Arizona House of Representatives Committee on Commerce Meeting Minutes and Materials

Summary

Minutes and attachments of the Arizona House of Representatives Committee on Commerce regular meeting on Tuesday, March 10, 2026, in the Fifty-seventh Legislature, Second Regular Session, chaired by Representative Weninger. The report of the meeting records that SB1181, SB1252 and SB1415 received do-pass votes of 10-0-0-1 and that SB1254 was held. The attachments include the agenda, a Request to Speak report, the attendance record, roll call vote sheets, and a Majority Research Staff summary of SB 1181, which revises certified public accountant certification pathways with a delayed effective date of January 1, 2027. They also include a March 9, 2026 letter from DeMenna Public Affairs on behalf of the Arizona Society of Certified Public Accountants urging support for SB 1181, and a staff summary of SB 1415 on insurance adjuster licensing.

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

Full text

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

COMMITTEE ON COMMERCE

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

Convened 3:49P.M RECE!
fonvence VED
Adjourned 4:00 P.M. CHIEF CLERKS OFFICE

Members Present Members Not Present MAR 13 2026
Representative Aguilar Representative Cavero

Representative Blackman Representative Connolly

Representative Carter

Representative Diaz

Representative Hendrix

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

Presentations
Name Organization Attachments (Handouts)
Ryan DeMenna DeMenna Public Affairs on behalf of
Arizona Society of CPA's 6

Committee Action
Bill Action Vote Attachments
SB1181 DP 10-0-0-1 4,5
SB1252. DP 10-0-0-1 7,8
SB1254 HELD 9

SB1415 DP | 10-0-0-1 10,11

“Stephanie Smith, Committee Secretary
March 11, 2026

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

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

ARIZONA HOUSE OF REPRESENTATIVES we 17P
Fifty-seventh Legislature - Second Regular Session C 0") Verned . 5 ° m
gj oeprn

REGULAR MEETING AGENDA A. d Our? ri :
COMMITTEE ON COMMERCE

DATE Tuesday, March 10, 2026 ROOM HHR5 TIME 2:00 P.M. or upon recess or
adjournment of Floor
Members of the public may access a livestream of the meeting here: ’
https://www.azleg.gov/videoplayer/?clientID=6361 162879&eventID=202603 1035

Members:
Representative Aguilar Representative Connolly Representative Volk
Representative Blackman Representative Diaz Representative Wilmeth
Representative Carter N Representative Hendrix Representative Way, Vice-Chairman
Representative Cavero Representative Villegas Representative Weninger, Chairman
Bills Short Title Strike Everything Title
SBHY283 study-commiticerserapanetal theft
—— — — (Gowan)
COM RULES

SB1181 P certified public accountants; certification;
; D alternative

/0-0~ Lal (Mesnard)
————. COM, RULES

SB1252 D Pp uniform assignment; benefit of creditors
D ————— (Mesnard)

/Q-O-O-| COM, RULES

SB1254 E Lp real property conveyances; formal requirements

(Mesnard)
COM, RULES
SB1415 insurance adjuster license; eligibility
3 Dr (Bolick)

jo-0-0-| COM, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

ve
RA
03/05/2026
03/09/2026

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

Page 1 of 1 Attachment /
Information Registered on the Request to Speak System

House Commerce (3/10/2026)

$B1181, certified public accountants: certification; alternative

Testified in support:
Ryan DeMenna, AZ SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

Support:
Stephen Shadegg, Americans For Prosperity Arizona; Jonathan Soto Robles, representing self; Alexis Monet Bacs,
THE LIBRE INITIATIVE ARIZONA; Andrea Hernandez Falcon, representing self; Hunter Anderson, representing self

Neutral:
Joana da Silva-Gonzalez, representing self

All Comments:

Joana da Silva-Gonzalez, Self: SB 1181 will relax barriers to entry into the profession by allowing aspiring CPAs to
meet the education and experience requirements through one of three pathways, increasing flexibility. It will help
get more CPAs in the door and without sacrifices.

