Arizona House of Representatives Committee on Commerce Special Meeting Minutes and Agenda

Summary

Minutes and agenda packet of the Arizona House of Representatives Committee on Commerce, Fifty-sixth Legislature, First Regular Session, for a special meeting on Tuesday, March 28, 2023, convened 2:42 P.M. and adjourned 6:43 P.M., with Representative Wilmeth as Chairman and Representative Carbone as Vice-Chairman. The committee action table lists SB1163 DPA/SE 7-3-0-0, SB1106 DPA 6-4-0-0, SB1161 DPA/SE 7-3-0-0, SB1198 DPA/SE 9-1-0-0, SCR1033 DPA 6-4-0-0 and SB1138 DP 6-3-0-1. The special meeting agenda gives short titles, including SB1106 on social media platforms, standards and notification. The packet also holds Request to Speak reports and roll call votes for each bill.

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

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

COMMITTEE ON COMMERCE

Report of Special Meeting MINUTES RECEIVED
Tuesday, March 28, 2023 CHIEF CLERK’S OFFICE

House Hearing Room 3 -- 2:00 P.M. S ~21Y 2S

Convened 2:42 P.M.
Recessed
Reconvened
Adjourned 6:43 P.M.

Members Present Members Absent
Representative Aguilar

Representative Austin

Representative Carter

Representative Gress

Representative Heap

Representative Hendrix

Representative Ortiz

Representative Sandoval

Representative Sun

Representative Carbone, Vice-Chairman
Representative Wilmeth, Chairman

Agenda
Original Agenda ~ Attachment |

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action Vote Attachments
SB1163. DPA/SE 7-3-0-0 4, 5,6
SB1106 DPA 6-4-0-0 7, 8,9
SB1161 DPA/SE 7-3-0-0° 10, 11, 12
SB1198 DPA/SE 9-1-0-0 13, 14, 15
SCR1033 DPA 6-4-0-0 16, 17, 18
SB1138 DP 6-3-0-1 19, 20

dem Ne lor

Susan Nelgon, Committee Secretary
March 29, 2023

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

COMMITTEE ON COMMERCE
March 28, 2023
REVISED - 3/24/23 REVISED - 3/24/23 REVISED - 3/24/23

ARIZONA HOUSE OF REPRESENTATIVES 4 ONVENED, a ‘4A pir

Fifty-sixth Legislature - First Regular Session
AdSovANE.D! G7 430M
SPECIAL MEETING AGENDA

COMMITTEE ON COMMERCE

DATE Tuesday, March 28, 2023 ROOM HHR3 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=6361 162879&eventID=202303 1131

Members:
Representative Aguilar Representative Heap Representative Sun
Representative Austin Representative Hendrix Representative Carbone, Vice-Chairman
Representative Carter Representative Ortiz Representative Wilmeth, Chairman

Representative Gress

> AeP Sanoovel fe Placed Re Aguilar AV SI ZF AON

é

Bills : Short Title Strike Everything Title

a SB1106 D 4 ) social media platforms; standards; notification

(Rogers: Borrelli, Kern)

bs#4.0. () COM, RULES
& SBII38 f p banks; discrimination prohibition; social

criteria(now: business; discrimination prohibition;
social criteria)

6: o db | J (Hoffman: Borrelli, Kern, et al)

COM, RULES
% SBIU6IL DPA Ist > sprpbation; work time credits; reporting S/E: affordable housing; development
unaiser: Shamp) standards; report

‘}: 3eO «GUD wid, GOV wid, COM, RULES

} SB1163 DPE | e bond or override; contracts; prohibition S/E: municipal; zoning; housing assessment;

(Kaiser: Carroll, Farnsworth, et al) report

hh 7 ().(OM, RULES
4 **SBI1L98 ian salvage vehicle titles; inspections S/E: condominium; termination; notice;
relocation fund

Einey
% LO i or held 0-0-0-0-0, RULES

Page 1 of 2
A@achenent__|
Bills Short Title Strike Everything Title

& *SCR1033 A state debt; limit; restrictions; prohibitions
(Mesnard)
( é Y, 0. 6 held 0-0-0-0-0, RULES
a If out of primary committee and assigned
2 On previous agenda

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

JY
0322/2623
03/24/2023

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 (3/28/2023)

SB1106, social media platforms; standards; notification

Support:

Phyllis Lester, representing self; John Matthews, representing self; Shirley Dye, representing self; Kay Reardon,
representing self; Jere Fredenburgh, representing self; Cathy Schwanke, representing self; Barbara Blewster,
representing self; Joseph Pikosz, representing self; Christine Maceri Genge, representing self; Dennis Genge,
representing self; Jeff Mulder, representing self; Michele Ingram, representing self; Jennifer Wellsman,
representing self; Nancy Hawkins, representing self; Philip Hubacek, representing self; Susan Leeper, representing
self; Brandon LaBorde, representing self; Mark Logan, representing self; Chery! Todd, representing self; Robert
Morrow, representing self; Roger Gorres, representing self; Teddi Thompson, representing self; Jerry Clingman,
representing self; Theresa Logan, representing self; Charles McCain, representing self; Shannon Severson, —
representing self; Torsten Leibold, representing self; Michael Meacham, representing self; Stephen Harris,
representing self; Corinne Haynes, representing self; Valerie Giramberk, representing self; Buffalo Rick Galeener,
representing self; James Adams, representing self; Virginia Reilly, representing self; Barry Burkhardt, representing
self; Robert Puckett, representing self; Anita Bruner, representing self; Carol Cherry, representing self; Charles
Mackey, representing self; Nikki Colletti, representing self; Dianna Gates, representing self; Bridget Nelke,
representing self; Gary Saxhaug, representing self; Susan Thomas, representing self; Charles Bell, representing self;
Claribeth Davis, representing self; Melanie Hutchings, representing self; James McFadzean, representing self; Lynn
Ludwig, representing self; Beverly Ann, representing self; Joseph Myers, representi ng self; Mary Kay Ruwette,
representing self; Ann Pendarvis, representing self; Susan Kelly, representing self; Philip Bryson, representing self; -
Catherine Tunget, representing self; Kelly Parks, representing self; Cherie Anello, representing self, Peter Anello,
representing self; Roy Morales, representing self; Dawn Hampton, representing self; Carrie Heikkala, representing
self; A B, representing self; Laura Doyle, representing self; Joe Fiumara, representing self; Espe Frecks,
representing self; Pam Reinke, representing self; Sandra Morrison, representing self; LJ Busam, representing self;
Juli Webb, representing self; Harold DarcAngelo, representing self; Brent Meadows, representing self; James L
Simpson, representing self; Mary Evelyn Simpson, representing self; Ken Zebal, representing self; Indy Rebhun,
representing self; Jeff Specter, representing self; Henry Ganster, representing self; Denise Lockwood, representing
self; Cynthia Finnegan, representing self; Jane Evans, representing self; Thomas Burke, representing self; Andrew
Costanzo, representing self; Ryan Larson, representing self; Sue VanRiper, representing self; Gary Zimmerman,
representing self; Jeff Caldwell, representing self; Kat Nygaard, representing self; Theresa Breithaupt, representing
self; William Bodine, representing self; Wayne Throw, representing self; Doris Hinton, representing self; Pam
Throw, representing self; Larry Worley, representing self; David Crowley, representing self; diane marins,
representing self; Kathy Madsen, representing self; Darrin Bergstad, representing self; Kristine Rodriguez,
representing self; Gwen Carey, representing self; Laura Hancock, representing self; Julie-Solem, representing self;
Eric Lovelis, representing self; Anne Rankin, representing self; Roy Scott Lassell, representing self; Patricia Rosner,
representing self; Bonnie Rine, representing self; Donna Malik, representing self; Janet Ackerman, representing
self; Kathleen Hahn, representing self; Paul Thompson, representing self; Randy Leier, representing self; Carol
Stines, representing self; Walter Houtz Jr., representing self; Gisela Aaron, representing self; Marti Alvarado ,
representing self; Donna Booth, representing self; Michael Aaron, representing self; Mary Jamsa, representing self;

Attachment ol.

James Pallas, representing self; Michael Mote, representing self; Victoria Doherty, representing self; George
Momper, representing self; Jay Ts, representing self; Rick Wynant, representing self; Raymond Darragh,
representing self; Gretchen Petersen, representing self; Lee Chadbourn, representing self; James Malik,
representing self; Susan Kay, representing self; Valerie Williamson, representing self; Kay Bateman, representing
self; C Dupree, representing self; Jeanne Blackketter, representing self; Deborah McDermott, representing self;
Carol Rogala, representing self; Carol Clark, representing self; Larry Rounsaville, representing self; Wendy sa
representing self; Irene Lavor, representing self

Oppose:

Stephanie Romero, representing self; Maria Salvucci, representing self; Kevin Brown, representing self; Mary Ellen
Rimsza MD, representing self; Gail Kamaras, representing self; Kathleen Pettycrew, representing self; Dianne Post,
representing self; Dave Long, representing self; Robin LaVoie, representing self; Brent Gibbs, representing self;
Elizabeth Schauer, representing self; Linda Edwards, representing self; Barbara Oliver, representing self; Sherrilynn |
James, representing self; Kathy Fraser, representing self; Kimberlee McClure, representing self; Jeri Dow,
representing self; Gayle Meredith, representing self; Ralph Meredith, representing self; Matthew Nelson,
representing self; Diane Lings, representing self; Carrie L. Goode, representing self; GARY LEW OLIVER,
representing self; Kathy Pyner, representing self; Penny Boone, representing self; Susan Morris, representing self;
Margaret Adams, representing self; Cynthia Couture, representing self; kathleen mayer, representing self; Bradly
Duell, representing self; Jeffrey Fortney, representing self; Mary Fortney, representing self; Kathleen Dubbs,
representing self; Anne Leota Hart, representing self; Lucy Marshall, representing self; Rebecca Smith Gross,
representing self; Marilyn Coyle, representing self; Kathryn Kaczmarek, representing self; Ruth Shea, representing
self; Nancy Santori, representing self; Barbara Hutchinson, representing self; Julie Golding, representing self;
Lawrence Peters, representing self; Beverlee Loat, representing self; Darrell Boomgaarden, representing self; Ellen
M. Ferreira, representing self; Saflie Kladnik, representing self; Christopher Fleischman, representing self; Karen
Syversen, representing self; Carol Maas, representing self; Paula Feely, representing self; Joan Murphy,
representing self; Helen Kim, representing self; Murdock Holloway, representing self; Daria Lohman, representing
self; Craig McDermott, representing self; Barbarba Tellman, representing self; Sally Harvey, representing self; Ruth
Lambert, representing self; Mary Santy, representing self; Rebecca Scotney, representing self; Denise Link, PhD,
WHNP, representing self; Marshall Militano, representing self; Sarah Militano, representing self; Dana Nicolson,
representing self; Steve Ramos, representing self; Christina Mollica, representing self; Shirley Muney, representing
self; Judith Simons, representing self; William Parker, representing self; Valerie Policastro Edie, representing self;
Henne Queisser, representing self; Katherine Doman Sheydayi, representing self; Alexei Sheydayl, representing
self; Donita Ramos, representing self; Steven Linder, representing self; Mary Pradelt, representing self; Susan
Anderson, representing self; Kelly Rostan, representing self; Angela J. Miller, representing self; Elizabeth Putnam-
Hidalgo, representing self; Amy Etzkorn, representing self; Virginia Dotson, representing self; Christine Keitges,
representing self; Eve Shapiro, representing self; Sue Thorne, representing self; Janet Larkin, representing self;
Cynthia Hans, representing self; Sarah King, representing self; Kathleen Martin, representing self; Mary Ann
Graffagnino, representing self; Pat VanMaanen, representing self; Marilyn Childs, representing self; marilyn
duerbeck, representing self; Marguerite Chaikin, representing self; Jackie Rich, representing self; Charlie Silver,
representing self; Nancy Wood, representing self; Barbara Lynn Carpenter, representing self; Amy Bos,
representing self; Lisa Maczura, representing self; Christine McLachlan-Comer, representing self; Marilyn Murov,
representing self; Nelson Morgan, representing self; Joseph Alexander, representing self; Kathleen Sauer,
representing self; Nicole Fordey, representing self; Linda Cooke, representing self; Edna Weigel, representing self;
Kathleen Woessner, representing self; David Patchen, representing self; Alice Patricia Price, representing self;
Charlotte Lis, representing self; Jennifer Dawson, representing self; Francis Copple, representing self; Linda Paul,
representing self; Lori Taniguchi, representing self; David Myers, representing self; Eric Kadel, representing self;

ishani Deo, representing self; JOHN FIENE, representing self; Bryan Lane, representing self; Katharine Donahue,
representing self; Carol Garnett, representing self; Nora Pionsky, representing self; Connie Cockrell, representing
self; George Ehrlich, representing self; Dawn Norton LD29, representing self; Rebecca Haynes, representing self;
Mitchell Smith, representing self; Dianna DiMaggio, representing self; Sharon Ehrlich, representing sélf; Jerrold
Borchardt, representing self; ALICE BUCK, representing self; Margaret Owen, representing self; Donna Johnson,
representing self; Nancy Hancock, representing self; Mary Nelson, representing self; Jerry Wegenast, representing
self; Devon Sloan, representing self; Janie Smieszek, representing self; Thea Chalow, representing self; RITA
DEPUYDT, representing self; Rivko Knox, representing self; Crystal Bazarnic, representing self; Robert Fisher,
representing self; Teresa Kelleher, representing self; Jo Ann Caruthers, representing self; Christian Trujillo Cruz,
representing self; Judy Wegenast, representing self; Patricia Edelen, representing self; Karolyn Switzer,
representing self; Gary Rulapaugh, representing self; Karen Kaplan, representing self; Eileen Hollowell,
representing self; Catherine Hopkins, representing self; William Yohey, representing self; Gary Townsend,
representing self; Margaret Tinsley, representing self; Stephen Coyle, representing self; William S. James,
representing self; Sheila Green, representing self; Aaron Essif, representing self; Elizabeth Brauer, representing
self; Jane Atkins, representing self; Rebecca Shook, representing self; Lynn Chinnis, representing self; Nora Welsh,
representing self; Barbara Hurley, representing self; Roxanna Kearns, representing self; Charlene Campbell,
representing self; Erica Hansen, representing self; Melanie Magisos, representing self; Caroline Anderson,
representing self; Ariana Flores, representing self; Kathryn Dorn, representing self; jeff green, representing self;
Laura Henry, representing self; Dieter Knecht, representing self; Dorothy Reed-inman, representing self; Eric Harris,
representing self; Steve Singkofer, representing self; Claire Bickel, representing self; Margaret Lacey, representing
self; Cynthia Wagner, representing self; Cassandra Morano, representing self; Michael! Levine, representing self;
Suzette Taillac-Streit, representing self; marcia stewart, representing self; John Propster, representing self; Barbara
Swenson, representing self; Brenda Parker, representing self; Patricia Brunner, representing self; Valarie Bryant,
representing self; Allison Jackson, representing self; Denise Hudson, representing self; Carmen Terrell,
representing self; Libby Stortz, representing self; Theresa Ryan, representing self; Margaret Cordovano,
representing self; Leslie Hanson, representing self; Dee Maitland, representing self; Nancee K Wood, representing
self; Jacqueline deSa, representing self; Jillian Downs, representing self; Alicia Messing, representing self; Angela.
Buer, representing self; Carolyn Lowther, representing self; Barbara Jones, representing self; Beth Ballmann,
representing self; Lisa Koenig, representing self; Deborah Arn, representing self; Kathleen Schanus-Gohl,
representing self; Susan Heck, representing self; Jill Anderson, representing self; Cynthia Paster, representing self;
Christopher Cerrato, representing self; Sherri Johnson, representing self; Karen Robbins, representing self; Brandy
Reese, representing self; Linda Block, representing self; Mariann Leahy, representing self; Mary Maclin,
representing self; Peggy Church, representing self; Norman Fuchs, representing self; Roy Verdery, representing
self; Alison Danis, representing self; Julian Donahue, representing self; Paula Van Derven, representing self; Lois
Hansen, representing self; John Neville, representing self; Cheryl Stafford, representing self; Linda Guarino,
representing self; Jeannine Reno, representing self; Nancy Lecrone Nonini, representing self; Kathryn Anderson,
representing self; Zachary Rome, representing self; Michael Pyska, representing self; Nancy Branham, representing
self; Marcia Tingley, representing self; Linda Ekstrum, representing self; Courtney Coolidge, AZ CHAMBER OF
COMMERCE; Pat Johnson, representing self

All Comments:

Phyllis Lester, Self: We have to curb the social media interference.; John Matthews, Self: It's more than political
beliefs it's also medical beliefs as well.; Shirley Dye, Self: Good idea, do not know if it will fly due to Social Media
Cos going way beyond AZ state boundarfes. But it is good not to be able to censor or take down candidates.; Jere
Fredenburgh, Self: some common sense when using; Barbara Blewster, Self: Excellent bill.; Christine Maceri Genge,
Self: Brings some ethics and truth to media.; Philip Hubacek, Self: Censorship must be stopped. Media should not
be allowed to censor conservative voices.; Brandon LaBorde, Self: Supports ist amendment - only communists
would not support this.; Roger Gorres, Self: This bill restores the 1st amendment for social media.; Shannon
Severson, Self: Vote Yes. People shouldn't be discriminated against in the digital town square for their views and
thoughis.; Stephen Harris, Self: The extreme misbehavior of social media platforms has created a pressing need for
this bill. If enacted, it will most likely face a constitutional challenge. From a non-lawyer citizen’s point of view,
HB1106 seems well poised to survive the challenge; Valerie Giramberk, Self: Social media platforms are open to
the public in general and therefore, everyone should have a right to access and posts on these platforms. These
companies should not be allowed to discriminate based on political beliefs.; Barry Burkhardt, Self: This should be
done at the National level but the State needs to take the lead and set the examplel!!; Nikki Colletti, Self: The
extreme misbehavior of social media platforms has created a pressing need for this bill; Bridget Nelke, Self: this bill
presents a good format for defining parameters and consequences for non compliance thank you; Gary Saxhaug,
Self: Helps prevent people from being kicked off social media for their political beliefs. I'm a PC/SC.; Charles Bell,
Self: The extreme misbehavior of social media platforms has created a pressing need for this bill.; Joseph Myers,
Self: Provides media outlets from wrongful treatment of candidates running for office. This is an inappropriate use
of algorithm and social media to target certain candidates; Susan Kelly, Self: incorrect; Philip Bryson, Self: !am an
elected PC in Pima County LD18 precinct 262; Carrie Heikkala, Self: It's about timel; Joe Fiumara, Self: We need
more freedom of speech in this country and less social media banning.; Espe Frecks, Self: Helps prevent people
from being kicked off social media for their political beliefs; LI Busam, Self: This will help from people being banned
/ licked off social media for their political beliefs which violates the ist Amendment; Harold DarcAngelo, Self: LD15
PC; Mary Evelyn Simpson, Self: YavGOP PC. A much needed bill in the current social climate; Ken Zebal, Self: This is
ali about enforcing the first amendment you must support this; Gail Kamaras, Self: This is a conspiracy theory in
search of a problem.; Penny Boone, Self: This bill is inspired by an absurd conspiracy theory that right-wing
extremists are being persecuted by Big Tech. | oppose.; Susan Morris, Self: Based on irrational belief in
conspiracies.; Anne Leota Hart, Self: This is a ridiculous bill based completely ona conspiracy theory that
extremists like the Senator from LD 7 are being persecuted by Big Tech. Please stop wasting the people of Arizona's
time. Address important and real issues.; Kathryn Kaczmarek, Self: Dangerous bill if passed. | do not support
ordering social media to follow requirements listed in this bill.; Karen Syversen, Self: This bill is inspired by a
conspiracy theory that right-wingers are persecuted by Big Tech. This was proved wrong by the Twitter hearings.;
Saily Harvey, Self: This is a non-existent issue and a waste of time; Andrew Costanzo, Self: No censorship.; Gary
Zimmerman, Self: We must get social media out of the business of aiding and abetting election fraud and selective
partisan censorship.; Elizabeth Putnam-Hidalgo, Self: Stop the conspiracy/victim theories. Although often we might
WANT such tech settings, we don't actually have them.; Virginia Dotson, Self: Spreading lies to many thousands of
people constitutes a public nuisance. We must keep the protections we have, even though they are inadequate
to the scale of the problem.; William Bodine, Self: Follow the constitution and give freedom of speech.; David
Crowley, Self: Guaranteeing every citizens right to participate in Free Speech.; Sue Thorne, Self: Extreme right wing
candidates who spout conspiracy theories about vaccines that have prevented millions of deaths to those smart
enough to get them, outright lies about fair elections, books, teachers teaching history should be monitored &
curtailed; Kristine Rodriguez, Self: clearly a free speech issue. Yes!; Eric Lovelis, Self: As a PC in LD2, | am 100% in
favor of this bill and the 1st Amendment! Without free speech, there will be no discussion, and no chance to work
out differences. We need to be respectful even if we disagree. Vote Yes; Roy Scott Lassell, Self: | support. We need
to hear all non violent views. Open debate is a foundation of America.; Janet Ackerman, Self: | support. This bill
strengthens my 1st Amendment right to political speech.; Mary Ann Graffagnino, Self: Ridiculous}; Carol Stines,
Self: Social media is in cahoots with gov't agencies. We must not limit free speech.; Mary Jamsa, Self: Helps
prevent people from being shut down on social media because of their political beliefs.; Michael Mote, Self: 1am
stronly in favor of this bill which helps prevent people from being kicked off or silenced on social media for their
political beliefs. Big tech censorship is a huge problem in the country and help prevent that.; George Momper, Self:

Silencing opinions contrary to the government's narrative is a tool of dictators. Who is the supreme judge of
“disinformation” anyway. AZ used to be proud of it’s freedom.; Jay Ts, Self: Corporations are legal entities that
would not exist unless We the People created laws that allow them to exist. Therefore, corporations need to be
required to support ALL of our rights, just as the government is.; Raymond Darragh, Self: We need this bill to help
protect freedom of speech; Lee Chadbourn, Self: Prevent people from being kicked off social media platforms
because of their beliefs; Marguerite Chaikin, Self: such foolishness|; Susan Kay, Self: Republican LD3; Jackie Rich,
Self: can the state regulate this? shouldn't this be a federal bill?; C Dupree, Self: Helps prevent people from being
kicked off social media for their political beliefs.; Carol Rogala, Self: Strongly support.; Irene Lavor, Self: Free
speech is a first amendment right. No one should be kicked off social media for their political beliefs.; Lisa Maczura,
Self: So, behaving like a responsible adult on social media is now "woke"? A bad bill.; Jennifer Dawson, Self:
inspired by a conspiracy theory that right-wingers are being persecuted by Big Tech. ;this is nonsense.; Ishani Deo,
Self: Everyone, including political candidates, needs to be held to the same standards of behavior. If candidates fail
to meet this, social media platforms should have the right to prevent them behaving inappropriately; JOHN FIENE,
Self: Although there are good reasons to monitor social media, this bill is part of a conspiracy theory that Big Tech
is out to persecute Republicans. Write a new one, please.; Katharine Donahue, Self: No law should be based ona
conspiracy theory. Laws should be based on fact not fantasy.; Dawn Norton LD29, Self: Ban social media platforms
from "deplatforming" or "shadow banning" candidates under a conspiracy theory of persecution by Big Tech. Don't
pass this bill restricting platform moderation & amplifying harmful content.; Rebecca Haynes, Self: Battling an
imaginary opponent. Waste of time and money.; Mary Nelson, Self: First amendment?; Crystal Bazarnic, Self: lf
someone breaks the rules of a platform, they have the right (and responsibility) to take action. Support business.
Vote no.; Karolyn Switzer, Self: This is based on an unfounded conspiracy theory and doesn’t deserve to see the
light of day.; Catherine Hopkins, Self: If every person is not above the law, why would a legislator be above
standards set for all Americans? Legislators are Americans who volunteered to serve for all in their districts. Same
rules need to apply for all. Legislators are NOT above standard; William Yohey, Self: A private company should have
a right to ban anyone who is telling lies or malicious language SHOULD be ban.; Gary Townsend, Self: Anyone
placing false or inflammatory messaging should be banned to protect the public.; Margaret Tinsley, Self: Arizona
should not be regulating international social media platforms. Please vote no.; Elizabeth Brauer, Self: This is a
ridiculous bill. Social media platforms absolutely should ban candidates who spread lies about election integrity
and voter fraud.; Roxanna Kearns, Self: Social media platforms must have the ability to ban candidates who
promote violence; Caroline Anderson, Self: Inspired by a conspiracy theory that right-wingers, candidates in
particular, are being persecuted by Big Tech via settings which let the user post and browse the site normally but
limits their posts’ reach to other users.; Kathryn Dorn, Self: About deplatforming: being a candidate doesn't give
someone the right to incite violence without suffering any consequences. About “shadow banning": do you have
*any* actual evidence of that? (l.e., evidence that a court would accept?) | doubt it.; Steve Singkofer, Self: The .
government is the only entity that is prohibited from censoring people. Conspiracy theories notwithstanding. Vote
NO.; Cynthia Wagner, Self: Conspiracy theory; marcia stewart, Self: THis bill looks to be created based on false
information. The federal gov., is addressing more controls on social media, for many reasons, to include protecting
our children, which should be of greater interest.; John Propster, Self: Another silly bill from a silly woman. VOTE
NO! Save time and money since a veto is certain.; Theresa Ryan, Self: This is a Conspiracy Theory.; Margaret
Cordovano, Self: A candidate who posts on social media should follow the rules for posting and if he or she does
not; there should not be a free pass given just because he or she is a candidate for public office.; Dee Maitland,
Self: There is no conspiracy against Republicans. They just indulge in more hate and violent rhetoric than other
people.; Beth Ballmann, Self: This bill is inspired by a conspiracy theory that right wingers are being persecuted by
Big Tech. They aren't.; Susan Heck, Self: Oppose I’d be happy to take social media away from people that are
supporting big lies, misinformation, and hate speech. Just like | would take my teen’s phone away if they were
doing things that hurt the common good.; Christopher Cerrato, Self: NO!; Brandy Reese, Self: Private businesses
have the right to make and enforce their terms and conditions of service, so long as they aren't discriminating
against protected groups.; Lois Hansen, Self: it is a conspiracy theory that "big tech" is targeting and deplatforming
a political party; John Neville, Self: Not necessary censorship.; Chery! Stafford, Self: Those who trty to use a social
media platform for anti-American, anti-democratic or anti-constitutional communication should be able to be
banned by the platform.; Linda Guarino, Self: Politicians who lie and/or encourage violence should be banned.;
Jeannine Reno, Self: Elon Musk is letting previously banned Right-wing accounts back on Twitter. We have more
pressing issues in AZ than giving any time to this bill.; Nancy Branham, Self: | am constituent in LD7. This bill is
unnecessary and is based on theory that right candidates are being persecuted by Big Tech. Right wing candidates
should SERIOUSLY listen to their constituents. That's who they are voted to represent.

$B1138, banks: discrimination prohibition; social criteria (NOW:
business; discrimination prohibition: social criteria)

Support:

Theodore Farmer, representing self; Cathy Schwanke, representing self; Joseph Pikosz, representing self; Jeff
Mulder, representing self; Michele Ingram, representing self; Philip Hubacek, representing self; Susan Leeper,
representing self; Brandon LaBorde, representing self; Mark Logan, representing self; Cheryl Todd, representing
self; Robert Morrow, representing self; Roger Gorres, representing self; Teddi Thompson, representing self;
Theresa Logan, representing self; Charles McCain, representing self; Shannon Severson, representing self; Torsten
Leiboid, representing self; Stephen Harris, representing self; Valerie Giramberk, representing self; James Adams,
representing self; Virginia Reilly, representing self; Barry Burkhardt, representing self; Robert Puckett, representing
self; Anita Bruner, representing self; Robert Glass, representing self; Charles Mackey, representing self; Dianna
Gates, representing self; Gary Saxhaug, representing self; Susan Thomas, representing self; Claribeth Davis,
representing self; Melanie Hutchings, representing self; Laurie Foster, representing self; Joseph Myers,
representing self; Mary Kay Ruwette, representing self; Ann Pendarvis, representing self; Philip Bryson,
representing self; Catherine Tunget, representing self; Cherie Anello, representing self; Peter Anello, representing
self; Roy Morales, representing self; Dawn Hampton, representing self; A B, representing self; P B, representing
self; Laura Doyle, representing self; Joe Fiumara, representing self; Crystal O, representing self; Espe Frecks,
representing self; Pam Reinke, representing self; Sheilia Stoddard, representing self; Sandra Morrison, representing
self; John Gailey, representing self; LJ Busam, representing self; Juli Webb, representing self; Harold DarcAngelo,
representing self; Brent Meadows, representing self; Ken Zebal, representing self; Jeff Specter, representing self;
Henry Ganster, representing self; Denise Lockwood, representing self; Carol Stines, representing self; Donna Booth,
representing self; Gwen Carey, representing self; Kristine Rodriguez, representing self; William Bodine,
representing self; Doris Hinton, representing self; Eric Lovelis, representing self; Susan Kay, representing self;
Kathleen Hahn, representing self; Paul Thompson, representing self; Wendy Jonessee, representing self; Darrin
Bergstad, representing self; Jeff Caldwell, representing self; Walter Houtz Jr., representing self; Linda Scorzo, |
representing self; Chris Pedersen, representing self; Gretchen Petersen, representing self; Sue VanRiper,
representing self; Randy Leier, representing self; Terry Fair, representing self; Mary Jamsa, representing self;
Thomas Burke, representing self; Theresa Breithaupt, representing self; Wayne Throw, representing self; Pam
Throw, representing self; Larry Worley, representing self; diane marins, representing self; Kathy Madsen,
representing self; Julie Solem, representing self; Anne Rankin, representing self; Roy Scott Lassell, representing
self; Patricia Rosner, representing self; Bonnie Rine, representing self; Donna Malik, representing self; Gisela Aaron,
representing self; Marti Alvarado , representing self; Michael Aaron, representing self; Michael Mote, representing
self; George Momper, representing self; Rick Wynant, representing self; Raymond Darragh, representing self; Lee
Chadbourn, representing self; James Malik, representing self; Valerie Williamson, representing self; Janet

Ackerman, representing self; Judith Swietlik, representing self; C Dupree, representing self; Jeanne Blackketter,
representing self; Deborah McDermott, representing self; Carol Rogala, representing self; Carol Clark, representing
self; Larry Rounsaville, representing self; Irene Lavor, representing self

Oppose:

Stephanie Romero, representing self; Kevin Brown, representing self; Dianne Post, AZ NATIONAL ORGANIZATION
FOR WOMEN (NOW},-Self, STATE CONFERENCE NAACP; Mary Ellen Rimsza MD, representing self; Robin LaVoie,
representing self; Elizabeth Goff, representing self; Dave Long, representing self; Brent Gibbs, representing self;
Elizabeth Schauer, representing self; Linda Edwards, representing self; Charlotte Lis, representing self; Sherrilynn
James, representing self; Kathy Fraser, representing self; Kimberlee McClure, representing self; Jeri Dow,
representing self; Barbara Oliver, representing self; Gayle Meredith, representing self; Ralph Meredith,
representing self; Diane Lings, representing self; Carrie L. Goode, representing self; GARY LEW OLIVER,
representing self; Kathy Pyner, representing self; Rebecca Haynes, representing self; Susan Morris, representing
self; Margaret Adams , representing self; Cynthia Couture, representing self; Margaret Owen, representing self;
Mary Nelson, representing self; Thea Chalow, representing self; Crystal Bazarnic, representing self; kathleen mayer,
representing self; Bradly Duell, representing self; Robert Fisher, representing self; Jo Ann Caruthers, representing
self; Jeffrey Fortney, representing self; Mary Fortney, representing self; Kathleen Dubbs, representing self; Lucy
Marshall, representing self; Raquel Mamani, representing self; Anne Leota Hart, representing self; Gary Rulapaugh,
representing self; Marilyn Coyle, representing self; Penny Boone, representing self; Eileen Hollowell, representing
self; margaret gallagher, representing self; Kenneth Bierman, representing self; Ruth Shea, representing self;
Barbara Hutchinson, representing self; Nancy Santori, representing self; Stephen Coyle, representing self;

' Lawrence Peters, representing self; Julie Golding, representing self; Beverlee Loat, representing self; Darrell
Boomgaarden, representing self; Sallie Kladnik, representing self; Ellen M. Ferreira, representing self; Christopher
Fleischman, representing self; William Yohey, representing self; Carol Maas, representing self; Roxanna Kearns,
representing self; Murdock Holloway, representing self; Helen Kim, representing self; Daria Lohman, representing
self; Craig McDermott, representing self; Caroline Anderson, representing self; Ariana Flores, representing self;
Anne Thompson, representing self; Karen Syversen, representing self; Jessica Haug, representing self; Barbarba
Tellman, representing self; Dorothy Reed-Inman, representing self; Ruth Lambert, representing self; Sally Harvey,
representing self; Cassandra Morano, representing self; Mary Santy, representing self; Rebecca Scotney,
representing self; Kathryn Kaczmarek, representing self; Melissa Sadorf, representing self; Sarah Militano,
representing self; Marshail Militano, representing self; Denise Link, PhD, WHNP, representing self; Steve Ramos,
representing self; Christina Mollica, representing self; Dana Nicolson, representing self; Shirley Muney,
representing self; Judith Simons, representing self; William Parker, representing self; Henne Queisser, representing
self; Sharon Lee, representing self; Steven Linder, representing self; Donita Ramos, representing self; Mary Pradelt,
representing self; Susan Anderson, representing self; Kelly Rostan, representing self; Angela J. Miller, representing
self; Elizabeth Putnam-Hidalgo, representing self; Amy Etzkorn, representing self; Virginia Dotson, representing
self; Eve Shapiro, representing self; Deborah Arn, representing self; Sue Thorne, representing self; Kari Hull,
representing self; Janet Larkin, representing self; Jeanne Devine, representing self; Becky Sayler, representing self;
Mary Maclin, representing self; Marilyn Childs, representing self; Emily Norton, representing self; Roy Verdery,
representing self; marilyn duerbeck, representing self; Mary Ann Graffagnino, representing self; Marguerite
Chaikin, representing self; Jackie Rich, representing self; Kathryn Anderson, representing self; Wes Oswald,
representing self; Janet Senf, representing self; Charlie Silver, representing self; Michael Pyska, representing self; .
Nancy Branham, representing self; Wendy Briggs, AMERICAN PROPERTY CASUALTY INSURANCE ASSOCIATION;
Daniel Romm, NATIONWIDE MUTUAL INSURANCE COMPANY; Nancy Wood, representing self; Barbara Lynn
Carpenter, representing self; Darren Clift, representing self; Ryan Boyd, AZ ASSOCIATION OF COUNTIES; Pat
Johnson, representing self; Jay Kaprosy, Arizona Bankers Association; Jennifer Coleman, representing self; Lisa

Maczura, representing self; Christine McLachlan-Comer, representing self; Maria Salvucci, representing self;
Marilyn Murov, representing self; Nelson Morgan, representing self; Kathleen Sauer, representing self; Joseph
Alexander, representing self; Nicole Fordey, representing self; Linda Cooke, representing self; Kathleen Woessner,
representing self; Francis Copple, representing self; Frederick James, representing self; Linda Paul, representing
self; Lori Taniguchi, representing self; Eric Kadel, representing self; Jennifer Dawson, representing self; David Myers,
representing self; ishani Deo, representing self; Bryan Lane, representing self; Nora Plonsky, representing self;
Connie Cockrell, representing self; Dawn Norton LD29, representing self; George Ehrlich, representing self;
Katharine Donahue, representing self; Mitchell Smith, representing self; Sharon Ehrlich, representing self; Jerrold
Borchardt, representing self; ALICE BUCK, representing self; Donna Johnson, representing self; Nancy Hancock,
representing self; Jerry Wegenast, representing self; Devon Sloan, representing self; RITA DEPUYDT, representing
self; Rivko Knox, representing self; Teresa Kelleher, representing self; Christian Trujillo Cruz, representing self; Judy
Wegenast, representing self; Patricia Edelen, representing self; Patricia Van Tuyl, representing self; Karolyn Switzer,
representing self; Karen Kaplan, representing self; Margaret Tinsley, representing self; Catherine Hopkins,
representing self; Victor Peterson, representing self; Sheila Green, representing self; Rebecca Shook, representing
self; Barbara Hurley, representing self; Nora Welsh, representing self; Erica Hansen, representing self; Charlene
Campbell, representing self; Melanie Magisos, representing self; Kathryn Dorn, representing self; Aaron Essif,
representing self; jeff green, representing self; Dieter Knecht, representing self; Lisa Calderon, representing self;
Laura Henry, representing self; Eric Harris, representing self; Claire Bickel, representing self; Steve Singkofer,
representing self; Margaret Lacey, representing self; Lora Lida Walradt, representing self; Cynthia Wagner,
representing self; Barbara Swenson, representing self; Allison Jackson, representing self; marcia stewart,
representing self; Brenda Parker, representing self; Patricia Brunner, representing self; Carrie Sampson,
representing self; Valarie Bryant, representing self; Carmen Terrell, representing self; Libby Stortz, representing
self; Theresa Ryan, representing self; Leslie Hanson, representing self; Leslie Stallcop, representing self; Nancee K
Wood, representing self; Jacqueline deSa, representing self; Angela Buer, representing self; Carolyn Lowther,
representing self; Barbara Jones, representing self; Lisa Koenig, representing self; Kathleen Schanus-Gohl,
representing self; Jill Anderson, representing self; Karen Robbins, representing self; Christopher Cerrato,
representing self; Sherri Johnson, representing self; Linda Block, representing self; Alice Patricia Price, representing
self; Mariann Leahy, representing self; Austin De Bey, Gowest Credit Union Associaton; Janie Smieszek,
representing self; Pierre Desombre, representing self; Peggy Church, representing self; Cassio Saverino,
representing self; Alison Danis, representing self; Julian Donahue, representing self; Paula Van Derven,
representing self; Sharon Hendrickson, representing self; Lois Hansen, representing self; Eric Ossowski MD,
representing self; Cheryl Stafford, representing self; Dianna DiMaggio, representing self; Claudia Oreck-Teplitsky,
representing self; Nancy Lecrone Nonini, representing self; Zachary Rome, representing self; Leda DeViieger,
representing self; Marcia Tingley, representing self; Shirley Isaacson, representing self; Courtney Coolidge, AZ
CHAMBER OF COMMERCE; Brandy Reese, representing self

All Comments:

Theodore Farmer, Self: NO ESG; Philip Hubacek, Self: Discrimination for ESG opinions has no place for companies
or individuals.; Brandon LaBorde, Self: ESG is a backdoor to centralized control, akak communism. It is evil and will
be used against individuals if allowed to have legal force. This bill protects individuals who differ from radical
leftist ESG doctrine.; Roger Gorres, Self: The enforcement of ESG policies for all, is nothing other than socialism,
and places a undue financial burden on the middle and lower class.; Shannon Severson, Self: Vote YES. STOP
Chinese Communist Party-style social credit score systems that are unconstitutional, discriminatory and un-
American.; Stephen Harris, Self: Protects individuals from being forced to adhere to ESG policies to participate in
the economy; Valerie Giramberk, Self: Banks, insurers and others should not force an individual to accept the
insane notion of ESG (equal outcome for all) in order to due business. This is a country of equal opportunity. Let
hard work and merit determine the outcome.; Gary Saxhaug, Self: Protects individuals from being forced to adhere
to ESG policies to participate in the economy. I'm a PC/SC.; Joseph Myers, Self: Promotes limited discrimination
based on political affiliation and other kinds of woke ideologies, such as ESG scores and unsustainable
environmental policies; Philip Bryson, Self: |am an elected PC in Pima County LD18 precinct 262; Joe Fiumara, Self:
No more ESG scoring or restrictions. ESG is a scam.; Crystal O, Self: better response to the ESG issue would be to
restrict government from imposing social credit requirements on banks; Espe Frecks, Self: Protects individuals from
being forced to adhere to ESG policies to participate in the economy; LI Busam, Self: People should NOT be
penalized or forced to adhere to ESG guidelines to participate in the economy. This is detrimental to our entire
nation; Harold DarcAngelo, Self: LD15 PC; Ken Zebal, Self: To my way of thinking ESG policies are blatantly
unconstitutional and this bill protects us from ESG; Carol Stines, Self: the whole ESG thing is made up and should
not be used against companies; Kristine Rodriguez, Self: the radical concept of ESG's for businesses or individuals in
America is anachronistic and belongs in the waste bin of history along with other freedom destroying communist
concepts; William Bodine, Self: | don't want government requiring me to follow ESG policies. Keep your hands off
of wallet. SG is anti-american and anti-capitalistic.; Eric Lovelis, Self: As a PC in LD2, i am 100% against this bill.
Being told how to run my business is no business of the government. Free Enterprise is what made America the
greatest nation on the planet! Please vote YES on this biil.; Susan Kay, Self: Republican LD3; Mary Jamsa, Self:
Protects people from being forced to adhere to ESG policies to participate in the economy.; Dianne Post, AZ
NATIONAL ORGANIZATION FOR WOMEN (NOW}, Self, STATE CONFERENCE NAACP: Social criteria and
nondiscrimination are in fact good for business and those who do it are more profitable and stable. What is it you
fear?; Barbara Oliver, Self: If this bill passes it could cost AZ millions!; Rebecca Haynes, Self: if the measure passes,
most banks would not be able to work with any Arizona counties. as the Coconino County treasurer says, “How are
teachers going to get payroll if} don’t have a bank i can.work with?”; Susan Morris, Self: Sen. Hoffman et al do not
seem to understand the value of responsible investing.; Margaret Owen, Self: As | understand it, out of Arizona’s
15 county treasurers (the majority of whom are Republicans!}, 14 of them actually oppose this bill. That pretty
much says it all to me. | oppose this bill.; Crystal Bazarnic, Self: Business is free to create their policy. The people
are free to vote with their wallets. Vote no on this!; kathleen mayer, Self: violates 1st amendment rights of
businesses; Kathleen Dubbs, Self: Listen to your county treasurers! This bill is ridiculous; Anne Leota Hart, Self: This
will cost teachers and others to lose millions of dollars for no good reason. This is another kooky extremist position
and an invalid interpretation of discrimination. Shame on them.; Penny Boone, Self: Banning ESG is unethical. It is
extremist rhetoric, This bill may cost Arizonians millions of dollars. | oppose.; Eileen Hollowell, Self: Culture war
statement that is opposed by most counties. Bad policy; Christopher Fleischman, Self: Government overreach into
banks’ business decisions.; William Yohey, Self: Hoffman wants to regulate banks. Since most county treasurers
oppose this bill so should the legislators.; Roxanna Kearns, Self: Fourteen of Arizona's 15 county treasurers oppose
this bill.; Caroline Anderson, Self: If the measure passes, most banks would not be able to work with any Arizona
counties. Fourteen of Arizona's 15 county treasurers (10 of whom are Republicans) oppose-the bill. Such efforts
could cost Arizona millions.; Karen Syversen, Self: 14 of 15 country treasurers (of which 10 are GOP), oppose this
billl; Sally Harvey, Self: This is a ridiculous bill and would result in an unworkable environment for county
treasurers; Kathryn Kaczmarek, Self: 14 of our 15 AZ county treasurers oppose this bill, that’s how bad this would
be for our state. Horrible bill.; Judith Simons, Self: Thoughtless, unnecessary, would cause great harm.; Mary
Pradelt, Self: Listen to the stakeholders (banks) who strongly oppose this senseless bill; Virginia Dotson, Seif: This
would severely fimit Arizonans' banking choices. It would be harmful.; Sue Thorne, Self: Dingbat Sen Hoff has
produced a bill that 10 saner Repub. county treasurers are opposed to because banks realize we must go ESG to ~
get Climate Chng ;under control. This Bill will cost AZ millions. One treasurer asks “How will teachers be paid?"
NO!I!; Jeanne Devine, Self: Stop trying to control banks that endorse social or environmental values.; Roy Scott
Lassell, Self: | fully support. This is the right approach.; Gisela Aaron, Self: No discrimination on ESG values.; Marti
Alvarado , Self: | support. No more discrimination in how we live our lives.; Roy Verdery, Self: As a socially
responsible investor, | think banks and other institutions should have the absolute right to do business and make
investments based on their contribution to the greater good of society and other social criteria.; Mary Ann
Graffagnino, Self: Just wrong and discriminatory.; Michael Mote, Self: 1 am in favor of this bill which protects
individuals from being forced to adhere to ESG policies and discriminating against any person based on certain
affiliations or value-based criteria.; George Momper, Self: If you do not support this | would assume you admire
the Communist Party of China’s ability to neutralize people.; Lee Chadbourn, Self: No one should be forced to
adhere to ESG Policies; Jackie Rich, Self: This bill would prevent most banks from working with any AZ counties.
This bill needs to be amended.; Janet Ackerman, Self: | support. We shouldn’t be forced to adhere to ESG policies
in order to even participate in the economy.; C Dupree, Self: Protects individuals from being forced to adhere to
ESG policies to participate in the economy.; Carol Rogala, Self: Strongly support.; Darren Clift, Self: Senator Barry
Goldwater said It best: “This country has grown great and strong and prosperous by placing major reliance ona
free economy...Private property, free competition, hard work-these have been our greatest tools.” | encourage you
to vote no.; Irene Lavor, Self: Individuals should NOT be forced to adhere to ESG policies to participate in the
economy. Not ina free country!!; Lisa Maczura, Self: Unworkable and anti-business. Leave the banks alone.;
Marilyn Murov, Self: How will counties meet payroll if they can’t find a bank to work with? This bill hurts Arizona
and could cripple us.; Nelson Morgan, Self: This bill interferes with the normal operation of business by banks. It's
governmental overreach.; Joseph Alexander, Self: A misguided proposal with very-serious negative impacts
throughout AZ.; Linda Paul, Self: Allow banks to perform business as they see fit. This is governmental over reach
with consequences for the budget/\.; Jennifer Dawson, Self: Fourteen of Arizona's 15 county treasurers (10 of
whom are Republicans) oppose the bill; “How are teachers going to get payroll if | don’t have a bank | can work -
with?” Could cost AZ millions.; Ishani Deo, Self: This doesn't do anything other than create problems for state
systems and make it impossible to do business in or with Arizona; Dawn Norton LD29, Self: The bill would prohibit
banks from discriminating based on political affiliation, social or environmental values. But it could cost AZ millions
and hinder basic services. Fourteen county treasurers oppose it. Reject this bill.; Katharine Donahue, Self: Bad idea
and probably based on the parochial social agenda of the sponsor.; Rivko Knox, Self: When 10 Rep. County
Treasurer's oppose this bill, | think we have a problem!! Vote NO}; Patricia Van Tuyl, Self: Bill would tie the hands
of investors, drastically limiting investment choices and likely to taxpayers hundreds of millions of dollars
nationwide and legislating Arizona’s county treasurers out of having access to banks they can use for payroll.;
Karolyn Switzer, Self: This is a bad idea on so many fronts - most AZ county treasurers oppose it because it would
make their work more difficult.; Margaret Tinsley, Self: This would be horribly limiting to investment. Please vote
no.; Catherine Hopkins, Self: An unreasonable bill. County treasurers are opposing this bill since their hands would
be tied paying teachers as no bank could be worked with. Reimagine the bill. This is not the correct bill; Kathryn
Dorn, Self: Are you prepared to explain how you broke the state's economy by forcing most banks and credit
unions out (depriving people of basic services like check-cashing)? If not, please vote against this. Banks don't
have to fund human rights abuses.; Steve Singkofer, Self: Capitalists are, apparently, only capitalists if and when
they can force people to buy their shit. VOTE NO.; Lora Lida Walradt, Self: LD 8 voter: Punitive bill that would that
leave counties without banks to process payrolls, result in loss of vital services, government shut downs and
economic chaos, cost the state millions. REPUBLICANS & Democrats both oppose this bill.; Cynthia Wagner, Self:
Fourteen of Arizona's 15 county treasurers (10 of whom are Republicans) oppose the bill; as the Coconino County
treasurer says, “How are teachers going to get payroll if | don’t have a bank i can work with?”; marcia stewart, Self:
Investment decisions in government workers future retirement funds, need to be handled by professionals and not
politicians. Cultural issues should not be considerations. Allow the experts to work on the future finances; Theresa
Ryan, Self; Even Republicans are against this bill. As a former banker | know banks can't discriminate based on
political affiliation, or social or environmental values. This is a bogus bill.; Janie Smieszek, Self: Too many banks
would not be useable.; Cassio Saverino, Self: Another attempt to punish and micro manage local entities to punish
schools. And you wonder why we have 3000 openings.; Lois Hansen, Self: One recent study says such efforts could
cost Arizona millions.; Eric Ossowski MD, Self: Bad Bill; Cheryl Stafford, Self: Fourteen of Arizona's 15 county
treasurers (10 of whom are Republicans) oppose the bill. This would impede teachers and other public service
employees from having a bank from which to get their paychecks.; Shirley Isaacson, Self: t am an Az. voter; Brandy
Reese, Self: This bill is government overreach and infringement into the affairs of private businesses. It is an
egregious abuse of power.

$B1161, probation; work time credits: reporting

Support:

Jake Hinman, Arizona Multihousing Association; Diana Devine, representing self; Lourdes Pefia, ARIZONA
HOUSING COALITION; Gaelle Esposito, Urban Phoenix Project; Christian Solorto, representing self; Sarah
Shambrook, representing self; Michelle Ashton, representing self; Emily Ryan, Southern Arizona Home Builders
Association; Kenneth Bierman, representing self; Dianne Post, AZ NATIONAL ORGANIZATION FOR WOMEN (NOW),
Self, STATE CONFERENCE NAACP; Becky Sayler, representing self; Sharon Lee, representing self; Barbara Quijada,
representing self; Kathleen Dubbs, representing self; Francisco "Hugo" Polanco, UNIDOSUS; Christine McLachlan-
Comer, representing self; Nancy Lecrone Nonini, representing self; Wendy Jonessee, representing self; Sue
VanRiper, representing self; Steven Moortel, Chicanos Por La Causa; Theresa Breithaupt, representing self; Dianne
McCallister, Dominium; Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ

Neutral:

Jackie Rich, representing self

Oppose: .
Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS, PHOENIX, CITY OF, TUCSON, CITY OF; Susan Edwards,
representing self; Mayor Ginny Dickey, representing self; Ellen Punyon, representing self; Miranda DeWitt, MESA,
CITY OF; Jack W Lunsford, BUCKEYE, CITY OF; Jana Segal, representing self; Daniel Stormont, representing self; Vice
Mayor Scott Moore, PARADISE VALLEY, TOWN OF; Neal Haddad, representing self; Counilwoman Sharron
Grzybowski, representing self; joan hall, representing self; Anna Thomasson, Town Of Paradise Valley; Carrie
Heikkala, representing self; Bob Alonzo, representing self; Judy Alonzo, representing self; Rivko Knox, representing

self

All Comments:

Jake Hinman, Arizona Multihousing Association: Support Ortiz Striker; Diana Devine, Self: Support the strike
everything amendment; Christian Solorio, Self: This bill will removing zoning barriers to building new affordable
housing. This will help provide high quality affordable housing in areas near public transportation.; Sarah
Shambrook, Self: Regarding strike everything amendment; Emily Ryan, Southern Arizona Home Builders
Association: In support of the strike everything amendment to $B1161; Steven Moortel, Chicanos Por La Causa:
Support of the Strike Everything amendment.; Theresa Breithaupt, Self: $B1161; Dianne McCallister, Dominium:
We support the strike everything of Rep Ortiz dealing with zoning reform.; Mayor Ginny Dickey, Self: | agree with
the League in opposition to the proposed striker on $B1161 that includes provisions of failed SB1117 preempting
local zoning decision-making.; Ellen Punyon, Self: Affordable housing- yes. Lack of accountability-no; Jack W
Lunsford, BUCKEYE, CITY OF: We oppose the bill with the striker being offered in House Commerce.; Jana Segal,
Self: This bill doesn’t allow for development less than 80 feet in height, doesn’t allow for less than the maximum
density specified by current zoning, and doesn’t allow for general plan amendments or permit review - particularly
for Tucson and Phoenix.; Daniel Stormont, Self: | support efforts to increase urban infill and availability of low-
income housing; however, this Strike Everything amendment is an obvious gift to developers and aimed specifically
at Tucson and Phoenix to prevent local control in their communities.; Neal Haddad, Self: This bill does nothing to
guarantee affordable housing, nor does it reduce the price of a new home or housing. Despite what the sponsors
Say, it strips the rights of citizens to petition the government for a redress of grievances. We have no voice,;
Counilwoman Sharron Grzybowski, Self: contains components of 1117 that are simply bad for cities and towns;
Carrie Heikkala, Self: NO! This bill is criminal! 1 can’t believe two republicans sponsor this!; Jackie Rich, Self: re:
striker - Agree with need for local governments to plan for housing and giving preference to AZ residents in low
income housing. 80-foot towers are too high and too dense for very low income housing.

$B1i1163, bond or override: contracts; prohibition

Support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Jake Hinman, Arizona Multihousing Association;
Christian Solorio, representing self; Brian Tassinarl, MANUFACTURED HOUSING INDUSTRY OF AZ; Dianne
McCallister, Dominium; Emily Ryan, Southern Arizona Home Builders Association; Shirley Dye, representing self;
Kay Reardon, representing self; Jere Fredenburgh, representing self; Barbara Blewster, representing self; Christine
Maceri Genge, representing self; Dennis Genge, representing self; Jennifer Wellsman, representing self; Nancy
Hawkins, representing self; Mark Logan, representing self; Jerry Clingman, representing self; Theresa Logan,
representing self; Barbara Quijada, representing self; Stephen Harris, representing self; Gaelle Esposito, Urban
Phoenix Project; Francisco "Hugo" Polanco, UNIDOSUS; Corinne Haynes, representing self; Buffalo Rick Galeener,
representing self; James Adams, representing self: Dianna Gates, representing self; Bridget Nelke, representing
self; Charles Bell, representing self; Melanie Hutchings, representing self; James McFadzean, representing self;
Lynn Ludwig, representing self; Beverly Ann, representing self; Phyllis Lester, representing self; Susan Kelly,
representing self; Kelly Parks, representing self; L) Busam, representing self; James L Simpson, representing self;
Mary Evelyn Simpson, representing self; Indy Rebhun, representing self; Henry Ganster, representing self; Denise
Lockwood, representing self; Cynthia Finnegan, representing self; Andrew Costanzo, representing self; Wendy
Jonessee, representing self; Jay Ts, representing self; Victoria Doherty, representing self; Sue VanRiper, -
representing self; Steven Moortel, Chicanos Por La Causa; James Pallas, representing self; Gary Zimmerman,
representing self; Jane Evans, representing self; Theresa Breithaupt, representing self; Kay Bateman, representing
self; Ryan Larson, representing self

Oppose:

Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS, PARADISE VALLEY, TOWN OF, PHOENIX, CITY OF, TUCSON,
CITY OF, YUMA, CITY OF; Susan Edwards, representing self; Mayor Ginny Dickey, representing self; Marge Zylia,
TEMPE, CITY OF; Lauren King, City Of Sierra Vista, Town Of Marana, Town Of Prescott Valley; Craig McDermott,
representing self; Alisa McMahon, representing self; Jack W Lunsford, BUCKEYE, CITY OF; Jackie Rich, representing
self; Vice Mayor Scott Moore, PARADISE VALLEY, TOWN OF; Neal Haddad, representing self; Counilwoman Sharron
Grzybowski, representing self; Heather Bernacki Wilkey, QUEEN CREEK, TOWN OF; Anna Thomasson, Town Of
Paradise Valley; Alexis Apodaca, CHANDLER, CITY OF; Ginna Carico, GOODYEAR, CITY OF; Emily Webb, PEORIA, CITY
OF; Carrie Heikkala, representing self; Bob Alonzo, representing self; Judy Alonzo, representing self; Dale Wiebusch,
"SCOTTSDALE, CITY OF "; Marc Osborn, Town Of Queen Creek

All Comments:
Brian Tassinari, MANUFACTURED HOUSING INDUSTRY OF AZ: We support this bill with the S/E amendment;
Dianne McCallister, Dominium: We support the strike-everything amendment.; Emily Ryan, Southern Arizona

Home Builders Association: In support of the strike everything amendment to $B1163; Shirley Dye, Self: Having
served ona school board, this is great, except, the non bid contracts that Districts use that are pre- qualified. Also,
rural districts have a lot more issues with relationships with contractors than the metro districts. Hopefully will
work; Jere Fredenburgh, Self: Needs to include no-bid contracts or there is a loop hole.; Barbara Blewster, Self:
Excellent bill. This should have been done years ago. Thank you. Excellent.; Christine Maceri Genge, Self: Let's get
monied donors from bidding on contracts to organizations they have donated to.; Stephen Harris, Self: Help to
prevent conflicts of interest.; Bridget Nelke, Self: This is a good bill to eliminate or greatly reduce the occurance of
contracts awarded to bond election financial supporters; Susan Kelly, Self: Incorrect selection; Mary Evelyn
Simpson, Self: Yav GOP PC totally agree.. Contract with public monies should not be no-bed; Andrew Costanzo,
Self: Prohibit conflict-of-interest. Stop no bid contracts.; Steven Moortel, Chicanos Por La Causa: Support the Strike
Everything Amendment; Gary Zimmerman, Self: Common sense law to avoid conflicts of interest, perceived or
real.; Mayor Ginny Dickey, Self: | agree with the League in opposition to the proposed striker on SB1163 that
includes provisions of failed $B1117 preempting local zoning decision-making.; Craig McDermott, Self: Re: the
striker What does the state mine inspector have to do with "S/E: municipal; zoning; housing assessment; report"?
Of course, even without the multiple subjects, the striker is anti-municipality garbage; Alisa McMahon, Self:
Striker: Another pro-development bill being promoted as a solution to "affordable housing." Another attempt at
state preemption.; Jack W Lunsford, BUCKEYE, CITY OF: Oppose the striker; Jackie Rich, Self: this striker interferes
in zoning by removing all single family zones and replacing with 6 homes per acre and establishes setbacks etc.
Leave zoning alone! | like the requirement for cities to address housing. Support local control.; Neal Haddad, Self:
This bill does nothing to guarantee affordable housing, nor does it reduce the price of a new home or housing.
Despite what the sponsors say, it strips the rights of citizens to petition the government for a redress of grievances.
We have no voice,; Counilwoman Sharron Grzybowski, Self: contains components of 1117 that are simply bad for
cities and towns; Heather Bernacki Wilkey, QUEEN CREEK, TOWN OF: The Town is opposed to the strike-everything
amendment being offered to SB 1163.; Ginna Carico, GOODYEAR, CITY OF: Opposed to the strike-everything
amendment; Emily Webb, PEORIA, CITY OF: Opposed to strike-everything amendment.; Carrie Heikkala, Self: NO}
This bill is criminal! | can't believe two republicans sponsor this!; Dale Wiebusch, "SCOTTSDALE, CITY OF ": Against
the House Commerce strike-everything amendment.; Marc Osborn, Town Of Queen Creek: Working with the
amendment sponsor on language

SB1198, restored salvage vehicle titles; inspections

Support:

Eric Buckeye, representing self; Wendy Jonessee, representing self

Oppose:
Charles Markle, representing self; Mike Gardner, ROCKWELL PROPERTY CO

All Comments:
Charles Markle, Self: Representing Rockwell Property
SCR1033, state debt: limit: restrictions: prohibitions

Support:

Karen Chaney, representing self; Charles McCorkle, representing self; Dwight Kadar, representing self; Andrea
Kadar, representing self; Lou Sniderman, representing self; Louis Petty, representing self; Aimee Yentes, AZ FREE
ENTERPRISE CLUB; Janelle Solomon, representing self; James Collins, representing self; David Schafranka,
representing self; Susan Leeper, representing self; David Riley, representing self; Robert Anderson, representing
self; Robert Gumfory, representing self; Michael Schroeder, representing self; Teddi Thompson, representing self;
Gayle Peters, representing self; Charles McCain, representing self; Raymond Wilson, representing self; Michael
Meacham, representing self; Deanna Schreckler, representing self; Stephen Harris, representing self; Leann
Anderson, representing self; Leslie White, representing self; Patricia Gillenwater, representing self; Joe Hopf,
representing self; Ute Edge, representing self; Bill Edge, representing self; Michael Schultz, representing self;
Sherrylyn Young, representing self; Lyle Aldridge, representing self; Ana P Sexton, representing self; Dorie Duff,
representing self; Charles Mackey, representing self; Ruth Foelber, representing self; Debbie Joy, representing
self; Sally Forster, representing self; Karl Forster, representing self; Nikki Colletti, representing self; Vicki Vaughn,
representing self; Dianna Gates, representing self; Carole Challoner, representing self; Gary Saxhaug, representing
self; Kim Miller, representing self; Melanie Hutchings, representing self; James McFadzean, representing self; Jana
Reible, representing self; Lori Huff, representing self; Lynn Ludwig, representing self; Jean Ferguson, representing
self; Mary Grace Werner, representing self; Joseph Myers, representing self; Nikki Eancheff, representing self;
Richard Burke, representing self; Mary Ann Johnston, representing self; Mary Kay Ruwette, representing self;
Vickie Parks, representing self; Ann Pendarvis, representing self; David Hanke, representing self; Catherine Tunget,
representing self; Kelly Parks, representing self; K Webster, representing self; Tim Johnson, representing self;
Robbin. Parisek, representing self; Dawn Hampton, representing self; Ruth Denny, representing self; Kathy
DuFresne, representing self; Janet Wilson, representing self; Joe Fiumara, representing self; Nancy Osgood,
representing self; Larry Battin, representing self; Berta Lockhart, representing self; Jack Payne, representing self;
Mozelie Ault, representing self; Kristin Baumgartner, representing self; Stan Howard, representing self; Thaya
Howard, representing self; Marcella Cronenberg, representing self; Earl Taylor, representing self; James L Simpson,
representing self; Richard Freeze, representing self; Mary Evelyn Simpson, representing self; Phil Sahag,
representing self; Christine Stoner, representing self; Patricia Keitel, representing self; John Reed, representing
self; Beth Pojman, representing self; Janice Rimer, representing self; Dale Brewer, representing self; Margaret
Barnes, representing self; Mary Jamsa, representing self; Wendy Radimer, representing self; Danny Costa,
representing self; Jane Evans, representing self; Paul Johnson, representing self; Nancy Barrett, representing self;
Joelene Williamson, representing self; Jeannette Bovert, representing self; George Racz, representing self; karen
enns, representing self; Cheri Raimonde, representing self; John Davidson, representing self; Paul Marriott,
representing self; Jennifer Marriott, representing self; Lynda Patrick-Hayes, representing self; K Caiflier,
representing self; Aliaa Abdel-Gawad, representing self; Nancy Thornes, representing self; Deborah McDermott,
representing self; Charles Moffett, representing self; Sue VanRiper, representing self; Susan Taraba, representing
self; Theresa Breithaupt, representing self; Jacqueline Quinn, representing self; Teresa Schrader, representing self;
Lois Dold, representing self; Laura Davis, representing self; Daniel Spencer, representing self; Doyle Taraba,
representing self; Judy Alonzo, representing self; Bob Alonzo, representing self; Jim Jensen, representing self;
Susan Kay, representing self; Susan Gavigan, representing self; Karen Trisko, representing self; Doris Hinton,
representing self; Scott Chance, representing self; Ted Burwell, representing self; Bonnie Lund, representing self;
Marcia Sahag, representing self; Darrin Bergstad, representing self; Jeanine Gouveia, representing self; Wanda
Lund, representing self; christopher klepacz, representing self; Judy Smith, representing self; Teresa Tere Nunez,
representing self; Susan Whittemore, representing self; Roy Scott Lassell, representing self; Darlene Jung,
representing self; Marie Scillieri, representing self; Anne Rankin, representing self; louise liggett, representing self;

Kathleen Hahn, representing self; Dan Goebel, representing self; Paul Thompson, representing self; Janet Klepacz,
representing self; Randy Leier, representing self; Dana Large, representing self; Karen Sherreil, representing self;
James Ault, representing self; Gisela Aaron, representing self; LW Forster, representing self; Michael Aaron,
representing self; James Pallas, representing self; Lee Chadbourn, representing self; Wendy Jonessee, representing
self; Peggy Pavlich, representing self; Maria Lopez, representing self; Paul Pavlich, representing self; Michael Mote,
representing self; Kim Depow, representing self; John Wallace, representing self; Merl Nielsen, representing self;
Malgosia Cox, representing self; eileen acosta, representing self; Barbara Russell, representing self; Kathryn Farkas,
representing self; Brent Michelson, representing self; Janet Manecke, representing self

Oppose:

Karen McLaughiin, Director of Budget & Research, THE ARIZONA CENTER FOR ECONOMIC PROGRESS; Dianne Post,
representing self; Christine McLachlan-Comer, representing self; Kathleen Dubbs, representing self; Kenneth
Bierman, representing self; Sharon Lee, representing self; Dave Wells, representing self; Susan Edwards,
representing self; Ben Scheel, Opportunity Arizona; Catcher Baden, AZ BOARD OF REGENTS

