Legislative Update – Bills Signed by Governor Ducey as of June 1, 2019

Arizona State Capitol - Mario Recchia

The Arizona Legislature adjourned Sine Die (without a day (Latin)) on May 28, 2019 at 12:58am. In Arizona, the General Effective Date of legislation passed this session will be August 27, 2019, but some laws may have specific effective dates. Check the specific legislation to determine if the effective date is August 27th or another specified date. This is not a complete list of all new laws, just the ones I thought would be of interest to most members.

The Governor still has several days to sign legislation transmitted to him in the past few days. In Arizona, the Governor may sign a bill, veto a bill or allow a bill to become law without signature. You may check bill status and bills signed into law at www.azleg.gov.

Listen to the Podcast review of these bills at www.wemargad.org.

As of June 1st, here are the bills Governor Ducey signed into law:

SJR 1001/HJR 2002: Colorado River Drought Contingency Plan

SB 1227/HB 2545: Colorado River Drought Contingency amendments

SB 1348 – fireworks; retail sales; enforcement
Outlines changes to allowed fireworks for sale based on county population. Also outlines permissible consumer fireworks. Changes dates local municipalities and counties may or may not restrict sales of fireworks. Effective Date: Dec.31, 2020.

SB 1469 – agency consolidation; department of insurance
Consolidates the AATA (Arizona Automobile Theft Authority) within the Department of Insurance and establishes the Financial Institution Division within the department. Effective Date: June 30, 2020.

SB 1349 – family college savings program
Expands the definition of qualified higher education expenses to conform with the 2017 Federal Tax Cuts & Job Act. Qualified Withdrawal now includes withdrawals for tuition less than $10,000. Qualified Higher Education Expenses have been expanded to include purchase of computers, software, internet access, etc. Allows through 12/31/2025 up to $15,000 of a 529 account to roll over to an Achieving a Better Life Experience Act Account.

SB 1297 – genetic testing information; confidentiality; exceptions
Requires genetic testing and results an only be released per state and federal law including HIPAA privacy provisions.

SB 1154 – primary date; first August Tuesday
Modifies dates regarding election cycle. Requires county recorder to count all persons registered to vote on specific dates. Stipulates primary elections will be held on the first Tuesday in August beginning in 2020. Changes number of days prior to an election for calls for elections and candidate filings.

HB 2639 – timeshares; disclosures
Creates additional requirements as a part of timeshare purchase agreements and creates separate disclosure documents. Among the contract changes: rescission period extended to 10 days after execution of agreement, allows Attorney General to investigate and take action, etc. The disclosure document must contain: purchaser may cancel within 10 days with no penalty, statement telling purchaser he/she may be responsible to pay maintenance fees, taxes and other assessments, disclose timeshares are not investments, rights of purchaser to file complaint with AG, etc. Specifies other specific disclosures.

HB 2467 – committees; west basin water users
Establishes the Mohave County West Basin Water Users Study Committee and the La Paz County West Basin Water Users Study Committee. Will provide a report to ADWR, the Governor and both House of the State Legislature by December 21, 2021. Section is repealed as of June 30, 2022.

HB 2133 – voter registration; updates; internet address
Allows county recorders to include an internet address for revising voter registration information. Allows county recorder to forward revised information to another county recorder if the new address is outside that county.

HB 2123 – TPT; distribution; community college districts
Extends the 0.6% TPT (sales tax) created by Proposition 301. Changes the distribution of funds received.

HB 2672 – vacation rentals; short-term rentals; regulation
Operator must have a TPT license. Owner must provide local government owner’s information or owner’s designee. Allows municipalities and counties to impose civil penalties against property owner and inform DOR. Requires TPT license be listed on advertisements online, requires specific information be posted at property and online. Provides penalty amounts.

HB 2687 – condominiums; appraisals; termination
Adds requirements at least 30 days prior to terminating a condominium a board of directors in person meeting for presentation of notarized termination statements from at least 80% of owners. Directs association to hire independent appraiser to assess fair market value, make other provision for termination.

HB 2454 – municipal band tax; authorization; repeal
Repeals the statue allowing cities and towns to levy a tax to maintain and employ a municipal band.

SB 1534 – annuity disclosure; rules
Requires Department of Insurance to adopt rules regarding annuity disclosure. Annuity purchasers are required to be given certain disclosures and the buyer’s guide modeled after the National Association of Insurance Commissioners Annuity Disclosure Model Regulation.

SB 1483 – vulnerable adults; financial exploitation
Provides process by which a qualified individual may report a suspected or attempted financial exploitation of a vulnerable adult.

SB 1096 – health professionals data; repository
Establishes the Health Care Professional Workforce Data Repository. Requires DHS (Department of Health Services) to establish and maintain the workforce data base. Data can be released to a university for research purposes. The data is collected at initial or renewal of a license, registration or certification.

HB 2692 – state drink; lemonade
Establishes Lemonade as official state drink.

