THIS WEEK'S NEWS . . . FROM THE CAPITOL by fyx28874

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									                   THIS WEEK’S NEWS . . . FROM THE CAPITOL

                             Prepared by Lee Miller
                                      for
                       ARIZONA TRUSTEES ASSOCIATION
                                                February 8, 2008

                              Summary of Significant Arizona Legislation, 2008


>>SIGNIFIES NEW ADDITIONS TO THIS WEEK’S REPORT
                       Bill and Subject                                                           Status
HB 2002: EMPLOYMENT DISCRIMINATION;                                    1/14 Referred to House Judiciary Committee
PROHIBITION
The list of a person's preferences and characteristics on the basis
of which it is illegal for an employer to discriminate is expanded
to include "gender identity or expression" and sexual orientation.
Also, all instances of the word "sex" in the list (as in "religion,
sex, national origin") are changed to "gender." Religious
organizations are permitted to use gender, gender identity or
sexual orientation in employment/promotion decisions if the
position is directly related to the religious functions of the
organization or directly involved in teaching of students enrolled
in a school substantially supported or controlled by a religious
organization. Sponsors: Rep. Sinema & 2. ARS Title 41.
HB 2032: COUNTY TREASURERS; PROCEDURES                                 1/14 Referred to House Counties, Municipalities &
Makes minor changes to the statutory duties of the county              Affairs Committee
treasurer, including requiring written authorization from a person
designated by the board of supervisors before making an                Hearing;
electronic transfer of funds. (Previously, the authorization had to    House Counties, Municipalities & Military Affairs
have the signatures of both the chair of the board and the clerk of    Tuesday, February 12 at 1:30 pm, House Rm. 5
the board.) Sponsor: Rep. Konopnicki. ARS Titles 11, 42.
HB 2077: HOME INSPECTORS; RULES; STANDARDS                             1/14 Referred to House Commerce Committee
COMMITTEE                                                              2/6 Passed House Commerce Committee with amen
Language enumerating the qualifications for the three industry         #4064; ready for House Rules Committee
members of the Home Inspector Rules and Standards Committee
is changed to state that each candidate on a list submitted to the
Board of Technical Registration for selection must belong to a
home inspector organization of at least 75 (formerly 50) active
members. Sponsor: Rep. Konopnicki. ARS Title 32.




February 8, 2008                              Arizona Trustees Association                                 Page 1
                       Bill and Subject                                                            Status
HB 2079: ESCROW AGENTS; DISBURSEMENTS;                                 1/14 Referred to House Financial Institutions & Ins
LICENSE VERIFICATION                                                   Committee
Escrow agents must verify a mortgage broker or mortgage banker         2/5 Passed House Financial Institutions & Insuranc
is validly licensed in Arizona before disbursing monies to the         with amendment #4041; ready for House Rules Com
broker or banker from an escrow account. Sponsor: Rep.
Konopnicki. ARS Title 6.
HB 2081: INSURANCE; CAPTIVE INSURERS;                                  2/6 Referred to House Financial Institutions & Insu
AUTHORITY                                                              Committee
Captive insurers are not prohibited from directly insuring
employment practices liability risk. (Note: Captive insurance is a
form of self-insurance in which a company insures the risks of a
parent or of a group of businesses that formed the captive insurer
to handle the risk.) Sponsor: Rep. Konopnicki. ARS Title 20.
HB 2131: HOAS; REGISTRATION; DISCLOSURE                                1/14 Referred to House Homeland Security & Prop
Beginning January 1, 2009, each HOA for a condominium and              Committee
each HOA for a planned community shall register with the Real          1/29 Passed House Homeland Security & Property
Estate Department. Beginning March 1, 2009, the department             Committee with amendment #4016; ready for Hous
shall make information about these HOAs available to the public        Committee
by posting it on the department's website. Sponsors: Rep. Chad
Campbell & 5. ARS Titles 32, 33.
HB 2141: HOME SALES; WATER SUPPLY DISCLOSURE                           1/22 Referred to House Water & Agriculture, Envir
Real estate brokers or salespersons must provide buyers with a         Committees
notice of water supply status of the property. The disclosure must     2/4 House Environment Committee designated as p
state whether the water supply is assured, adequate, inadequate or     committee
unknown as designated by the Department of Water Resources.            2/6 Held in House Environment Committee
Sponsors: Rep. Ableser & 1. ARS Title 32.
HB 2142: PROPERTY; DISCLOSURE; WATER                                   1/22 Referred to House Water & Agriculture, Home
Real estate brokers or salespersons must disclose to buyers            Security & Property Rights Committees
whether the Department of Water Resources has issued a notice
of adequate or assured water supply for the property. Otherwise,
the seller must, as part of the sales transaction recorded with the
county recorder, file a notice that the DWR has not issued a
determination that the property has either an assured or adequate
water supply. Sponsors: Rep. Ableser & 1. ARS Title 33.
HB 2144: LAND DIVISIONS; WATER REQUIREMENTS                            1/22 Referred to House Water & Agriculture, Coun
A county or municipality shall not allow land divisions of 5 or        Municipalities & Military Affairs Committees
fewer lots, tracts or parcels without a water supply as determined
by statute. Sponsors: Rep. Ableser & 1. ARS Titles 9, 11.
HB 2221: COUNTY SUBDIVISIONS; NOTIFICATION                             1/22 Referred to House Homeland Security & Prop
If a reservation of an area within a subdivision for public use        Counties, Municipalities & Military Affairs Commi
terminates due to a public agency's failure to exercise the
reservation, the agency must notify the subdivider within 14 days      Hearing:
of the termination. Sponsor: Rep. Paton. ARS Title 11.                 House Homeland Security & Property Rights Com
                                                                       Monday, February 11 at 1:30 pm, House Rm. 1