All Comments:

Karen Chaney, Self: !am a PC in Ld17, and | support this bill.; Gayle Peters, Self: Defining and limiting debt is
critically important. Please vote in favor of SCR1033. Gayle Peters (PCRC Precinct Captain); Leslie White, Self: Vote
YESH - PC in Maricopa County; Patricia Gillenwater, Self: Approve of smart choice; Michael Schultz, Self: balance
the budget; Ana P Sexton, Self: The government CANNOT keep spending money and get into debt our children and
grandchildren will have to somehow pay back. STAY WITHIN YOUR MEANS (budget)!; Charles Mackey, Self: |
support SCR1033. This bill will allow the state to better manage the budget.; Vicki Vaughn, Self: Please vote yes to
constitutionally define debt as specified bonds and obligations of the State of Arizona that are paid with state
Generai Fund monies.; Gary Saxhaug, Self: This bill, subject to voter approval, constitutionally defines debt as
specified bonds and obligations of the State of Arizona that are paid with state General Fund monies.; Joseph.
Myers, Self: Branches of AZ government should live within the budget; refrain to creating new policies to do “end
around run" on abuse of taxpayer dollars; Vickie Parks, Self: YES YES --- limit the Dems overspending spree;-K
Webster, Self: Limiting debt allowance; Joe Fiumara, Self: Voters should have the final say.; Nancy Osgood, Self: As
a PC in LD12 | fully support this bill.; Berta Lockhart, Self: The State is to have the power to contract debts to supply
deficits or failures in revenue or to meet unprovided for expenses.; Karen McLaughlin, THE ARIZONA CENTER FOR
ECONOMIC PROGRESS: This bill would remove several of the tools used by the legislature when the state lost one-
third of its tax revenue due to the Great Recession. It also fails to update the limit which hasn't changed since
1912.; Mary Evelyn Simpson, Self: YavGOP PC ~MUch needed bill; Dale Brewer, Self: ! am a Committeeman PCRC, |
have owned and run my own business. | am also a proud parent, grandparent, great grandparent.; Mary Jamsa,
Self: This bill constitutionally defines debt as specified bonds and obligations of the State of Arizona that are to be
paid with state General funds. | support this bill; Wendy Radimer, Self: | am a PC Co-Captain and | agree with this
Bill to be passed; Paul Johnson, Self: | am a PC Captain and | agree with this Bill that must be passed; Nancy Barrett,
Self: | support this bill - we need to keep spending under control; Joelene Williamson, Self: The debt fimit should
mean something, that is why i support this bill; Susan Taraba, Self: PC; Daniel Spencer, Self: This will give guidance
to spending; Susan Kay, Self: Republican LD3; Wanda Lund, Self: Thank you; Susan Whittemore, Self: | ama
precinct committeeman and represent 175 voters; Roy Scott Lassell, Self: | support. This add logic to the debt
process and makes sense. Not to mention will help to keep the state in check with the budget.; Dan Goebel, Self:
Please vote FOR this Bill.; Karen Sherrell, Self: Clarify what debt means to eliminate current work arounds by
fiscally irresponsible people.; LW Forster, Self: Please support this bill! NO spending beyond means with tricky
maneuvers that avoid the voter and legislative approval. The total amount of contract debts may not exceed .
$350,000. This bill, subject to voter approval, constitutionally defines debt a; Lee Chadbourn, Self: We should
definitely have limit restrictions to our state debt; Maria Lopez, Self: As a Precinct Committeeman, | strongly

support this bill.; Michael Mote, Self: | am in favor of this bill which is subject to voter approval.; John Wallace, Self:

John Wallace Pima PC 171; Dave Wells, Self: We should be modernizing the amount, not tying your hands in an

emergency. More at
https://docs.google.com/document/d/1QHuZdwpFNyO3CWki01YTGoUaQ3wumps0/edit?usp=sharing&ould=1054
84633680222528314&rtpofstrue&sd=itrue; eileen acosta, Self: | support SCR1033; Barbara Russell, Self: This bill
just makes sense to allow state to pay bills... like having overdraft protection on your bank account... just silly not
to have it.; Catcher Baden, AZ BOARD OF REGENTS: Appreciate the intent of the amendment but would like to

work it more

ARIZONA STATE LEGISLATURE
Fifty-sixth Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Justin Wilmeth VICE-CHAIRMAN: _ Michael Carbone
DATE 03/28/23 123 123 /23 123
CONVENED 2 499 m m m m m
RECESSED
RECONVENED
ADJOURNED G43 ih
TE
MEMBERS
aula [ SawpovdL v
Austin J
Carter 4
Gress iv
Heap J
Hendrix Yi
Ortiz gf
Sun v
Carbone, Vice-Chairman Vv
Wilmeth, Chairman V4

V Present --- Absent exc Excused

Attachment iS)

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
Senate: ED DP 4-3-0-0 | 3 Read 16-13-1-0
| pr a
SB 1163: bond or override; contracts; prohibition
S/E: municipal; zoning; housing assessment; report
Sponsor: Senator Kaiser, LD 2
Committee on Commerce

Overview
Creates an at-risk permit relating to grading and earthmoving of property, provides zoning
regulations relating to single-family residential uses, and establishes municipal reporting

requirements relating to housing needs.

History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and promote

the public health, safety, convenience and general welfare and outlines zoning guidelines and
requirements (Title 9, Ch.4, Art. 6.1, A.R.S.).

The governing body of a municipality must adopt by ordinance a citizen review process that

applies to all rezoning and specific plan applications that require a public hearing. The citizen

review process must include at least:

1) notifying adjacent landowners and other potentially affected citizens of the application;

2) informing adjacent landowners and other potentially affected citizens on the substance of the
proposed rezoning; and

3) providing adjacent landowners and other potentially affected citizen an opportunity to express
any issues or concerns regarding the rezoning.

Any zoning ordinances that propose to change property from one zone to another, that imposes
any regulation not previously imposed or that removes any such regulation previously imposed
must be adopted following the procedure prescribed in the citizen review process and in the
manner set for public hearings (A.R.S. § 9-462.03).

Provisions

Housing Needs Assessment

1. Requires, beginning January 1, 2024, and every five years thereafter, a municipality to publish

a housing needs assessment, which at minimum includes:

a) the total population growth and total job growth projected for the subsequent five-year
period; and

b) the total need for additional residential housing units for rent and for sale in the municipality
to meet:
i. any deficiencies in housing the existing population and workforce;
ii. the population growth and jobs growth projections; and
iii. the housing needs across all various income levels. (Sec. 3)

2. Instructs a municipality, beginning January 1, 2025, and every year thereafter, to submit an
annual report to the Department of Housing that accounts for:

(1 Prop 105 (45 votes) C1 Prop 108 (40 votes) [ Emergency (40 votes) (1 Fiscal Note

SB 1163
Initials PRB Page 1 Commerce
10.

11.

12.

13.

a) the total number of proposed residential housing units and the total number of net new
residential housing units submitted to the municipality; and

b) the total number of new residential housing units that are entitled, have been platted, have
been issued a building permit and have received a certificate of occupancy by the

municipality. (Sec. 3)
Outlines additional factors that the submitted report must include. (Sec. 3)

4. Specifies the requirement to publish a housing needs assessment does not require the

municipality to meet or otherwise fulfill the projections stated in the assessment. (Sec. 3)

Excludes, from the assessment and reporting requirement, a municipality that is located on
tribal land or that has a population of less than 30,000. (Sec. 3)

At-Risk Permit

Requires a municipality, at the applicant's request and after receiving certain approvals, to
issue an at-risk permit for grading and earthmoving that relates to the property that is the
subject of the preliminary plat. (Sec. 2)

Specifies the municipality issuing an at-risk permit does not constitute final preliminary plat
approval or final approval of any grading and drainage plans. (sec. 2)

Stipulates any work, services or materials accomplished or acquired by the applicant is done
at the financial risk of the applicant with no financial liability to the municipality for issuing the

at-risk permit. (Sec. 2)

Allows the municipality to require that all grading and earthmoving be done in compliance with
all municipal codes, ordinances and standards and other legal requirements. (Sec. 2)

Stipulates the at-risk permit requirements do not apply to:

a) a municipality with a population of less than thirty thousand persons;

b) a municipality that is located on tribal land;

c) land in an area that is designated as a district of historical significance; or
d) an area that is designated as historic on the national register of historic places. (Sec. 2)

Zoning Regulations

Prevents certain municipalities, on vacant land in any zone that allows single-family residential

uses, from requiring:

a) lot size minimums that are greater than 4,000 square feet in area, however, may limit the
density to 6 primary dwelling units per acre;

b) lot width minimums that are greater than 40 feet;

c) front setbacks that are greater than 10 feet, except for portions of a dwelling that are
occupied by a garage, in which the front setback minimum may not be greater than 18
feet from the back of the sidewalk or lot line if there is no sidewalk;

d) side yard setbacks that are greater than 5 feet;

e) rear setbacks that are greater than 10 feet; or

f) the percentage of a lot that may be occupied by a building or structure to be greater than

the setbacks. (Sec. 1)

Specifies certain municipalities, in any zone that allows residential uses, cannot prohibit the
placement of a new manufactured home that is titled as real property and that is built
according to the U.S. Department of Housing and Urban Development code (Code). (Sec. 1)

Permits a municipality to require single-family or duplex new manufactured housing, built in
accordance with the Code, to be securely fixed to a permanent standard or engineered

SB 1163

initials PRB Page 2 Commerce
foundation at an equivalent level as the requirements applicable to single-family dwellings
within the municipality on which the manufactured housing is proposed to be located. (Sec. 1)

14. Instructs certain municipalities to provide additional residential zones that allow for the
construction or use of duplexes, triplexes, lots that are smaller than 4,000 square feet and
other housing types proposed by applicants. (Sec. 1)

15. Specifies the statutory zoning regulations does not affect the validity or enforceability of private
covenants or other contractual elements among property owners by parties other than the
municipality. (Sec. 1)

46. Excludes, from specified statutory zoning regulations, municipalities that are located on tribal
land, an area designated as a historical significance district or an area designated as historic
on the national register of historic places. (Sec. 1)

Miscellaneous
47. Makes technical and conforming changes. (Sec. 4)

SB 1163
Initials PRB Page 3 Commerce
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Fifty-sixth Legislature Commerce
First Regular Session S.B. 1163

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1163

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:
"Section 1. Section 9-462.01, Arizona Revised Statutes, is amended

to read:
9-462,.01. Zoning regulations: public hearing: definitions

A. Pursuant to this article, the legislative body of any
municipality by ordinance, in order to conserve and promote the public
health, safety and general welfare, may:

1. Regulate the use of buildings, structures and land as between
agriculture, residence, industry, business and other purposes.

2. Reguiate signs and billboards.

3. Regulate the location, height, bulk, number of stories and size
of buildings and structures, the size and use of lots, yards, courts and
other open spaces, the percentage of a lot that may be occupied by a
building or structure, access to incident solar energy and the intensity of
land use.

4, Establish requirements for off-street parking and loading.

5, Establish and maintain building setback lines.

6. Create civic districts around civic centers, public parks, public
buildings or public grounds and establish regulations for the civic
districts.

7. Require as a _ condition of rezoning public dedication of

rights-of-way as streets, alleys, public ways, drainage and public

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House Amendments to S.B. 1163

utilities as are reasonably required by or related to the effect of the
rezoning.

8. Establish floodplain zoning districts and regulations to protect
life and property from the hazards of periodic inundation. Regulations may
include variable lot sizes, special grading or drainage requirements, or
other requirements deemed necessary for the public health, safety or
general welfare.

9. Establish special zoning districts or regulations for certain
lands characterized by adverse topography, adverse soils, subsidence of the
earth, high water table, lack of water or other natural or man-made hazards
to life or property. Regulations may include variable Jot sizes, special
grading or drainage requirements, or other requirements deemed necessary
for the public health, safety or general welfare.

10. Establish districts of historical significance provided that:

(a) The ordinances may require that special permission be obtained
for any development within the district if the legislative body has adopted
a plan for the preservation of districts of historical stonificance that
meets the requirements of subdivision (b) of this paragraph, and the
criteria contained in the ordinance are consistent with the objectives set
forth in the plan.

(b) A plan for the preservation of districts of historical
significance shall identify districts of special historical significance,
state the objectives to be sought concerning the development or
preservation of sites, area and structures within the district, and
formulate a program for public action, including providing public
facilities and regulating private development and demolition necessary to
realize these objectives.

(c) The ordinance establishing districts of historical significance
shall set forth standards necessary to preserve the historical character of
the area so designated.

(d) The ordinances may designate or authorize any committee,

commission, department or person to designate structures or sites of

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House Amendments to S.B. 1163

special historical significance in accordance with criteria contained in
the ordinance, and no designation shall be made except after a public
hearing on notice of the owners of record of the property designated of
special historical significance. The ordinances may require that special
permission be obtained for any development respecting the structures or
sites.

11. Establish age-specific community zoning districts in which
residency is restricted to a head of a household or spouse who must be of a
specific age or older and in which minors are prohibited from living in the
home. Age-specific community zoning districts shall not be overlaid over
property without the permission of all owners of property included as part
of the district unless all of the property in the district has been
developed, advertised and sold or rented under specific age restrictions.
The establishment of age-specific community zoning districts is subject to
all of the public notice requirements and other procedures prescribed by
this article.

12. Establish procedures, methods and standards for the transfer of
development rights within its jurisdiction. Any proposed transfer of
development rights from the sending property or to the receiving property
shall be subject to the notice and hearing requirements of section 9-462.04
and shall be subject to the approval and consent of the property owners of
both the sending and receiving property. Before any transfer of
development rights, a municipality shall adopt an ordinance providing for:

(a) The issuance and recordation of the instruments necessary to
sever development rights from the sending property and to affix development.
rights to the receiving property. These instruments shall be executed by
the affected property owners and lienholders.

(b) The preservation of the character of the sending property and
assurance that the prohibitions against the use and development of the

sending property shall bind the landowner and every successor in interest

to the landowner.
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House Amendments to S.B. 1163

(c) The severance of transferable development rights from the
sending property and the delayed transfer of development rights to a
receiving property.

(d} The purchase, sale, exchange or other conveyance of transferable
development rights before the rights being affixed to a receiving property.

{e) A system for monitoring the severance, ownership, assignment and
transfer of transferable development rights.

(f) The right of a municipality to purchase development rights and
to hold them for resale.

(g) The right of a municipality at its discretion to enter into an
intergovernmental agreement with another municipality or a county for the
transfer of development rights between jurisdictions. The transfer shall
comply with this paragraph, except that if the sending property is located
in an unincorporated area of a county, the approval of the development.
rights to be sent to a municipality shall comply with section 11-817.

B. For the purposes of subsection A of this section, the legislative
body may divide a municipality, or portion of a municipality, into zones of
the number, shape and area it deems best suited to carry out the purpose of
this article and articles 6, 6.2 and 6.3 of this chapter.

C. All zoning regulations shall be uniform for each class or kind of
building or use of land throughout each zone, but the regulations in one
type of zone may differ from those in other types of zones as follows:

1. Within individual zones, there may be uses. permitted on a
conditional basis under which additional requirements must be met,
including requiring site plan review and approval by the planning agency.
The conditional uses are generally characterized by any of the following:

(a) Infrequency of use.

(b) High degree of traffic generation.

(c) Requirement of large land area.

2. Within residential zones, the regulations may permit

modifications to minimum yard lot area and height requirements.

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House Amendments to S.B. 1163

D. ON VACANT LAND IN ANY ZONE THAT ALLOWS SINGLE-FAMILY RESIDENTIAL
USES, A MUNICIPALITY WITH A POPULATION OF MORE THAN THIRTY THOUSAND PERSONS
MAY NOT REQUIRE THE FOLLOWING:

1. LOT SIZE MINIMUMS THAT ARE GREATER THAN FOUR THOUSAND SQUARE FEET
IN AREA. THE MUNICIPALITY MAY LIMIT THE DENSITY TO SIX PRIMARY DWELLING
UNITS PER ACRE.

2. LOT WIDTH MINIMUMS THAT ARE GREATER THAN FORTY FEET.

3. FRONT SETBACKS THAT ARE GREATER THAN TEN FEET, EXCEPT FOR
PORTIONS OF A DWELLING THAT ARE OCCUPIED BY A GARAGE, IN WHICH THE FRONT
SETBACK MINIMUM MAY NOT BE GREATER THAN EIGHTEEN FEET FROM THE BACK OF THE
SIDEWALK OR LOT LINE IF THERE 1S NO SIDEWALK.

4. SIDE YARD SETBACKS THAT ARE GREATER THAN FIVE FEET.

5. REAR SETBACKS THAT ARE GREATER THAN TEN FEET.

6. THE PERCENTAGE OF A LOT THAT MAY BE OCCUPIED BY A BUILDING OR
STRUCTURE TO BE GREATER THAN THE SETBACKS.

E. IN ANY ZONE THAT ALLOWS RESIDENTIAL USES, A MUNICIPALITY WITH A
POPULATION OF MORE THAN THIRTY THOUSAND PERSONS MAY NOT PROHIBIT THE
PLACEMENT OF A NEW MANUFACTURED HOME THAT IS, OR WILL BE AFTER PURCHASE,
TITLED AS REAL PROPERTY AND THAT IS BUILT ACCORDING TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CODE. A MUNICIPALITY MAY
REQUIRE SINGLE-FAMILY OR DUPLEX NEW MANUFACTURED HOUSING THAT IS BUILT
ACCORDING TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CODE TO BE SECURELY FIXED TO A PERMANENT STANDARD OR ENGINEERED FOUNDATION
AT AN EQUIVALENT LEVEL AS THE REQUIREMENTS APPLICABLE TO SINGLE-FAMILY
DWELLINGS WITHIN THE MUNICIPALITY ON WHICH THE MANUFACTURED HOUSING IS
PROPOSED TO BE LOCATED.

F, A MUNICIPALITY WITH A POPULATION OF MORE THAN THIRTY THOUSAND
PERSONS SHALL PROVIDE ADDITIONAL RESIDENTIAL ZONES THAT ALLOW FOR THE
CONSTRUCTION OR USE OF DUPLEXES, TRIPLEXES, LOTS THAT ARE SMALLER THAN FOUR
THOUSAND SQUARE FEET AND OTHER HOUSING TYPES PROPOSED BY APPLICANTS.
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House Amendments to S.B. 1163

By; G. To carry out the purposes of this article and articles 6 and
6.2 of this chapter, the legislative body may adopt overlay zoning
districts and regulations applicable to particular buildings, structures
and land within individual zones. For the purposes of this subsection,
“overlay zoning district" means a special zoning district that includes
regulations that modify regulations in another zoning district with which
the overlay zoning district is combined. Overlay zoning districts and
regulations shail be adopted pursuant to section 9-462.04.

#> H. The legislative body may approve a change of zone conditioned
on a schedule for development of the specific use or uses for which
rezoning is requested. If, at the expiration of this period, the property
has not been improved for the use for which it was conditionally approved,
the legislative body, after notification by certified mail to the owner and
applicant who requested the rezoning, shall schedule a public hearing to
take administrative action to extend, remove or determine compliance with
the schedule for development or take legislative action to cause the
property to revert to its former zoning classification.

f- I. All zoning and rezoning ordinances or regulations adopted
under this article shall be consistent with and conform to the adopted
general plan of the municipality, if any, as adopted under article 6 of
this chapter. In the case of uncertainty in construing or applying the
conformity of any part of a proposed rezoning ordinance to the adopted
general plan of the municipality, the ordinance shall be construed in a
manner that will further the implementation of, and not be contrary to, the
goals, policies and applicable elements of the general plan. A rezoning
ordinance conforms with the land use element of the general plan if it
proposes land uses, densities or intensities within the range of identified
uses, densities and intensities of the land use element of the general
plan.

&: J. A regulation or ordinance under this section may not prevent
or restrict agricultural composting on farmland that is five or more

contiguous acres and that meets the requirements of this subsection. An

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House Amendments to S.B. 1163

agricultural composting operation shall notify in writing the legislative
body of the municipality and the nearest fire department of the location of
the composting operation. If the nearest fire department is located in a
different municipality from the agricultural composting operation, the
agricultural composting operation shall also notify in writing the fire
department of the municipality in which the operation is located.
Agricultural composting is subject to sections 3-112 and 49-141.
Agricultural composting may not be conducted within one thousand three
hundred twenty feet of an existing residential use, unless the operations
are conducted on farmland or land leased in association with farmland. Any
disposal of manure shal] comply with section 49-247. For the purposes of
this subsection: .

1. “Agricultural composting" means the controlled biological
decomposition of organic solid waste under in-vessel anaerobic or aerobic
conditions where all or part of the materials are generated on the farmland
or will be used on the farmland associated with the agricultural composting
operation.

2. “Farmland™ has the same meaning prescribed in section 3-111 and
is subject to regulation under section 49-247.

t> kK. A municipality may not adopt a land use regulation or impose
any condition for issuance of a building or use permit or other approval
that violates section 9-461.16.

t> L. In accordance with article II, sections 1 and 2, Constitution
of Arizona, the legislative body of a municipality shal) consider the
individual property rights and. personal liberties of the residents of the
municipality before adopting any zoning ordinance.

a> M. Before adopting any zoning ordinance or zoning ordinance text
amendment of general applicability, the legislative body of a municipality
shall consider the probable impact of the proposed zoning ordinance or text

amendment on the cost to construct housing for sale or rent.
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kr oN. A municipality may not adopt or enforce a land use regulation
that requires the property on which a nongovernmental primary or secondary
school operates to be larger than one acre.

0. THIS SECTION DOES NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF
PRIVATE COVENANTS OR OTHER CONTRACTUAL ELEMENTS AMONG PROPERTY OWNERS BY
PARTIES OTHER THAN THE MUNICIPALITY.

