Arizona House of Representatives Committee on Commerce — Report of Regular Meeting, February 9, 2021 (Fifty-fifth Legislature, First Regular Session)
Summary
A report of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-fifth Legislature, First Regular Session, held Tuesday, February 9, 2021, prepared by the committee secretary on February 10, 2021. The report records committee action on nine bills, including HB2772 (DPA 9-1-0-0), HB2773 (DPA 7-3-0-0), HB2156 (DP 8-2-0-0), HB2541 (DP 10-0-0-0) and HB2546 (DP 10-0-0-0), with HB2367 and HB2507 held. Attachments include the revised meeting agenda, a Request to Speak report listing positions registered on the bills, and the committee attendance record. The document also contains a House summary of HB 2772 on fantasy sports betting and event wagering, a summary of HB 2546 on home solicitation sales, and a roll call vote sheet for HB2546 approved by Chairman Jeff Weninger and Vice-Chairman Steve Kaiser.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Arizona House of Representatives Committee on Commerce — Report of Regular Meeting, February 9, 2021 (Fifty-fifth Legislature, First Regular Session).”
Original at www.azleg.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/committee-df3002d4fa959744/
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
COMMITTEE ON COMMERCE
Report of Regular Meeting
Tuesday, February 9, 2021
House Hearing Room 3 -- 2:00 P.M.
Convened 2:09 P.M. ;
Recessed MINUTES RECEIVED
6HIEF OLERK'S OFFICE
Reconyened
Adjourned 5:06 P.M. o ld- o
Members Present Members Absent
Mr. Chaplik
Mr. Cook
Mr. Espinoza
Mrs, Fernandez
Mr. Meza
Ms. Nutt
Ms. Powers Hannley
Mr. Wilmeth
Mr. Kaiser, Vice-Chairman
Mr. Weninger, Chairman
Agenda
Original Agenda — Attachment |
Request to Speak
Report — Attachment 2
Committee Attendance
Report — Attachment 3
Committee Action
Bill Action Vote Attachments
HB2772, DPA 9-1-0-0 4, 5,6
HB2773, DPA 7-3-0-0 7, 8,9
HB2156 = DP 8-2-0-0 10, 11
HB2367 HELD 12
HB2507. HELD 13
HB2541 DP 10-0-0-0 14, 15
HB2544 =DPA 9-0-0-1 16, 17, 18
HB2545 DPA 10-0-0-0 19, 20, 21
HB2546 DP 10-0-0-0 22, 23
Brew The Dita herrT/
Iris McMahon, Committee Secretary
February 10, 2021
(Original attachments on file in the Office of the Chief Clerk; video archives available at
http:/Avww.azleg.gov)
COMMITTEE ON COMMERCE
February 9, 2021
REVISED - 2/08/21 REVISED - 2/08/21 REVISED - 2/08/21
ARIZONA HOUSE OF REPRESENTATIVES fomntuerned , ai 049
Fifty-fifth Legislature - First Regular Session . Par
REGULAR MEETING AGENDA holguecened «S606 ~m
COMMITTEE ON COMMERCE
DATE Tuesday, February 9, 2021 ROOM HHR3 TIME 2:00 P.M.
This meeting will be held via teleconference software. Members of the public may access a livestream of the meeting here:
https://Awww.azleg.gov/videoplayer/?clientID=636 1 162879&eventID=202 1021068
Members:
Mr. Chaplik Mr. Meza Mr. Wilmeth
Mr, Cook Ms. Nutt Mr. Kaiser, Vice-Chairman
Mr. Espinoza Ms. Powers Hannley Mr. Weninger, Chairman
Mrs, Fernandez
Bills Short Title Strike Everything Tifle
y) HB2156 DE appropriations; broadband grants
(Espinoza: Cobb)
G-A- d~ OCOM, APPROP, RULES
*HB2367 i £ L D special event licenses; charitable organizations
——_—_——_—— (Payne)
COM held 0-0-0-0-0, RULES
HB2507 . landlords; deceased tenant; pets
HELD wotick)
COM, RULES
A
____. delegates
(Belek)
COM;RULES
f HB2541 D ’ telecommunications fund; report; posting
(Wilmeth)
[0-0 oO COM, RULES
Page 1 of 2 Attachment /
Bills Short Title Strike Everything Tifle
4 HB2544 D Pp A blockchain and cryptocurrency study committee
(Wilmeth: Kaiser, Lieberman, et al)
Gedo — | COM»RULES
b HB2545 D fA contractor license numbers; advertising; exception.
(Wilmeth)
(0-0~- 0-0 COM, RULES
home solicitation sales; definition
7 HB2546—. p
Dr (Wilmeth: Carroll, Toma, et al)
j0- p-0-8 COM, RULES
—_+___—_—— (Osborne: Nutt, Payne etab
COM-RULES
/ HB2772 D f A fantasy sports betting; event wagering,
(Weninger: Bolick, Chavez, et al)
4, |. 0-0 COM, RULES
go HB2773 D ~ A spirituous liquor; delivery; off-sale permits
—————__ (Weninger: Chavez, Hernandez A, et al)
7- 3-9-0 COM, RULES
* On previous agenda
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
Pursuant to Committee Rule (2), Any person desiring to be heard concerning legislation in-persen-or remotely shall email that request
to (HouseCOM@azleg.gov) at least 24 hours, excluding weekends and holidays, in advance of committee, if practicable. The request
must state the bill the person desires to present arguments upon, and whom the person represents. Timely requests will receive a response
that includes meeting access information to participate in the committee remotely erin- person. Sharing meeting access information with
unauthorized users may result in being prohibited to participate remotely in future legislative hearings. The request to participate
remotely via teleconference shall be in addition fo requesting to speak via the Request to Speak system
(hitps://apps.azteg.gov/requesttospeak/topicsearch). Persons desiring to testify remotely shall indicate that the participation is remote
within the comments of the Request to Speak system.
DF
02/08/2021
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.
Page 2 of 2
Information Registered on the Request to Speak System
House Commerce (2/9/2021)
HB2156, appropriations; broadband grants
Support:
John Kelly, Principal, MICROSOFT CORPORATION; Eric Emmert, Arizona Association For Economic Development ;
Russell Smoldon, AZ MUNICIPAL POWER USERS ASSN; Julie Rees, City Of Sierra Vista; Lourdes Pefia, SIERRA VISTA,
CITY OF; Todd Madeksza, COCONINO COUNTY, FLAGSTAFF, CITY OF; Geoff Esposito, UNIDOSUS; Michael Madden,
COUNTY SUPERVISORS ASSN OF AZ; Casey Ratlief, GRAND CANYON STATE ELECTRIC COOP ASSN; Wendy
Valenzuela, AZ PUBLIC SERVICE COMPANY (APS); Carmen Terrell, representing self
Neutral:
Pat VanMaanen, representing self; Susan Bitter Smith, representing self
All Comments:
John Kelly, MICROSOFT CORPORATION: This bill helps address a problem that existed before Covid, but was
accelerated and emphasized by Covid. This is a key piece of multiple elements of the State's efforts to expand
access to vital digital resources.; Michael Madden, COUNTY SUPERVISORS ASSN OF AZ: CSA supports increased
investment In broadband infrastructure and development in Arizona.; Carmen Terrell, Self: Some people need
Internet access, but can't afford the cost of it. Internet service providers charge too much and in some areas, the
service doesn't work well. Price gouging isn't the answer but grants are the solution.; Pat VanMaanen, Self: This bill
is very vague, needs more details and would prefer to see it focused on parts of the state where infrastructure is
limited/missing with a focus on equity.; Susan Bitter Smith, Self: Speaking on behalf of the Members of the
Southwest Cable Communications Association
HB2367, special event licenses; charitable organizations
Oppose:
Rob Fullmer, EVENT PRODUCERS ALLIANCE OF ARIZONA
Support:
kathleen mayer, representing self; Karen Michael, HVA, INC. DBA HUMANE VOTERS OF ARIZONA; ellen katz,
William E. Morris Institute For Justice; Kellye Pinkleton, HUMANE SOCIETY OF THE UNITED STATES; Linda Bentley,
representing self; Don Bentley, ANIMAL DEFENSE LEAGUE OF ARIZONA
Neutral:
Carmen Terrell, representing self
All Commenis:
ellen katz, William E. Morris Institute For Justice: While we support the bill, the bill needs changes. The words
animals) should be used instead of pet(s). The landlord should be required to ask for the contact for both
personal prop and animals.; Carmen Terrell, Self: | don't know what this is about, but it's not the job of a landlord
to figure out where a deceased person's pet should go. This is a job for animal control. Pets should go to a shelter
and have the shelter handle the situation.
HB2541, telecommunications fund; report; posting
HB2544, blockchain and cryptocurrency study committee
Support:
Brett Mecum, representing self; James Christian, representing self; Ryan Taylor, representing self
HB2545, contractor license numbers; advertising; exception.
