TO
THIS SUBSECTION.

D. A LICENSE TO MANUFACTURE ALTERNATIVE NICOTINE PRODUCTS
[THAT ARE FOR SALE IN THIS STATE] IS NOT TRANSFERABLE. THE LICENSEE
SHALL REPORT ANY CHANGE IN OWNERSHIP OF THE BUSINESS OF THE
LICENSEE, DIRECTLY OR INDIRECTLY, AS DEFINED BY RULE, TO THE
DIRECTOR WITHIN THIRTY DAYS AFTER THE CHANGE IN OWNERSHIP.

E. A LICENSE TO MANUFACTURE ALTERNATIVE NICOTINE PRODUCTS MAY
NOT BE LEASED OR SUBLEASED.

[F. A PERSON THAT MANUFACTURES ALTERNATIVE NICOTINE PRODUCTS
FOR SALE IN THIS STATE WITHOUT A LICENSE AS REQUIRED BY THIS SECTION
IS GUILTY OF A CLASS 5 FELONY AND:

1. SHALL PAY A FINE OF AT LEAST $10,000.

2. SHALL ATTEND A DIRECTOR-APPROVED ALTERNATIVE NICOTINE
PRODUCT RETAILER EDUCATIONAL COURSE.

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House Amendments to H.B. 4001

OANA AP WDM eB

3. IS PROHIBITED FROM SELLING, GIVING OR FURNISHING
ALTERNATIVE NICOTINE PRODUCTS FOR A PERIOD OF ONE YEAR.

TO_ANY PPROPRIATE B
THE DIRECTOR. }

4-403. Selling, delivering or giving of alternative
nicotine products to underage persons;
violation: classification

A. A LICENSEE OR A’ LICENSEE'S EMPLOYEE MAY NOT SELL
ALTERNATIVE NICOTINE PRODUCTS TO A PERSON WHO IS UNDER TWENTY-ONE
YEARS OF AGE.

B. ON THE RECEIPT OF NOTICE OF A VIOLATION OF SUBSECTION A OF
THIS SECTION, THE DIRECTOR SHALL PROVIDE NOTICE OF THE ALLEGED
VIOLATION TO THE LICENSEE WHO IS ALLEGED TO HAVE COMMITTED THE
VIOLATION. AFTER A HEARING, IF A LICENSEE IS FOUND TO HAVE
COMMITTED A VIOLATION OF THIS SECTION, THE FOLLOWING PENALTIES
APPLY:

1. THE DIRECTOR SHALL ORDER A LICENSEE THAT COMMITS A FIRST
VIOLATION OF THIS SECTION TO ATTEND A DIRECTOR-APPROVED ALTERNATIVE
NICOTINE PRODUCTS RETAILER EDUCATIONAL COURSE THAT HAS BEEN APPROVED
BY THE DIRECTOR AND PAY A CIVIL PENALTY OF AT LEAST $500 BUT NOT
MORE THAN $750.

2. A LICENSEE THAT COMMITS A SECOND VIOLATION OF THIS SECTION
AT THE SAME LICENSED LOCATION WITHIN TWENTY-FOUR MONTHS IS GUILTY OF
A CLASS 3 MISDEMEANOR AND:

(a) SHALL PAY A FINE OF AT LEAST $2,000 BUT NOT MORE THAN
$3,000.

(b) SHALL ATTEND A_ DIRECTOR-APPROVED ALTERNATIVE NICOTINE
PRODUCTS RETAILER EDUCATIONAL COURSE.

(c) IS SUBJECT TO ANY OTHER PUNISHMENT DEEMED APPROPRIATE BY
THE DIRECTOR.

3. A LICENSEE THAT COMMITS A THIRD VIOLATION OF THIS SECTION
AT THE SAME LICENSED LOCATION WITHIN TWENTY-FOUR MONTHS IS GUILTY OF
A CLASS 1 MISDEMEANOR AND:

(a) SHALL PAY A CIVIL PENALTY OF AT LEAST $10,000.

(b) SHALL ATTEND A’ DIRECTOR-APPROVED ALTERNATIVE NICOTINE
PRODUCTS RETAILER EDUCATIONAL COURSE.

(c) IS PROHIBITED FROM SELLING, GIVING OR FURNISHING
ALTERNATIVE NICOTINE PRODUCTS FOR A PERIOD OF ONE HUNDRED TWENTY
DAYS.

(d) IS SUBJECT TO ANY OTHER PUNISHMENT DEEMED APPROPRIATE BY
THE DIRECTOR.