P. SUBSECTION A, PARAGRAPH 4 AND SUBSECTIONS DBD, E AND F OF THIS
SECTION DO NOT APPLY TO A MUNICIPALITY THAT IS LOCATED ON TRIBAL LAND, AN
AREA THAT IS DESIGNATED AS A DISTRICT OF HISTORICAL SIGNIFICANCE PURSUANT
TO SUBSECTION A, PARAGRAPH 10 OF THIS SECTION OR AN AREA THAT IS DESIGNATED
AS HISTORIC ON THE NATIONAL REGISTER OF HISTORIC PLACES.

tr Q. For the purposes of this section:

1. “Development rights" means the maximum development that would be
allowed on the sending property under any general or specific plan and
local zoning ordinance of a municipality in effect on the date the
municipality adopts an ordinance pursuant to subsection A, paragraph 12 of
this section respecting the permissible use, area, bulk or height of
improvements made to the lot or parcel. Development rights may be
calculated and allocated in accordance with factors including dwelling
units, area, floor area, floor area ratio, height limitations, traffic
generation or any other criteria that will quantify a value for the
development rights in a manner that will carry out the objectives of this
section.

2. “Receiving property” means a Tot or parcel within which’
development rights are increased pursuant to a transfer of development
rights. Receiving property shall be appropriate and suitable for
development and shall be sufficient to accommodate the transferable
development rights of the sending property without substantial adverse

environmental, economic or social impact to the receiving property or to

neighboring property.
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3. "Sending property" means a lot or parcel with = special
characteristics, including farmland, woodland, desert land, mountain land,
fioodplain, natural habitats, recreation or parkland, including golf course
area, or land that has unique aesthetic, architectural or historic value
that a municipality desires to protect from future development.

4. "Transfer of development rights" means the process by which
development rights from a sending property are affixed to one or more
receiving properties.

Sec. 2. Section 9-463.01, Arizona Revised Statutes, is amended to
read:

9-463.01. Authority
A. Pursuant to this article, the legislative body of every

municipality shall. regulate the subdivision of all lands within its
corporate limits.

B. The legislative body of a municipality shall exercise the
authority granted in subsection A of-this section by ordinance prescribing:

1. Procedures to be followed in the preparation, submission, review
and approval or rejection of al} final plats.

2. Standards governing the design of subdivision plats.

3. Minimum requirements and standards for the tnstallation of
subdivision streets, sewer and water utilities and improvements as a
condition of final plat approval.

C. By ordinance, the legislative body of any municipality shall:

1. Require the preparation, submission and approval of a preliminary
plat as a condition precedent to submission of a final plat.

2. Establish the procedures to be followed in the preparation,
submission, review and approval of preliminary plats.

3, Make requirements as to the form and content of preliminary
plats.

4, Either determine that certain lands may not be subdivided, by
reason of adverse topography, periodic inundation, adverse soils,

subsidence of the earth's surface, high water table, lack of water or other

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natural or man-made hazard to life or property, or control] the lot size,
establish special grading and drainage requirements and impose other
regulations deemed reasonable and necessary for the public health, safety
or general welfare on any lands to be subdivided affected by such
characteristics.

5. Require payment of a proper and reasonable fee by the subdivider
based upon the number of lots or parcels on the surface of the land to
defray municipal costs of plat review and site inspection.

6. Require the dedication of public streets, sewer and water utility
easements or rights-of-way, within the proposed subdivision.

7. Require the preparation and submission of acceptable engineering
plans and specifications for the installation of required street, sewer,
electric and water utilities, drainage, flood control, adequacy of water
and improvements as a condition precedent to recordation of an approved
final plat.

8. Require the posting of performance bonds, assurances or such
other security as may be appropriate and necessary to assure. the
installation of required street, sewer, electric and water utilities,
drainage, flood control and improvements meeting established minimum
standards of design and construction.

D. The legislative body of any municipality may require by ordinance
that land areas within a subdivision be reserved for parks, recreational
facilities, school sites and fire stations subject to the following
conditions:

1, The requirement may only be made upon ON preliminary plats filed
at least thirty days after the adoption of a general or specific plan
affecting the land area to be reserved.

2. The required reservations are in accordance with definite
principles and standards adopted by the legislative body.

3. The land area reserved shall be of such a size and shape as to
permit the remainder of the land area of the subdivision within which the

reservation is located to develop in an orderly and efficient manner.

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4. The land area reserved shall be in such multiples of streets and
parcels as to permit an efficient division of the reserved area in the
event that it is not acquired within the prescribed period.

E. The public agency for whose benefit an area has been reserved
Shall have a period of one year after recording the final subdivision plat
to enter into an agreement to acquire such reserved land area. The
purchase price shall be the fair market vatue of the reserved land area at
the time of the filing of the preliminary subdivision plat pius the taxes
against such reserved area from the date of the reservation and any other
costs incurred by the subdivider in the maintenance of such reserved area,
including the interest cost incurred on any loan covering such reserved
area,

F. If the public agency for whose benefit an area has been reserved
does not exercise the reservation agreement set forth in subsection E of
this section within such ome—year ONE-YEAR period or such extended period
as may be mutually agreed upom ON by such public agency and the subdivider,
the reservation of such area shall terminate.

G. The legislative body of every municipality shall comply with this
article and applicable state statutes pertaining to the hearing, approval
or rejection, and recordation of:

1. Final subdivision plats.

2. Plats filed for the purpose of reverting to acreage of land
previously subdivided.

3. Plats filed for the purpose of vacating streets or easements
previously dedicated to the public.

4, Plats filed for the purpose of vacating or redescribing lot or
parcel boundaries previously recorded.

H. Approval of every preliminary and final plat by a legislative
body is conditioned upon ON compliance by the subdivider with:

1. Rules as may be established by the department of transportation
relating to provisions for the safety of entrance upon and departure from

abutting state primary highways.

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2. Rules as may be established by a county flood control district
relating to the construction or prevention of construction of streets in
Tand established as being subject to periodic inundation.

3. Rules as may be established by the department of health services
or a county health department relating to the provision of domestic water
supply and sanitary sewage disposal.

I. If the subdivision is comprised COMPOSED of subdivided lands, as
defined in section 32-2101, and is within an active management area, as
defined in section 45-402, the final plat shal] not be approved unless it
is accompanied by a certificate of assured water supply issued by the
director of water resources, or unless the subdivider has obtained a
written commitment of water service for the subdivision from a city, town
or private water company designated as having an assured water supply by
the director of water resources pursuant to section 45-576 or is exempt
from the requirement pursuant to section 45-576. The legislative body of
the municipality shall note on the face of the final. plat that a
certificate of assured water supply has been submitted with the plat or
that the subdivider has obtained a written commitment of water service for
the proposed subdivision ‘from a city, town or private water company
designated as having an assured water supply, pursuant to section 45-576,
or is exempt from the requirement pursuant to section 45-576.

J. Except as provided in subsections K and P of this section, if the
subdivision is composed of subdivided jands as defined in section 32-2101
outside of an active management area and the director of water resources
has given written notice to the municipality pursuant to section 45-108,
subsection H, the final plat shall not be approved unless one of the
following applies:

1. The director of water resources has determined that there is an
adequate water supply for the subdivision pursuant to section 45-108 and

the subdivider has included the report with the plat.

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2. The subdivider has obtained a written commitment of water service
for the subdivision from a city, town or private water company designated
as having an adequate water supply by the director of water resources
pursuant to section 45-108.

K. The legislative body of a municipality that has received written
notice from the director of water resources pursuant to section 45-108,
subsection H or that has adopted an ordinance pursuant to subsection 0 of
this section may provide by ordinance an exemption from the requirement in
subsection J or 0 of this section for a subdivision that the director of
water resources has determined will have an inadequate water supply because
the water supply will be transported to the subdivision by motor vehicle or
train if all of the following apply:

1. The legislative body determines that there is no feasible
alternative water supply for the subdivision and that the transportation of
water to the subdivision wil] not constitute a significant risk to the
health and safety of the residents of the subdivision.

2. If the water to be transported to the subdivision will be
withdrawn or diverted in the service area of a municipal. provider as
defined in section 45-561, the municipal provider has consented to the
withdrawal or diversion.

3. If the water to be transported is groundwater, the transportation
complies with the provisions governing the transportation of groundwater in
title 45, chapter 2, article 8.

4. The transportation of water to the subdivision meets any
additional conditions imposed by the legislative body.

L. A municipality that adopts the exemption authorized by subsection
K of this section shall give written notice of the adoption of the
exemption, including a certified copy of the ordinance containing the
exemption, to the director of water resources, the director of
environmental quality and the state real estate commissioner. If the
municipality later rescinds the exemption, the municipality shall give

written notice of the rescission to the director of water resources, the

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director of environmental quality and the state real estate
commissioner. A municipality that rescinds an exemption adopted pursuant
to subsection K of this section shal] not readopt the exemption for at
least five years after the rescission becomes effective.

M. If the legislative body of a municipality approves a subdivision
plat pursuant to subsection J, paragraph 1 or 2 or subsection 0 of this
section, the legislative body shall note on the face of the plat that the
director of water resources has reported that the subdivision has an
adequate water supply or that the subdivider has obtained a commitment of
water service for the proposed subdivision from a city, town or private
water company designated as having an adequate water supply pursuant to
section 45-108.

N. If the legislative body of a municipality approves a subdivision
plat pursuant to an exemption authorized by subsection K of this section or
granted by the director of water resources pursuant to section 45-108.02 or
45-108.03:

1. The legislative body shall give written notice of the approval to
the director of water resources and the director of environmental quality.

2. The legislative body shall include on the face of the plat a
statement that the director of water resources has determined that the
water supply for the subdivision is inadequate and a statement describing
the exemption under which the plat was approved, including a statement that
the legislative body or the director of water resources, whichever applies,
has determined that the specific conditions of the exemption were met. If
the director subsequently informs the legislative body that the subdivision
is being served by a water provider that has been designated by the
director as having an adequate water supply pursuant to section 45-108, the

legislative body shal? record in the county recorder‘s office a statement

disclosing that fact.

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O. If a municipality has not been given written notice by the
director of water resources pursuant to section 45-108, subsection H, the
legislative body of the municipality, to protect the public health and
safety, may provide by ordinance that, except as provided in subsections Kk
and P of this section, the final plat of a subdivision located in the
municipality and outside of an active management area will not be approved
by the legislative body unless the director of water resources has
determined that there is an adequate water supply for the subdivision
pursuant to section 45-108 or the subdivider has obtained a written
commitment of water service for the subdivision from a city, town or
private water company designated as having an adequate water supply by the
director of water resources pursuant to section 45-108. Before holding a
public hearing to consider whether to enact an ordinance pursuant to this
subsection, a municipality shall provide written notice of the hearing to
the board of supervisors of the county in which the municipality is
located. A municipality that enacts an ordinance pursuant to this
subsection shall give written notice of the enactment of the ordinance,
including a certified copy of the ordinance, to the director of water
resources, the director of environmental quality, the state real estate
commissioner and the board of supervisors of the county in which the
municipality is located. If a municipality enacts an ordinance pursuant to
this subsection, water providers may be eligible to receive monies in a
water supply development fund, as otherwise provided by law.

P, Subsections J and 0 of this section do not apply to:

1. A proposed subdivision that the director of water resources has
determined will have an inadequate water supply pursuant to section 45-108
if the director grants an exemption for the subdivision pursuant to section
45-108.02 and the exemption has not expired or if the director grants an
exemption pursuant to section 45-108.03.

2. A proposed subdivision that received final plat approval from the
municipality before the requirement for an adequate water supply became

effective in the municipality if the plat has not been materially changed

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House Amendments to S.B. 1163

since it received the final plat approval. If changes were made to the
plat after the plat received the final plat approval, the director of water
resources shall determine whether the changes are material pursuant to the
rules adopted by the director to implement section 45-108. If the
municipality approves a plat pursuant to this paragraph and the director of
water resources has determined that there is an inadequate water supply for
the subdivision pursuant to section 45-108, the municipality shall note
this on the face of the plat.

Q. If the subdivision is composed of subdivided lands as defined in
section 32-2101 outside of an active management area and the municipality
has not received written notice pursuant to section 45-108, subsection H
and has not adopted an ordinance pursuant to subsection 0 of this section:

1. If the director of water resources has determined that there is
an adequate water supply for the subdivision pursuant to section 45-108 or
if the subdivider has obtained a written commitment of water service for
the subdivision from a city, town or private water company designated as
having an adequate water supply by the director of water resources pursuant
to section 45-108, the municipality shall note this on the face of the plat
if the plat is approved.

2, If the director of water resources has determined that there is
an inadequate water supply for the subdivision pursuant to section 45-108,
the municipality shall note this on the face of the plat if the plat is
approved.

R. Every municipality is responsible for the recordation of all
final plats approved by the legislative body and shall receive from the
subdivider and transmit to the county recorder the recordation fee
established by the county recorder.

S. Pursuant to provisions of applicable state statutes, the
legislative body of any municipality may itself prepare or have prepared a
plat for the subdivision of land under municipal ownership.

T. The legislative ‘bodies of cities and towns may regulate by

ordinance land splits within their corporate limits. Authority granted

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House Amendments to S.B. 1163

under this section refers to the determination of division lines, area and
shape of the tracts or parcels and does not include authority to regulate
the terms or condition of the sale or lease nor does it include the
authority to regulate the sale or lease of tracts or parcels that are not
the result of land spiits as defined in section 9-463.

U. For any subdivision that consists of ten or fewer lots, tracts or
parcels, each of which is of a size as prescribed by the legislative body,
the legislative body of each municipality may expedite the processing of or
waive the requirement to prepare, submit and receive approval of a
preliminary plat as a condition precedent to submitting a final plat and
may waive or reduce infrastructure standards or requirements proportional]
to the impact of the subdivision. Requirements for dust-controlled access
and drainage improvements shall not be waived.

y¥. AT THE APPLICANT’S REQUEST, AFTER PRELIMINARY PLAT SUBMITTAL AND

_ AFTER THE APPLICANT RECEIVES ANY REQUIRED APPROVAL FROM THE DEPARTMENT OF.

ENVIRONMENTAL QUALITY, THE MUNICIPALITY SHALL ISSUE AN AT-RISK PERMIT FOR
GRADING AND EARTHMOVING THAT RELATES TO THE PROPERTY THAT IS THE SUBJECT OF
THE PRELIMINARY PLAT. THE MUNICIPALITY ISSUING AN AT-RISK PERMIT DOES NOT
CONSTITUTE FINAL PRELIMINARY PLAT APPROVAL OR FINAL APPROVAL OF ANY GRADING
AND DRAINAGE PLANS. ANY WORK, SERVICES OR MATERIALS ACCOMPLISHED OR
ACQUIRED BY THE APPLICANT OR ITS AGENTS IS DONE AT THE FINANCIAL RISK OF
THE APPLICANT WITH NO FINANCIAL LIABILITY TO THE MUNICIPALITY FOR ISSUING
THE AT-RISK PERMIT.. THE MUNICIPALITY MAY REQUIRE THAT ALL GRADING AND
EARTHMOVING BE DONE IN COMPLIANCE WITH ALL MUNICIPAL CODES, ORDINANCES AND
STANDARDS AND OTHER LEGAL REQUIREMENTS. THIS SUBSECTION DOES NOT APPLY TO
A MUNICIPALITY WITH A POPULATION OF LESS THAN THIRTY THOUSAND PERSONS, A
MUNICIPALITY THAT IS LOCATED ON TRIBAL LAND, LAND IN AN AREA THAT IS
DESIGNATED AS A DISTRICT OF HISTORICAL SIGNIFICANCE PURSUANT TO SECTION
9-462.01, SUBSECTION A, PARAGRAPH 10 OR AN AREA THAT IS DESIGNATED AS
HISTORIC ON THE NATIONAL REGISTER OF HISTORIC PLACES.

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Sec. 3. Title 9, chapter 4, article 6.4, Arizona Revised Statutes,
is amended by adding section 9-469, to read:
9-469. Municipal housing needs assessment; annual report:
applicability
A. BEGINNING JANUARY 1, 2024 AND EVERY FIVE YEARS THEREAFTER, A
MUNICIPALITY SHALL PUBLISH A HOUSING NEEDS ASSESSMENT THAT INCLUDES AT

LEAST THE FOLLOWING:
1. THE TOTAL POPULATION GROWTH PROJECTED FOR THE SUBSEQUENT

FIVE-YEAR PERIOD.
2. THE TOTAL JOB GROWTH PROJECTED FOR THE SUBSEQUENT FIVE-YEAR

PERIOD.

3. THE TOTAL NEED FOR ADDITIONAL RESIDENTIAL HOUSING UNITS FOR RENT
AND FOR SALE IN THE MUNICIPALITY TO MEET:

(a) ANY DEFICIENCIES IN HOUSING THE EXISTING POPULATION.

(b) ANY DEFICIENCIES IN HOUSING THE EXISTING WORKFORCE.

(c) THE POPULATION GROWTH PROJECTIONS,

(d) THE JOBS GROWTH PROJECTIONS.

(e) THE HOUSING NEEDS ACROSS ALL VARIOUS INCOME LEVELS.

B. BEGINNING JANUARY 1, 2025 AND EVERY YEAR THEREAFTER, EACH
MUNICIPALITY SHALL SUBMIT AN ANNUAL REPORT ACCOUNTING FOR THE TOTAL NUMBER
OF PROPOSED RESIDENTIAL HOUSING UNITS SUBMITTED TO THE MUNICIPALITY, THE
TOTAL NUMBER OF NET NEW RESIDENTIAL HOUSING UNITS SUBMITTED TO THE
MUNICIPALITY AND THE TOTAL NUMBER OF NEW RESIDENTIAL HOUSING UNITS THAT ARE
ENTITLED, HAVE BEEN PLATTED, HAVE BEEN ISSUED A BUILDING PERMIT AND HAVE
RECEIVED A CERTIFICATE OF OCCUPANCY BY THE MUNICIPALITY. THE REPORT SHALL
BE SUBMITTED TO THE ARIZONA DEPARTMENT OF HOUSING. THE ANNUAL REPORT SHALL
ALSO INCLUDE THE FOLLOWING:

1. THE NUMBER OF HOUSING DEVELOPMENT APPLICATIONS RECEIVED IN THE
PRIOR YEAR.

2. THE NUMBER OF LOTS AND MULTIFAMILY UNITS INCLUDED IN ALL
DEVELOPMENT APPLICATIONS IN THE PRIOR YEAR.

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House Amendments to S.B. 1163

3. THE NUMBER OF LOTS AND MULTIFAMILY UNITS APPROVED AND DISAPPROVED
OR OTHERWISE NOT APPROVED IN THE PRIOR YEAR.

4. THE STATUS AND PROGRESS IN MEETING THE MUNICIPALITY'S HOUSING
NEEDS.

5. A PLAN THAT SPECIFIES HOW THE MUNICIPALITY INTENDS TO SATISFY THE
IDENTIFIED NEED FOR ADDITIONAL HOUSING UNITS WITHIN THE MUNICIPALITY.

C. THIS SECTION DOES NOT REQUIRE A MUNICIPALITY TO MEET OR OTHERWISE
FULFILL THE PROJECTIONS IN THE HOUSING NEEDS ASSESSMENT REQUIRED BY
SUBSECTION A OF THIS SECTION.

D. THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT IS LOCATED ON
TRIBAL LAND OR A MUNICIPALITY WITH A POPULATION OF LESS THAN THIRTY
THOUSAND PERSONS. |

Sec. 4. Section 11-812, Arizona Revised Statutes, is amended to

read:
11-812. Restriction on regulation: exceptions: aggregate

mining regulation: definitions

A. Wottring—contatred—i Any ordinance authorized by this chapter
shall NOT:
1. Affect existing uses of property or the right to its continued

use or the reasonable repair or alteration of the property for the purpose
for which used at the time the ordinance affecting the property takes
effect.

2. Prevent, restrict or otherwise regulate the use or occupation of
land or improvements for railroad, mining, metallurgical, grazing or
general agricultural purposes, if the tract concerned is five or more
contiguous commercial acres. For the purposes of this paragraph:

(a) “General agricultural purposes" includes agritourism as defined
in section 3-111, but does not include any of the following:

(i) Food establishments THAT ARE under the authority of the
department of health services pursuant to section 36-136, subsection I AND

that are associated with an agritourism business.

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1 (ii) Rodeo events that are open to the general public and that sell
2 tickets for admission. For the purposes of this item, rodeo events do not
3 include generally accepted agricultural practices associated with livestock
4 and equine operations,

5 (iii) The cultivation of cannabis as defined in section 13-3401 or
6 marijuana as defined in section 13-3401 or 36-2801.

7 (b) "Mining" has the same meaning prescribed in section 27-301.

8 3. Prevent, restrict or otherwise regulate the use or occupation of
9 land or improvements for agricultural composting, if the tract is five or
10 more contiguous commercial acres. An agricultural composting operation
11 shall notify in writing the board of supervisors and the nearest fire
12 department of the location of the composting operation. If the nearest
13 fire department is located in a city, town or fire district where the
14 agricultural composting is not located, the agricultural composting
15 operation shall also notify in writing the fire district in which the
16 operation is located. Agricultural composting is subject to sections 3-112
17 and 49-141. For the purposes of this paragraph, “agricultural composting"
18 has the same meaning prescribed in section 9-462.01, subsection @& Jd.

19 4, Prevent, restrict or otherwise regulate the otherwise lawful
20 discharge of a firearm or air gun or use of archery equipment on a private
21 lot or parcel of land that is not open to the public on a commercial or
22 membership basis.

23 B. A nonconforming business use within a district may expand if the
24 expansion does not exceed one hundred per—cent PERCENT of the area of the
25 original business. ;

26 C. For the purposes of subsection A, paragraph 2 of this section,
27 mining does not include aggregate mining operations in an aggregate mining
28 operations zoning district established pursuant to this section. The board
29 of supervisors of any county with a population of more than two million
30° persons shal} designate and establish the boundaries of an aggregate mining
31 operations zoning district on the petition of at least one hundred persons
32 who reside within one-half mile of an existing aggregate mining operation.