SB1252, uniform assignment; benefit of creditors

Testified in support:

Jane Sternecky, representing self

Support:
Alexis Glascock, Arizona Uniform Laws Commission; Tim Berg, AZ COMMISSION ON UNIFORM STATE LAWS

SB1254, real property conveyances; formal requirements

Support:

Eddie Cook, Maricopa County Assessor's Office; Kevin McCarthy, ARIZONA TAX RESEARCH ASSOCIATION (ATRA);
Tom Farley, Arizona Association Of Realtors; James Roth, representing self; Christian Curry, Maricopa County
Assessor's Office

All Comments:
James Roth, Self: this is an attempt to provide a layer of protection against fraudulent conveyances

1 Ketechments.
SB1415, insurance adjuster license; eligibility

Testified in support:
Don Isaacson, STATE FARM INSURANCE COMPANIES

Support:
Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE; Marie Isaacson, STATE FARM INSURANCE
COMPANIES

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

Oppose:

Bart James, representing self
ARIZONA STATE LEGISLATURE

Fifty-seventh Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE

CHAIRMAN: Jeff Weninger VICE-CHAIRMAN: Michael Way

DATE 03/10/26

CONVENED 32 4F pm
RECESSED

RECONVENED 400 BY

ADJOURNED

MEMBERS PRESENT NOT PRESENT

Aguilar

Blackman

Carter N

Cavero

Diaz

Hendrix

Villegas

Volk

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

TOTAL

BIA I\IK IATA IN VAI

q

Attachment 3 .
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DP 7-0-0-0 | Third Read 27-0-3-0-0

SB 1181: certified public accountants; certification; alternative
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Overview
Makes revisions to Certified Public Accountants (CPA) statutes.

History
The Arizona State Board of Accountancy (Board) protects the public from unlawful,

incompetent, unqualified or unprofessional certified public accountants through certification,
regulation and rehabilitation. (Title 32, Chapter 6, A.R.S.).

An applicant for certification must meet statutory qualifications, pass the uniform certified
public accountant examination and: 1) have at least 2,000 hours of experience in the practice
of accounting; and 2) has obtained a baccalaureate degree or higher degree with at least 150
semester hours of specified accounting courses (A.R.S. § 32-721).

Provisions
State Board of Accountancy
1. Alters Board responsibilities, which include:
a. investigating complaints to determine whether a registrant or limited reciprocity
privilege individual or firm, rather than a CPA, has committed a violation; and
b. delegate to the executive director the authority to approve a request for inactive status
and approve reinstatement from canceled or expired status. (Sec. 2)

2. Prohibits the basic requirements for continuing professional education from exceeding 80
hours in any two-year registration period, rather than any registration renewal period.

(Sec. 2)

Certified Public Accountant
3. Revises the requirements for applicants who have never been certified, registered or
licensed in this state or another jurisdiction by:

a. removing language relating to the requirement to have at least 2,000 hours of
experience in the practice of accounting and completion of 150 semester hours of
specified accounting courses; and

b. requiring applicants to present satisfactory evidence of obtaining either a:

i. baccalaureate degree and has at least two years of experience;

ii. baccalaureate degree, 30 additional semester hours and has at least one year of
experience; or

iii. postbaccalaureate degree and at least one year of experience. (Sec. 3)

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

Initials PB SB 1181
3/5/2026 Page 1 Commerce

Attachment____
10.

11.

12.

13.

14.

15.

16.

Removes the alternative certification requirement for applicants who have a certificate,
registration or license in another jurisdiction relating to having a baccalaureate degree
and employment history with specified semester hours of accounting courses. (Sec. 3)

Adds as an alternative certification requirement for applicants who have a certificate,
registration or license to practice as a CPA in another jurisdiction that the applicant has
been employed as a CPA in the practice of accounting for at least:
a. three years and has obtained either:

i. a postbaccalaureate degree; or

ii. a baccalaureate degree and 30 additional semester hours; or
b. five of the ten preceding years and has obtained a baccalaureate degree. (Sec. 3)

Instructs the Board to adopt rules regarding the required number of semester hours of
accounting courses. (Sec. 3)

Defines experience. (Sec. 3)

Restates that a person is allowed to take the uniform CPA examination provided the
person has either a baccalaureate degree or a postbaccalaureate degree that includes the
required number of semesters hours of accounting courses as determined by the Board.
(Sec. 4)