4. A LICENSEE THAT COMMITS A FOURTH OR SUBSEQUENT VIOLATION
OF THIS SECTION AT THE SAME LICENSED LOCATION WITHIN TWENTY-FOUR
MONTHS IS GUILTY OF A CLASS 6 FELONY AND:

(a) SHALL PAY A FINE OF AT LEAST $10,000.

(b) SHALL ATTEND A _ DIRECTOR-APPROVED ALTERNATIVE NICOTINE
PRODUCTS EDUCATIONAL COURSE.

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House Amendments to H.B. 4001

WOON ODOR WD FE

(c) IS PROHIBITED FROM SELLING, GIVING OR _ FURNISHING
ALTERNATIVE NICOTINE PRODUCTS FOR A PERIOD OF ONE YEAR.

(d) IS SUBJECT TO ANY OTHER PUNISHMENT DEEMED APPROPRIATE BY
THE DIRECTOR.

5. A RETAILER THAT COMMITS A FOURTH OR SUBSEQUENT VIOLATION
OF THIS SECTION AT THE SAME LICENSED LOCATION WITHIN TWELVE MONTHS
IS GUILTY OF A CLASS 5 FELONY AND:

(a) SHALL PAY A FINE OF AT LEAST $10,000.

(b) SHALL ATTEND A _ DIRECTOR-APPROVED ALTERNATIVE NICOTINE
PRODUCT RETAILER EDUCATIONAL COURSE.

(c) IS PROHIBITED FROM SELLING, GIVING OR FURNISHING
ALTERNATIVE NICOTINE PRODUCTS FOR A PERIOD OF ONE YEAR.

(d) IS SUBJECT TO ANY OTHER PUNISHMENT DEEMED APPROPRIATE BY
THE DIRECTOR.

C. IF THE DIRECTOR ORDERS A LICENSEE TO ATTEND AN ALTERNATIVE
NICOTINE PRODUCTS RETAILER EDUCATIONAL COURSE, EACH OWNER AND PERSON
WHO SERVES IN A MANAGERIAL POSITION AND AT LEAST ONE PERSON WHO
SERVES IN A NONMANAGERIAL POSITION SHALL ATTEND THE COURSE.

[4+-405-] [4-404.] Alternative nicotine products

marketing
A LICENSEE MAY NOT MARKET, ADVERTISE, SELL OR CAUSE TO BE SOLD

AN ALTERNATIVE NICOTINE PRODUCT IN A CONTAINER THAT DOES ANY OF THE
FOLLOWING:

1. DEPICTS A CARTOON-LIKE FICTIONAL CHARACTER THAT BINIES A
CHARACTER PRIMARILY AIMED AT ENTERTAINING.

2. IMITATES OR MIMICS A TRADEMARK OR TRADE DRESS OF A PRODUCT
THAT IS OR HAS BEEN PRIMARILY MARKETED TO MINORS.

3. INCLUDES A SYMBOL THAT IS PRIMARILY USED TO MARKET
PRODUCTS TO MINORS.

4, INCLUDES AN IMAGE OR THE NAME OF A CELEBRITY.

5. IS IN A PRODUCT SHAPE OR DESIGN THAT IS MEANT TO DISGUISE
THE APPEARANCE OF THE ALTERNATIVE NICOTINE PRODUCT, INCLUDING THE
SHAPE OR DESIGN OR ANY OF THE FOLLOWING:

(a) A SCHOOL OR OFFICE SUPPLY.

-28-
House Amendments to H.B. 4001

OONODOHBRWDY

(b) A SMART PHONE, SMART WATCH OR SMART PHONE OR SMART WATCH
GASE.

(c) HEADPHONES OR EAR BUDS.

(d) ANY ITEM OF CLOTHING.

(e) A BACKPACK.

(f) A COSMETIC OR COSMETIC CONTAINER.

(g) A TOY OR VIDEO GAME DEVICE.

(h) A FOOD OR BEVERAGE PRODUCT.

[44067] [4-405.] Sale of alternative nicotine

products; identification requirements

A. IF A LICENSEE OR ANY OTHER PERSON QUESTIONS OR HAS REASON
TO QUESTION THAT THE PERSON PURCHASING, ATTEMPTING TO PURCHASE OR
OTHERWISE PROCURING OR ATTEMPTING TO PROCURE AN ALTERNATIVE NICOTINE
PRODUCTS IS UNDER TWENTY-ONE YEARS OF AGE, THE LICENSEE OR OTHER
PERSON SHALL DO ALL OF THE FOLLOWING:

1. DEMAND IDENTIFICATION FROM THE PERSON.

2. EXAMINE THE IDENTIFICATION TO DETERMINE THAT THE
IDENTIFICATION REASONABLY APPEARS TO BE A VALID, UNALTERED
IDENTIFICATION THAT HAS NOT BEEN DEFACED.

