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					                 ARIZONA HOUSE OF REPRESENTATIVES
                 Forty-ninth Legislature - First Regular Session

              MAJORITY CAUCUS CALENDAR
                                        March 24, 2009
                                        10:00 AM, HHR1

Bill Number     Short Title        Committee              Date    Action

Committee on Appropriations
Analyst: Mike Huckins Assistant: Daniel Plumhoff Intern: Calvin Bovee

HB 2279         state debt; expenditures; report
                 (APPROP S/E: state debt and expenditures; analysis)
  SPONSOR:      KAVANAGH           APPROP              3/11     DPA/SE        (11-0-0-2-0)
HB 2308         residential contractors' recovery fund
  SPONSOR:      HENDRIX            APPROP              2/25     DP            (10-0-0-3-0)
                                   COM                 3/4      DP            (7-0-0-1-0)
HB 2369         revenue department; technical correction
                 (APPROP S/E: noncustodial federal monies; legislative appropriation)
  SPONSOR:      MURPHY             APPROP              3/11     DPA/SE        (7-4-0-2-0)

Committee on Banking and Insurance
Analyst: Stacy Weltsch Intern: Azra Hafizovic

HB 2323         health insurance; small business coverage
  SPONSOR:      BOONE              BI                     2/16    DP          (6-1-0-1-0)
HB 2324         health insurance; individuals; coverage exemptions
  SPONSOR:      BOONE              BI                     2/16    DPA         (6-1-0-1-0)
HB 2333         Arizona trust code
  SPONSOR:      BOONE              BI                     2/16    DPA         (6-0-0-2-0)
HB 2334         uniform principal and income act
  SPONSOR:      BOONE              BI                     2/16    DPA         (6-0-0-2-0)
HB 2381         health insurance; utilization review; definition
                 (BI S/E: health insurance; coverage determination)
  SPONSOR:      MCLAIN             BI                     2/23    DPA/SE      (7-0-0-1-0)
HB 2513         reverse mortgages
  SPONSOR:      KONOPNICKI         BI                     3/2     DP          (8-0-0-0-0)

Committee on Commerce
Analyst: Dianna Clay O’Dell Assistant: Brooke Olguin Intern: Maureen Howell

HB 2306         technical correction; malpractice claim review
                 (COM S/E: authorized presence; licensees)
  SPONSOR:      REAGAN             COM                   2/25     DPA/SE      (5-0-0-3-0)

Committee on Education
Analyst: Jennifer Anderson Intern: Cassondra Warney

HB 2357         public education; students' religious liberties


                                           Page 1 of 79
  SPONSOR:      CRANDALL             ED                   2/23   DP            (8-2-0-0-0)
HB 2332         schools; energy contracts
  SPONSOR:      BOONE                ED                   3/2    DPA           (10-0-0-0-0)
HB 2437         school districts; internet based advertising
  SPONSOR:      KAVANAGH             ED                   2/23   DP            (9-0-0-1-0)
HB 2459         schools; superintendents; certification
  SPONSOR:      GOODALE              ED                   3/2    DPA           (8-0-0-2-0)

Committee on Government
Analyst: Michelle Hindman Assistant: Zach Tretton Intern: Laurel Johnson

HB 2268         county and municipal budgets
  SPONSOR:      CRUMP              GOV                 2/17     DPA            (9-0-0-0-0)
HB 2310         subdivision public reports
  SPONSOR:      DRIGGS             GOV                 2/17     DP             (7-2-0-0-0)
HB 2615         government transparency; political subdivisions
  SPONSOR:      MONTENEGRO GOV                         3/3      DP             (6-3-0-0-0)
HB 2034         technical correction; ambulances
                 (GOV S/E: planned communities; authority over roadways)
  SPONSOR:      BARTO              GOV                 3/3      DPA/SE         (8-1-0-0-0)

Committee on Health and Human Services
Analyst: Dan Brown Intern: Thomas Desmaris

HB 2238         AHCCCS; DES; fraud reduction
  SPONSOR:      SEEL                 HHS                   2/18     DP         (6-3-0-0-0)
HB 2265         child care facilities; licensure; exemptions
                 (HHS S/E: exemptions; licensure; child care facilities)
  SPONSOR:      CRUMP                HHS                   3/4      DPA/SE     (8-0-0-1-0)
HB 2375         foster parents; participation
  SPONSOR:      MURPHY               HHS                   3/4      DP         (5-3-0-1-0)
HB 2461         developmental disabilities; program plans; burial
  SPONSOR:      ASH                  HHS                   3/4      DPA        (8-0-0-1-0)
HB 2158         adult immunization information system
  SPONSOR:      BARTO                HHS                   2/25     DP         (7-0-0-2-0)
HB 2159         board of podiatry examiners; continuation
  SPONSOR:      BARTO                HHS                   2/25     DP         (6-0-0-3-0)
HB 2160         chiropractic practice
  SPONSOR:      BARTO                HHS                   2/11     DPA        (8-1-0-0-0)
                                     BI                    2/23     DPA        (7-0-0-1-0)
HB 2164         pharmacists; administration of immunizations
                 (HHS S/E: administration of immunizations; pharmacists)
  SPONSOR:      BARTO                HHS                   1/21     DP         (6-0-0-3-0)
                                     HHS                   3/4      DPA/SE ON REREF
                (7-0-0-2-0)
HB 2206         psychologist examiners board; omnibus
  SPONSOR:      BARTO                HHS                   2/11     DPA        (9-0-0-0-0)
HB 2207         behavior analysts
  SPONSOR:      BARTO                HHS                   2/11     DPA        (8-1-0-0-0)
                                     APPROP                2/18     DP         (9-2-0-2-0)

Committee on Judiciary
Analyst: Kristine Stoddard Intern: Robert Stout

HB 2063         recoverable jury costs

                                          Page 2 of 79
                  (JUD S/E: probation; registration; monitoring)
  SPONSOR:       KONOPNICKI         JUD                  3/5       DPA/SE     (8-0-0-0-0)
HB 2315          criminal sentencing
  SPONSOR:       DRIGGS             JUD                  2/5       DPA        (7-0-0-1-0)
HB 2316          sentencing; second degree murder
                  (JUD S/E: sentencing; drugs; second degree murder)
  SPONSOR:       DRIGGS             JUD                  2/5       DPA/SE     (7-0-0-1-0)
HB 2318          capital cases; aggravating factors
                  (JUD S/E: mortgage bankers; loan originators; fees)
  SPONSOR:       DRIGGS             JUD                  3/5       DPA/SE     (7-0-0-1-0)
HB 2331          federal immigration law; enforcement
  SPONSOR:       BOONE              JUD                  3/5       DPA        (4-3-0-1-0)
HB 2533          unlawful roadside solicitation of employment
  SPONSOR:       KAVANAGH           JUD                  3/5       DP         (4-3-0-1-0)

Committee on Military Affairs and Public Safety
Analyst: Thomas Adkins Intern: Scott Handler

HB 2136          state fire safety committee; membership
  SPONSOR:       WEIERS JP           MAPS               2/11         DP       (5-3-0-0-0)
HB 2448          national guard; morale, welfare fund
  SPONSOR:       WEIERS JP           MAPS               2/18         DP       (5-0-0-3-0)
                                     APPROP             2/25         DP       (10-0-0-3-0)
HB 2514          amateur radio; structures; accommodation
  SPONSOR:       MCLAIN              MAPS               3/11         DP       (5-3-0-0-0)

Committee on Natural Resources and Rural Affairs
HB 2250       public trust lands; use permit
  SPONSOR: MCLAIN                 NRRA                  2/9          DPA      (7-0-0-1-0)
HB 2275       technical correction; game and fish
                (NRRA S/E: mining study committee)
  SPONSOR: JONES                  NRRA                  2/16         DPA/SE   (7-0-0-1-0)
HB 2277       technical correction; agricultural extension
                (NRRA S/E: agricultural study committee)
  SPONSOR: JONES                  NRRA                  2/16         DPA/SE   (7-0-0-1-0)

Committee on Public Employees, Retirement and Entitlement Reform
Analyst: Stacy Weltsch Intern: Azra Hafizovic

HB 2111          ASRS; amendments
  SPONSOR:       BOONE             PERER               2/3           DPA      (8-0-0-0-0)
HB 2117          ASRS; public service credit; purchase
  SPONSOR:       BOONE             PERER               1/20          DP       (6-0-0-2-0)

Committee on Transportation and Infrastructure
Analyst: Ingrid Garvey Intern: Laureen Stadle

HB 2388          school crossings; signs
  SPONSOR:       BIGGS               TI                    2/19        DPA    (8-0-0-0-0)
HB 2480          regional transportation authorities; qualifying counties.
  SPONSOR:       JONES               TI                    3/5         DP     (7-1-0-0-0)
                                     WM                    3/11        DP     (7-1-0-0-0)
HB 2481          joint legislative committee; transportation; Mexico
  SPONSOR:       JONES               TI                    3/5         DP     (7-0-0-1-0)


                                           Page 3 of 79
Committee on Water and Energy
Analyst: Rene Guillen Intern: Becky Rubenstrunk

HB 2329         solar energy; permit fees
  SPONSOR:      BOONE              WE                    2/26    DPA   (8-0-0-0-0)
HB 2330         biodiesel fuel dispensers; labeling
  SPONSOR:      BOONE              WE                    2/12    DP    (7-0-0-1-0)
                                   ENV                   2/24    DPA   (6-0-0-2-0)

Committee on Ways and Means
Analyst: Kitty Decker Intern: Matt Stone

HB 2121         tax credit; schools; classroom materials.
  SPONSOR:      BOONE               WM                    3/11   DP    (7-1-0-0-0)
HB 2273         health services districts; voter approval
  SPONSOR:      CRUMP               WM                    2/2    DP    (4-2-0-2-0)
HB 2360         general obligation bond requirements
  SPONSOR:      MURPHY              WM                    2/9    DPA   (5-1-0-2-0)
HB 2363         GPLET; lease records and reporting
  SPONSOR:      MURPHY              WM                    3/11   DP    (8-0-0-0-0)




                                          Page 4 of 79
                            HB 2034 technical correction; ambulances
                                        Sponsor: Representative Barto

DPAS/E       Committee on Government

    X
             Caucus and COW

             House Engrossed

HB 2034 makes a technical correction.

A strike-everything amendment will be offered on HB 2034 which denies a homeowners’ association (HOA)
the authority to regulate any roadway, easement, or other area dedicated to a governmental entity.
History of the strike-everything amendment
Title 33, Chapters 9 and 16, Arizona Revised Statutes (A.R.S.), outline the regulatory requirements for
condominiums and Planned Communities (single-family homes) respectively, and are commonly known as
homeowners’ associations. The covenants, conditions and restrictions (CC&Rs) provide direction to the HOA, and a
board of directors (board) duly elected by the membership varies accordingly. Statute requires the board to manage
the activities of the HOA including adopting and amending bylaws/rules, requirements for casting votes, holding
open meetings, hiring and discharging managing agents and imposing and receiving fees, fines and assessments. The
HOA’s board is responsible for maintenance, repair and replacement of the common elements within the association,
as well as imposing penalties for violations of bylaws and rules.

A.R.S. § 33-1803 defines an association as a nonprofit corporation or unincorporated association of owners created
pursuant to a declaration to own and operate portions of a planned community and that has the power under the
declaration to assess association members to pay the costs and expenses incurred in the performance of the
association’s obligations under the declaration.

In some cases, when a planned community is being built, the developer will construct common areas as well
infrastructure for the community. The HOA of the planned community is given jurisdiction by the governing
documents over the private roadways within the planned community.
Provisions of the strike-everything amendment
       Stipulates that an HOA does not have the authority to regulate any roadway, easement or other area where the
        ownership has been dedicated to, or is otherwise under the legal authority of, a governmental entity.

       Clarifies that an HOA only has jurisdiction over roadways, easements and other areas under its ownership.

Amendments

Committee on Government

       The strike-everything amendment was adopted.




                                                     Page 5 of 79
HOUSE OF REPRESENTATIVES
                                                   HB 2063
                                             recoverable jury costs
                                 Sponsor: Representative Konopnicki

DPA/SE Committee on Judiciary

    X        Caucus and COW

             House Engrossed

HB 2063 adds summoned juror travel expenses to the jury fee.

               Summary of the proposed strike-everything amendment to HB 2063

History
GPS is a technology-aided method of monitoring criminal offenders. There are two main types: passive GPS and
active GPS. Passive GPS, which stores location data, is downloaded and transmitted to the appropriate probation
department. Active GPS, which closely approximates real-time, involves constantly transmitting information to a
probation department and to the GPS vendor via cellular towers.

Laws 2006, Chapter 368 required global position system (GPS) monitoring for persons convicted of Dangerous
Crimes Against Children (DCAC). Arizona Revised Statutes (A.R.S.) § 13-705 defines DCAC and prescribes
enhanced sentencing for certain crimes committed against victims who are under 15 years old; including but not
limited to sexual assault, child molestation, sexual exploitation, child prostitution, kidnapping, aggravated assault
resulting in serious physical injury, manufacturing methamphetamine under circumstances that cause physical injury,
attempted first degree murder, and second degree murder.

Laws 2007, Chapter 54 established the Joint Legislative Study Committee on GPS Monitoring (Committee). The
Committee was required to review issues relating to:
   1. The implementation of GPS as required by A.R.S. §§ 13-902 and 41-1604.08.
   2. The use of active GPS monitoring compared to the use of passive GPS monitoring and the costs associated
       with both systems.
   3. The crimes for which active or passive GPS monitoring should be required.
   4. The use of active and passive GPS monitoring in other states.
   5. The appropriate staffing levels to administer active or passive GPS monitoring.
   6. The role of a law enforcement agency in monitoring active or passive GPS.

The Committee met on November 6, 2007 and December 17, 2008. On December 17, 2008, the Committee made the
following recommendations:
     1. To continue the Committee for two years.
     2. To support the recommendation from the Arizona Department of Corrections regarding the Interstate
        Compact.
     3. To support using GPS monitoring devices for cases that benefit the greatest public safety.

Provisions
   Requires registered level three sex offenders be placed on GPS or electronic monitoring if serving a term of
    probation.

   Stipulates that any other persons serving a term of probation are not precluded from being subject to GPS or
    electronic monitoring.

Amendments
Committee on Judiciary
  The strike-everything amendment was adopted.

                                                    Page 6 of 79
Page 7 of 79
                               HOUSE OF REPRESENTATIVES
                                                    HB 2111
                                                ASRS; amendments
                                     Sponsor: Representative Boone

 X      Committee on Public Employees, Retirement and Entitlement Reform

        Caucus and COW

        House Engrossed
HB 2111 is an omnibus bill making various changes to the statutes governing the Arizona State Retirement System
(ASRS).

History
The Arizona State Retirement System manages retirement, health and long-term disability (LTD) benefits for state,
county and municipal employees. ASRS benefits are funded by member and employer contributions and by earnings
on investments. The ASRS has three funds: Retirement, Health Benefit, and Long Term Disability, to which the
employee and employer contributions are distributed according to actuarially determined contribution rates. Actuaries
are appointed by the board of directors of ASRS, and must make assessments according to statutory actuarial
standards.

Provisions
Average Monthly Salary
   Increases the final average salary calculation period from the highest 36 months out of the last 120 to the highest
    60 months out of the last 120 for new members hired after 7/1/10.
   Excludes from computation any month for which no contributions are reported to ASRS or any month that falls
    within a period of nonpaid or partially paid leave of absence or sabbatical.
   Allows the 60 months to entirely precede, be both before and after or be completely after any excluded months.
   Bases average monthly compensation for employees who were employed less than 60 consecutive months on the
    total consecutive months worked.

Normal Retirement
  Sets the normal retirement date calculation for new members hired after 7/1/10 at the first day that the sum or a
   member’s age and years of total credited service equals 85.
  Removes the cap on member benefits that prohibits a member from receiving more that 80% of his or her
   average monthly compensation.

Service Credit Transfers
   Stipulates that when an employee of a charter city who later becomes an ASRS member elects to have the
    employee’s service transferred, the service is not credited in the new retirement system until full payment is
    made for the service credit.
   States that once a transfer is completed a member’s rights in the former retirement system are terminated.


Return of Contributions
   Removes the current employer contribution refund structure and replaces it with a flat 25% refund of employer
    contributions after five years of service for new member hired after 7/1/10.

Public Service Credit Purchase
  Allows a member to purchase time worked for the government of a US commonwealth, insular area or overseas
   possession.

Return to Work
   Requires members to file an application for reretirement on a form approved by the director of ASRS to have
    their benefits reinstated after being re-employed by an ASRS employer.

                                                     Page 8 of 79
   Compels a member to be retired for 12 consecutive months before returning to work.
   Prohibits ASRS from suspending the payment of retirement benefits if a retired member returns to work in a
    position that:
        Results in a true change in position, job duties and job title from the position the member occupied before
         retirement;
        Either requires participation in another state retirement system and the member makes contributions or
         waives participation pursuant to A.R.S. §38-804(A), or permits a member to elect to participate in another
         state retirement system and the member elects to do so; and
        Does not require membership in the ASRS defined benefit plan.
   States that a retired member who returns to work does not accrue credited service, member service, additional
    account balances, retirement benefits or long-term disability (LTD) program benefits for the period the retired
    member returns to work.
   Stipulates the period the retired member returns to work is not eligible for purchase.
   Strikes the provision that a returning teacher work as a certified teacher.
   Makes a retired member’s election to return to work irrevocable for the remainder of the retired member’s
    employment.
   Mandates that the retired member acknowledge in writing the return to work statutes and file the
    acknowledgement with the employer within 30 days of returning to work.
   Requires an employer to pay an alternate contribution rate (ACR) on behalf of a retired member who returns to
    work before 12 consecutive months by becoming employed as a leased employee or independent contractor who
    performs services that would otherwise be performed by an active member.
   Excludes the period a retired member returns to work from the 12 month requirement for members whose most
    recent retirement begins on or after 7/11/10.
   Establishes that an actuary must determine the ACR in an annual valuation performed as of June 30, which will
    determine the percentage to be applied to the compensation of a retired member who returns to work.
   Sets the ACR at equal to the greater of 2 X the rate established by the actuary + the rate determined by the board
    – the employer normal cost OR 2%.
   Specifies that ASRS must determine the schedule and method of payment of the ACR.
   Makes all contributions made by the employer and allocated to the fund irrevocable, and states they must be used
    as benefits or to pay ASRS expenses.
   Indicates that payments made by employers become delinquent after the due date prescribed by the board’s rules
    and will be assessed with interest until paid.
   Sets forth methods for recovering delinquent payments.
   Requires an employer of a retired member to submit any reports, data, paperwork or materials requested by
    ASRS that are necessary to determine the compensation of or fees associated with a retired member who returns
    to work or to determine the use of the return to work program.
   Defines alternate contribution rate and employer.