Support:
Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE; Meghaen Dell'Artino, COXCOM INC
Neutral:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ
HB2546, home solicitation sales: definition
HB2772, fantasy sports betting; event wagering
Testified in support:
Daryl Chester, representing self; Kelsey Lundy, BETMGM, LLC, DRAFTKINGS, FANDUEL, TP RACING LLLP; Anni Foster,
AZ GOVERNOR'S OFFICE; Amilyn Pierce, AZ DIAMONDBACKS; Andrew Diss, representing self; Julie Giese,
representing self; David Delos, representing self; Don Isaacson, AZ LICENSED BEVERAGE ASSN; John MacDonald,
HUALAPAI TRIBE; Robert Dalager, Arizona Cardinals ; David Miller, representing self
Support:
Wendy Briggs, TOHONO O'ODHAM NATION; Michael Haener, Partner, SALT RIVER PIMA-MARICOPA INDIAN
COMMUNITY; Tom Farley, COLORADO RIVER INDIAN TRIBES; Dianne McCallister, Bally's Corporation; Todd
Baughman, Major League Baseball, National Basketball Association; Meghaen Dell'Artino, GILA RIVER INDIAN
COMMUNITY: Jaime Molera, AZ INDIAN GAMING ASSN; Emily Ryan, Pascua Yaqui Tribe; Kurt Davis, Phoenix Suns;
Shaun Rieve, TOHONO O'ODHAM NATION; John Oliver, representing self; Hunter Moore, PGA TOUR, INC.; Mike
Bielecki, NAVAJO NATION GAMING ENTERPRISE; Stacie Stern, representing self
Neutral:
Aiden Fleming , AZ DEPT OF GAMING
All Comments:
Daryl Chester, Self: This would be a great bill if amended to allow all lottery licensed establishments to carry Keno.;
Kelsey Lundy, BETMGM, LLC, DRAFTKINGS, FANDUEL, TP RACING LLLP: Speaking on behalf of FanDuel, DraftKings,
BetMGM.; Andrew Diss, Self: On behalf of the Arizona Coyotes; Julie Giese, Self: NASCAR and Phoenix Raceway
support HB2772; Wendy Briggs, TOHONO O'ODHAM NATION: The Tohono O'odham Nation supports the
legislation as part of an overall agreement with the Governor's office to amend and update the gaming compacts.;
Michael Haener, SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY: SRPMIC supports $B1797 and the
amendment offered by Chairman Weninger. Our support is based off a five-year negotiation with the State and is
not an open-ended endorsement of further expansion of off-reservation gaming.; Tom Farley, COLORADO RIVER
INDIAN TRIBES: Support the bill as jong as gaming compacts are amended and executed to the satisfaction of my
client. Without amended and executed gaming compacts, my client would oppose HB 2772 contents.; Todd
Baughman, Major League Baseball, National Basketball Association: MLB and the NBA support HB2772; Emily Ryan,
Pascua Yaqui Tribe: This legislation is part of a larger package tied to the proposed 2021 Gaming Compact
Amendment, our support is conditional on the signing of the 2021 Gaming Compact Amendment.; John Oliver,
Self: It's silly to give up revenue and then pay to arrest consenting adults for betting.; Hunter Moore, PGA TOUR,
INC.: Representing the PGA Tour; Don Isaacson, AZ LICENSED BEVERAGE ASSN: Support with amendment.; Robert
Dalager, Arizona Cardinals : If necessary; David Miller, Self: Representing PGA Tour
HB2773, spirituous liquor; delivery; off-sale permits
Testified in support:
Michael Gardner, Arizona Restaurant Association; Dan Bogert, AZ RESTAURANT ASSOCIATION; Matt Fulton,
representing self; Mike Williams, DISTILLED SPIRITS OF US INC (DISCUS); Amber Smith, TUCSON METROPOLITAN
CHAMBER OF COMMERCE
Testified as opposed:
Tony Bradley, President and CEO, Arizona Trucking Association; Daryl Chester, representing self; Mark Miller,
representing self; David Delos, representing self; Don Isaacson, AZ LICENSED BEVERAGE ASSN
Support:
Jason Barraza, Associate Director, DIAGEO; Boaz Witbeck, AMERICANS FOR PROSPERITY AZ; Brock Wilson,
representing self; Stephen Shadegg, AMERICANS FOR PROSPERITY AZ; Ashley Donis, representing self; Victoria
Holderbach, AMERICANS FOR PROSPERITY AZ; Angela Williams, representing self; Brenda Garcia, representing self;
Josh Jacobsen, representing self; Beth Cochran , representing self; Angelina Galaviz, representing self
Neutral:
Tom Farley, Wine Spirits Wholesalers Association Of Arizona; Sarah Ashton, representing self; Rob Fullmer, EVENT
PRODUCERS ALLIANCE OF ARIZONA; Camila Alarcon, ARIZONA CRAFT BREWERS GUILD
Oppose:
Michelle Ahlmer, AZ RETAILERS ASSN; Amanda Gray, Arizona Petroleum Marketers Association; Dale Wiebusch,
MARICOPA, CITY OF; Steve Gorman-Hackstadt, representing self; Lisa Tesnear, representing self; William Harris,
representing self; Gianna Elms, representing self; Trish Hart, AZ FOOD MARKETING ALLIANCE
All Comments:
Matt Fulton, Self: wishing to speak Thank you Representative Weninger! Matt Fulton The Whining Pig; Angela
Williams, Self: | would like to see the fees to allow this be reduced. Bars/restaurants are hit the hardest by Covid
and this will be a way for them to stay in business-don't charge them too much please (or not at all).; Josh
Jacobsen, Self: Please support this bill with a yes vote.; Beth Cochran , Self: | am requesting a YES vote to this Bill as
a restaurant executive who needs all avenues of revenue to keep open for business.; Tony Bradley, Arizona
Trucking Association: ATA opposes the additional regulatory requirements established under this bill for third party
delivery services; Daryl Chester, Self: This is a bad bill. Cocktails do not need to be sold to go and Restaurants do
not need to be selling cocktails to go.; Amanda Gray, Arizona Petroleum Marketers Association: We understand
the hardships that restaurants are going through during this challenging time, but we do not support this as a
permanent change.; Gianna Elms, Self: Bad for mental health, business, & will increase DUI related fatalities. Stats
prove it in other states. Don't legalize ROADIES just to bailout restaurants & legitimize the Gov's illegal executive
order! I'm a daughter of a drunk. COVID is no excuse!; Sarah Ashton, Self: Uber is changing position to neutral
ARIZONA STATE LEGISLATURE
Fifty-fifth Legislature - First Regular Session
COMMITTEE ATTENDANCE RECORD
COMMITTEE ON COMMERCE
CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: | Steve Kaiser
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Attachment ~~
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
Gs A aS SE
HB 2772: fantasy sports betting; event wagering.
Sponsor: Representative Weninger, LD 17
Committee on Commerce
Overview
An emergency measure that establishes laws governing fantasy sports contests and event
wagering.
History
A person is prohibited from engaging in any bet or wager with respect to the results of any race,
sporting event, contest or other game of skill or change except for amusement or regulated
gambling. Regulated gambling is gambling conducted in accordance with a Tribal-State Gaming
Compact or gambling that is operated and controlled in accordance with statute or rule of this
state. (Title 13, Chapter 33)
Provisions
Arizona State Lottery Commission (Commission) (Sec. 1)
1. Specifies the results of any gaming activity conducted pursuant to the 2021 Tribal-State
Gaming Compact Amendments may not be used as a method of selecting winning tickets or
shares by the Commission.
2, Allows the rules adopted by the Commission to include the licensing of authorized keno
locations, including the persons that control the business or other activity conducted at a keno
location.
3. Authorizes, upon the date on which specified conditions are met, the Commission to establish
and operate a single electronic keno game and a single mobile draw game on a centralized
computer system controlled by the lottery.
a) Prescribes certain restrictions in conducting an electronic keno and mobile draw game,
including the frequency of keno game draws, number of authorized keno locations, play
styles and wagering options a mobile draw game may offer and user interface depictions.
4. Defines additional wagering facility, authorized keno location, electronic keno game, fraternal
organization, mobile draw game, other event, sports event and veterans’ organization.
2021 Compact Trust Fund (Trust Fund) (Sec. 2)
5. Establishes the Fund for the exclusive purposes of mitigating impacts to Indian tribes from
gaming authorized by the 2021 Gaming Compact Amendment and providing economic
benefits to beneficiary tribes.
6. Specifies the Trust Fund consists of contributions from Indian tribes designated in the 2021
Gaming Compact Amendment, excluding contributions made to the Arizona Benefits Fund.
7. Directs the Arizona Department of Gaming (ADG) to administer the Trust Fund,
( Prop 105 (45 votes) O Prop 108 (40 votes) Emergency (40 votes) 1 Fiscal Note
HB 2772
Page 1 Commerce
Attachment yt
Initials _
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Initlals _
Requires the state treasurer to hold any monies in trust.
a) Allows the state treasurer to invest and divest Trust Fund monies
Specifies the beneficiaries of the Trust Fund.
Requires Fund monies to be disbursed exclusively for prescribed purposes and exempts the
Fund from lapsing of appropriations.
Directs ADG to annually report, by September 30, to the governor, legislature and each tribe
that has executed a 2021 gaming compact amendment that discloses all monies deposited in
and disbursed from the Trust Fund during the prior FY.
Defines 20217 gaming compact amendment.
Fantasy Sports Contests; Licensure (Sec. 3)
Requires a person to be licensed as a fantasy sporis contest operator (Operator) in order to
offer fantasy sports contests.
a) Allows a person to offer fantasy sports contests provided specified criteria are met.
Authorized an Indian tribe that conducts class iI] gaming to offer and conduct fantasy sports
contests without an Operator license provided certain conditions are met.
Specifies ADG has jurisdiction over persons conducting a fantasy sports contest.
a) Allows ADG to adopt rules and prescribe penalties relating to conducting a contest.
Requires a person to submit an application, along with required documentation, to ADG for
licensure.
a) Specifies an applicant must submit a current photograph, the required fee and a full set of
fingerprints.
b) Delineates the required documentation an applicant must submit.
Permits ADG to require a holding or management company or any other person it considers
sufficiently connected to the Operator to obtain a license if the license is necessary to preserve
the integrity of contests and protect contest players.
Specifies the Operator license is valid for two years and maybe renewed biennially.
a) Permits ADG to investigate a licensee to ensure compliance.
b) Directs ADG to establish license and renewal fees.
i. Allows ADG to assess investigative costs if the cost of the licensure investigation
exceeds the amount of the initial license or renewal fee.
Instructs ADG to conduct the necessary background investigation to determine if the applicant
meets the qualifications for licensure.
a) Requires ADG to issue the license or deny the application after completion of the
background investigation.
b) Stipulates if the application was denied, ADG must send a statement setting forth the
grounds for denial to the applicant.
