Arizona ‘s New Laws – March 29, 2021 Update

Arizona State Capitol - Mario Recchia

The Arizona State Legislature is a bit more than 70 days into the legislative session and currently there are 89 new laws passed by the Legislature and signed by the Governor.

New laws take effect 90 days after the legislative session, unless the bill stipulates a different effective date. Here are a few of the new laws I thought you might be interested in knowing more about:

HB 2321 – Qualified Facilities
This law modifies the amount of tax credits the ACA (Arizona Commerce Authority) can preapprove. It also extends to 2033 the requirement the State Treasurer pay TPT revenues collected form businesses under the prime contracting classification to the local jurisdictions up to 80% of the cost of public infrastructure improvements.

HB 2438 – Commerce Authority; Career Landscape Information
This new law directs the ACA to annually collect, compile and transmit career landscape information to each public high school and post the information on their website. The report must include the most in-demand jobs in Arizona, their starting salary and the required education to gain that job. Also included in the report is the cost for post secondary education and the median student loan debt incurred. This law become effective January 1, 2022.

HB 2441 – Water; Substitute Acreage
Provides criteria for a person to permanently retire acreage from irrigation and substitute an equal amount of acreage if the retired land was damaged by floor or has a limiting condition. Defines when someone can pursue substitution in an INA and in an AMA.

HB 2043 – Underground Storage Tanks; Performance Standards
Increases to 50% the threshold for installation of new UST (underground storage tank) piping to bring a UST into federal compliance.

SB 1056 – Energy; Water; Savings Accounts
Limits to 25 years the term of a financial agreement between a local government and an energy or water savings services company. Defines energy cost savings as one or both of: 1) estimated reduction in net fuel costs and/or 2) an estimate of net revenue increase due to use of certain facilities or equipment.

SB 1299 – Incorporation; Urbanized Areas
Modifies the requirements for a community to request incorporation at the County Board of Supervisors (BOS) including expressing intent to incorporate. Requires a map be submitted to the BOS with the request to incorporate and provides a member of the public may request a modification to the metes and bounds by providing alternatives. Other requirements are included including notification of HOAs.

SB 1442 – Hazardous Vegetation Removal; State Forester
Authorizes the State Forester to enter into agreements with agencies to remove hazardous vegetation from Arizona lands.

HB 2317 – Community Facilities Districts
States the use of the net premium associated by a general obligation bond. States the property tax levy may not exceed the annual payments of principal and interest. Allows if general obligation bonds of the CFD are sold above par, the amount of net premium may go to pay costs incurred in issuing the bonds. Also outlines compensation for a CFD board. This law was enacted under the emergency measure provision and became effective when the Governor signed it on March 18, 2021.

HB 2249 – State Lands; Leases; Renewal Applications
Describes the requirements for state trust land lease renewals via mail. Requires ADWR (Arizona Dept. of Water Resources) and the State Land Commissioner to develop a plan to create additional water storage facilities, above or below ground. A report must be issued on or before December 31, 2021. This section is repealed after December 31, 2023.

SB 1259 – Mobile Home Parks; Caregivers
Modifies the requirements surrounding caregiver services in mobile home parks. Persons with a disability may have one or more live-in caregivers. Live-in Caregivers does not need to be 18 years old or older. Landlords may not charge a fee for persons providing personal or supportive care services. The service provider/caregiver does not have tenant rights.

HB 2331 – Property Tax; Mobile Homes; Delinquency
Provides criteria for seizure and auction of mobile home without affidavit of affixture in order to collect delinquent personal property taxes.

HB 2056 – Water Conservation Notice; No Forfeiture
Allows the filing of a water conservation plan notice with the ability to refile the plan for up to 10 years. Exempts the water rights from being considered abandoned or forfeited.

HB 2041 – Groundwater Replenishment Reserves
Changes the formula used by CAGRD (Central Az Groundwater Replenishment District) to calculate required replenishment reserve.

SB 1274 – Assured Water Supply; Subdivisions
Allows a Pinal AMA water provider to retain the volume of water designated in its most recent designation of assured water supply without further hydrologic review. Allows developers to increase the number of lots in a housing subdivision. Inside the Pinal AMA there is a formula taking into account water recovered outside the area of impact of storage. Allows the ADWR Director to apply this law’s changes to other AMAs.

HB 2085 – Real Estate; Employees; Rent Collection
Allows an unlicensed individual to collect rent and fees as part of their job working for a licensed real estate broker or salesperson without a real estate license. Requires a person applying for an Arizona real estate license to pass an Arizona specific real estate exam.

SB 1049 – Insurance Omnibus
Makes changes to home warranty contracts, electronic records of insurers, FHL Banks (Federal Home Loan Banks), and insurer licensing. Requires a home warranty service contract to disclose preexisting conditions coverages.