Miscellaneous

Revises the requirements to qualify to exercise the limited reciprocity privilege for
individuals who hold a valid registration certification or license issued by another
jurisdiction by:
a. deleting language outlining current requirements; and
b. including the requirement that the individual:

i, meets statutory qualification requirements for CPAs or out-of-state applicants; or

ii. holds a valid active registration, certificate or license as a CPA from any

jurisdiction as of December 31, 2024. (Sec. 5)

Adds the uniform registration fee applied to registrants for less than two years be charged
on a pro rata basis for the remainder of the registration period. (Sec. 6)

Specifies the uniform registration fee applied to retired status registration is due during
the month of the anniversary of the registrant's birth and be charged on a pro rata basis
for registrants of less than two years. (Sec. 6)

Allows the Board to reduce or waive certain registration fees before the due date of any
registration fee, rather than any renewal fee. (Sec. 7)

Prohibits a registrant who is under investigation by the Board from canceling the
certificate or registration. (Sec. 8)

Authorizes the Board to offer to a registrant relinquishment of a certificate or
registration. (Sec. 9)

Clarifies that a registrant, in order to complete the relinquishment, must acknowledge
that an investigation or disciplinary proceeding has been initiated. (Sec. 9)

Revises the requirement relating to certificate reinstatement by removing references of
required semester hours and adding that the individual obtains a baccalaureate degree
or postbaccalaureate degree. (Sec. 11)

Initials PB SB 1181
3/5/2026 Page 2 Commerce
17. Clarifies continuing professional education audits are presumed to be public records. (Sec.
17)

18. Defines pertinent terms. (Sec. 1)

19. Contains a delayed effective date of January 1, 2027. (Sec. 18)

20. Cites the act as the "Certified Public Accounting Act of 2026". (Sec. 19)

21. Makes clarifying and technical changes. (Sec. 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16)

Initials PB SB 1181
3/5/2026 Page 3 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILLNO. $B 1181
DATE March 10, 2026 MOTION: dD im
PASS AYE NAY PRESENT | ABSENT
Aguilar e
Blackman Lo
Carter N }
Cavero — ¢
Diaz Lo
Hendrix a
Villegas a
Volk a
Wilmeth a
Way, Vice-Chairman Lo
Weninger, Chairman eo
lo. | O} 9 |!

APPROVED:

UN 22>

JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

hdheeer

¥ “COMMITTEE SECRETARY

ATTACHMENT.

5

Representative Weninger,

| wanted to include a quick note to let you know that this is the Senate’s version of the CPA
pathways legislation.

SB 1181 is identical to HB 2476, which passed House Commerce with unanimous support.
There were plans to do a mirror bill swap at the start of session, but those plans fell through
which is why you’re seeing the bill again.

| would really appreciate another YES vote on SB 1181. if you have any questions, please
reach out!

Thanks.

Attachment b
DeMenna

PUBLIC AFFAIRS
March 9, 2026

The Honorable Jeff Weninger
Arizona House of Representatives
1700 West Washington Street
Phoenix, Arizona 85007

RE: Please Vote YES on SB 1181
Dear Chairman Weninger,

On behalf of the Arizona Society of Certified Public Accountants (ASCPA), we respectfully
request your support for SB 1181 (certified public accountants; certification; alternatives).

For years, the CPA profession has been experiencing workforce shortages. In response,
the American Institute of CPAs launched a nationwide effort to broaden the CPA candidate
pipeline and meet growing demand by developing additional pathways into the profession. SB
1181 is Arizona’s version of this important effort, and to date 24 states have enacted similar

legislation.

These new certification pathways will support workforce growth in the CPA profession,
strengthen Arizona’s business community, and ensure that Arizona CPAs remain competitive in a
national market.

SB 1181 also makes updates and enhancements to the statutes governing CPAs in
Arizona by broadening practice privilege mobility, clarifying existing definitions, and

modernizing the registration process.

Enclosed you will find additional information about this important legislation. If you
have any questions, please don’t hesitate to contact me at your convenience.

We would sincerely appreciate your support by voting YES on SB 1181!

Respectfully,

yan DeMenna
DeMenna Public Affairs

602.252.5155 | 1345 West Monroe Street, Phoenix, Arizona 85007 | DeMenna.com
Overview

The CPA profession nationwide
is focused on
“pipeline” of new CPAs due to a
decline in accounting graduates
and a shortage of qualified
professionals.

