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2014 Legislative Review

Second Regular Session of the 51st Arizona Legislature

 

Dear Members:

Government relations advocacy is the cornerstone of the Arizona Bankers Association (AzBA). For over 100 years, the Association has worked hard to pass legislation that would benefit the industry and to defeat legislation that would be detrimental. This year was no different.

The Arizona Bankers Association had yet another successful year at the Arizona capitol. We had a pro-active agenda of four bills we wanted to see become law. We packaged three of them into an omnibus measure and passed them all in one fell swoop. The fourth bill was our effort to reform the state’s anti-deficiency statutes as they are applied to borrowers on residential real estate. We were able to accomplish that as well. The rest of our agenda was defensive in nature and we were 100 percent successful in preventing bills that threatened the financial services industry from becoming law.

Attached is a summary of the substantive bills that AzBA tracked along with a brief description of each. The summaries are divided into key bills, and enacted and unenacted legislation. Please keep in mind that these are bill summaries designed to alert you to significant provisions and are not comprehensive recitations of each bill.  Additionally, nothing in this report should be viewed as a legal opinion. If you have legal questions on any bill, you should contact your bank’s legal counsel. Unless otherwise specified, the general effective date for all bills is July 24, 2014.

I am pleased to present this legislative review to you as I believe it represents the best of what AzBA has to offer – exceptional government relations advocacy that protects your bottom line and the vitality of our industry. I would like to extend a special thank you to the members of our Government Relations Committee. They devote significant time to serve the industry in this very import endeavor. Without their help and commitment none of this would be possible.

Thank you for your continued support and please contact me with any questions.

 

Sincerely,

Paul Hickman

President & CEO

TABLE OF CONTENTS

 

 

 

SESSION IN REVIEW                                                                                       

 

 

 

 

 

 

KEY LEGISLATION                                                                                  

Priority Legislation

Banking

Mortgages

Regulatory

Tax

 

 

 

ENACTED BILLS                                                                                     

 

 

 

 

 

 

UNENACTED BILLS                                                                         

 

 SESSION IN REVIEW                                                                                                     

 

51st Arizona Legislature, 2nd Regular Session

 

 

The Legislature adjourned sine die on April 24th, 2014 at 1:46 a.m. after 101 days of legislative work. Final stats of the session: 1,205 bills introduced and 303 passed, with 25 of those bills vetoed by Governor Brewer. Bills signed into law become effective July 24, 2014, unless they contain a delayed effective date, are appropriations bills, or contain an emergency clause, in which case they become effective immediately upon signature of the Governor.

The Second Regular Session of the 51st Legislature began in January with a focus on child safety and a planned overhaul of Child Protective Services, saw Arizona once again come under the hot glare of national attention during the gay-rights-vs.-religious-freedom debate of SB 1062, and reached its conclusion with child safety resurfacing as the centerpiece of an anticipated Special Session that the Governor will likely call in late May.

The Session was one of the milder in memory, especially coming on the heels of marathon and ultra-contentious sessions such as 2013 (Medicaid), 2010 (SB 1070) and 2009 (sales-tax referral). Rather, the Governor and Legislature this year managed to approve an $8.9B budget with little fanfare, continued to approve integrated economic incentives, and generally steered clear of hot-button bills following the blow up over SB 1062.

 KEY LEGISLATION                                                                                                        

  1.  PRIORITY LEGISLATION

 

The Arizona Bankers Association identified a number of pieces of priority legislation this session and partnered with other organizations in advancing several of these bills. The Association was successful in achieving proactive legislation relating to Dodd Frank conformity, amending UCC Article IX, and reforming the State’s anti-deficiency statutes. The Association was also  successful in eliminating hostile legislation such as tax lien lending and PACE.

 

H2018 (Chapter 129):  MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS

After years of debate and uncertainty between the Association and the Arizona Association of Realtors, the two groups finally worked out an agreement on anti-deficiency language this Session. The resulting bill is prospective legislation (applying only to mortgages entered into after December 31, 2014) that will preserve the anti-deficiency protections for borrowers utilizing a home as their primary residence while eliminating investor abuses in the housing sector due to unclear and loosely interpreted anti-deficiency laws.

 

Summary: For mortgages and deeds of trust originated after December 31, 2014, anti-deficiency protection does not apply to real property owned by a person engaged in the business of constructing and selling dwellings that was acquired by the person in the course of that business, property that contains a dwelling that was never “substantially completed” (defined), or property that contains a dwelling that is never actually utilized as a dwelling.

ARS Titles Affected: 33

First sponsor: Rep. Forese & Rep. Lovas

Signed by Governor, prospective to mortgages entered into after December 31, 2014

 

H2206: WATER & ENERGY IMPROVEMENT DISTRICTS

Actively opposed by the Association, HB2206 sought to bring model Property Assessed Clean Energy (“PACE”) legislation to Arizona. The bill never received a committee hearing, but stakeholders have agreed to meet in the interim to discuss potential solutions. Thanks to the lobbying efforts of Veridus and others, this bill was triple-assigned to various committees in the House and never received a hearing.

 

Summary: Would have added new article to Title 48 (Special Taxing Districts) establishing and regulating water and energy improvement districts. The governing body of a local government would have been authorized to adopt a resolution establishing a district after following specified steps. Once a district is formed, the local government is authorized to hire a program administrator and staff, contract for professional services, impose fees and assessments to offset the costs of administering a program, and issue bonds or notes to finance qualified projects.

ARS Titles Affected: 48

First sponsor: Rep. Orr

 

H2526 (Chapter 96): CONSUMER LENDER LOANS

Brought forward by Springleaf Financial, the Association kept a close eye on this legislation as it moved through the process. HB2526 allows lenders to charge up to a 36% interest rate on the first $3,000 of a consumer lender loan, and allows licensees to provide up to $25 in incentives/gifts for new loan applicants and up to $100 in bonuses/commission to merchants or referral sources for completed loans. Lastly, the bill doubles the maximum allowable statutory amount that licensees can charge for loan origination/brokerage fees ($150). Despite the opposition’s claims that this law seeks to reintroduce “payday lending” in Arizona, the bill successfully passed out of the House and Senate and was signed by the Governor.

 

Summary: Increases the maximum dollar amounts on which specified rates of consumer loan finance charges may be charged, and increases the maximum consumer revolving loan origination fee to $150, from $75. If a consumer loan, consumer revolving loan or home equity revolving loan exists before the effective date of this legislation and is modified after the effective date, and the total new cash advances do not exceed $100, a licensed consumer lender is prohibited from contracting for and receiving periodic finance charges at an annual percentage rate that is higher than the rate that existed before the effective date. Licensed consumer lenders are prohibited from giving a consumer any prize, merchandise or tangible property of an aggregate value of more than $25. Licensed consumer lenders are prohibited from holding a person responsible for any loan amount that is incurred as a result of identity theft.

ARS Titles Affected:

6 First sponsor: Rep. Shope

Signed by Governor, effective on July 24, 2014

 

H2262: TRANSPORTATION NETWORK SERVICES

Largely considered one of the most contentious issues this session, HB2262 sought to place a regulatory framework around ridesharing networks in Arizona. The Association voiced concerns regarding the insurance language as it related to comprehensive coverage for ridesharing vehicles during the ridesharing trip. The bill passed the Legislature on sine die, but was ultimately vetoed by the Governor due to lack of adequate drug testing and insurance requirements.

 

Summary: Would have established regulations for “transportation networks”, including requirements to file with the Corporation Commission or Secretary of State, annually conduct safety inspections of motor vehicles, maintain a commercial liability insurance policy with specified minimum coverage and provide proof of the coverage to the Department of Weights and Measures, and conduct criminal background checks and driver license record checks on each potential transportation network operator. Transportation networks would have been authorized to offer transportation network trips at no charge, suggest a donation or charge a fare.

