Bill Text: AZ SB1469 | 2019 | Fifty-fourth Legislature 1st Regular | Chaptered
Bill Title: Agency consolidation; department of insurance
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2019-05-23 - Chapter 252 [SB1469 Detail]
Download: Arizona-2019-SB1469-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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CHAPTER 252
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SENATE BILL 1469 |
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AN ACT
amending sections 5‑324, 6‑101 and 6‑110, Arizona Revised Statutes; repealing section 6‑111, Arizona Revised Statutes; amending sections 6‑112, 6-113, 6-122, 6‑123.01, 6‑129, 6‑131, 6-135.01, 6‑991.12, 6-991.15, 6-991.16, 6-991.21, 10-2251, 11‑483, 11‑505, 13‑2301, 14-3603, 14-5411 and 20‑102, Arizona Revised Statutes; amending title 20, chapter 1, article 1, Arizona Revised Statutes, by adding section 20-124; REPEALING section 20‑1593, Arizona Revised Statutes; amending sections 23‑1361, 25-519 and 28‑455, Arizona Revised Statutes; amending section 28-4301, Arizona Revised Statutes, as amended by Laws 2014, chapter 81, section 1; amending section 28-4301, Arizona Revised Statutes, as amended by laws 2018, chapter 298, section 6; amending sections 28‑4405, 28‑5104, 28‑5105, 32‑1001, 32‑1391.01, 32‑1391.03, 32‑1391.04, 32-1391.05, 32‑1391.16, 32‑3601, 32‑3605, 32‑4301, 35-311, 35-321, 35-323, 35‑1210 and 38-871, Arizona Revised Statutes; amending section 41‑619.51, Arizona Revised Statutes, as amended by Laws 2018, chapter 46, SECTION 3 and chapter 296, section 12; repealing section 41‑619.51, Arizona Revised Statutes, as amended by Laws 2018, chapter 287, section 3; amending section 41‑1502, Arizona Revised Statutes; amending section 41‑1758, Arizona Revised Statutes, as amended by Laws 2018, chapter 46, section 4 and chapter 296, section 13; repealing section 41‑1758, Arizona Revised Statutes, as amended by Laws 2018, chapter 287, SECTION 4; amending section 41-3020.17, Arizona Revised Statutes; repealing sections 41-3022.17 and 41‑3024.03, Arizona Revised Statutes; amending section 41-3451, Arizona Revised Statutes, as amended by laws 2017, chapter 303, section 14; amending section 41-3451, Arizona Revised Statutes, as amended by laws 2018, chapter 298, section 8; amending sections 41-3453, 44-281, 44‑282, 44‑287, 44‑1601, 44‑3101, 46‑300.03, 48-101 and 48-3204, Arizona Revised Statutes; appropriating monies; relating to the department of insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-324, Arizona Revised Statutes, is amended to read:
5-324. Public records; identification of requester; supplying information by mail; records custodians; certification of records
A. All records of the department made or kept pursuant to this article are public records.
B. The department shall furnish information or copies from the records kept pursuant to this section subject to sections 39‑121.01 and 39‑121.03.
C. Persons requesting a copy of a public record pursuant to this section shall identify themselves and state the reason for making the request. The department shall verify the name and address of the person making the request by requiring the person to produce necessary information to ensure that the information given is true and correct.
D. The department shall not divulge any information from a watercraft registration record unless the person requesting the information provides the following:
1. The name of the owner.
2. The hull identification number of the watercraft.
3. The department issued department-issued number assigned to the watercraft.
E. The procedures required by subsections C and D of this section do not apply to:
1. This state or any of its departments, agencies or political subdivisions.
2. A court.
3. A law enforcement officer.
4. A licensed private investigator.
5. Financial institutions and enterprises under the jurisdiction of the department of financial institutions insurance and financial institutions or a federal monetary authority.
6. The federal government or any of its agencies.
7. An attorney admitted to practice in this state who alleges the information is relevant to any pending or potential court proceeding.
8. An operator of a self‑service storage facility located in this state who alleges both of the following:
(a) That the watercraft on which the operator is requesting the record is in the operator's possession.
(b) That the record is requested to allow the operator to notify the registered owner and any lienholders of record of the operator's intent to foreclose its lien and to sell the watercraft.
9. A towing company located in this state that alleges both of the following:
(a) That the watercraft on which the towing company is requesting the record is in the towing company's possession.
(b) That the record is requested to allow the towing company to notify the registered owner and any lienholders of record, if known, of the towing company's intent to sell the watercraft.
10. An insurance company.
F. The department may supply the requested information by mail or telecommunications.
G. The director may designate as custodian of the department's public records those department employees the director deems necessary. If a public record of the department has been certified by a records custodian and authenticated as required under proof of records (records of public officials), rules of civil procedure and the rules of evidence for courts in this state, it is admissible in evidence without further foundation.
H. Notwithstanding subsection D of this section, information may be supplied for commercial purposes, as defined in section 39‑121.03, if the information is transmitted in a machine readable machine‑readable form such as computer magnetic tape to the person making the request.
I. The department shall maintain for a period of at least one year a file of requests for information that shall be maintained by the name of the person whose record was requested, except those requests made by government agencies.
Sec. 2. Heading change
The chapter heading of title 6, chapter 1, Arizona Revised Statutes, is changed from "DEPARTMENT OF FINANCIAL INSTITUTIONS" to "FINANCIAL INSTITUTIONS DIVISION".
Sec. 3. Section 6-101, Arizona Revised Statutes, is amended to read:
6-101. Definitions
In this title, unless the context otherwise requires:
1. "Automated teller machine" means an automated device that is established by a bank, savings and loan association or credit union and that facilitates customer‑bank communications activities, including taking deposits and disbursing cash drawn against a customer's deposit account or a customer's preapproved loan account, at a location separate from the home office or a branch.
2. "Bank" means a corporation that holds a banking permit issued pursuant to chapter 2 of this title.
3. "Banking office" means any place of business of the bank at which deposits are received, checks are paid or money is loaned but does not include the premises used for computer operations, proofing, record keeping, accounting, storage, maintenance or other administrative or service functions.
4. "Branch" means any banking office other than the principal banking office.
5. "Department" means the department of financial institutions insurance and financial institutions.
6. "Director" has the same meaning prescribed in section 20‑102.
7. "Division" means the financial institutions division within the department.
6. 8. "Enterprise" means any person under the jurisdiction of the department other than a financial institution.
7. 9. "Federal deposit insurance corporation" includes any successor to the corporation or other agency or instrumentality of the United States that undertakes to discharge the purposes of the corporation.
8. 10. "Financial institution" means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department.
9. 11. "Home state" means the state that has granted the bank its charter, permit or license to operate.
10. 12. "Host state" means the state in which a financial institution is doing business and not the state that has granted the bank its charter, permit or license to operate.
11. 13. "In‑state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office located in this state.
12. 14. "International banking facility" means a facility that is represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and that is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an edge corporation organized under section 25(a) of the federal reserve act (12 United States Code sections 611 through 631) or an agreement corporation having an agreement or undertaking with the board of governors of the federal reserve system under section 25 of the federal reserve act (12 United States Code sections 601 through 604(a)) that includes only international banking facility time deposits and international banking facility extensions of credit as defined in 12 Code of Federal Regulations part 204.
13. 15. "National credit union administration" includes any successor to the organization or other agency or instrumentality of the United States that undertakes to discharge the purposes of the organization.
14. 16. "Out‑of‑state bank" means a bank, savings bank or savings and loan association that is approved by the superintendent pursuant to section 6‑322 and that has a charter, a permit or any other license to operate that is issued by a state other than this state.
15. 17. "Out‑of‑state financial institution" means a state or federal bank, savings bank, savings and loan association or holding company with its home office in a state other than this state.
16. 18. "Superintendent" means the superintendent of the financial institutions division of the department.
17. 19. "Title" includes this title, title 32, chapters 9 and 36 and title 44, chapter 2.1.
Sec. 4. Heading change
The article heading of title 6, chapter 1, article 2, Arizona Revised Statutes, is changed from "DEPARTMENT OF FINANCIAL INSTITUTIONS" to "FINANCIAL INSTITUTIONS DIVISION".
Sec. 5. Section 6-110, Arizona Revised Statutes, is amended to read:
6-110. Financial institutions division; superintendent
The department of financial institutions division is established in the department. The department has charge of director shall appoint a superintendent to assist the director with the execution of the laws of this state relating to financial institutions and enterprises.
Sec. 6. Repeal
Section 6-111, Arizona Revised Statutes, is repealed.
Sec. 7. Section 6-112, Arizona Revised Statutes, is amended to read:
6-112. Deputy superintendent; examiners; personnel
Subject to title 41, chapter 4, article 4, the superintendent director:
1. Shall appoint a deputy superintendent who shall have the power and perform the duties of the superintendent. The deputy superintendent shall hold such appointment at the will and pleasure of the superintendent director.