Like 24 other states that enacted
similar legislation in 2025, SB 1181
expands pathways to obtain a
CPA certificate in Arizona, and

limited
(a.k.a
ensure a more flexible and
accessible profession.

broadens
privilege

SB 1181

“ascpa

Arizona Society of CPAs

Certified Public
Accounting Act of 2026

rebuilding the

reciprocity
mobility) to

Gl New Pathway:
Passed

M) supports New
Pathways/in
Progress

Current

Path 1

new

Path 2

new

Path 3

new

EDUCATION EXPERIENCE

EXAM
Bachelor's Degree or (Fa) 1 Year Work
Rag § Higher (150 hours) wala Experience = cident

ZF, Bachelor's Degree a) a Wears Woe = CPA Exem

Experience
bet Feet bes See Pet cast Se pe ee ft i i i it at es peed Gee Cte SS A Te ee ee

I Bachelor's Degree + oe 1 Year Work = CPA Exam

30 semester hours Experience
SS SS St et me te ow hs a a es ees oe ee es eee eee ete

F om ¥
Post-Bachelor’s 1 Year Work .
i cod aap = CPA Exam

tale Experience

All applicants must have a minimum
concentration in accounting and related courses.

The Arizona Soctely of CPAs - Yfour Connection to the Accounting Profession

Key Provisions

To align with nationwide efforts, SB

1181 introduces three new
certification pathways and
broadens practice privilege

requirements that will allow Arizona
CPAs to practice across state lines.

modernize
workforce

These changes — will
certification, support
growth, strengthen Arizona’s
business community, and ensure
that Arizona CPAs - remain
competitive in the national market.

By Adding Additional Pathways
SB 1181 Will: For years, the CPA profession has

been experiencing workforce

shortages due to declining student

e Provide Flexibility: Accommodates students’ needs by
providing additional career paths.

e Reduce Barriers: Eases both the financial and time profession, and more, making it
burdens associated with a fifth year in college. difficult. fo. attract the. next

e Promote Workforce Development: Broadens the CPA generation of CPAs.
candidate pipeline to meet growing demand.

enrollment, the high cost of

education, turnover within the

In response, the American Institute of

. . — soe CPAs created the National Pipeline
By Broadening Practice Privilege Mobility SEES Sree Ha oe
z Advisory Group to:
SB 1181 Will:

|, Develop strategies to address the

e Ensure that Arizona CPAs can practice across state lines talent shortage;
if they have a license in good standing and meet Arizona’s 2,Promote the CPA career path,
certification requirements, or they were certified in any 5,Expand access to the profession;
jurisdiction as of December 31, 2024. Having these 4 |mprove student experiences;
provisions in place will allow Arizona CPAs to work S.Reduce educational barriers; and
nationwide with no notice and no fee. 6.Collaborate with employers to

e Ensure Arizona businesses have access to qualified foster supportive cultures and
expertise from across the nation. modern business models.

SB 1181 will establish these new

Additionally, SB 1181 Will: _ pathways to the CPA profession in
Arizona, and ensure that Arizona
e Clarify existing statute relating to cancellation vs. 'CPAs remain competitive in the
relinquishment of a CPA certificate. | national market.
o Registrants cannot request cancellation while under |
investigation. Cancellation is used only for non- | veltistsadiel {oir

disciplinary situations, such as choosing not to renew,
and simply indicates the credential is no longer active.
© Relinguishment applies when ae_ certificate or

if there are any questions on a
the above information,

registration is surrendered because of an investigation contact:
or disciplinary action. :
Emily Webb
° Modernize the Board’s online two-year registration = | 2 titeli ere Tele I iCIE

system to include: initial registrations for newly certified | Arizona Society of CPAs
CPAs, prorated registrations for CPAs with registration | ewebbia@ascpa.com
terms less than two years, and reinstatement of CPAs
previously on cancelled, expired, relinquished, or revoked
status.

The Arizona Sock CPAs - Your Connection to the Aeco Profession Ee FINE

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: FIN DP 6-0-1-0 | Third Read 29-0-1-0-0

SB 1252: uniform assignment; benefit of creditors
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Overview

Adopts the Uniform Law Commission's (ULC) Uniform Assignment for Benefit of Creditors
Act (Act) which governs a process for an assignor and an assignee to liquidate assets and
distribute the proceeds to the assignor's creditors.