Operator Prohibitions, Procedures and Responsibilities
Prohibits an Operator from employing a person, or requires the termination of an employed
person, if determined that the person meets specified criteria.
Requires an Operator, as a condition of licensure, to submit to, and receive approval for,
commercially reasonable procedures and internal controls intended to:
a) Prevent the Operator or any specified person from participating in a fantasy sports contest
offered to the public;
HB 2772
Page 2 Commerce
22.
23.
24.
25,
26.
27.
28.
29,
30.
Initials _
b) Prevent the employees of the Operator from sharing protected information with 3*_parties
unless the information is made publicly available;
c¢) Prevent participants in an athletic event from participating in a fantasy sports contest that
is based on the athletic event;
d) Establish the number of entries a single fantasy sports contest player may enter in a single
contest and take reasonable steps to prevent the submission of more than allowable
number of entries;
e) Identify each highly experienced player by attaching a symbol to the player's username;
f) Offer some fantasy sports contests that are open oOnly to players other than highly
experienced players;
g) Either: 1) segregate the deposits in the fantasy sports contest player's accounts from
operational money, or 2) maintain certain types of monetary reserves which the aggregate
amount exceeds the total dollar value amount of deposits in the players’ account;
h) Ensure compliance with applicable state and federal requirements to protect the privacy
and online security of a contest players and the player's account; and
i) Otherwise ensure the integrity of fantasy sports contests.
Requires an Operator to comply with submitted and approved procedures and internal
controls.
a) Allows an Operator to make technical adjustments to its procedures and internal controls
under certain conditions.
b) Asserts the submitted procedures are confidential and privileged.
Instructs an Operator, by July 1 of each year, to contract with a certified public accountant to
perform an independent audit of the financial condition of the Operator's total operation for
the previous FY to ensure compliance.
a) Requires the Operator to submit the audit to the ADG.
b) Specifies the results of the audit are confidential and privileged.
Directs an Operator to prohibit an individual who is under the age of 21 from participating in a
fantasy sports contest.
Outlines certain Operator prohibitions which include allowing the use of a script that provides
a player with an unfair competitive advantage and using false, deceptive or misleading
advertising that is not based on fact.
Prohibits a fantasy sports contest from being offered on, at or from any kiosk or machine open
to public use and physically located in:
a) A retail business location, bar, restaurant or other commercial establishment; or
b) A place of public accommodation, with an exception provided for a fraternal organization,
veterans' organization or a licensed racetrack.
Provides an exception from certain prohibitions to a federally recognized Indian tribe operating
under its Tribal-State Gaming Compact and any amendments.
Problem Gambling
Requires an Operator to develop a procedure to inform fantasy sports contest players who
have a problem with gambling that help is available.
Directs ADG and an Operator to comply with specified requirements to allow problem
gamblers to voluntarily exclude themselves from fantasy sports contests statewide.
Prohibits an Operator to pay any prize or award to a person who is on the ADG's self-exclusion
list.
HB 2772
Page 3 Commerce
31,
32.
33.
34,
35,
36.
37.
38.
39.
40,
41.
42,
initials _
a) Requires any prize or award by such a person to be forfeited and donated to the ADG's
division of problem gambling.
b) Asserts the ADG's self-exclusion list is not open for public inspection.
Direct an Operator to develop and maintain a program to mitigate and curtail compulsive play.
Arizona Department of Gaming
Directs ADG to adopt rules to implement Fantasy Sports Contest laws and outlines criteria to
be included in the rules.
Operator Requirements
Requires a licensed Operator to report any change to ownership information within 30 days
of the changes effective date.
a) Specifies ADG determines the license validity due to the change.
Directs the Operator to retain and maintain all required records for at least 3 years.
a) Requires the records be organized in a manner that enables the Operator to provide
them to ADG.
b) Specifies the records are confidential and privileged.
Requires the Operator, prior to paying a person any prize or award, to identify and determine
if the person has any tax liabilities or setoff obligations from the information provided by certain
state agencies.
a) Stipulates any prize or award will be first used against such tax liabilities or obligations
with any remaining monies awarded to the player.
b) Provides a priority list for instances of the person has multiple liabilities.
Revocation, Suspension or Denial of License
Prescribes conditions and criteria in which ADG may revoke, suspend or deny a license.
Asserts, by applying for a license, an applicant agrees to be subject to state jurisdiction as
necessary to determine qualifications to hold the license.
Prohibits the applicant from withdrawing an application written permission and ADG from
unreasonably withholding such permission.
Defines career offender, career offender organization and occupational manner or context.
Violations and Penalties
Proscribes and prevents licensure for the following:
a) Offering a Fantasy Sports Contest if unlicensed;
b) Knowingly falsifying statements on an application for an Operator license; and
c) Knowingly providing false testimony to ADG.
Establishes the following penalties for violations of the proscriptions:
a) For the first or second violation, Class 3 misdemeanor.
b) For a third or subsequent violation, Class 1 misdemeanor.
Permits ADG, for violating Fantasy Sports Contest laws, to:
a) Issue a cease and desist order and to obtain injunctive relief against violators;
b) Impose a civil penalty of up to $10,000; and
c) Suspend, revoke or restrict the license
Fees
HB 2772
Page 4 Commerce
43. Directs ADG to establish a fee for the privilege of operating a fantasy sports contest that is
not less than the highest percentage of revenue share that an Indian tribe pays to the state.
a) Requires an Operator to report to ADG and pay from its monthly fantasy sports contest
adjusted revenues
b) Exempts certain individuals.
c) Specifies the fee is due by the 25" of each month for deposit into the Fantasy Sports
Contest Fund (Contest Fund).
44. Assigns liability to Operator's who fail to pay the required fees and established a penalty for
nonpayment of 5% per month with a maximum penalty of 25% of the amounts due.
a) Specifies monies collected from penalties are deposited into the Contest Fund
Fantasy Sports Contest Fund
45, Establishes the Contest Fund which consists of monies deposited from the fee established for
the privilege of operating a fantasy sports contest
a) Specifies Contest Fund is administered by ADG and is subject to legislative appropriation.
46. Requires the State Treasurer to invest and divest monies in the Contest Fund and credit
revenues to the Contest Fund.
47. Prohibits ADG from spending more than 10% of monies in the Contest Fund on its annual
costs of regulation and enforcement.
a) Requires ADG to transfer any remaining monies to the state GF.
Miscellaneous; Fantasy Sports Contest
48. Contains a conditional enactment clause regarding the effective date of Fantasy Sports
Contests laws.
49, Defines pertinent terms relating to Fantasy Sports Contest flaws.
Event Wagering (Sec. 4)
50. Directs ADG to enforce and supervise compliance with !aws and rules relating to the regulation
and control of event wagering.
a) permits ADG to adopt rules regarding event wagering
51. Requires ADG to evaluate all applicants to determine suitability for issuing specified licenses,
license renewals and to charge and collect all event wagering related fees.
52. Permits ADG to deny, revoke or suspend licenses or renewals and to deny requests to
withdraw license applications.
53. Requires ADG to conduct background checks and to monitor and conduct periodic audits, of
specified operators and providers.
54. Specifies hearings to be conducted pursuant to Uniform Administrative Hearing Procedures
laws.
a) Allows a party aggrieved by a final order or decision of the ADG to seek judicial review.
55. Instructs ADG to oversee event wagering and develop standards and procedures as
prescribed by the director of ADG.
a) Includes certain standards and procedures which ADG must establish and enforce.
56. Permits ADG to adopt rules authorizing event wagering operators to offset loss and manage
risk using liquidity pools under certain conditions.
Event Wagering; Licensure
HB 2772
Initials _ Page 5 Commerce
57. Prohibits a person from offering any activity connected to event wagering unless obtaining all
necessary licenses.
58. Designates a wager placed by a participant that is received by an event wagering operator as
gambling or gaming.
59. Outlines the applicability of Event Wagering laws.
a) Species Event Wagering statute does not apply to event wagering conducted exclusively
on Indian lands when the individual who places the wager is physically present on said
lands.
b) Prohibits an event wagering operator from accepting any wager from an individual who is
physically on Indian lands.
60. Restricts a person from providing event wagering devices in a public place of accommodation
to enable individuals to place wagers except as provided by Event Wagering statute.
a) Exempts an event wagering operator aggregating, providing or making available event
wagering devices within its own facility.
61. Specifies that intermediate routing of electronic data does not determine the location or
locations in which the wager is conducted.
62. Allows an event wagering operator to use more than one event wagering platform.
63. Stipulates only an event wagering operator may process, accept, offer or solicit wagers.
64, Mandates that the event wagering operator clearly display its or and affiliates brand on event
wagering platforms it uses.
a) Allows the event wagering operator to have the brand of the platform that it uses be the
name and logos of an event wagering platform provider if the platform also clearly displays
the event wagering operator trademarks and logos or that of an affiliate.
65. Outlines the limitations on the number of event wagering operator licenses that may be issued.
66. Outlines the applicants eligible to receive an event wagering operator license.
67. Requires a person to apply for an event wagering license to ADG.
a) Delineates certain information to be included in the application.
68. Asserts any applicant for licensure agrees to be subject to state jurisdiction as necessary to
determine qualifications to hold the license.
69, Specifies a certain event wagering operator licensee may offer event wagering through:
a) An event wagering facility within a five-block radius of the event wagering operator's sports
facility; and
b) A mobile platform as specified by ADG.
70. Specifies an event wagering license is valid for five years provided the licensee submits an
annual license fee, maintains certain qualifications and complies with governing laws and
rules.
71. Allows a licensee to renew its license by applying to ADG.
a) Prohibits the renewal of a license if ADG determines the event wagering operator is in
noncompliance with rules and laws.
b) Directs a licensee to submit the nonrefundable annual license and application fees with
the renewal application.
72. Prohibits a person from obtaining more than one event wagering operator license.
HB 2772
Initials _ Page 6 Commerce
73. Allows a management services provider to offer services to more than one event wagering
74,
75,
76.
