Arizona’s New Laws – July 2021

Arizona State Capitol - Mario Recchia

The Arizona Legislature gaveled out of session on June 30, 2021 at 4:54pm. Below is an update of new Arizona Laws passed after March 2021. To see the March 2021 update go to the Arizona State section of this website.

The update below is provided by Liz Recchia, Government Affairs Director, and Steve Huffman. By clicking on the bill number you will be taken to the bill as it was transmitted and signed by the Governor. The general effective date of legislation is September 29, 2021. We have noted special effective dates when appropriate.

Wild Fire Prevention and Suppression
HB 2001 – Appropriates $75 million for emergency wildfire response efforts to include fire suppression personnel and equipment, post fire mitigation projects, funds for state and local sheltering efforts and wraparound services, financial assistance for landowners for emergency repairs from fire damage and local government assistance for fire suppression efforts. The bill also appropriates an additional $25 million for post fire mitigation efforts.

SB 1442 – Establishes a $25 million program to remove vegetation statewide to reduce the risk of future wildfires. This program trains inmates in vegetation removal to give them new job skills upon release from prison.

REALTOR®, Business and Professional Licensing Issues
SB 1377: civil liability; public health pandemic
This legislation provides liability protection from frivolous lawsuits for numerous professions including REALTORS® who were operating in good faith during the COVID-19 pandemic.
Provides that a person or provider acting in good faith is not liable for damage in a civil action should someone (guest, tenant, student, customer, etc.) become injured or die during a public health pandemic. For more details read the WeSERV GAD blog from April 2021.

SB 1310: special plates; cancer; real estate
Establishes a REALTOR® specialty license plate. Funds from this plate will support affordable housing efforts in Arizona.

HB 2120: timeshares; public reports; purchase contracts
States the timeshare public report must include a statement that the purchaser may cancel the purchase agreement by midnight of the 10th calendar day after execution of the agreement. Requires the timeshare interest reservation statement to be above the purchaser’s signature line.

HB 2319: license denial; prohibition; drug convictions
Provides that a State agency may not deny a person who has been convicted of a drug offense (here or in another jurisdiction) a license, permit, certificate, or approval to work in an occupation that person is otherwise qualified to work in. There are some exceptions. This section also includes the ability to obtain a provisional license.

SB 1149: occupational and professional licensure; notice
Requires the following statement be included with all license and certificate reciprocity applications and websites:
PURSUANT TO SECTION 32-4302, ARIZONA REVISED STATUTES, A PERSON SHALL BE GRANTED AN OCCUPATIONAL OR PROFESSIONAL LICENSE OR CERTIFICATE IF THE PERSON HAS BEEN LICENSED OR CERTIFIED IN ANOTHER STATE FOR AT LEAST TWELVE MONTHS, THE LICENSE OR CERTIFICATE IS IN THE SAME DISCIPLINE AND AT THE SAME PRACTICE LEVEL AS THE LICENSE OR CERTIFICATE FOR WHICH THE PERSON IS APPLYING IN THIS STATE AND THE PERSON MEETS OTHER CONDITIONS PRESCRIBED BY SECTION 32-4302, ARIZONA REVISED STATUTES.

HB 2045: Civil rights; amendments
Adds women who affected by childbirth, pregnancy, related medical conditions to those protected from employer discrimination. Aligns Arizona with Federal law.

HB 2545: contractor license numbers; advertising; exception
Provides that ROC numbers be placed on written estimates as well as bids and that broadcast, internet or billboard advertising may use an URL instead in its advertising if that URL directly links to a website with the licensee’s name and ROC number prominently displayed.

HB 2446: escrow accounts; manufactured homes; requirements
Moves 41-4030 c to a newly established section (41-4030.01). Dealer bond amount is increased to at least $150,000. Establishes trust and escrow account rules for dealers that also own mobile home parks. The department will audit dealer trust and escrow accounts at least once every 2 years. Purchasers of mobile homes, factory-built homes and manufactured homes may request an independent escrow account.

HB 2507: landlords; deceased tenants; pets
“Matthew’s Law” Adds the ability of a landlord to release a deceased or incapacitated tenant’s animal/s to the tenant’s authorized person and if the authorized person does not respond to the property owners request, to remove the animal to a shelter or boarding facility. In some cases, landlord may release the animal to a relative of the tenant.

HB 2770: mask mandates; business exception
Declares that businesses are not required to enforce mask mandates established by state or local jurisdictions.

SB 1447: military installation fund; property conveyance
Allows DEMA (Dept. of Emergency and Military Affairs) to sell real estate, property rights and infrastructure acquired in the military installation fund. Conveyance shall be to highest and most responsible bidder at a public sale. Property may also be leased at fair market rate. Monies received through the sale or lease process may be used by DEMA to further the programs to preserve military missions and installations. Senator Kerr authored this legislation and referred to it at our Visit with Legislators in 2019.

SB 1230: limited liability companies
Make changes to the 2019 LLC Act. LLC operating agreements cannot adversely affect the rights of non-members or managers. The LLC operating agreement cannot change already existing requirements for banking and insurance. Other changes to transfer of interest and Az Corporation Commission authority.