Long-Term Disability
  Repeals the current LTD contribution rate calculation and replaces it with the following provisions:
      Designates an actuary to make an annual valuation to determine employee compensation and employer
       contributions to ASRS.
      Mandates that the annual actuarial assessment done as of June 30 of a calendar year will determine the
       compensation for the following year beginning July 1.
      States that all contributions made by employers into the LTD Trust Fund are irrevocable and shall be used as
       benefits under Article 2.1 or to pay LTD expenses.
      Explains that total employer contributions shall amount to the normal cost plus the amount required to repay
       the past contribution requirement.
      Instructs ASRS to have a preliminary report before November 30 of the assessment year.
      Instructs ASRS to provide a final report by January 15 of the contribution rate for the next fiscal year to the
       Governor, President of the Senate and Speaker of the House of Representatives.

Miscellaneous
   Beginning 7/1/10, requires a member to have at least five years of credited service in ASRS before electing to
    receive credit for:
        Public service
        Leave of absence without pay
        Active military service
   Repeals A.R.S. § 38-745, which was the result of a dual enactment.
   Repeals Laws 2007, Chapter 244, Section 4, which is a sunset provision of the military service purchase credit
    statute.
                                                    Page 9 of 79
   Appropriates $1,341,722 from the ASRS account in FY 2009-2010 to ASRS for administrative costs of
    implementing the act.
       Exempts appropriation from the provisions of §35-190, relating to the lapsing of appropriations.
   Makes §38-745 retroactive to from and after 6/30/09.
   Makes the repeals of statute effective to from and after 6/30/09.
   Amends definitions to reflect statutory changes.
   Makes technical and conforming changes.




                                             Page 10 of 79
                                HOUSE OF REPRESENTATIVES
                                                    HB 2117
                                      ASRS; public service credit; purchase
                                      Sponsor: Representative Boone

DP         Committee on Public Employees, Retirement and Entitlement Reform

    X      Caucus and COW

           House Engrossed

HB 2117 permits the purchase of public service worked for the government of US commonwealths,
insular areas, and overseas possessions.

History
Currently, section 38-743 only refers to active Arizona State Retirement (ASRS) members that were previously
employed by the United States government, state, or political subdivision. Section 38-743 allows such members to
receive service credits for their work in the aforementioned areas as long as they pay the appropriate actuarial amount
into ASRS.

Last year, ASRS received requests from two members to purchase the time they worked for the
governments of Puerto Rico and the Northern Mariana Islands, both of which are Commonwealths of
the United States and not Territories. This bill would permit the purchase of public commonwealth
service.

Provisions
       Allows a member to purchase time worked for the government of a US commonwealth, insular area or overseas
        possession.




                                                    Page 11 of 79
                                 HOUSE OF REPRESENTATIVES
                                                     HB 2121
                                      tax credit; schools; classroom materials.
                                       Sponsor: Representative Boone

DP          Committee on Ways & Means

    X       Caucus and COW

         House Engrossed
HB 2121 expands the public school income tax credit to include contributions for textbooks, classroom technology or
instructional materials.

History
Arizona allows individual taxpayers an income tax credit for contributions to public schools to support extracurricular
activities and character building programs. The credit cannot exceed $200 for a single individual and $400 for a
married couple filing joint. The income tax credit may be carried forward for up to five years for donations above the
allotted amounts. The site council of a public school shall decide how to use the contribution monies if a specific
purpose is not designated.

Character education programs include instruction through the use of activities, discussions, visual media, literary
presentations, or teachers or mentors who demonstrate the character traits, in at least six of the following:
truthfulness, responsibility, compassion, diligence, sincerity, trustworthiness, respect, attentiveness, obedience,
orderliness, forgiveness, virtue, fairness, caring, citizenship and integrity.

Extracurricular activities include school sponsored activities that enrolled students must pay a fee to participate.
This does not include recreational or senior trips.

This bill will allow the extracurricular tax credit revenues received by a school to be used to purchase textbooks,
instructional materials and any type of classroom technology. These are typically referred to as “soft capital” items.
Currently, the state funding formula for a school’s equalization base contains a per pupil amount for Capital Outlay
Revenue Limit (CORL) and a Soft Capital Allocation.

CORL is derived by multiplying a per-pupil amount, adjusted for growth, by student enrollment. For high schools,
the CORL generates an additional allowance for textbooks. Originally, these monies were intended for capital
purposes; however, they can be used for any purpose. The Soft Capital funds are calculated by multiplying $225 by
the school district’s student count. These monies can be used for soft items with short useful lives, such as computers
and lab equipment, furniture and school buses. The current fiscal year budget adjustment adopted by the Legislature
in January reduced the Soft Capital Allocation by $21 million.

Provisions
       Expands the public school income tax credit to allow for contributions for textbooks, classroom technology or
        instructional materials.




                                                     Page 12 of 79
                                 HOUSE OF REPRESENTATIVES
                                                      HB 2136
                                      state fire safety committee; membership
                                      Sponsor: Representative Weiers JP


DP          Committee on Military Affairs and Public Safety

    X       Caucus and COW

            House Engrossed

HB 2136 adds a member of the public who distributes, sells or provides liquid petroleum gas to consumers to the
State Fire Safety Committee (Committee).

History
Pursuant to A.R.S. § 41-2146, the Committee consists of seven members who are appointed for three year terms by
the Governor. The Committee consists of:
       Two members who are fire chiefs or marshals from cities with over 100,000 people.
       One member who is a fire chief or marshal from a city with less than 100,000 people.
       One member who is a member from the Arizona Fire Chiefs’ Association.
       One member who is an architect.
       One member who is a chief building official of a county or municipality.
       One member who is a member of the public.

The Committee meets on the call of the chairperson or on the request of at least four members and sets a state fire
code with minimum standards for:
       Safeguarding life and property from fire and fire hazards.
       Prevention of fires and alleviation of fire hazards.
       Storage, sale, distribution and use of dangerous chemicals, combustibles, flammable liquids, explosives and
        radioactive materials.
       Installation, maintenance and use of fire escapes, fire protection equipment, fire alarm systems, smoke
        detectors and fire extinguishing equipment.
       The means and adequacy of fire protection and exit in case of fire in places where people work, live or
        congregate.
       Other matters relating to fire prevention and control.

The Committee also adopts rules for the allocation of monies from the Arson Detection Reward Fund.

Provisions
       Expands the Committee to include a member of the public who sells, provides, or distributes petroleum gas.
       Changes the number of members needed to call a meeting from four to five.
       Makes technical and conforming changes.




                                                      Page 13 of 79
                            HB 2158 adult immunization information system
                                             Sponsor: Representative Barto

DP           Committee on Health and Human Services

    X
             Caucus and COW

             House Engrossed
HB 2158 establishes an adult immunization information system (System) under the Department of Health Services
(DHS), and gives health care professionals the option of reporting adult immunization information to the DHS for
inclusion in the system, and allows patients to request that their information not be disclosed.
History
Arizona Revised Statutes (A.R.S.) § 36-135 requires health care professionals to report to the DHS about all
immunizations they administer to children in Arizona. They must make reports at least monthly, and provide the
following information for each vaccine administered:

             The health care professional’s name, business address, and business phone number.

             The child’s name, address, social security number, gender, date of birth, and mother’s maiden name.

             The type of vaccine administered and the date it was administered.

The DHS collects this information in an electronic registry called the Arizona State Immunization Information
System (ASIIS). The DHS is authorized to release identifying information from the ASIIS to a child’s health care
professional, parent, guardian, health care service organization, the Arizona Health Care Cost Containment System
(AHCCCS), and certain school officials. The DHS may also release nonidentifying summary statistics based on
ASIIS data for public use.

A.R.S. § 36-135 further provides that identifying information in the ASIIS is confidential, and prescribes penalties for
agencies and health care professionals that disclose such information or otherwise violate regulations related to the
ASIIS. A parent or guardian may also request that a child’s immunization information be withheld from the ASIIS
altogether.
Provisions
           Establishes the System to collect, store, analyze, release, and report adult immunization data, and to collect,
            store, and release titers and other measures of protection against vaccine-preventable diseases.

           Permits a health care professional licensed to provide immunizations to report the following information to the
            DHS:

             The health care professional’s name, business address, and business phone number.

             The patient’s first name, middle initial, and last name.

             The patient’s date of birth, address, sex, and social security number, if known and not confidential.

             The type of vaccine administered and the date it was administered.

             The type of vaccine-preventable titer or measure collected, the date it was collected, and the results.

           Allows health care professionals to submit this information weekly or monthly, by computer, or by another
            method prescribed by the DHS.

           Limits the parties to which the DHS can release this information to the following:

           The patient’s health care professional, guardian or health care insurer.

           The AHCCCS and its providers.


                                                          Page 14 of 79
   Any other person for a specified purpose, as prescribed by the DHS by rule.

   Stipulates that a health care insurer can use information released to it from the System only for quality
    assurance purposes, and explicitly prohibits insurers from using this information for rating purposes.

   Provides that the DHS may release non-identifying information for summary statistics.

   Stipulates that identifying information in the System is confidential, and prohibits anyone authorized to receive
    such information from disclosing it to any other person.

   Specifies that a cause of action is not created against a health care professional who provides immunization
    information to the System in good faith, and is not subject to criminal liability.

   Provides that it is a class 3 misdemeanor for a person or agency authorized to receive immunization
    information to disclose that information to any other person.

   Requires the DHS to provide a form allowing an adult patient’s information to be withheld from all persons,
    including those authorized to receive information through the System.

   Defines health care insurer.




                                                  Page 15 of 79
                      HB 2159 board of podiatry examiners; continuation
                                          Sponsor: Representative Barto

DP        Committee on Health and Human Services

    X
          Caucus and COW

          House Engrossed
HB 2159 continues the Arizona State Board of Podiatry Examiners (Board) until July 1, 2011.
History
Arizona Revised Statutes (A.R.S) § 32-802 establishes that the Board consists of five individuals appointed to serve
for five years terms. Three of the Board members must have been living and practicing podiatry in Arizona for at
least two years. The two additional members are lay persons. The Board is responsible for licensing podiatrists in
Arizona, investigating complaints made against podiatrists, and acting upon their investigations. A.R.S. § 32-801
defines podiatry as the diagnosis or medical, surgical, mechanical, manipulative or electrical treatment of ailments of
the human foot and leg, but does not include amputation of the foot, toe or leg nor administration of an anesthetic
other than local. According to the Board, there are 364 licensed podiatrists in Arizona.

A.R.S. § 41-3009.01 terminates the Board on July 1, 2009.
Provisions
       Repeals statute related to the termination of the Board.

       Continues the Board until July 1, 2011.

       Contains a purpose clause.

       Includes a retroactivity date of July 1, 2009.




                                                         Page 16 of 79
                                     HB 2160 chiropractic practice
                                        Sponsor: Representative Barto

DPA       Committee on Health and Human Services

DPA       Committee on Banking and Insurance

    X
          Caucus and COW

          House Engrossed
HB 2160 modifies the language specifying what types of treatment a chiropractor may engage in.
History
Arizona Revised Statutes § 32-925 states that a doctor of chiropractic is a portal of entry health care provider who
engages in the practice of health care that includes treatment by adjustment of the spine or bodily articulations, and
those procedures complementary to the adjustment including physiotherapy, orthopedic supports, and acupuncture.
Provisions
       Adds physical medicine modalities and therapeutic procedures to the list of treatments a chiropractor may
        provide.

       Removes physiotherapy from the list of treatments a chiropractor may provide.

       Clarifies that chiropractors may provide treatment related to neuromuscular skeletal disorders and may
        prescribe orthopedic supports.

Amendments

Committee on Health and Human Services

       Defines physical medicine modalities and therapeutic procedures.

Committee on Banking and Insurance

       Explains that chiropractors who are certified in a specialty before the effective date of the amendment are
        deemed to be certified in physical medicine modalities and therapeutic procedures.

Makes technical and conforming changes.




                                                    Page 17 of 79
                                 HOUSE OF REPRESENTATIVES
                                                      HB 2164
                                  pharmacists; administration of immunizations
                                        Sponsor: Representative Barto

DPA
/SE Committee on Health and Human Services

    X       Caucus and COW

            House Engrossed

HB 2164 allows pharmacists who are certified by the Board of Pharmacy (Board) to administer certain
immunizations to adults without a prescription. It also requires the Board to appoint an advisory committee to assist
in the development of protocols related to the certification.

                               Summary of the proposed strike-everything amendment
The proposed strike-everything amendment pertains to the same subject.

History
The Arizona Pharmacy Alliance submitted a sunrise application to the Health Committee of Reference (COR) in
2008 requesting an expansion in the scope of practice for pharmacists to allow them to provide immunizations to
adults without a prescription. On December 15, 2008, the COR recommended that pharmacists’ scope of practice be
expanded in accord with the sunrise application.

Currently, pursuant to Arizona Administrative Code R4-23-411, licensed pharmacists who are certified to do so may
administer certain immunizations, vaccines, and emergency medications upon receipt of a valid prescription. The
qualifications specified in rule for a pharmacist to obtain certification include having an unrestricted license, having
successfully completed a training program, and having current certification in basic CPR. The rule also stipulates
certain recordkeeping and reporting requirements, including that the pharmacist provide a written report to the
patient’s primary health care provider within fourteen days of the immunization.

The United States Center for Disease Control and Prevention (CDC) publishes the following documents: Adult
Immunization Schedule and Health Information for International Travel. The first lists the following ten vaccines:
1)tetanus, diphtheria, pertussis; 2)human papillomavirus; 3)varicella; 4)zoster; 5)measles, mumps, rubella;
6)influenza; 7)pneumococcal; 8)hepatitis A; 9)hepatitis B; 10)meningococcal. The second contains additional
vaccination recommendations depending on the destination of travel.

Provisions
       Allows a licensed and certified pharmacist to administer the following to adults without a prescription order
        pursuant to rules and protocols adopted by the Board:
             o Immunizations or vaccines listed in the CDC’s recommended Adult Immunization Schedule.
             o Immunizations or vaccines recommended by the CDC’s Health Information for International Travel.
       Requires the Board to issue a certificate to a pharmacist who meets Board requirements for certification, as
        prescribed by the Board by rule.
       Allows a certified pharmacist to administer emergency epinephrine and diphenhydramine to manage an acute
        allergic reaction to an immunization or vaccine.
       Indicates a pharmacist who administers an immunization, vaccine, or emergency medication must do the
        following:
             o Report the administration to the person’s primary care provider, if available, within forty-eight hours
                  after the administration, as prescribed by the Board by rule.
             o Report information to any adult immunization information system or vaccine registry established by the
                  Department of Health Services.
             o Maintain a record of the immunization as required by law.
             o Participate in any federal vaccine adverse event reporting system or successor database.


                                                      Page 18 of 79
   Establishes that a patient’s primary care provider is immune from civil liability for any adverse reaction,
    complication, or negative outcome arising from the administration of any immunization, vaccine, or emergency
    medication by a pharmacist.
   States the Board shall adopt rules regarding the following:
         o Protocols based on protocols approved by the CDC and an advisory committee appointed by the Board
             for the purpose of recommending protocols.
         o Record keeping and reporting requirements.
         o Requirements and qualifications for pharmacist certification.
         o Vaccine information and educational materials for those requesting vaccines and immunizations.
         o The administration of emergency medication.
   Stipulates that the Department of Health Services (DHS) shall establish by rule a list of immunizations or
    vaccines that may be administered by a pharmacist only pursuant to a prescription order, within six months of
    receipt of recommendations from the advisory committee.
         o Exempts the DHS from the rule making requirements to establish the list, except that one public hearing
             shall be held before implementing or amending the rules.
         o Stipulates that pharmacists may not administer immunizations without a prescription order until the
             DHS establishes the list.
         o Specifies that pharmacists may not be authorized to administer new immunizations without a
             prescription until the DHS reviews them to determine if they should be added to the list.
   Allows the Board to appoint an advisory committee to assist the Board in adopting and amending rules and
    developing protocols relating to the administration of immunizations, vaccines, and emergency medications.
   Specifies the advisory committee shall include the following members:
         o Two licensed pharmacists.
         o One licensed allopathic physician, who specializes in primary care.
         o One licensed osteopathic physician, who specializes in primary care.
         o One licensed registered nurse, who had prescribing and dispensing authority.
         o One licensed physician assistant.
         o One representative from a nonprofit immunization organization that works to establish a
             comprehensive, sustained community program for the immunization of the citizens of Arizona.
   Stipulates that advisory committee members are not eligible for compensation or reimbursement of expenses.
   Repeals the advisory committee on December 31, 2011.
   Defines emergency medication.