Transportation network operators would have been prohibited from soliciting or accepting street hails. Violations of these requirements would have been subject to a civil penalty of up to $1,000 for each violation, not to exceed $10,000 for any 30-day period. Transportation network vehicles and transportation networks would not have been subject to further regulation by counties and municipalities.

ARS Titles Affected:

28 41 First sponsor: Rep. Forese

Vetoed by the Governor on April 25, 2014

As expected, the property tax lien bill from 2013 reappeared this session. HB2381 was opposed by the Arizona Bankers Association based on the experiences of banks in Texas with a tax lien transfer system. Although proponents suggest that their product helps homeowners at risk of foreclosure, the experience in Texas has revealed that it speeds up the tax lien foreclosure process and often results in banks holding a loan on the property being pressured to pay off the tax lien in order to protect their interest in the property. The Association was successful in defeating this

legislation, but expects that the proponents will have legislation introduced again in 2015.H2381 ASSIGNMENT OF TAX LIENS

 

Summary: Would have required the county treasurer in a county with a population of more than 900,000 (Maricopa County) to assign a tax lien against real property to a third party if he/she receives a written authorization from the property owner to assign the lien to the third party and payment in the amount of the taxes, interest and penalties due on the property. The property owner and the third party would then have been permitted to enter into an agreement for payment of all amounts secured by the lien. The assignment and payment agreement would have had to be filed with the county recorder and are prima facie evidence of the valid assignment of the lien. If the property owner defaulted on the payment agreement, the assignee of the tax lien would have been able to foreclose.

ARS Titles Affected:

42 First sponsor: Rep. Olson

 

S1046 (Chapter 103):  FINANCIAL TRANSACTIONS; OMNIBUS

SB1046 was brought to the Legislature by the Association. The bill amends Arizona’s banking statutes to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act, updates Arizona’s statutes to conform to the most recent changes to the Uniform Commercial Code, Article 9, and clarifies the statute regarding the use of account registry products by an irrigation district.

 

Summary: Numerous changes to statutes relating to financial transactions, including establishing regulations for “derivative transactions” (defined). Modifies various rules relating to collateral and filing of financing statements for secured transactions. Adds a new article to the uniform commercial code regulating financing statements for secured transactions, which applies to a transaction or lien within its scope even if the transaction or lien was entered into or created before the effective date of this legislation, except as otherwise specified.

ARS Titles Affected:

6 35 47 48 First sponsor: Sen. Yarbrough

Signed by Governor, effective on April 22, 2014

S1273  QUALIFIED MORTGAGE STANDARDS

Brought forward by Sen. Farley (D-Tucson) as an attempt to introduce “Ability to Pay” regulations in Arizona, SB1273 would have added a new chapter to Title 6 (Financial Institutions) regulating mortgages. Upon our initial review of the language, the Association determined that the unintended consequences of the bill were severe. Namely, that enacting legislation modeled after fairly new and unpredictable federal regulations was not good public policy. Veridus and The Association met with Sen. Farley to discuss the problems with his bill, after which, he agreed to not pursue the bill any further.

 

Summary: Would have added a new chapter to Title 6 (Financial Institutions) regulating mortgages. Namely, the bill sought to prohibit creditors from making a loan unless there was a reasonable and good faith determination that the consumer would have had the ability to repay the loan. Factors that must be considered in making the repayment ability determination are specified.

ARS Titles Affected:

6 First sponsor: Sen. Farley

 

S1306 (Chapter 118):  GOVERNMENT ENTITIES; CREDIT CARD PAYMENTS

This bill was introduced by Senator Griffin in response to a constituent concern in which the constituent was required to accept a credit card for services by a governmental entity. The required method of payment had not been included in the original bid documents and this legislation sought to address this circumstance. The bill was favorably amended at the request of the Association.

 

Summary: A “governmental entity” may require that a vendor accept a specific method of payment exclusively for any goods or services provided by the vendor to the entity. If a governmental entity pays a vendor by credit card, the entity is required to disclose in its annual financial report the amount of any reward, discount, incentive or other financial consideration received by the entity resulting from the credit card payment.

ARS Titles Affected:

35 First sponsor: Sen. Griffin

Signed by Governor, effective on July 24, 2014

 

S1314 (Chapter 247):  CONTINUATION OMNIBUS

The sunset review process for many state agencies came due this year. The Association was particularly interested in the continuation of the Arizona Department of Financial Institutions, which was successfully continued through July of 2024.

 

Summary: The Archaeology Advisory Commission is extended to July 1, 2017. The Board of Barbers, State Board of Pharmacy, Water Infrastructure Finance Authority and the Department of Environmental Quality are extended to July 1, 2022. The Historical Society, the Board of Physical Therapy, the Department of Financial Institutions, the Registrar of Contractors, the Board of Cosmetology and the State Board for Charter Schools are extended to July 1, 2024.

ARS Titles Affected:

41 First sponsor: Sen. Melvin

Signed by Governor, effective on July 1, 2014

 

H2098 (CHAPTER 196): LOAN ORIGINATORSII. BANKING

Summary: Amends the requirements for obtaining a loan originator license, removes the requirement for an applicant to pass a loan originator’s examination not more than one year before the granting of the license, increases the time required for an applicant for an original loan originator’s license to complete a course of study to three years immediately preceding application, requires late continuing education be completed to satisfy continuing education for the last year in which the loan originator was in renewable status, stipulates that the loan originator’s examination must be retaken if the licensed loan originator failed to maintain a valid license for a period of five years or longer, not including any time during which the applicant is a registered loan originator, and removes the time limit a licensee may not be on inactive status during renewal periods.
ARS Titles Affected:

6 First sponsor: Rep. Brophy McGee
Signed by the Governor. Effective on July 24, 2014.

H2109 (CHAPTER 27): CERTIFICATES OF TITLE; VEHICLES; TRANSFER

Summary: Specifies that a licensed motor vehicle dealer has 30 days to submit the application for a certificate of title to a motor vehicle and requires a licensed motor vehicle dealer to submit an application for a certificate of title to a motor vehicle within 30 days after the purchase or transfer.
ARS Titles Affected:

28 First sponsor: Rep. Fann
Signed by the Governor. Effective on July 24, 2014.

H2197 (CHAPTER 87): ACC; SECURITIES ENFORCEMENT; SPOUSAL JOINDER

Summary: Prohibits the Arizona Corporation Commission from joining a defendant’s former spouse in an action related to the sales of securities, and allows the Arizona Corporation Commission to apply to the courts to obtain assets transferred illegally to a former spouse of a defendant on a showing of clear and convincing evidence. Prohibits the Commission from enjoining an individual who is divorced from a defendant at the time an action is filed and allows the Commission to apply to the courts to obtain assets transferred illegally to a former spouse of a defendant on a showing of clear and convincing evidence.
ARS Titles Affected: 44
First sponsor: Rep. E. Farnsworth
Signed by the Governor. Effective on July 24, 2014.