Rural Issues
SB 1453: community colleges; four-year degrees
This bill allows community colleges to offer four- year degrees to expand educational opportunities to every community in our state.

HB 2596: ADOT; telecommunications facilities installation
Allows ADOT to install telecommunications facilities, including fiber, during construction of roadways. Provides for just compensation process should a right-of-way be expanded for this purpose resulting in diminished property right of a private property owner. This expands broadband access, especially in rural communities, by giving broadband providers access to ADOT rights-of-way to install, operate and maintain telecommunications equipment.

HB 2454: telehealth; health care providers; requirements
Expands access to telehealth services to improve the quality of health care delivery in every community in our state. This was enacted under emergency provision and was active upon approval by the Governor – May 5, 2021

Election Issues
SB 1105: ballot measures; 200-word description
This expands the allowable description of a ballot measure on a petition from the current 100 word maximum to a 200 word maximum. This allows greater explanation of the issues being considered.

SB 1722: political signs; condominiums; planning communities
States that cities and towns may not remove, alter or cover a political sign within 71 days of a primary election (was 60 days). Extends a condo owners ability to display political signs to the patio/s touching the unit owned. Condo associations may prohibit political signs earlier than 71 days prior to a primary election, later than 15 days after the General Election, and signs for candidates that did not advance to the General Election 15 days after the primary.

SB 1104: campaign finance; contributions; disclosures; itemization
Mandates those contributions from in-state individuals of more than $100 in an election cycle must be included in a campaign finance report. Also mandates out of state contributors be reported along with their occupation and employer. Requires the aggregate amount of in-state contributions $100 or less for the election cycle be included in the report.

SB 1107: redistricting; petition signatures; 2022 candidates
Specifies the number of qualified signatures required to qualify for the ballot will be based on the number effective on January 2 of the general election year. States the Secretary of State shall accept nomination paper work for State Legislature or Congress that used any of the following: a candidate’s district as used in the 2020 elections, a candidate’s district as used in a redistricting plan adopted by the 2021 Redistricting Commission, or a district ordered for use in the 2022 election by a court. This law was passed as emergency legislation and becomes effective immediately upon the Governor’s signature (March 30, 2021).

SB 1432: political signs; removal date
Changes from 7 days to 15 days the time period after an election when removing, altering, defacing or covering a political sign is prohibited.

SB 1003: early voting; signature required; notice
Requires early voting ballot instructions state the ballot will not be counted without a voter’s signature on the envelope. Authorizes the County Recorder to contact the elector, advise them of the missing signature and allow them to sign the envelope no later than 7pm on election day.

Water and Natural Resources
SB 1147: water banking; storage credits; subcontractors
Allows the Arizona Water Banking Authority to distribute long term storage credits to the Central Arizona Water Conservation District. This will allow them to maintain a 100 year water supply during disruptions or reductions in Colorado River water.

SB 1366: remediated groundwater use; date; extension
Extends the deadline from 2025 to 2050 to allow the use of up to 65,000 acre feet of remediated water to be legally used and considered consistent with an active management area’s management goals.

HB 2078: groundwater; waterlogged area exemption
Extends the Buckeye Water District, Arlington Canal Company, and St. John’s Irrigation District conservation exemptions to 2034.

HB 2042: Aquifer protection permits; injection wells
Removes and changes some exemptions to Class V wells.

Private Property Rights
HB 2246: G&F; private lands; trespassing
Adds authorization must be obtained from a private landowner or lessee before a person can take wildlife off the property. Adds provisions for private landowners or lessees to prohibit hunting, fishing, trapping and guiding on their property with notices and signboards. Contains sign requirements.

SB 1065: state lands; partial tracts; patents
Removes the requirement that a patent deed may only be issued by the State Land Department on tracts of land they have sold that are larger than ¼ of the tract sold or more than 10 acres – whichever is smaller.

Taxation
HB 2391: county property tax; worksheet
Mandates that a County must make available a worksheet, available to the public and posted prominently on the County website, within 7 days of the County adopting property tax rates and levies.

HB 2025: delinquent property tax; interest; waiver
Provides that the County Board of Supervisors may approve the County Treasurer waive accrued interest and penalties on delinquent property taxes during the one year period after a mortgage or deed of trust has been released from the property.

SB 1734: agricultural property; reclassification; notice
Requires the County Assessor to notify, via certified mail, an agricultural property owner if the Assessor believes the property no longer qualifies for the agricultural use property tax designation. The notice must include the reason for the change of use decision. The property owner is allowed to appeal the decision.

HB 2376: class 2 property; guest ranches
Provides that guest ranches and their improvements be designated as Class 2 for property tax purposes. Defines what qualifies as a guest ranch and provides that the owner of the guest ranch file a deed restriction with the County Recorder for at least 10 years limiting use of the property to a guest ranch in order to qualify for the Class 2 designation.