2. May appoint such assistants as he the director deems necessary whose powers shall be are limited to the powers, duties or functions set forth in the appointment.
3. Shall appoint such examiners and other personnel as necessary.
Sec. 8. Section 6-113, Arizona Revised Statutes, is amended to read:
6-113. Acts prohibited; officers; employees
A. Neither The director, the superintendent, the deputy superintendent nor and any personnel of the department shall may not do any of the following with respect to any financial institution or enterprise under the jurisdiction of the department:
1. Be indebted, directly or indirectly, as borrower, accommodation endorser, surety or guarantor, to any such financial institution or enterprise unless such the indebtedness was contracted before becoming employed by the department and is fully disclosed to the department, except that an employee of the department, other than the director, the superintendent or the deputy superintendent, may become so indebted if the indebtedness is both:
(a) Incurred on terms no not more favorable than those available to the general public.
(b) Fully disclosed to and approved by the superintendent director before funding, including the following information:
(i) The date of the indebtedness.
(ii) The amount.
(iii) The interest rate.
(iv) Other obligors.
(v) Security.
(vi) The purpose for which the monies are to be used. The borrower shall not participate in any examination of the lender conducted by the department.
2. Be an officer, director or employee of any such financial institution or enterprise.
3. Own or deal in, directly or indirectly, the shares or obligations of any such financial institution or enterprise.
4. Be interested in, directly or indirectly, or receive from any such financial institution or enterprise, or any officer, director or employee thereof of the financial institution or enterprise, any salary, fee, compensation or other valuable thing by way of gift, credit, compensation for services or otherwise.
5. Be interested in or engage in the negotiation of any loan to, obligation of, or accommodation for another person to or with any such financial institution or enterprise.
B. Notwithstanding the provisions of subsection A of this section, the director, the superintendent, the deputy superintendent and any personnel of the department may:
1. Maintain demand, savings, time, share and trust accounts in any financial institution.
2. Become a beneficiary of any trust or estate administered by any fiduciary under the jurisdiction of the department division.
3. Become indebted to and own and deal in shares and obligations of national banks, federal savings and loan associations and federal credit unions.
Sec. 9. Section 6-122, Arizona Revised Statutes, is amended to read:
6-122. Superintendent; authority; duties
A. The superintendent has the authority and responsibility for the discharge of all duties imposed by law on the department division.
B. The superintendent shall:
1. Examine or cause to be examined each financial institution annually, except financial institution holding companies, banks, savings and loan associations, credit unions and consumer lenders, and more frequently if the superintendent considers it necessary.
2. Examine or cause to be examined each bank, credit union and savings and loan association at the superintendent's discretion but at least once in every twenty‑four month period.
3. Examine or cause to be examined the business and affairs of any enterprise and any consumer lender for the purpose of administering and enforcing this title at the superintendent's discretion.
4. Examine or cause to be examined financial institution holding companies as frequently as the superintendent considers necessary to administer and enforce this title.
5. Notwithstanding paragraph 3 of this subsection, examine or cause to be examined the accounts held in trust by each escrow agent at least once in every two-year period pursuant to section 20‑1593 and examine or cause to be examined each escrow agent at least once in every four-year period or more frequently if the superintendent considers it necessary.
6. Publish a consumer information brochure that includes:
(a) The finance charges permitted by this state.
(b) The types of insurance that may be offered but that are not required by law to be purchased with the granting of a loan.
(c) Interest rate limitations on all lenders including amounts that may not be charged to borrowers.
(d) Consumer rights and means of recourse from unfair practitioners.
7. Make it a priority to encourage the growth of state‑chartered financial institutions in this state and by February 1 of each calendar year notify the governor, the president of the senate and the speaker of the house of representatives if the total number of state‑chartered banks or state‑chartered credit unions decreases during the prior calendar year.
C. Notwithstanding subsection B, paragraph 5 of this section, an escrow agent shall be examined within twelve months when an escrow agent's license is transferred or assigned pursuant to section 6‑813 or when control of the license is otherwise acquired.
Sec. 10. Section 6-123.01, Arizona Revised Statutes, is amended to read:
6-123.01. Fingerprint requirements; fees
A. Before receiving and holding a license, permit, certificate or permission to organize a bank, savings and loan association or credit union, the superintendent may require an applicant, licensee, active manager or responsible individual or an organizer, director or officer of any corporate applicant or licensee to submit a full set of fingerprints and fees to the department. The department of financial institutions insurance and financial institutions shall submit the fingerprints and fees to the department of public safety, or the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L. 110‑289; 122 Stat. 2810; 12 United States Code sections 5101 through 5116) or its successor, for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
B. The fees that the department collects under subsection A of this section shall be credited pursuant to section 35‑148.
C. The applicant is responsible for providing the department with readable fingerprints. The applicant shall pay any costs that are attributable to refingerprinting due to the unreadability of any fingerprints and any fees that are required for the resubmission of fingerprints.
D. The department may issue a temporary license or certificate or grant temporary permission to organize to an original applicant before the department receives the results of a criminal records check if there is not evidence or reasonable suspicion that the applicant has a criminal history background that would be cause for denial of a license, certificate or permission to organize. The department may terminate the temporary license or certificate or permission to organize if a fingerprint card is returned as unreadable and the applicant fails to submit new fingerprints within ten days after being notified by the department that the original card was unreadable or if the results of the criminal records check reveal grounds for the denial of the license or certificate or permission to organize. The temporary license or certificate or permission to organize shall not be effective longer than one hundred eighty days.
E. The superintendent may require a current licensee, organizer, director, active manager, responsible individual or officer of any corporate licensee to submit a full set of fingerprints to the department. The department of financial institutions insurance and financial institutions shall submit the fingerprints and fees to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
F. This section does not affect the department's authority to otherwise issue, deny, cancel, terminate, suspend or revoke a license.
Sec. 11. Section 6-129, Arizona Revised Statutes, is amended to read:
6-129. Records; disclosure and limitations on disclosure; evidentiary effect
A. Except as otherwise provided by this title, the records of the department relating to financial institutions shall are not be public documents, nor shall they be are not open for inspection by the public and neither the superintendent nor director and any member of the superintendent's director's staff shall may not disclose any information obtained in the discharge of official duties to any person not connected with the department.
B. Records and information may be disclosed as follows:
1. To representatives of federal agencies insuring accounts in the financial institution.
2. To representatives of state or federal agencies and foreign countries having regulatory or supervisory authority over the activities of the financial institution or enterprise or similar financial institutions or enterprises if such representatives are permitted to and do, upon on request of the superintendent director, disclose similar information respecting those financial institutions or enterprises under their regulation or supervision or to such representatives who state in writing under oath that they shall maintain the confidentiality of such information.
3. To the attorney general of this state.
4. To a select committee of the legislature of this state appointed for the purpose of inspecting such records, but this paragraph shall does not permit disclosure of information as to the condition of any particular financial institution or enterprise, or disclosure of information as to any particular transaction or transactions of a financial institution or enterprise, or disclosure of information which that has been disclosed to a financial institution or enterprise by or on behalf of any person in connection with a transaction or proposed transaction with such financial institution or enterprise.
5. To a federal, state or county grand jury in response to a lawful subpoena.
6. To the auditor general of this state for the purpose of conducting audits authorized by law.
7. To state and federal law enforcement agencies.
8. To a federal home loan bank, as defined by the federal home loan act of 1932 (12 United States Code section 1422), after the department receives authorization to release the records from the financial institution that is the subject of the records.
C. The superintendent director may:
1. Disclose the fact of filing of applications with the department pursuant to this title, give notice of a hearing, if any, regarding such applications, and announce the superintendent's director's action thereon.
2. Disclose whether a person is or was certified or licensed by the department, the type of license or certificate held and the status of the license or certificate.
3. Disclose final decisions in connection with proceedings for the suspension or revocation of licenses or certificates issued pursuant to this title.
4. Disclose final decisions in connection with the issuance of an order to cease and desist issued pursuant to section 6‑137.
5. Disclose to the financial institution or enterprise or its holding company the results of any examination, inquiry or investigation by the department regarding that financial institution or enterprise.
6. Disclose to the financial institution or enterprise any complaint made concerning that financial institution or enterprise.
7. Disclose to any person who complains to the department concerning any financial institution or enterprise the result of any investigation concerning the complaint.
8. Prepare and circulate reports reflecting the assets and liabilities of financial institutions, including such other information considered pertinent to the purpose of each report for general statistical information.
9. Prepare and circulate reports provided by law.
D. Every official report of the department is prima facie evidence of the facts therein stated in any action or proceeding wherein the superintendent director is a party.