February 8, 2008                              Arizona Trustees Association                                  Page 2
                       Bill and Subject                                                            Status
HB 2273: CONTRACTOR RETENTION                                           1/22 Referred to House Commerce Committee
The seven day period within which the owner of a construction
project must make final payment to the contractor (with certain         Hearing:
exceptions) is extended to 30 days. Further, contractors and            House Commerce Committee, Wednesday, Februa
subcontractors must make final payment to their subcontractors          am, House Rm. 5
or material suppliers within 30 days of providing an invoice for
work performed or material supplied. Sponsors: Rep. Reagan &
2. ARS Title 32.
HB 2306: ATTORNEY FEES; ZONING CHALLENGES                               1/22 Referred to House Judiciary, Commerce Comm
Permits attorney fees and costs to be awarded to a local
governmental entity in any civil action commenced by a big box
retailer to challenge the validity or application of an ordinance,
rule, regulation or initiative measure regulating zoning. Applies
to litigation filed or pending on or after January 1, 2009.
Sponsors: Rep. Sinema & 7. ARS Title 12.
HB 2307: LOCAL ENERGY CONSERVATION CODES                                1/22 Referred to House Counties, Municipalities &
Expands the definition of "code" for purposes of county and             Affairs, Government, Natural Resources & Public S
municipal building and safety codes to include "building energy         Committees
codes." Requires each county and municipality to establish
building energy codes. Sponsors: Rep. Sinema & 8. ARS Titles
9, 11.
HB 2316: HOMESTEAD EXEMPTION; EMANCIPATED                               1/22 Referred to House Homeland Security & Prop
MINORS                                                                  Ways & Means Committees
Emancipated minors may use the homestead exemption.
Sponsor: Rep. Nichols. ARS Title 33.                                    Hearing:
                                                                        House Homeland Security & Property Rights Com
                                                                        Monday, February 11 at 1:30 pm, House Rm. 1
HB 2321: IDENTITY THEFT; FACTUAL INNOCENCE                              1/22 Referred to House Judiciary Committee
A victim of identity theft whose name has been falsely associated
with criminal activity may petition the court for an expedited
judicial determination of the person's factual innocence. If a court
issues a determination of factual innocence, the court may order
personal information contained in court records to be deleted or
labeled to show that the information does not reflect the
convicted person’s true identity. Sponsors: Rep. Driggs & 11;
Sen. Aguirre. ARS Title 12.
HB 2341: EMPLOYEE VERIFICATION; BASIC PILOT
PROGRAM
Removes the mandatory language in the statute requiring
employers to use the basic pilot program to verify employment
eligibility. If a court finds that an employer intentionally or
knowingly employed an unauthorized alien, the employer, after
hiring the employee, shall verify the employment eligibility of the
employee through the basic pilot program. Sponsors: Rep.
Konopnicki & 1. ARS Title 23.


February 8, 2008                               Arizona Trustees Association                                 Page 3
                       Bill and Subject                                      Status
HB 2342: EMPLOYER SANCTIONS; INDEPENDENT
CONTRACTORS
An independent contractor is not an employee for purposes of the
employer sanctions statute. Adds a definition of "independent
contractor" to the definitions section of the employer sanctions
statute. Sponsors: Rep. Konopnicki & 2; Sen. Aguirre & 2. ARS
Title 23.
HB 2343: EMPLOYER SANCTIONS; COMPLAINTS
Requires complaints of violations of the employer sanctions
statute to be written, signed and certified and to contain
identifying information of the complainant. Prohibits the
Attorney General from investigating a complaint that is based
solely on religion, color, language, citizenship, nationality,
ethnicity or gender. Adds definitions of "false complaint" and
"frivolous complaint" to the definitions section of the employer
sanctions statute. Sponsors: Rep. Konopnicki & 2; Sen. Aguirre
& 4. ARS Title 23.
HB 2344: EMPLOYER SANCTIONS; JUDICIAL
FINDINGS
Makes several changes to the employer sanctions statute,
including: changes the definition of "knowingly employ an
unauthorized alien" for purposes of the employer sanctions
statute to "hire, employ or recruit a person and have actual or
constructive knowledge that the person is an unauthorized alien";
adds "pattern or practice" to the definitions section of the
employer sanctions statute; limits the definition of "license" for
purposes of the employer sanctions statute; requires the county
attorney to establish beyond a reasonable doubt that an employer
has intentionally employed an authorized alien (formerly,
preponderance of the evidence); and requires a second violation
to be based upon a judicial finding of a former violation
(formerly, an action being brought). More. Sponsors: Rep.
Konopnicki & 2; Sen. Aguirre & 2. ARS Title 23.
HB 2345: EMPLOYER SANCTIONS; ENFORCEMENT
Removes the authority of the attorney general to investigate
violations of the employer sanctions statute and to notify the
appropriate county attorney if a complaint is originally filed with
the attorney general. It is a class 3 misdemeanor (lowest) to
knowingly file a false complaint or a frivolous complaint
(formerly, the complaint had to be both false and frivolous).
Emergency clause. Sponsors: Rep. Konopnicki & 3; Sen.
Aguirre & 4. ARS Title 23.




February 8, 2008                              Arizona Trustees Association            Page 4
                       Bill and Subject                                                            Status
HB 2346: EMPLOYER SANCTIONS; HIRING
UNAUTHORIZED ALIENS
Makes it illegal to knowingly or intentionally hire (formerly,
employ) an unauthorized alien, eliminating the retroactive effect
of the employer sanctions statute. Sponsors: Rep. Konopnicki &
3; Sen. Aguirre & 3. ARS Title 23.
HB 2347: MORTGAGE LOAN FRAUD PROSECUTION                               1/23 Referred to House Financial Institutions & Ins
FUND                                                                   Commerce Committees
Establishes the Mortgage Loan Fraud Prosecution Fund to consist
of monies received from the surcharge of $1 collected at the time
of recording each deed of trust. Sunsets July 1, 2011. Due to the
increase in state revenue, this bill requires a 2/3 majority for
passage. Sponsors: Rep. Konopnicki & 6; Sen. Arzberger & 1.
ARS Titles 6, 11.
HB 2348: CEASE AND DESIST ORDERS; DISCLOSURE                           1/23 Referred to House Financial Institutions & Ins
A cease and desist order that relates to unlicensed activity issued    Committee
by the superintendent of the Department of Financial Institutions      2/5 Passed House Financial Institutions & Insuranc
shall be open to public inspection. Sponsors: Rep. Konopnicki &        ready for House Rules Committee
6; Sen. Arzberger & 1. ARS Title 6.
HB 2349: LOAN ORIGINATOR LICENSING                                     1/23 Referred to House Financial Institutions & Ins
Beginning January 1, 2010, loan originators (defined) shall be         Committee
licensed and regulated by statute. Makes numerous other changes        1/29 Passed House Financial Institutions & Insuran
to statutes related to licensing of mortgage brokers, including        Committee; ready for House Rules Committee
requiring brokers and other licensees who employ loan
originators to complete continuing education units. Makes an
appropriation (blank in original) from the Department of
Financial Institutions Receivership Revolving Fund in fiscal year
2008-2009 to implement the act. Fees received for the licensing
of loan originators shall be deposited in the Receivership
Revolving Fund to a maximum amount (left blank in original).
Due to the increase in state revenue, this bill requires a 2/3
majority for passage per Prop. 108. Sponsors: Rep. Konopnicki
& 6; Sen. Arzberger. ARS Title 6.
HB 2350: MORTGAGE BROKERS & BANKERS;
LICENSE RENEWALS
For mortgage broker or banker licenses approved after September
30, 2008, renewals are due by December 31, 2009 and each
subsequent year. Licenses not renewed by the deadline each year
are suspended and if renewed before January 31, the licensee
faces an added charge of $25 per day. Licenses not renewed by
the end of January expire, and the former licensee must reapply.
Provisions are included whereby licensees may request inactive
status. Retroactive to April 1, 2008. Sponsor: Rep. Konopnicki.
ARS Title 6.