3. EXAMINE THE PHOTOGRAPH IN THE IDENTIFICATION AND DETERMINE
THAT THE PERSON REASONABLY APPEARS TO BE THE SAME PERSON IN THE
IDENTIFICATION.

4. DETERMINE THAT THE DATE OF BIRTH IN THE IDENTIFICATION
INDICATES THE PERSON IS NOT UNDER TWENTY-ONE YEARS OF AGE.

5. SCAN THE PERSON'S IDENTIFICATION USING AN’ ELECTRONIC
SCANNING DEVICE.

B. THE FOLLOWING: WRITTEN INSTRUMENTS CONSTITUTE THE ONLY
IDENTIFICATION THAT IS ACCEPTABLE UNDER SUBSECTION A OF THIS
SECTION:

1. AN UNEXPIRED DRIVER LICENSE ISSUED BY THIS STATE. A
DRIVER LICENSE THAT IS ISSUED TO A PERSON WHO IS UNDER TWENTY-ONE
YEARS OF AGE DOES NOT CONSTITUTE ACCEPTABLE IDENTIFICATION THIRTY
DAYS AFTER THE PERSON REACHES TWENTY-ONE YEARS OF AGE.

2. AN UNEXPIRED DRIVER LICENSE ISSUED BY ANY OTHER STATE, THE
DISTRICT OF COLUMBIA, ANY TERRITORY OF THE UNITED STATES OR CANADA
IF THE LICENSE INCLUDES A PICTURE OF THE PERSON AND THE PERSON'S
DATE OF BIRTH.

3. AN UNEXPIRED NONOPERATING IDENTIFICATION LICENSE ISSUED
PURSUANT TO SECTION 28-3165. AN UNEXPIRED NONOPERATING
IDENTIFICATION LICENSE THAT IS ISSUED TO A PERSON WHO IS UNDER
TWENTY -ONE YEARS OF AGE DOES NOT CONSTITUTE ACCEPTABLE
IDENTIFICATION THIRTY DAYS AFTER THE PERSON REACHES TWENTY-ONE YEARS
OF AGE.

4. A FORM OF IDENTIFICATION LICENSE ISSUED BY ANY OTHER
STATE, THE DISTRICT OF COLUMBIA, ANY TERRITORY OF THE UNITED STATES
OR CANADA IF THE LICENSE IS SUBSTANTIALLY EQUIVALENT TO A
NONOPERATING IDENTIFICATION LICENSE ISSUED PURSUANT TO SECTION

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House Amendments to H.B. 4001

SOO WD

28-3165 AND INCLUDES A PICTURE OF THE PERSON AND THE PERSON'S DATE
OF BIRTH.

5. AN UNEXPIRED ARMED FORCES IDENTIFICATION CARD THAT
INCLUDES THE PERSON'S PICTURE AND DATE OF BIRTH.

6. A VALID UNEXPIRED PASSPORT OR A VALID UNEXPIRED RESIDENT
ALIEN CARD THAT CONTAINS A PHOTOGRAPH OF THE PERSON AND THE PERSON'S
DATE OF BIRTH.

8 Enroll and engross to conform
9 Amend title to conform

JEFF WENINGER

4001WENINGER. docx

02/16/2026
1:47 PM

C: LT
130KNNXWB

-30-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

Commerce

ROLL CALL VOTE .

BILL NO.

DATE February 17, 2026

MOTION:

__HB 4001

DPA

PASS

>
x
m

NAY

PRESENT

ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

NY A

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

lo NAAR RS KR] NAS

“Gases be RETARY

ATTACHMENT___<"

bl

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2996: DIFI; certificates of insurance
Sponsor: Representative Weninger, LD 13
Committee on Commerce

Overview
Provides requirements applicable to a certificate of insurance.

History
The Department of Insurance and Financial Institutions (DIFI) regulates the insurance

industry through licensure and examination of insurance professionals and businesses,
including insurance producers and adjusters.

Insurance is a contract by which one undertakes to indemnify another or to pay a specified
amount on determinable contingencies (Title 20, A.R.S.).