History
Every assignment made by an insolvent debtor, or in contemplation of insolvency, for the

benefit of his creditors, is required to provide for a distribution of all real and personal
property other than that which is by law exempt from execution, among all creditors in
proportion to their respective claims. However the assignment is made or expressed, it is
required to have such effect and be construed to pass all such property, whether or not
specified. Every assignment for the benefit of creditors is required to be acknowledged and
recorded in the manner provided by law for conveyances of real or other property (A.R.S. §

44-1031).

The Uniform Law Commission is an organization that provides states with non-partisan
legislation which brings clarity and stability to critical areas of state statutory law. The ULC
drafted the Uniform Assignment for Benefit of Creditors Act which is a voluntary, debtor-
initiated state law alternative to federal bankruptcy, state receiverships, and voluntary
workouts.

Provisions
Act Applicability

1. Applies the Act to an assignment made by an assignor that is an organization that meets
specified descriptions or an individual who is an Arizona resident. (Sec. 1)
Assignee Requirements

2. Specifies, for a person to be deemed as an assignee, the person cannot:

a. be acreditor, affiliate or insider of the assignor;

b. be an affiliate or insider of a creditor of the assignor;

c. have aclaim against the assignment estate, other than a claim for fees and expenses
to be paid under the assignment agreement;

d. have a material financial interest in the outcome of the assignment, other than a claim
for fees and expenses to be paid under the assignment agreement;

e. hold an equity interest in the assignor other than a noncontrolling interest in a
publicly traded company; or

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

Initials SB 1252
2/17/2026 Page 1 Commerce

Attachmer _ ‘
f. be an affiliate of a person that fails to satisfy the outlined requirements, (Sec. 1)

8. Specifies an assignee is not precluded from being an assignee merely because the person

performed services for the assignor before the assignment. (Sec. 1)
Assignment Agreement

4. Specifies that an assignment agreement must be in a record signed by the assignor and
the assignee and outlines record requirements. (Sec. 1)

5. Deems the assignor's assets to be assigned if an assignee relies in good faith on the
assignor's representation even if the representation is inaccurate. (Sec. 1)

6. Specifies the assignee obtains the rights, title and interest of the assignor in the assigned
assets and if the assignor is an organization the assignee will obtain all of these after the
assignment. (Sec. 1)

7. Outlines the effects of assigning the assets and assignment agreement for the assignee
and assignor.

Filing and Recording Requirements

8. Allows an assignee of a legal or equitable interest in personal property to file a financing
statement in certain filing offices. (Sec. 1)

9. Provides requirements for filing a financing statement. (Sec. 1)

10. Specifies that a filing of a financing statement is not itself a factor in determine whether
an asset secures an obligation, and the rights of the assignee are not affected if the
assignee does not file a financing statement. (Sec. 1)

11. Requires an assignee to:

a. record the assignment of the interest or notice of the assignment under the real estate
recording law of the jurisdiction where the property is located; and
b. comply with other laws governing the transfer of title to an asset. (Sec. 1)

12. Specifies the assignor, by signing an assignment agreement, authorizes the assignee to

take the actions relating to the filing requirements. (Sec. 1)
Creditor Notification

13. Requires an assignee, unless the creditor waives the right to notification, to send a
notification of the assignment to each creditor known to the assignee within a reasonable
time and not to exceed 30 days after the effective of the assignment agreement. (Sec. 1)

14. Outlines the notification requirements. (Sec. 1)

15. Requires an assignee to use reasonable means to provide the information in the
notification to unknown creditors. (Sec. 1)

Assignor Duties

16. Declares the assignor has a duty to take all reasonable actions necessary for the assignee
to administer the assignment, the assigned assets and the assignment estate. (Sec. 1)

17. Delineates further duties of the assignor. (Sec. 1)

18. Applies the delineated duties to the designated representative acting on behalf of the
assignor. (Sec. 1)

Initials SB 1252

2/17/2026 Page 2 Commerce
19.

20.
21.

22.
23.

24,

25.

26.

27,

28.

29.

30,

3l.

32.

33.