 

III. MORTGAGES

S1047 (CHAPTER 216): CLOSING PROTECTION LETTERS; ESCROW AGENTS

Summary: Expands the protection in which a closing protection letter can indemnify a person and requires the title insurer to charge a fee to the party receiving the closing protection letter. Permits a title insurer to provide a closing protection letter to any person that is a party to a transaction in which a title insurance policy will be issued. Provides that a closing protection letter can indemnify a person from a loss resulting from specific actions of negligence on behalf of the insurer or lienholder of a policy-issuing title insurance agent or other approved settlement, and clarifies that protection extends only to transactions that relate to the status of the title to the interest in land or to the validity, enforceability, and priority of the lien of the mortgage on the interest in the land. Requires a title insurer to charge each party receiving the closing protection letter a fee of up to $25 which is earned upon the closing of the transaction and states that the fee is not subject to any agreement requiring a division of fees or premiums collected on behalf of the title insurer. Prohibits a title insurer from providing any other protection to the parties of a title insurance policy against improper acts or omissions of a person in regards to the settlement or closing services.
ARS Titles Affected:

6 First sponsor: Sen. Yarbrough
Signed by the Governor. Effective on July 24, 2014.

IV. REGULATORY

H2239 (CHAPTER 135): BOARD OF APPRAISAL

Summary: Makes various changes to the powers, duties and regulations of the Arizona Board of Appraisal regarding complaint submissions, disciplinary order, and judicial review. Removes the requirement for a criminal background check for applicants and instead requires a valid fingerprint clearance card. Repeals the sections of Title 41 regarding definitions associated with the Board of Fingerprinting and definitions and duties associated with the Fingerprinting Division Increases the surety bond from $20,000 to between $20,000 and $50,000. Eliminates the requirement of mailing in renewal applications within 60-90 days before the renewal date.
ARS Titles Affected:

32 First sponsor: Rep. Brophy McGee
Signed by the Governor. Effective on July 24, 2014.

 

H2263 (CHAPTER 136): CERTIFIED PUBLIC ACCOUNTANTS

Summary: Reorganizes and makes various changes to the Certified Public Accountant (CPA) qualifications and requirements. Clarifies that an applicant from another jurisdiction cannot have a certificate that is expired, relinquished or revoked when applying to the Board. Revises language relating to the requirement that an individual seeking to reinstate a canceled or retired certificate not have engaged in conduct constituting in a revoked or suspended certificate and exempts suspended certificates from disciplinary order if the suspension was due to non- registration or expiration. Permits the Board to suspend the registration of any CPA or PA firm that does not abide by the registration requirements.
ARS Titles Affected:

32 First sponsor: Rep. Forese
Signed by the Governor. Effective on July 24, 2014.

S1218 (CHAPTER 75): REPORTING REQS; LICENSED INVESTMENT ADVISERS

Summary: An emergency measure that removes the requirement for licensed investment advisers who have custody of client monies or securities to file an audited balance sheet with the Arizona Corporation Commission.
ARS Titles Affected:

44 44 First sponsor: Sen. S. Pierce
Signed by the Governor. Effective on April 17, 2014.

V. TAX

H2272 (CHAPTER 168): TAX CREDITS; CAPITAL INVESTMENTS; EMPLOYMENT

Summary: Makes various changes to the Quality Jobs Tax Credit, the Angel Investment Incentive Program and the Research and Development Tax Credit. The termination date of the tax credit for investment in qualified small businesses is extended five years, from December 31, 2019 to December 31, 2024, and the date after which the Arizona Commerce Authority cannot authorize additional tax credits is also extended five years, to June 30, 2021. The maximum total of all qualified investments in any calendar year by a qualified investor for the purpose of the credit is increased to $500,000, from $250,000. Beginning in tax year 2015, taxpayers are required to obtain certification from the Arizona Commerce Authority before applying to the Department of Revenue for certification of additional income tax credits for increased research activities involving basic research payments to a university. The process and requirements for obtaining certification from the Authority are specified.
ARS Titles Affected:

20 41 43 First sponsor: Rep. Forese
Signed by the Governor. Has a retroactive effective date of January 1, 2014.

 

Enacted Bill Summaries

H2001 (CHAPTER 19): INSURANCE; CONTINUING EDUCATION; DEFINITION

Summary: Changes the definition of continuously licensed to include an expired license or a license placed on inactive status due to military service, and changes the definition of continuously licensed to include an expired license if the licensee files a renewal application with the Department of Insurance and pays the $100 late renewal fee within one year after expiration, or a license that has been placed on inactive status because the licensee is ordered into active military service.
ARS Titles Affected:

20 First sponsor: Rep. Livingston
Signed by the Governor. Contains a retroactive effective date of September 13, 2013.

H2099 (CHAPTER 84): COLLECTION AGENCIES; LICENSE RENEWAL

Summary: Establishes renewal, suspension, and expiration deadlines for a collection agency license and states that an applicant must file a financial statement no later than March 1, if granted an extension to file, and further specifies a license not renewed by January 1 is suspended. Allows a suspended license to be renewed upon submission of proper application and payment of prescribed fees including any additional late fees before January 31 and states a license not renewed before January 31 is expired.
ARS Titles Affected:

32 First sponsor: Rep. Brophy McGee
Signed by the Governor. Effective on July 24, 2014.

H2121 (CHAPTER 29): INSURERS; LICENSURE; DIRECTOR EXAM

Summary: Institutes a time period of 30 days after requesting a clearance letter for a resident insurance producer who moves to another state to file a prescribed form and apply for licensure from the new resident state in order to remain continuously licensed, and removes the requirement of the insurance producer to provide the Director with certification of licensure from the new resident state within 30 days of receiving the new license. Requires a person who fails an examination for a limited line of authority four times within a twelve-month period to wait one year to be eligible to retake the exam and exempts any applicant for a limited line license from a pre-licensing examination. Replaces the five year examination requirement for each domestic life and disability reinsurer, service company and mechanical reimbursement reinsurer with a discretionary examination term. Removes the requirement of a bail bond agent to hold a property producer’s license in order to transact specific civil bonds on behalf of a surety insurer. Allows surplus lines brokers to submit reports on a semiannual basis rather than a quarterly basis with the exception of multi-state transactions. Asserts that if a clearinghouse is established and the director of DOI enters into a multistate agreement or compact, each surplus lines broker is required to file a quarterly report with the clearinghouse, and permits the DOI to require non- licensee applicants to submit a full set of fingerprints.
ARS Titles Affected:

20 First sponsor: Rep. Lovas
Signed by the Governor. Effective on July 24, 2014.

 


H2196 (C
HAPTER 5): ELECTION LAW AMENDMENTS; REPEAL  

 

Summary: Repeals Laws 2013, Chapter 209, which made numerous changes relating to election law, including modifying requirements for initiative, referendum and recall petitions, petition circulators, and signature sheets; modifying the number of signatures required to qualify for the ballot for various elected offices; requiring voters on the permanent early voting list (PEVL) who did not vote an early ballot in both the primary and general election for the two most recent general elections for federal office to confirm with the county in order to remain on the PEVL; and allowing voters to designate any person to return an early ballot.

ARS    Titles    Affected: 

   16 First sponsor: Rep. E. Farnsworth                       

Signed by the Governor. Effective on July 24, 2014.

 

H2221 (CHAPTER 52): WORKERS’ COMP; CONTROLLED SUBSTANCES

 

Summary: Modifies requirements for the use of a narcotic or opium-based controlled substance for injuries covered by workers’ compensation, including requiring the medication  to demonstrate “clinically meaningful improvement in function” (defined). Requires physicians to report various results and steps of prescription use and monitoring to the carrier, self-insured employer or Industrial Commission and specifies procedures for noncompliance by a physician. A workers’ compensation insurance carrier, self-insured employer or claims processing representative is not responsible for payment of any workers’ compensation benefits unless the billings are received and any court action for the payment of the billings is commenced within 24 months from the date the service was rendered. Previously, a court action for the payment was not considered. A subsequent billing or corrective billing does not restart the limitations period. ARS Titles Affected: 23

First sponsor:

Rep. Fann

Signed by the Governor. Effective on July 24, 2014.

 

H2283 (CHAPTER 139):  TPT; POSTMARK; FILING BY MAIL

 

Summary: Considers property tax mailings without an official United States Post Office postmark, excluding petitions or notices of appeal, to be timely if they are received within 5 days of the deadline.

ARS Titles Affected:

1 First sponsor: Rep. Lesko        

Signed by the Governor. Effective on January 1, 2015.

 

H2286 (CHAPTER 140): SENIOR FACILITIES; BOND APPROVAL

 

Summary: Authorizes reviewing entities to collaborate in the review process of projects relating to certain senior facilities and exempts such facilities from the Arizona Department of Housing’s (Department) approve requirement and authorizes a reviewing entity to share information, coordinate review schedules, or jointly conduct reviews with another reviewing entity in connection with a project. Allows a reviewing entity to adopt, in whole or in part, substantially similar review work of another reviewing entity provided that the review work of the other reviewing entity meets its standards for reviewing the work States that a reviewing entity that adopts, in whole or in part, review work completed by another reviewing entity is considered to have complied with its review responsibilities as if it has performed the review work and exempts certain types of senior facilities that are owned and operated.