Provisions
1. Declares a certificate of insurance that is issued by an insurer, or an insurance producer
is not an insurance policy and does not:
a. amend, extend or alter the coverage that an insurance policy provides; and
b. confer any new or additional right beyond what is expressly stated in the insurance
policy. (Sec. 1)

2. Stipulates the use of a certificate of insurance is prohibited if it:
a. is unfair, misleading or deceptive; or
b. violates public policy, any law or adopt rule. (Sec. 1)
3. Prohibits a person from preparing, issuing or requiring a certificate of insurance that:
a. contains false or misleading information;
b. purports to alter, amend or extend coverage; or
c. claims that the insurance policy complies with the insurance or indemnification
requirements of a contract. (Sec. 1)

4. Provides stipulations that entitle a person to notice of cancellation, nonrenewal or a
material change in the policy terms. (Sec. 1)

5. Instructs DIFI to investigate any violation and take appropriate action, including issuing
a cease and desist order or assessing a civil penalty. (Sec. 1)

6. Specifies actions taken for violations do not limit DIFI's authority to investigate, enforce
or issue civil penalties in accordance with any other applicable law. (Sec. 1)

7. Allows DIFI to adopt rules to implement the certificate of insurance requirements. (Sec.

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

Initials PB HB 2996
2/14/2026 Page 1 Commerce

Attachment A
8. Specifies the outlined requirements apply to any certificate of insurance that is issued in
connection with property and casualty risks. (Sec. 1)

9. Voids a certificate of insurance or other documents that is in violation of the outlined
requirements. (Sec. 1)

10. Defines certificate of insurance and person. (Sec. 1)

11. Applies the outlined certificate of insurance requirements to any contract or addendum
that is entered into after the effective date of this act. (Sec. 2)

Initials PB HB 2996
2/14/2026 Page 2 Commerce
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2996

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2996
(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.

[GREEN-STRIRECUT-FI-BRACKETS] indicates new text removed from statute

or previously enacted session law.

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

<<Green carets>> indicate a section added to the bill.
<<freenstrtkevut—ir-carets>> indicates a section removed from the bill.

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

Section 1. Title 20, chapter 2, article 6, Arizona Revised
Statutes, is amended by adding section 20-443.03, to read:

20-443.03. Certificates of insurance: notice: civil penalty:

rules; applicability: definition

A. A CERTIFICATE OF INSURANCE THAT IS PREPARED OR ISSUED BY AN
INSURER, AN INSURANCE PRODUCER OR A REPRESENTATIVE OF AN INSURER OR AN
INSURANCE PRODUCER IS NOT AN INSURANCE POLICY, DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE THAT IS PROVIDED [4] [BY] AN INSURANCE POLICY AND DOES
10 NOT CONFER ANY NEW OR ADDITIONAL [RFGHF] [RIGHTS] BEYOND [tHHAF] THOSE
11 EXPRESSLY STATED IN THE INSURANCE POLICY.
12 [8-— THE BIRECTFOR— SHALE — PROHTE HT FHE—_ USE 0F A CERT IEF TECATE OF
13. EXSURANCE-TF THE EER FA TEAFE- OF TNSURANEET
14 TT ONFATR CHES TEABTNG-OR-BECEP THE;

WOON DAH WDHY FE

15 2. VHOTATES -PUBLTE-P ELTON

16 STH TOTATES ANA TREC UBT NG ANA RUEE AB OPTED BY -TFHE-BTRECTOR? J]
17 (€>] [B.] A PERSON MAY NOT PREPARE, ISSUE, REQUEST OR REQUIRE A
18 CERTIFICATE OF INSURANCE THAT:

19 1. CONTAINS FALSE OR MISLEADING INFORMATION ABOUT THE INSURANCE
20 POLICY. ;

21 2. [PURPORTS—TFO-ACTERSAMENB-OR-EXFENB] =[ALTERS, AMENDS OR EXTENDS]
22 COVERAGE THAT IS PROVIDED FOR IN THE INSURANCE POLICY.

23 3. CLAIMS THAT THE INSURANCE POLICY COMPLIES WITH THE INSURANCE OR
24 INDEMNIFICATION REQUIREMENTS OF A CONTRACT.

25 [67] ([C.] A PERSON[, OTHER THAN THE POLICYHOLDER] IS ENTITLED TO

26 NOTICE OF CANCELLATION, NONRENEWAL OR A MATERIAL CHANGE IN THE [POtTE¥]
27 TERMS [OF AN INSURANCE POLICY] [OR—FO—A—STHTECAR-HOTTEE-FHAT-ECONECERNS THE

\doptec # of Verbals

‘aile: Withdraw

Not Offerec Analysts Initials

Attachment 23
House Amendments to H.B. 2996

ONAN WDHY FE

FFP PWWWWWWWWWWNYNDNYDNDDAYNDNNNNMHPRP RPE HB EEE EE
CHRP OWOODNADATAWNHEF OHO DNDANBWNHEHOWOCANDOBRWHYHOw

TNSURANCE—POTTEY] ONLY IF [NOFPCE—REGUTREMENTS—ARE—HIELUBER—UNBER-FHE
FERMS— OFTHE -ERSURANEEP OL TEEN BRANT ENDORSEMENT FOF TS URANEE-POLTEY J
CTHE POLICY OR AN ENDORSEMENT TO THE POLICY AFFORDS SUCH NOTICE RIGHTS TO
THE PERSON).