77.
78,
79.
80.
81.
82.
83.
84.
85.
86.
87,
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89,
operator.
Instructs ADG to conduct the necessary background investigation to determine if the applicant
meets the qualifications for licensure.
a) Requires ADG to issue the license or deny the application after completion of the
background investigation.
b) Stipulates if the application was denied, ADG must send a statement setting forth the
grounds for denial to the applicant.
Authorized ADG to conduct additional background investigations at any time while the license
remains valid.
a) Specifies licensure does not create a right of employment or continued employment.
Prohibits an event wagering operator from employing a person, or requires the termination of
an employed person, if determined that the person meets specified criteria.
Requires ADG, within 30 days after receipt of a complete application, to issue a license unless:
a) The background check discloses criminal history, or
b) Other grounds for disqualification are apparent on the face of the application.
Specifies ADG will review and approve or deny an application in accordance with statutory
Hearing Procedures.
Requires the amount of the application fee be credited toward the licensee’s license fee and
the remission of the balance of the initial license fee to ADG by the licensee.
Directs fees collected from licensees be deposited in the Event Wagering Fund for paying the
actual operating and administrative expenses incurred for event wagering.
Requires licensees to give ADG a written notice within 30 days after a material change is
made to information provided in the license or renewal application.
Exempts Indian tribes operating event wagering exclusively on Indian lands from licensure
requirements.
Provides requirements for displaying an event wagering license.
Requires ADG to keep all related data and documents used in the course of review or
investigation of a license application or renewal confidential.
Prohibits the transfer of a license without prior ADG approval.
a) Directs ADG to ensure there is no gap in validity of licenses.
License Revocation, Suspension and Denial
Establishes criteria for the revocation, suspension or denial of a license.
Entitles an applicant or holder of license to a full hearing on any final action by ADG that can
result in revocation, suspension or denial.
a) Mandates the hearing be conducted in accordance with statutory Hearing Procedures.
Allows ADG to summarily suspend any license in cases of an immediate threat to public
health, safety or welfare.
Defines career offender, career offender organization and occupational manner or context.
Limited Event Wagering Operator Licenses
HB 2772
Initials _ Page 7 Commerce
90.
91,
92.
93,
94.
95.
96.
97.
98.
99.
Allows an event wagering operator to partner with a racetrack enclosure or additional
wagering facility for obtaining a limited event wagering license only at one specific physical
location
a) Caps, to a maximum of 10, limited event wagering licenses issued to authorize event
wagering at 10 specific physical locations.
Prescribes the necessary information to be provided in a limited event wagering license
application.
Outlines the conditions required to be met for the issuance ofa limited event wagering license.
Specifies a limited event wagering license allows the licensee to conduct event wagering only
in accordance with Event Waging law and rules.
Requires a limited event wagering licensee to be licensed prior to the commencement of
operation and every two years thereafter.
a) Specifies the license must include each principal, primary management official, and key
employees.
Directs ADG to deposit fees collected from licenses into the Event Wagering Fund.
Defines additional wagering facility.
Supplier License
Allows ADG to issue a supplier license to a qualified person for specified conditions.
Permits ADG to accept a license issued by another jurisdiction with similar licensure
requirements and evidence of the applicant's satisfaction of those requirements.
Allows ADG to adopt rules that establish additional requirements for suppliers and equipment.
100. Requires an applicant to demonstrate that the equipment, system or services it offers to
101.
102.
103.
104,
105.
Initials _
event wagering operators conform ADG standards and allows ADG to accept previous
approval by another jurisdiction provided requisite evidence is available.
Directs the applicant to pay a nonrefundable license and application fee to ADG.
a) Specifies the license is valid for two years.
Instructs ADG to grant a renewal of a license provide the renewal applicant meets specified
requirements.
a) Directs ADG to deposit the fees collected from licensees in the Event Wagering Fund,
Requires a supplier to submit a list of all equipment and services sold, delivered or offered
to an event wagering operator to ADG.
a) Requires the equipment and services be tested and approved by an independent testing
laboratory.
Permits an event wagering operator or a limited event wagering licensee to continue use of
supplies acquired from a licensed supplier, even if that supplier's license has expired or is
canceled unless an identified defect exists.
Management Services Provider License
Allows an event wagering operator to contract with a licensed management services
provider (Provider) to conduct event wagering.
a) Permits a Provider to provide services to more than one licensed event wagering
operator or licensed limited event operator.
HB 2772
Page 8 Commerce
106
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117,
118,
Initials _
. Requires applicants for Provider licenses to meet all requirements and pay a nonrefundable
license and application fee.
a) Allows ADG to adopt rules establishing additional requirements.
Permits ADG to accept a license issued by another jurisdiction with similar licensure
requirements and evidence of the applicant's satisfaction of those requirements.
Directs ADG to deposit fees collect form licenses in the Event Wagering Fund.
Stipulates Provider licenses must be renewed every two years to licensees who continue
compliance and pay the renewal fee.
License Fees
Instructs ADG to establish and collect fees for applications, initial licenses and renewals for:
a) event wagering operators; b) limited event wagering operators; c) management services
providers; and d) supplies.
Stipulates if actual costs incurred to investigate the background of an applicant exceed the
associated fees paid, those costs may be assessed to the applicant.
a) Requires full payment prior to license issuance
b) Permits ADG to require applicants to post a bond sufficient to cover anticipated costs of
background investigations.
License Restrictions & Prohibitions
Prohibits specified persons or their immediate family from applying for or obtaining a license.
Establishes prohibited activity of a licensee.
Specifies first violation offense is a Class 3 misdemeanor and a second or subsequent
offense is a Class 1 misdemeanor.
ADG; Financial Requirements
Instructs ADG to establish the following:
a) A bond amount in escrow and the amount of cash that must be kept on hand to ensure
that adequate reserves exist for payouts;
b) Insurance requirements for licensees;
¢) Minimum requirements by which licensees must exercise effective control over internal
fiscal affairs;
d) Internal and independent audit requirements;
e) Financial report submission procedure;
f) Designation of confidential or proprietary information;
g) Systems for mitigation of fraud, cheating or money laundering; and
h) Post-employment restrictions necessary for the maintenance of integrity of the event
wagering industry.
Allows the licensee to maintain the bond at any bank or other ADG approved entity.
a) Requires the licensee to be the beneficiary of any interest accrued on bonds.
Authorized Event Wagering
Asserts the operation of event wagering is lawful only when conducted in accordance with
Event Wagering laws and rules.
Allows wagers on racing meetings or simulcasted races be made, offered or received
through specified means.
HB 2772
Page 9 Commerce
119,
120.
121.
122.
123.
124.
125,
126.
127.
128.
129.
Instructs each event wagering operator to adopt and adhere to a written, comprehensive
policy that outlines House rules for accepting of wagers and payouts.
a) Stipulates the policy and rules be approved by ADG and be readily available to bettors.
Directs the Department adopt rules regarding: 1) governing the acceptance of wagers and
payouts in excess of $10,000; and 2) reporting requirements that comply with the federal
Bank Secrecy Act and Patriot Act and laws and rules governing reporting suspicious wagers.
Deems wagers placed in accordance with Event Wagering statutes to be an enforceable
contract under law.
Requires event wagering operators to exclusively use official league data for live betting
unless the operator can demonstrate that the governing body of a sport or sports league,
organization or association or other entity cannot provide a feed of such data.
Prohibited Wagers
Prohibits wagering on:
a) Injuries, penalties and other types of event wagering that are contrary to law; and
b) Individual actions, events, occurrences or nonoccurrences to be determined during a
collegiate sports event, including the performance or nonperformance of a team or
individual participant during a sports event.
i. Stipulates this does not prohibit wagers on the overall outcome of a collegiate sports
events or seasonal awards based on a player's cumulative play.
Restricts an event wagering operator to offer only parlay and proposition bets of the type or
category prescribed by ADG.
a) Requires ADG to prescribe the types of categories of parlay and proposition bests that
may be offered.
Allows an event wagering operator or specified entity to submit to ADG a written request to
prohibit a type or form of event wagering or a category of persons from wagering, there is a
belief that such event wagering is contrary to public policy, unfair, or perceived to degrade
the integrity of the industry.
a) Stipulates such a request provides a reasonable amount of time for ADG to conduct due
diligence before decision-making.
Directs ADG to review prohibitive requests to determine if good cause exits to grant the
request.
a) Requires ADG to see input from licensee unless the emergency nature does not provide
sufficient time.
b) Directs ADG to respond prior to the start of the event, or as soon as practicable.
Reporting Prohibited or Suspicious Conduct
Requires all licensees to immediately report to ADG and the relevant sports governing body
any information relating to outlined suspicious or prohibited activity.
Directs licensees to report to ADG, in real time and at the account level, information
regarding a bettor, and the amount, type, time, location and outcome of the bet.
a) Specifies such information must be submitted in the form and manner established by
ADG,
Requires licensees to share real-time information for wagers on sports events if the sports
governing body has notified ADG that such information is necessary and desirable.
a) Allows such information to be shared in anonymized form and restricts use to integrity
purposes.
HB 2772
initials _ Page 10 Commerce
430. instructs ADG and licensees to make commercially reasonable efforts to cooperate with
investigations.
431. Requires ADG to establish a hotline or other method that allows any person to confidentially
report information about prohibited conduct.
132. Directs ADG to investigate allegations and refer to prosecutorial entities prohibited conduct.
133. Asserts that the identity of any reporting person shall remain confidential unless disclosure
is authorized by that person or referral to a prosecutorial entity.
134. Requires ADG to notify the appropriate sport's governing body if it receives a complaint of
prohibited conduct by an athlete.
135, Allows ADG to provide or facilitate access to information regarding betting and data files
relating to wagers upon notification by a sports governing body of an official investigation in
conduct into the a person or persons who are prohibited from participating in wagering or
are believed to have taken action that affects the integrity or perceived integrity of the sport
it governs.
a) Specifies any information obtained by a sports governing body be kept confidential
unless the information has been made public through criminal proceeding or by court
order.