ARS Titles Affected:

35 First sponsor: Rep. Lesko        

Signed by the Governor. Effective on July 24, 2014.

 

H2287 (CHAPTER 205):  COUNTY TREASURER; LIEN; SALE

 

Summary: Allows a county sheriff to auction certain property to the highest bidder, requires the county treasurer to be a named party in property litigation, and suspends a civil penalty for misclassification of property when ownership has changed between the time of notice and penalty.

ARS Titles Affected:

40 42 First sponsor: Rep. Lesko        

Signed by the Governor. Effective on July 24, 2014.

 

H2306 (CHAPTER 56): FINGERPRINT CLEARANCE CARDS; PERIODIC CHECKS

 

Summary: Expands the list of offenses which preclude a person from receiving a fingerprint clearance card and requires the Fingerprinting Division (Division) within the Arizona Department of Public Safety (DPS) to conduct periodic state background checks and allows the Division to conduct periodic federal background checks for fingerprint clearance cardholders. Adds “trafficking of persons for forced labor or services” to the list of offenses which preclude a person from receiving a regular or Level I fingerprint clearance card and requires, rather than allows, the Division to conduct periodic state  and federal criminal history checks.

ARS Titles Affected:

41 First sponsor: Rep. J. Pierce                       

Signed by the Governor. Effective on July 24, 2014.

 

H2321 (CHAPTER 145):  PROCUREMENT CODE OMNIBUS

 

Summary: Makes various changes to the Arizona Procurement Code, including exempting the Department of Gaming for problem gambling treatment services contracts with licensed behavioral health professionals, and exempting contracts for credit reporting services. State employees who have a “significant procurement role” are prohibited from accepting a position with or having employment discussions with the successful offeror and their lobbyists during a period beginning on signature of the first nondisclosure agreement for a solicitation or at the time of request for a procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins. The Director of the Department  of Administration is authorized to waive any or all of the waiting period in excess of 24 months. Beginning October 1, 2014, if an agency uses a qualified vendor list of persons or entities that  are eligible to be selected to design, develop, implement or construct any form of project associated with the list, any procurement officer who evaluated or approved the vendor list or  any employee having a significant procurement role in developing the vendor list is prohibited from accepting an offer of employment from or having employment discussions with a vendor  on the list within one year after the initial publication of the list or with a newly added vendor within one year after the vendor is added to the original list. These prohibitions do not apply to procurement officers or employees who in good faith rely on a determination issued by the Director that has not had a significant procurement role.

ARS Titles Affected:

41 First sponsor: Rep. J. Pierce                       

Signed by the Governor. Effective on July 24, 2014.

 

H2329 (CHAPTER 58): INSURANCE; NOTIFY; CANCELLATION; NONRENEWAL

 

Summary: Expands the methods through which insurers must notify policyholders of nonrenewal or cancellation of insurance policies by including them in the Arizona Electronic Transactions Act. Allows an insurer to provide a written notice of nonrenewal or cancellation to the insured by means of first class mail and permits the insurer to deliver a copy of the notice of cancellation to the insured’s agent by electronic delivery rather than mail. Requires the insurer to obtain proof of mailing when sending notices of nonrenewal or cancellation to the insured.

ARS  Titles  Affected: 

20 First sponsor: Rep. Livingston                       

Signed by the Governor. Effective on July 24, 2014.

 

H2598 (CHAPTER 100): BLANKET DISABILITY INSURANCE; SPECIAL GROUPS

 

Summary: The list of special groups of persons that may be covered by blanket disability insurance is expanded to include participants or volunteers of an incorporated or unincorporated religious, charitable, recreational, educational or civic organization with respect to activities sponsored by or on the premises of the organization; carriers for newspapers or other publishers; patrons or guests of a restaurant, hotel, resort or other group with a high degree of potential customer liability; holders, debtors or purchasers of a bank, financial vendor or other financial institution; and persons for whom travel-related services are provided by a travel agency.

ARS  Titles  Affected: 

20 First sponsor: Rep. Livingston

Signed by the Governor. Effective on July 24, 2014.

 

S1089 (CHAPTER 104):  INSURANCE HOLDING COMPANIES; ENTERPRISE RISK

 

Summary: Conforms Arizona statutes governing insurance holding company systems to standards established by the National Association of Insurance Commissioners and exempts the Department of Insurance from rulemaking requirements from two years after the effective date to implement the changes.

ARS  Titles  Affected: 

20 First sponsor: Sen. Yarbrough                       

Signed by the Governor. Effective on July 24, 2014.

 

Unenacted Bill Summaries

 

H2023 FINGERPRINT CLEARANCE CARDS; MANDATORY UPDATES

The Department of Public Safety Fingerprinting Division is required, instead of allowed, to conduct periodic state criminal history records checks to update clearance status of current fingerprint clearance card holders.

ARS Titles Affected:

41  First sponsor: Rep. Kavanagh

 

H2024: AGGRESSIVE SOLICITATION; OFFENSE

A person would have been prohibited from soliciting money or the sale of goods or services within 15 feet of a bank entrance or ATM, in any public transportation vehicle or within 10 feet of a bus stop, or in various situations involving making physical contact with or obstructing the passage of the person being solicited, or in a manner that is likely to cause a reasonable person to fear imminent bodily harm. Violations would have been a class 1 (highest) misdemeanor. Being present in a public place to beg would have been removed from the acts constituting loitering, a class 3 (mid-level) misdemeanor. AS VETOED BY GOVERNOR. Her veto message stated that it is unclear what statewide concern this legislation intends to address and that political subdivisions are in a better position to address this issue as it applies to their local community.

ARS  Titles  Affected: 

13 First sponsor: Rep. Kavanagh                       

 

H2040 WORKERS’ COMP; PHARMACY; PATIENT CHOICE

Injured employees have the right to select the pharmacy or pharmacist for dispensing and filling prescriptions for medicines required for injuries treated using workers’ compensation benefits. Employees of self-insured employers or employers that are part of a self-insurance pool are exempt.

ARS Titles Affected:

23 First sponsor: Rep. Allen

 

H2108 VEHICLE TITLE WITHOUT REGISTRATION; TRAILERS

The Department of Transportation is required, rather than permitted, to issue a vehicle certificate of title without registration for specified reasons. The list of reasons for which a title without registration must be issued is expanded to include that the vehicle is a trailer or semitrailer that will be used in interstate commerce and registered in another state.

ARS Titles Affected:

28 First sponsor: Rep. Fann

 

H2131 HIRING PRACTICES; CRIMINAL HISTORY; LIMITATION

Employers are prohibited from inquiring, considering or requiring disclosure of the criminal conviction record of an applicant for employment during the hiring process unless it has a direct relationship to the employment position, is only for the period of the ten most recent consecutive years, and takes place after the applicant has received a conditional offer of employment. Does not apply to positions that require a valid fingerprint clearance card.

ARS Titles Affected:

23 First sponsor: Rep. Quezada

 

H2147 VETERANS; HIRING; TAX CREDIT

For tax years 2014 through 2016, an individual and corporate income tax credit of up to $4,000 is established for a taxpayer who hires an employee who is a veteran of the U.S. armed forces and who is collected unemployment benefits at the time of hiring, if the employee’s compensation is at least equal to the median annual wage in Arizona. The amount of the credit is the lowest of either 10 percent of the employee’s salary, $2,000 for an employee, or $4,000 for an employee with a specified disability. If the amount of the credit exceeds taxes due, the taxpayer may carry forward the unused amount for up to five consecutive taxable years. The credit is allowed only for the first year or partial year of employment and is not allowed for a taxpayer if the employee hired is a “relative” (defined) of the taxpayer or a person who has an ownership interest in the taxpayer. Self-repeals January 1, 2017.