E. Disclosure of the results of any examination, inquiry or investigation disclosed to the financial institution or enterprise pursuant to subsection C, paragraph 5 of this section or disclosure of any complaint to the financial institution or enterprise pursuant to subsection C, paragraph 6 of this section does not make that information a public record, and the financial institution or enterprise or its holding company may not disclose any of the information to the general public. Under no circumstances shall any of the comments, conclusions or results of an examination, inquiry or investigation disclosed pursuant to subsection C, paragraph 5 of this section be used or referenced in any form by a financial institution, enterprise or holding company in any type of communication to a customer or potential customer.
F. Nothing in This section shall be construed to does not prevent the disclosure of information which that is admissible in evidence in any civil or criminal proceeding brought by or at the request of the superintendent director or this state to enforce or prosecute violations of this title or the rules or orders issued or adopted pursuant to this title.
Sec. 12. Section 6-131, Arizona Revised Statutes, is amended to read:
6-131. Right to sue and defend in actions; liability limitation; award of fees and other expenses
A. The superintendent director may sue and prosecute or defend in any action or proceeding in any court of this state or any other state or territory and in any court of the United States for the enforcement or protection of any right or pursuit of any remedy necessary or proper in connection with the matters committed to him the director for administration or in connection with any financial institution or enterprise under his the director's supervision, or the rights, liabilities, property or assets thereof, and may obtain without bond any order necessary to enforce or protect such rights or remedies, including but not limited to any of the following:
1. An order impounding records, books, documents, accounts, monies, negotiable instruments or papers and placing such articles in the possession of the superintendent director until completion of all proceedings undertaken pursuant to this title.
2. An order appointing a receiver.
3. An order restoring to any person in interest any monies or property, real or personal, which that may have been acquired or transferred in violation of this title.
B. Nothing in This section shall be construed to does not render the superintendent director as such superintendent director or otherwise liable to suit except as any other department or agency of the state may be liable under the general law.
C. In addition to any costs which that are awarded as prescribed by statute, a court shall award fees and other expenses to the department if the department prevails by an adjudication on the merits in any action brought by the department to enforce the provisions of this title or any rule promulgated adopted under this title. The department may apply pursuant to the applicable procedural rules for an award of attorney fees and other expenses authorized under this section and shall include as part of the application evidence of the department's eligibility for the award and the amount sought, including an itemized statement from the attorneys and experts stating the actual time expended in representing the department and the rate at which the fees were computed. As used in For the purposes of this subsection, "fees and other expenses" includes the reasonable expenses of expert witnesses, the reasonable cost of any study, analysis, report, test or project which that is found by the court to be necessary for the preparation of the department's case and reasonable and necessary attorney fees. The department shall deposit any fees or other expenses awarded by a court in the revolving fund provided established by section 6‑135.
Sec. 13. Section 6-135.01, Arizona Revised Statutes, is amended to read:
6-135.01. Department receivership revolving fund; use of fund
A. A The department receivership revolving fund is established to be administered by the superintendent. The fund shall consist of monies from the following sources:
1. Monies awarded and received as fees and costs in receiverships in which the superintendent was the receiver, as provided in section 6‑131.01.
2. Monies received from the department revolving fund, as provided in section 6‑135, subsection B.
B. Monies in the fund may be used to pay any costs incurred by the department division arising out of the administration of a receivership in which the superintendent is the receiver.
C. The superintendent director shall submit to the legislature with the department's annual budget request a full and complete account of the department receivership revolving fund through the end of its most recent fiscal year.
Sec. 14. Section 6-991.12, Arizona Revised Statutes, is amended to read:
6-991.12. Notice of claim to judgment debtor; response
A. Within the same time prescribed by section 6‑991.11, subsection C for applying for payment from the mortgage recovery fund, an aggrieved party who applies for payment shall serve notice of the claim on the judgment debtor, together with a copy of the application. The notice shall be in the following form:
NOTICE
Based on a judgment against you in favor of (enter name of claimant), application is being made to the Arizona department of financial institutions insurance and financial institutions for payment from the mortgage recovery fund.
If you wish to contest payment from the mortgage recovery fund, you must file a written response to the application. The superintendent of the financial institutions division of the department of insurance and financial institutions must receive your response at (address) within thirty‑five calendar days after the date this notice is (mailed, delivered, first published). You must also send a copy of the response to the claimant. If you fail to respond as required, you waive your right to present your objections to payment.
B. If the judgment debtor holds a current license issued by the department, the notice and copy of the application may be served by certified mail, return receipt requested, addressed to the judgment debtor's latest business or residence address on file with the department. If the judgment debtor does not hold a current license and if personal delivery cannot be effected by exercising reasonable diligence, the claimant must publish the notice once a week for two consecutive weeks in a newspaper of general circulation in the county in which the judgment debtor was last known to reside.
C. If the judgment debtor fails to file a written response to the application with the department within thirty-five calendar days after service under subsection B of this section or after the first publication of the notice, the judgment debtor is not entitled to notice of any action taken or proposed to be taken by the superintendent with respect to the claim.
Sec. 15. Section 6-991.15, Arizona Revised Statutes, is amended to read:
6-991.15. Final decision and order on claim; notice
A. The superintendent shall make a final written decision and order on a claim within ninety calendar days after receiving a completed application except in the following cases:
1. A proration hearing is pending under section 6-991.11.
2. An application is deficient or fails to comply substantially with the requirements of section 6-991.11 or rules adopted pursuant to this article as determined pursuant to section 6-991.13.
3. The claimant agrees in writing to extend the time for making a decision.
B. If the superintendent fails to render a written decision and order on a claim within ninety calendar days after receiving a completed application, or within an extended period of time provided under subsection A of this section, the claim is considered to be approved on the day following the final day for rendering the decision.
C. The superintendent may approve or deny an application or may enter into a compromise with the claimant to pay less in settlement than the full amount of the claim. If the claimant refuses to accept a settlement offered by the superintendent, the superintendent shall deny the claim.
D. The superintendent shall give notice of a decision and order with respect to the claim to the claimant and to any judgment debtor who has filed a timely response to the claim pursuant to section 6-991.12 as follows:
1. If the superintendent denies the application, the notice shall include the following:
The claimant's application has been denied. If the claimant wishes to pursue the application in court, the claimant must file the application in the court in which the underlying judgment was entered within six months after receiving this notice, pursuant to section 6-991.16, Arizona Revised Statutes.
2. If the superintendent's decision is to make a payment to the claimant out of the mortgage recovery fund, the following notice shall be given to the judgment debtor with a copy of the decision and order of the superintendent:
The decision of the superintendent of the financial institutions division of the department of insurance and financial institutions on the claim of (name of claimant) is to pay $__________ from the mortgage recovery fund. A copy of that decision and order is enclosed. If you desire a judicial review of the superintendent's decision and order or the termination of your licenses and license rights, you may petition the superior court, in the county in which the judgment that is the basis of this claim was rendered, for a judicial review. To be timely, you must file the petition with the court within thirty calendar days after receiving this notice.
Sec. 16. Section 6-991.16, Arizona Revised Statutes, is amended to read:
6-991.16. Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response
A. A claimant whose application is denied pursuant to section 6‑991.15 may file within six months after receiving notice of a denial of the claim a verified application in the court in which judgment was entered in the claimant's favor for an order directing payment out of the mortgage recovery fund based on the grounds set forth in the claimant's application to the superintendent.
B. The claimant must serve a copy of the verified application on the superintendent and on the judgment debtor and file a certificate or affidavit of service with the court. Service on the superintendent shall be made by certified mail addressed to the superintendent. Service on a judgment debtor shall be made pursuant to section 6-991.12 and shall include the following notice:
NOTICE
An application has been filed with the court for a payment from the mortgage recovery fund that was previously denied by the superintendent of the financial institutions division of the department of insurance and financial institutions. If you wish to defend in court against this claim, you must file a written response with the court within thirty calendar days after you are served with a copy of the application. If you fail to file a written response, you waive your right to defend against the claim.
C. The superintendent and the judgment debtor each must file a written response within thirty calendar days after being served with the application under subsection B of this section. The court shall set the matter for hearing on the petition of the claimant. The court shall grant a request of the superintendent for a continuance of as much as thirty calendar days and, on a showing of good cause by any party, may continue the hearing for a time that the court considers to be appropriate.
D. At the hearing, the claimant must establish compliance with the requirements of section 6-991.11.
E. If the judgment debtor fails to file a written response to the application, the superintendent may compromise or settle the claim at any time during the court proceedings and, on joint petition of the applicant and the superintendent, the court shall issue an order directing payment out of the mortgage recovery fund.
Sec. 17. Section 6-991.21, Arizona Revised Statutes, is amended to read:
6-991.21. Financial services fund; use of fund
A. The financial services fund is established consisting of loan originator fees collected pursuant to this article. The superintendent shall administer the fund for the purpose of discharging the duties imposed by law on the department division.