Amendments
Health and Human Services:
   o The strike-everything amendment was adopted.
   o A clarifying amendment to the strike-everything amendment was adopted.




                                                  Page 19 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2206
                                       psychologist examiners board; omnibus
                                         Sponsor: Representative Barto

DPA Committee on Health and Human Services

    X       Caucus and COW

            House Engrossed

HB 2206 makes a variety of changes to the Board of Psychologist Examiners’ statutes related to training
requirements, licensure, disciplinary actions, and substance-abuse rehabilitation.

History
The Arizona Board of Psychologist Examiners (Board) licenses and regulates psychologists in Arizona. Arizona
Revised Statutes (A.R.S.) § 32-2071 requires applicants for licensure to have completed a minimum of 3,000 hours of
supervised professional experience, and specifies what constitutes supervised professional experience.

A.R.S. § 32-2061 establishes that it is an act of unprofessional conduct for a psychologist to fail to report information
to the Board regarding a possible act of unprofessional conduct committed by another psychologist unless the
disclosure would violate statutory confidentiality requirements.

A.R.S. § 32-2071.01 requires an applicant for licensure to demonstrate to the Board’s satisfaction that the applicant
has a professional record that indicates that the applicant has not engaged in any conduct that would constitute
grounds for disciplinary action and has not had a license to practice psychology refused, revoked, or suspended in
another jurisdiction.

A.R.S. § 32-2075 states that psychologists licensed in other states may practice in Arizona for up to twenty days per
year if the services they are providing are within their customary area of practice and their clients are informed that
they are not licensed in Arizona.

A.R.S. § 32-2086 allows the Board to establish a program for the treatment and rehabilitation of psychologists who
are impaired. It also requires that a psychologist who is impaired and refuses to enter into a stipulated order with the
Board shall be placed on probation or subject to other disciplinary action.

Provisions
       Clarifies that it is not an act of unprofessional conduct if a licensee follows ethical standards adopted by the
        American Psychological Association, as it relates to reporting possible acts of unprofessional conduct committed
        by other psychologists.
       Allows the Board to establish fees and penalties at its annual fall meeting instead of requiring them to do so.
       Permits the Executive Director to enter into agreements to allow licensees to pay fees by alternative methods
        including: credit cards, charge cards, debit cards, and electronic funds transfers.

                                    Training Requirements for Applicants for Licensure

       Stipulates that an applicant for licensure shall obtain half of their 3,000 hours of supervised professional work
        experience through any combination of the following: supervised preinternship professional experiences,
        additional internship hours, or supervised postdoctoral experiences.
       Indicates that if an applicant chooses to include up to 1,005 hours of supervised preinternship professional
        experience to satisfy his or her professional work experience requirements, the experience must be organized to
        provide increasing complexity to prepare the applicant for an internship, there must be a written training plan
        between the student and training program that meets certain requirements, and every twenty hours of the
        experience must be divided in the following manner:
                At least 50 percent must be in psychological service-related activities.
                At least 25 percent must be devoted to face-to-face patient-client contact.

                                                       Page 20 of 79
            At least one hour per week of face-to-face individual supervision per ten hours of the experience must
             address the direct psychological services provided by the student.
   Requires that applicants provide the Board their written training plan documenting their total hours accrued
    during their supervised preinternship professional experiences, which must include ethics training throughout,
    and must be completed within seventy-two months.
   Allows the applicant to have not more than 20 percent of his or her face-to-face supervision completed using
    confidential real time visual telecommunication or other confidential electronic means during his or her
    supervised professional experience.
   Reduces to eighteen semester hours the number of hours required for residency.

                                                        Licensure

   Allows the Board to issue a license to an applicant that has been the subject of disciplinary action in another
    jurisdiction or who has engaged in conduct that would have resulted in disciplinary action in Arizona, if the
    conduct has been corrected and resolved or mitigating circumstances exist.
   Specifies that an applicant has met the educational institution qualifications for licensure if the applicant earned
    his or her doctoral degree from a program that was accredited by the American Psychological Association,
    Office of Program Consultation and Accreditation at the time of graduation.
   Permits the Board to cancel a license at the request of the licensee if the licensee is not under investigation or
    subject to any disciplinary proceeding.
   Allows psychologists licensed outside of Arizona to practice within Arizona for greater than twenty days if they
    are assisting in public service related to a disaster acknowledged by the Board.




                                                   Disciplinary Action

   Clarifies that the Board shall not consider a complaint against a psychologist arising out of a court ordered
    evaluation or treatment to present a charge of unprofessional conduct unless the court has found a substantial
    basis to refer the complaint to the Board.
   Allows the Board to enter into a consent agreement with a psychologist at any time during an investigation or
    disciplinary process if it can take rehabilitative or disciplinary action that restricts the psychologist’s practice and
    protects the public.
   Stipulates that the Board may require a psychologist to successfully complete a rehabilitative, retraining, or
    assessment program at the psychologist’s expense.

                                             Substance-abuse Rehabilitation

   Allows the Board’s treatment and rehabilitation program for psychologists to be confidential.
   Indicates the Board may require a psychologist who has been placed on a probation order or who has entered into
    a stipulation order to submit to examinations for alcohol or illegal substances for up to five years after the
    termination of the order.
   Specifies that a psychologist who is impaired must ask the Board to place his or her license on inactive status
    with cause, and if the psychologist fails to do so, the Board must suspend his or her license.
   Requires psychologists to successfully complete a treatment program to have their licenses reactivated.
   Directs the Board to determine after a psychologist completes treatment whether his or her license should be
    reactivated without restrictions or the matter should be referred to a formal hearing to evaluate what action
    should be taken against the licensee.
   Allows the Board to revoke the license of a psychologist found to be impaired if the psychologist had previously
    been on probation for impairment.
   Permits the Board to accept the surrender of a license if the psychologist admits in writing to being impaired.
   Exempts treatment providers in the Board’s substance abuse treatment program from civil liability if they act in
    good faith, for the actions of psychologists attending their program.

Amendments
Health and Human Services:
  Makes technical changes.



                                                      Page 21 of 79
                                   HOUSE OF REPRESENTATIVES
                                                         HB 2207
                                                     behavior analysts
                                          Sponsor: Representative Barto

DPA Committee on Health and Human Services

    DP       Committee on Appropriations

    X        Caucus and COW

             House Engrossed

HB 2207 makes changes and includes additions to the statutes enacted last year regarding the licensure and regulation
of behavior analysts.

History
Laws 2008, Chapter 288, § 2 established the licensure and regulatory framework for behavior analysts under the
Board of Psychologist Examiners (Board). As it relates to behavior analysts, the Board is charged with establishing
fees and ensuring that applicants and licensees meet the qualifications, education, training, examination, and
continuing education requirements. The statute also included exemptions from licensure. The Board may issue a
license to a behavior analyst from another state if the applicant meets certain qualifications.
Additionally, the Board is charged with executing disciplinary and investigative actions. Laws 2008, Chapter 288, §
2 sets forth confidentiality provisions and allows the Board to file for an injunction under certain circumstances.
Further, the statute stipulates that it is a Class 2 misdemeanor for anyone not licensed to engage in the practice of
behavior analysis, to secure a license to practice by means of fraud or deceit, impersonate a member of the Board in
order to issue a license to practice, or to use any combination of words, initials, and symbols that may lead the public
to believe the person is licensed to practice as a behavior analyst.
Arizona Revised Statutes § 32-2091 defines behavior analysis as the design, implementation, and evaluation of
systematic environmental modifications by a behavior analyst to produce socially significant improvements in human
behavior.

Provisions
        Establishes a separate account within the Board Fund (Fund) that must be used only for licensing and regulation
         of behavior analysts.
        Requires that any monies transferred into the Fund for licensing and regulation of psychologists must be used
         only for licensing and regulation of psychologists.
        Allows the Board to accept gifts, grants, or donations for deposit into the Fund for licensing and regulation of
         behavior analysts.
        Specifies that unprofessional conduct for a behavior analyst includes representing oneself as a psychologist.
        Delays until 2011 the requirement that behavior analysts be licensed to practice in Arizona.
        Allows the Board to issue a license to a certified or licensed behavior analyst from another state which has
         essentially the equivalent requirements as Arizona.
        Contains a conditional repeal from and after June 30, 2010.
        Exempts the Board from rule making requirements until September 26, 2011.
        Specifies that monies in the Fund are exempt from the lapsing of appropriations.
        Defines the term incompetent as a behavior analyst.
        Makes technical and conforming changes.

Amendments

                                                         Page 22 of 79
Health and Human Services:
  Makes technical changes.




                              Page 23 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2238
                                             AHCCCS; DES; fraud reduction
                                          Sponsor: Representative Seel

DP          Committee on Health and Human Services

    X       Caucus and COW

        House Engrossed
HB 2238 requires the Arizona Health Care Cost Containment System (AHCCCS) and the Department of Economic
Security (DES) to contract with private entities for fraud reduction technology to verify that applicants and enrolled
members meet eligibility requirements, if after a pilot project, it is determined that savings generated by the fraud
reduction technology can be used to fund the contract for the fraud reduction technology.
History
The AHCCCS administers programs related to the provision of health care services to persons who meet eligibility
requirements dependent on the program applied for. Criteria for eligibility include, among other factors: household
income, age, residency status, whether a woman is pregnant, and whether a person is disabled. Some eligibility
groups are mandated by federal law, while others were approved by the voters via ballot initiative. The AHCCCS
administers acute-care and long-term care programs, as well as supplemental assistance for Medicare beneficiaries.

The DES provides a variety of services for eligible persons. Similar to the AHCCCS, eligibility criteria varies
depending on the program, and may be required by federal law. The following are among the many programs DES
administers:
       Child support enforcement assistance.
       Services for developmentally disabled persons.
       Child care assistance.
       Food Stamps.
       Unemployment benefits.
       Behavioral health services.
       Temporary Assistance for Needy Families.
Provisions
       Requires the AHCCCS and the DES to contract with a private entity for fraud reduction technology in order to:
            Identify cases of multiple users of social security numbers and multiple addresses.
            Review state and national property-ownership records.
            Screen and collect data as directed by the agencies.
       Stipulates that the agencies must use collected data to verify eligibility of applicants for and recipients of that
        agency’s services and benefits.
       Requires the AHCCCS and the DES to request a pilot of the fraud reduction technology to assess the
        effectiveness of the technology and to estimate potential cost savings before entering into a contract with a
        private entity.
       Requires the contract with the private entity to be funded by savings generated by the fraud reduction
        technology.




                                                        Page 24 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2250
                                             public trust lands; use permit
                                        Sponsor: Representative McLain

DPA Committee on Natural Resources and Rural Affairs

    X       Caucus and COW

       House Engrossed
House Bill 2250 allows the State Land Department to issue a permit for the use of public trust lands along the
Colorado River without a public auction.

History
A.R.S. § 37-1101 defines public trust land as “the portion of the bed of a watercourse that is located in this state and
that is determined to have been a navigable watercourse as of February 14, 1912. Public trust land does not include
land held by this state pursuant to any other trust.”

The State Land Department (Department) is authorized to permit the use of public trust lands to a public or private
entity or private person. The permitted use must be consistent with and in the best use of the public trust. If a person
has requested notice from the Department on permitting actions, the Department must provide written notice and a
chance to comment on the permit at least 30 days before the permit is issued. The Department is also allowed to
lease rights-of-way in public trust lands for 10-year periods without holding public auctions. (A.R.S. § 37-1153)

Provisions
       Allows the Department to authorize the use of public trust land along the Colorado River by a political
        subdivision through an application and permitting process.
            The uses are not subject to public auction requirements if consistent with and in the best interests of the
             public trust.
       Stipulates that the permit is conditional on the Department’s determination if the use will be consistent with and
        in the best interest of the public trust.
       Provides that the use can only continue if the lands are used as granted under the permit.
       Mandates that the permit contain terms and conditions to ensure that the use granted under the permit protect the
        public trust interests in the land.
       Makes technical and conforming changes.

Amendments
Natural Resources and Rural Affairs
  Allows the State Land Commissioner to issue permits without a public auction for any state lands, except for
   state lands held in trust according to Article X, Arizona Constitution.
  Allows a public entity to be granted a permit for the use of public trust lands without a public auction.




                                                       Page 25 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2265
                                      child care facilities; licensure; exemptions
                                        Sponsor: Representative Crump

DPA
S/E Committee on Health and Human Services

    X       Caucus and COW

            House Engrossed

HB 2265 creates a new exemption from the child care facility licensure statutes.

                             Summary of the proposed strike-everything amendment
The proposed strike-everything amendment modifies an existing exemption to the child care facility licensure
statutes.

History
Arizona Revised Statutes (A.R.S.) § 36-882 states that a child care facility shall not receive any child for care,
supervision, or training unless the facility is licensed by the Department of Health Services. A.R.S. § 36-884 provides
for the exemption of certain facilities from the licensure requirements for child care facilities. Exempt entities
include:

        o   Homes of parents or blood relatives.
        o   Religious institutions, under certain circumstances.
        o   Public and private schools, except when providing child care outside of school hours to children not of
            school age.
        o   Facilities that provide training in specific subjects such as dance, drama, music, and self-defense.
        o   Facilities that provide only recreational or instructional activities to school age children who may come and
            go at their own volition.

Provisions
       Allows facilities that are exempt based on the fact that children may come and go of their own volition to require
        documentation of the entrance and departure of children from their facilities without affecting their exempt
        status.
       Requires these facilities to post a notice stating they are not licensed child care facilities.

Amendment
Committee on Health and Human Services:
  The proposed strike-everything amendment was adopted.
  Allows the facilities to require children to document their entrance and departure (adopted as a verbal
   amendment to the strike-everything amendment).




                                  HOUSE OF REPRESENTATIVES
                                                       HB 2268
                                             county and municipal budgets
                                        Sponsor: Representative Crump




                                                       Page 26 of 79
DPA Committee on Government

    X       Caucus and COW

            House Engrossed

HB 2268 allows for counties, cities, and towns to post estimates of expenses on their official internet websites.

History
Arizona Revised Statutes (A.R.S.) § 42-17101 requires the governing body of each county, city and town to prepare:
             A full and complete statement of the political subdivision’s financial affairs for the preceding fiscal
                year.
             An estimate of the different amounts that will be required to meet the political subdivision’s public
                expense for the current fiscal year.
             A summary schedule of estimated expenditures and revenues.

Current law further requires each county, city, and town to create a detailed annual estimate of expenses including:
              An estimate of the amount of money required for each item of expenditure necessary for the
                  county, city, or town purposes.
              The amount necessary to pay the interest and principal of outstanding bonds.
              The items and amounts of each special levy provided by law (A.R.S. § 42-17102).

A.R.S. § 42-17104 mandates that the governing body of each county, city, or town hold a public hearing and a special
meeting on or before the 14th day before the day on which it levies taxes. Any taxpayer is allowed to attend and be
heard in favor or against the proposed expenditure or tax levy.

Provisions
       Eliminates the requirement for the governing body of each county, city, or town to hold a special meeting to hear
        from taxpayers and make tax levies.
       Stipulates that the total estimated revenues and expenditures by fund type must be included in the summary.
       Requires a complete copy of the estimates of expenses to be made available at the county, city, or town libraries
        and administrative offices, or to be posted on their official internet websites.
       Makes technical and conforming changes.

Amendments
Committee on Government
  Requires counties, cities, and towns to post their estimates of expenses on their official website in addition to
   making them available at their libraries and administrative offices.
  Requires a summary of the estimates and a notice, together with the library addresses and websites where the
   complete copy of the estimates of expenses may be found, to be published for once a week for at least 2
   consecutive weeks in the official county, city, or town newspaper.




                                                       Page 27 of 79
                               HOUSE OF REPRESENTATIVES
                                                     HB 2273
                                     health services districts; voter approval
                              Sponsors: Representatives Crump: Murphy

DP      Committee on Ways and Means

 X      Caucus and COW

        House Engrossed

HB 2273 eliminates the option to form a Public Health Services District (District) by unanimous
vote of the county Board of Supervisors.

History
Most special taxing districts require voter approval prior to levying a tax. Laws 2000, Chapter 11, provided the
authority for a county Board of Supervisors (Board) to establish a District by means of a public election or by a
unanimous vote of the Board. The District must have the same boundaries as the county. If the District is formed by
a majority vote of the qualified electors, the county must maintain expenditures for public health at no less than fifty
per cent of the average expenditures for the three years prior to the formation of the District. If the District is formed
by unanimous vote of the Board, the expenditures must be no less than sixty per cent of the average of the prior three
years expenditures.

Once formed, a District may levy a transaction privilege tax or a secondary property tax for the purposes of funding
the District. The District Board, consisting of the members of the county Board of Supervisors, may employ a public
health director and use revenues from the tax for the purpose of providing public health services to the District.

In 2006, SB 1217 was passed by the Legislature to require any new District to only be formed by voter approval.
Governor Napolitano vetoed that legislation. At the time of passage, there were only two counties that had a District,
Navajo and Yuma counties. Since that time, three more counties have created a District without an election. Those
counties are Apache, Greenlee and Pinal.

Provisions
  Beginning January 1, 2009, removes the option to form a District by unanimous vote of the county Board of
   Supervisors.




                                                     Page 28 of 79
                               HOUSE OF REPRESENTATIVES
                                                   HB 2275
                                       technical correction; game and fish
                                      Sponsor: Representative Jones

DPA
S/E        Committee on Natural Resources and Rural Affairs

    X      Caucus and COW

       House Engrossed
House Bill 2275 changes the reference to ACROR Enterprises to Arizona Correctional Industries.