Assignee Powers and Duties

Declares the assignee has a fiduciary duty to the assignment estate for the benefit of

creditors, as follows:

a. of loyalty, including the duty to manage the assignment in good faith;

b. to use reasonable care to maximize distributions; and

c. to wind up the assignment in a manner compatible with the best interests of the
assignment estate and creditors. (Sec. 1)

Delineates further powers and duties of the assignee. (Sec. 1)

Asserts certain powers are exclusive to the assignee with respect to a creditor that
submits a proof of claim. (Sec. 1)

Outlines the lien status an assignee has on the assignment estate. (Sec. 1)

Details the assignee's powers relating to avoiding a transfer or the incurrence of an
obligation which a creditor that has filed a proof of claim could have avoided under other
law if the assignment had not been made. (Sec. 1)

Allowed Claims

Requires an assignee to allow a creditor's claim if:
a. the creditor submits a proof of claim; and
b. the assignee does not dispute the claim before final distribution. (Sec. 1)

Allows an assignee to either:

a. allow a claim, pay a known liquidated claim or accept a notice to the assignee of a
claim even if the creditor does not submit a proof of claim; or

b. allow and pay a claim evidenced by a late-filed proof of claim, if the assignee
determines there is a reasonable basis for excusing the late filing. (Sec. 1)

Requires any unsecured portion of an allowed claim to be valued as of the effective date
of the assignment agreement. (Sec. 1)

Specifies a creditor's claim is allowed if the creditor succeeds in a dispute preceding. (Sec.
1)

Provides requirements for an assignee in creating a complete list of creditors that have
submitted a proof of claim and notifying creditors who will receive no distribution. (Sec.
1)

Claims

Allows an assignee to dispute a creditor's claim before final distribution by sending
notification on the nature of the dispute. (Sec. 1)

Includes stipulations for commencing a proceeding to disallow the claim, if a dispute
cannot be resolved consensually. (Sec. 1)

Requires an assignee to create a dollar-for-dollar reserve for the estimated amount of the
potential distribution on a disputed claim. (Sec. I)

Provides requirements for disallowing a claim for reimbursement or contribution of a
person that is liable with the assignor. (Sec. 1)

Specifies an assignee may reconsider the assignee's decision to allow or disallow a claim
for cause and requirements for payment to a creditor on a reconsider claim. (Sec. 1)

Initials SB 1252
2/17/2026 Page 3 Commerce
34,
35.

36.

37,

38.

39,

AO.
Al.

42,

43.

44.

45.

46.

47,

48.

49.

Includes requirements for a proof of claim. (Sec. 1)

Specifies a proof of claim that is in compliance with the requirements for proof is prima
facie evidence of the validity and amount of the claim. (Sec. 1)

Adds that the submission by a creditor of a proof of claim that complies with the
requirements constitutes the creditor's consent to the jurisdiction of the applicable court
and assignment to the assignee of any right of the creditor to bring a voidable transaction
action relating to the creditor's claim. (Sec. 1)

Specifies subordinate agreements are enforceable to the same extent that the agreement
is enforceable under other laws. (Sec. 1)

Outlines the claims that are subordinate to a claim or interest that is senior or equal in
priority to a claim or interest represented by a security or other equity interest in the
assignor or an affiliate of the assignor. (Sec. 1)

Stipulates a claim subject to subordination has the same priority as a common stock or
another common equity interest if the security is common stock or another common equity
interest. (Sec. 1)

Transferees' rights
Outlines an assignee's disposition of an asset. (Sec. 1)

Declares a transferee that acts in good faith takes free of the rights and interests
described in the asset's disposition, even if the assignee fails to comply with the Act or
the requirements of a judicial proceeding. (Sec. 1)

Stipulates the transferee, who does not take free of the rights and interests, takes the
asset subject to outlines requirements. (Sec. 1)

Specifies any warranty arising by operation of other law is disclaimed to the extent
permitted by other law, unless otherwise provided in a record. (Sec. 1)

Provides requirements for the assignee in filing a record with the official if a subordinate
security interest or other lien is discharged. (Sec. 1)

Distributions

Instructs the assignee to pay claims from the assignment estate in the order of priority
as outlined. (Sec. 1)

Prescribes the order of priority of distributions with the protected secured creditor having
first priority before other distributions. (Sec. 1)
Requires, after the distributions made to the protected secured creditor, the assignee to

pay the necessary costs of the administration of the assignment estate and outlines the
costs. (Sec. 1)

Details the order of priority of distributions, including:

a. payment of claims entitled to priority under federal law;

b. payment of claims for wages, salaries or commissions earned; and
c. payment to each creditor. (Sec. 1)

Outlines the distribution of claims if the assets are insufficient to pay the total amount of
the claims. (Sec. 1)

Initials SB 1252
2/17/2026 Page 4 Commerce
50.