B. Monies deposited in the financial services fund are subject to section 35‑143.01.
Sec. 18. Section 10-2251, Arizona Revised Statutes, is amended to read:
10-2251. Definitions
In this chapter, unless the context otherwise requires:
1. "Bank" means any banking corporation or national banking association.
2. "Corporation" means a business development corporation formed under the provisions of this chapter.
3. "Member" means any bank or federal or state savings and loan association authorized to do business within this state which shall undertake to lend money to the corporation upon its call and in accordance with the provisions of this chapter.
4. "Shareholder" means a registered owner of shares in a corporation formed under the provisions of this chapter.
5. "Shares" means units into which the shareholders' rights to participate in the control of a corporation, in its surplus or profits, or in the distribution of its assets, are divided.
6. "Superintendent of financial institutions" means the superintendent of the financial institutions division of the department of insurance and financial institutions.
Sec. 19. Section 11-483, Arizona Revised Statutes, is amended to read:
11-483. Records maintained by county recorder; confidentiality; definitions
A. Notwithstanding any other provision of this article, in any county an eligible person may request that the general public be prohibited from accessing the unique identifier and the recording date contained in indexes of recorded instruments maintained by the county recorder and may request the county recorder to prohibit access to that person's residential address and telephone number contained in instruments or writings recorded by the county recorder.
B. An eligible person may request this action by filing an affidavit that states all of the following on an application form developed by the administrative office of the courts in agreement with an association of counties, an organization of peace officers and the motor vehicle division of the department of transportation:
1. The person's full legal name and residential address.
2. The full legal description and parcel number of the person's property.
3. Unless the person is the spouse of a peace officer or the spouse or minor child of a deceased peace officer or the person is a former public official or former judge, the position the person currently holds and a description of the person's duties, except that an eligible person who is protected under an order of protection or injunction against harassment shall instead attach a copy of the order of protection or injunction against harassment or an eligible person who is a participant in the address confidentiality program shall instead attach a copy of the participant's current and valid address confidentiality program authorization card issued pursuant to section 41‑163 and a statement of certification provided by the secretary of state's office.
4. The reasons the person reasonably believes that the person's life or safety or that of another person is in danger and that restricting access pursuant to this section will serve to reduce the danger.
5. The document locator number and recording date of each instrument for which the person requests access restriction pursuant to this section.
6. A copy of pages from each instrument that includes the document locator number and the person's full legal name and residential address or full legal name and telephone number.
C. If an eligible person is also requesting pursuant to section 11‑484 that the general public be prohibited from accessing records maintained by the county assessor and county treasurer, the eligible person may combine the request pursuant to subsection B of this section with the request pursuant to section 11‑484 by filing one affidavit. The affidavit and subsequent action by the appropriate authorities shall meet all of the requirements of this section and section 11‑484.
D. The affidavit shall be filed with the presiding judge of the superior court in the county in which the affiant resides. To prevent multiple filings, an eligible person who is a peace officer, spouse of a peace officer, spouse or minor child of a deceased peace officer, public defender, prosecutor, code enforcement officer, corrections or detention officer, corrections support staff member or law enforcement support staff member shall deliver the affidavit to the peace officer's commanding officer, or to the head of the prosecuting, public defender, code enforcement, law enforcement, corrections or detention agency, as applicable, or that person's designee, who shall file the affidavits at one time. In the absence of an affidavit that contains a request for immediate action and that is supported by facts justifying an earlier presentation, the commanding officer, or the head of the prosecuting, public defender, code enforcement, law enforcement, corrections or detention agency, as applicable, or that person's designee, shall not file affidavits more often than quarterly.
E. On receipt of an affidavit or affidavits, the presiding judge of the superior court shall file with the clerk of the superior court a petition on behalf of all requesting affiants. Each affidavit presented shall be attached to the petition. In the absence of an affidavit that contains a request for immediate action and that is supported by facts justifying an earlier consideration, the presiding judge may accumulate affidavits and file a petition at the end of each quarter.
F. The presiding judge of the superior court shall review the petition and each attached affidavit to determine whether the action requested by each affiant should be granted. If the presiding judge of the superior court concludes that the action requested by the affiant will reduce a danger to the life or safety of the affiant or another person, the presiding judge of the superior court shall order that the county recorder prohibit access for five years to the affiant's residential address and telephone number contained in instruments or writings recorded by the county recorder and made available on the internet. If the presiding judge of the superior court concludes that the affiant or another person is in actual danger of physical harm from a person or persons with whom the affiant has had official dealings and that action pursuant to this section will reduce a danger to the life or safety of the affiant or another person, the presiding judge of the superior court shall order that the general public be prohibited for five years from accessing the unique identifier and the recording date contained in indexes of recorded instruments maintained by the county recorder and identified pursuant to subsection B of this section.
G. On motion to the court, if the presiding judge of the superior court concludes that an instrument or writing recorded by the county recorder has been redacted or sealed in error, that the original affiant no longer lives at the address listed in the original affidavit, that the cause for the original affidavit no longer exists or that temporary access to the instrument or writing is needed, the presiding judge may temporarily stay or permanently vacate all or part of the court order prohibiting public access to the recorded instrument or writing.
H. On entry of the court order, the clerk of the superior court shall file the court order and a copy of the affidavit required by subsection B of this section with the county recorder. No more than ten days after the date on which the county recorder receives the court order, the county recorder shall restrict access to the information as required by subsection F of this section.
I. If the court denies an affiant's request pursuant to this section, the affiant may request a court hearing. The hearing shall be conducted by the court in the county where the petition was filed.
J. The county recorder shall remove the restrictions on all records restricted pursuant to this section by January 5 in the year after the court order expires. The county recorder shall send by mail one notice to either the former public official, peace officer, spouse of a peace officer, spouse or minor child of a deceased peace officer, public defender, prosecutor, code enforcement officer, corrections or detention officer, corrections support staff member, law enforcement support staff member or employee of the department of child safety who has direct contact with families in the course of employment or the employing agency of a peace officer, public defender, prosecutor, code enforcement officer, corrections or detention officer, corrections support staff member or law enforcement support staff member who was granted an order pursuant to this section of the order's expiration date at least six months before the expiration date. If the notice is sent to the employing agency, the employing agency shall immediately notify the person who was granted the order of the upcoming expiration date. The county recorder may coordinate with the county assessor and county treasurer to prevent multiple notices from being sent to the same person.
K. To include subsequent recordings in the court order, the eligible person shall present to the county recorder at the time of recordation a certified copy of the court order or shall provide to the county recorder the recording number of the court order. The county recorder shall ensure that public access shall be is restricted pursuant to subsection A of this section.
L. This section shall not be interpreted to restrict access to public records for the purposes of perfecting a lien pursuant to title 12, chapter 9, article 2.
M. This section does not prohibit access to the records of the county recorder by parties to the instrument, a law enforcement officer performing the officer's official duties pursuant to subsection N of this section, a title insurer, a title insurance agent or an escrow agent licensed by the department of insurance or the department of financial institutions and financial institutions.
N. A law enforcement officer is deemed to be performing the officer's official duties if the officer provides a subpoena, court order or search warrant for the records.
O. For the purposes of this section:
1. "Code enforcement officer" means a person who is employed by a state or local government and whose duties include performing field inspections of buildings, structures or property to ensure compliance with and enforce national, state and local laws, ordinances and codes.
2. "Commissioner" means a commissioner of the superior court.
3. "Corrections support staff member" means an adult or juvenile corrections employee who has direct contact with inmates.
4. "Eligible person" means a former public official, peace officer, spouse of a peace officer, spouse or minor child of a deceased peace officer, justice, judge, commissioner, public defender, prosecutor, code enforcement officer, adult or juvenile corrections officer, corrections support staff member, probation officer, member of the board of executive clemency, law enforcement support staff member, employee of the department of child safety who has direct contact with families in the course of employment, national guard member who is acting in support of a law enforcement agency, person who is protected under an order of protection or injunction against harassment, person who is a participant in the address confidentiality program pursuant to title 41, chapter 1, article 3 or firefighter who is assigned to the Arizona counterterrorism counter terrorism information center in the department of public safety.
5. "Former public official" means a person who was duly elected or appointed to Congress, the legislature or a statewide office, who ceased serving in that capacity and who was the victim of a dangerous offense as defined in section 13‑105 while in office.
6. "Indexes" means only those indexes that are maintained by and located in the office of the county recorder, that are accessed electronically and that contain information beginning from and after January 1, 1987.
7. "Judge" means a judge or former judge of the United States district court, the United States court of appeals, the United States magistrate court, the United States bankruptcy court, the United States immigration court, the Arizona court of appeals, the superior court or a municipal court.
8. "Justice" means a justice of the United States or Arizona supreme court or a justice of the peace.
9. "Law enforcement support staff member" means a person who serves in the role of an investigator or prosecutorial assistant in an agency that investigates or prosecutes crimes, who is integral to the investigation or prosecution of crimes and whose name or identity will be revealed in the course of public proceedings.