ARS Titles Affected:

43 First sponsor: Rep. Borrelli

 

H2174 INCOME TAX; HEALTH CARE DEDUCTION

For tax year 2014, the list of subtractions from Arizona gross income for income tax purposes is expanded to include the amount paid as a federal tax penalty for failing to timely purchase health care insurance as required by the federal Patient Protection and Affordable Care Act.

ARS Titles Affected:

43  First sponsor: Rep. Kwasman

 

H2175 PROPERTY TAX DELINQUENCIES; INTEREST RATE

The interest rate on delinquent property taxes is reduced to 10 percent per year simple, from 16 percent per year simple, until paid.

ARS Titles Affected:

42  First sponsor: Rep. Kwasman

 

H2210 DEPT OF FINANCIAL INSTITUTIONS; EXAMINATIONS

Department of Financial Institution examination of financial institutions and enterprises is required to verify that all products and services offered by the institution or enterprise conform to federal and state law.

ARS     Titles     Affected:    

6 First sponsor: Rep. McCune Davis

 

H2211 THIRD PARTIES; AUTO TITLE LENDERS

An authorized third party and a person who conducts secondary motor vehicle finance transactions are prohibited from conducting business within the same office space.

ARS  Titles  Affected: 

28  44 First sponsor: Rep. McCune Davis

 

H2214 UNIFORM TRANSFERS TO MINORS; AGE

For the purpose of the uniform transfers to minors act, “adult” is defined as a person who is at least 18 years of age, decreased from 21 years of age, and “minor” is a person who is under 18 years of age.

ARS Titles Affected:

14  First sponsor: Rep. Sherwood

 

 

H2232 CALL CENTER RELOCATION; NOTICE; PENALTY

Employers intending to relocate a call center from Arizona to another state or a foreign country are required to notify the Department of Economic Security at least 120 days before the relocation. Violations are subject to a civil penalty of up to $10,000 for each day. The Dept is required to compile a semiannual list of all employers that relocate a call center to another state or a foreign country. These employers are not eligible for direct or indirect state grants or state guaranteed loans for five years, with some exceptions. Effective November 1, 2014.

ARS Titles Affected:

44 First sponsor: Rep. Larkin

 

H2245 VULNERABLE ADULTS; ASSET MISUSE; DAMAGES

The maximum amount of additional damages the court may award in a civil action brought by or on behalf of a vulnerable adult is increased to three times the amount of actual damages, from two times.

ARS Titles Affected:

46 First sponsor: Rep. Campbell

 

H2247 DISCLOSURES; LOBBYIST; GIFTS; PUBLIC OFFICERS

Lobbyists are prohibited from making an expenditure for a gift for a state officer or employee, and state officers and employees are prohibited from accepting a gift from a lobbyist. The exemptions for certain types of entertainment are deleted. Modifies expenditure reporting requirements for lobbyists, and expands the definition of “lobbying” to include attempting to influence legislation by communicating with the Governor or his/her staff. For the purpose of financial disclosures for public officers and candidates, the definition of “gift” is modified.

Additionally, public officer financial disclosure statements must be filed every six months, instead of annually, and the maximum amounts of compensation exempted from disclosure are reduced. Penalties for knowingly filing false or incomplete financial disclosures are increased. Financial disclosure statements must be filed electronically, and the Secretary of State is required to provide computer programs to accommodate electronic filings.

ARS Titles Affected:

38 41 First sponsor: Rep. Campbell

 

H2248 INDEPENDENT EXPENDITURES; CONTRIBUTIONS; CORPS; UNIONS

Any corporation, limited liability company or labor organization that receives a campaign contribution is required to disclose that contribution on a campaign finance report. Any person who knowingly fails to file a required report relating to an independent expenditure is guilty of a class 1 (highest) misdemeanor.

ARS Titles Affected:

16 First sponsor: Rep. Campbell

 

H2259 STATE CONTRACTS; PREFERENCE; AZ BUSINESSES

The Department of Administration is required to adopt rules to grant preference to businesses headquartered in this state in awarding procurement contracts for materials, services or construction.

ARS Titles Affected:

41 First sponsor: Rep. Saldate

 

H2264: ARIZONA JOB FINANCE BONDS 

Corporations organized as an industrial development authority are authorized to issue “jobs bonds” (defined) to finance or refinance any “jobs project” (defined) costs or to refund any outstanding jobs bonds. The bonds must be authorized by resolution of the corporation and may be sold by public or private sale at a price determined by the corporation in its sole discretion.

Jobs bonds are legal investments for all banks, trust companies and insurance companies in Arizona. Municipalities and counties are not liable for the payment of the principal or interest on any jobs bonds, and the credit or taxing power of a municipality or county cannot be pledged in connection with jobs bonds. Establishes criteria for demonstrating that a jobs project will create full-time private sector employment in Arizona in order to qualify for jobs bond financing.

Severability clause.

ARS Titles Affected:

35 First sponsor: Rep. Forese

 

H2275 MOBILE HOMES; ABANDONMENT; SALE

Circumstances under which a mobile home is considered abandoned are specified. A landlord has a lien on an abandoned mobile home until all monies due the landlord for the rental of the space are paid. Provides remedies for the landlord, including the eventual sale of the mobile home. Proceeds of the sale must be distributed first to pay costs of sale, then to satisfy the landlord’s lien, then to satisfy any record lienholder’s valid claims, then to the former owner of the mobile home.

ARS Titles Affected:

33 First sponsor: Rep. Forese

 

H2276: PREMIUM TAX REDUCTION 

The insurance premium tax rate is decreased from 2 percent to 1.9 percent in 2015, 1.8 percent in 2016, and 1.7 percent in 2017 and after.

ARS Titles Affected:

20 First sponsor: Rep. Forese        

 

H2308 TAX EXEMPTION; VETERANS; MILITARY PENSIONS

The list of subtractions from Arizona adjusted gross income is expanded to include the full amount received as retired or retainer pay of the uniformed services of the U.S. by a taxpayer who is an honorably discharged veteran.

ARS Titles Affected:

43 First sponsor: Rep. J. Pierce

 

H2327: MOTOR VEHICLE INSURANCE; EXCLUSION 

For the purpose of cancellation or nonrenewal of motor vehicle insurance, any motor vehicle principally garaged outside this state is excluded from the definition of “motor vehicle.”

ARS  Titles  Affected: 

20 First sponsor: Rep. Livingston

 

H2339: FIREARMS; PERMIT HOLDERS; PUBLIC PLACES

It would not have been considered misconduct involving weapons to carry a deadly weapon at a public establishment or event if the person possessed a valid concealed weapons permit. Would not have applied to public establishments or events that had security personnel and electronic weapons screening devices and that required each person carrying a deadly weapon to leave it in possession of the security personnel while the person was in the establishment or event. Would not have applied to an “educational institution” (defined elsewhere in statute), community colleges, public universities, or the licensed premises of any public establishment with a liquor license. AS VETOED BY GOVERNOR. Her veto message stated that she vetoed similar measures in 2011 and 2012 and the majority of her concerns were not address in this bill, and that she is concerned about the unfunded mandate this bill establishes on state and local governments, which is an unnecessary diversion of limited resources.

ARS Titles Affected:

13 First sponsor: Rep. Barton

 

H2360 DESIGN PROFESSIONALS; PAYMENTS

For the purpose of licensed contractor regulations, the definition of “subcontractor” is expanded to include a “design professional” (defined) providing design professional services in connection with a construction contract or a “design professional service contract” (defined). Statutes regulating progress payments by owner, performance and payment by contractor or subcontractor, and contract suspension and termination are expanded to include design professionals in addition to contractors.