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In addition, the board of supervisors of any county may establish, in its
discretion and on the board's initiative, one or more aggregate mining
operations zoning districts. Aggregate mining operations zoning districts
may only be located in areas that are inventoried and mapped as areas of
Known reserves or in areas with existing aggregate mining operations.
Subject to subsections E and F of this section, a county and the state mine
inspector may jointly adopt, as internal administrative regulations,
reasonable aggregate mining operations zoning district standards limited to
permitted uses, procedures for approval of property development plans and
site development standards for dust control, height regulations, setbacks,
days and hours of operation, off-street parking, screening, noise,
vibration and air pollution control, signs, roadway access lanes, arterial
highway “protection and property reclamation for which aggregate mining
operations are not otherwise subject to federal, state or local regulation
or a governmental contractual obligation. Regulations jointly adopted
pursuant to this subsection by the county and the state mine inspector
shall not prohibit the activities included in the definition of mine
pursuant to section 27-301, paragraph 8 or duplicate, conflict with or be
more stringent than applicable federal, state or local laws.

D. The board of supervisors of any county that establishes’ an
aggregate mining operations zoning district shal} appoint an aggregate
mining operations recommendation committee for the district. The committee
consists of not more than seven operators, or representatives of operators,
of active aggregate mining operations in any district within the county and
an equal number of private citizens, who are not operators, who are not
employed by operators and who do not represent operators, residing within
three miles of the boundaries of aggregate mining operattons or a proposed
aggregate mining operation in the district for which the committee is
established. The initial members appointed to the committee shall be
deemed the primary members, and the board of supervisors shall appoint not
more than five alternate members who represent operators and shall appoint

not more than five alternate members who are private citizens. Alternate

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members may serve at meetings of the committee when a primary member is
unable to attend.. An aggregate mining operator may serve on more than one
committee in the same county. The board of supervisors shall determine the
length of terms of members of the committee and shall stagger the initial
appointments so that not all members' terms expire at the same time.
Members of the committee who no longer qualify for membership as provided
by this subsection are subject to removal and replacement by the board of
supervisors. The committee shall elect a member who is an aggregate mining
operator to serve as chairperson for the first year in which the committee
is created. For each year thereafter, the chairperson shall be elected by
the members of the committee with a member who is a private citizen and a
member who is an aggregate mining operator serving as chairperson in
alternate years. The committee is subject to the open meeting requirements
of title 38, chapter 3, article 3.1.

E. Within ninety days after an aggregate mining operations
recommendation committee is established, the committee shal} notify all
existing aggregate mining operators in the district of the application of
this section and title 27, chapter 3, article 6 to the aggregate mining
operation. In addition, the committee shall:

1. By a majority vote of al] members make recommendations to the
board of supervisors for aggregate mining zoning districts and
administrative regulations as provided in this section. The board of
supervisors may adopt or reject the recommendations but may not make any
modifications to the recommendations unless the modification is approved by
a majority of the members of the recommendation committee.

2. Serve as a forum for mediation of disputes between members of the
public and aggregate mining owners or operators. If the committee is
unable to resolve a dispute, the committee shall transmit the matter to the
State mine inspector, with written findings and recommendations, for

further action.

-22-
SF Ons DD Oo B&F WO DH

QO we nr ny Yb OY YH HY YW YW YH DH BP Be Be ew ee me Se oe
uP oD OWN DT FSF WH KF OD OB OH AD BOM BS

House Amendments to S.B. 1163

3. Hear written complaints filed with the state mine inspector
regarding alleged material deviations from approved community notices for
aggregate mining operations and make written recommendations to the state
mine inspector pursuant to section 27-446.

F. Any administrative regulations adopted by a board of supervisors
pursuant to this section are not effective until the regulations are
approved by the state mine inspector. The STATE MINE inspector may
disapprove the administrative regulations adopted by the board of
supervisors only if they duplicate, conflict with or are more stringent
than applicable federal, state or local laws, rules or regulations. If the
STATE MINE inspector disapproves the administrative regulations, the STATE
MINE inspector must provide written reasons for the disapproval. The STATE
MINE inspector shall not make any modification to the administrative
regulations as adopted by the board of supervisors unless the modification
is approved by a majority of the members of the board of supervisors.

G. A person or entity is subject to this chapter if the use or
occupation of land or improvements by the person or entity consists of or
includes changing, remanufacturing or treating human sewage or sludge for
distribution or resale. These activities are not exempt from this chapter
under subsection A, paragraph 2 of this section.

H. A county shall not require as a condition for a permit or for any
approval, or otherwise cause, an owner or possessor of property to waive
the right to continue an existing nonconforming outdoor advertising use or
structure without acquiring the use or structure by purchase or
condemnation and paying just compensation unless the county, at its option,
allows the use or structure to be relocated to a comparable site in the
county with the same or a similar zoning classification, or to another site
in the county acceptable to both the county and the owner of the use or
structure, and the use or structure is relocated to the other site. The
county shall pay for relocating the outdoor advertising use or structure
including the cost of removing and constructing the new use or structure

that is at least the same size and height. This subsection does not apply

-23-

HS ON DO F&F WD Hw

mp
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12

House Amendments to S.B. 1163

to county rezoning of property at the request of the property owner to a
more intensive zoning district.

I. For the purposes of this section:

1. "Aggregate" has the same meaning prescribed in section 27-441.

2. “Aggregate mining" has the same meaning prescribed in section
27-441,

3. “Aggregate mining operation" means property that is owned,
operated or managed by the same person for aggregate mining.

4, "Operators" means persons who are actively engaged in aggregate
mining operations within the zoning district or proposed zoning district
and who have given notice to the state mine inspector pursuant to section
277303 <"

13 Amend title to conform

LAURIN HENDRIX

LI63HENDRIX. docx

(03/24/2023

01:48 PM

Ge

LAT

~24-

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. $B 1163

DATE March 28, 2023 MOTION: J yp A [Se

PASS AYE NAY PRESENT | ABSENT
Aguilar v
Austin J
Carter v4 J
Gress J vi
Heap J
Hendrix J
Ortiz v
Sun /
Carbone, Vice-Chairman / ;
Wilmeth, Chairman J
(a, Oo | 0

yl LULan | Wo dan.
wmogt J) ef ——— —P /OMMITTEE SECRETARY

A pie WILMETH, Chairman
HAEL CARBONE, Vice-Chairman
ATTACHMENT b

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature

First Regular Session

Senate: TAT DP 4-3-0-0 | 3 Read 16-13-1-0

Ba cH ESARE NE EPS TE ET Tl

SB 1106: social media platforms; standards; notification
Sponsor: Senator Rogers, LD 7
Committee on Commerce

Overview
Establishes standards for social media platforms relating to deplatforming candidates, user

censorship, algorithm categorization and notification requirements.

History
A social media platform is an organization that provides a service for public users to disseminate

speech, expression, information or other content to other users or the public and includes both
the organization and any of its officers, agents, employees, contractors or any other person
employed by or acting on behalf of the social media platform, as well subcontractors or entities
used to conduct fact-checking or any other activities relating to content modulation.

Provisions
Social Media Platforms (Sec. 1)

1. Establishes laws governing social media platforms (Platforms).

2. Defines social media platform as any information service, system, internet search engine or

access software provider that meets all of the following:
a) provides or enables computer access by multiple users to a computer server, including an

internet platform or social media site;

b) operates as a sole proprietorship, partnership, limited liability company, corporation,
association or other legal entity;

c) does business in Arizona; and

d) has either annua! gross revenues of more than $100,000,000, as adjusted in January of
each odd-numbered year to reflect any increase in the consumer price index, or at least
100,000,000 monthly individual platform participants globally.

Candidates

3. Prohibits a Platform from wilfully deplatforming a candidate from the date of the candidate's
qualification to the date of the election or cessation of candidacy.

4. Requires a social media platform to provide a method:
a) by which a user can be identified as a candidate; and
b) that provides the social media platform with sufficient information to confirm the

candidate's qualification.

5. Stipulates the Secretary of State may, upon finding that a Platform has violated the
deplatforming prohibition, impose a civil penalty of:
a) $250,000 per day for deplatforming a candidate for statewide office; and

SB 1106
Initials PRB/HG Page 1 Commerce

Attachment 7
10.
V1.

12.

13.

14.

15.

16.

re

18.

19.

b) $25,000 per day for deplatforming a candidate for any other office.

Requires a platform to inform the candidate, when free advertising is wilfully provided, of the
in-kind consideration and specifies what is not considered as free advertising.

Censorship Standards
Mandates the Platform to publish the standards used for determining how it will censor,
deplatform and shadow ban the Platform's users.

Requires the Platform's censorship, deplatforming and shadow banning standards to be
applied in a consistent manner among the Platform's users.

Instructs the Platform, before the implementation of changes fo the rules, terms and
agreements, to inform each user about any such changes.

Prohibits the platform from making changes more than once every 30 days.

Prohibits the Platform from censoring or shadow banning a user's content or material or
deplatforming a user:

a) without delivering a specified notification to the user; or

b) in a manner that violates censorship standards.

Instructs the Platform to:
a) provide a mechanism that allows a user to request the number of other Platform

participants who were provided or shown the user's content or posts;
b) provide a user with the number of other Platform participants who were provided or shown

the user's content or posts;

c) categorize algorithms used for postprioritization and shadow banning; and

d) permit a user to opt out of postprioiritization and shadow banning algorithm categories to
allow sequential or chronological posts and content.

Requires the Platform to annually provide notice on algorithms used for postprioritization and
shadow banning and reoffer the opt-out opportunity.

Prohibits a Platform from applying or using postprioritization or shadow banning algorithms
for content posted by or about a user who is a candidate, during the user's candidacy.

Asserts postprioritization of certain content from or about a candidate based on payments to
the Platform by the candidate or a third party is not a violation of censorship standards.

Requires a social media platform to provide a user with a method:
a) by which a user can be identified as a candidate; and
b) that provides the social media platform with sufficient information to confirm the user's

qualification of candidacy.
Requires the Platform to permit a user, who has been deplatformed, to access or retrieve all
of their information, content, material and data for at least 60 days after the required
notification of deplatforming has been received.

Prevents a Platform from censoring, deplatforming or shadow banning a journalistic enterprise
based on the content of the journalistic enterprise's publication or broadcast, unless the

content is obscene.

Asserts postprioritization of certain journalistic enterprise content based on payments to the
Platform by the journalistic enterprise is not a violation of censorship standards.

Gi Prop 105 (45 votes) 1 Prop 108 (40 votes) 0 Emergency (40 votes) {Fiscal Note

SB 1106

initials PRB/HG Page 2 Commerce
20.

21.

22,

23.

24,

25.

26.

af.

Stipulates that a Platform is not required to notify a user if the censored content or material is
obscene.

Asserts a violation of the censorship standards constitutes an unlawful practice under
consumer fraud statutes and is in addition to all other causes of action, remedies and penalties
available to this state.

Permits the Attorney General to investigate and take appropriate action against anyone who
commits a violation in accordance with consumer fraud statutes.

Allows a user who is harmed by a Platform's violation of certain censorship standards to bring

a private cause of action for the violation for which the court may award:

a) amaximum of $100,000 in statutory damages for each proven claim;

b) actual damages;

c) punitive damages, if aggravating factors are present;

d) other forms of equitable relief, including injunctive relief; and

e) costs and reasonable attorney fees, if the user was deplatformed in violation of
censorship, deplatforming or shadow banning standards.

Stipulates that the failure of a Platform's compliance with the standards regarding allowing
users to opt out of postprioritization and shadow banning algorithms will be treated as a
separate violation, act or practice.

Specifies a Platform that censors, shadow bans, deplatforms or applies postprioritization
algorithms to candidates and users in Arizona is conclusively presumed to be engaged in
substantial and not isolated activities within Arizona and operating, conducting, engaging in
or carrying on a business and doing business in Arizona, and the social media platform is
therefore subject to the jurisdiction of the courts of Arizona.

Excludes, from the Platform censorship standards, a publisher, broadcaster, printer or other
person engaged in disseminating information or reproducing printed or pictorial matter if the
information or matter has been disseminated or reproduced on behalf of others without
knowledge of violation.

Defines pertinent terms.

SB 1106

Initials PRB/HG Page 3 Commerce

1
2
3
4
5

6

7

8

9
10
li
12
13
14
15
16
i7
18
19

20
21

Fifty-sixth Legislature Commerce
First Regular Session S.B. 1106

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1106

(Reference to Senate engrossed bill)

Page 1, line 15, strike "A SOCIAL MEDIA PLATFORM" insert “AN EMPLOYEE OF THIS
STATE IN THE EMPLOYEE'S OFFICIAL CAPACITY"
Page 2, strike lines 5 through 12
Renumber to conform
Line 14, after "MEANS" strike remainder of line
Line 15, strike "OR ACCESS SOFTWARE PROVIDER" insert ". PUBLIC OR SEMIPUBLIC
INTERNET-BASED SERVICE OR APPLICATION"
strike lines 16 and 17

Renumber to conform
Line 21, after "$100,000,000" insert “DIRECTLY FROM THE OPERATION OF THE

SOCIAL MEDIA PLATFORM AND NOT FROM THE SELLING OF GOODS AND SERVICES"
Line 23, strike "OR" insert “AND"

Between lines 24 and 25, insert:
"(y) PRIMARILY FUNCTIONS TO CONNECT USERS IN ORDER TO ALLOW USERS TO

INTERACT SOCIALLY WITH EACH OTHER WITHIN THE PLATFORM. EMAIL OR DIRECT
MESSAGING SERVICES DOES NOT MEET THIS CRITERION ON THE BASIS OF THAT
FUNCTION ALONE.

(vi) ALLOWS USERS TO CREATE A PUBLIC OR SEMIPUBLIC PROFILE FOR THE
PURPOSES OF LOGGING IN TO AND USING THE PLATFORM, POPULATE A PUBLIC LIST OF
OTHER USERS WITH WHOM AN INDIVIDUAL SHARES A SOCIAL CONNECTION WITHIN THE
PLATFORM, AND POST CONTENT THAT IS VIEWABLE BY OTHER USERS."

opted a # of Ve

Attachment. O_

House Amendments to S.B. 1106

1 Page 2, line 25, after "INCLUDE" insert “A BROADBAND INTERNET ACCESS SERVICE
2 PROVIDER OR"; after "APPLICATION" insert ", CLOUD SERVICES PROVIDER"

3 Line 26, after “ENTERTAINMENT” insert “, E-COMMERCE"; strike "OTHER"

4 Between lines 31 and 32, insert:

z "(c) DOES NOT INCLUDE CLOUD STORAGE, SHARED DOCUMENT COLLABORATION
6 AND OTHER CLOUD COMPUTING SERVICES.”

7 Line 37, strike "; free advertising”

8 Line 38, strike "NOT WILFULLY"

9 Line 41, after the second "CANDIDATE" insert "AS ALLOWED UNDER THE

10 COMMUNICATIONS DECENCY ACT OF 1996 (P.L. 104-104; 110 STAT. 133; 47 UNITED
11 STATES CODE 230)"; strike "A SOCIAL" .
12 Strike lines 42 through 44

13 Page 3, strike lines 1 and 2

14 Strike lines 9 through 14

15 Line 15, after the first semicolon strike remainder of line
16 Strike line 16 and 17

17 Line 18, strike "A.”

18 Line 19, strike "OR HAS USED"

19 Line 20, strike "CENSOR,"; strike “AND SHADOW BAN"

20 Strike lines 22 through 44

21 Strike pages 4 and 5, insert:

22 "18-704. Penalties; exceptions

23 A. AN EMPLOYEE WHO VIOLATES THIS CHAPTER SHALL BE SUBJECT TO REMOVAL
24 FROM STATE SERVICE, REDUCTION IN GRADE, DEBARMENT FROM STATE EMPLOYMENT FOR
25 A PERIOD NOT TO EXCEED FIVE YEARS, SUSPENSION, REPRIMAND OR A CIVIL PENALTY
26 NOT TO EXCEED $1,000.

27 B. THIS CHAPTER DOES NOT PROHIBIT AN EMPLOYEE FROM ENGAGING IN
28 LAWFUL ACTIONS WITHIN THE OFFICIAL AUTHORITY OF THE EMPLOYEE FOR THE
29 PURPOSE OF EITHER:
HS 7 F&F WY MH FH

House Amendments to S.B. 1106

1. EXERCISING LEGITIMATE LAW ENFORCEMENT FUNCTIONS DIRECTLY RELATED
TO ACTIVITIES TO COMBAT CHILD PORNOGRAPHY, HUMAN TRAFFICKING OR THE ILLEGAL
TRANSPORTING OF OR TRANSACTING IN CONTROLLED SUBSTANCES.
2. SAFEGUARDING OR PREVENTING THE UNLAWFUL DISSEMINATION OF PROPERLY
CLASSIFIED STATE SECURITY INFORMATION."

Amend title to conform

JUSTIN WILMETH

L1O6WILMETH2. docx
03/27/2023

10:55 AM

H: PRB/1s

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1106

DATE March 28, 2023 MOTION: D f A

PASS AYE NAY PRESENT | ABSENT

Aguilar A

Austin J

Carter se

Gress v

Heap f

Hendrix v

Ortiz Vv

Sun "4

Carbone, Vice-Chairman JV

Wilmeth, Chairman v4

6 1|4 | oO ©

APPROVED: 7 COMMITTEE SECRETARY

<b
weer WILMETH, Chairman
HAEL CARBONE, Vice-Chairman

ATTACHMENT, |

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session
Senate: JUD DPA 6-0-1-0 | 38° Read 30-0-0-0

$B 1161: probation; work time credits; reporting
S/E: affordable housing; development standards; report
Sponsor: Senator Kaiser, LD 2
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1161

Overview
Requires municipalities to allow by right the construction of low-income multifamily residential

rental property and establishes municipal reporting requirements relating to housing needs.

History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and promote

the public health, safety, convenience and general welfare and outlines zoning guidelines and

requirements (Title 9, Ch.4, Art. 6.1, A.R.S.). The governing body of a municipality must adopt by

ordinance a citizen review process that applies to all rezoning and specific plan applications that

require a public hearing. The citizen review process must include at least:

1) notifying adjacent landowners and other potentially affected citizens of the application;

‘2) ‘informing adjacent landowners and other potentially affected citizens on the substance of the
proposed rezoning; and

3) providing adjacent landowners and other potentially affected citizen an opportunity to express
any issues or concerns regarding the rezoning.

Any zoning ordinances that propose to change property from one zone to another, that imposes
any regulation not previously imposed or that removes any such regulation previously imposed
must be adopted following the procedure prescribed in the citizen review process and in the
manner set for public hearings (A.R.S. § 9-462.03).

A low-income multifamily residential rental property is a multifamily residential property to which:

1) The owner received an allocation of federal income tax credits through the low-income
housing tax credit program;

2) The property remains both income and rent restricted consistent with the low-income housing
tax credit program and the provisions of the declaration of affirmative land use restrictive
covenants agreement recorded on the property. The requirement of this subdivision is met if
an affirmative land use restrictive covenants agreement is not yet recorded on the property
but the property is otherwise subject to both income and rent restrictions under the low-income
housing tax credit program; and

3) A federal, state or tribal court has not entered a judgment or order based on a finding that an
act or omission of an owner or operator of the property constitutes a breach or violation of

either:
a) The declaration of affirmative land use restrictive covenants agreement recorded on the

property.

(1 Prop 105 (45 votes) (J Prop 108 (40 votes) © Emergency (40 votes) 11 Fiscal Note

SB 1161
Initials PRB Page 1 Commerce

lO

Aitachment '“.
b) Restrictions under the low-income housing tax credit program imposed on the property
but not contained within an affirmative land use restrictive covenants agreement.
c) The restrictions apply to all units on the property except employee units.

Provisions

Housing Needs Assessment

. Requires, beginning January 1, 2024, and every five years thereafter, a municipality to publish
a housing needs assessment, which at minimum includes:
a) the total population growth and total job growth projected for the subsequent five-year
period; and
b) the total need for additional residential housing units for rent and for sale in the municipality
to meet:
i. any deficiencies in housing the existing population and workforce;
ii. the population growth and jobs growth projections; and
iii. the housing needs across all various income levels. (Sec. 2)

. Instructs a municipality, beginning January 1, 2025, and every year thereafter, to submit an

annual report to the Department of Housing that accounts for:

a) the total number of proposed residential housing units and the total number of net new
residential housing units submitted to the municipality; and

b) the total number of new residential housing units that are entitled, have been platted, have
been issued a building permit and have received a certificate of occupancy by the
municipality. (Sec. 2)

. Outlines additional factors that the submitted report must include. (Sec. 2)

4. Specifies the requirement to publish a housing needs assessment does not require the

municipality to meet or otherwise fulfill the projections stated in the assessment. (Sec. 2)

. Excludes, from the assessment and reporting requirement, a municipality that is located on
tribal land or that has a population of less than 30,000. (Sec. 2)

Miscellaneous

. Requires, by January 1, 2024, certain municipalities to allow by right the construction of low-
income multifamily residential rental property, in any existing commercial, mixed-use or
multifamily residentially zoned district within one-half mile of a light rail or streetcar stop, with
specified development standards. (Sec. 1)

. Prohibits a municipality from requiring a general plan amendment, use permit or review by a
‘board or commission for construction of low-income multifamily residential rental property.