A Strike-Everything Amendment to HB 2275 was adopted in the Committee on Natural Resources and Rural
Affairs as follows:

History of the Strike-Everything Amendment
The State Mine Inspector (Inspector) is charged with inspecting every active underground mine employing 50 or
more persons at least once every three months. The Inspector examines operations, equipment, safety appliances,
conditions, safety precautions and the cause of accidents and deaths that occur at a mine. Any inactive mine can also
be entered and inspected to determine if there are dangerous conditions that could affect the safety of the public.
(A.R.S. § 27-124)

The Department of Mines and Mineral Resources (Department) has the responsibility to promote mineral resources in
Arizona. The Department maintains a repository of mineral and mining information and provides mining data,
evaluation and assistance to promote mineral development. A mining and mineral museum is also operated and
maintained by the Department. (A.R.S. § 27-102)

Provisions of the Strike-Everything Amendment
       Established the Mining Study Committee (Committee) consisting of the following members:
            Three members of the House of Representatives.
            Three members of the Senate.
                No more than two members from each legislative body may be from the same political party.
            The Governor or the Governor’s designee.
            The Director of the Department of Mines and Mineral Resources or the Director’s designee.
            The State Mine Inspector or the Inspector’s designee.
            The Director of the Department of Environmental Quality or the Director’s designee.
            The Director of the Department of Water Resources or the Director’s designee.
            The State Land Commissioner or the Commissioner’s designee.
       Mandates that the Committee:
            Meet at least once each year.
            Elect a chairperson and vice-chairperson, at the first meeting.
            Members are not eligible for compensation.
       Specifies that quorum for the Committee consists of at least four legislative members.
       Requires the Committee to:
            Review mining regulation affecting development and operations.
            Assess the rules regarding all aspects of mining operations, including:
                Purpose.
                Counterproductively.
                Scientific basis.
                Burdens and expenses imposed on mining industries.
                Redundancies.
       Instructs the Committee to formulate recommendations for coordinating and reorganizing procedures and
        information between agencies.
       Directs the Committee to review the feasibility of creating a centralized land information database.
       Mandates the Committee file a report with the results and recommendations by December                31
        of 2009 and 2010, and to be given to:

                                                   Page 29 of 79
      The Governor.
      The President of the Senate.
      The Speaker of the House of Representatives.
      The Secretary of State.
      Arizona State Library, Archives and Public Records.
      Any other person requesting a copy.
   Repeals the Mining Study Committee from and after December 31, 2010.

Amendments
The Strike-Everything Amendment to HB 2275 was adopted in the Natural Resource and Rural Affairs
Committee.

An Amendment to the Strike-Everything Amendment was adopted in the Natural Resources and Rural Affairs
Committee as follows:
  Clarifies that it is the Department of Environmental Quality and the Department of Water Resources which are to
   have representation on the Mining Study Committee.




                                                  Page 30 of 79
                               HOUSE OF REPRESENTATIVES
                                                   HB 2277
                                  technical correction; agricultural extension
                                      Sponsor: Representative Jones

DPA
S/E        Committee on Natural Resources and Rural Affairs

    X      Caucus and COW

       House Engrossed
House Bill 2277 defines cooperative agricultural extension work to include demonstrations and information in the
field.

A Strike-Everything Amendment to HB 2277 was adopted in the Committee on Natural Resources and Rural
Affairs as follows:

History of Strike-Everything Amendment
The Arizona Department of Agriculture (Department) is divided into three main divisions; Animal Services, Plant
Services and Environmental Services. The Department regulates pesticides, fertilizer and seeds and maintains worker
safety and environmental standards. The Department also monitors the quality of produce, citrus, eggs, meat and
dairy products. Inspecting for infectious and contagious diseases to maintain the health of domestic animals is also
among the Department’s duties. The Department distributes information on agricultural issues and provides training
and consultation on farming, ranching and more to the public.

Provisions of Strike-Everything Amendment
       Establishes an Agricultural Study Committee (Committee) consisting of:
            Three members of the House of Representatives.
            Three members of the Senate.
                 No more than two members from each legislative body may be from the same political party.
            Governor or the Governor’s designee.
            Director of Environmental Quality or the Director’s designee.
            Director of Water Resources or the Director’s designee.
            State Land Commissioner or the Commissioner’s designee.
       Mandates that the Committee:
            Meet at least once each year.
            Elect a chairperson and vice-chairperson, at the first meeting.
            Members are not eligible for compensation.
       Specifies that quorum for the Committee consists of at least four legislative members.
       Requires the Committee to:
            Review agricultural regulation affecting development and operations.
            Assess the rules regarding all aspects of agricultural operations, including:
                 Purpose.
                 Counterproductively.
                 Scientific basis.
                 Burdens and expenses imposed on agricultural operations.
                 Redundancies.
       Instructs the Committee to formulate recommendations for coordinating and reorganizing procedures and
        information between agencies.
       Mandates the Committee file a report with the results and recommendations by December               31
        of 2009 and 2010, and to be given to:
            The Governor.
            The President of the Senate.
            The Speaker of the House of Representatives.
            The Secretary of State.
            Arizona State Library, Archives and Public Records.
            Any other person requesting a copy.

                                                   Page 31 of 79
   Repeals the Agriculture Study Committee from and after December 31, 2010.

Amendments
The Strike-Everything Amendment was adopted in the Natural Resource and Rural Affairs Committee.

An Amendment to the Strike-Everything Amendment was adopted in the Natural Resource and Rural Affairs
Committee as follows:
  Clarifies that it is the Department of Environmental Quality and the Department of Water Resources that are to
   have representation on the Agricultural Study Committee.




                                                 Page 32 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2279
                                            state debt; expenditures; report
                                      Sponsor: Representative Kavanagh
DPA
S/E         Committee on Appropriations

    X       Caucus and COW

            House Engrossed

HB 2279 requires the Joint Legislative Budget Committee (JLBC) to analyze the report on state debt and
expenditures received from the Department of Revenue (DOR).

                Summary of the Appropriations Committee Strike-everything amendment to HB 2279:
The strike-everything amendment to HB 2279 requires JLBC to analyze a report on state debt and expenditures
issued by DOR and prepare a summary of its analysis.

History
Current law (A.R.S. § 35-501) requires DOR, by June 30 of each year, to record all issues of bonds, certificates of
participation or other securities issued for a term in excess of one year by the state or a county, city, town, school
district, irrigation district, other political subdivision or municipal property corporation within the state. The record
shall show the date of issuance, amount, denomination, rates of interest, maturity, dates of the bonds, certificates of
participation or securities and other information the department requires.
The reports relating to the issuance of bonds and securities shall be filed with DOR within sixty days of the issuance.
Some examples of the information that shall be provided in the report include the par amount of the bond or security,
the interest rate, repayment schedule, and sources of repayment.
According to the JLBC FY 2008-09 Appropriations Report, the total state bonding was approximately $8.76 billion
and the payment amount was $707.2 million.


Provisions
       Requires JLBC to analyze the report on state debt and expenditures provided from DOR.
       Requires JLBC to prepare a summary of its analysis that may include the total amount of state debt, the state debt
        principal payments and any other information deemed necessary by the staff director.
       Makes other technical and conforming changes.
Amendments
Committee on Appropriations
The strike-everything amendment was adopted.




                                                       Page 33 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2306
                                   technical correction; malpractice claim review
                                        Sponsor: Representative Reagan

DPA
/SE Committee on Commerce

    X       Caucus and COW

       House Engrossed
HB 2306 as introduced makes a technical correction to malpractice claim reviews.

The proposed strike-everything amendment to HB 2306 clarifies when an individual must provide
documentation of citizenship or work authorization to obtain a business license.

History of Proposed Strike-Everything Amendment
In 2007 The Legal Arizona Workers Act was passed into law. The Act made several changes to statutes relating to
unauthorized workers. It expanded aggravated taking the identity of another person or entity to include the intent to
obtain employment; prohibited an employer from intentionally or knowingly employing an unauthorized alien;
required the Attorney General or county attorney to investigate complaints and classified filing a false and frivolous
complaint as a class 3 misdemeanor; provided for license suspension for the first violation; required license
revocation on a second violation during a probationary period; and after December 31, 2007, required employers to
utilize the Basic Pilot Program to verify employment eligibility.

Laws 2008, Ch. 152 was an emergency measure that made numerous changes to the The Legal Arizona Workers Act,
and included provisions relating to eligibility for licensing in the state of Arizona. The changes provided for the
following:
    To prohibit an agency or political subdivision from issuing a license to an individual who does not present
     documents indicating authorized presence in the United States.
    To specify the provisions are not applicable if both of the following apply:
      The individual is a foreign national, or resides in a foreign country at the time of the application.
      The benefits related to the license do not require the individual to be present in the U.S.

The Strike-Everything Amendment to HB 2306 further changes statute (A.R.S. § 41-1080) relating to licensing
eligibility.

Provisions of Strike-Everything Amendment
       Exempts an individual who has affirmatively established citizenship or nonexpiring work authorization from
        executing a statement of citizenship or alien status upon renewal or reinstatement of a license.

       Specifies that upon renewal or reinstatement of a license an individual who holds a limited form of authorization
        must provide documentation of citizenship or alien status.

Amendement to the Strike-Everything Amendment
  Requires only an individual who has a limited form of authorization that has expired to provide documentation of
   citizenship or alien status upon seeking license renewal or reinstatement




                                                       Page 34 of 79
                                   HOUSE OF REPRESENTATIVES
                                                        HB 2308
                                         residential contractors' recovery fund
                                         Sponsor: Representative Hendrix

DP           Committee on Appropriations

    DP       Committee on Commerce

    X        Caucus and COW

             House Engrossed
HB 2308 allows the Registrar of Contractors to allocate fourteen percent of prior fiscal year revenues deposited into
the Residential Contractor’s Recovery Fund (Fund) for operational and administrative purposes.

History
Established by A.R.S. § 32-1132, the Fund provides financial compensation to consumers who have been injured by
an act, a representation, a transaction, or the misconduct of a licensed residential contractor. Qualified claimants are
entitled to receive up to $30,000 for actual damages incurred through a residential contractor’s poor workmanship or
non-performance, and the liability of claims made against any one residential contractor’s license is limited to
$200,000.
The Fund is administered and maintained by the Registrar, and consists of monies received through an assessment
paid by residential contractors for the application or renewal of a contractor’s license, not to exceed $600 per biennial
licensing period. Statutory requirements direct the Registrar to maintain the Fund balance at a level sufficient to pay
operating costs and anticipated claims.
Currently, the Registrar is authorized to expend ten percent of the fund balance remaining in any fiscal year for
operational and administrative purposes.

Provisions
        Authorizes the Registrar to expend fourteen percent of the prior fiscal year revenues for securing employees and
         contracted services, procuring equipment, and for operational costs, rather than ten percent of the Fund balance.
        Contains an emergency clause.




                                                        Page 35 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2310
                                               subdivision public reports
                                         Sponsor: Representative Driggs

DP          Committee on Government

    X       Caucus and COW

            House Engrossed

HB 2310 modifies the Department of Real Estate’s procedure for reviewing subdividers’ notices and public reports
for the sale of improved lots.

History
The Arizona Department of Real Estate (Department) is an agency under the direction of the Real Estate
Commissioner (Commissioner) charged with licensing and regulating the real estate profession (Arizona Revised
Statutes (A.R.S.) § 32-2102). Subdividers are defined in statute as private developers who seek to sell six or more lots
of subdivided land, or who develop or subdivide land (A.R.S. § 32-2101). Subdividers are required to submit a notice
and public report to the Commissioner before offering lands for sale or lease. The public report provides specific
information regarding the subdivided land, including:
                 A legal description of the land.
                 A statement of the proposed uses for the land.
                 Assurances of utility provisions (A.R.S. § 32-2181).

If the Commissioner approves the public report, the subdivider is authorized to sell or lease the subdivided lands. The
public report must then be submitted by the subdivider to each prospective customer (A.R.S. § 32-2183).

A.R.S. § 32-2101 defines improved lots as subdivision lots a subdivider has contractually agreed to complete a
building upon within the next two years. Currently, statute permits subdividers of improved lots to undergo an
expedited process in order to receive approval of their subdivision. Under this provision, the Commissioner must
determine whether a subdivider’s notification and public report are complete within 15 business days (A.R.S. § 32-
2183).

Provisions
       Decreases the number of days allowed for the Department of Real Estate to determine if a subdivider’s
        notification and public report is complete from 15 business days to 10 business days.
       Requires the Department to issue a letter of denial upon rejection of a subdivider’s notice and public report.
       Clarifies that if the Commissioner has received a public report but has not issued a certification or denial letter
        within 10 business days, then the public report is considered administratively complete.




                                                        Page 36 of 79
                                   HOUSE OF REPRESENTATIVES
                                                         HB 2315
                                                    criminal sentencing
                                         Sponsors Representative Driggs

DPA Committee on Judiciary

    X       Caucus and COW

            House Engrossed

HB 2315 makes technical and conforming changes to Arizona’s criminal sentencing statutes.

History
Laws 2008, Chapter 301 (HB 2207) reorganized Arizona’s sentencing statutes, which were contained throughout
Title 13 of the Arizona Revised Statutes (A.R.S). It reorganized the sentencing statutes by shifting their location in
the criminal code. The criminal sentencing statutes were not changed significantly; however, during the
reorganization process, several felony sentences were prospectively (beginning on January 1, 2009) reduced to the
nearest tenth in order to resolve two conflicting sentencing statutes.

Provisions
       Changes the heading of Title 13, Chapter 7 of the A.R.S. from Imprisonment to Sentencing and Imprisonment.

       Clarifies that the minimum term prescribed for dangerous offenses is the presumptive term.

       Outlines in chart-form the mitigated and aggravated sentences for multiple drug offenses not committed on the
        same occasion, which allows for a 25 percent increase of the minimum and maximum sentences, respectively.

       Clarifies the definition of dangerous offense in several sentencing statutes.

       Makes numerous technical and conforming changes.

Amendments
Committee on Judiciary
  Removes the sections of the bill that pertain to the definition of dangerous offense.




                                                         Page 37 of 79
                                 HOUSE OF REPRESENTATIVES
                                                      HB 2316
                                         sentencing; second degree murder
                                        Sponsor: Representative Driggs

DPA Committee on Judiciary

    X       Caucus and COW

            House Engrossed

HB 2316 clarifies that the sentences for second degree murder are in calendar years.

Summary of the proposed strike-everything amendment to HB 2316

History
Laws 2008, Chapter 301 (HB 2207) reorganized Arizona’s sentencing statutes, which were contained throughout
Title 13 of the Arizona Revised Statutes. It reorganized the sentencing statutes by shifting their location in the
criminal code. The criminal sentencing statutes were not changed significantly; however, during the reorganization
process, several felony sentences were prospectively (beginning on January 1, 2009) reduced to the nearest tenth in
order to resolve two conflicting sentencing statutes.

Provisions
       Clarifies that the special sentencing provisions for certain drug offenses and the sentences for second degree
        murder are in calendar years.

       Contains an emergency clause.

Amendments
Committee on Judiciary
  The strike-everything amendment was adopted.




                                                      Page 38 of 79
                               HOUSE OF REPRESENTATIVES
                                                    HB 2318
                                        capital cases; aggravating factors
                                     Sponsor: Representative Driggs

DPA/SE Committee on Judiciary

    X        Caucus and COW

             House Engrossed

HB 2318 expands the list of aggravating factors for purposes of enhanced sentencing to include whether the
defendant committed the offense in connection with a gang initiation killing.

               Summary of the proposed strike-everything amendment to HB 2318

History
The Department of Financial Institutions (DFI) is statutorily charged with licensing, supervising and regulating state
chartered financial institutions and enterprises. Currently, DFI regulates four mortgage-lending entities: commercial
mortgage bankers, mortgage brokers, mortgage bankers and loan originators. The nonrefundable license application
fees and annual license renewal fees for each of these entities are paid to DFI. The Superintendent of DFI deposits
these monies into the State General Fund.
A mortgage broker is a person who directly or indirectly makes, negotiates or offers to make or negotiate a mortgage
loans and in return receives compensation.
A mortgage banker is a person who either directly or indirectly makes, negotiates or offers to make or negotiate a
mortgage banking loan or mortgage loan and is compensated for such work.
Currently, the Superintendent is not permitted to grant a mortgage broker’s license, unless the applicant meets the
following requirements:
       Has three years experience as a mortgage broker, or equivalent lending experience in a related business
        during the five years preceding the time of application;
       Completes a course of study; and
       Passes a mortgage broker test
In addition, the Superintendent may waive the examination and course of study requirements for any person applying
for a license. This applies to a person who, within the six months immediately prior to submission of the application,
has been a licensee or a responsible person as a mortgage broker, mortgage banker, or loan originator. An applicant
for renewal of a mortgage broker license shall have satisfactorily completed twelve continuing education units by a
continuing education provider approved by the Superintendent before submitting the renewal application (A.R.S. § 6-
903).




Provisions
   Allows a licensed mortgage banker, who closes 150 or less loans in the preceding year, to apply to the DFI for a
    conversion to a mortgage broker license at the time of license renewal.
   Explains that the approval of the conversion is at the discretion of the Superintendent.
   Makes technical and conforming changes.
Amendments
Committee on Judiciary

                                                    Page 39 of 79
   The strike-everything amendment was adopted.




                                                   Page 40 of 79
                                HOUSE OF REPRESENTATIVES
                                                    HB 2323
                                    health insurance; small business coverage
                                      Sponsor: Representative Boone

DP         Committee on Banking and Insurance

    X      Caucus and COW

           House Engrossed

HB 2323 reduces the go bare period to be considered an uninsured small business from six consecutive months to 90
days.

History
Title 20 of Arizona Revised Statutes specifies a variety of coverage mandates for health insurance entities. Laws
2006 Chapter 229 created Small Business Health Insurance Plans (SBHIPs) which are exempt from many of the
coverage mandates stipulated in Title 20. SBHIPs are available to small employers that did not provide a health
benefits plan for at least six months.