10. "Peace officer":
(a) Means any person vested by law, or formerly vested by law, with a duty to maintain public order and make arrests.
(b) Includes a federal law enforcement officer or agent who resides in this state and who has the power to make arrests pursuant to federal law.
11. "Prosecutor" means a county attorney, a municipal prosecutor, the attorney general or a United States attorney and includes an assistant or deputy United States attorney, county attorney, municipal prosecutor or attorney general.
12. "Public defender" means a federal public defender, county public defender, county legal defender or county contract indigent defense counsel and includes an assistant or deputy federal public defender, county public defender or county legal defender.
Sec. 20. Section 11-505, Arizona Revised Statutes, is amended to read:
11-505. Disclosure of confidential information; violation; classification; definition
A. A person, including a former employee or agent of the treasurer, who has received confidential information while an employee or agent of the treasurer shall not disclose that information except as provided in subsection B of this section.
B. Confidential information relating to a taxpayer may be disclosed:
1. A taxpayer may be disclosed To the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. A principal corporate officer of a parent corporation may execute a written authorization for a controlled subsidiary.
2. A taxpayer may be disclosed To the taxpayer's title company duly licensed with the department of financial institutions insurance and financial institutions.
3. A taxpayer may be disclosed Pursuant to a lawful court order or a subpoena that is issued by a law enforcement entity agency pursuant to a criminal investigation.
4. A taxpayer may be disclosed To the auditor general pursuant to an official audit and a written request specifying the information to be disclosed.
C. A knowing disclosure of confidential information in violation of this section is a class 6 felony.
D. For the purposes of this section, "confidential information" includes the following information whether it concerns individual taxpayers or is aggregate information for specifically identified taxpayers:
1. Images of checks received in payment of any ad valorem property tax.
2. Signatures, bank account numbers and bank routing numbers contained on checks received in payment of any ad valorem property tax.
Sec. 21. Section 13-2301, Arizona Revised Statutes, is amended to read:
13-2301. Definitions
A. For the purposes of sections 13‑2302, 13‑2303 and 13‑2304:
1. "Collect an extension of credit" means to induce in any way any person to make repayment of that extension.
2. "Creditor" means any person making an extension of credit or any person claiming by, under or through any person making an extension of credit.
3. "Debtor" means any person to whom an extension of credit is made or any person who guarantees the repayment of an extension of credit, or in any manner undertakes to indemnify the creditor against loss resulting from the failure of any person to whom an extension is made to repay the extension.
4. "Extend credit" means to make or renew any loan or to enter into any agreement, tacit or express, whereby the repayment or satisfaction of any debt or claim, whether acknowledged or disputed, valid or invalid, and however arising, may or shall be deferred.
5. "Extortionate extension of credit" means any extension of credit with respect to which it is the understanding of the creditor and the debtor at the time when the extension is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person or the reputation or property of any person.
6. "Extortionate means" means the use, or an express or implicit threat of use, of violence or other criminal means to cause harm to the person or the reputation or property of any person.
7. "Repayment of any extension of credit" means the repayment, satisfaction or discharge in whole or in part of any debt or claim, acknowledged or disputed, valid or invalid, resulting from or in connection with that extension of credit.
B. For the purposes of section 13‑2305, 13‑2306 or 13‑2307:
1. "Dealer in property" means a person who buys and sells property as a business.
2. "Stolen property" means property of another as defined in section 13‑1801 that has been the subject of any unlawful taking.
3. "Traffic" means to sell, transfer, distribute, dispense or otherwise dispose of stolen property to another person, or to buy, receive, possess or obtain control of stolen property, with the intent to sell, transfer, distribute, dispense or otherwise dispose of the property to another person.
C. For the purposes of this chapter:
1. "Animal activity" means a commercial enterprise that uses animals for food, clothing or fiber production, agriculture or biotechnology.
2. "Animal facility" means a building or premises where a commercial activity in which the use of animals is essential takes place, including a zoo, rodeo, circus, amusement park, hunting preserve and horse and dog event.
3. "Animal or ecological terrorism" means any felony in violation of section 13‑2312, subsection B that involves at least three persons acting in concert, that involves the intentional or knowing infliction of property damage in an amount of more than ten thousand dollars $10,000 to the property that is used by a person for the operation of a lawfully conducted animal activity or to a commercial enterprise that is engaged in a lawfully operated animal facility or research facility and that involves either:
(a) The use of a deadly weapon or dangerous instrument.
(b) The intentional or knowing infliction of serious physical injury on a person engaged in a lawfully conducted animal activity or participating in a lawfully conducted animal facility or research facility.
4. "Biological agent" means any microorganism, virus, infectious substance or biological product that may be engineered through biotechnology or any naturally occurring or bioengineered component of any microorganism, virus, infectious substance or biological product and that is capable of causing any of the following:
(a) Death, disease or physical injury in a human, animal, plant or other living organism.
(b) The deterioration or contamination of air, food, water, equipment, supplies or material of any kind.
5. "Combination" means persons who collaborate in carrying on or furthering the activities or purposes of a criminal syndicate even though such persons may not know each other's identity, membership in the combination changes from time to time or one or more members may stand in a wholesaler‑retailer or other arm's length relationship with others as to activities or dealings between or among themselves in an illicit operation.
6. "Communication service provider" has the same meaning prescribed in section 13‑3001.
7. "Criminal syndicate" means any combination of persons or enterprises engaging, or having the purpose of engaging, on a continuing basis in conduct that violates any one or more provisions of any felony statute of this state.
8. "Explosive agent" means an explosive as defined in section 13‑3101 and flammable fuels or fire accelerants in amounts over fifty gallons but excludes:
(a) Fireworks as defined in section 36‑1601.
(b) Firearms.
(c) A propellant actuated device or propellant actuated industrial tool.
(d) A device that is commercially manufactured primarily for the purpose of illumination.
(e) A rocket having a propellant charge of less than four ounces.
9. "Material support or resources" includes money or other financial securities, financial services, lodging, sustenance, training, safehouses, false documentation or identification, communications equipment, facilities, weapons, lethal substances, explosives, personnel, transportation, disguises and other physical assets but does not include medical assistance, legal assistance or religious materials.
10. "Public establishment" means a structure, vehicle or craft that is owned, leased or operated by any of the following:
(a) This state or a political subdivision as defined in section 38‑502.
(b) A public agency as defined in section 38‑502.
(c) The federal government.
(d) A health care institution as defined in section 36‑401.
11. "Research facility" means a laboratory, institution, medical care facility, government facility, public or private educational institution or nature preserve at which a scientific test, experiment or investigation involving the use of animals is lawfully carried out, conducted or attempted.
12. "Terrorism" means any felony, including any completed or preparatory offense, that involves the use of a deadly weapon or a weapon of mass destruction or the intentional or knowing infliction of serious physical injury with the intent to do any of the following:
(a) Influence the policy or affect the conduct of this state or any of the political subdivisions, agencies or instrumentalities of this state.
(b) Cause substantial damage to or substantial interruption of public communications, communication service providers, public transportation, common carriers, public utilities, public establishments or other public services.
(c) Intimidate or coerce a civilian population and further the goals, desires, aims, public pronouncements, manifestos or political objectives of any terrorist organization.
13. "Terrorist organization" means any organization that is designated by the United States department of state as a foreign terrorist organization under section 219 of the immigration and nationality act (8 United States Code section 1189).
14. "Toxin" means the toxic material of plants, animals, microorganisms, viruses, fungi or infectious substances or a recombinant molecule, whatever its origin or method of reproduction, including:
(a) Any poisonous substance or biological product that may be engineered through biotechnology and that is produced by a living organism.
(b) Any poisonous isomer or biological product, homolog or derivative of such a substance.
15. "Vector" means a living organism or molecule, including a recombinant molecule or biological product that may be engineered through biotechnology, that is capable of carrying a biological agent or toxin to a host.
16. "Weapon of mass destruction" means:
(a) Any device or object that is designed or that the person intends to use to cause multiple deaths or serious physical injuries through the use of an explosive agent or the release, dissemination or impact of a toxin, biological agent or poisonous chemical, or its precursor, or any vector.
(b) Except as authorized and used in accordance with a license, registration or exemption by the department of health services pursuant to section 30‑672, any device or object that is designed or that the person intends to use to release radiation or radioactivity at a level that is dangerous to human life.
D. For the purposes of sections 13‑2312, 13‑2313, 13‑2314 and 13‑2315, unless the context otherwise requires:
1. "Control", in relation to an enterprise, means the possession of sufficient means to permit substantial direction over the affairs of an enterprise and, in relation to property, means to acquire or possess.
2. "Enterprise" means any corporation, partnership, association, labor union or other legal entity or any group of persons associated in fact although not a legal entity.