Event Wagering Fund
136. Directs ADG to establish a fee for the privilege of operating event wagering that is not less
than the highest percentage of revenue share that an Indian tribe pays to the state.
a) Grants the event wagering operator the option to choose either the cash accrual or
modified accrual basis method for accounting for purposes of calculating the amount of
the fee owed.
b) Specifies the fee is due by the 25" day of the month following the calendar month in
which the adjusted gross event wagering receipts were received and the obligation was
due.
437. Establishes the Event Wagering Fund which is administered by ADG.
a) Requires ADG to deposit on monies collected pursuant to Event Wagering law into the
fund.
b) Transfers all remaining monies in the fund on the 25" day of each month to the state GF.
c) Permits the state treasure to invest and divest monies in the fund and credits revenues to
the fund,
138. Prohibits ADG from spending more than 10% of monies on the annual costs of regulation
and enforcement and reverts remaining monies to the state GF.
Problem Gambling
139. Requires a licensee to develop a procedure to inform players who have a problem with
gambling that help is available.
1440. Directs ADG and a licensee to comply with specified requirements to allow problem
gamblers to voluntarily exclude themselves from event wagering statewide.
141, Prohibits event wagering operators, commercial sports license holders and limited event
wagering operators to pay any prize or award to a person who is on the ADG's self-exclusion
list.
a) Requires any prize or award by such a person to be forfeited and donated to the ADG's
division of problem gambling.
b) Asserts the ADG's self-exclusion list is not open for public inspection.
HB 2772
Initials _ Page 11 Commerce
142.
143.
144.
145.
146,
147.
148.
149.
450.
151.
152.
153.
154.
Initials _
Directs event wagering operators, commercial sports license holders and limited event
wagering operators to develop and maintain a program to mitigate and curtail compulsive
play.
Requires the event wagering facility operator, prior to paying a person any jackpot, prize or
award, to identify and determine if the person has any tax liabilities or setoff obligations from
the information provided by certain state agencies.
a) Stipulates any prize or award will be first used against such tax liabilities or obligations
with any remaining monies awarded to the player.
b) Provides a priority list for instances of the person has multipte liabilities.
Specifies statute relating to problem gambling does not waive an Indian tribe's sovereign
immunity from a suit by a person listed and whose winnings are withheld for an identified
obligation.
Miscellaneous; Event Waging
Specifies Event Wagering law does not prohibit a sports governing body from entering into
agreements with licensees in which the sports governing body may share in the amount bet
from sports wagering.
a) Specifies the sports governing body is not required to obtain a license to lawfully accept
such amounts.
Directs ADG to prepare and submit, by September 1, to the executive and legislature an
annual report containing the following:
a) Number of active Licensees by type;
b) Aggregate Gross and Net Revenue of all Licensees;
c) Number of investigations conducted; and
d) Financial impact of the event wagering industry.
i. Allows the report to be submitted with other information required to be submitted and
maybe submitted electronically.
Instructs a licensed event wagering operator and management services provider, by July 4
of each year, to contract with a certified public accountant to perform an independent audit
on the financial condition of the operator's and provider's total operation for the previous FY
to ensure compliance.
a) Requires audit results be submitted to the ADG within a specified amount of time.
b) Specifies the results of the audit are confidential and privileged.
Defines pertinent terms relating to Event Wagering laws.
contains a conditional enactment clause regarding the effective date of Event Wagering
aws,
Miscellaneous; Further Provisions
Includes a definition for event wagering and fantasy sports contest within the Gambling
statutes. (Sec. 5)
Excludes fantasy sports contests from the definition of gambling, gamble or wager. (Sec. 5)
Includes event wagering that is conducted pursuant to Event Wagering statute as regulated
gambling. (Sec. 5)
Exempts, from statute relating to prohibitions on betting and wagering, persons and
conducts as prescribed in Event Wagering statutes. (Sec. 6)
Exempts ADG from rule making for one year after the effective date of this Act. (Sec. 7)
HB 2772
Page 12 Commerce
155. Contains a legislative intent clause. (Sec. 8)
HB 2772
Initials _ Page 13 Commerce
Oo Oo nN MD OT BR WH PR eH
MD NM NM MD HD we wee ee me oe Re oe
- ON FEF OO &GCaoONOakR ONES
Commerce
Fifty-fifth Legislature
H.B. 2772
First Regular Session
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2772
(Reference to printed bill)
Page 6, line 36, after "SHALL" insert “ISSUE A"
Page 7, line 14, after the second quotation mark insert “:
(a)"
Between lines 20 and 21, insert:
"(b) INCLUDES EVENTS INVOLVING MOTOR VEHICLES."
Lines 37, 40 and 41, after "ATHLETES" insert "OR PARTICIPANTS"
Page 8, line 10, after "SYSTEMS" insert "EXCEPT AS OTHERWISE PROVIDED BY THIS
CHAPTER"
Page 11, line 11, after the first comma insert “ON REQUEST,"
Page 12, line 22, strike "IF IT IS DETERMINED" insert "THAT MEETS ANY OF THE
FOLLOWING CRITERIA AS IDENTIFIED"
Line 23, after "DEPARTMENT" strike remainder of line
Line 24, strike "OF THE FOLLOWING CRITERIA"
Page 17, strike lines 21 through 43, insert:
"E. IF A FANTASY SPORTS CONTEST OPERATOR IS REQUIRED TO FILE A FORM
1099-MISC OR W2-G OR OTHER SUBSTANTIALLY EQUIVALENT FORM WITH THE UNITED
STATES INTERNAL REVENUE SERVICE FOR A PERSON WHO IS IDENTIFIED BY THE
ARIZONA SUPREME COURT, THE DEPARTMENT OF ECONOMIC SECURITY DIVISION OF
CHILD SUPPORT ENFORCEMENT, THE DEPARTMENT OF ECONOMIC SECURITY SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM AND ASSISTANCE OVERPAYMENT OR THE ARIZONA
HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION AS OWING AN OBLIGATION,
THE FANTASY SPORTS CONTEST OPERATOR SHALL WITHHOLD THE AMOUNT OF
OBLIGATIONS OWED FROM THE PERSON'S ACCOUNT AT THE TIME THE FORM 1099-MISC
OR W2-G OR A SUBSTANTIALLY EQUIVALENT FORM IS ISSUED, IF THE FANTASY SPORTS
Attachment_4_
Adopted VA it of Verbals
Failed Withdrawn
Not Offered Analysts Initials
So Se nN DH oO FP WY MH FS
CQO WD Ww DMO Me MS MB MF MT MT MT NH PS
Mm fe
House Amendments to H.B. 2772
OPERATOR HAS BEEN NOTIFIED BY THIS STATE OF THE OBLIGATION. AT THAT TIME,
THE FANTASY SPORTS CONTEST OPERATOR SHALL TRANSMIT THE AMOUNT WITHHELD FOR
OBLIGATIONS TO THE DEPARTMENT OF GAMING AND SHALL ALSO TRANSMIT ANY
INFORMATION REQUESTED BY THE DEPARTMENT OF GAMING. THE DEPARTMENT OF
GAMING SHALL PROVIDE INFORMATION TO THE FANTASY SPORTS CONTEST OPERATOR OF
PERSONS WITH OUTSTANDING OBLIGATIONS, IF THE IDENTIFIED PERSON IS ALSO
SELF-EXCLUDED, TAX LIABILITIES AND SETOFF OBLIGATIONS SHALL BE SATISFIED
BEFORE ANY MONIES ARE DONATED TO THE DEPARTMENT OF GAMING DIVISION OF
PROBLEM GAMBLING PURSUANT TO SECTION 5-1206. IF THE IDENTIFIED PERSON HAS
MULTIPLE LIABILITIES, THOSE LIABILITIES SHALL BE SATISFIED IN THE FOLLOWING
ORDER:
1. CHILD SUPPORT ENFORCEMENT.
2, SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM AND ASSISTANCE
OVERPAYMENT.
3. THE ARIZONA SUPREME COURT.
4. THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION.”
Page 20, line 19, strike "NOT LESS THAN" insert "AT LEAST"
Page 21, line 7, after “CHAPTER" insert “UNLESS OTHERWISE PROVIDED BY THE
LEGISLATURE”
Strike lines 26 through 31, insert:
"1, “ADJUSTED GROSS EVENT WAGERING RECEIPTS" MEANS AN EVENT WAGERING
OPERATOR'S GROSS WAGERING RECEIPTS, EXCLUDING VOIDED BETS MINUS WINNINGS
PAID TO AUTHORIZED PARTICIPANTS AND ANY FEDERAL EXCISE TAX. A DEDUCTION
FROM ADJUSTED GROSS EVENT WAGERING RECEIPTS EQUAL TO THE VALUE OF FREE BETS
OR PROMOTIONAL CREDITS REDEEMED BY AUTHORIZED PARTICIPANTS MAY BE TAKEN AS
PROVIDED IN THIS PARAGRAPH. THE DEDUCTION UNDER THIS PARAGRAPH FOR FREE
BETS OR PROMOTIONAL CREDITS IS LIMITED TO THE FIRST FIVE YEARS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION AS FOLLOWS:
(a) FOR YEARS ONE AND TWO, A DEDUCTION NOT TO EXCEED TWENTY PERCENT
OF AN EVENT WAGERING OPERATOR'S GROSS WAGERING RECEIPTS.
(b) FOR YEAR THREE, A DEDUCTION NOT TO EXCEED FIFTEEN PERCENT OF AN
EVENT WAGERING OPERATOR'S GROSS WAGERING RECEIPTS.
-2-
House Amendments to H.B. 2772
(c) FOR YEARS FOUR AND FIVE, A DEDUCTION NOT TO EXCEED TEN PERCENT
OF AN EVENT WAGERING OPERATOR'S GROSS WAGERING RECEIPTS.