Provisions
       Reduces the go bare period to be considered an uninsured small business from six consecutive months to 90
        days.




                                                    Page 41 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2324
                                 health insurance; individuals; coverage exemptions
                                         Sponsor: Representative Boone

DPA Committee on Banking and Insurance

    X       Caucus and COW

            House Engrossed

HB 2324 allows health insurers to issue policies to uninsured individuals that are exempt of certain mandated
benefits.

History
Title 20 of Arizona Revised Statutes specifies a variety of coverage mandates for health insurance entities. In 2006,
the Arizona Legislature passed a bill allowing insurers to offer products without all of the mandated benefits to
uninsured small groups. (Laws 2006, Chapter 229). HB 2324 would allow insurers to develop a similar product for
uninsured individuals. As with the small group product, the bill enables insurers to offer individuals health insurance
products without all the mandates prescribed by law.

Provisions
       Allows a hospital service corporation, medical service corporation, or hospital and medical service corporation to
        issue health insurance contracts to uninsured individuals exempt from the following coverage mandates:
            Services within the scope of practice of an allopathic or osteopathic physician or chiropractor if the policy
             covers the condition. (20-461.A.17 and B)
            Dependent children who at attainment of the limiting age are still dependent due to physical or mental
             disabilities. (20-826.F)
            Maternity benefits for adopted children. (20-826.J)
            Medical foods to treat inherited metabolic disorders. (20-826.U)
            Podiatric and dental surgeries that would have been covered if performed by a physician. (20-841.A)
            Chiropractic services. (20-841.01)
            Services provided by a psychologist. (20-841.02)
            Services provided by a nurse practitioner. (20-841.03)
            Standing referrals to specialists. (20-841.04)
            Out-of-network physicians for new subscribers during a transitional period. (20-841.06.A)
            Physicians recently terminated from the provider network during a transitional period. (20-841.06.B)
            Medical supplies conveniently accessible to subscribers. (20-841.07)
            Occupational or physical therapy services obtained out-of-network without a referral. (20-841.08)
            After hours and formulary drug authorizations. (20-841.05.B)
            Prescription drugs removed from the provider’s coverage list for sixty days after removal. (20-841.05.E)
       Allows a health care services organization to issue an evidence of coverage to an uninsured individual exempt
        from the following coverage mandates:
            Services within the scope of practice of an allopathic or osteopathic physician or chiropractor if the policy
             covers the condition. (20-461.A.17 and B)
            Dependent children who at attainment of the limiting age are still dependent due to physical or mental
             disabilities. (20-826.F)
            Maternity benefits for adopted children. (20-826.J)
            Medical foods to treat inherited metabolic disorders. (20-826.U)
            Podiatric and dental surgeries that would have been covered if performed by a physician. (20-841.A)
            Chiropractic services. (20-841.01)
            Services provided by a psychologist. (20-841.02)
            Services provided by a nurse practitioner. (20-841.03)
            Standing referrals to specialists. (20-841.04)
            Out-of-network physicians for new subscribers during a transitional period. (20-841.06.A)
            Physicians recently terminated from the provider network during a transitional period. (20-841.06.B)

                                                       Page 42 of 79
       Medical supplies conveniently accessible to subscribers. (20-841.07)
       Occupational or physical therapy services obtained out-of-network without a referral. (20-841.08)
       After hours and formulary drug authorizations. (20-841.05.B)
       Prescription drugs removed from the provider’s coverage list for sixty days after removal. (20-841.05.E)
   Allows a disability insurer to issue a policy to an uninsured individual exempt from the following coverage
    mandates:
       Services within the scope of practice of an allopathic or osteopathic physician or chiropractor if the policy
        covers the condition. (20-461.A.17 and B)
       Dependent children who at attainment of the limiting age are still dependent due to physical or mental
        disabilities. (20-826.F)
       Maternity benefits for adopted children. (20-826.J)
       Medical foods to treat inherited metabolic disorders. (20-826.U)
       Podiatric and dental surgeries that would have been covered if performed by a physician. (20-841.A)
       Chiropractic services. (20-841.01)
       Services provided by a psychologist. (20-841.02)
       Services provided by a nurse practitioner. (20-841.03)
       Standing referrals to specialists. (20-841.04)
       Out-of-network physicians for new subscribers during a transitional period. (20-841.06.A)
       Physicians recently terminated from the provider network during a transitional period. (20-841.06.B)
       Medical supplies conveniently accessible to subscribers. (20-841.07)
       Occupational or physical therapy services obtained out-of-network without a referral. (20-841.08)
       After hours and formulary drug authorizations. (20-841.05.B)
       Prescription drugs removed from the provider’s coverage list for sixty days after removal. (20-841.05.E)
   Defines uninsured individual.


Amendment:
Committee on Banking and Insurance
  Changes the statutory references for exempted mandates to match the mandates pertaining to health care service
   organizations and disability insurers listed in statute.
  Defines health insurance coverage.




                                                   Page 43 of 79
                              HOUSE OF REPRESENTATIVES
                                                   HB 2329
                                            solar energy; permit fees
                                    Sponsor: Representatives Boone

DPA Committee on Water and Energy

W/D     Committee on Government

    X   Caucus and COW

        House Engrossed

HB 2329 establishes maximum building permit fees for solar energy system construction permits for cities, towns and
counties.

History
Laws 2008, Ch. 241 created standards for solar construction permits and were codified in A.R.S. § 9-468 for
municipalities and A.R.S. § 11-323 for counties. These statutes require that municipalities and counties charge fees
for solar construction permits and inspections that do not exceed the actual cost of generating the permit or
inspection. Solar construction permits and inspection fees may differ between individual municipalities and counties;
however counties and municipalities are required to hold a public meeting before adopting a construction permit fee.
Additionally, counties and municipalities cannot require the stamp of an engineer for a solar construction project
unless the permittee is provided a written explanation.

Provisions
  Requires that the fee imposed by a city, town or county not exceed $300 for a single-family photovoltaic system
   or projects requiring a structural inspection.
  Requires that the fee imposed by a city, town or county not exceed $100 for a residential solar water heating
   system, and $150 if it requires a structural inspection.
  Prohibits a city, town or county from charging a fee for re-inspection and re-permitting that exceeds the original
   permit fee.
  Allows a city, town or county to readjust fees annually based on changes in the consumer price index.
  Defines consumer price index.
Amendments
Committee on Water and Energy
  Increases the fee cap for a single-family photovoltaic system to $375.
  Clarifies that the fee cap applies to projects requiring a structural inspection plan review.
  Allows exceptions to the fee caps in the following cases:
       The photovoltaic or solar water heating system requires a structural plan review.
       The system requires more than one nonstructural plan review.
       The system requires more than two inspections.
       The system includes an electrical storage system.
  Repeals these provisions after December 31, 2013.


                              HOUSE OF REPRESENTATIVES
                                                   HB 2330
                                       biodiesel fuel dispensers; labeling
                                     Sponsor: Representative Boone




                                                   Page 44 of 79
DP      Committee on Water and Energy

DPA     Committee on Environment

 X      Caucus and COW

        House Engrossed

HB 2330 requires biodiesel dispensers to be labeled in conformance with federal regulations.

History
Prior to 2002, there were no established standards, regulations or reporting requirements for biodiesel. Laws 2002,
Ch. 104 established regulations and standards for the sale and use of biodiesel fuel in Arizona, including labeling
requirements, and definitions for pertinent terms. In 2008, HB 2621 made changes to the labeling requirements for
biodiesel and required that the Director of the Department of Weights and Measures to adopt and enforce rules
regarding the quality, testing, labeling and dispensing of biofuels.

Section 205 of the Energy Independence and Security Act of 2007 enacted requirements for rules regarding biodiesel
and biomass-based diesel labeling. Those rules were published in the Federal Register on July 11, 2008 (16 CFR Part
306). Below are charts demonstrating the labeling requirements.

              Blends
     Fuel
              of 5%                        Blends of more than 5% but not more than 20%
     type
              or less
                          Header                                Text                                       Color
                                                                contains biomass-based diesel or
              No label    Either “B-XX Biodiesel Blend”         biodiesel in quantities between 5
 Biodiesel    required    or “Biodiesel Blend”                  percent and 20 percent                     Blue
 Biomass-                 Either “XX% Biomass-Based             contains biomass-based diesel or
 Based        No label    Diesel Blend” or “Biomass-            biodiesel in quantities between 5
 Diesel       required    Based Diesel Blend”                   percent and 20 percent                     Orange




 Fuel                                                               Pure (100%) Biodiesel or Biomass-Based
 type         Blends of more than 20 percent                        diesel
              Header          Text                      Color       Header           Text            Color

                                 contains more
                                 than 20 percent                                         contains 100
              B-XX Biodiesel     biomass-based                                           percent
 Biodiesel    Blend              diesel or biodiesel    Blue        B-100 Biodiesel      biodiesel         Blue




                                                   Page 45 of 79
                                    contains more                                             contains 100
    Biomass-    XX% Biomass-        than 20 percent                                           percent
    Based       Based Diesel        biomass-based                       100% Biomass-         biomass-based
    Diesel      Blend               diesel or biodiesel      Orange     Based Diesel          diesel               Orange


A.R.S. § 41-2051 defines Biodiesel as a diesel fuel substitute that is produced from nonpetroleum renewable
resources as defined by the United States Environmental Protection Agency (EPA) and that meets the registration
requirements for fuels and fuel additives established by the United States environmental protection agency pursuant
to section 211 of the Clean Air Act, as defined in A.R.S. § 49-401.01. Biodiesel blend means a motor fuel that is
comprised of biodiesel and diesel fuel and that is designated by the letter "B," followed by the numeric value of the
volume percentage of biodiesel in the blend. Finally, biofuel is defined as a solid, liquid or gaseous fuel that is
derived from biomass and that can be used directly for heating or power or as a motor fuel.

Provisions
     Requires biodiesel to be labeled in conformance with Title 16 Code of Federal Regulations part 306.12 and
      appendix A as printed in Volume 73, number 134 of the Federal Register.
     Allows a person to label a biodiesel dispenser that contains less than five per cent biodiesel.
     Requires that product transfer documents indicate the final amount in finished products containing greater than
      one per cent biodiesel.
     Makes technical and conforming changes.


Amendments
Environment
     Clarifies that biodiesel or biodiesel pumps be labeled in conformance with the federal regulations
     States that product transfer documents notify the transferee of the volume per cent of biodiesel for diesel fuel that
      may contain less than 5% biodiesel.




                                                       Page 46 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2331
                                         federal immigration law; enforcement
                                        Sponsor: Representatives Boone

DPA Committee on Judiciary

    X       Caucus and COW

            House Engrossed

HB 2331 prohibits cities, towns, and county boards of supervisors from enacting ordinances or resolutions or
adopting policies which limit or prohibit the lawful enforcement of United States immigration laws.

History
Title 8 of the United States Code (U.S.C.) regulates immigration into the United States. 8 U.S.C. § 1325 provides
penalties for an alien who:
     1. Enters or attempts to enter the United States at any time or place other than as designated by immigration
         officers;
     2. Eludes examination or inspection by immigration officers; or
     3. Attempts to enter/obtains entry into the United States by false representation.


8 U.S.C. § 1373(c) requires Immigration and Customs Enforcement (ICE) to respond to inquiries by federal, state, or
local government agencies seeking to verify or ascertain the citizenship or immigration status of any individual
within the jurisdiction of the agency for any purpose authorized by law, by providing the requested verification or
status information.


Provisions
       Prohibits the enactment or adoption of any ordinance, resolution, or policy by a city, town, or board of
        supervisors which would in any way limit or prohibit the lawful enforcement of United States immigration laws.

Amendments
Committee on Judiciary
  Includes the law enforcement agencies of cities or towns in the listing of entities to which the prohibition applies.

       Changes the standard from in any way limiting or prohibiting to the intention to limit or prohibit.




                                                        Page 47 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2332
                                               schools; energy contracts
                                        Sponsor: Representative Boone

DPA Committee on Education

    X       Caucus and COW

            House Engrossed

HB 2332 allows school districts to enter into energy performance and renewable energy power purchase contracts
and utilize the savings realized from these contracts. Additionally, HB 2332 includes stipulations for the
implementation of the contracts and includes reporting requirements.

History
Laws 1996, Ch. 212 established a method for school districts to procure guaranteed energy cost savings contracts
from qualified providers through the use of competitive sealed proposals. A.R.S. § 15-203.01 spells out the criteria to
be used by school districts when selecting a qualified provider. Qualified providers are required to conduct feasibility
studies and audits, which are submitted to the Superintendent of Public Instruction. A qualified provider is defined as
a person or business experienced in designing, implementing or installing energy cost savings measures.

The Arizona Department of Commerce (DOC) Energy Office encourages energy efficiency and renewable energy
use, provides energy information and policy advice, and supports reduced utility costs and improved comfort for
Arizona’s low-income residents. The Energy Office implements and facilitates programs for the residential and
commercial sectors to encourage them to partner with local governments, tribes, utilities and other public and private
organizations.

Provisions
                     Energy Performance Contracts/Renewable Energy Power Purchase Agreements

       Requires the State Board of Education to adopt rules for a school construction procurement
        program for energy performance contracts and renewable energy power purchase contracts, in
        lieu of current statutory procurement rules.
       Stipulates that a school district retains savings achieved by a guaranteed energy cost saving
        contract, which may be used to pay for the project implementation.
       Specifies that excess utilities cannot be used for a performance contract or project
        implementation.
       Removes certain criteria from the list of items required to be considered when a school district
        selects a qualified provider.
       Requires a school district to report the name, qualified provider, total cost and expected
        energy savings of all projects carried out to the DOC Energy Office.
       Eliminates the requirement for an energy audit to be performed on a facility one year after the energy savings
        measure was installed and every three years thereafter, for the length of the contract. The qualified provider of
        the energy savings measure is required to conduct, pay for and send a copy to the Superintendent.
       Requires the qualified provider of an energy cost savings measure to submit an annual report that measures and
        verifies savings. This report is required in addition to the annual reconciliation of savings report.
       Requires school districts to report information regarding all guaranteed energy cost savings contracts to the DOC
        Energy Office (name of project, the qualified provider, total cost of project and expected energy and cost
        savings).
       Allows guaranteed energy cost savings contracts to be used for installations made in conjunction with the
        construction of new buildings.


                                                       Page 48 of 79
   Expands the definition of energy cost savings measure to include: procurement of low-cost utility supplies; water
    consumption reduction devices; rainwater harvesting systems; combined heat and power systems; renewable and
    alternative energy projects and renewable energy power purchase contracts; self-generation systems and any
    other system that produces energy or provides cost savings if the systems meet life cycle cost requirements and
    increase building efficiency.
   Defines life cycle cost.
   Exempts property that is procured through an energy performance contract or renewable
    energy power purchase contract from requiring approval by an election.
                     School District and Charter Schools Energy and Water Savings Accounts

   Authorizes school districts and charter schools to establish an energy and water savings
    account (account) consisting of a designated pool of capital investment monies to fund
    energy or water savings projects in school facilities. Monies may be deposited in the fund
    from companies that provide utility, energy or water services to the school pursuant to a
    contract, as well as energy related rebate or grant monies and other sources, including clean
    renewable energy bonds.
   Requires the Auditor General and the Arizona Department of Education to prescribe the
    designation of the accounts in the Uniform System of Financial Records and the appropriate
    related forms.
   Requires monies deposited in the account to serve as a designated pool of capital investment
    monies to pay for energy or water savings measures in school facilities.
   Requires any contract entered into to contain an agreement between the qualified provider and
    the school district that each party has performed a reasonable investigation to determine that
    the measures in the contract will result in stated energy or water savings.
   Authorizes a repayment schedule to be extended in the contract up to the expected life of the
    energy or water savings measures or 25 years, whichever is shorter.
   Outlines the expenditures that are authorized to be funded through an account including:
                Projects or measures that save energy or water in a school facility, including technical assistance by
                 a qualified provider or a utility, energy or water service company.
                Repayment of capital investment monies to the qualified provider plus reasonable carrying charges.
   Requires school districts and charter schools to procure and contract for energy or water
    savings measures or services with monies distributed from the accounts after the qualified
    provider has computed and the school district has reviewed the estimated amount of energy
    savings to be achieved monthly and annually over the life of the measure, as well as a
    monthly repayment schedule, which must result in lower energy or water costs, including
    installation, for the school district or charter school.
   Stipulates that a school district or charter school must transfer monthly payments from the
    maintenance and operation portion of the school’s budget to repay any unpaid balance of the
    capital investment, plus a reasonable carrying charge. The amount transferred to the account
    must be included in the calculation of the general budget limit.
   Stipulates that the school may discontinue the monthly deposit in the account when the capital
    investments and any reasonable carrying charges have been repaid. Any monies remaining
    may be transferred to the maintenance and operation portion of the school’s budget.
   Stipulates that energy utility, water utility, public service corporations or agricultural
    improvement districts are not obligated to invest monies or contract with school districts or
    charter schools.
Amendments
Committee on Education
  Eliminates the requirement that the state board of education adopt procurement rules for these contracts.
  Reinserts criteria for the selection of a qualified provider.
  Authorizes school districts and qualified providers to modify energy baselines for significant changes in the
   nature or intensity of energy use.
                                                    Page 49 of 79
   Requires the qualified provider to prepare an annual measurement and verification report for the first three years
    of the contract.
   Prohibits guaranteed energy cost savings contracts on new buildings.
   Authorizes the use of a simplified energy performance contract for projects under $500,000. These simplified
    contracts are exempted from the energy savings guarantee and provisions related to the guarantee and the
    measurement and verification of guaranteed savings.
   Expands the definition of energy cost savings measure to include related meters and other measuring devices.
   Clarifies that renewable energy power service agreements are included in the definition of an energy cost savings
    measure.
   Modifies the exemption from school district elections to include the simplified energy performance contract.