HB 2453 – land use plans; contents; aggregates
Requires Az Geological Survey to keep database on existing mines in Arizona and requires general plans of municipalities and counties to include mine information. Requires information on how to locate existing mines.

HB 2662 – zoning hearing; annexation; petition; testimony
Authorizes municipality to consider aggrieved party testimony at zoning hearing and stipulates an interested party in an annexation must be within the territory being annexed.

HB 2373 – tax corrections act of 2019
Provides several adjustments to Az income tax rules.

HB 2151 – satisfaction of judgment; justice courts
Requires prevailing party to file satisfaction of judgement within 40 days of receiving full payment. This provision is specific to Justice Court and Superior Court. Small Claims satisfaction of judgments must be filed within 30 days of receiving full payment.

SB 1531 – HOAs; costs; assessments
Requires condominium and planned community associations to provide a written notice of delinquency to member before collection. Delinquent amount to be determined on date the action is filed, lien for unpaid assessment is extinguished after 6 months unless proceedings to enforce the lien are begun within 6 months of when amount was due, association must notify member in writing of delinquent amount before beginning collection activity, etc. Other association and member responsibilities and rights are enumerated.

SB 1085 – association health plans; definitions; requirements
Establishes requirements for Association Health Plans. Aligns with Department of Labor rules. Delineates Path 1 and Path 2 associations. Az Department of Insurance must most information on the department’s website by January 1, 2020.

One note of caution, The DC Circuit Court struck down the Department of Labor’s final ruling under ERISA (Employee Retirement income Security Act of 1974) allowing an alternate pathway so that associations could offer health plans to their members. The two provisions of the DOL’s final ruling were:
1 – Whether the employers share a commonality of interest and
2 – Whether the employer members have control over both the association that sponsors the plan and the benefit plan itself.

The court further concluded that self employed people are not employees further making them ineligible under ERISA to take part in an association health plan. The case is New York v Department of Labor.

SB 1304 – mechanics liens; notice; applicability
Increases from 20% to 30% the estimated total price cannot exceed from the original notice of price before a preliminary 20-day notice is required. The 30% threshold is applicable Jan. 1, 2020.

SB 1094 – planned communities; applicability; recreational center
Planned community statues do not apply to some non profit corporations or unincorporated associations unless members elect in writing to be subject to those statues. Associations created prior to January 1, 1974 are not subject to the statues.

SB 1035 – insurance; small employers; continuation coverage
Redefines small employer as employer who employs at least one but fewer than 20 eligible employees for purposes of employer provided health care.

SB 1033 – property tax statements; mortgaged property
Requires the county treasurer to mail a statement of taxes due to the owner of mortgaged property and when requested send a copy to the lender.

HB 2425 – school tax credit; contributions
Expands the tax credit for public schools include capital items, school meal programs and student health care. Taxpayer credit for these items are for period between June 30, 2019 and June 30, 2022.

SB 1453 – affordable homeownership special plate
Establishes the Affordable Homeownership license plate and fund. ADOT must issue the new plate if by December 31, 2019 a person pays $32,000 for implementation. The person who pays the $32,000 will design the plate subject to ADOT approval. Establishes pricing for this special plate. Funds collected will be allocated by ADOT to specific charitable organizations.

SB 1442 – state fleet; neighborhood electric vehicles
Requires ADOA (Arizona Dept. of Administration) to purchase and assign neighborhood electric vehicles. Requires ADOA to purchase neighborhood electric vehicle before each new motor vehicle purchase. Defines Neighborhood Electric Vehicle.

HB 2452 – vehicle emissions program; remote inspections
Requires ADEQ (Arizona Dept. of Environmental Quality) to establish a pilot program to enter into contracts to construct and run vehicle emissions testing stations by Independent Contractors. Also changes law to allow early emissions inspections to comply with renewal laws.

SB 1537 – service providers; fingerprint card
Requires individuals providing services to juveniles or vulnerable adults to have a valid level one finger print clearance card.

HB 2485 – real property disclosure; solar; disposal
Changes to Affidavit of Disclosure. Line 13 now asks if property has solar energy devices, are they owned or leased, buyer advised to perform due diligence on device, replacement and disposal, instructs property owner to disclose leasing company name and phone number.

HB 2451 – real estate licensure; exceptions; rentals
Applies exemption from Az Real Estate Licensing for people accepting reservations or money for occupancies of dwelling units less than 31 days in a common interest development.

HB 2027 – online lodging marketplace; local taxation
Allows Dept. of Revenue to collect TPT levied by a local jurisdiction on an online lodging marketplace.

SB 1398 – miniature scooters; electric standup scooters
Grants electric standup scooter operators the same rights and duties as a bicyclist. Defines motorized skateboard, electric stand up scooter and electric miniature scooter.

HB 2443 – property disclosure affidavit; adjudication claim
Requires property disclosure affidavits to include information regarding whether or not the property or the water on the property is part of a lawsuit to determine use and priority of water rights. ADWR must maintain and make available a map of adjudicated areas on their website.