C&-] (D.] THE DIRECTOR [StHAtt] [MAY] INVESTIGATE ANY VIOLATION OF
THIS SECTION, AND THE DIRECTOR MAY TAKE ONE OR BOTH OF THE FOLLOWING
ACTIONS:

1. ISSUE AN ORDER THAT REQUIRES THE PERSON TO CEASE AND DESIST FROM
THE ACTIONS THAT CONSTITUTE THE VIOLATION.

2. ASSESS A CIVIL PENALTY OF NOT MORE THAN $1,000 PER VIOLATION.

[fF] [E.] SUBSECTION [€] [D] OF THIS SECTION DOES NOT LIMIT THE
AUTHORITY OF THE DIRECTOR TO INVESTIGATE, ENFORCE OR ISSUE CIVIL PENALTIES
PURSUANT TO ANY OTHER APPLICABLE LAW.

[@>] [E.] THE DIRECTOR MAY ADOPT RULES TO IMPLEMENT THIS SECTION.

[H7] [G.] THIS SECTION APPLIES TO ANY CERTIFICATE OF INSURANCE THAT
IS ISSUED IN CONNECTION WITH PROPERTY AND CASUALTY RISKS LOCATED IN THIS
STATE WITHOUT REGARD TO THE LOCATION OF THE POLICYHOLDER, INSURER OR
INSURANCE PRODUCER OR ANY PERSON WHO REQUESTS OR REQUIRES A CERTIFICATE OF
INSURANCE TO BE ISSUED.

(t-] ([H.J] A CERTIFICATE OF INSURANCE OR ANY OTHER DOCUMENT OR
CORRESPONDENCE THAT IS PREPARED, ISSUED, REQUESTED OR REQUIRED IN
VIOLATION OF THIS SECTION IS VOID.

[t-] [1L.] FOR THE PURPOSES OF THIS SECTION[.J([7+]

[t-] "CERTIFICATE OF INSURANCE":

[tary] [1.] MEANS A DOCUMENT, FORM, TEMPLATE, SUBMISSION,
QUESTIONNAIRE OR OTHER INSTRUMENT REGARDLESS OF TITLE THAT INCLUDES A
DESCRIPTION, SUMMARY, INTERPRETATION OR EVIDENCE OF PROPERTY OR CASUALTY
INSURANCE COVERAGE AND THAT IS PREPARED OR ISSUED BY AN INSURER, AN
INSURANCE PRODUCER OR A REPRESENTATIVE OF AN INSURER OR PRODUCER.

[tby] [2.] DOES NOT INCLUDE ANY OF THE FOLLOWING:

[t+] [(a)] AN INSURANCE POLICY.

[¢777] [(b)] AN INSURANCE BINDER.

[t7777] [(c)] A POLICY ENDORSEMENT.

[ttvy] [(d)] AN AUTOMOBILE INSURANCE IDENTIFICATION OR INFORMATION

BITRE CUBES THES STATES ANY -P OCH TEAL SUBBTVESTON-OF TTS STAFE-OR
ANY GOVERNMENTAL SUBBTYVTSTON-OR-AGENEN= J

Sec. 2. Applicability
This act applies to any contract or addendum that is entered into

from and after the effective date of this act.
House Amendments to H.B. 2996

1 Enroll and engross to conform
2 Amend title to conform

2996WENINGER. docx
02/16/2026

10:46 AM

H: PB/1s
130MHYMIX

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. __HB 2996

DATE February 17, 2026 MOTION: DPA

PASS AYE NAY PRESENT | ABSENT

Aguilar

Blackman

N\

Carter N

NN

Cavero Fa

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

O |o _ |{l

SKAAKARKAK

zat

APPROVED: CO TEE SEGRE IAKY

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman /
5

ATTACHMENT.

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2834: claims against HOAs; filing fees
Sponsor: Representative Carter N, LD 15
Committee on Commerce

Overview
Sets the filing fee for petitions filed with the Arizona Department of Real Estate (ADRE) for
dispute hearings between an owner and a condominium or planned community association.

History
Disputes between an owner and a condominium or planned community association

concerning the violation of documents or statutory regulations may be resolved through an
administrative hearing conducted by the Office of Administrative Hearings (OAH). Hearings
may only be held after either the owner or the association files a petition for a hearing with
ADRE and pays the associated filing fee established by the Commissioner of ADRE. After
receiving the petition, the fee, and responses from both parties, ADRE determines whether a
petition is justified and should be sent to OAH, or if it should be dismissed.