(d) FOR YEAR SIX AND EACH YEAR THEREAFTER, NO DEDUCTION OF FREE PLAY
IS ALLOWED. JANUARY 1 FOLLOWING THE YEAR IN WHICH THE EVENT WAGERING
OPERATOR BEGINS EVENT WAGERING OPERATIONS IS CONSIDERED THE FIRST YEAR OF
EVENT WAGERING FOR THE PURPOSES OF THIS PARAGRAPH, AN EVENT WAGERING
OPERATOR MAY DEDUCT UP TO TWENTY PERCENT OF AN EVENT WAGERING OPERATOR'S
GROSS WAGERING RECEIPTS DURING ANY PERIOD THAT THE OPERATOR CONDUCTS EVENT
9 WAGERING BEFORE JANUARY 1 OF THE FIRST YEAR OF EVENT WAGERING OPERATIONS."
on DA oO B® WO DH FH
10 Page 22, line 3, strike "OPERATION,"
ii Line 7, after "MEANS" insert "EITHER:
12 Ca)"
13 Line 10, strike "PROFESSIONAL SPORTS EVENT BASED” insert “NATIONAL ASSOCIATION
14 FOR STOCK CAR AUTO RACING NATIONAL TOURING RACE"
15 Line 11, strike "“PROMOTER'S"; after “DESIGNEE” insert “OF SUCH AN OWNER,
16 OPERATOR OR PROMOTER”
17 Between lines 12 and 13, insert:
18 "(b) AN ARIZONA INDIAN TRIBE OR AN ENTITY FULLY OWNED BY AN ARIZONA
19 INDIAN TRIBE OR ITS DESIGNEE LICENSED TO OPERATE ONLY MOBILE EVENT WAGERING
20 OUTSIDE THE BOUNDARIES OF ITS INDIAN LANDS AND THROUGHOUT THIS STATE IF IT
21 HAS SIGNED THE MOST RECENT TRIBAL-STATE GAMING COMPACT AND ANY APPLICABLE
22 APPENDICES OR AMENDMENTS. IF AN OWNER, OPERATOR, PROMOTER OR INDIAN TRIBE
23 THAT QUALIFIED FOR AN EVENT WAGERING OPERATOR LICENSE APPOINTS A DESIGNEE,
24 THE DESIGNEE WILL BE CONSIDERED THE EVENT WAGERING OPERATOR AND THE
25 LICENSEE WITH RESPECT TO THE APPLICABLE LICENSE FOR THE PURPOSES OF THIS
26 CHAPTER.“
e7 Line 33, strike "AN EVENT OR" insert "A"; after "SKILL" insert “OR AN EVENT"
28 Page 23, line 27, strike "PGA"; strike "OR" insert "AND"
29 Line 30, after "ORGANIZATION" insert "HEADQUARTERED IN THE UNITED STATES"
30 Page 24, line 36, strike “CONTRACTING” insert "REQUIREMENTS"
House Amendments to H.B. 2772
Page 25, line 4, strike “ANY WINNING PRIZE" insert "A PAYOUT OF WINNINGS THAT
TRIGGERS THE LICENSEE'S OBLIGATION TO FILE A FORM 1099-MISC OR W-2G OR A
SUBSTANTIALLY EQUIVALENT FORM WITH THE UNITED STATES INTERNAL REVENUE
1
2
3
4 SERVICE"
5 Line 10, strike "ITS"
6 Line 11, strike “DESIGNEE”
7 Page 26, line 7, strike "EVENT WAGERING PLATFORM” insert "MANAGEMENT SERVICES"
8
9
Line 11, strike “EVENT WAGERING"
Line 12, strike the first "PLATFORM" insert "MANAGEMENT SERVICES PROVIDER";
10 strike "AN" insert "THE"
11 Between lines 14 and 15, insert:
12 "UW AN OWNER, OPERATOR, PROMOTER OR INDIAN TRIBE THAT QUALIFIES FOR
13 AN EVENT WAGERING OPERATOR LICENSE AND APPOINTS A DESIGNEE TO BE LICENSED
14 AS AN EVENT WAGERING OPERATOR IS NOT RESPONSIBLE FOR THE CONDUCT OF ITS
15 DESIGNEE."
16 Line 25, strike "HOST" insert "HOSTS"
17 Line 26, after "A" strike remainder of line insert "NATIONAL ASSOCIATION FOR
18 STOCK CAR AUTO RACING NATIONAL TOURING RACE"
19 Line 27, strike "THEIR" insert “THE OWNER'S, OPERATOR'S OR PROMOTER'S"
20 Line 31, after “AND" insert "B"
21 Line 32, strike "OF A"
22 Strike line 33, insert a period
23 Page 28, line 29, after "AUTHORIZES" insert “AN EVENT WAGERING OPERATOR
24 IDENTIFIED IN SUBSECTION A, PARAGRAPH 2 OF THIS SECTION, TO OPERATE ONLY
25 MOBILE EVENT WAGERING OR"
26 Line 33, after the first "FACILITY" insert "OR, IN THE CASE OF A DESIGNEE, THE
27 SPORTS FACILITY OR THE DESIGNATING OWNER, OPERATOR OR PROMOTER OF A
28 PROFESSIONAL SPORTS TEAM, EVENT OR FRANCHISE"
29 Page 30, line 3, strike "WITHIN THIRTY DAYS" insert “NOT LATER THAN SIXTY DAYS"
30 Line 7, after the period insert “UNLESS MORE THAN TEN APPLICATIONS FOR EACH
31 TYPE OF LICENSE ARE RECEIVED FOR A PARTICULAR LICENSE TYPE, THE DEPARTMENT
mo Oo ™ DB OH SF WD DP &
RS Re ke
wo mo —§ &
14
15
16
17
18
19
20
21
22
23
24
25
26
House Amendments to H.B. 2772
SHALL ADOPT A PROCESS FOR ENSURING AN EQUAL OPPORTUNITY FOR ALL QUALIFIED
APPLICANTS TO OBTAIN A LICENSE."
Page 34, line 32, strike "LICENSES" insert “LICENSEES
Page 36, line 45, after "RECEIVED" insert "UNLESS OTHERWISE PROHIBITED BY FEDERAL
LAW"
Page 37, line 19, strike the period insert a comma
Line 21, strike "LIVE BETTING" insert “TIER TWO SPORTS WAGER"
Line 24, strike "LIVE BETTING" insert "TIER TWO SPORTS WAGERS"
Page 39, line 35, strike "NOT LESS THAN" insert "AT LEAST"
Page 40, Tine 11, after "C.” insert "UNLESS OTHERWISE DETERMINED BY THE
LEGISLATURE,"
Page 41, lines 30 and 34, after "TAKE" insert "COMMERCIALLY"
Page 42, line 12, after "PERSON" strike remainder of line
Line 13, strike “PERSON'S IDENTIFICATION MUST BE VERIFIED" insert "A PAYOUT OF
WINNINGS THAT TRIGGER THE LICENSEE'S OBLIGATION TO FILE A FORM 1099-MISC OR
W-2G OR A SUBSTANTIALLY EQUIVALENT FORM WITH THE UNITED STATES INTERNAL
REVENUE SERVICE"
Line 15, strike "SET-OFF" insert "SETOFF"
Line 21, after "PERSON" insert “RECEIVES A PAYOUT OF WINNINGS THAT TRIGGER THE
LICENSEE'S OBLIGATION TO FILE A FORM 1099-MISC OR W-2G OR A SUBSTANTIALLY
EQUIVALENT FORM WITH THE UNITED STATES INTERNAL REVENUE SERVICE AND”
Line 22, strike "JACKPOT, PRIZE OR"
Line 23, strike the first “AWARD” insert "WINNINGS"; strike "JACKPOT, PRIZE OR
AWARD" insert "WINNINGS"
Lines 24 and 28, strike "SET-OFF" insert "SETOFF"
Amend title to conform
JEFF WENINGER
2772WENINGER
02/08/2021
11:49 AM
C: LAT
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. HB 2772
DATE February 09, 2021 MOTION: _ D PA
PASS AYE NAY PRESENT | ABSENT
Chaplik VA
Cook V ;
Espinoza /
Fernandez A
Meza Y
Nutt J
Powers Hannley VA
Wilmeth J
Kaiser, Vice-Chairman /
Weninger, Chairman /
i | 0 )
be
APPROVED,
Wr
“JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
COMMITTEE SECRETARY
ATTACHMENT__©
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
a ag eS
HB 2773: spirituous liquor; delivery; off-sale permits
Sponsor: Representative Weninger, LD 17
Committee on Commerce
Overview
Establishes requirements to allow restaurants and bars to conduct sales and delivery of spirituous
liquors off-premises.
History
The Department of Liquor Licenses and Control (Department), which consists of the State Liquor
Board and the Office of the Director (Director) of the Department regulates the manufacture,
distribution and sale of liquor in this state through the issuance of 21 license types or series.
Under current law, it is unlawful for a licensee or employee to knowingly allow spirituous liquor to
be removed from the licensed premises, except in the original unbroken package unless:
4. Itis a bottle of wine that has been partially consumed in conjunction with a purchased meal
and is properly sealed.
2. There is a noncontiguous portion of the licensed premises that is separated by a public or
private walkway or driveway and the liquor is taken from one portion of the premises directly
to the other.
3, The licensee has an appropriate permit that dispenses beer only in a clean container and that
is not for consumption on the premises if:
a. The licensee fills the container at the tap at the time of sale; and
b. the container is sealed and displays a government warning label.(A.R.S. § 4-244).
Spirituous liquor means 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, which produces intoxication, fruits
preserved in ardent spirits, and beverages containing more than one-half of one percent of aicohol
by volume (A.R.S. § 4-101).