ARS Titles Affected:

32 First sponsor: Rep. Fann

 

H2361 WORKERS’ COMP; PROVIDER PAYMENTS; LIMITATIONS

A workers’ compensation insurance carrier, self-insured employer or claims processing representative is not responsible for payment of any workers’ compensation benefits unless the billings are received and any court action for the payment of the billings is commenced within 24 months from the date the service was rendered. Previously, a court action for the payment was not considered. A subsequent billing or corrective billing does not restart the limitations period. ARS Titles Affected: 23

First sponsor: Rep. Fann

 

H2380: OPTOMETRISTS; PHARMECEUTICAL AGENTS  

Board of Optometry licensees are authorized to prescribe, dispense and administer anti- infectives, agents for the treatment of angle-closure glaucoma, steroids in an amount that does not exceed the amount packaged for a single course of therapy of up to seven days, and any controlled substance that is an analgesic that is reclassified from schedule III to schedule II after January 1, 2014. Limits on the length of time licensees may prescribe antibiotics, antivirals, antihistamines and nonsteroidal anti-inflammatory agents are deleted. Licensees are prohibited from prescribing, dispensing or administering an oral pharmaceutical on a controlled substance to a person who is under six years of age.

ARS Titles Affected:

32 First sponsor: Rep. Olson

 

H2413 SCHOOLS; BONDING LEVEL INCREASE; REPEAL

Repeals session law passed in 2011 that increased the limitation on bonded indebtedness for common or union high school districts to 10 percent of the district’s net assessed valuation (NAV) and for unified school districts to 20 percent of the NAV for any bonds approved before April 15, 2011.

ARS Titles Affected:

13 First sponsor: Rep. Stevens

 

H2416 UNCLAIMED PERSONAL PROPERTY; DONATION

A municipality must retain unclaimed personal property in its custody for at least 100 days, increased from 90 days, before donating the property to nonprofit charitable organizations. ARS Titles Affected:

First sponsor: Rep. Stevens

 

H2432 TAX CREDIT; INSURANCE; INVESTMENT FUND

Establishes an insurance premium tax credit for investments by the insurer in the newly established Technology Business Investment Fund, to be administered by the Arizona Commerce authority to make investments in technology businesses headquartered in Arizona. If the amount of the credit exceeds tax liability, the amount not used to offset the tax may be carried forward as a tax credit for up to 15 tax years. The credits must be approved by the Authority, and the maximum amounts of credits the Authority may approve are specified.

ARS Titles Affected:

20 41 First sponsor: Rep. Thorpe

 

H2455 WORKERS’ COMPENSATION INSURANCE; CLAIM PROCESSING

The remedies specified in statute are the sole and exclusive administrative and judicial remedies available for all complaints and causes of action arising out of workers’ compensation claim processing. In order to award a claimant a benefit penalty, the Industrial Commission must find that the claimant sustained economic damage or greater permanent disability as a result of the wrongful claim processing. Establishes civil penalties that the Commission may impose in cases of wrongful claim processing, and factors the Commission must consider in assessing an appropriate penalty.

ARS    Titles    Affected:  

  23 \First sponsor: Rep. E. Farnsworth

H2464 CAPITAL GAINS; TAX; PHASE OUT

The following amounts of capital gain included in federal adjusted gross income are subtracted from Arizona individual and corporate income taxes: 40 percent of net capital gain in tax year 2016, 55 percent in tax year 2017, 70 percent in tax year 2018, 85 percent in tax year 2019, and 100 percent beginning in tax year 2020.

ARS Titles Affected:

43 First sponsor: Rep. Mesnard

 

H2468 CAMPAIGNS; INDEPENDENT EXPEND; COORDINATED COMMUNICATIONS

For the purpose of campaign finance regulations, an expenditure is not an independent expenditure if it would constitute a coordinated communication as defined in federal law. Deletes a list of circumstances that were previously used to determine that an expenditure was not an independent expenditure.

ARS Titles Affected:

16 First sponsor: Rep. Mesnard

 

H2484 LOBBYISTS; FALSE OR UNAUTHORIZED INFORMATION

Lobbyists are prohibited from providing information to any public official pertaining to any legislative or administrative action knowing or having reason to know that the information is false. Lobbyists that represent a political subdivision are prohibited from providing information to any public official or state employee in support of or in opposition to any legislative or administrative action without receiving prior approval from the political subdivision’s governing body by majority vote in a public meeting. Violations are a class 1 misdemeanor and are subject to a civil penalty equal to the total amount of compensation paid to the lobbyist by the principal or public body on whose behalf the false or unauthorized information was provided. A lobbyist convicted of a violating is prohibited from acting as a lobbyist for three years.

ARS Titles Affected:

41 First sponsor: Rep. Petersen

 

H2519 AFFORDABLE HOUSING PROJECTS; TAX ASSESSMENT

A parcel of “affordable housing” (defined) property must be valued not at market value but at a value that reflects legal restrictions on its use, transferability and below-market sales price and limited profit margin under the applicable municipal affordable housing program. The Department of Revenue is required to prescribe uniform rules, procedures and formulas for determining and fixing valuation for affordable housing.

ARS Titles Affected:

42 First sponsor: Rep. Mendez

 

H2524 HOUSING TRUST FUND; UNCLAIMED PROPERTY

The amount of proceeds from the sale of abandoned property that are deposited in the Housing Trust Fund each fiscal year is changed to 55 percent of the proceeds, instead of $2.5 million.

ARS Titles Affected:

44 First sponsor: Rep. Alston

 

H2566 PROCUREMENT; EVIDENCE; ADMIN APPEALS

At a hearing for an appealable agency action, the administrative law judge is required to allow the protesting party to present evidence to rebut the defense of the intervenors or the findings of the chief procurement officer.

ARS Titles Affected:

41 First sponsor: Rep. J. Pierce

 

H2569 AUTO TITLE LOANS; MILITARY MEMBERS

For secondary motor vehicle finance transactions, a violation of the federal John Warner National Defense Authorization Act for FY2007 or any regulation adopted under that Act is a violation of state regulations relating to auto title loans.

ARS   Titles   Affected:  

6   44 First sponsor: Rep. McCune Davis

 

H2586 CORPORATE TAX CREDITS; ANNUAL REPORTING

Beginning January 1, 2015, the Department of Revenue is required to annually report to the Governor and the Legislature specified information on corporate tax credits for any corporation that claims aggregate credits in any taxable year of $5,000 or more. The Dept is authorized to disclose confidential taxpayer information for this purpose.

ARS Titles Affected:

41 42 First sponsor: Rep. Mitchell

 

H2589 NOTICES; CONSTRUCTION LIENS; ONLINE REGISTRY

The Registrar of Contractors (ROC) is required to oversee the establishment, operation and maintenance of an online registry for purposes of receiving and providing notice of and access to preliminary 20-day notices and notices of completion that are filed for mechanics’ and materialmen’s liens. The ROC is required to contract with a third party for the registry. The third- party is authorized to collect a fee from each person filing. Requirements for the registry are specified, including public accessibility, an index and notification for the person filing. Modifies the information that must be included in preliminary 20-day notices and notices of completion that are filed for mechanics’ and materialmen’s liens. More. Changes to statutes governing the liens and lien filings become effective January 1, 2016.

ARS Titles Affected:

32 33 34 First sponsor: Rep. Fann

 

H2604 MILITARY MEMBERS; AUTO TITLE LOANS

For secondary motor vehicle finance transactions, a violation of the federal John Warner National Defense Authorization Act for FY2007 or any regulation adopted under that Act is a violation of state regulations relating to auto title loans.

ARS Titles Affected:

6 44 First sponsor: Rep. Borrelli

 

H2613 SURVEILLANCE DEVICES; LIMITATIONS; VIOLATION

It is criminal trespass in the third degree, a class 3 (mid-level) misdemeanor, to knowingly use a mobile surveillance device to observe individuals or private property without permission. A government agency or law enforcement officer is prohibited from using a “mobile surveillance device” (defined) to observe individuals or private property without permission, except pursuant to a search warrant or during a state of emergency.