SB 1076: low income multifamily housing; valuation
Add low income multifamily residential rental properties to allowed Class 4 property tax designation. Establishes definitions and income method process to establish designation.

Municipal Ordinances
SB 1601: municipal ordinances; penalties; notice
This provides that a City or Town must meet the state mandated notification requirements for rubbish/weed/debris removal. This also requires that the time to appeal has elapsed before imposing a fine for rubbish/weed/debris removal.

HB 2400: municipal ordinances; posting
This replaces the requirement that cities and towns post ordinances imposing penalties, fees, forfeiture or other punishment in 3 public places within the city or town. Establishes that cities and towns post these type ordinances at City or Town Hall, on the municipality’s website and provides for additional postings as needed.

SB 1645: publication of notice
States public notices by cities and towns must be published in a local newspaper or a in a newspaper published in the county with a large circulation of residents in the town or city.

SB 1409: zoning ordinances; property rights; costs
Before adopting a zoning ordinance, a city or town must consider the impact of the ordinance on the cost to construct housing for sale or rent.

Miscellaneous
SB 1802: holiday; code talkers
Establishes August 14th as National Navajo Code Talkers Day.

HB 2617: judgements; liens; homestead
Civil judgements that were valid on September 13, 2013 are exempt from writs of execution. Makes significant changes to the Homestead Exemption for judgment liens, partial release of liens, and prioritizes cash proceeds from refinance by paid back first to the judgement creditor at sale of a homestead property. Many other changes were made.

State Budget Bills
SB 1828: omnibus; taxation
Increases State aid to education to 50% beginning January 1, 2022. Increases weekly unemployment benefit to $320/week. Phases in a reduction in Class 1 property tax to 16%. Increases State revenue sharing with municipalities to 18%.
Creates a 2-tier personal income tax system:
For 2022 – 2.55% single/married filing separately with income of $27,272 or less or Married filing jointly/head of household with income less than $54,544. 2.98% for single/married filing separately with income more than $27,272 or Married filing jointly/head of household with income $54,544 or more.
For 2023 – 2.53% single/married filing separately with income $27,273 or more and married filing jointly/head of household with income $54,544 or more. 2.75% for single/married filing separately with income $27,273 or more and married filing jointly/head of household with an income $54,545 or more.
After that, DOR is to establish a 2.5% tax rate.
Established other changes and updates.

SB 1823: general appropriation act; 2021-2022
Lists the items State monies will be spent on and the amounts across State departments for the functioning of the State and State aid programs.

SB 1822: environment; budget reconciliation; 2021-2022
The 2021 budget appropriated $212 million for water infrastructure initiatives. $40 million is targeted to support the existing Water Supply Development Revolving Fund with another $12 million available to the Water Infrastructure Finance Authority to assist water providers and local governments with financing water projects. The bulk of the money, $160 million, went into the creation of a new Drought Mitigation Revolving Fund ( DMRF). A six member board is formed to fund efforts to reduce use of Colorado River water to head off statewide reductions expected in the future. The DMFR reserves up to $20 million for projects to reduce current usage of Colorado River water. The rest of the money is reserved for projects to import out of state water supplies such as water pipelines of desalination plants in California or Mexico.

SB 1820: capital outlay; appropriations; 2021-2022
This bill appropriates $90 million for pavement preservation projects for roads statewide outside Pima and Maricopa Counties that have a poor/fair rating. It appropriates an additional $50 million to continue widening I-10 between Phoenix and Casa Grande. It also funds:
• $4,700,000 to repave State Route 69 in Prescott Valley
• $10,000,000 to improve US Route 95 near Yuma Proving Ground
• $46,700,000 to repave State Route 95 in Mohave County
• $150,000 to study options for expanding ramps at the intersection of Grand Avenue and State Route 303
• $35,000,000 to study, complete a final design plan, secure right-of-way and easements and construct an overpass at Riggs Road and State Route 347
• $4,000,000 to study the north/south corridor in Pinal County
• $8,500,000 to improve drainage on 67th Avenue in Peoria
• $8,000,000 to widen Camelback Road between State Route 303 and Litchfield Road in Goodyear
• $700,000 for a study and design concept report for the repair of State Route 88
• $1,032,100 to repair and maintain 20th Avenue in Safford
• $5,000,000 to improve Tangerine Road near Interstate 10 in Marana
• $7,900,000 to construct a bridge and extend Ocotillo Road in Gilbert
• $3,500,000 to repair State Route 186 and State Business Route 10 in Wilcox
• $1,000,000 to replace Butte Avenue bridge in Florence
• $560,000 to improve Main Street in Jerome
• $13,600,000 to rehabilitate pavement along State Route 77 near Oro Valley
• $10,600,000 to improve State Route 90 near Fort Huachuca
• $750,000 to improve State Route 87 with a local match
• $140,000 to study guard rails and the shoulder of State Route 377 from Holbrook to Heber
• $1,169,400 to improve Hill Street Corridor in Globe

This is not a complete list of all the new laws in Arizona. If you would like to see a complete list, you may visit the Arizona State Legislature website.
Click on Bills.