February 8, 2008                              Arizona Trustees Association                                  Page 5
                        Bill and Subject                                                             Status
HB 2351: PROPERTY TAX LIEN INTEREST                                      1/24 Referred to House Ways & Means Committee
CALCULATION                                                              2/5 Passed House Ways & Means Committee; ready
A real property tax lien bears interest at the bid rate from the first   Rules Committee
day of the month following the purchase of the tax lien. The
amount of subsequent taxes bears interest at the rate stated in the
certificate of purchase from the first day of the month following
the purchase of the subsequent tax lien. Sponsor: Rep.
Konopnicki. ARS Title 42.
HB 2353: HOAS; DISCLOSURE                                                1/24 Referred to House Homeland Security & Prop
The time period in which a condominium unit owner or HOA has             Committee
to mail or deliver to a purchaser a copy of the bylaws and rules of      1/29 Passed House Homeland Security & Property
the HOA, a copy of the declaration, and a date statement                 Committee; ready for House Rules Committee
regarding the HOA is statutorily set at 10 calendar days
(formerly, just 10 days). Sponsor: Rep. Nichols. ARS Title 33.
HB 2375: FINANCIAL INSTITUTION RECORDS;                                  1/24 Referred to House Financial Institutions & Ins
DISCLOSURE; NOTICE                                                       Committee
A financial institution shall not release or disclose any financial
record to any government authority unless the customer has given
written consent or the institution has been served with a court
order subpoena or valid search warrant. After a subpoena is
served or received, the customer has 14 days to file a motion to
quash, and records shall not be disclosed for 21 days. Sponsors:
Rep. Crump & 3. ARS Title 6.
HB 2413: HOAS; PRIVATELY OWNED AMENITIES                                 1/28 Referred to House Homeland Security & Prop
Regardless of any provision in community documents, an HOA               Committee
shall not impose an assessment or other mandatory fee for the
construction, use, operation or maintenance that is not owned by         Hearing:
the HOA and operated for the benefit of its members. Sponsors:           House Homeland Security & Property Rights Com
Rep. Tobin; Sen. O’Halleran. ARS Title 33.                               Monday, February 11 at 1:30 pm, House Rm. 1
HB 2440: CONDOS; PLANNED COMMUNITIES;                                    1/28 Referred to House Homeland Security & Prop
POLITICAL PETITIONS                                                      Committee
A condo or HOA cannot prohibit or regulate the circulation of            2/4 FAILED to pass House Homeland Security & P
political petitions. Sponsor: Rep. Nichols. ARS Title 33.                Rights Committee 3-4
HB 2452: MUNICIPAL DEVELOPMENT FEES;                                     1/29 Referred to House Counties, Municipalities &
ASSESSMENT                                                               Affairs Committee
Municipalities are prohibited from assessing any "newly adopted"
(defined) development fees against property for the first 18
months after the property is subdivided. Sponsor: Rep. Paton.
ARS Title 9.




February 8, 2008                                Arizona Trustees Association                                  Page 6
                       Bill and Subject                                                          Status
HB 2474: MATERIALMEN’S LIENS; SURETY BONDS                             1/31 Referred to House Commerce Committee
Changes in statutes dealing with the discharge of materialmen's
liens, including a provision that any money withheld because of a      Hearing:
stop notice or bonded stop notice must be released when the a          House Commerce Committee, Wednesday, Februa
surety bond is recorded and noticed to the lienholder. Also, the       am, House Rm. 4
amount of surety for a bonded stop notice is increased to 150%
from 125% of the amount of the claim. Sponsors: Rep. Driggs &
6; Sen. Cheuvront. ARS Title 33.
HB 2487: PROPERTY EXEMPTIONS; JUDGMENTS;                               1/29 Referred to House Commerce Committee
TRUSTS
The list of assets and property protected from creditors is
expanded to include the cash value of the debtor's life insurance
policy whose named beneficiary is a trust. Previously, only
policies whose beneficiary was a member of the debtor's family
were excluded. Sponsor: Rep. Jim Weiers. ARS Title 33.
HB 2489: TECHNICAL CORRECTION; HOAS                                    1/22 Referred to House Rules Committee only
Minor change in statutes dealing with planned communities.
Apparent striker bus. Sponsor: Rep. Farnsworth. ARS Title 33.
HB 2495: REAL ESTATE DISCLOSURE; MILITARY
TRAINING RANGES
Documents regarding land divisions filed with the Department of
Real Estate must include a disclosure of whether the property is
within a "sensitive electronic testing range" (defined) of a
military base. A local government with any portion of a sensitive
electronic testing range within its borders must notify the base
commander when the government receives an application
regarding property within the range area to: rezone; building on;
or subdivide the property. Maps delineating the area of a sensitive
electronic testing range must be posted on the Department of real
Estate's website. Sponsors: Rep. Burns & 7; Sen. Arzberger & 2.
ARS Titles 9, 11, 32, 33.
HB 2506: REVERSE MORTGAGES
Regulations for reverse mortgages are established, including
requiring financial counseling for the borrower before an
application for a reverse mortgage can be accepted; requiring
reverse mortgage creditors to prominently disclose interest rates
and other fees to be charged when the mortgage becomes due;
requiring reverse mortgages to allow prepayment without
penalty; allowing reverse mortgages to provide fixed or
adjustable interest rates, costs and fees charged by the creditor;
and specifying instances when reverse mortgages may become
due and payable. Prohibits certain reverse mortgage practices,
including reducing advances to a borrower or requiring the
purchase of an annuity. These regulations are enforceable through
private action and prosecution by the attorney general. Sponsors:
Rep. Konopnicki & 9. ARS Title 6.