                                                   Page 50 of 79
                                   HOUSE OF REPRESENTATIVES
                                                         HB 2333
                                                      Arizona trust code
                                         Sponsor: Representatives Boone

DPA Committee on Banking and Insurance

    X       Caucus and COW

            House Engrossed

HB 2333 makes revisions and clarifications to the group of statutes known as the Arizona Trust Code.

History
The National Conference of Commissioners on Uniform State Laws (NCCUSL) is a
nongovernmental organization that was established to draft model laws and promote enactment of
legislation on a wide range of legal issues to achieve statutory consistency among all states. In
2000, the NCCUSL adopted the Uniform Trust Code (UTC). The UTC is a comprehensive act
that attempts to modernize the establishment of trusts, address appointment of trustees, outline the
duties and powers of trustees and provide legal remedy for breach of duties. In 2003, the
NCCUSL Commissioner, in conjunction with the State Bar of Arizona, recommended the
adoption of UTC to Arizona law. The UTC was passed by the Legislature and signed by the
Governor on May 12, 2003 with an effective date of January 1, 2004 (Laws 2003, Chapter 213).

Subsequent to passage of the UTC, various members of the public expressed concerns about some
of its provisions. In response to their concerns, during the 2003, Second Special Legislative
Session, the Legislature voted to postpone the effective date of the UTC until January 1, 2006 to
give interested parties time to resolve any differences and prepare mutually acceptable language.
(Laws 2003, Second Special Session, Chapter 7). In 2004, the legislature passed HB 2516, which
repealed the provisions established by the enactment of the UTC and restored the laws that
regulated trusts prior to the adoption of the UTC. (Laws 2004, Chapter 148).

After the repeal of the Uniform Trust Code in 2004, the Probate and Trust Law Section of the State Bar of Arizona
created the Arizona Trust Code Committee (committee) to draft new legislation. The new legislation, HB 2806, was
called the Arizona Trust Code and passed through the legislature and was signed into law in 2008.

Provisions
       Extends the Rule of Perpetuities relating to non-vested property interests.
       Allows a personal representative to create a limited liability company to hold any business or venture in which a
        decedent was engaged at the time of his or her death.
       Permits a personal representative to consider community property held outside a decedent’s estate in making a
        division or distribution of community property held in the decedent’s estate so the distribution is based on equal
        value but not necessarily proportionate.
       Lets a trustee consider whether a trust has been converted to a unitrust in determining how much power to
        exercise over the trust and its beneficiaries.
       States that the terms of a trust will not prevail over the power of a court to take an action consistent with the trust
        instrument.
       Stipulates that if the power of a trustee to select a beneficiary from an indefinite class is not exercised within a
        reasonable time, the power passes to the persons who would have taken the property if the power had not been
        conferred.
       Prohibits a trust created by a written instrument from being amended or revoked by anything other than a written
        instrument executed by the settler.

                                                         Page 51 of 79
   Exempts a trust from creditor’s claims against the settlor if:
        The beneficiary holds a general power of appointment exercisable in favor of the holder’s estate or a limited
         power of appointment.
        The trust is an irrevocable inter vivos marital trust that is treated as qualified terminable interest property
         under the Internal Revenue Code.
        The trust is an irrevocable inter vivos marital trust that is treated as a general power of appointment trust
         under the Internal Revenue Code.
   Applies the provisions of statute pertaining to the appointment of a trust protector to all trusts, regardless of the
    date the trust was created, except in instances where the trust instrument allows the settler to remove and replace
    the trust protector.
   Allows a trustee, under certain conditions, to appoint part or all of the principal of the trust in favor of a trustee of
    a different trust, unless the terms of the trust expressly provide otherwise.
        The original trustee must have absolute discretion to invade the principal of a trust for the benefit of the
         beneficiary who is entitled to the income of the trust.
        The appointment of the principal must:
             Not reduce any fixed income interest of an income beneficiary of the trust.
             Be in favor of the trust.
             Not violate the limitations on validity.
        The power to appoint applies only to trusts governed by Arizona or a trust whose governing jurisdiction is
         transferred to Arizona.
   Excludes from the definition of profit pursuant to damages in absence of breach by a trustee:
        Reasonable compensation to which the trustee is entitled.
        Compensation or fees permitted pursuant to a trustee or trust protector.
        Reasonable compensation or fees for services that the trustee provides in the normal course of business and
         that are typical in the geographic area where the trust is administered.
   Permits a unitrust amount to be determined by reference to the net fair market value of the trust’s assets in one
    year or more than one year.
   States that distribution of a fixed percentage unitrust amount does not constitute a fundamental departure from
    state law, but instead is considered a distribution of all the income of the total return unitrust.
   Allows an express total return unitrust to provide a mechanism for changing the unitrust percentage unless that
    power is not specifically or by reference to statute granted by the unitrust.
   Stipulates that a distribution of the fixed percentage of between three and five percent per year reasonably
    apportions the total return of a total return unitrust.
   Explains that an express total return unitrust is considered to have paid out all of the income and principal of the
    unitrust if the unitrust provides for a fixed percentage payout of more than five percent per year.
   Authorizes a trust document to give a trustee the discretion to adopt a practice of treating capital gains as part of
    the unitrust distribution so long as the distribution exceeds the net accounting income.
   Asserts that unless the trust document state otherwise, the distribution of the unitrust amount will be considered
    to be made, in order of priority, from:
        Net accounting income determined as if the trust were not a unitrust.
        Ordinary income not allocable to net accounting income.
        Net realized short-term capital gains.
        The principal of the trust estate.
   Allows a trust document to provide that assets used by the trust beneficiary be excluded from the fair market
    value for computing the unitrust amount.
   Defines express total return unitrust.
   Denotes as separate property a contribution to an irrevocable trust that has life insurance on the person making
    the contribution as its principal asset if the spouse of the insured is the primary beneficiary of the trust.
   Makes technical and conforming changes.

Amendment:
Committee on Banking and Insurance
  Explains that if a trustee transfers a trust’s principal place of administration to another state or outside of the
   U.S., the law governing the trust may be subject to change.
  Establishes that the trustee may modify a trust agreement to change the name of the trustee or beneficiary if the
   trustee or beneficiary’s name has been legally changed.
  Stipulates that the following amounts and property are not deemed to have been contributed by a settlor:
       An irrevocable inter vivos marital trust that is treated as qualified terminable interest property, if the settlor
        is a beneficiary after the death of the beneficiary’s spouse.
       An irrevocable inter vivos marital trust that is treated as a general power of appointment trust under the
        Internal Revenue Code if the settlor is a beneficiary of the trust after the death of the beneficiary’s spouse.
                                                      Page 52 of 79
        An irrevocable inter vivos trust for the settlor’s spouse that does not qualify for the gift tax marital deduction
         if the settlor is a beneficiary after the death of the beneficiary’s spouse.
        An irrevocable inter vivos trust created by a person for the benefit of that person’s spouse.
   Determines that a person is a beneficiary whether named under the initial trust instrument, through the exercise
    by that person’s spouse or another person of limited or general power of appointment.
   States that profit does not include reasonable remuneration for services permitted to a fiduciary.
   Includes legal defense trusts in the definition of a trust.
   Defines distributee and disabled person.




                                                     Page 53 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2334
                                           uniform principal and income act
                                        Sponsor: Representative Boone

DPA Committee on Banking and Insurance

    X       Caucus and COW

            House Engrossed

HB 2334 makes various changes to the Uniform Principal and Income Act to comply with IRS rulings and court
decisions.

History
A.R.S. §§ 14-7401-7671 are known as the Uniform Principal and Income Act. These statutes are consistent with the
Uniform Principal and Income act produced by the National Conference of Commissioners on Uniform State Laws
(NCCUSL). In 2008, the NCCUSL suggested amendments to two sections of the act in light of recent court decisions
and IRS rulings. HB 2334 would put the NCCUSL’s suggested amendments into statute.

NCCUSL provides states with uniform legislation in various areas of law. The purpose of these laws is to provide
clarity and uniformity among the states in critical areas of the law. Uniform Law Commissioners must be lawyers,
qualified to practice law. They are lawyer-legislators, attorneys in private practice, state and federal judges, law
professors, and legislative staff attorneys, who have been appointed by state governments as well as the District of
Columbia, Puerto Rico and the U.S. Virgin Islands to research, draft and promote enactment of uniform state laws.

Provisions
       Eliminates the requirement that a trustee allocate to principal any additional amount necessary, beyond what is
        required in statute, to obtain an estate tax marital deduction for a trust.
       Removes the proportionality requirement for the payment of taxes by a trustee.
       Strikes the mandate that a trust’s share of an entity’s taxable income exceed total receipts for payment of taxes
        from principal.
       Deletes the condition that receipts allocated to principal or income be reduced by the amount distributed to a
        beneficiary from principal or income for which the trust receives a deduction in calculating the tax.

Amendment:
Committee on Banking and Insurance
  Reinserts the requirement that a trustee allocate to principal any additional amount necessary, beyond what is
   required in statute, to obtain an estate tax marital deduction for a trust.
  Specifies the application of the statutory provisions relating to determining the allocation of a payment made
   from a separate fund to a trust to which an election to qualify for a marital deduction has been made or to a trust
   that qualifies for a marital deduction.
  Clarifies that the marital deductions statutes do not apply to the extent that the series of payments would qualify
   for the marital deduction under the Internal Revenue Code.
  Provides requirements of trustees relating to funds subject to the act.
  Establishes a payment structure for taxes required to be paid by a trustee on trust’s share of an entity’s taxable
   income.




                                                       Page 54 of 79
                                   HOUSE OF REPRESENTATIVES
                                                         HB 2357
                                     public education; students' religious liberties
                                        Sponsor: Representative Crandall

DP          Committee on Education

    X       Caucus and COW

            House Engrossed

HB 2357 prohibits a public educational institution from discriminating against students or parents on the basis of a
religious viewpoint or expression.

History
Arizona statute asserts that free exercise of religion is a fundamental right that applies even if laws, rules, or other
government actions are facially neutral. Additionally, government is prohibited from substantially burdening a
person’s exercise of religion, with certain exceptions (A.R.S. § 41-1493.01). For these purposes, government is
defined as the state and any agency or political subdivision of the state, including a school district (A.R.S. § 41-
1493).

The Federal Equal Access Act stipulates that it is unlawful for any public high school to discriminate against, or deny
equal access or fair opportunity to students who wish to conduct a meeting within a limited open forum on the basis
of religious, political, philosophical, or other speech at such meetings. A limited open forum means an offering or
opportunity provided by the school for one or more noncurriculum-related groups of students to meet on the premises
during noninstructional time (20 U.S.C. § 4071). Arizona law extends the right to conduct noncurriculum-related
group meetings to students in grades seven and eight. In order for a school to be deemed as providing a fair
opportunity to these students, school policies must adhere to the following requirements: meetings must be voluntary,
student-initiated, and not sponsored by any school or government entity; employees of school and government
entities present at religious meetings may not participate; meetings cannot interfere with the orderly conduct of the
school; and persons present who are not employed by the school district are not allowed to direct, conduct, control, or
regularly attend the meetings (A.R.S. § 15-720).

Provisions
       Stipulates that a public educational institution cannot discriminate against students or parents on the basis of a
        religious viewpoint or expression.
       Permits prayer or engagement in religious activities or expression to the same extent that non-religious activities
        and expression are permitted.
       Allows students to wear clothing, jewelry, and other apparel that displays religious messages or symbols to the
        same extent that other clothing, jewelry, and apparel that display messages or symbols are permitted.
       States that coursework requiring a student’s viewpoint must be evaluated on ordinary academic standards of
        substance and relevance and cannot be penalized or rewarded based on religious content or a religious viewpoint.
       Prohibits this act from being construed to:
            Authorize the state or its political subdivisions to require participation in prayer or other religious activities
             or violate any person’s Constitutional rights.
            Limit the ability of a public educational institution or its agent to maintain order and discipline on campus or
             protect the safety of students and faculty.
       Requires a public educational institution to adopt and implement a policy regarding compliance with this act and
        with requirements related to conducting meetings as outlined in A.R.S. § 15-720.
       Allows this bill to be cited as “The Students’ Religious Liberties Act.”
       Defines public educational institution.
       Contains a severability clause.




                                                         Page 55 of 79
                               HOUSE OF REPRESENTATIVES
                                                     HB 2360
                                      general obligation bond requirements
                   Sponsors: Representatives Murphy: Antenori, Crump, et al

 X      Committee on Ways and Means

 X      Caucus and COW

        House Engrossed

HB 2360 will update the information that must be provided in the publicity pamphlet and on the ballot related to
government general obligation bonds and modifies the refinancing requirements.

History
A general obligation (GO) bond is a bond issued by a political subdivision that is secured by the issuer’s full faith and
credit, i.e., the issuer’s pledge of its full authority to collect the necessary revenue through its taxing power to repay
the bond. GO bonds constitute debts of the issuer and require approval by the voters of the issuing government. In
the event of default, holders of GO bonds have the right to compel the issuer to levy a tax to satisfy the obligation on
the defaulted bonds.

Current statute allows political subdivisions to issue GO bonds to be repaid with property tax revenues. Voter
approved bonded indebtness is paid for with secondary property taxes that are levied against a property’s full cash
value, or secondary value. Debt limits are provided in the constitution and statute computes the debt of a jurisdiction
as the principal amount of all outstanding bonds at the time of the calculation. The principal amount of a bond is the
par amount (face amount that must be repaid at maturity) of the bond exclusive of any premium or discount.

Debt limits for GO bonds are determined by multiplying the net secondary assessed value of taxable property in the
issuing jurisdiction by the percent set in the Arizona Constitution. Counties and municipalities have always had
limits on the amount of debt they can incur at any time. Article IX, section 8 of the Constitution of Arizona prohibits
county and municipal debt exceeding 6 percent of the taxable property, except that:
     the voters of a county may authorize additional debt, not exceeding 15 percent.
     the voters of a municipality may authorize additional debt not exceeding 20 percent for water, light, sewers,
      open space preserves, parks, playgrounds and recreation facilities, public safety, law enforcement, fire and
      emergency services, streets and transportation.

Elementary and high school districts are limited in the Constitution to a 15 percent debt limit and 30 percent for
unified school districts. However, under the Students FIRST program that pays for school construction from state
funds, Class B bonds that are issued are limited in statute to 5 percent for elementary or high school districts and 10
percent for unified districts.




                                                     Page 56 of 79
The dramatic growth in property values over the past few years has led to dramatic growth in property tax levies for
debt service on GO bonds. During a time when rates should have been dropping due to the growth in property
values, many local governments kept rates the same, resulting in tax increases.

This bill will update the information that must be provided in the publicity pamphlet on GO bonds and modify the
refinancing requirements.

Provisions
   If a political subdivision is asking for voter approval of a bond issue and it will exceed the political subdivision’s
    constitutional debt limit when it is combined with current debt, then a statement in bold faced type must be
    placed in the publicity pamphlet to that effect.
   Current statute requires the political subdivision to show in the publicity pamphlet the estimated valuation
    growth of the aggregate secondary assessed value and its effect on the estimated tax rate. This bill will require
    that the examples in the publicity pamphlet that shows the estimated impact of the bonds on the average
    residential and commercial properties will use a valuation growth factor that is fifty percent of the rate used for
    the growth of aggregate secondary assessed value instead of a constant value.
   When asking for voter approval of bonds, the political subdivision must state not only the maximum number of
    years the bonds issue may run but also the minimum number of years the bond issue may run from their issuance
    date.
   Requires the ballot for any authorization for GO bonds to contain a statement that the bonds will result in an
    increase of property taxes in an amount sufficient to pay the annual debt service of the bonds.
   Current statute does not require an election for refinancing bonds that have already been approved by the voters.
    This bill will modify the requirement that no election is required if the weighted average maturity of the
    refunding bonds are at least 75 percent of the weighted average maturity of the all the bonds being refinanced.

Amendment
Ways and Means
Removes redundant language.




                                                     Page 57 of 79
                               HOUSE OF REPRESENTATIVES
                                                     HB 2363
                                       GPLET; lease records and reporting
                                     Sponsor: Representative Murphy

DP         Committee on Ways and Means

    X      Caucus and COW

           House Engrossed

HB 2363 establishes reporting requirements for leases subject to the Government Property Lease Excise Tax
(GPLET).

History
The Legislature first passed a possessory interest tax in Arizona in 1985, effective for 1986. The tax was enacted in
response to the proliferation of the use of the constitutional property tax exemption for government owned property
as an economic development tool. Possessory interests in government property was valued and placed on the
property tax rolls as unsecured personal property. Several exemptions were provided.

The possessory interest tax exemptions were challenged in 1993 and 1994. The Arizona Tax Court struck down
attempts by the Legislature to modify the tax and provide exemptions. The Court stated that the exemptions to the
tax were beyond the scope of those items permitted to be exempted under the Arizona Constitution. In both
instances, the Legislature responded to the court cases by enacting new provisions to the property tax on possessory
interests. In 1995, the Legislature repealed the possessory interest tax and established a study committee charged
with making recommendations for the taxation of all possessory interests with a new non-ad valorem excise tax as a
successor to what was repealed.

In 1996, the Legislature established the Government Property Lease Excise Tax (GPLET) as a non-ad valorem tax
which is the successor to the possessory interest tax that was repealed in 1995. The GPLET could be imposed by any
city, town, county or county stadium district. The tax applies to any entity that leases property from the government
jurisdiction for at least 30 consecutive days for any private commercial or industrial use. The rate of tax is due on or
before December 1 each year and is based in terms of dollars per square foot, number of stories in the building and
the use of the structure. The tax also provides for rate reduction as the structure ages, with the tax completely phased-
out when the lease is more than 50 years old.