All filing fees are deposited in the Condominium and Planned Community Hearing Office
Fund and are used to reimburse ADRE and the Office of Administrative Hearings for the
actual costs of dispute hearings (A.R.S. §§ 32-2199.01; 32-2199.05).

Provisions
1. Sets the petition filing fee to be $100 per issue claimed in the petition. (Sec. 1)

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

Initials PB/AI HB 2834
2/13/2026 Page 1 Commerce
ig
Attachment 9

—___.
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2834

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2834
(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.

[GREEN-STREKESUTF- BRACKETS] indicates new text removed from statute

or previously enacted session law.

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

<<Green carets>> indicate a section added to the bill.
<<treen—strtkeout—ir-carets>> indicates a section removed from the bill.

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

Section 1. Section 32-2199.01, Arizona Revised Statutes, is amended
to read:

32-2199.01. Hearing; rights and procedures

A. For a dispute between an owner and a condominium association or
planned community association that is regulated pursuant to title 33,
chapter 9 or 16, the owner or association may petition the department for
a hearing concerning violations of condominium documents or planned
9 community documents or violations of the statutes that regulate
10 condominiums or planned communities. The petitioner shall file a petition
11 with the department and pay a filing fee tm-ar-amount—to-be-estabtistet-ty
12 the-commrsstorer OF [4t66] [$300] PER ISSUE CLAIMED IN THE PETITION. The
13 filing fee shall be deposited in the condominium and planned community
14 hearing office fund established by section 32-2199.05. On dismissal of a
15 petition at the request of the petitioner before a hearing is scheduled or
16 by stipulation of the parties before a hearing is scheduled, the filing
17 fee shall be refunded to the petitioner. The department does not have
18 jurisdiction to hear:

ONAN HP WDHB

19 1. Any dispute among or between owners to which the association is
20 not a party.
21 2. Any dispute between an owner and any person, firm, partnership,

22 corporation, association or other organization that is engaged in the
23 business of designing, constructing or selling a condominium as defined in
24 section 33-1202 or any property or improvements within a planned community
25 as defined in section 33-1802, including any person, firm, partnership,
26 corporation, association or other organization licensed pursuant to this
27 chapter, arising out of or related to the design, construction, condition

Adopted \ # of Verbals

‘ailec Withdrawn

Not Offerec Analysts Initials

Attachment
House Amendments to H.B. 2834

DONATO HRWNM HE

or sale of the condominium or any property or improvements within a
planned community.

B. The petition shall be in writing on a form approved by the
department, shall list the complaints and shall be signed by or on behalf
of the persons filing and include their addresses, stating that a hearing
is desired, and shall be filed with the department.

C. On receipt of the petition and the filing fee, the department
shall mail by certified mail a copy of the petition along with notice to
the named respondent that a response is required within twenty days after
mailing of the petition showing cause, if any, why the petition should be
dismissed.

D. After receiving the response, the commissioner’ or the
commissioner's designee shall promptly review the petition for hearing
and, if justified, refer the petition to the office of administrative
hearings. The commissioner may dismiss a petition for hearing if it
appears to the commissioner's satisfaction that the disputed issue or
issues have been resolved by the parties.

E. Failure of the respondent to answer is deemed an admission of
the allegations made in the petition, and the commissioner shall issue a
default decision.

F. Informal disposition may be made of any contested case.

G. Either party or the party's authorized agent may inspect any
file of the department that pertains to the hearing, if the authorization
is filed in writing with the department.

H. At a hearing conducted pursuant to this section, a corporation
may be represented by a corporate officer, employee or contractor of the
corporation who is not a member of the state bar if:

1. The corporation has specifically authorized the officer,
employee or contractor of the corporation to represent it.

2. The representation is not the officer's, employee's’ or
contractor of the corporation's primary duty to the corporation but is
secondary or incidental to the officer's, employee's or contractor of the
corporation's, limited liability company's, limited liability
partnership's, sole proprietor's or other lawfully formed and operating
entity's duties relating to the management or _ operation of the
corporation.

<<Sec. 2. Section 33-1270, Arizona Revised Statutes, is amended to
read:

33-1270. Department of real estate; enforcement

A. (Notting—itr)] This chapter [statt—be—construed—to] [DOES NOT]
increase or decrease or otherwise affect any rights or powers granted to
the commissioner of the department of real estate under title 32, chapter
20 with respect to the issuance of public reports.