Provisions
Spirituous Liquor Delivery; Bar and Restaurant (Sec. 2)
1, Allows a bar (series 6) or a restaurant (series 12) licensee to take orders for the sale and
delivery of spirituous liquor off the licensed premises by telephone, mail, internet or other
means.
a) Spirituous liquor for a bar includes beer, wine or mixed cocktails.
b) Spirituous liquor for a restaurant includes:
i) Mixed cocktail, if the licensee holds a permit allowing for the sale of mixed cocktails
for off premises consumption.
ii) Beer, if the licensee holds a permit allowing for the sale of beer for off premises
consumption.
[1 Prop 105 (45 votes) [1 Prop 108 (40 votes) © Emergency (40 votes) 0 Fiscal Note
HB 2773
Page 1 Commerce
Attachment 4
Initials _
2. Specifies that the transaction is not considered a sale until delivery has been made.
3. Requires the licensee to inform the purchaser of liquor laws relating to minimum age and
identification requirements.
Allows the licensee to maintain a delivery service or contract with one or more licensed third-
party facilitators for delivery of spirituous liquor provided it is loaded at the premises of the
restaurant or bar and delivered within the state.
a) Outlines container labeling requirements.
Asserts the licensee is responsible for any violation law or rules regarding the sale or delivery
of spiritous liquor, except when a violation is attributable to licensed third-party facilitator.
6. Requires deliveries be made by an employee and to a customer who is at least 21 years old.
7. Requires the restaurant or bar licensee or third-party facilitator to collect the full payment of
10.
11.
12.
13.
14.
15.
16,
17.
Initials _
the liquor before the product leaves the premises.
Directs the Director to adopt rules that set operational limits for the delivery of spiritous liquors.
a) Adds any violation based on an act or omission of a licensee’s employee or third-party
facilitator will be mitigated in accordance with statute.
Restaurant License Series 12; Permit to Sell Mixed Cocktails (Sec. 3)
Allows a restaurant applicant or licensee to apply for a permit to sell mixed cocktails off the
licensed premises.
Requires the issuance of the permit only after the Director has determined the convenience
and interest of the community will be substantially served.
a) Specifies after issuance, the permit must be noted on the license and in the records of the
Department.
b) Allows the Department to establish an application and renewal fee.
Stipulates all applicants for the permit and their employees, managers and managing agents
complete alcohol training.
Specifies the Director cannot treat a contracted third-party facilitator’s violation as a violation
by the restaurant.
Bar License Series 6 (Sec. 5)
Specifies the Director cannot treat a contracted third-party facilitator's violation as a violation
by the bar.
Third-Party Facilitator Licensure (Sec. 4)
Allows the Director to issue a third-party facilitator license for the purpose facilitating the
delivery of spiritous liquor.
a) Allows the Director to establish a license and renewal fee and outlines the required content
of the application.
b) Permits the Director the refuse to issue a third-party facilitator license for good cause.
¢) Outlines conditions in which the Director may not issue a license.
Asserts a license is valid for one year and cannot be transferred.
Permits the Director the establish a license renewal fee to be used for administrative costs
associated with the license, auditing and enforcement.
Allows the Director to suspend, revoke or refuse to renew a license for any violation or good
cause or to impose a civil penalty against the licensee for each violation.
HB 2773
Page 2 Commerce
18.
19.
20.
21,
22.
23.
24.
25,
26.
Initials _
a) allows the licensee to appeal the finding or decision of the Director.
b) Specifies the civil penalty imposed is at least $200 but not more than $300. (Sec. 7)
Permits a licensee to deliver beer, wine and mixed cocktails to a consumer on behalf of a bar
or a restaurant.
a) Requires the Director to adopt rules that set age verification and record standards.
Requires all third-party facilitator applicants, licensees and their employees, managers and
managing agents to complete alcohol training.
Fees for Licensure (Sec. 6)
Clarifies the application fee for a permit for a restaurant to sell mixed cocktails off the premises
is set by the Director.
Clarifies the Department may charge a fee for a third-party facilitator license.
a) Prohibits the Department from charging an application fee.
Permits the Director to establish an annual fee for a permit for a restaurant to sell mixed
cocktails off the premises.
Permits the Director to charge a fee for the annual renewal of a third-party facilitator license.
Miscellaneous
Defines mixed cocktail as a drink containing one or more spirituous liquors that contain more
than .5% of alcohol by volume and that are combined at the licensed premises. (Sec. 1)
Excludes, as an unlawful act, to knowingly allow spirituous liquor to be removed from the
licensed premises with respect to a bar licensee that prepares beer, wine or a mixed cocktail,
or a restaurant licensee that holds the appropriate permit and prepares a mixed cocktail and
transfers it to a clean container and is not for consumption on the premises if:
a) the licensee or employee fills the container on the premises; and
b) the container is sealed and displays a government warning label. (Sec. 8)
Makes technical and conforming changes.
HB 2773
Page 3 Commerce
Commerce
Fifty-fifth Legislature
H.B. 2773
First Regular Session
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2773
(Reference to printed bill)
1 Page 11, line 22, after “WINE” insert “, DISTILLED SPIRITS”
2 Page 15, line 44, strike “BEER, WINE AND MIXED COCKTAILS” insert “SPIRITUOUS
3 LIQUOR”
4 Page 16, line 3, strike “BEER, WINE AND MIXED COCKTAILS” insert “SPIRITUOUS
5 LIQUOR”
6 Page 31, line 44, strike “BEER, WINE OR”
7 Page 32, line 7, strike “BEER, WINE OR”
8 Amend title to conform
JEFF WENINGER
2773WENINGER
02/05/2021
03:22 PM
H: PRB/1Ts
Attachment_g__
Adopted vo #of
Failed
Not Offered
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB 2773
DATE February 09, 2021 MOTION: D p Al
PASS AYE NAY PRESENT | ABSENT
Chaplik vA
Cook A VA
Espinoza Y /
Fernandez 4 v
Meza iW
Nutt Y
Powers Hannley VY
Wilmeth v4
Kaiser, Vice-Chairman v4
Weninger, Chairman Y
1 | 3 | 0 |e
Bean —
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
bw Dre rakir
COMMITTEE SECRETARY
ATTACHMENT.
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
ae
HB 2156: appropriations; broadband grants
Sponsor: Representative Espinoza, LD 19
Committee on Commerce
Overview
Appropriates $5,000,000 from the state General Fund in each of the fiscal years (FY) 2022, 2023
and 2024 to the Arizona Commerce Authority (ACA).
History
Broadband service is defined as providing access and transport to the internet, computer
processing, information storage or protocol conversion at a rate of at least one megabit per
second in either the upstream or downstream direction, as established by the Federal
Communications Commission. Broadband service does not include information content or service
applications provided over the access service or any intrastate service that was subject to a tariff
(A.R.S. § 28-7381).
Laws 2019, Chapter 263 appropriated $3,000,000 from the state General Fund for FY 2020 to
the ACA to provide rural broadband grants.
Provisions
1. Appropriates $5,000,000 from the state General Fund in FY 2022, 2023 and 2024 to the ACA
to provide broadband grants. (Sec. 1)
2. Directs the ACA to submit a report to the Joint Legislative Budget Committee on its plan for
distributing the grants on or before January 31 in the years 2022, 2023 and 2024. (Sec. 1)
3. Exempts the appropriations from lapsing. (Sec. 1)
C1 Prop 105 (45 votes) [ Prop 108 (40 votes) © Emergency (40 votes) 0 Fiscal Note
HB 2156
Initials _ Page 1 Commerce
Attachment_/ 0
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __ HB 2156
DATE February 09, 2021 MOTION: D p
PASS NAY PRESENT | ABSENT
>
<
ri
Chaplik Vi
Cook
Espinoza
Fernandez
Meza
Nutt
Powers Hannley
Wilmeth
V4
Kaiser, Vice-Chairman
Weninger, Chairman
el) KYSINNSNKK
o~ 0 0
(9 jy o COMMITTEE SECRETARY
aa,
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT__//
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. AZ 36 7
DATE FEGRUARY 7, HOXA/ MOTION: /7€ £2
PASS AYE NAY PRESENT | ABSENT
Chaplik
Cook
Espinoza
Fernandez
Meza
Nutt
Powers Hannley
Wilmeth
Kaiser, Vice-Chairman
Weninger, Chairman
APPROVED: COMMITTEE SECRETARY
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT. on
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. 2507
DATE Fehiusey Z, xO X/ motion WELD
PASS | AYE NAY | PRESENT | ABSENT
Chaplik
Cook
Espinoza
Fernandez
Meza
Nutt
Powers Hannley
Wilmeth
Kaiser, Vice-Chairman
Weninger, Chairman
APPROVED:
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
COMMITTEE SECRETARY
ATTACHMENT_/.2
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
5S A
HB 2541: telecommunications fund; report; posting
Sponsor: Representative Wilmeth, LD 15
Committee on Commerce
Overview
Requires the Director of the Arizona Department of Administration (ADOA) to post an annual
report on the ADOA’s website.
History
The Telecommunications Program Office (Office) is established within ADOA to enter into a
contract to provide the installation and maintain telecommunication systems and act as Arizona's
agent for telecommunication carrier services to the offices, departments and agencies of this
state. The Office, with the approval of the ADOA Director, can enter into more than one contract
for each service or product not provided by the primary contractor (A.R.S. § 41-71 2).
The Telecommunications Fund (Fund) is established to pay the costs of operating the Office and
ADOA is responsible for administering the Fund. In addition to administering the Fund, ADOA is
required to prepare a report that accounts for all monies deposited in the Fund, the sources of the
monies received for deposit, the purposes for which the monies were used during the preceding
fiscal year and the future spending plans for Fund monies (A.R.S. § 41-713).
Provisions
1, Requires the Director of ADOA to post the annual report of the Fund on ADOA's website.