3. "Financial institution" means any business under the jurisdiction of the department of financial institutions or a banking or securities regulatory agency of the United States, a business coming within the definition of a bank, financial agency or financial institution as prescribed by 31 United States Code section 5312 or 31 Code of Federal Regulations section 1010.100 or a business under the jurisdiction of the securities division of the corporation commission, the state real estate department or the department of insurance and financial institutions.
4. "Racketeering" means any act, including any preparatory or completed offense, that is chargeable or indictable under the laws of the state or country in which the act occurred and, if the act occurred in a state or country other than this state, that would be chargeable or indictable under the laws of this state if the act had occurred in this state, and that would be punishable by imprisonment for more than one year under the laws of this state and, if the act occurred in a state or country other than this state, under the laws of the state or country in which the act occurred, regardless of whether the act is charged or indicted, and the act involves either:
(a) Terrorism, animal terrorism or ecological terrorism that results or is intended to result in a risk of serious physical injury or death.
(b) Any of the following acts if committed for financial gain:
(i) Homicide.
(ii) Robbery.
(iii) Kidnapping.
(iv) Forgery.
(v) Theft.
(vi) Bribery.
(vii) Gambling.
(viii) Usury.
(ix) Extortion.
(x) Extortionate extensions of credit.
(xi) Prohibited drugs, marijuana or other prohibited chemicals or substances.
(xii) Trafficking in explosives, weapons or stolen property.
(xiii) Participating in a criminal syndicate.
(xiv) Obstructing or hindering criminal investigations or prosecutions.
(xv) Asserting false claims, including false claims asserted through fraud or arson.
(xvi) Intentional or reckless false statements or publications concerning land for sale or lease or sale of subdivided lands or sale and mortgaging of unsubdivided lands.
(xvii) Resale of realty with intent to defraud.
(xviii) Intentional or reckless fraud in the purchase or sale of securities.
(xix) Intentional or reckless sale of unregistered securities or real property securities.
(xx) A scheme or artifice to defraud.
(xxi) Obscenity.
(xxii) Sexual exploitation of a minor.
(xxiii) Prostitution.
(xxiv) Restraint of trade or commerce in violation of section 34‑252.
(xxv) Terrorism.
(xxvi) Money laundering.
(xxvii) Obscene or indecent telephone communications to minors for commercial purposes.
(xxviii) Counterfeiting marks as proscribed in section 44‑1453.
(xxix) Animal terrorism or ecological terrorism.
(xxx) Smuggling of human beings.
(xxxi) Child sex trafficking.
(xxxii) Sex trafficking.
(xxxiii) Trafficking of persons for forced labor or services.
(xxxiv) Manufacturing, selling or distributing misbranded drugs in violation of section 13‑3406, subsection A, paragraph 9.
5. "Records" means any book, paper, writing, computer program, data, image or information that is collected, recorded, preserved or maintained in any form of storage medium.
6. "Remedy racketeering" means to enter a civil judgment pursuant to this chapter or chapter 39 of this title against property or a person who is subject to liability, including liability for injury to the state that is caused by racketeering or by actions in concert with racketeering.
E. For the purposes of sections 13‑2316, 13‑2316.01 and 13‑2316.02:
1. "Access" means to instruct, communicate with, store data in, retrieve data from or otherwise make use of any resources of a computer, computer system or network.
2. "Access device" means any card, token, code, account number, electronic serial number, mobile or personal identification number, password, encryption key, biometric identifier or other means of account access, including a canceled or revoked access device, that can be used alone or in conjunction with another access device to obtain money, goods, services, computer or network access or any other thing of value or that can be used to initiate a transfer of any thing of value.
3. "Computer" means an electronic device that performs logic, arithmetic or memory functions by the manipulations of electronic or magnetic impulses and includes all input, output, processing, storage, software or communication facilities that are connected or related to such a device in a system or network.
4. "Computer contaminant" means any set of computer instructions that is designed to modify, damage, destroy, record or transmit information within a computer, computer system or network without the intent or permission of the owner of the information, computer system or network. Computer contaminant includes a group of computer instructions, such as viruses or worms, that is self‑replicating or self‑propagating and that is designed to contaminate other computer programs or computer data, to consume computer resources, to modify, destroy, record or transmit data or in some other fashion to usurp the normal operation of the computer, computer system or network.
5. "Computer program" means a series of instructions or statements, in a form acceptable to a computer, that permits the functioning of a computer system in a manner designed to provide appropriate products from the computer system.
6. "Computer software" means a set of computer programs, procedures and associated documentation concerned with the operation of a computer system.
7. "Computer system" means a set of related, connected or unconnected computer equipment, devices and software, including storage, media and peripheral devices.
8. "Critical infrastructure resource" means any computer or communications system or network that is involved in providing services necessary to ensure or protect the public health, safety or welfare, including services that are provided by any of the following:
(a) Medical personnel and institutions.
(b) Emergency services agencies.
(c) Public and private utilities, including water, power, communications and transportation services.
(d) Fire departments, districts or volunteer organizations.
(e) Law enforcement agencies.
(f) Financial institutions.
(g) Public educational institutions.
(h) Government agencies.
9. "False or fraudulent pretense" means the unauthorized use of an access device or the use of an access device to exceed authorized access.
10. "Financial instrument" means any check, draft, money order, certificate of deposit, letter of credit, bill of exchange, credit card or marketable security or any other written instrument as defined in section 13‑2001 that is transferable for value.
11. "Network" includes a complex of interconnected computer or communication systems of any type.
12. "Property" means financial instruments, information, including electronically produced data, computer software and programs in either machine or human readable form, and anything of value, tangible or intangible.
13. "Proprietary or confidential computer security information" means information about a particular computer, computer system or network that relates to its access devices, security practices, methods and systems, architecture, communications facilities, encryption methods and system vulnerabilities and that is not made available to the public by its owner or operator.
14. "Services" includes computer time, data processing, storage functions and all types of communication functions.
Sec. 22. Section 14-3603, Arizona Revised Statutes, is amended to read:
14-3603. Bond required; exceptions
A. A bond is required of a personal representative unless either:
1. The will expressly waives the bond.
2. All of the heirs if no will has been probated, or all of the devisees under a will which does not provide for waiver of the bond, file with the court a written waiver of the bond requirement. A duly appointed guardian or conservator may waive on behalf of his the ward or protected person unless the guardian or conservator is the personal representative.
3. The personal representative is a national banking association, a holder of a banking permit under the laws of this state, a savings and loan association authorized to conduct trust business in this state, a title insurance company which that is qualified to do business under the laws of this state, a trust company holding a certificate to engage in trust business from the superintendent of the financial institutions division of the department of insurance and financial institutions or the public fiduciary.
4. The petition for formal or informal appointment alleges that the probable value of the entire estate will permit summary procedures under section 14‑3973 and the surviving spouse, or the nominee of the surviving spouse, is applying for appointment as personal representative.
B. In any case where a bond is not required under subsection A of this section, the court may, upon petition of any interested person and upon on reasonable proof that the interest of the petitioning person is in danger of being lost because of the administration of the estate, require a bond in such amount as the court may direct to protect the interest of the petitioner or of the petitioner and others. An heir or devisee who initially waived bond may be a petitioner under this subsection.
C. If a bond is not initially required because the petition for appointment alleges that the probable value of the entire estate will permit summary procedures under section 14‑3973, and it later appears from the inventory and appraisal that the value of the estate will not permit use of such procedures, then the personal representative must promptly file a bond unless one is not required for some other reason under subsection A of this section.
Sec. 23. Section 14-5411, Arizona Revised Statutes, is amended to read:
14-5411. Bond; exception
A. Except as otherwise provided in subsection B of this section, the court shall require a conservator to furnish a bond conditioned upon on faithful discharge of all duties according to law, with sureties as it shall specify. Unless otherwise directed, the bond shall be in the amount of the aggregate capital value of the property of the estate in the conservator's control plus one year's estimated income minus the value of securities deposited under arrangements requiring an order of the court for their removal and the value of any land which that the fiduciary, by express limitation of power, lacks power to sell or convey without court authorization. For good cause shown the court may reduce or eliminate the bond to the extent of regular fixed expenses paid for the benefit of the protected person. The court in lieu of sureties on a bond may accept other security for the performance of the bond, including a pledge of securities or a mortgage of land.
B. A bond is not required of a conservator which that is a national banking association, a holder of a banking permit under the laws of this state, a savings and loan association authorized to conduct trust business in this state, a title insurance company qualified to do business under the laws of this state, a trust company holding a certificate to engage in trust business from the superintendent of the financial institutions division of the department of insurance and financial institutions or the public fiduciary.
Sec. 24. Section 20-102, Arizona Revised Statutes, is amended to read:
20-102. "Director" defined
When used with reference to the administration of this title, title 6, title 32, chapters 9 and 36, title 41, chapter 31 and title 44, chapter 2.1, "director" or "administrator" means the director of insurance and financial institutions of the state. When used with reference to a member of the governing body of an insurer, "director" includes "trustee."