B. The commissioner of the department of real estate shall require
compliance with [sectror] [SECTIONS] 33-1215 and [section] 33-1219 in
connection with the administration of the subdivision laws of this state
under title 32, chapter 20, article 4. The commissioner [statt] [1S] not

House Amendments to H.B. 2834

1 [be] required to administer or enforce any other provisions of this
2 chapter [BUT SHALL ADMINISTER THE DISPUTE RESOLUTION PROCESS AUTHORIZED
3 UNDER SECTION 32-2199.01].>>

4

5 <<

6 Sec. 3. Title 33, chapter 16, Arizona Revised Statutes, is amended
7 by adding article 2, to read:

8 ARTICLE 2. ADMINISTRATION

9 33-1831. State real estate department; enforcement

10 [A. THIS CHAPTER DOES NOT INCREASE OR DECREASE OR OTHERWISE AFFECT

11 ANY RIGHTS OR POWERS GRANTED TO THE STATE REAL ESTATE COMMISSIONER UNDER
12 TITLE 32, CHAPTER 20 WITH RESPECT TO THE ISSUANCE OF PUBLIC REPORTS.

13 B. THE STATE REAL ESTATE COMMISSIONER SHALL REQUIRE COMPLIANCE WITH
14 THE RELEVANT PORTIONS OF SECTIONS 33-1215 AND 33-1219 FOR PLANNED
15 COMMUNITIES IN CONNECTION WITH THE ADMINISTRATION OF THE SUBDIVISION LAWS
16 OF THIS STATE UNDER TITLE 32, CHAPTER 20, ARTICLE 4. THE STATE REAL
17 ESTAT R T_ REQUIRED TO ENFORCE ANY OTHER PROVISI F
18 THIS CHAPTER BUT SHALL ADMINISTER THE DISPUTE RESOLUTION PROCESS
19 AUTHORIZED UNDER SECTION 32-2199.01.] ]>>

20 Enroll and engross to conform
21 Amend title to conform

NEAL CARTER

2834CARTER N.docx
02/13/2026

09:32 AM

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

ROLL CALL VOTE

COMMITTEE ON Commerce

BILL NO.

DATE February 17, 2026

MOTION:

HB 2834

DPA

PASS NAY

PRESENT

ABSENT

Aguilar

Blackman

AN IN {3

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

NAR RAK K

Weninger, Chairman

O

eg

O

APPROVED: yang a SECRE

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

i

ATTACHMENT.

51

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2951: automatic subscription renewals; contracts; requirements
S/E: same subject
Sponsor: Representative Connolly, LD 8
Committee on Commerce

Summary of the Strike-Everything Amendment to HB 2951

Overview
Outlines requirements relating to automatic renewal contracts.

History
The Uniform Commercial Code (UCC) is a is a comprehensive set of laws governing all

commercial transactions. In accordance with the UCC, a contract as the total legal obligation
that results from the parties' agreement as determined by statutes as supplemented by any
other applicable laws (A.R.S. § 47-1201).

Provisions
1. Instructs a person who offers an automatic renewal contract to:
a. allow the consumer to cancel their subscription by using the same method they used
to enroll in the subscription; and
b. provide clear, conspicuous disclosure of a subscription's terms, including renewal
policies and cancellation instructions, at the time the consumer enrolls in a
subscription. (Sec. 1)

2. Prohibits a person who offers an automatic renewal contract from adding extra
requirements or steps to the cancellation process. (Sec. 1)

3. Authorizes a person who offers an automatic renewal contract to make a retention offer
or incentive to a consumer only after the consumer indicates an intent to cancel the
consumer's subscription, which cannot impede or complicate the cancellation process.
(Sec. 1)

4. Stipulates a reminder of the automatic renewal be sent, 31 days before an annual
automatic renewal, to each consumer who has an automatic renewal contract by using
the same method the consumer used to enroll in the subscription in order to provide an
opportunity to opt out of the automatic renewal contract. (Sec. 1)

5. Defines automatic renewal contract as a plan or arrangement in which a paid subscription
or purchasing agreement for goods or services is automatically renewed at the end of a
definite term for a subsequent term or on a continuous or recurring basis. (Sec. 1)

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

Initials PB HB 2951
2/14/2026 Page 1 Commerce

Attachment 52
Fifty-seventh Legislature Commerce
Second Regular Session H.B. 2951

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2951
(Reference to printed bill)

Strike everything after the enacting clause and insert:

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

ARTICLE 27. SUBSCRIPTION REGULATIONS
44-1383. Automatic renewal contracts; requirements;
definition