February 8, 2008                              Arizona Trustees Association                                Page 7
                        Bill and Subject                                                              Status
HB 2512: LOAN ORIGINATOR LICENSING FEES                                   1/28 Referred to House Financial Institutions & Ins
Monies received by the Department of Financial Institutions from          Committee
licensing loan originators is deposited in the department's               2/5 Passed House Financial Institutions & Insuranc
Revolving Fund, a portion of which may be transferred to the              with amendment #4045
department's Receivership Revolving Fund. The list of permitted
uses of the Revolving Fund is expanded to include licensing
administration and examination. Provision which required any
unencumbered monies in the Revolving Fund in excess of
$50,000 to be deposited in the Receivership Revolving Fund is
deleted. Additionally, beginning July 1, 2009, the Department is
required to deposit civil penalties it receives in the general fund.
Enactment conditional on passage of a bill relating to loan
originator licensing. (Note: the bill number of the companion bill
is unspecified in the original but presumably is H2349.) Sponsor:
Rep. Konopnicki. ARS Title 6.
HB 2517: HOMEOWNER PROTECTION; MORTGAGE                                   1/28 Referred to House Financial Institutions & Ins
BROKER DUTIES                                                             Commerce Committees
The list of prohibited acts for mortgage brokers is expanded to
include making or providing a residential mortgage loan: without
verifying the borrower’s reasonable ability to pay, that does not
provide a reasonable net benefit to the borrower, with the intent
that it will not be repaid and the broker will obtain title, or that is
of a lower investment grade than the borrower’s credit score.
Sponsors: Rep. Ableser & 13. ARS Title 6.
HB 2523: TECHNICAL CORRECTION; PROPERTY TAX                               1/22 Referred to House Rules Committee only
DEEDS
Minor change in Title 42 (taxation), relating to delinquent
property tax liens. Apparent striker bus. Sponsor: Rep. Crandall.
ARS Title 42.
HB 2529: WRITS OF EXECUTION; NOTICE; SERVICE
After an entry of judgment, the party in whose favor judgment is
given can request a notice of writ of execution, which describes
the judgment and may be served by any person authorized to
serve process, including sheriffs, and constables. Sponsor: Rep.
Farnsworth. ARS Title 22.
HB 2535: SUBDIVISION PUBLIC REPORTS                                       1/31 Referred to House Counties, Municipalities &
The requirement for a developer to make the public report                 Affairs, Homeland Security & Property Rights Com
authorizing the sale or lease of lots within a subdivision available
to each prospective customer is changed to state it must be
available “on request.” Sponsor: Rep. Paton. ARS Title 32.




February 8, 2008                                 Arizona Trustees Association                                  Page 8
                       Bill and Subject                                                            Status
HB 2540: FRAUDULENT SCHEMES AND ARTIFICES;
CLASSIFICATION
The criminal classification for fraudulent schemes or artifices
involving an amount less than $25,000 is reduced to a class 3, 4,
5, or 6 felony, depending on the amount. Previously, all fraud
was classified as class 2 felonies. Sponsors: Rep. Sinema & 7.
ARS Title 13.
HB 2578: NOTARY PUBLIC; NAME CHANGE                                    1/29 Referred to House Judiciary Committee
Notaries public who have a change of surname for any reason,
instead of only due to marriage, can continue using the official
seal and commission with the prior name until the commission
expires. Sponsors: Rep. Pancrazi & 12; Sen. Aboud & 2. ARS
Title 41.
HB 2587: EXTENSION OF CREDIT; IDENTITY THEFT                           1/29 Referred to House Financial Institutions & Ins
Credit issuers must take reasonable steps to verify the consumer’s     Committee
identity and confirm that a credit application is not the result of
identity theft. Violations are considered consumer fraud and are       Hearing:
subject to enforcement through private action and by the Attorney      House Financial Institutions & Insurance Commi
General. Sponsors: Rep. Robson & 34; Sen. Chuck Gray. ARS              Monday, February 11 at 1:30 pm, House Rm. 3
Title 44.
HB 2604: CONSUMER REPORTS; SECURITY FREEZE
A consumer may make a written request that a consumer
reporting agency place a security freeze on the consumer's
consumer report. During a security freeze, a consumer reporting
agency may not release information from a consumer's consumer
report without the consumer's prior authorization, except to report
that a security freeze is in place. Sponsors: Rep. Mason & 11.
ARS Title 44.
HB 2611: HOAS; REAL ESTATE SIGNS                                       1/31 Referred to House Homeland Security & Prop
A condominium or planned community may regulate for sale               Committee
signs by adopting a specific provision regarding for sale signs in
the HOA documents. Sponsor: Rep. Mason. ARS Title 33.                  Hearing:
                                                                       House Homeland Security & Property Rights Com
                                                                       Monday, February 11 at 1:30 pm, House Rm. 1