Sec. 25. Title 20, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 20-124, to read:
20-124. Adoption of rules
the director may adopt rules for the administration of title 6, title 32, chapters 9 and 36, title 41, chapter 31 and title 44, chapter 2.1.
Sec. 26. Repeal
Section 20-1593, Arizona Revised Statutes, is repealed.
Sec. 27. Section 23-1361, Arizona Revised Statutes, is amended to read:
23-1361. Blacklist; definition; exceptions; privileged communications; immunity
A. "Blacklist" means any understanding or agreement whereby the names of any person or persons, list of names, descriptions or other means of identification shall be spoken, written, printed or implied for the purpose of being communicated or transmitted between two or more employers of labor, or their bosses, foremen, superintendents, managers, officers or other agents, whereby the laborer is prevented or prohibited from engaging in a useful occupation. Any understanding or agreement between employers, or their bosses, foremen, superintendents, managers, officers or other agents, whether written or verbal, comes within the meaning of this section and it makes no difference whether the employers, or their bosses, foremen, superintendents, managers, officers or other agents, act individually or for some company, corporation, syndicate, partnership or society and it makes no difference whether they are employed or acting as agents for the same or different companies, corporations, syndicates, partnerships or societies.
B. It is not unlawful for a former employer to provide to a requesting employer, or agents acting in the employer's behalf, information concerning a person's education, training, experience, qualifications and job performance to be used for the purpose of evaluating the person for employment. It is not unlawful for a school district to provide information received as a result of a fingerprint check required by section 15‑512 to any other school district if requested to do so by the person who was the subject of the fingerprint check or communicate to any school district if requested to do so by the person who applied for a fingerprint clearance card whether the person has been issued or denied a fingerprint clearance card. A copy of any written communication regarding employment must be sent by the employer providing the information to the former employee's last known address.
C. An employer who in good faith provides information requested by a prospective employer about the reason for termination of a former employee or about the job performance, professional conduct or evaluation of a current or former employee is immune from civil liability for the disclosure or the consequences of providing the information. There is a presumption of good faith if either:
1. The employer employs less than one hundred employees and provides only the information authorized by this subsection.
2. The employer employs at least one hundred employees and has a regular practice in this state of providing information requested by a prospective employer about the reason for termination of a former employee or about the job performance, professional conduct or evaluation of a current or former employee.
D. The presumption of good faith under subsection C of this section is rebuttable by showing that the employer disclosed the information with actual malice or with intent to mislead. This subsection and subsection C of this section do not alter any privileges that exist under common law. For the purposes of this subsection, "actual malice" means knowledge that the information was false or was provided with reckless disregard of its truth or falsity.
E. Communications concerning employees or prospective employees that are made by an employer or prospective employer, or by a labor organization, to a government body or agency and that are required by law or that are furnished pursuant to written rules or policies of the government body or agency are privileged.
F. An employer, including this state and its agencies, a labor organization or an individual is not civilly liable for privileged communications made pursuant to subsection E of this section.
G. In response to a request by another bank, savings and loan association, credit union, escrow agent, commercial mortgage banker, mortgage banker or mortgage broker it is not unlawful for a bank, a savings and loan association, a credit union, an escrow agent, a commercial mortgage banker, a mortgage banker or a mortgage broker to provide a written employment reference that advises of the applicant's involvement in any theft, embezzlement, misappropriation or other defalcation that has been reported to federal authorities pursuant to federal banking guidelines or reported to the department of financial institutions insurance and financial institutions. In order for the immunity provided in subsection H of this section to apply, a copy of the written employment reference must be sent by the institution providing the reference to the last known address of the applicant in question.
H. No A bank, savings and loan association, credit union, escrow agent, commercial mortgage banker, mortgage banker or mortgage broker shall be is not civilly liable for providing an employment reference unless the information provided is false and the bank, savings and loan association, credit union, escrow agent, commercial mortgage banker, mortgage banker or mortgage broker providing the false information does so with knowledge and malice.
I. A court shall award court costs, attorney fees and other related expenses to any party that prevails in any civil proceeding in which a violation of this section is alleged.
Sec. 28. Section 25-519, Arizona Revised Statutes, is amended to read:
25-519. Regulatory entities; suspension of license
The following are subject to the requirements of section 25‑518:
1. All boards established under title 32.
2. The superintendent of the financial institutions division of the department of insurance and financial institutions.
3. The registrar of contractors.
4. The department of public safety.
5. Boards and agencies that provide occupational, recreational and professional licenses or certificates pursuant to titles 3, 4, 5, 6, 8, 15, 17, 20, 36 and 41 and title 28, chapter 8.
Sec. 29. Section 28-455, Arizona Revised Statutes, is amended to read:
28-455. Release of personal information; fees
A. In accordance with section 28‑458 and the driver's privacy protection act of 1994 (18 United States Code sections 2721 through 2725) and notwithstanding section 28‑447, the department shall not knowingly disclose or otherwise make available to any person:
1. Personal information obtained by the department in connection with a motor vehicle record except as otherwise provided in this section.
2. Highly restricted personal information obtained by the department in connection with a motor vehicle record without the express consent of the person to whom the information applies except for uses allowed in subsection C, paragraphs 1, 4, 6 and 9 of this section. This paragraph does not affect the use of organ donation information on an individual's driver license or affect the administration of organ donation in this state.
B. The department shall disclose personal information for use in connection with the following matters:
1. Motor vehicle or driver safety and theft.
2. Motor vehicle emissions.
3. Motor vehicle product alterations, recalls or advisories.
4. Performance monitoring of motor vehicles and dealers by motor vehicle manufacturers.
5. Removal of nonowner records from the original owner records of motor vehicle manufacturers to carry out the purposes of titles I and IV of the anti car theft act of 1992 (18 United States Code sections 2311 through 2322), the automobile information disclosure act (15 United States Code sections 1231, 1232 and 1233), the clean air act of 1963 (42 United States Code sections 7401 through 7671q) and 49 United States Code chapters 301, 305 and 321 through 331.
C. Subject to subsection A of this section, the department may disclose personal information as follows:
1. For use by any government agency, including any court or law enforcement agency, in carrying out its functions or any private person or entity acting on behalf of a government agency in carrying out its functions.
2. For use in connection with matters of:
(a) Performance monitoring of motor vehicles, motor vehicle parts and dealers.
(b) Motor vehicle market research activities, including survey research.
(c) Removal of nonowner records from the original owner records of motor vehicle manufacturers.
3. For use in the normal course of business by a legitimate business or its agents, employees or contractors, but only:
(a) To verify the accuracy of personal information submitted by the individual to the business or its agents, employees or contractors.
(b) If the information submitted is not correct or is no longer correct, to obtain the correct information for the purpose of preventing fraud by, pursuing legal remedies against or recovering on a debt or security interest against the individual.
4. For use by an attorney licensed to practice law or by a licensed private investigator in connection with any civil, criminal, administrative or arbitration proceeding in any court or government agency or before any self‑regulatory body, including the service of process, investigation in anticipation of litigation and the execution or enforcement of judgments and orders, or pursuant to a court order.
5. For use in research activities and for use in producing statistical reports if the personal information is not published, redisclosed or used to contact individuals.
6. For use by any insurer that writes automobile liability or motor vehicle liability policies and that is under the jurisdiction of the department of insurance and financial institutions or insurance support organization or by a self‑insured entity or its agents, employees or contractors in connection with claims investigation activities, antifraud activities, rating or underwriting.
7. For use in providing notice to the owners of towed or impounded vehicles.
8. For use by any licensed private investigative agency or licensed security service for any purpose allowed under this section.
9. For use by an employer or its agent or insurer to obtain or verify information relating to a holder of a commercial driver license that is required under 49 United States Code sections 31301 through 31317.
10. For use by a toll operator as defined in section 28‑7751 in connection with the operation of a toll facility or the enforcement of tolls, administrative charges and penalties as defined in section 28‑7751.
11. For any other use in response to requests for individual motor vehicle records if the state has obtained the express consent of the person to whom the personal information pertains.
12. For bulk distribution for surveys, marketing or solicitations if the department has obtained the express consent of the person to whom the personal information pertains.
13. For use by any requester if the requester demonstrates it has obtained the written consent of the individual to whom the information pertains.
14. For any other use that is specifically authorized by law and that is related to the operation of a motor vehicle or public safety, including the following:
(a) Use by a financial institution or enterprise under the jurisdiction of the department of financial institutions insurance and financial institutions or a federal monetary authority.
(b) Use by a motor vehicle dealer who is licensed and bonded by the department or a state organization of licensed and bonded motor vehicle dealers.
(c) Use by a person who is involved in an accident or the owner of a vehicle involved in an accident if the person who requests the information submits proof to the department of involvement in the accident.