Political subdivisions can also abate the tax for up to eight years. To receive an eight year tax abatement, the
property must be in a redevelopment area and subject to a lease or development agreement entered into on or after
April 1, 1985, if the improvement resulted or will result in an increase in property value of a least 100%. The
abatement of taxes in a redevelopment area is restricted to those projects within a single central business district
within the redevelopment area; other improvements outside the central business district but still within the
redevelopment area will pay 80% of the tax.

The government jurisdiction levying the tax must remit GPLET collections to the county (13%), the municipality
(7%), the community college district (7%) and the school district (73% for unified districts or 36.5% for an
elementary or high school district). The current GPLET also contains a list of exempt properties.

The Arizona League of Cities and Towns monitors this tax and provides information upon request. However, there
are currently no statutory reporting requirements for GPLET. This bill will require the leases to be recorded in the
county where the property is located and report all leases to the Department of Revenue (DOR).

Provisions
       Provides that the government lessor that enters into a lease for the occupancy of a government property
        improvement must, within 30 days:
           Record the lease with the DOR and the county recorder.
           Submit copies of the lease to the county treasurer and DOR.

                                                     Page 58 of 79
   Requires DOR to maintain a public database of all government property leases subject to tax.
   Requires the county assessor to notify the county treasurer and DOR of any government property improvement
    that they know is subject to the GPLET or should be subject to the GPLET for confirmation that it is included in
    the DOR database.




                                                  Page 59 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2369
                                      revenue department; technical correction
                                        Sponsor: Representative Murphy
DPA
S/E         Committee on Appropriations

    X       Caucus and COW

            House Engrossed

HB 2369 makes a technical correction related to employees of the Department of Revenue.

                Summary of the Appropriations Committee strike-everything amendment to HB 2369:
The strike-everything amendment to HB 2369 gives the Legislature the authority to appropriate non-custodial federal
monies.

History
With the exception of the Temporary Assistance to Needy Families block grant and various other federal funds
received by the Department of Economic Security, the Arizona Legislature does not appropriate federal monies.
Generally, there are two categories of federal monies received by the state. Federal monies that do not provide
discretion to the state for disbursement are considered custodial or “pass through” monies. Examples of custodial
monies are university research grants and direct federal payments to individuals, such as Social Security and
Medicare benefits. Conversely, non-custodial federal monies are block grants and other federal monies that provide
the state with discretion regarding the development, implementation or operation of a program or service.
The National Conference of State Legislatures (NCSL) conducted a survey to determine how many state legislatures
appropriate or authorize the use of federal monies. According to the survey, 36 states appropriate federal monies by
determining a specific amount that will be used for a specific purpose. These legislatures also have the authority to
impose a limit on the monies for a specific fiscal period. Eight other states make open-ended appropriations, which
authorize the state to use federal monies but do not require a specific purpose or amount to be declared. Additionally,
five states make both specific and open-ended appropriations. Finally, six states lack legislative authority to
authorize federal funds. Of these six states, a recent constitutional amendment in Oklahoma authorizes the
appropriation of federal funds and statutory language to implement an appropriations process.

Provisions
       Defines budget unit and non-custodial federal monies.
       Requires budget units to track non-custodial federal monies separately from other accounts or funds.
       Authorizes the Legislature to appropriate non-custodial federal monies. If the Legislature does not make an
        appropriation for a specific fund, grant or block of monies, that duty goes back to the agency that administers
        those specific monies.
       Requires the Legislature to designate a specific purpose when appropriating federal funds.
       Allows the Legislature to make a lump-sum appropriation for monies that may be received while the Legislature
        is not in session and requires any expenditure of these monies to first be reviewed by the Joint Legislative
        Budget Committee (JLBC).
       States that if the Legislature appropriates more federal monies than are received, the original appropriation shall
        be reduced. Additionally, the activity being financed by these monies shall also be proportionately reduced.
       States that if more federal monies are received than were appropriated by the Legislature, the original
        appropriation of federal and state monies made by the Legislature does not change. Requires the Treasurer to
        credit the extra monies to the agency account and directs JLBC to review expenditures of the additional monies.
Amendments
Committee on Appropriations

                                                        Page 60 of 79
The strike-everything amendment was adopted.




                                               Page 61 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2375
                                              foster parents; participation
                                       Sponsor: Representative Murphy

DP          Committee on Health and Human Services

    X       Caucus and COW

            House Engrossed

HB 2375 decreases the required number of days in which a child must have been living in a foster home for that
foster parent or a representative of that foster home to be included in the child’s periodic review hearing.

History
Arizona Revised Statute (A.R.S) § 8-501 defines receiving foster home as a licensed foster home suitable for
immediate placement of children when taken into custody or pending medical examination and court disposition.

A.R.S. § 8-201 defines a dependant child, in part, as a child adjudicated to be in need of proper parental care, who is
not being provided with the necessities of life, or a child whose home is unfit by reason of abuse, neglect, cruelty, or
depravity by a parent or guardian. Current law specifies the process that determines if a child is dependent, which
begins when a dependency petition is filed. A dependency petition can be filed by any interested party. The filing of
a dependency petition initiates a process that could include a dependency adjudication. At a dependency adjudication,
a judge decides whether or not the child is a dependant child. Within thirty days of a dependency adjudication, a
disposition hearing should be held during which the judge reviews the case plan that has been prepared for the child
and confirms if it is appropriate. Following the disposition hearing, a review hearing must be held every six months.
The review hearings provide a chance for the judge to confirm that the child is still dependant and if reasonable
efforts have been made to achieve reunification of the child with his or her parents (A.R.S. Title 8, Chapter 10,
Article 3).

Provisions
       Reduces to ten, the required number of days in which a child must have been living in a receiving foster home
        for the foster parent to be contacted and allowed to participate in periodic review hearings.
       Decreases to ten, the required number of days in which a child must have been living in a shelter care facility or
        receiving foster home for that facility or home to be contacted and allowed to participate in periodic review
        hearings.




                                                       Page 62 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2381
                                   health insurance; utilization review; definition
                                        Sponsor: Representative McLain

DPA
S/E         Committee on Banking and Insurance

    X       Caucus and COW

            House Engrossed

HB 2381 clarifies the meaning of a utilization review.

                          Summary of the proposed strike-everything amendment to HB 2381

History
A utilization review (UR) is a system used for determining the most efficient and appropriate way to allocate
inpatient and outpatient resources and services that may or may not be covered by the health care insurer.

An adverse decision is a utilization review determination by a utilization review agent (URA) that a requested service
or claim for a service is not covered or is not medically necessary under the plan. The right to appeal does not depend
on whether the adverse decision is a coverage-only decision or a medical necessity decision.

Health care insurers that partake in a utilization review by only participating in “coverage-only” decisions must either
be a certified URA or have a contract with an accredited URA. Insurers that make coverage-only decisions are not
exempt from UR laws. If an insurer contracts with an URA entity, the insurer has the right to overrule the URA’s
decision.

Provisions
       Redefines adverse decision to include a coverage-only determination that a requested service or claim for service
        is not covered under a plan if that determination results in a denial or nonpayment of the service or plan.
       Changes the utilization review definition to include coverage only determinations.
       Specifies that a utilization review plan means a summary description of the utilization review guidelines,
        protocols, procedures, and written standards and criteria for medical necessity and coverage-only determinations.
       Exempts a health care insurer or a person on behalf of a health care insurer that conducts URs that consist
        entirely of coverage-only determinations from the provisions pertaining to utilization review statute.
       Mandates the aforementioned exemption does not excuse the person from conducting URs in accordance with
        the utilization review plan.
       Determines that a URA is able to deny requested medical or health care services or claims based on either
        medical necessity or coverage-only determinations.
       States that an informal reconsideration, expedited review or formal appeal of a member’s complaint need not be
        performed by a licensed health care professional if the member’s complaint is based on a coverage-only decision.
       Defines coverage only.
       Makes technical and conforming changes.




                                                       Page 63 of 79
                               HOUSE OF REPRESENTATIVES
                                                    HB 2388
                                              School crossings; signs
                                      Sponsor: Representative Biggs

DPA Committee on Transportation and Infrastructure

    X   Caucus and COW

       House Engrossed
HB 2388 provides guidance for the wording to be used on portable signs at school crossings.

History
In 2006 the law was changed to establish a special assessment equal to the civil penalty for a civil traffic violation
committed in a school crossing, if the violation occurs during the time portable signs are in use. The law further
stipulates that the civil penalty for a school crossing violation is doubled when “stop when children are in crosswalk”
signs are present.

However, according to some cities, the current structure of the statute requires signage changes to comply with the
statute, which results in a cost to the city. Consequently, these cities have asked that the statute be amended to
“indicate” the language that should be printed on the crossing signs.

Currently, the Director of the Department of Transportation, with respect to state highways, or local authorities with
respect to county highways or city or town streets, along with governing boards of school districts, have the authority
to mark crosswalks in front of school grounds where children are required to cross those highways or streets.

A uniform system provides for how the crosswalks will be marked, erection of portable signs, placement of the signs
and the verbiage on them. Currently, these signs read “school in session” and “stop when children are in crosswalk”.

Motor vehicles approaching the crosswalk are prohibited from proceeding at a speed greater than fifteen miles per
hour and are required to come to a complete stop when the crosswalk is occupied by a person.

Provisions
  Mandates that the County Board of Supervisors as it relates to county highways and the Governing Board of a
   city or town as it relates to city or town streets mark or cause to be marked locations where school children are
   required to cross the street.
  Requires the school to remove portable signs within one hour after the school session.
  Requires, that in addition to portable signs indicating that school is in session, the school authorities must also
   place at school crossings signs that indicate that the driver must stop when children are in the crosswalk and that
   there be no passing.
  Requires vehicles approaching a crosswalk to not proceed at a speed greater than fifteen miles per hour, not pass
   another vehicle, and to stop when children are in the crosswalk.
  Makes technical and conforming changes.
Amendment
Committee on Transportation and Infrastructure
  Allows a designee of a city or town to work with the district governing board on the creation and placement of
   locations where children cross.
  Permits portable signs to be removed at another time other than within one hour after the end of a school session,
   as established in an agreement with a city or town.
  Removes “approaching” a school crossing and states that a vehicle can not exceed a speed of fifteen miles per
   hour between portable signs.




                                                    Page 64 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2437
                                      school districts; internet based advertising
                                      Sponsor: Representative Kavanagh

DP          Committee on Education

    X       Caucus and COW
                                                                         **REVISED**
            House Engrossed

HB 2437 allows school districts to sell advertising on the internet.

History
A school district governing board may sell advertising on the exterior of school buses. The advertisements must be
age appropriate, cannot promote any substance illegal for minors, such as alcohol, tobacco, drugs, or gambling, and
must comply with the state education policy of abstinence. Revenues from the sale of advertising space on school
buses are deposited in a separate fund designated for this purpose and are not subject to reversion. These monies must
first be used to comply with energy conservation measures or the purchase of alternative fuel support vehicles. If
these conditions are financially satisfied, the funds may be used for any student-related costs as determined by the
governing board (A.R.S. § 15-342).

Currently of the 219 school districts in Arizona, 151 have submitted their website information to the Arizona
Department of Education.

Provisions
       Authorizes school districts to sell advertising on the internet.
       Specifies that advertisements must be age appropriate, not contain promotion of any illegal substance for minors,
        including alcohol, tobacco, drugs, or gambling, and must comply with the state sex education policy of
        abstinence.
       Directs school districts to establish a fund for the revenues from the sale of advertisement on the internet. These
        revenues are not subject to reversion and can be used for any student-related costs as determined by the school
        district’s governing board.
       Makes technical and conforming changes.




                                                        Page 65 of 79
                                   HOUSE OF REPRESENTATIVES
                                                        HB 2448
                                          national guard; morale, welfare fund
                                       Sponsor: Representative Weiers JP

DP           Committee on Military Affairs and Public Safety

    DP       Committee on Appropriations

    X        Caucus and COW

             House Engrossed

HB 2448 redacts the mandate that the support personnel of the Morale, Welfare and Recreational Fund (Fund) be
employees of the Fund and not of the state.

History
Currently, A.R.S. Section 26-153 requires support personnel of the Fund be employed by the Fund and not by the
state. The Fund was created by Laws 1984, Chapter 276 to support morale, welfare and recreational activities for
guardsmen and non-state employed support personnel. The Fund is administered by the Adjutant General pursuant
to the regulations of the general staff, subject to the approval of the Governor. Fund monies are non-appropriated and
exempt from lapsing.

The Fund generates monies through:
       Transfers from the Arizona Department of Transportation obtained from Special National Guard plate
        annual donations.
       Proceeds from the disposal of unserviceable military property belonging to the State.
       Non-appropriated monies received by the National Guard from State and Federal revenue producing military
        activities relating to morale, welfare and recreation.

The Department of Emergency and Military Affairs (DEMA) is directed by the Adjutant General, currently Major
General Hugo E. Salazar. According to DEMA, there is one person serving as support personnel for the Fund.

Provisions
        Allows support personnel of the Fund to be employees of the state instead of the Fund.




                                                        Page 66 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2459
                                        schools; superintendents; certification
                                       Sponsor: Representative Goodale

DPA Committee on Education
    X      Caucus and COW

           House Engrossed

HB 2459 removes the supervision and control of certification for district superintendents from the powers and duties
of the Arizona State Board of Education (SBE) and authorizes school district governing boards to establish the
prerequisites for the superintendent of their district.

History
The SBE controls the certification process of anyone engaged in instructional work in a classroom, which includes
laboratory teachers, speech therapists, principals, or superintendents. In November 1997, SBE drafted rules regarding
the evaluation of educators applying for state certifications. The rules require anyone who wishes to have a teacher
certification to pass a test of subject knowledge. The Arizona Educator Proficiency Assessments (AEPA) were
created to verify that all teachers possess the necessary knowledge to teach in Arizona public schools. Additionally,
superintendents, principals, and supervisors must pass the appropriate AEPA in order to receive their certification.

SBE rules, most recently revised in April of 2008, stipulate the following requirements for a superintendent
certificate:
            1.   A Master’s or more advanced degree including at least 60 graduate semester hours;
            2.   Completion of a program in educational administration for superintendents with at least 36 graduate
                 semester hours of education administrative courses, including three credit hours in school law and three
                 credit hours in school finance;
            3.   Three years of verified full-time teaching experience or related education services experience in a
                 prekindergarten through grade 12 setting;
            4.   A practicum as a superintendent, or two years verified experience as a superintendent, assistant
                 superintendent, or associate superintendent in prekindergarten through grade 12;
            5.   A passing score on the superintendent portion of the Arizona Administrator Proficiency Assessment;
            6.   A valid fingerprint clearance card issued by the Arizona Department of Public Safety.
Currently, a superintendent certificate is required for individuals who hold the title of superintendent, assistant
superintendent, or associate superintendent and who perform duties directly relevant to curriculum, instruction,
certified employee evaluations, and instructional supervision. The certificate is valid for six years (A.A.C. R7-2-
614).

Provisions
       Eliminates the power of the SBE to supervise and control the certification process for school district
        superintendents.
       Provides a school district governing board with the authority to determine the qualifications for the
        superintendent of their district. If more than one district jointly employs a superintendent, the governing boards
        must jointly determine the qualifications for the superintendent.
       Makes technical and conforming changes.

Amendments
Education:
  Reinstates the power of the SBE to provide certification for district superintendents.
  Specifies that the SBE cannot require district superintendents to obtain SBE certification.


                                                       Page 67 of 79
   Stipulates that a school district governing board must set the qualifications for superintendent at a public
    meeting.
   Requires a district superintendent to have a valid fingerprint clearance card.
   States that the SBE cannot require business managers of school districts to be certified.
   Recommends that district governing boards hire a business manager with expertise in finance.




                                                 Page 68 of 79
                                  HOUSE OF REPRESENTATIVES
                                                        HB 2461
                                  developmental disabilities; program plans; burial
                                           Sponsor: Representative Ash

DPA Committee on Health and Human Services

    X       Caucus and COW

            House Engrossed

HB 2461 requires the inclusion of burial arrangements in the individual program plan (IPP) for developmentally
disabled (DD) persons, and allows monies to be set aside and excluded from eligibility requirements for the purpose
of funding the burial arrangements.

History
Arizona Revised Statutes (A.R.S.) § 36-596.51 defines IPP team as a group of people interested in or providing
individual support to a DD person and may include a parent or guardian, family members, health professionals,
service providers, the case manager, and others. A.R.S. § 36-551 defines IPP as a written statement of services to be
provided to a DD person, including habilitation goals and objectives, which is developed following initial placement
evaluation and revised after periodic evaluations.

Provisions
       Requires the IPP team to meet annually to determine what services should be included in the IPP.
       Stipulates that the IPP shall be distributed to the IPP team not more than twenty days after the annual review
        meeting.
       Specifies that the IPP shall include provisions relating to the client’s burial arrangements, including a choice of
        cremation or burial and instructions regarding religious services, if any.
       Allows monies set aside for the purpose of burial to be excluded from income eligibility requirements.
       Indicates that if the burial plan is funded by the irrevocable assignment of the proceeds of a life insurance or
        annuity policy, there is no value limit to the plan if the assigned proceeds do not exceed the fair market value of
        the burial plan.
       Permits burial plots for the client and the client’s spouse and immediate family members to include all funeral
        and burial costs.

Amendments
Health and Human Services:
   o Stipulates that monies set aside are to be included in the eligibility requirements.
   o Eliminates the provision about life insurance and annuity policies, as well as the references to the client’s
        spouse and family members’ burial costs.
   o States that burial costs are not eh responsibility of the state.