HB 2371 – real estate; licenses; applications
Sponsored by Ben Toma, WeMAR member. Provides a real estate licensee may use a nickname in advertising that is a derivative of their legal name or a nickname they are known by. Licensee must inform the Az DRE of the nickname.

HB 2132 – personal mobile cargo carrying devices
Allow personal mobile carrying devices to use sidewalks. The device must weigh less than 80 pounds, operate at a max speed of 12 miles and hour, uses a monitoring system designed to remain within 25 ft of owner, etc. Effective Sept. 1, 2020.

SB 1184 – schools; economics; personal financial management
Requires Arizona State Board of Education (SBE) to require at least one-half credit in economics to include financial literacy & personal financial management in order to graduate from high school. SBE can create a required separate personal finance course. Outlines course considerations for a high school economics class to include: Financial literacy or personal finance, economic reasoning, economic systems, exchange markets, the national economy and the global economy. Persons who earn a Grand Canyon Diploma are exempt from this requirement.

HB 2229 – cable licensing; video service providers
Establishes licensing and regulation requirements for Video Service Providers (VSP). Counties must issue a license no later than 45 days after filing date.

SB 1312 – bad checks; restitution payments
Requires person convicted of passing a bad check to pay restitution the Court instead of the County Attorney’s Office.

SB 1030 – remote online notarization; registration
Prescribes rules for online notary public, record keeping and instructs the Secretary of State to provide rules for remote online notarization by July 1, 2020.

HB 2445 – TPT; residential rentals; notice
This bill provides that cities must mail notices of newly established or increased TPT to each rental property licensee and to the rental property address at least 60 days prior to the effective date.

HB 2095 – agricultural property classification; water reduction
Sponsored by Representatives Dunn and Cook, this bill provides that agricultural land required to become inactive due to mandated reduction in water supply may maintain its agricultural designation.

HB 2054 – electronic wills; requirements
Modifies requirements for electronic wills and witnesses. Allows wills to be created and maintained in electronic record, allows electronic signatures and other requirements. Law applies retroactively to electronic wills created as of July 1, 2019.

HB 2464 – water infrastructure finance; municipal approval
Increases the population required for cities and towns to require an election to determine if it should enter into a financing agreement with WIFA (Water Infrastructure Finance Authority of Arizona). Cities and towns with populations exceeding 150,000 people must hold elections prior to entering into a finance agreement with WIFA (was 50,000 population).

HB 2112 – community property award; convicted spouse
Allows a person making court ordered payment following a divorce or legal separation to ask the court to alter the payment agreement if the person receiving payments is convicted and sentenced to at least 80 years or life in prison no matter when the when the conviction occurred.

HB 2023 – political signs; ballot measures; tampering
Changes the penalty period and what is included in removal, alteration, defacing or covering political material and signs.

SB 1333 – real estate appraisal
Redefines “standards of professional appraisal practice” as appraisal practice “promulgated by the Appraisal Standards Board of the Appraisal Foundation”. Modifies duties of Superintendent. Removes 60-day exception to removing an appraiser from appraisal panel without notification. Other changes included.

SB 1218 – beneficiary deeds; separate property; nonlapse
Provides that the real property interest transferred by a Beneficiary Deed is separate property and not community property. Also provides a Beneficiary Deed is void if the beneficiaries named in the Beneficiary Deed predecease the owner, unless provided otherwise.

SB 1072 – early voting centers; identification required
Requires elector to provide identification at any on-site early voting locations. Early voting centers must allow any voter in county to receive appropriate ballot on election day.

HB 2484 – HB2484 for SB1221 – irrigation grandfathered right; containerized plants
Provides that persons with grandfathered water rights to withdraw groundwater may use that water to water container plants. Requires separate measurement of groundwater used for irrigation and for containers.

SB 1003 – SB1003 for HB2273 – industrial hemp; licensing; effective date
Requires ADA (Arizona Dept. of Agriculture) to adopt rules for regulation of industrial hemp by May 31, 2019. Industrial hemp regulation becomes effective June 1, 2019.

HB 2569 – occupational licensing; reciprocity
Provides occupational and professional license and certificate reciprocity. Arizona regulating agency may impose Arizona Specifics testing requirement.

HB 2704 – underground storage tanks; process
Several changes made to process and penalties for UST’s (Underground Storage Tank). Specific action and costs for activities completed before ADEQ’s approval that are eligible for reimbursement. Corrective actions and costs before 2019, ADEQ must receive claim for reimbursement before 2020.

HB 2114 – county real estate; appraisals
Provides that County property for sale or lease must be appraised by a licensed appraiser. Minimum acceptable bid must be at least 90% of market value, allow the County Board of Supervisor to lease some properties without public auction.

These are a few of the many bills signed by the Governor. Remember to check www.azleg.gov to see other bills the Governor will be signing into law or allowing to become law without signature over the course of the next several days.