(Sec. 1)
2. Makes a technical change. (Sec. 1)
©) Prop 105 (45 votes) CO Prop 108 (40 votes) Emergency (40 votes) 1 Fiscal Note
HB 2541
Page 1 Commerce
Attachment [uf
initials _
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB2541_
DATE February 09, 2021 MOTION: DP
PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook WA
Espinoza 4
Fernandez /
Meza /
Nutt /
Powers Hannley J
Wilmeth J
Kaiser, Vice-Chairman /
Weninger, Chairman WA
{2 0 0 0
ary on COMMITTEE SECRETARY
YA
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT_/ 3
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
ergy ee
HB 2544: blockchain and cryptocurrency study committee
Sponsor: Representative Wilmeth, LD 15
Committee on Commerce
Overview
Establishes the Blockchain and Cryptocurrency Study Committee (Committee).
History
Blockchain is a cryptographically secured distributed ledger that records transactions
chronologically, permanently and unalterably.
Blockchain technology is distributed ledger technology that uses a distributed, decentralized,
shared and replicated ledger, which may be public or private, permissioned or permissionless, or
driven by tokenized crypto economics or tokenless. The data on the ledger is protected with
cryptography, is immutable and auditable and provides an uncensored truth (A.R.S. § 44-7061).
Provisions
1. Establishes the 11-member Committee and outlines the Committee membership. (Sec. 1}
2. Directs the Committee to:
Meet as often as the chairperson deems necessary;
Review data on the scope of blockchain and cryptocurrency throughout the country;
Compile an overview of potential legistation;
Solicit ideas and opinions of industry experts on additional legislation; and
Submit a report regarding the Committee's findings and recommendations of legislative
priorities that will foster a positive blockchain and cryptocurrency economic environment
in this state to the Speaker of the House of Representatives and provide a copy to the
Secretary of State by December 31, 2021. (Sec. 1)
3. Terminates the Committee October 1, 2022. (Sec. 1)
o92°078
(1 Prop 105 (45 votes) 2 Prop 108 (40 votes) Emergency (40 votes) 0 Fiscal Note
HB 2544
Page 1 Commerce
Attachment_/@_
Initials _
Oo On NSS DOD oO SF WY MH
Lal gual ee cee eee ee no
A oO B® WO MM F O&O
Commerce
Fifty-fifth Legislature
H.B, 2544
First Regular Session
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2544
(Reference to printed bill)
Page 1, line 3, strike “report” insert “reports”
Line 12, after "company" strike remainder of line
Line 13, strike “trade volume" insert "or the president's or chief executive
officer's designee"
Strike lines 15 through 19, insert:
"3, Three representatives of the cryptocurrency or blockchain space
who may represent private industry in exchanges, payment solutions or
non-cryptocurrency transaction purposes. The speaker of the house of
representatives shall appoint these members."
Renumber to conform
Strike lines 26 and 27
Renumber to conform
Line 40, strike “a" insert “an initial"; after "report" insert ", and on or
before December 31, 2022, submit a final report,"
Line 45, strike "2022" insert "2023"
Amend title to conform
JUSTIN WILMETH
2544WILMETH
02/05/2021
08:08 AM
C: NS
Adoptea V+
Failed
Not Offered.
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB 2544
DATE February 09, 2021 MOTION: DP id
PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook Aa
Espinoza J
Fernandez WA
Meza /
Nutt /
Powers Hannley JS
Wilmeth VY
Kaiser, Vice-Chairman V4
Weninger, Chairman /
q ) 0 /
APPROVED: COMMITTEE SECRETARY
Vann _
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT_ dg .
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
eA TL SSS an
HB 2545: contractor license numbers; advertising; exception.
Sponsor: Representative Wilmeth, LD 15
Committee on Commerce
Overview
Allows a contractor licensee to meet specified posting requirements for certain advertising by
including a website's uniform resource locator (URL) on the advertising.
History
A licensed contractor must post the license number appearing on any license the licensee holds,
preceded by the acronym ROC in: 1) a conspicuous place on premises where work is performed,
2) all written bids submitted by the licensee; and 3) all broadcast, published, internet or billboard
advertising, letterheads and other documents used by the licensee to correspond with customers
or potential customers. The ROC may take disciplinary action for a failure to meet the license
number posting requirements. A licensee's failure to meet the requirements is not grounds for
preventing the award of a contract, voiding an awarded contract, or any other claim or defense
against the licensee (A.R.S. § 32-1124).
Provisions
4. Allows a licensee to meet the license number posting requirements for broadcast, internet or
billboard advertising by including a website's URL that directly links to a website that
prominently displays the licensee's name and license number. (Sec. 1)
2. Requires a licensee to post or place, on all estimates submitted by the licensee, the license
number, preceded by the acronym ROC, of any licenses held by the licensee. (Sec. 1)
3. Makes technical changes. (Sec. 1)
(1 Prop 105 (45 votes) (1 Prop 108 (40 votes) © Emergency (40 votes) H Fiscal Note
HB 2545
Page 1 Commerce
Attachment LF
Initials _
mo Oo VN DBD FT Se WD M FF
ym wR MYM YY Fee Be Bee He ee
> OD PF OFC OUVA aABRAORD ED
Commerce
Fifty-fifth Legislature
H.B. 2545
First Regular Session
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2545
(Reference to printed bill)
Page 2, after line 22, insert:
"Sac, 2, Section 32-1158, Arizona Revised Statutes, is amended to
read:
32-1158, Contract requirements; provision of documents and
receipt at contract signing
A. Any contract in an amount of more than one—thousand—dottars
$1,000 entered into between a contractor and the owner of a property to be
improved shall contain in writing at least the following information:
1. The name of the contractor and the contractor's business address
and license number,
2, The name and mailing address of the owner and the jobsite address
or legal description.
3. The date the parties entered into the contract.
4, The estimated date of completion of al} work to be performed
under the contract.
5. A description of the work to be performed under the contract.
6. The total dollar amount to be paid to the contractor by the owner
for all work to be performed under the contract, including all applicable
taxes.
7. The dollar amount of any advance deposit paid or scheduled to be
paid to the contractor by the owner.
8. The dollar amount of any progress payment and the stage of
construction at which the contractor will be entitled to collect progress
payments during the course of construction under the contract.
Attachment 22.
Adopted a # of Verbal:
Failed Withdrawn
Not Offered Analysts Initials
eo Se NN OO oO Se WD DY
nn a
CN DD ON S&B WMH KF ©
19
House
Amendments to H.B. 2545
9. That the property owner has the right to file a written complaint
with the registrar for an alleged violation of section 32-1154,
subsection A. The contract shall contain the registrar's telephone number
and website address and shall state that complaints must be made within the
applicable time period as set forth in section S3@-ttss 32-1162,
subsection A. The information in this paragraph must be prominently
displayed in the contract in at least ten~potrt TEN-POINT bold type, and
the contract shall be signed by the property owner and the contractor or
the contractor's designated representative. This paragraph does not apply
to a person who is subject to and complies with section 12-1365.
B. When a contractor and an owner sign a contract, the contractor
shall provide the owner with a legible copy of all documents signed and a
written and signed receipt for and in the true amount of any cash paid to
the contractor by the owner.
C, The requirements of this section are not prerequisites to the
formation or enforcement of a contract. Failure to comply with the
requirements of this section does not constitute a defense by either party
to an action for compensation, damages, breach, enforcement or other cause
of action based on the contract."
20 Amend title to conform
JUSTIN WILMETH
2545COMMERCE
02/05/2021
02:42
Cc: MU
PM
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __ HB 2545
DATE February 09, 2021 MOTION: D P ft
PASS AYE NAY PRESENT | ABSENT
Chaplik J
Cook WA
Espinoza 4
Fernandez 4
Meza J
Nutt J
Powers Hannley S/S
Wilmeth J
Kaiser, Vice-Chairman J ,
Weninger, Chairman /
/d d b 0
APPROVED: . COMMITTEE SECRETARY
JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT_ * |
—_——+ 3
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
First Regular Session
sce
HB 2546: home solicitation sales; definition
Sponsor: Representative Wilmeth, LD 15
Committee on Commerce
Overview
Modifies the qualifying factors for a sale to be defined as a home solicitation sale.
History
A home solicitation sale is defined as a sale of goods or services in which the seller or the seller's
representative personally solicits the sale and the buyer's agreement is made at any home other
than that of the person soliciting the same and that agreement is given to the seller or the sellers
representative, and all or any part of the purchase price or debt incurred for payment is payable
in installments. A sale which otherwise meets the definition of a home solicitation sale, except
that it is a cash sale, shall be deemed to be a home solicitation sale if the seller makes or provides
a loan to the buyer or obtains or assists in obtaining a loan for the buyer to pay the purchase price
(A.R.S. § 44-5001).
The buyer has until midnight of the third business day to cancel the home solicitation sale. The
buyer must provide a written notice of cancellation to the seller (A.R.S. § 44-5002).
Provisions
4. Removes the requirement that all or any part of the purchase price or debt incurred for
payment be payable in installments as a qualifier for a home solicitation sale. (Sec. 1)
2. Stipulates a cash sale qualifies as a home solicitation sale provided the seller makes or
provides a loan to the buyer or obtains a loan for the buyer to pay the purchase price. (Sec.
1)
3. Makes technical changes. (Sec. 1)
(1 Prop 105 (45 votes) C] Prop 108 (40 votes) (Emergency (40 votes) OU Fiscal Note
HB 2546
Page 1 Commerce
Attachment 2.2_
Initials
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature - First Regular Session
ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. __HB2546_
DATE February 09, 2021 MOTION: Dr
PASS AYE NAY PRESENT | ABSENT
Chaplik /
Cook WA
Espinoza S
Fernandez VA
Meza VA
Nutt /
Powers Hannley JS
Wilmeth J
Kaiser, Vice-Chairman VA
Weninger, Chairman i
[e 0 O Oo
bee J) Le Drrhorw
APPROVED: COMMITTEE SECRETARY
Veh Aer _
” JEFF WENINGER, Chairman
STEVE KAISER, Vice-Chairman
ATTACHMENT. 2
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