February 8, 2008                              Arizona Trustees Association                                  Page 9
                        Bill and Subject                                                           Status
HB 2648: MORTGAGE FORECLOSURES                                          1/31 Referred to House Commerce, Financial Institu
Establishes regulations for foreclosure consultants (defined),          Insurance Committees
foreclosure consulting contracts (defined), foreclosure
reconveyances (defined), foreclosures purchasers (defined) and
foreclosure surplus acquisitions (defined). A person authorized to
sell real property in an action to foreclose a mortgage or deed of
trust (with exceptions) shall give written notice of the action to
the record owner of the property to be sold within 2 days after the
action to foreclose is docketed (by both first class and certified
mail). The notice shall contain a warning regarding entities that
promise to save the home and inform the owner that there are
government agencies and non-profit organizations that may be
able to help. A homeowner has the right to rescind in writing a
foreclosure consulting contract at any time, rescind a foreclosure
reconveyance at any time before midnight of the 3rd day after the
conveyance or transfer of a residence in foreclosure and rescind
any contract with a foreclosure surplus purchaser at any time
within 10 days after the statement of the audit account of the
foreclosure sale. A person who violates this act is guilty of a class
1 misdemeanor (highest) and is subject to civil liability in a claim
brought by a homeowner. Emergency clause. Sponsors: Rep.
Ulmer & 4. ARS Title 44.
HB 2650:HOA; CONDOS; PLANNED COMMUNITIES;                               1/29 Referred to House Homeland Security & Prop
CLASSIFICATION SYSTEM                                                   Committee
The list of information that must be provided to a purchaser by an      2/4 Held in House Homeland Security & Property R
HOA or owner of a condo governed by an HOA is expanded to               Committee
include a statement that indicates the class (such as "class A") of
the condo or planned community, as determined by the services
provided. Sponsor: Rep. Nichols. ARS Title 33.
HB 2659: DEED RESTRICTIONS; PRIVATE COVENANTS                           2/4 Referred to House Homeland Security & Proper
An owner of real property may enter into a private covenant             Committee
(defined) regarding that property if the covenant is not prohibited
and does not violate any statute, the owner of the property             Hearing:
affected by the covenant, and any other person on whom the              House Homeland Security & Property Rights Com
covenant imposes any liability or obligation have consented, and        Monday, February 11 at 1:30 pm, House Rm. 1
any consent requirements contained in the express provisions of
any existing private covenant or declaration (defined) affecting
the property have been met. A private covenant is not deemed to
constitute an amendment to any existing private covenant or
declaration unless the covenant expressly violates an express
provision of the existing covenant or declaration. Sponsors: Rep.
Clark & 6. ARS Title 33.




February 8, 2008                               Arizona Trustees Association                                 Page 10
                        Bill and Subject                                                          Status
>>HB 2724: ASSOCIATIONS; CONDOMINIUMS;                                  2/6 Referred to House Homeland Security & Proper
AMENDMENTS                                                              Committee
Makes several changes to statutes relating to HOAs, including
permitting an HOA or Board of a condominium to create and
enforce rules or create an enforcement, review or regulatory body
within the association only if expressly authorized by the
declaration; requiring that any rule of the association that directly
or indirectly modifies or supersedes any provision of the
declaration is void and unenforceable; and prohibiting the
association from limiting the right of a unit owner to construct,
decorate, improve, modify or remodel any portion of a unit that is
either not readily visible from the common area or that is interior
to a unit. Sponsor: Rep. Nichols. ARS Title 33.
>>HB 2733: FORECLOSURES; HOMEOWNER
PROTECTION
Language in foreclosure statutes that restricts the size of the lot
associated with a primary residence to no more than two-and-
one-half acres is deleted. Sponsors: Rep. Alvarez & 8. ARS
Titles 12, 33.




February 8, 2008                               Arizona Trustees Association                                Page 11
                        Bill and Subject                                      Status
>>HB 2745: EMPLOYER SANCTIONS AMENDMENTS
The definition of the crimes of taking or trafficking in the identity
of another person is expanded to include instances when the
taking or trafficking is used with the intent to obtain or continue
employment. Clarifies that when an employer hires an
independent contractor, it is the contractor that is liable under the
employer sanctions law and not the person or entity that hires the
contractor. Criteria are prescribed to determine independent
contractor status. However, an employer violates the law if the
employer hires a contractor or subcontractor who is an alien and
whom the employer knows to be an illegal alien. A complaint
alleging violation of the law does not need to carry the
complainant's social security number or be notarized. Complaints
submitted on a prescribed form must be investigated. Complaints
not submitted on the prescribed form may be investigated.
Complaints must be submitted in the county in which the alleged
violation occurred. If an investigation results in a suspension of
business licenses, only the licenses specific to the business
location where the violation occurred are suspended (language
requiring suspension of all licenses necessary to carry on business
at that location is deleted). Adds provision that employers are
considered to have complied with requirements of the law if there
is "good faith" attempt to comply, despite "isolated, sporadic or
accidental technical or procedural noncompliance." Adds
requirements that employers must comply with all laws regarding
income tax withholding, payment of unemployment insurance
and workers' compensation premiums. Adds prohibition against
any state agency from granting a license to a person who is not
legally present in this county. Severability clause. Sponsors:
Rep. Pearce & 22; Sen. Blendu & 6. ARS Titles 13, 23, 41.
HCR 2039: ILLEGAL ALIENS; ;ENFORCEMENT &
TRESPASSING
The 2008 general election ballot is to carry the question of
whether to amend statutes to require that all governmental units
in the state must assist in the enforcement of federal immigration
laws. Further, anyone illegally present in this county is guilty of
trespass, with a first time punishment of being transferred to
federal authorities. A second offense is a class 4 felony
punishable by a presumptive prison sentence of 2.5 years.
Severability clause. Sponsors: Rep. Pearce & 12; Sen. Burns &
3. ARS Title 97.