(Sec. 1)

. Excludes, from the requirement to allow the construction of low-income multifamily residential
rental property, any:

a) land in the immediate vicinity of a municipal airport;

b) territory in the vicinity of a military airport or ancillary military facility; or

c) area where an existing mobile home park may be displaced. (Sec. 1)

. Asserts every political subdivision of Arizona must give preference to state residents for any
available low-income housing assistance payments or tenant-based assistance pursuant to

the federal Housing Act of 1937. (Sec. 3)

SB 1161

Initials PRB Page 2 Commerce
Oo ODN DO Se WO MH

LE a > ec 2
Oo Mm FM. Oo © ODO NN DD OH Bw WH /H FF CO

Fifty-sixth Legislature Commerce
First Regular Session S.B. 1161

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1161

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes,

is amended by adding section 9-461.18, to read:

9-461.18. Transit-oriented development; standards;

applicability

A. NOTWITHSTANDING ANY OTHER LAW, ORDINANCE OR CHARTER PROVISION, ON
OR BEFORE JANUARY 1, 2024, A MUNICIPALITY WITH A POPULATION GREATER THAN
FIVE HUNDRED TWENTY-FIVE THOUSAND PERSONS SHALi ALLOW BY RIGHT, IN ANY
EXISTING COMMERCIAL, MIXED-USE OR MULTIFAMILY RESIDENTIALLY ZONED DISTRICT
WITHIN ONE-HALF MILE OF A LIGHT RAIL OR STREETCAR STOP, THE CONSTRUCTION OF
LOW-INCOME MULTIFAMILY RESIDENTIAL RENTAL PROPERTY AS DEFINED IN SECTION
42-13601 WITH THE FOLLOWING DEVELOPMENT STANDARDS:

1. THE MAXIMUM HEIGHT LIMIT MAY NOT BE LESS THAN EIGHTY FEET.

2, THE DENSITY LIMIT MUST BE AT LEAST THE GREATEST ALLOWED DENSITY
FOR PREVIOUSLY APPROVED MIXED USE OR RESIDENTIAL USE IN THE MUNICIPALITY.

B. THE MUNICIPALITY MAY NOT REQUIRE A GENERAL PLAN AMENDMENT, USE
PERMIT OR REVIEW BY A BOARD OR COMMISSION FOR CONSTRUCTION OF HOUSING
PURSUANT TO THIS SECTION. |

C. THIS SECTION DOES NOT APPLY TO ANY LAND IN THE IMMEDIATE VICINITY
OF A MUNICIPAL AIRPORT, TO ANY TERRITORY IN THE VICINITY OF A MILITARY
AIRPORT OR ANCILLARY MILITARY FACILITY AS DEFINED IN SECTION 28-8461 OR TO
ANY AREA WHERE AN EXISTING MOBILE HOME PARK AS DEFINED IN SECTION 33-1409

MAY BE DISPLACED.

Attachment {f _
“Ado vo re

oe Oo SY DD TO F&F DO DO &

CO WC M RP PM KR AR M PM MT NP PF wR Re

House Amendments to S.8. 1161

Sec. 2. Title 9, chapter 4, article 6.4, Arizona Revised Statutes,

is amended by adding section 9-469, to read:

9-469. Municipal housing needs assessment: annual report:

applicability
A. BEGINNING JANUARY 1, 2024 AND EVERY FIVE YEARS THEREAFTER, A
MUNICIPALITY SHALL PUBLISH A HOUSING NEEDS ASSESSMENT THAT INCLUDES AT

LEAST THE FOLLOWING:
1. THE TOTAL POPULATION GROWTH PROJECTED FOR THE SUBSEQUENT

FIVE-YEAR PERIOD.
2. THE TOTAL JOB GROWTH PROJECTED FOR THE SUBSEQUENT FIVE-YEAR

PERIOD,

3. THE TOTAL NEED FOR ADDITIONAL RESIDENTIAL HOUSING UNITS FOR RENT
AND FOR SALE IN THE MUNICIPALITY TO MEET:

(a) ANY DEFICIENCIES IN HOUSING THE EXISTING POPULATION.

(b) ANY DEFICIENCIES IN HOUSING THE EXISTING WORKFORCE.

(c) THE POPULATION GROWTH PROJECTIONS.

(d) THE JOBS GROWTH PROJECTIONS.

(e) THE HOUSING NEEDS ACROSS ALL VARIOUS INCOME LEVELS.

B. BEGINNING JANUARY 1, 2025 AND EVERY YEAR THEREAFTER, EACH
MUNICIPALITY SHALL SUBMIT AN ANNUAL REPORT ACCOUNTING FOR THE TOTAL NUMBER
OF PROPOSED RESIDENTIAL HOUSING UNITS SUBMITTED TO THE MUNICIPALITY, THE
TOTAL NUMBER OF NET NEW RESIDENTIAL HOUSING UNITS SUBMITTED TO THE
MUNICIPALITY AND THE TOTAL NUMBER OF NEW RESIDENTIAL HOUSING UNITS THAT ARE
ENTITLED, HAVE BEEN PLATTED, HAVE BEEN ISSUED A BUILDING PERMIT AND HAVE
RECEIVED A CERTIFICATE OF OCCUPANCY BY THE MUNICIPALITY. THE REPORT SHALL
BE SUBMITTED TO THE ARIZONA DEPARTMENT OF HOUSING. THE ANNUAL REPORT SHALL
ALSO INCLUDE THE FOLLOWING:

1. THE NUMBER OF HOUSING DEVELOPMENT APPLICATIONS RECEIVED IN THE
PRIOR YEAR.

2. THE NUMBER OF LOTS AND MULTIFAMILY UNITS INCLUDED IN ALL
DEVELOPMENT APPLICATIONS IN THE PRIOR YEAR.
mo Oo ™M DO Bw WwW DH FF

DON MO a ak a ep
oO nr KF O86 ODN DW MO BP WH DHS FE O

House

Amend

11610R
03/24/
01:44

Cz LAF

Amendments to §.B. 1161

3. THE NUMBER OF LOTS AND MULTIFAMILY UNITS APPROVED AND DISAPPROVED
OR OTHERWISE NOT APPROVED IN THE PRIOR YEAR.

4, THE TOTAL AMOUNT OF VACANT AREA ZONED FOR SINGLE-FAMILY,
COMMERCIAL AND MULTIFAMILY RESIDENTIAL AS A PERCENTAGE OF THE
MUNICIPALITY'S TOTAL AREA AT THE TIME OF THE HOUSING NEEDS ASSESSMENT.

5. JHE STATUS AND PROGRESS IN MEETING THE MUNICIPALITY'S HOUSING
NEEDS.

6. A PLAN THAT SPECIFIES HOW THE MUNICIPALITY INTENDS TO SATISFY THE
IDENTIFIED NEED FOR ADDITIONAL HOUSING UNITS WITHIN THE MUNICIPALITY.

C. THIS SECTION DOES NOT REQUIRE A MUNICIPALITY TO MEET OR OTHERWISE
FULFILL THE PROJECTIONS IN THE HOUSING NEEDS ASSESSMENT REQUIRED BY
SUBSECTION A OF THIS SECTION.

D. THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT IS LOCATED ON
TRIBAL LAND OR A MUNICIPALITY WITH A POPULATION OF LESS THAN THIRTY
THOUSAND PERSONS,

Sec. 3. Title 36, chapter 12, article 1, Arizona Revised Statutes,
is amended by adding section 36-1426, to read:

36-1426. Housing assistance: state residents: preference

EVERY POLITICAL SUBDIVISION OF THIS STATE SHALL GIVE PREFERENCE TO
RESIDENTS OF THIS STATE FOR ANY AVAILABLE LOW-INCOME HOUSING ASSISTANCE
PAYMENTS OR TENANT-BASED ASSISTANCE PURSUANT TO THE UNITED STATES HOUSING
ACT OF 1937 (42 UNITED STATES CODE SECTION 1437f)."

title to conform
ANALISE ORTIZ

TIZ. docx
2023
PM

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. SB 1164
DATE March 28, 2023 | MOTION: i y E la | PE

PASS

NAY PRESENT ; ABSENT

Aguilar

Austin
Carter

Gress

Heap

Hendrix
Ortiz

Sun

7
4 O &

<a TEE. SECRETARY

ypc WILMETH, Chairman
yr AAEL CARBONE, Vice-Chairman

Carbone, Vice-Chairman
Wilmeth, Chairman

eis I IANS < <|< | 2

ATTACHMENT. [oh

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session
Senate: TAT DPA 4-3-0-0 | 3 Read 19-10-1-0

SB 1198: restored salvage vehicle titles; inspections
S/E: condominium; termination; notice; relocation fund
Sponsor: Senator Kaiser, LD 2
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1198

Overview
Changes the fund for which a unit owner receives monies for relocation costs from the

association's reserve fund and operating account to the Condominium Relocation Fund.

History
A condominium is a real estate development, portions of which are designated for separate

ownership and the remainder of which is designated for common ownership solely by the owners
of the separate portions (A.R.S. § 33-1202).

Except in the case of taking all units by eminent domain, a condominium may be terminated only
by an agreement of at least 80% of the unit owners in the association. If any real estate in a
condominium is to be sold following termination, the termination agreement must establish the
minimum terms of sale and the title to all real estate vests in the association. Proceeds of the sale
must be distributed to the unit owners and lienholders in proportion to the respective interest of
the unit owners. Upon termination of a condominium, the interests of unit owners are the fair
market values of their units, limited common elements, common element interests immediately
before the termination, their pro rata share of any monies in the association's reserve fund and
the operating account and 5% of the total amount of relocation costs for owner-occupied units.
An independent appraiser selected by the association must determine the fair market value, but .
any unit owner may obtain a second independent appraisal at their own expense. If the unit
owners’ appraisal differs from the associations by five percent or less, the higher appraisal is final.
If the appraisals differ by more than 5% the unit owner must submit to arbitration at the
association's expense and the arbitration amount is the final sale amount (A.R.S. § 33-1228).

Provisions
1. Clarifies the pro rate share of any monies in the association's reserve fund and the operating

account immediately before the termination as a respective interest of a unit owner. (Sec. 1)

2. Stipulates a unit owner, only for a unit that is owner's primary residence, receives an additional
5% of that total amount for relocation costs along with all closing costs of the sales transaction
from the Condominium Relocation Fund. (Sec. 1)

3. Specifies the closing costs includes:
a) the costs for title insurance, if requested; and
b) compensation for the difference the interest rate for any amount owed on a mortgage,
deed of trust or other similar encumbrance on the unit at the time of termination and the

£] Prop 105 (45 votes) 0 Prop 108 (40 votes} © Emergency (40 votes) O Fiscal Note

SB 1198
Initials PRB Page 1 Commerce

Attachment | 5

interest rate for a similar mortgage or deed of trust or other similar financing method on
that same amount at the time of termination. (Sec. 1)

Specifies the fair market value of the unit is determined from the higher of:
a) the highest selling price paid for comparable unit that was sold in the condominium in the

previous five years; and
b) the fair market value as determined by an independent appraisal of the unit that is made
using similar features in condominiums within a five-mile radius of the condominium. (Sec.

1)
Removes language relating to the association's independent appraiser determines the fair
market value. (Sec. 1)
Stipules the unit owner may submit the issues to arbitration if the unit owner and the buyer do

not agree on the fair market value of the unit and, if applicable, the relocation costs and other
additional amounts due an owner of a unit that is the unit owner's primary residence. (Sec. 1)

7. Specifies the Condominium Relocation Fund pays for the costs of the arbitration. (Sec. 1)
8. Requires each condominium unit be assessed an annual amount determined by the

10.

11.
12.
13.
14.
15.
16.
17.

18.

Department of Housing for deposit into the Condominium Relocation Fund. (Sec. 1)

Requires the association to mail or deliver to the purchaser a statement notifying the
purchaser that the condominium may be terminated by a vote of 80% or more of the owners
of the units in the condominium and if a sufficient number of units are acquired by a potential
buyer for the entire property, the unit owners may be required to sell their units. (Sec. 2)

Requires the board of directors to provide an annual notice to unit owners that includes:

a) a statement that the condominium may be terminated by a vote of 80% or more of the
owners of the units in the condominium and if a sufficient number of units are acquired by
a potential buyer for the entire property, the unit owners may be required to sell their units;

and
b) a statement that provides the total number of units in the condominium, the number of

units owned by each unit owner and the name of each unit owner. (Sec. 3)
Establishes the Condominium Relocation Fund consisting of monies collected by an annual
assessment. (Sec. 4)
Instructs the Department of Housing to administer the Condominium Relocation Fund. (Sec.
4)
Permits the Department of Housing to use up to 5% of the Condominium Relocation Fund
monies for administration costs. (Sec. 4)

Requires the State Treasurer to invest and divest Condominium Relocation Fund monies and
credit earned monies to the fund. (Sec. 4)

Stipulates unexpended and unencumbered monies remain in the fund at the end of the fiscal
year. (Sec. 4)

Requires each unit owner to pay an annual assessment, in an amount determined by the
Department of Housing, for each unit the person owns. (Sec. 4)

Directs the county treasurer to collect the assessment in the same manner as real property
taxes. (Sec. 4)

Requires the county treasurer to separately list the assessment on the tax roll and transfer
the revenues collected to the State Treasurer for deposit into the Condominium Relocation

Fund. (Sec. 4)
SB 1198

Initials PRB Page 2 Commerce
19. Specifies monies in the Condominium Relocation Fund must be used to pay the following as
a portion of the amount payable to a unit owner for the unit owner's interest in a condominium
that is being terminated:

a) for a unit that is the primary residence of the unit owner, all of the following:

i.
ii.

the additional 5% of the total amount of the pro rata share of monies as relocation
costs.

all closing costs of the sales transaction, including costs for title insurance if requested
by the unit owner.

compensation for the difference in the interest rate for any amount owed on a
mortgage, deed of trust or other similar encumbrance on the unit at the time of
termination and the interest rate for a similar mortgage or deed of trust or other similar
financing method on that same amount at the time of termination.

b) for ali unit owners, the costs of the arbitration.

20. Contains a iegislative intent clause. (Sec. 5)

21.Applies the changes to the condominium termination statutes retroactively to all
condominiums whether established before or after the effective date of this Act. (Sec. 6)

Initials PRB

SB 1198
Page 3 Commerce

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Fifty-sixth Legislature Commerce
First Regular Session S.B. 1198

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1198

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

“Saction 1. Section 33-1228, Arizona Revised Statutes, is amended to

read:

33-1228. Termination of condominium

A. Except as provided in subsection B of this section, a condominium
may be terminated only by agreement of unit owners of units to which at
least eighty percent of the votes in the association are allocated, or any.
larger percentage the declaration specifies, except:

1. In the case of a taking of all the units by eminent domain.

2, If the declaration specifies a smaller percentage, but only if
all of the units in the condominium are restricted exclusively to
nonresidential uses.

B. A condominium created on or after September 24, 2022 may be
terminated only by agreement of unit owners of units to which ninety-five
percent of the votes in the association are allocated, or any larger
percentage the declaration specifies, except as provided in subsection A,
paragraph 1 or 2 of this section.

C. At least thirty days before recording a termination agreement,
the board of directors of the association shall convene a regular or
special meeting of the board of directors at which a person or entity that
purports to have the agreement of at least the percentage of the votes in
the association specified in subsection A or B of this section, as

applicable, or any larger percentage if required, shal] produce and make

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House Amendments to S.B. 1198

available to the unit owners copies of a signed notarized statement that
the owner of a unit has executed a termination agreement. The person or
entity shall produce copies of a statement for each unit owner who has
agreed to the termination, or may produce the signed termination agreement
that includes a sufficient number of unit owners. Any meeting called
pursuant to this subsection shall be noticed as otherwise provided by law,
except that the board may not take action by written consent or any other
method that does not provide for an actual meeting that is open to all the
unit owners. Any termination agreement that is recorded without full
compliance with this subsection is invalid.

D. An agreement to terminate shall be evidenced by the execution or
ratifications of a termination agreement, in the same manner as a deed, by
the requisite number of unit owners. The termination agreement shall
specify a date after which the agreement will be void unless it is recorded
before that date. A termination agreement and ail ratifications of a
termination agreement shall be recorded in each county in which a portion
of the condominium is situated and is effective only on recordation.

E. A termination agreement may provide that al] the common elements
and units of the condominium shall be sold following termination. If,
pursuant to the agreement, any real estate in the condominium is to be sold
following termination, the termination agreement shall set forth the
minimum terms of the sale.

F. The association, on behalf of the unit owners, may contract for
the sale of real estate in the condominium, but the contract is not binding
on the unit owners until approved pursuant to subsections A, B, C and D of
this section. If any real estate in the condominium is to be sold
following termination, title to that real estate on termination vests in
the association as trustee for the holders of all interest in the units.
Thereafter, the association has all powers necessary and appropriate to
effect the sale. Until the sale has been concluded and the proceeds of the

sale distributed, the association continues in existence with all powers it

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House Amendments to $.B. 1198

had before termination. Proceeds of the sale shall be distributed to unit
owners and lienholders as their interests may appear, in proportion to the
respective interests of unit owners as provided in subsection I of this
section. Unless otherwise specified in the termination agreement, as long
as the association holds title to the real estate, each unit owner and the
unit owner’s successors in interest have an exclusive right to occupancy of
the portion of the real estate that formerly constituted the unit owner's
unit. During the period of that occupancy, each unit owner and the
successors in interest remain liable for all assessments and other
obligations imposed on unit owners by this chapter or the declaration.

G. If the real estate constituting the condominium is not to be sold
following termination, title to all the real estate in the condominium
vests in the unit owners on termination as tenants in common in proportion
to their respective interests as provided in subsection I of this section,
and liens on the units shift accordingly. While the tenancy in common
exists, each unit owner and the unit owner's successors in interest have an
exclusive right to occupancy of the portion of the real estate that
formerly constituted the unit owner's unit.

H. Following termination of the condominium, the proceeds of any
sale of real estate, together with the assets of the association, are held
by the association as trustee for unit owners and holders of liens on the
units as their interests may appear. Following termination, creditors of
the association holding liens on the units that were recorded -before
termination may enforce those liens in the same manner as any lienholder.

I. The respective interests of unit owners referred to in
subsections F, G and H of this section are as follows:

1. Except as provided in paragraph 2 of this subsection, the
respective interests of unit owners are the fair market values of their
units, limited common elements and common element interests immediately
before the terminations-~ AND their pro rata share of any monies in the

association’s reserve fund and the operating account IMMEDIATELY BEFORE THE

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TERMINATION. amd ONLY FOR A UNIT THAT IS THE PRIMARY RESIDENCE OF THE UNIT
OWNER, FROM THE CONDOMINIUM RELOCATION FUND, THE UNIT OWNER SHALL RECEIVE
an additional five percent of that total amount for relocation costs ALONG
WITH ALL CLOSING COSTS OF THE SALES TRANSACTION, INCLUDING COSTS FOR TITLE
INSURANCE IF REQUESTED BY THE UNIT OWNER, AND COMPENSATION FOR THE
DIFFERENCE IN THE INTEREST RATE FOR ANY AMOUNT OWED ON A MORTGAGE, DEED OF
TRUST OR OTHER SIMILAR ENCUMBRANCE ON THE UNIT AT THE TIME OF TERMINATION
AND THE INTEREST RATE FOR A SIMILAR MORTGAGE OR DEED OF TRUST OR OTHER
SIMILAR FINANCING METHOD ON THAT SAME AMOUNT AT THE TIME OF
TERMINATION. FOR ALL UNIT OWNERS, THE FAIR MARKET VALUE OF THE UNIT SHALL
BE DETERMINED FROM THE HIGHER OF THE HIGHEST SELLING PRICE PAID FOR A UNIT
WITH A COMPARABLE FLOOR PLAN AND COMPARABLE SIZE THAT WAS SOLD IN THE
CONDOMINIUM IN THE IMMEDIATELY PRECEDING FIVE YEARS AND THE FAIR MARKET
VALUE AS DETERMINED BY AN INDEPENDENT APPRAISAL OF THE UNIT THAT IS MADE
USING UNITS WITH A SIMILAR SQUARE FOOTAGE, A SIMILAR NUMBER OF BEDROOMS AND
BATHROOMS AND OTHER SIMILAR FEATURES IN CONDOMINIUMS WITHIN A FIVE-MILE
RADIUS OF THE CONDOMINIUM. ANY APPRAISAL USED FOR THIS PURPOSE IS AT THE
UNIT OWNER'S OPTION, AND THE UNIT OWNER SHALL PAY FOR THE APPRAISAL. IF
THE UNIT OWNER CHOOSES NOT TO USE AN APPRAISAL, THE FAIR MARKET VALUE SHALL
BE DETERMINED WITHOUT IT AS PRESCRIBED BY THIS PARAGRAPH. THE FAIR MARKET
VALUE SHALL NOT BE REDUCED BY ANY SPECIAL ASSESSMENTS, CAPITAL IMPROVEMENT
FEES OR OTHER CHARGES IMPOSED BY THE ASSOCIATION DURING THE TWO-YEAR PERIOD
IMMEDIATELY PRECEDING THE TERMINATION. An—hrdepentent—appratser—setected

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determnattonr—of-the-imdependentappratser—shatt be atstt tboted tothe ant

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rat tie totat—anoont—of—compensatton— ower as vecermimned” DY Cie

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House Amendments to S.B. 1198

secomt—appratser—ts— more tian — Five percent frigher—ttran—tthe—amourre
determined -by—the-assuctattors—appratser> IF THE UNIT OWNER AND THE BUYER
DO NOT AGREE ON THE FAIR MARKET VALUE OF THE UNIT AND, IF APPLICABLE, THE
RELOCATION COSTS AND OTHER ADDITIONAL AMOUNTS DUE AN OWNER OF A UNIT THAT
IS THE UNIT OWNER'S PRIMARY RESIDENCE, the unit owner stat? MAY submit THE

ISSUES to arbitration by an arbitrator affiliated with a national

arbitration association and under the rules of that association @t—the

assoctattors—expense and the arbitration amount is the final sale

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3.3.
it

five—percent—of_thefinat sate —amount—sita orretocatton-tcusts;
THE COSTS OF THE ARBITRATION SHALL BE PAID FROM THE CONDOMINIUM RELOCATION
FUND ESTABLISHED BY SECTION 41-3958. .