ARS Titles Affected:

13 41 First sponsor: Rep. Thorpe

 

H2621 TASK FORCE; GAS TAX REPLACEMENT

Establishes a 24-member Highway User Fee Replacement Task Force to develop a design for revenue collection for the state’s transportation system that will replace the motor fuel tax and use fuel tax. The Task Force is required to design pilot programs to be used to test alternative approaches by December 15, 2015. By October 1, 2016, the Department of Transportation is required to develop and implement pilot programs as directed by the Task Force to test alternatives to motor vehicle fuel taxes and use fuel taxes to pay for highway use. The Dept is authorized to use monies in the State Highway Fund to implement and support the Task Force and pilot programs.

ARS Titles Affected:

33 First sponsor: Rep. Orr

 

H2630 GOVERNMENT PROCUREMENT; AMERICAN PRODUCTS

In the procurement of goods or services, state agencies, counties and municipalities are required to purchase items manufactured or derived from the United States.

ARS Titles Affected:

41 First sponsor: Rep. Campbell

 

H2633 PERSONAL PROPERTY EXEMPTIONS; MOTOR VEHICLE

In order for the maximum amount of equity in a motor vehicle that is exempt from process to be increased to $12,000 due to the debtor or debtor’s dependent being physically disabled, the motor vehicle must be necessary to accommodate the disability. Otherwise, the exemption of up to $6,000 for equity in one motor vehicle applies. The use or ownership of a license plate or removable windshield placard bearing the international symbol of access does not presumptively demonstrate that the person is physically disabled for this exemption.

ARS Titles Affected:

33 First sponsor: Rep. Ugenti

 

H2646 VETERANS; HOME BUYERS; GRANTS; APPROP

The Department of Housing is authorized to issue a one-time $5,000 grant to an “Arizona veteran” (defined) who is a first-time home buyer and who is purchasing a home located in Arizona. Appropriates $1 million from the Housing Trust Fund in FY2014-15 to the Dept for the grants.

ARS Titles Affected:

41 First sponsor: Rep. Borrelli

 

H2653 MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS

For mortgages that secure loans that are originated beginning January 1, 2015, the prohibition on a lien of judgment in a foreclosure action extending to any other property of the judgment debtor in certain circumstances does not apply to a mortgage on property owned by a person engaged in the business of designing, constructing or selling dwellings, property that contains a dwelling that is not “substantially completed” (defined), or property that contains a dwelling that is not actually utilized as a dwelling.

ARS Titles Affected:

33 First sponsor: Rep. Forese

 

H2669 SECONDARY MOTOR VEHICLE FINANCE TRANSACTIONS

A person is prohibited from entering into a secondary motor vehicle finance transaction for a motor vehicle that is encumbered or subject to any lien. A person is prohibited from taking additional security or guaranty as a condition to entering into a secondary motor vehicle finance transaction. Any transaction in violation is void as to principal and all charges, and an act or practice in violation is an unlawful practice and is subject to enforcement and penalties under consumer fraud regulations. Secondary motor vehicle finance transactions are subject to a maximum finance charge of 36 percent a year, and the previous tiered maximum finance rates based on the original principal amount are deleted.

ARS    Titles    Affected:  

  44 First sponsor: Rep. McCune Davis

 

H2683 FORECLOSURE MEDIATION PROGRAM

A mandatory foreclosure mediation program is established in the Administrative Office of the Courts to address all issues of foreclosure, including modification and restructuring of the debt. For owner-occupied residences, no trust property may be sold until the mediation process has been satisfactorily completed.

ARS  Titles  Affected: 

33 First sponsor: Rep. Hernandez

 

H2696 PROCUREMENT; AZ BIDDER; PREFERENCE

For procurement contracts awarded by competitive sealed bid, Arizona bidders must be given preference over nonresident bidders if there are two or more low, responsive offers from responsible bidders that are identical in price.

ARS Titles Affected:

41 First sponsor: Rep. Clinco

 

HCM2011 URGING CONGRESS; GLASS-STEAGALL ACT

The Legislature urges the U.S. Congress to adopt the Return to Prudent Banking Act of 2013 and the 21st Century Glass-Steagall Act of 2013. The Secretary of State is directed to transmit copies of this memorial to the President of the U.S., the President of the U.S. Senate, the Speaker of the U.S. House, each member of Congress from Arizona and six other specified members of U.S. Congress.

ARS Titles Affected:

99 First sponsor: Rep. Peshlakai

 

S1022  DISCRIMINATION; ENFORCEMENT; DAMAGES

Increases the statute of limitations on filing employment discrimination charges to 2 years from 1 year. Allows the recovering party in unlawful employment practice cases to recover punitive or compensatory damages if specified conditions are met.

ARS Titles Affected:

41 First sponsor: Sen. Ableser

 

S1024  UNLAWFUL TERMINATION; FAMILY EMERGENCY

It is unlawful for an employer to terminate or threaten to terminate an employee for being notified by a school or law enforcement officer of an emergency regarding the employee’s child or for leaving work to attend to the child’s emergency, except in cases of excessive abuse of this protection.

ARS Titles Affected:

23 First sponsor: Sen. Ableser

 

S1026  RESIDENTIAL MORTGAGES; MORTGAGE BROKER DUTIES

Prescribes prohibited acts for mortgage brokers, including making a residential mortgage loan without verifying the borrower’s reasonable ability to pay or with the intent that the loan will not be repaid, making a residential mortgage loan that is of a lower investment grade than the borrower’s credit score indicates without informing the borrower, and influencing the independent judgment of an appraiser.

ARS Titles Affected:

6 First sponsor: Sen. Ableser

 

S1063: MISCONDUCT INVOLVING WEAPONS; FIREARM STORAGE  

It is not misconduct involving weapons to enter a public establishment or attend a public event while carrying a deadly weapon after a reasonable request by the operator or sponsor of the event to remove the weapon and place it in temporary and secure storage if the public establishment or event is not in full compliance with statutory firearm storage requirements.

ARS Titles Affected:

13 First sponsor: Sen. Murphy

 

S1069  DISCLOSURES; LOBBYISTS; SPECIAL EVENTS; GIFTS

Lobbyists are prohibited from making an expenditure for a gift for a state officer or employee, and state officers and employees are prohibited from accepting a gift from a lobbyist. The exemptions for certain types of special events and entertainment are deleted. For the purpose of financial disclosures for public officers and candidates, the definition of “gift” is modified.

ARS Titles Affected:

41 First sponsor: Sen. Ableser

 

S1096: LEGAL TENDER; ESCROW AGENTS  

Legal tender in Arizona consists of legal tender authorized by Congress, specie coin issued by the U.S. government, and any other “specie” (defined as coin or bullion having gold or silver content) that a court of competent jurisdiction rules to be within the scope of state authority to make a legal tender. A person cannot compel another person to tender or accept specie legal tender, except as expressly provided by contract. The exchange of one form of legal tender for another does not give rise to liability for any type of tax. Legal tender is money and is not subject to taxation or regulation as property other than money. The Attorney General is required to enforce this legislation without prejudice to an individual’s right of judicial action. Adds a new article to statute to authorizing licensed escrow agents to provide legal tender services, including exchanging money in one legal tender class for money in another legal tender class. In determining the amount of tax for specie legal tender, a taxpayer is required to use the most recent paper dollar London fixing price for the specie legal tender used by the purchaser. The Department of Revenue is required to prescribe by rule a method for determining the amount of tax due if the paper dollar London fixing price is not available for a particular day.

ARS Titles Affected:

6 42 First sponsor: Sen. Crandell

 

S1117  UNEMPLOYMENT INSURANCE; ELIGIBILITY; FULL-TIME STUDENTS

The Department of Economic Security is prohibited from presuming an individual is unavailable for work and disqualify the individual from receiving unemployment insurance benefits on the basis of the individual attending school as a full-time student.