                                                        Page 69 of 79
                                   HOUSE OF REPRESENTATIVES
                                                        HB 2480
                               regional transportation authorities; qualifying counties
                                          Sponsor: Representative Jones

DP           Committee on Transportation and Infrastructure

    DP       Committee on Ways and Means

    X        Caucus and COW

         House Engrossed
HB 2480 allows counties with a population of greater than 200,000 but equal to or less than 400,000 to create a
regional transportation authority (RTA).

History
A RTA, as currently defined in statute, is a public, political, tax-levying public improvement and taxing subdivision
of the state and a municipal corporation created in a county with a population of between 400,000 and 1.2 million
persons. Authority is vested in a board composed of members of the regional council of governments. The board is
charged with approving a request to the electorate for the transportation excise tax and elements of and changes to the
regional transportation plan (RTP). The board has the sole authority to implement elements of the RTP.

Counties in Arizona may adopt special privilege taxes called excise taxes for transportation purposes. The tax may
not exceed ten percent of the state tax rate which equates .5%. Maricopa, Pinal, Gila and Pima counties currently
have excise taxes. Revenues collected from the tax for counties between 400,000 and 1.2 million are deposited in the
regional transportation fund (RTF). Other counties deposit the excise tax the county’s regional area road fund.

According to U.S. Census Bureau estimates, revised in February 2009, Yavapai and Pinal counties have populations
greater than 200,000. Yuma and Mohave counties have estimated populations greater than 190,000. (see attachment)

Provisions
        Allows the Board of Supervisors of a county with a population of 400,000 or less but more than 200,000 to
         establish a RTA in the county.
        Allows counties with a population exceeding 200,000 but no greater than 1.2 million to collect a transportation
         excise tax for a RTA.
        Changes the population requirement to organize an intergovernmental public transportation authority (ITPA) to
         200,000 people or less.
        States that the growth of a county to more than 200,000 persons does not cause the dissolution of an ITPA.
        Charges the treasurer of the Public Transportation Authority Fund (PTAF) with maintaining public transportation
         funding consisting of monies received from the county transportation excise tax.
        Prohibits counties with a population of 400,000 or less but more than 200,000 from levying both a transportation
         excise tax in and a transportation excise tax for roads.
        Stipulates that net revenues for counties with a population of more than 400,000 but less than 1.2 million must be
         deposited in the RTF.
        Mandates that net revenues for counties with a population of more than 200,000 but 400,000 or less must be
         deposited in the PTAF or the RTF or both.
        Modifies the definition of county.
        Makes technical and conforming changes.




                                                        Page 70 of 79
Page 71 of 79
                               Arizona County Population Map




                                                        127,450
                    194,944
                                                                                                 69,980
                                                                                   111,273




                                             212,635




                      20,172
                                                                              51,994

                                         3,880,181

                                                                                                          7,754

                                                                    299,246             34,769
                    190,557




                                                          967,089
                                                                                             127,866



Based on the updated information from the U.S. Census Bureau
Revised February 20, 2009
http://quickfacts.census.gov/qfd/states/04000.html                       42,845




                                                         Page 72 of 79
                                  HOUSE OF REPRESENTATIVES
                                                      HB 2481
                                 Joint legislative committee; transportation; Mexico
                                         Sponsor: Representative Jones

DP          Committee on Transportation and Infrastructure

    X       Caucus and COW

        House Engrossed
HB 2481 establishes the Joint Legislative Review Committee on Transportation between Sonora, Mexico and
Arizona (Committee).

History
Laws 1997, Chapter 1, Section 437 established the Joint Legislative Review Committee on Transportation between
Sonora, Mexico and Arizona. There were two annual reports dated December, 1999 and December, 2002 that were
filed by the Committee. Laws 2007, Ch. 267, Section 10 repealed the section establishing the Committee.

Provisions
       Outlines the Committee membership and specifies that certain members are advisory only and are not counted
        for purposes of a quorum. In addition, term limits are specified for certain members and allows certain members
        to be reimbursed for expenses.
        Requires the Committee to:
            Coordinate efforts of the Committee as reasonably practicable with a like committee established by Sonora,
             Mexico.
            Study issues and problems concerning transportation between Sonora, Mexico and Arizona, including the
             following:
                 The need to change and improve border crossing procedures and facilities.
                 The advantages and disadvantages of issuing temporary travel permits to Mexican commercial vehicles
                  entering Arizona.
                 The potential hazards of transporting hazardous materials.
                 The current and anticipated changes in the type and volume of traffic on highways that carry
                  commercial vehicles to the Arizona – Mexico border.
                 The environmental problems caused by the type and volume of traffic on highways that carry
                  commercial vehicles to the Arizona – Mexico border.
                 Potential financing of any highway construction or planning.
                 The impact of foreign commercial vehicles on the transportation infrastructure on this State.
                 The balance between revenues collected at ports of entry on the border between Sonora, Mexico and
                  this State and the costs associated with maintaining the infrastructure within 25 miles of the border.
            Annually make recommendations to the Legislature regarding appropriations made pursuant to A.R.S. § 28-
        6547 related to the Safety Enforcement and Transportation Infrastructure Fund.
            Make recommendations to the Legislature that will help lessen current environmental, transportation
        infrastructure and safety problems caused by the additional traffic along with recommendations from businesses
        on both sides of the border that will improve road, air and rail transportation.
            Submit a report with its recommendations on or before December 1 of each calendar year to the Legislature,
        the Governor, the Chairman of the State Transportation Board and the committee established in Sonora, Mexico.




                                                      Page 73 of 79
                                  HOUSE OF REPRESENTATIVES
                                                       HB 2513
                                                   reverse mortgages
                                    Sponsor: Representatives Konopnicki

DP          Committee on Banking and Insurance

    X       Caucus and COW

            House Engrossed

HB 2513 adds a new chapter to Title 6, dealing with reverse mortgages.

History
A reverse mortgage is a loan against a home that lets the homeowner convert a portion of the equity in the home into
cash, and requires no repayment for as long as the homeowner lives in the home. The loan can be paid to the
homeowner all at once, as a regular monthly advance, or at times and in amounts that the homeowner and creditor
agree to. The homeowner’s estate is required to pay the back the loan plus interest and fees at death, or the
homeowner must pay back the loan if the homeowner or permanently moves out of the home.

Reverse mortgages are offered to persons 62-years-old or older, who own their home outright or have a very small
mortgage. Because the homeowner makes no monthly payments, the amount owed on the loan increases over time.
As the debt increases, the amount of equity in the home generally decreases. In most cases, the homeowner will
never owe more on the loan than what their home is worth, and if the amount for which the home is sold exceeds the
amount owed on the reverse mortgage, the balance goes to the homeowner or the homeowner’s heirs. Reverse
mortgage homeowners continue to own their homes, and are thus still responsible for property taxes, insurance, and
repairs. If the homeowner fails to pay for repairs, insurance and property taxes, the loan balance will become due and
payable.

Reverse mortgages are offered through private lenders, government agencies and mortgage brokers. According to the
United States Department of Housing and Urban Development (HUD), the number of reverse mortgages in insured
by the Federal Housing Authority is on the rise in Phoenix. In 2005, there were 919 reverse mortgages, up 59 percent
from the 2004 total of 577. In 2006, the number jumped more than 216 percent, to 2,905.

Provisions
                                                    Financial Counseling
       Requires that before accepting a final and complete application for a reverse mortgage or assessing any fees, the
        originator must:
            Provide the homeowner a list of at least five housing counseling agencies, at least two of which who are able
             to provide counseling by telephone.
            Receive certification from the homeowner or the homeowner’s representative that the homeowner has
             received counseling from a housing counseling agency. The certification is required to be signed by the
             homeowner and the agency counselor, and must include the date of the counseling as well as the name and
             address of the counselor and the homeowner. The date on the certification must show that the counseling
             occurred within the six months prior to the homeowner accepting a final and complete application for a
             reverse mortgage. The originator is required to keep the certification for the term of the reverse mortgage.

       Mandates that adequate financial counseling be provided by a counselor who is an independent third party.

       Explains that to be considered an independent third party, the counselor can not be associated with or paid by a
        party who:
           Originates or services the reverse mortgage.
           Funds the loan underlying the reverse mortgage.
           Sells annuities, investments, long-term care insurance or any other type of financial or insurance product.



                                                       Page 74 of 79
   Instructs that counseling services be provided by housing counseling agencies and by counselors who adhere to
    uniform counseling protocols approved by HUD.

                                                 Required Disclosures
   Orders the originator, at least ten days before closing, to provide the homeowner with access to a statement that
    1) informs the homeowner that his or her liability under the reverse mortgage is limited and 2) explains the
    homeowner’s rights, obligations, remedies with respect to temporary absences from the home, late payments and
    payment default by the originator and all conditions requiring satisfaction of the loan obligation.

   Directs the originator to fully disclose in writing before entering into a reverse mortgage the following
    information:
        All costs charged by the originator and whether they are required to obtain the reverse mortgage.
        All terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserve
         delinquency charges, foreclosure proceedings, anticipation of maturity and any additional and secondary
         liens.
        A statement of the projected total cost of the reverse mortgage to the homeowner based on the projected
         future loan balance for two or more projected loan terms. The statement must include:
             The cost for a short term mortgage.
             The cost for a loan term equaling the actuarial life expectancy of the homeowner.

                                            Reverse Mortgage Agreement
   Allows the reverse mortgage to provide for a fixed or variable interest rate or future sharing of the appreciation
    in the value of the property between the originator and the homeowner.

   Requires the reverse mortgage agreement to disclose any interest rate or other fees to be charged during the life
    of the mortgage.

   Mandates that the reverse mortgage agreement provide for future payments to the homeowner by payment of the
    amount based on accumulated equity minus applicable fees and charges according to the method that the
    homeowner selects from the following:
      Based on a line of credit.
      On a monthly basis over a term specified by the homeowner.
      On a monthly basis over a term specified by the homeowner and based on a line of credit.
      On a monthly basis over the tenure of the homeowner.
      On a monthly basis over the tenure of the homeowner and based on a line of credit.

   Directs the reverse mortgage to provide that the homeowner may change the method of payment to any other
    approved method of payment, except in the case of a fixed rate reverse mortgage.

   Instructs that the reverse mortgage must contain restrictions ensuring that the homeowner does not fund any
    unnecessary costs for obtaining the reverse mortgage.

   Commands the originator to provide the homeowner with a yearly summary of the total principal amount paid to
    the homeowner under the loan secured by the reverse mortgage, the total amount of deferred interest added to the
    principal and the outstanding loan balance at the end of the preceding year.

   Permits whole or partial prepayment without penalty at any time during the term of the reverse mortgage.

   Clarifies that penalty does not include:
       Any fees, payments or other charges that would otherwise be due when the reverse mortgage becomes due
        and payable.
       Any closing costs that, according to the agreement, the homeowner owes if he or she repays the reverse
        mortgage in whole or in part before the date in the agreement, so long as the repayment occurs within five
        years of the date the agreement was made.

   Makes reverse mortgages due and payable if:
      The property is not the principal residence of at least one homeowner.
      The homeowner conveys all of his or her title in the property and no other homeowner retains title.
      The homeowner fails to occupy the property for more than 12 months due to physical or mental illness and
       the property is not the principal residence of at least one other homeowner.
      An obligation of the homeowner under the mortgage is not performed.
                                                   Page 75 of 79
   States that the reverse mortgage will not become due and payable if the legal title to the property is held in the
    name of a trust and the occupant is a beneficiary of the trust who uses the property as a principal residence.

   Subjects an originator’s right to collect the outstanding balance under the loan to the statute of limitations for
    written loan contracts. The statute of limitations begins tolling when:
        The date that the reverse mortgage becomes due and payable as specified in the agreement, or
        The date the originator accelerates the loan due to default.



                                   Homeowner Liability and Prohibited Practices
   Specifies that the homeowner is not liable for a difference between the net amount of the remaining debt of the
    homeowner under the reverse mortgage and the amount recovered by the originator from the net sales proceeds
    from the dwelling that is subject to the reverse mortgage.

   Prohibits an originator from:
       Offering an annuity, investment, long-term care insurance or other type of financial instrument to the
        homeowner before the closing of the reverse mortgage or before the expiration of the right of the
        homeowner to rescind the reverse mortgage agreement.
       Referring the homeowner to anyone for the purchase of an annuity before the closing of the reverse
        mortgage or before the expiration of the right of the homeowner to rescind the reverse mortgage.

                                                     Enforcement
   States that acts or practices that violated A.R.S. Title 6, Chapter 16 constitutes consumer fraud and is subject to
    enforcement through private action and enforcement by the Attorney General.

   Stipulates that any provision of a reverse mortgage agreement that violates A.R.S. Title 6, Chapter 16 is
    unenforceable against the homeowner.

   Requires any private action against a creditor to be commenced within six years after the closing of the reverse
    mortgage.

   Explains that the remedies provided in A.R.S. Title 6, Chapter 16 are not intended to be the exclusive remedies
    available to the homeowner.




                                                    Page 76 of 79
                                HOUSE OF REPRESENTATIVES
                                                    HB 2514
                                   amateur radio; structures; accommodation
                                      Sponsor: Representative McLain

DP         Committee on Military Affairs and Public Safety

    X      Caucus and COW

           House Engrossed

HB 2514 requires municipalities, counties and community organizations to provide reasonable accommodation for
amateur radio station emergency service communications antennae.

History
According to the Federal Communications Commission (FCC), amateur radio stations are a voluntary noncommercial
communication service, the operation of which requires an amateur operator license grant from the FCC. In addition
to being a hobby, the job of amateur radio operators is to provide a back-up mode of communication and alert during
emergencies.

A.R.S. Section 9-462.01 lists the buildings and structures that municipal governments have the authority to regulate
and lists eleven other areas in which a municipal legislative body may choose to exercise its authority, including the
establishment of a variety of districts. Pursuant to A.R.S. Section 11-821, counties are responsible for developing and
adopting a comprehensive long-term county plan for the development of the county’s area of jurisdiction.

A.R.S. Section 33-1808 lists the items that a Homeowners’ Association (HOA) is not allowed to prohibit from being
displayed. Currently, with a couple of individual variations regarding the appropriate size and manner of display, this
includes POW/MIA flags, the Arizona state flag and the Arizona Indian Nations flag and political signs.

Similar measures were introduced in the First and Second Regular Sessions of the 48 th Legislature as HB 2595 and
HB 2721 respectively. Both measures were passed in the House and held in the Senate.

Provisions
       Requires municipal zoning plans to provide for reasonable heights and dimensions for accommodation of
        amateur radio station emergency service communications antennae and structures.
       Requires county plans to provide for reasonable heights and dimensions for accommodation of amateur radio
        station emergency service communications antennae and structures in general zoning regulations.
       Requires HOAs to provide for reasonable heights and dimensions for accommodation of amateur radio station
        emergency communication antennae and structures.
       Makes technical and conforming changes.




                                                    Page 77 of 79
                                HOUSE OF REPRESENTATIVES
                                                    HB 2533
                                    unlawful roadside solicitation of employment
                                     Sponsor: Representative Kavanagh

DP         Committee on Judiciary

    X      Caucus and COW

           House Engrossed

HB 2533 specifies a Class 1 misdemeanor for standing in or along a street, roadway or highway and impeding traffic
while attempting to solicit employment from an occupant of a motor vehicle.

History
For a Class 1 misdemeanor, a person may be sentenced to up to six months in jail and may be sentenced to a fine of
up to $2,500.

Provisions
       Specifies a Class 1 misdemeanor for standing in or along a street, roadway, or highway and soliciting
        employment from an occupant of a motor vehicle and impeding the flow of traffic.

       Provides an exemption for persons who perform the solicited work within 500 feet of the place at which they
        were standing.




                                                    Page 78 of 79
                                HOUSE OF REPRESENTATIVES
                                                    HB 2615
                                 government transparency; political subdivisions
                                   Sponsor: Representative Montenegro

DP         Committee on Government

    X      Committee on Appropriations

           Caucus and COW

           House Engrossed

HB 2615 extends Arizona Department of Administration’s official internet database of receipts and expenditures of
state monies to include all local government receipts and expenditures.

History
In 2006 Congress passed and President Bush signed the Federal Funding Accountability and Transparency Act
(FFATA). The act requires the Office of Management and Budget to develop and maintain a free and public
searchable Website that contains data on all federal contracts and grants. The Website, www.federalspending.gov
(also accessed at www.usaspending.gov), went online in January 2008. In 2007 Kansas was the first state to sign into
law legislation creating a similar database. Other states that passed similar legislation are Hawaii, Minnesota,
Missouri, Texas, and Oklahoma.

Laws 2008, Chapter 312 requires the Arizona Department of Administration (ADOA) to create and maintain a public
Website logging the use of state monies by January 1, 2011. The Website must meet the following requirements:
                Be accessible and searchable by the general public.
                Contain a record of:
                     Payments to the state by individual budget units, programs, and vendors.
                     The manner of payment and the funding source.
                     The date and amount of each payment, and the state agency or budget unit making the
                      payment.
                     The name of the person or entity receiving the payment.
                     The primary location subject to the contract, including the county, city or town, and legislative
                      district.
                Have restrictions on confidential information related to individuals in the database, while allowing
                 ADOA to rely on an individual budget unit’s confidentiality practices free from civil liability.
                Be updated within 30 days after the end of each fiscal year.
                Link online with the Websites of the Governor, the Secretary of State, the State Treasurer, the
                 Legislature, and each budget unit with a Website.

ADOA has reported to the Joint Legislative Budget Committee that the database is currently being designed and the
estimated to cost is approximately $500,000.

Provisions
       Extends ADOA’s official internet database of receipts and expenditures of state monies to include all local
        government receipts and expenditures.
       Defines local government as any political subdivision of Arizona, including a county, city, town, community
        college district, school district, or any other special taxing district.




                                                    Page 79 of 79

				
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