February 8, 2008                               Arizona Trustees Association            Page 12
                       Bill and Subject                                                             Status
SB 1019: HOAS & CONDOS; OPEN MEETINGS                                  1/14 Referred to Senate Government Committee
The list of topics that may result in a meeting of an HOA or
condo association being closed is expanded to include, at the unit     Hearing:
owner’s request, discussion of a unit owner's appeal of violations     Senate Government Committee, Monday, Februar
or penalties imposed. Other changes in statutes governing              pm, Senate Room 3
association meetings include: requirement that only items listed
on the meeting agenda for a meeting may be discussed or voted at
that meeting; items considered in closed session must be voted on
in an open meeting; and minutes of open meetings must be made
available within 10 business days after the meeting is held and
copies provided to unit owners at no cost. Also, statutory
authority is given for a board to call emergency meetings or
workshop meetings. A "declaration of policy" section states that
"all meetings" be conducted openly, that notice be provided and
that members be given the opportunity to speak before a vote is
taken. In addition, persons charged with interpreting the
applicability of these provisions shall construe provisions of this
act in favor of open meetings. Sponsor: Sen. Harper. ARS Title
33.
SB 1043: REAL ESTATE DISCLOSURE; LIENS                                 1/14 Referred to Senate Financial Institutions, Insur
Real estate escrow agents that are also title insurance agents must    Retirement Committee
disclose in writing to buyers and sellers that title insurance may
be available to cover liens and claims that accrue after the buyer
takes possession of the property. Sponsor: Sen. Tibshraeny.
ARS Title 6.
SB 1058: PLANNED COMMUNITIES; AUTHORITY                                1/14 Referred to Senate Government Committee
OVER ROADWAYS
An HOA has no authority over any roadway, easement or other
area owned by, under the legal authority of or dedicated for use
by a government entity (regardless of any provision in
community documents). Sponsor: Sen. Chuck Gray. ARS Title
33.
SB 1107: MARRIAGE; PROPERTY; DEBTS                                     1/23 Referred to Senate Public Safety & Human Se
In order to bind the marital community, both spouses must join in      Committee
any transaction of a partnership, corporation or limited liability     2/4 Passed Senate Public Safety & Human Services
company. Sponsor: Sen. Linda Gray. ARS Title 25.
                                                                       Hearing:
                                                                       Senate Rules Committee, Monday, February 11, 2
                                                                       Caucus Rm.




February 8, 2008                              Arizona Trustees Association                                   Page 13
                       Bill and Subject                                                             Status
SB 1112: DIVORCE; DISPOSITION OF PROPERTY                              1/23 Referred to Senate Public Safety & Human Se
In dividing property for purposes of community property in a           Committee
divorce, a court may consider all debts and obligations related to     2/4 Passed Senate Public Safety & Human Services
the property, including accrued or accruing taxes that would           ready for Senate Rules Committee
become due on receipt of disposition of the property. The court
may also consider the exempt status of particular property under
the homestead and personal property exemption. If any part of the
court's division of property in a divorce is in the nature of child
support or spousal maintenance, the court shall make specific
findings of fact and supporting conclusions of law in its decree.
Sponsor: Sen. Linda Gray. ARS Title 25.
SB 1151: MARRIAGE; DISSOLUTION; COMMUNITY                              1/24 Referred to Senate Public Safety & Human Se
PROPERTY                                                               Committee
Service of a petition for divorce, annulment or legal separation       2/4 Passed Senate Public Safety & Human Services
does not alter the status of community property, change the status     ready for Senate Rules Committee
of community property used to acquire new property or the status
of that new property as community property or alter the duties
and rights of the spouses with respect to management of
community property. Sponsor: Sen. Linda Gray. ARS Title 25.
>>SB1164: LIMITED LIABILITY COMPANY; PURPOSE                           1/24 Referred to Senate Financial Institutions, Insur
A limited liability company may conduct or promote any                 Retirement Committee
insurance business if "expressly authorized" by the Department of
Insurance. Formerly, LLCs were permitted to conduct insurance          Hearing:
business only as it related to title insurance. Sponsor: Sen.          Senate Financial Institutions, Insurance & Retire
Gorman. ARS Title 29.                                                  Committee, Monday, February 11 at 1:30 pm, Sen
SB 1174: NOTARY PUBLIC; REGISTRATION                                   1/24 Referred to Senate Government Committee
Establishes the Notary Bond Fund consisting of notary fees to be
administered by the Secretary of State to defray the cost of the       Hearing:
Secretary of State's assuming the responsibilities associated with     Senate Government Committee, Monday, Februar
the processing and administration of notary bonds. Sets a              pm, Senate Rm. 3
statutory scheme for the distribution of notary bond fees.
Requires the Secretary of State (formerly, the clerk of a court of
record) to certify to the official character of a person and to
his/her authority to perform a notarial act. The official oaths of
notaries public shall be filed with the Secretary of State
(formerly, the clerk of the superior court). Due to the increase in
state revenue, this bill requires a 2/3 majority for passage.
Sponsors: Sen. Tibshraeny & 1; Rep. Adams & 2. ARS Titles 8,
12, 33, 36, 38, 41.




February 8, 2008                              Arizona Trustees Association                                   Page 14
                        Bill and Subject                                                           Status
SB 1182: NOTARIES PUBLIC; PROHIBITED ACTS                                1/24 Referred to Senate Government Committee
The list of prohibited acts of notaries public (including electronic
notaries public) is expanded to include notarizing a document if         Hearing:
the notary is a party to or named in that document, if the notary        Senate Government Committee, Monday, Februar
will receive any benefit or consideration that exceeds in value the      pm, Senate Rm. 3
fees established by statute, or if the notary is the spouse, domestic
partner, ancestor, descendant or sibling (including in-laws, step
relatives or relative of half blood) of the principal for whom the
document is notarized. Sponsor: Sen. Blendu. ARS Title 41.
SB 1183: PREMARITAL & POST-MARITAL                                       1/24 Referred to Senate Public Safety & Human Se
AGREEMENTS; REGISTRY                                                     Appropriations Committees
On or before January 1, 2009, the Secretary of State shall               2/4 Passed Senate Public Safety & Human Service
establish and maintain a premarital and post-marital agreements          with amendment #4038; ready for Senate Appropria
registry for filing pre- and post-marital agreements, amendments         Committee
and excerpts from such agreements. The registry shall be
available through a website. Registration of an agreement in the
registry shall constitute notice to creditors and third parties of the
terms of a document. The Secretary of State is not required to
review a document to ensure it complies with statutory
requirements. Establishes the Premarital Agreement and Post-
Marital Agreement Registry Fund consisting of monies received
from registration fees and gifts or donations to the Registry to be
administered by the Secretary of State. A premarital or post-
marital contract made between spouses who remain married to
each other is not valid against a purchaser for valuable
consideration or a creditor that does not have notice of the
contract unless the contract is registered with the Registry. A
premarital agreement made before the effective date of this act
is valid against a third party that does not have notice if it has
been properly acknowledged and recorded in the manner and
form required for deeds and other conveyances before the
effective date of this act. Sponsor: Sen. Linda Gray. ARS Titles
25, 33.