2. If any unit or any limited common element is destroyed to the
extent that an appraisal of the fair market value of the unit or element
before destruction cannot be made, the interests of al] unit owners are
their respective common element interests immediately before the
termination.

J. ‘Except as provided in subsection K of this section, foreclosure
or enforcement of a lien or encumbrance against the entire condominium does
not of itself terminate the condominium, and foreclosure or. enforcement of
a lien or anoenimanee: against a portion of the condominium does not
withdraw that portion from the condominium. Foreclosure or enforcement of
a lien or encumbrance against withdrawable real estate does not of. itself
withdraw that real estate from the condominium, but the person taking title
may require from the association, on request, an amendment excluding the
real estate from the condominium.

K. If a lien or encumbrance against a portion of the real estate
comprising the condominium has priority over the declaration, and the lien

or encumbrance has not been partially released, the parties foreclosing the

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House Amendments to S.B. 1198

lien or encumbrance, on foreclosure, may record an instrument excluding the
real estate subject to that lien or encumbrance from the condominium.

L. The provisions of subsections —, F, G, H, J and K of this section
do not apply if the original declaration, an amendment to the original
declaration recorded before the conveyance of any unit to an owner other
than the declarant or an agreement by all of the unit owners contains

provisions inconsistent with these subsections.

M, Begiming—on—August—S; e¢8- Any provisions in the declaration
that conflict with subsection I, paragraph 1 of this section are void as a

matter of public policy.
N. EACH UNIT IN A CONDOMINIUM SHALL BE ASSESSED AN ANNUAL AMOUNT AS

DETERMINED BY THE DIRECTOR OF THE ARIZONA. DEPARTMENT OF HOUSING TO PROVIDE
MONIES FOR THE CONDOMINIUM RELOCATION FUND ESTABLISHED PURSUANT TO SECTION

41-3958.

Sec. 2. Section 33-1260, Arizona Revised Statutes, is amended to
read:

33-1260. Resale of units; information required: fees: civil

penalty: applicability; definition

A. For condominiums with fewer than fifty units, a unit owner shall
mail or deliver to a purchaser or 4 purchaser's authorized agent within ten
days after receipt of a written notice of a. pending sate of the unit, and
for condominiums with fifty or more units, the association shall mail or
deliver to a purchaser or a purchaser's authorized agent within ten days
after receipt of a written notice of a pending sale that contains the name
and address of the purchaser all of the following in either paper or
electronic format:

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

2. A copy of the deciaration.

3, A dated statement containing:

(a) The telephone number and address of a principal contact for the

association, which may be an association manager, an association management

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House Amendments to S.B. 1198

company, an officer of the association or any other person designated by
the board of directors.

(b) The amount of the common expense assessment for the unit and any
unpaid common expense assessment, special assessment or other assessment,
fee or charge currently due and payable from the selling unit owner. If
the request is made by a lienholder, escrow agent, unit owner or person
designated by a unit owner pursuant to section 33-1256, failure to provide
the information pursuant to this subdivision within the time provided for
in this subsection shall extinguish any lien for any unpaid assessment then

due against that unit.
(c) A statement as to whether a portion of the unit is covered by

‘insurance maintained by the association.

(d) The total amount of money held by the association as reserves.

(e) If the statement is being furnished by the association, a
statement as to whether the records of the association reflect any
alterations or improvements to the unit that violate the declaration. The
association is not obligated to provide information regarding alterations
or improvements that occurred more than six years before the proposed sale.
Notiring—in This subdivision retteves DOES NOT RELIEVE the seller of a unit
from the obligation to disclose alterations or improvements to the unit
that violate the declarationz—tror—prectutes AND DOES NOT PRECLUDE the
association from taking action against the purchaser of a unit for
violations that are apparent at the time of purchase and that are not
reflected in the association's records.

(f) If the statement is being furnished by the unit owner, a
statement as to whether the unit owner has any knowledge of any alterations
or improvements to the unit that violate the declaration.

(g) A statement of case names and case numbers for pending
litigation with respect to the unit filed by the association against the
unit owner or filed by the unit owner against the association. The unit

owner or the association shall not be required to disclose information

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House Amendments to $.B. 1198

concerning the pending litigation that would violate any applicable rule of
attorney-client privilege under arizorra STATE law.

(h) A. statement that provides "I hereby acknowledge that the
declaration, bylaws and rules of the association constitute a contract
between the association and me (the purchaser). By signing this statement,
I acknowledge that I have read and understand the association's contract
with me (the purchaser). I also understand that as a matter of Arizona
law, if I fail to pay my association assessments, the association may
foreclose on my property." The statement shall also include a signature
line for the purchaser and shall be returned to the association within
fourteen calendar days.

4, A copy of the current operating budget of the association.

5. A copy of the most recent annual financial report of the
association. If the report is more than ten pages, the association may
provide a summary of the report in lieu of the entire report.

6. A copy of the most recent reserve study of the association, if
any.

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

8. A STATEMENT NOTIFYING THE PURCHASER THAT UNDER THE LAWS OF THIS
STATE, THE CONDOMINIUM MAY BE TERMINATED BY A VOTE OF EIGHTY PERCENT OR
MORE OF THE OWNERS OF THE UNITS IN THE CONDOMINIUM AND IF A SUFFICIENT
NUMBER OF UNITS ARE ACQUIRED BY A POTENTIAL BUYER FOR THE ENTIRE PROPERTY,
THE UNIT OWNERS MAY BE REQUIRED TO SELL THEIR UNITS.

B. A purchaser or seller who is damaged by the failure of the unit
owner or the association to disclose the information required by subsection
A of this section may pursue all remedies at jaw or in equity against the
unit owner or the association, whichever failed to comply with subsection A

of this section, including the recovery of reasonable attorney fees.

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House Amendments to S.B. 1198

C. The association may charge the unit owner a fee of not more than
an aggregate of four—turrdred-dottars $400 to compensate the association for
the costs incurred in the preparation and delivery of a statement or other
documents furnished by the association pursuant to this section for
purposes of resale disclosure, lien estoppel and any other services related
to the transfer or use of the property. In addition, the association may
charge a rush fee of not more than omechundredtottars $100 if the rush
services are required to be performed within seventy-two hours after the
request for rush services, and may charge a statement or other documents
update fee of not more than f+fty—ttottars $50 if thirty days or more have
passed since the date of the original disclosure statement or the date the
documents were delivered. The association shal} make available to any
interested party the amount of any fee established from time to time by the
association. If the aggregate fee for purposes of resale disclosure, lien
estoppel and any other services related to the transfer or use of a
property is less than fourthumred-dottars $400 on January 1, 2010, the fee
may increase at a rate of not more than twenty percent per year based on
the immediately preceding fiscal year's amount, not to exceed the four
homdret-dottar $400 aggregate fee. The association may charge the same fee
without regard to whether the association is furnishing the statement or
other documents in paper or electronic format.

D. The fees prescribed by this section shall be collected mo NOT
earlier than at the close of escrow and may only be charged once to a unit
owner for that transaction between the parties specified in the notice
required pursuant to subsection A of this section. An association shall
not charge or collect a fee relating to services for resale disclosure,
lien estoppel and any other services related to the transfer or use of a
property except as specifically authorized in this section. An association
that charges or collects a fee in violation of this section is subject to a
civil penalty of not more than one-thousamt-twottrandred tot tars $1,200.
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House Amendments to S.B. 1198

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

F. The following are exempt from this section:

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

2, A sale pursuant to section 32-2181.02.

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

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

H. For the purposes of this section, unless the context otherwise

requires, "unit owner”:
1. Means the seller of the condominium unit title. and-exchnes

2. DOES NOT INCLUDE:

(a) Any real estate salesperson or real estate broker who is
licensed under title 32, chapter 20 and who is acting as a salesperson or
broker. 77

(b) Any escrow agent who is licensed under title 6, chapter 7 and
who is acting as an escrow agent. emrd—atso—exctudes

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

Sec. 3. Title 33, chapter 9, article 3, Arizona Revised Statutes, is
amended by adding section 33-1262, to read:

33-1262. Annual notice to unit owners: termination; ownership

THE BOARD OF DIRECTORS SHALL PROVIDE AN ANNUAL NOTICE TO ALL UNIT

OWNERS THAT INCLUDES THE FOLLOWING:

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House Amendments to S.B. 1198

1. A STATEMENT THAT UNDER THE LAWS OF THIS STATE, THE CONDOMINIUM
MAY BE TERMINATED BY A VOTE OF EIGHTY PERCENT OR MORE OF THE OWNERS OF THE
UNITS IN THE CONDOMINIUM AND IF A SUFFICIENT NUMBER OF UNITS ARE ACQUIRED
BY A POTENTIAL BUYER FOR THE ENTIRE PROPERTY, THE UNIT OWNERS MAY BE
REQUIRED TO SELL THEIR UNITS.

2. A STATEMENT THAT PROVIDES THE TOTAL NUMBER OF UNITS INTHE
CONDOMINIUM, THE NUMBER OF UNITS OWNED BY EACH UNIT OWNER AND THE NAME OF
EACH UNIT OWNER.

Sec. 4. Title 41, chapter 37, article 2, Arizona Revised Statutes,
is amended by adding section 41-3958, to read:

41-3958. Condominium relocation. fund: assessment: purpose:

exemption
A. THE CONDOMINIUM RELOCATION FUND IS ESTABLISHED CONSISTING OF

MONIES COLLECTED PURSUANT TO SECTION 33-1228 AND THIS SECTION. THE
DEPARTMENT SHALL ADMINISTER THE FUND. EACH UNIT OWNER IN A CONDOMINIUM AS
DEFINED IN SECTION 33-1202 SHALL PAY AN ASSESSMENT EACH YEAR FOR EACH
CONDOMINIUM UNIT THE PERSON OWNS. THE DIRECTOR SHALL DETERMINE BY RULE THE
AMOUNT OF THE ASSESSMENT AND SHALL NOTIFY THE COUNTY TREASURER OF THE
AMOUNT. THE COUNTY TREASURER SHALL COLLECT THE ASSESSMENT IMPOSED BY THIS
SECTION AT THE SAME TIME AND IN THE SAME MANNER AS REAL PROPERTY TAXES.
THE COUNTY TREASURER SHALL SEPARATELY LIST THE ASSESSMENT ON THE TAX ROLL
AND SHALL TRANSFER THE REVENUES COLLECTED TO THE STATE TREASURER FOR
DEPOSIT IN THE CONDOMINIUM RELOCATION FUND.

B. MONIES IN THE FUND SHALL BE USED TO PAY THE FOLLOWING AS A
PORTION OF THE AMOUNT PAYABLE TO A UNIT OWNER FOR THE UNIT OWNER'S INTEREST
IN A CONDOMINIUM THAT IS BEING TERMINATED PURSUANT TO SECTION 33-1228:

1. FOR A UNIT THAT IS THE PRIMARY RESIDENCE OF THE UNIT OWNER, ALL
OF THE FOLLOWING AS PRESCRIBED BY SECTION 33-1228:

(a) THE ADDITIONAL FIVE PERCENT OF THE TOTAL AMOUNT PURSUANT TO
SECTION 33-1228, SUBSECTION I, PARAGRAPH 1 AS RELOCATION COSTS.

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House Amendments to S.B. 1198

(b) ALL CLOSING COSTS OF THE SALES TRANSACTION, INCLUDING COSTS FOR
TITLE INSURANCE IF REQUESTED BY THE UNIT OWNER.

(c) COMPENSATION FOR THE DIFFERENCE IN THE INTEREST RATE FOR ANY
AMOUNT OWED ON A MORTGAGE, DEED OF TRUST OR OTHER SIMILAR ENCUMBRANCE ON
THE UNIT AT THE TIME OF TERMINATION AND THE INTEREST RATE FOR A SIMILAR
MORTGAGE OR DEED OF TRUST OR OTHER SIMILAR FINANCING METHOD ON THAT SAME
AMOUNT AT THE TIME OF TERMINATION.

2. FOR ALL UNIT OWNERS, THE COSTS OF THE ARBITRATION PRESCRIBED BY
SECTION 3332 1228:,

C. ON NOTICE FROM THE DIRECTOR, THE STATE TREASURER SHALL INVEST AND
DIVEST MONIES IN THE FUND AS PROVIDED BY SECTION 35-313, AND MONIES EARNED
FROM INVESTMENT SHALL BE CREDITED TO THE FUND. ANY UNEXPENDED AND
UNENCUMBERED MONIES REMAINING IN THE FUND AT THE END OF THE FISCAL YEAR DO
NOT REVERT TO THE STATE GENERAL FUND BUT REMAIN IN THE FUND, SEPARATELY
ACCOUNTED FOR, AS A CONTINGENCY RESERVE.

D. THE DEPARTMENT MAY USE NOT MORE THAN FIVE PERCENT OF THE MONIES
IN THE FUND ANNUALLY FOR THE COSTS OF THE DEPARTMENT IN ADMINISTERING THE

FUND,
Sec. 5. Legislative intent: condominium terminations:

retroactivity
_ A. The legislature finds that in recent years, numerous condominium

owners in this state have been forced to sell their residences at a
significantly reduced price to investors that have acquired a substantial
interest in the condominium units in that community and that are
terminating the condominium over the objection of those same owners and, in
most cases, converting the condominiums to rental property. These
condominium owners have been financially harmed by the inequitable system
used by the investors acquiring the condominium units at an extreme
discount in a forced sale. Some of these investors have further harmed
these condominium owners by levying special assessments or other similar

charges against the unit owners once the investors have control of the

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House Amendments to S.B. 1198

association board of directors, thus requiring the special assessments and
charges to be paid on termination, reducing the net sales proceeds for the
unit owners even further. These inequities are compounded by recent real
estate market forces that have made condominium termination and conversion
a more favored investment option.

B. The statutory provisions that govern the acquisition § and
termination of a condominium, originally written in 1977, have been in
place in this state since 1985 and have been unchanged for many years.
Beginning in 2018, the legislature recognized the inequities in the old
statutory scheme that leaves these condominium owners with unequal
bargaining power and has attempted to provide more protections for
condominium owners who are subject to a forced termination. A recent

decision in this state's courts, Cao v. PFP Dorsey Investments, LLC, 253

Ariz, 552 (Az. App. 2022), has reduced or eliminated the effectiveness of
the legislature's recent enactments, resulting in continuing harm to

condominium owners’ private property rights.

C. Based on the foregoing and after careful consideration of the

case Cao v. PFP Dorsey Investments, LLC, 253 Ariz. 552 (Az. App. 2022), the

legislature finds and declares that there is a vital public interest in
maintaining these forms of private property ownership as affordable and
essential housing and in ensuring through a lawful exercise of its police
powers that condominium unit owners are properly compensated for their
private property ownership rights and receive fair compensation for any
condominium units that are forced to be sold under the termination process.
The jegislature further finds that even if this enactment does constitute a
substantial impairment to one or more contractual rights, this enactment is
a valid exercise of this state's police power in that it provides a
safeguard to the vital public interest in protecting these property rights
and is a reasonable and appropriate minor adjustment to the inherently
unequal bargaining position of the parties and furthers this significant

and legitimate public purpose. Therefore, the legislature intends for this

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House Amendments to $.B. 1198

act to be retroactively applied to all condominiums in this state, whether
established before or after the effective date of this act.

Sec. 6. Retroactivity

Section 33-1228, Arizona Revised Statutes, as amended by this act,
applies retroactively to ali condominiums in this state, whether
established before or after the effective date of this act.”

Amend title to conform

— QUSTIN WILMETH

Ot O4-P Ht
Hr-ttire

LIS8WILMETH2. docx
03/24/2023

02:07 PM

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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1198

DATE March 28, 2023 MOTION: _DPA LSE

PASS

a
m7

NAY PRESENT | ABSENT

Aguilar Spanboval

Austin
Carter

Gress

Heap

Hendrix

Ortiz

Sun

Carbone, Vice-Chairman

Wilmeth, Chairman

HBS) [NSN

| © O

APPROVE COMMITTEE SECRETARY
STIN WILMETH, Chairman ~
@HAEL CARBONE, Vice-Chairman a

ATTACHMENT. /&
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session
Senate: FIN DP 4-3-0-0 [| 3° Read 16-12-2-0

$CR1033: state debt; limit; restrictions; prohibitions
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Overview
Subject to voter approval, constitutionally defines debt as specified obligations of this State that

are paid with state General Fund monies.

History
The Arizona Constitution grants the State the power to contract debts to supply the casual deficits

or failures in revenues or to meet expenses not otherwise provided for. The total amount of
contract debts cannot exceed $350,000. The monies created from such debts must be used for
the outlined purpose. Additionally, the State may borrow money to: 1) repel an invasion; 2)
suppress an insurrection; or 3) defend the State during a time of war. Monies may not be paid
from the state treasury except as provided by law (Arizona State Constitution, Article 9 § 5).

Provisions:
1. Defines debt as the following state obligations that are paid with state General Fund monies:

a) general obligation bonds;

b) long-term notes and obligations;
c) certificates of participation and other obligations pursuant to any lease- +puranase

agreement;

d) revenue bonds; and
e) obligations of this State in one fiscal year that are deferred in whole or in part to another

fiscal year.

2. Instructs the Secretary of State to submit this proposition to the voters in the next general
election.

0 Prop 105 (45 votes) Prop 108 (40 votes) [1 Emergency (40 votes) {& Fiscal Note

SCR 1033
Initials PRB Page 1 Commerce

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Fifty-sixth Legislature Commerce
First Regular Session S.C.R. 1033

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.C.R. 1033

(Reference to Senate engrossed resolution)

Page 1, line 26, after "MEANS" insert ":
1. ANY OF"

Line 27, strike “OBLIGATIONS OF" insert “ISSUED BY"; after “STATE” insert ",
OTHER THAN THOSE ISSUED FOR LONG-TERM CAPITAL PROJECTS FOR EDUCATION OR
PUBLIC SAFETY PURPOSES,”

Line 29, strike "1." insert "(a)"

Line.30, strike "2." insert "(b)"

Line 31, strike "3." insert "(c)"

Line 33, strike "4." insert "(d)"

Line 34, strike "5." insert "2. STATE GENERAL FUND"; after “OBLIGATIONS”
strike remainder of line

Line 35, strike "ARE"; after "PART" insert “FROM ONE FISCAL YEAR"; after
"YEAR" insert "FOR THE PURPOSES OF RESOLVING CASUAL DEFICITS OR FAILURES IN
REVENUES"

Amend title to conform

JUSTIN WILMETH

SCRIO33WILMETH. docx
03/27/2023

11:20 AM

C: MEB

Attachment LT

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

COMMITTEE ON

ROLL CALL VOTE

Commerce

BILL NO.

SCR 1033

MOTION: dD PA

DATE March 28, 2023

PASS AYE NAY PRESENT | ABSENT
“Aguilar SANDOVAL v
Austin ; J
Carter / VA
Gress J
Heap. v
Hendrix ‘;
Ortiz "4
Sun V4
Carbone, Vice-Chairman /
Wilmeth, Chairman vA

% | 4 O ©

APPROVED:

JUSTRY,

Mig

ILMETH, Chairman
CARBONE, Vice-Chairman ~

A olan \ N hopin,

COMMITTEE SECRETARY

ATTACHMENT 8

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature

First Regular Session

Senate; GOV DPA 5-3-0-0 | 3 Read 16-13-1-0

Pass LE TO Pa NS TYTN OTE ASO TS POL Ec Se EO EEN TEE SE TY
SB 1138: business; discrimination prohibition; social criteria
Sponsor: Senator Hoffman, LD 15
Committee on Commerce

Overview
Prohibits financial institutions, insurers or credit reporting agencies from discriminating against
any person hased on certain affiliations or value-based criteria.

History
A financial institution is statutorily defined as banks, trust companies, savings and loan

associations, credit unions, consumer lenders, international banking facilities and financial
institution holding companies under the jurisdiction of the Department of Insurance and Financial
Institutions (A.R.S. § 6-101).

An insurer includes every person engaged in the business of making contracts of insurance
(A.R.S. § 20-104).

A consumer reporting agency is any person which, for monetary fees, dues, or on a cooperative
nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating
consumer credit information on consumers for the purpose of furnishing consumer reports to third
parties (A.R.S. § 44-1691).

Provisions —
1. Prohibits a financial institution, an insurer or a credit reporting agency from discriminating

against any person based on:
a) political affiliation; or
b) other social credit, environmental, social, governance or similar values-based or impact

criteria. (Sec. 1, 2 ,3)

2. Stipulates that the prohibition does not interfere with a financial institution's, an insurer's or a
credit reporting agency's ability to discontinue or refuse to conduct business with a person if
necessary for the physical safety of employees. (Sec. 1, 2, 3)

3. Permits a financial institution to offer investments, products or services to a potential customer
or investor that include subjective standards if the standards are fully disclosed and explained
prior to the entering into a contract. (Sec. 1)

4. Specifies the Legislature declares that:
a) the practice of discrimination against persons or entities in Arizona by using their social
credit or environmental, social justice and governmental score is a statewide concern; and
b) discrimination based on such scores not only threatens the rights, privileges, peace, order,
health, safety and general welfare of Arizona and its inhabitants but menaces the
institutions and foundation of a free democratic state. (Sec. 1, 2, 3)

1 Prop 105 (45 votes) 01 Prop 108 (40 votes) (© Emergency (40 votes) £1 Fiscal Note

SB 1138
Initials PRB/HG Page 1 Commerce

Attachment | a

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE
COMMITTEE. ON Commerce BILL NO. SB 1138
DATE March 28, 2023 MOTION: HP
PASS AYE NAY PRESENT | ABSENT

Aguilar S anpovAL. vA

Austin WA

Carter VA

Gress /

Heap J

Hendrix Vv ,

Ortiz /

Sun y; V

Carbone, Vice-Chairman v

Wilmeth, Chairman Va

Aus LAM. N whan

_>

yoo WILMETH, Chairman
Gok CARBONE, Vice-Chairman

COMMITTEE SECRETARY

ATTACHMENT. <2 0

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