ARS Titles Affected:

23 First sponsor: Sen. McGuire

 

S1119  HEALTH INSURANCE; INTERSTATE PURCHASE

Health and disability insurers that issue policies and hold a certificate of authority in another state are authorized to issue health or sickness insurance in Arizona, and a person is permitted to purchase a policy, if the insurer registers with and provides specified information to the Department of Insurance. Any policy issued under this authorization must meet the benefit requirements of other policies issued in the state where the insurer holds a certificate of authority. Circumstances under which the Dept may revoke an insurer’s registration are specified.

ARS Titles Affected:

20 First sponsor: Sen. S. Pierce

 

S1146  TAX CREDIT; ACCOUNTING SERVICES

For tax years 2015 through 2019, establishes an individual income tax credit for up to 50 percent of the amount of expenses for professional accounting or bookkeeping services incurred by a taxpayer who reports income or loss from a business operated or profession practiced as a sole proprietor on schedule C. The maximum amount of the credit is $500 per year.

ARS Titles Affected:

43 First sponsor: Sen. Farley

 

S1156  PROHIBITED ELECTRONIC DATA; METADATA COLLECTION

State agencies, political subdivisions and their employees and contractors are prohibited from providing assistance to any federal agency or complying with any federal law that purports to authorize the collection of electronic data or metadata of any person pursuant to any action that is not based on a warrant that “particularly describes” the person, place and thing to be searched or seized. The State Treasurer is prohibited from transferring any monies to a political subdivision in the fiscal year after a final judicial determination that the political subdivision adopted a rule or policy that intentionally violated this prohibition. An agent or employee in violation is deemed to have resigned and is forever after ineligible to hold any office of trust, honor or emolument under the laws of Arizona.

ARS Titles Affected:

41 First sponsor: Sen. Ward

 

S1176  CHANGE OF VENUE; GUARDIANSHIP

If a guardianship proceeding is brought in a county other than the one in which the incapacitated person resides and a member of the person’s family files a motion to transfer the proceeding to the county where the person resides, the court must order the action transferred. Admission to an institution in a county pursuant to a court order does not constitute residence in that county by that fact alone.

ARS Titles Affected:

14 First sponsor: Sen. Crandell

 

S1200  ELDERLY ASSISTANCE FUND; PUBLIC OUTREACH

Counties with 2 million persons or less are authorized to establish an Elderly Assistance Fund to reduce the primary school district taxes for “qualified individuals” (defined). (Counties with a population of more than 2 million persons are already required to establish a Fund.) The county treasurer is required to transfer any excess monies remaining in the Fund after reducing taxes to the county general fund. The county board of supervisors must use this money for outreach to inform the public of the availability of this and other similar programs.

ARS Titles Affected:

42 First sponsor: Sen. Burges

 

S1233  INFRASTRUCTURE FINANCING AUTH; TRANSPORTATION PROJECTS

Establishes the Arizona Infrastructure Financing Authority to provide direct loans and loan guarantees to facilitate infrastructure projects that are economically viable and of local or statewide significance. Establishes a board of directors and board powers and duties. Establishes requirements for loan or loan guarantees and infrastructure projects. Authorizes the Authority to charge and collect an application fee or transaction fee.

ARS Titles Affected:

28 First sponsor: Sen. Farley

 

S1245  STATE-OWNED BANK TASK FORCE; APPROP

Establishes a 10-member State-owned Bank Task Force within the Arizona Commerce Authority to evaluate the feasibility of establishing a state-owned bank and submit a report to the Governor and the Legislature by December 1, 2014. Self-repeals October 1, 2015. Appropriates an unspecified amount (blank in original) from the general fund in FY2014-15 to the Authority to support the Task Force.

ARS  Titles  Affected: 

41  First sponsor: Sen. Dalessandro

 

S1263  FINANCIAL ABUSE OF ELDERS; REPORTS

A financial institution is required to report to the office of the Attorney General suspected financial abuse that targets or is committed against an elder if an officer or employee of a financial institution has a good faith suspicion that financial abuse has occurred. A person making a report that believes, in good faith, that the action is warranted is immune from civil or criminal liability.

ARS Titles Affected:

6 First sponsor: Sen. Farley

 

S1293: PUBLICITY PAMPHLETS; DISCLOSURE 

Municipalities and counties are required to include specified information in the publicity pamphlet for an election for a bond approval, sales tax levy or property tax levy. These requirements preempt all local laws and ordinances to the contrary. The information that must be included in the publicity pamphlet for school district budget override and bond elections is modified. The publicity pamphlet for an election for a bond approval or property tax levy for any special taxing district is required to include specified information. For ballot propositions that make statutory changes, a statement that if approved the measure can never be changed except by a 3/4 vote of the Legislature or by referring the change to the ballot must be included in the publicity pamphlet printed by the Secretary of State and on any advertisement or literature to support or oppose the measure. Severability clause.

ARS Titles Affected:

9 11 15 35 48 First sponsor: Sen. Griffin

 

S1334  HOAS; HEARINGS; ATTORNEY FEES

Attorney fees cannot be awarded in an administrative hearing for a dispute between an owner and a homeowners’ association or condo association.

ARS Titles Affected:

12 41 First sponsor: Sen. Griffin

 

S1408: MONEY TRANSMITTERS; MONEY LAUNDERING; DEFINITIONS 

Updates references to federal law in statutes regulating money transmitters and prohibiting money laundering.

ARS Titles Affected:

6 13 First sponsor: Sen. Murphy

 

S1412: ACCELERATED DEPRECIATION; CLASS 6 PROPERTY  

The accelerated depreciation schedule for certain class 1 and class 2 property also applies to personal property that is acquired during or after tax year 2014 and is initially classified during or after tax year 2015 as class 6 property. Beginning in valuation year 2015, the Department of Revenue is required to reduce the minimum value prescribed for class 6 property valued by the county assessor by 2.5 percent good each year.

ARS  Titles  Affected: 

42 First sponsor: Sen. Yarbrough

 

S1443  EMPLOYMENT DISCRIMINATION; PROHIBITION

The list of attributes for which a person cannot be discriminated against in employment practices is expanded to include gender, gender identity or expression or sexual orientation. A religious institution is allowed to take certain actions on the basis of gender, gender identity or expression or sexual orientation if the employee’s position is directly related to the religious functions of the organization.

ARS Titles Affected:

41 First sponsor: Sen. Gallardo

 

S1472  FIRE DISTRICT ASSISTANCE TAX; LIMIT

For FY2014-15, the maximum fire district assistance tax is increased to $3.50 per $100 of assessed valuation, from $3.25. Beginning in FY2015-16 and each succeeding FY, the tax rate must be increased by two percent annually.

ARS Titles Affected:

48 First sponsor: Sen. Driggs

 

S1475  CONTRACTOR LICENSING EXEMPTIONS; PROPERTY OWNERS

The exemption from licensed contractor regulations for property owners who improve that property and who do the work themselves applies if the structure is not intended for occupancy solely by the owner or if the structure is intended for sale or for rent.

ARS    Titles    Affected:  

  32 First sponsor: Sen. D. Farnsworth

 

S1477  BUSINESS LICENSES; EXPIRATION; NOTIFICATION

At least 30 days before the expiration of a state-issued license, certification or registration that enables a person to engage in a business practice or profession in Arizona, the issuing agency is required to provide written notice of the upcoming expiration to any holder of the license, certificate or registration that makes a written request for the notice. If an issuing agency fails to provide the notice, penalties and fees cannot be imposed against the person if the license, certification or registration expires.

ARS Titles Affected:

41 First sponsor: Sen. Griffin

 

SCR1011 INFORMATIONAL PRIVACY; CONSTITUTIONAL AMENDMENT

The 2014 general election ballot is to carry the question of whether to amend the state Constitution to prohibit a person’s personal information from being obtained or disclosed without authority of law, and to establish that the state has the burden of proving that its collection or use of personal information would advance a legitimate state interest and that the action is narrowly tailored to meet that interest.

ARS Titles Affected:

98 First sponsor: Sen. Shooter