A. A PERSON THAT OFFERS TO A CONSUMER IN THIS STATE AN AUTOMATIC
RENEWAL CONTRACT:

1. SHALL ALLOW THE CONSUMER TO CANCEL THE CONSUMER'S SUBSCRIPTION
10 BY USING THE SAME METHOD THE CONSUMER USED TO ENROLL IN THE SUBSCRIPTION
11 AND MAY NOT ADD EXTRA REQUIREMENTS OR STEPS TO THE CANCELLATION PROCESS.
12 2. SHALL PROVIDE CLEAR, CONSPICUOUS DISCLOSURE OF A SUBSCRIPTION'S
13 TERMS, INCLUDING RENEWAL POLICIES AND CANCELLATION INSTRUCTIONS, AT THE
14 TIME THE CONSUMER ENROLLS IN A SUBSCRIPTION.
15 3. MAY MAKE A RETENTION OFFER OR INCENTIVE TO A CONSUMER ONLY AFTER
16 THE CONSUMER INDICATES AN INTENT TO CANCEL THE CONSUMER'S SUBSCRIPTION.
17 THE RETENTION OFFER OR INCENTIVE MAY NOT IMPEDE OR COMPLICATE THE
18 CANCELLATION PROCESS.
19 B. A PERSON THAT OFFERS TO A CONSUMER IN THIS STATE AN AUTOMATIC
20 RENEWAL CONTRACT, THIRTY-ONE DAYS BEFORE AN ANNUAL AUTOMATIC RENEWAL,
21 SHALL SEND TO EACH CONSUMER WHO HAS AN AUTOMATIC RENEWAL CONTRACT A
22 REMINDER OF THE AUTOMATIC RENEWAL FOR THE SUBSCRIPTION BY USING THE SAME
23 METHOD THE CONSUMER USED TO ENROLL IN THE SUBSCRIPTION IN ORDER TO PROVIDE
24 THE CONSUMER AN OPPORTUNITY TO OPT OUT OF THE AUTOMATIC RENEWAL CONTRACT.
25 C. FOR THE PURPOSES OF THIS SECTION, “AUTOMATIC RENEWAL CONTRACT"
26 MEANS A PLAN OR ARRANGEMENT IN WHICH A PAID SUBSCRIPTION OR PURCHASING
27 AGREEMENT FOR GOODS OR SERVICES IS AUTOMATICALLY RENEWED AT THE END OF A
28 DEFINITE TERM FOR A SUBSEQUENT TERM OR ON A CONTINUOUS OR RECURRING
29 BASIS."
30 Amend title to conform

OON DAH WNH FE

JANEEN CONNOLLY
2951 CONNOLLY . docx
02/13/2026
03:13 PM | oe
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130BJWSLR Anne atu

Analysts Initials

Attachment oy |
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO.

DATE February 17, 2026 MOTION:

HB 29514

DPA

PASS AYE NAY PRESENT

ABSENT

Aguilar

Blackman

XN IS

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

S NINN AKRKAK

APPROVED:

ho —

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT.

60

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 4017: pet ownership limits; planned communities.
Sponsor: Representative Gress, LD 4
Committee on Commerce

Overview
Asserts a planned community association cannot prohibit or otherwise limit a household pet
by breed, size or weight.

History
An association is a nonprofit corporation or unincorporated association of owners that is

created pursuant to a declaration to own and operate portions of a planned community and
that has the power under the declaration to assess association members to pay the costs and
expenses incurred in the performance of the association's obligations under the declaration.

A planned community is a real estate development that includes real estate owned and
operated by or real estate on which an easement to maintain roadways or a covenant to
maintain roadways is held by a nonprofit corporation or unincorporated association of
owners, that is created for the purpose of managing, maintaining or improving the property
and in which the declaration expressly states both that the owners of separately owned lots,
parcels or units are mandatory members and that the owners are required to pay
assessments to the association for these purposes (A.R.S. § 33-1802).

Provisions
1. Declares a planned community association cannot prohibit or otherwise limit a household
pet by breed, size or weight. (Sec. 1)

2. Asserts any provisions prohibited by the pet restriction are unenforceable without regard
to whether they were adopted or enacted before the effective date of this act. (Sec. 1)

3. Authorizes a planned community association to adopt reasonable rules regarding pet
behavior that are consistent with federal, state and local laws. (Sec. 1)

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

Initials HB 4017
2/14/2026 Page 1 Commerce

Attachment \l
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON

Commerce

BILLNO. _HB4017_

DATE

February 17, 2026

MOTION: DP

PASS

NAY

PRESENT | ABSENT

Aguilar

Blackman

Carter N

Cavero

Connolly

Diaz

Hendrix

Villegas

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

S INNNINIXSIS) OK RAL

T1eé

i:

ATTACHMENT.

>a ab ARY

oA

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