February 8, 2008                                Arizona Trustees Association                                Page 15
                        Bill and Subject                                                              Status
SB 1201: TELEPHONE CALL CENTERS; CONSUMER                                1/28 Referred to Senate Commerce & Economic De
SERVICES                                                                 Judiciary Committees
The list of persons and entities subject to regulations regarding
telephone solicitation and sales is expanded to include consumer
service call centers/employees (defined) and consumer sales call
centers/employees (defined). A person receiving a telephone
solicitation call (or placing a call to) shall have the right to speak
to a qualified employee of the company or agency with which the
person is doing business. A consumer services employee shall not
transmit a person's financial, credit or identifying information to a
foreign country without the person's written permission. Entities
registered to use and/or provide telephone solicitation services on
behalf of the state shall only contract with providers or vendors
that operate in the U.S. A vendor who falsely certifies that
services are provided in the U.S. is guilty of a class 6 felony
(lowest). Sponsor: Sen. Garcia. ARS Title 44.
SB 1203: LICENSING; LOAN ORIGINATORS                                     1/28 Referred to Senate Financial Institutions, Insur
January 1, 2010, loan originators must be licensed by the                Retirement Committee
Department of Financial Institutions, unless a person is already
licensed under certain other types of financial licenses.
Qualifications for licensure, including passing an examination
and paying a fee in an amount determined by the Department, are
established, as are a list of prohibited practices and procedures for
denial, suspension, or revocation of a license. Licensed mortgage
brokers and bankers must supervise a loan originator employed
by the broker or banker. Sponsor: Sen. Tibshraeny. ARS Title 6.
SB 1258: TIMESHARES; TRUSTEE’S SALES;                                    1/31 Referred to Senate Commerce & Economic De
FORECLOSURES                                                             Committee
The timeshare owned or controlled by the estate of a person who
was delinquent in the payment of timeshare assessments to the            Hearing:
association may be subject to a trustee's sale if the delinquent         Senate Commerce & Economic Development Com
amount is not paid by the estate within 30 days of notice.               Wednesday, February 13 at 9:00 am, Senate Rm. 9
Sponsor: Sen. Chuck Gray. ARS Title 33.
SB 1285: CEASE & DESIST ORDERS; DISCLOSURE                               1/31 Referred to Senate Financial Institutions, Insur
A cease and desist order issued by the superintendent of the             Retirement Committee
Department of Financial Institutions shall be open to public
inspection. Sponsors: Sen. McCune Davis & 2; Rep. Ulmer.
ARS Title 6.




February 8, 2008                                Arizona Trustees Association                                   Page 16
                       Bill and Subject                                                             Status
SB 1296: MORTGAGE LOAN FRAUD PROSECUTION                               1/31 Referred to Senate Financial Institutions, Insur
FUND                                                                   Retirement, Appropriations Committees
Each county recorder must collect a $1 surcharge for each deed
of trust recorded. Revenue, which is to be deposited in the
Mortgage Loan Fraud Prosecution Fund created by this act, is
used by the attorney general and county attorneys to prosecute
mortgage fraud. Self-repeals on July 1, 2011. Because this act
increases state revenue, it requires a 2/3 majority vote in each
house for passage per Prop. 108. Sponsors: Sen. McCune Davis
& 5; Rep. Ulmer. ARS Title 6, 11.
>>SB 1343: MORTGAGE BROKERS; BANKERS;                                  2/4 Referred to Senate Financial Institutions, Insura
LICENSE RENEWALS                                                       Retirement Committee
For mortgage broker or banker licenses approved after September
30, 2008, renewals are due by December 31, 2009 and each
subsequent year. Licenses not renewed by the deadline each year
are suspended and if renewed before January 31, the licensee
faces an added charge of $25 per day. Licenses not renewed by
the end of January expire, and the former licensee must reapply.
Provisions are included whereby licensees may request inactive
status. Retroactive to April 1, 2008. Sponsors: Sen. McCune
Davis & 5. ARS Title 6.
>>SB 1344: DFI REVOLVING FUND; RECEIVERSHIP                            2/4 Referred to Senate Financial Institutions, Insura
FUND                                                                   Retirement Committee
The $50,000 cap in the year-end balance in the Department of
Financial Institution's Revolving Fund is removed. The
Department may transfer monies from the Revolving Fund to the
Receivership Revolving Fund. Emergency clause. Sponsors: Sen.
McCune Davis & 5. ARS Title 6.
>>SB 1349: HOME EQUITY THEFT PREVENTION ACT                            2/4 Referred to Senate Financial Institutions, Insura
A new article regulating home equity buying and selling is             Retirement, Judiciary Committees
included in a chapter dealing with mortgages. Provisions include
right of rescission, prohibition of false or misleading statements,
and penalties for violations. A list of prohibited acts includes
representing to the seller that the buyer of a home's equity is
acting as an advisor or consultant on behalf of the seller or that
the buyer is "assisting" the seller to prevent a foreclosure or
trustee sale. Sponsors: Sen. McCune Davis & 5; Rep. Chad
Campbell & 2. ARS Titles 6, 33.




February 8, 2008                              Arizona Trustees Association                                   Page 17
                        Bill and Subject                                                           Status
>>SB 1350: REAL ESTATE TRANSFERS; DISCLOSURES                            2/4 Referred to Senate Commerce & Economic Dev
Submitting for recordation an affidavit of value which the person        Committee
knows to be false or incomplete is an instance of "deceptive
practice" and is sanctionable under laws governing consumer
fraud. Also, a real estate transaction conveying title to a person or
entity acting as a trustee that does not identify the beneficiaries of
the trust is voidable by an action of either the other party to the
conveyance or the attorney general (formerly, only by an action
of the other party). Sponsors: Sen. McCune Davis & 4; Rep.
Chad Campbell & 1. ARS Titles 11, 33.
>>SB 1387: REAL ESTATE DISCLOSURE; TRAINING                              2/5 Referred to Senate Government Committee
RANGES
A municipality or county that contains any portion of the
sensitive electronic testing range (defined) of a military base shall
notify the office of the base commander when an application is
received by the municipality or county to do any of the following:
1) rezone the property; 2) issue a building or other development
permit, including an application for construction or installation of
a publicly or privately operated utility for the property; or 3)
subdivide the property, including any land division into 5 or
fewer lots. The Department of Real Estate shall post on its
website any map that delineates the sensitive electronic testing
range of a military base,that is authorized by the base
commander, but the Department shall not record the sensitive
electronic testing range map. Sponsor: Sen. Bee. ARS Titles 9,
11, 32, 33.
>>SB 1390: COUNTY LAND DIVISIONS; ACCESS                                 2/5 Referred to Senate Government Committee
Makes changes to the definitions section of statutes relating to
county land divisions. Sponsor: Sen. Flake. ARS Title 11.
>>SB 1410: CORPORATIONS & LLCS                                           2/7 Referred to Senate Commerce & Economic Dev
Various changes relating to corporations and limited liability           Committee
companies (LLCs), including eliminating the certificate of
disclosure, eliminating the $35 fee for articles of termination,
allowing parent and subsidiary LLCs to be formed at the same
time, and making the filing of an affidavit evidencing certain
publications optional instead of required. Sponsor: Sen.
Verschoor. ARS Titles 10, 29, 32.
>>SB 1448: SUBDIVISION PROPERTY DISCLOSURE                               2/7 Referred to Senate Commerce & Economic Dev
REPORT                                                                   Committee
The name of the report required for developers of subdivisions to
file with the Department of Real Estate is changed to
"Subdivision Property Disclosure Report" from "Public Report."
Sponsor: Sen. Cheuvront. ARS Titles 28, 32, 33, 45, 48.