51,

52.

54.

56.

57,

58.
59.

60.

61.

62,

63.

64,

Specifies, after payments are made, the residue must be distributed to allowed claims
evidenced by a late-filed proof of claim and, after the allowed late-filed claims, as provided
in the assignment agreement. (Sec. 1)

Allows an assignee to make interim distributions after considering future expenses and
the reserves for disputed claims. (Sec. 1)

Liability

Asserts an assignor is not personally liable for an act or omission by the assignee nor is
an assignee personally liable for an act or omission by the assignor. (Sec. 1)

. Specifies a representative designated by an assignor is exculpated to the same extent as

a person acting on behalf of the assignor had there been no assignment, except for an act
or omission resulting from the representative's gross negligence or willful misconduct.
(Sec. 1)

Specifies a term of an assignment agreement relieving the assignee of liability is
unenforceable to the extent the agreement relieves the assignee of liability for an act of
omission committed in bad faith or with reckless indifference to the purposes for the
assignment or the interest of the creditors of the assignment estate. Sec. 1)

. Deems an assignee as personally liable for a breach of a fiduciary duty and outlines

stipulations for being liable. (Sec. 1)

Adds that the assignee who relies in good faith on specified information is not liable. Sec.
1)
Assignee Removal

Allows the assignor or a creditor to request a court of competent jurisdiction in Arizona
to remove an assignee, if the assignor or creditor has a reasonable belief that grounds
removal exist. (Sec. 1)

Outlines the specific grounds for removing an assignee. (Sec. 1)

Specifies the success assignee provided for in the assignment agreement, unless the
assignee is not eligible, becomes the assignee. (Sec. 1)

Instructs the court to appoint a successor assignee if:

a. the assignment agreement does not provide for a successor assignee; or

b. the successor assignee provided for in the assignment agreement is ineligible to be an
assignee or is subject to removal. (Sec. 1)

Specifies an assignee who resigns, or is removed, dies, or becomes incapacitated, is
discharged from the assignee's duties when outlines conditions are met. (Sec. 1)

Authorizes a court to order an attorney, accountant or other person that has information
relating to the assignment estate or the assignor's financial affairs to turn over or disclose
the information to the successor assignee. (Sec. 1)

Winding Up

Instructs an assignee, on completion of their duties, to send a creditor whose claim is
allowed, and not satisfied in full, a final accounting sufficient to inform the creditor of all
material aspects of the assignment. (Sec. 1)

Includes information that must be sent to the creditor in the final accounting. (Sec. 1)

Initials SB 1252
2/17/2026 Page 5 Commerce
65

66.

67.

68.

69.

70.

71.
72.

73

74
75

. Deems an assignee as discharged from their duties when the assignee sends the final
accounting and distributes all the assets of the assignment estate. (Sec. 1)

Directs the assignee to exercise the powers appropriate to complete the work if the final
accounting describes additional work. (Sec. 1)

Miscellaneous

Stipulates an assignment made under the law of another state must be recognized and
enforced on an issue if the result for the issue would be substantially similar to the result
for the issue if the assignment had been made under the Act. (Sec. 1)

Requires the assignee to use the amount asserted or determined under the law of the
other state if a claim for wages, salaries or commissions or a claim of a governmental unit
exists in another state. (Sec. 1)

Stipulates the assignee, if determined that a creditor should receive the treatment the
creditor would receive under an assignment made under the law of another state, may
treat the creditor as the creditor would be treated in the other state. (Sec. 1)

Includes authorizations for a court to:

a. hear and resolve a matter involving the administration of an assignment or the
exercise of an assignee's powers and duties; and

b. appoint a person serving as an assignee in an assignment in another state as an
ancillary assignee relating to assigned assets located in this State. (Sec. 1)

Contains requirements for provisions relating to variable agreements. (Sec. 1)