February 8, 2008                                Arizona Trustees Association                                Page 18
                       Bill and Subject                                                           Status
>>SB 1452: HOAS; FORECLOSURES; VOTING RIGHTS
The declarant for a planned community is eligible to vote for only
the number of members of the board of directors that constitutes a
minority of the membership of the board of directors if the
planned community was platted before January 1, 1976, and
originally contained more than 300,000 lots, more than 500 lots
have been sold or otherwise conveyed to a person other than the
declarant, and the declarant was not the original declarant and
acquired title to the lots through compromise and settlement of
unpaid property taxes. Sponsor: Sen. Gould. ARS Title 33.
>>SB 1486: NOTARY PUBLIC; NAME CHANGE
Notaries public who have a change of surname for any reason,
instead of only due to marriage, can continue using the official
seal and commission with the prior name until the commission
expires. Sponsors: Sen. Aguirre & 4; Rep. Alvarez & 13. ARS
Title 41.
>>SB 1491: SUBDIVISION REPORTS; NOTICE
Beginning January 1, 2009, a subdivider must record all public
reports and amendments to public reports on the property in the
county in which the property is located. Likewise, a seller of
unsubdivided land must record public notices and amendments in
the county in which the land is located. If the Real Estate
Department determines a violation of statutes pertaining to
subdividing has occurred, the department must record a public
notice, stating among other things, that no building permits are
allowed to be issued for the land until appropriate approval is
acquired. Sponsors: Sen. Gorman & 2. ARS Titles 32, 33.
>>SB 1494: HOAS; PROXIES; NONPROFIT
CORPORATIONS
Proxies are not allowed in the voting of an HOA or condo
association. A legislative intent section states the purpose of this
act is to specify that for any instance in which there is a conflict
between the more general laws governing non-profit corporations
and the specific laws governing HOAs and condo associations,
the latter applies. Sponsors: Sen. Gorman & 1; Rep. Nichols.
ARS Titles 10, 33.
SCM 1004: FEDERAL TAX INTERCEPT PROPOSAL                                1/31 Referred to Senate Finance Committee
Urges Congress to enact legislation authorizing the U.S. Treasury
to intercept federal tax refunds if the filer has any state court-      Hearing:
ordered debt (for example for traffic fines or for victim               Senate Finance Committee, Wednesday, February
restitution). Sponsors: Sen. Tibshraeny & 5; Rep. Nelson & 5.           pm, Senate Rm. 1
ARS Title 99.




February 8, 2008                               Arizona Trustees Association                                Page 19
                        Bill and Subject                                                           Status
SCR 1003: PROPERTY TAX LIMITS; VALUE                                    1/24 Referred to Senate Finance, Appropriations Co
INCREASES
The 2008 general election ballot is to carry the question of
whether to amend Article IX of the state constitution to limit the
maximum aggregate amounts of all state and local property taxes
to 0.5% of the value on residential property (owner-occupied,
rental property and mobile homes), and to 1% of the value on any
other real property. Beginning in tax year 2009, the baseline full
cash value of real property is the valuation on the 2003 tax bill or,
if the property was not on the tax roll in 2003, on the actual
purchase price. After 2009, the full cash value of real property
cannot increase more than 2% over the previous year. For
residents 65 or older whose income is less than 400% of the
federal supplemental security income benefit rate (or 500% if the
property is owned by two people), a “property valuation
protection option” is created which fixes the full cash value of the
property at the amount in effect during the year the option is
approved by the county assessor. Sponsor: Sen. Harper. ARS
Title 98.
SCR 1012: SECURE AND VERIFIABLE                                         1/24 Referred to Senate Public Safety & Human Se
IDENTIFICATION                                                          Committee
The 2008 general election ballot is to carry the question of            2/7 Amended in Senate Public Safety & Human Ser
whether to amend statutes to require political subdivisions of this     Committee; report awaited
state to accept only verifiable (defined) identification documents
and prohibit disbursement of public services unless the recipient
produces identification that is issued by a political subdivision of
this state, a federally recognized Indian tribe or a state or federal
authority and that is verifiable (defined) by a law enforcement or
Homeland Security agency. A legislative history section states
that the purpose of the referendum is to give the qualified electors
the opportunity to override the governor's 2005 veto of SB1511.
Sponsors: Sen. Harper; Rep. Burges.
>>SCR 1022: INCOME TAX PHASE-OUT; FAIR TAX                              2/4 Referred to Senate Finance Committee
The 2008 general election ballot is to carry the question of
whether to amend the state Constitution to phase out the state
income tax (both individual and corporate) so that by January 1,
2013, no governmental entity shall assess or collect a tax based
on income. The Legislature is authorized to increase sales and use
taxes to compensate for the loss in revenue and such measures are
exempt from Prop. 108 that would otherwise require a 2/3
majority in each house for passage. Sponsors: Sen. Chuck Gray
& 5. ARS Title 98.




February 8, 2008                               Arizona Trustees Association                                 Page 20

								
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