Directs a court, in applying and construing the Act, to consider the promotion of
uniformity of the laws among states that enact the Act. (Sec. 1)

. Specifies the modifications and limitations of the Act in relation to the Electronic
Signatures in Global and National Commerce Act. (Sec. 1)

. Applies the Act to an assignment made on or after the effective date of the Act. (Sec. 1)

. Defines pertinent terms. (Sec. 1)

Initials SB 1252
2/17/2026 Page 6 Commerce
_ ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

DATE

March 10, 2026

MOTION:

SB 1252

pr

PASS

AYE NAY

PRESENT

ABSENT

Aguilar

Blackman

Carter N

Cavero

Diaz

Hendrix

Villegas

Volk

Wilmeth

Way, Vice-Chairman

Weninger, Chairman

APPROVED:

OO" <<

EFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

S AAAI WAI MAK

O

O

:

“ COMMITTEE SECRETARY

o

ATTACHMENT

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO.

DATE March 10, 2026 MOTION;

pass | AYE | NAY PRESENT ABSENT

Aguilar

Blackman

Carter N /
Cavero /

Diaz oN J
\

Hendrix

Villegas f
Volk

Wilmeth

Way, Vice-Chairman

AS
N

Weninger, Chairman V

5

APPROVED: c7 COMMITTEE SECRETARY

JEFF WENINGER, Chairman
, Vice-Chairman

ATTACHMENT.

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff
Senate: RAGE DPA 7-0-0-0 | Third Read 27-0-3-0-0

4 (SipATiDEUS
j : 4 ‘|

SB1415: insurance adjuster license; eligibility
Sponsor: Senator Bolick, LD 2
Committee on Commerce

Overview
Establishes requirements for salaried employees of insurers or managing general agents to
be eligible for Arizona adjuster licensure without taking the state examination.

History
The Arizona Department of Insurance and Financial Institutions (DIFI) oversees the

licensing and regulation of insurance professionals including adjusters.

An adjuster is an individual who, for compensation, fee or commission, adjusts, investigates
or negotiates settlement of claims arising under property and casualty insurance contracts
on behalf of either the insurer or the insured. To obtain an adjuster license in Arizona, an
individual must apply to DIFI and meet the following qualifications: 1) be at least 18 years
of age; 2) be an Arizona resident or a resident of another state that allows residents of this
state to act as adjusters in the other state; and 3) take and pass an examination that is given
by or under the supervision of the director of DIFI and that reasonably tests the applicant's
knowledge of insurance and legal responsibilities as an adjuster. Out-of-state licensed
adjusters sent by an insurer to investigate a specific loss or a series of losses resulting from
a common catastrophe are exempt from licensure (A.R.S. §§ 20-321, 20-321.01).

Provisions

1. Prescribes specified qualifications for salaried employees of insurers or managing general
agents to be eligible for licensure as an adjuster without taking the Arizona adjuster
examination. (Sec. 1)

2. Requires a salaried employee, to be eligible for licensure without taking the examination,
to submit an application to DIFI by June 30, 2027. (Sec. 1)

3. Limits a person who has obtained licensure without taking the examination to only adjust
claims as a salaried employee of an insurer or managing general agent. (Sec. 1)

4. Prohibits a person who has obtained licensure without taking the examination from
adjusting claims on behalf of an insured or on behalf of an insurer in a capacity other
than as a salaried employee of the insurer or a managing general agent. (Sec. 1)

5. Specifies an adjuster license that was issued without the examination requirement is
valid and renewable only while the licensee adjust claims as a salaried employee of the
licensed insurer or managing general agent. (Sec. 1)

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

Initials PB SB 1415
2/20/2026 Page 1 Commerce

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

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1415

)
DATE March 10, 2026 MOTION: S |

PASS YE NAY PRESENT | ABSENT

>

Aguilar

Blackman
Carter N

Cavero

Diaz

Hendrix

Villegas

Volk

Wilmeth

Way, Vice-Chairman

VARI MAA IAL ACK

Weninger, Chairman

o1|o |/

S

S
.

APPROVED: . fv COMMITTEE SECRETARY
\ er
“JEFF WENINGER, Chairman
MICHAEL WAY, Vice-Chairman

ATTACHMENT _//

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