(d) Use by a person applying for a bonded title if all of the following conditions exist:
(i) The requester verifies to the satisfaction of the director that the vehicle on which the requester is requesting the record is in the requester's possession.
(ii) The record is requested in order for the requester to notify the registered owner of the requester's intent to apply to the department for a bonded title.
(iii) The requester provides a verification of a vehicle inspection that was performed by an authorized department employee or agent.
(e) Use by an operator of a self-service storage facility who alleges both of the following:
(i) That the vehicle on which the operator is requesting the record is in the operator's possession.
(ii) That the record is requested to allow the operator to notify the registered owner and any lienholders of record of the operator's intent to foreclose its lien and to sell the vehicle.
(f) For any other use as determined by the director and established by rule.
D. The department may establish and carry out procedures under which the department, on receiving a request for personal information that does not fall within one of the exceptions prescribed in subsection B or C of this section, may mail a copy of the request to the individual about whom the information was requested. The mailing shall inform the individual of the request and contain a statement that the information will not be released unless the individual waives the individual's right to privacy under this section.
E. In addition to the permissible uses prescribed in subsection C of this section, the department may disclose its motor vehicle records information, including personal information, as a bulk record only under any of the following conditions:
1. If the director determines either of the following:
(a) The sale or release of the record is necessary for the public health or safety.
(b) The use is for general research or general statistical purposes that do not provide specific factors from a record.
2. For surveys, marketing or solicitations if the department has obtained the express consent of the person to whom the personal information pertains.
3. For the release of motor vehicle title and motor vehicle registration information, vehicle identification numbers, title brands, odometer readings and brands and title lien information to a requester if the requester is in the business of preparing vehicle history reports and the information is used to develop a vehicle history report.
F. The director shall provide in a clear and conspicuous manner on forms for the issuance or renewal of driver licenses, nonoperating identification licenses and title and registration the opportunity for express consent so that each person who is the subject of a record of the department may opt in, for any purpose as prescribed by the director. Express consent shall be conveyed in a form prescribed by the director and shall include at least the following:
1. Clear and conspicuous notice informing the person who is giving express consent that by giving express consent the person is allowing the department to disclose information contained in the person's motor vehicle record to any person requesting information for any purpose.
2. A written signature or an electronic signature.
3. An explanation of the difference between a one-time authorization and general consent or opt in.
G. Subject to the requirements of subsection F of this section, express consent may be conveyed as either of the following:
1. A one-time authorization submitted by a requester on a consent to release form or by other written format as prescribed by the director.
2. General consent or opt in on certain department forms.
H. Driver histories shall not be disclosed under subsection E of this section.
I. Except as provided in subsection J of this section and section 28‑446, subsection B, records provided pursuant to subsections B and C of this section are subject to the fees prescribed in section 28-446, subsections A and C.
J. For records searched and provided for the purposes described in subsection E of this section, the director:
1. Shall charge a search fee that is a minimum of six hundred dollars $600 per million records searched.
2. Shall charge a records fee that is a minimum of thirty dollars $30 per thousand records provided.
3. May prorate the charge for fractional quantities that are searched or provided.
4. May charge only the search fee if the request is in accordance with subsection E, paragraph 2 of this section.
K. Records requests that require a database search for specific criteria within a record are subject to a search fee. In addition to this search fee, each motor vehicle record provided to a records requester as a result of a criteria search incurs record fees in accordance with subsection I of this section.
Sec. 30. Section 28-4301, Arizona Revised Statutes, as amended by Laws 2014, chapter 81, section 1, is amended to read:
28-4301. Definitions
In this chapter, unless the context otherwise requires:
1. "Area of responsibility" means the area surrounding an individual dealer that the factory designates as that dealer's individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence of the factory designated area, the area of responsibility is that geographical area surrounding a dealer that lies closer to that dealer than to other dealers of the same line‑make.
2. "Automotive recycler" means a person who is engaged in the business of buying or acquiring a motor vehicle solely for the purpose of dismantling, selling or otherwise disposing of the parts or accessories and who dismantles six or more vehicles in a calendar year.
3. "Branch license" means a license that is issued by the director to a licensed motor vehicle dealer and that permits the licensee to sell motor vehicles from an established place of business within the same county but other than the original or principal place of business for which the license was issued.
4. "Broker" means a person who for any fee, commission or other valuable consideration offers to provide, provides or represents that the person will provide a service of arranging or assisting in effecting the purchase of a motor vehicle and who is not:
(a) A new motor vehicle dealer or an employee or agent of a new motor vehicle dealer.
(b) A used motor vehicle dealer or an employee or agent of a used motor vehicle dealer.
(c) A manufacturer or employee or agent of a manufacturer.
(d) An auctioneer or engaged in the auto auction business.
(e) A wholesale motor vehicle dealer.
5. "Community" means the relevant market area. For the purposes of this paragraph, "relevant market area" means the incorporated city or town in which the franchise is located.
6. "Distributor" means a person who either:
(a) Sells or distributes new motor vehicles to new motor vehicle dealers in this state.
(b) Maintains distributor representatives in this state.
7. "Distributor branch" means a branch office maintained or availed of by a distributor for either:
(a) The sale of new motor vehicles to new motor vehicle dealers in this state.
(b) Directing or supervising its representatives in this state.
8. "Established place of business":
(a) Means a permanent enclosed building or structure that is owned either in fee or leased with sufficient space to display two or more motor vehicles of a kind and type that the dealer is licensed to sell and that is devoted principally to the use of a motor vehicle dealer in the conduct of the business of the dealer.
(b) In the case of a used motor vehicle dealer, trailer dealer or semitrailer dealer:
(i) Need not be a permanent building or structure or part of a permanent building or structure.
(ii) May be a vacant lot or part of a vacant lot.
(iii) Does not mean or include a residence, tent, temporary stand or temporary quarters or permanent quarters occupied pursuant to a temporary arrangement.
(c) In the case of an automotive recycler, means a permanent site or location at which the business of an automotive recycler is or will be conducted.
9. "Exhibitor" means a manufacturer of new motor homes that exhibits new motor homes at a special event.
10. "Factory branch" means a branch office maintained or availed of by a manufacturer for either:
(a) The sale of new motor vehicles to distributors or the sale of new motor vehicles to new motor vehicle dealers in this state.
(b) Directing or supervising its representatives in this state.
11. "Financial institution" means a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or holding company that is licensed, regulated or insured by the department of financial institutions insurance and financial institutions, the federal deposit insurance corporation, the office of thrift supervision, the comptroller of the currency, the national credit union share insurance fund or the national credit union administration.
12. "Franchise" means a contract between two or more persons if all of the following conditions are included:
(a) A commercial relationship of definite duration or continuing indefinite duration is involved.
(b) The franchisee is granted the right to offer, sell and service in this state new motor vehicles manufactured or distributed by the franchisor.
(c) The franchisee, as a separate business, constitutes a component of the franchisor's distribution system.
(d) The operation of the franchisee's business is substantially associated with the franchisor's trademark, service mark, trade name, advertising or other commercial symbol designating the franchisor.
(e) The operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts and accessories.
13. "Franchisee" means a person who both:
(a) Receives new motor vehicles from the franchisor under a franchise.
(b) Offers and sells to and services new motor vehicles for the general public.
14. "Franchisor" means a person who both:
(a) Manufactures or distributes new motor vehicles.
(b) May enter into a franchise.
15. "Importer" means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state.
16. "Lead" means any retail consumer who satisfies all of the following:
(a) Responds to a factory‑directed program that obtains consumer contact information and that provides such information to one or more dealers.
(b) Expresses an interest to the factory in purchasing, leasing or acquiring any vehicle or product, service or financing available from the dealers of that factory.
(c) Does not qualify for any reasonable factory sponsored employee, retiree or vendor new vehicle purchase program or any other reasonable similar factory new vehicle purchase program.
17. "Line‑make" means those motor vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer of those same motor vehicles.
18. "Major component part" includes a motor vehicle or vehicle part that the manufacturer has assigned any factory, motor, serial or other identification number or mark.
19. "Manufacturer" means any person who either:
(a) Manufactures or assembles new motor vehicles.
(b) Manufactures or installs on previously assembled truck chassis special bodies or equipment that when installed forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, excluding the installation of a camper on a pickup truck.
20. "Motor home" means a motor vehicle that is primarily designed as temporary living quarters and that:
(a) Is built onto as an integral part of, or is permanently attached to, a motor vehicle chassis.
(b) Contains at least four of the following independent life support systems if each is permanently installed and designed to be removed only for purposes of repair or replacement:
(i) A cooking facility with an onboard fuel source.
(ii) A gas or electric refrigerator.
(iii) A toilet with exterior evacuation.
(iv) A heating or air conditioning system with an onboard power or fuel source separate from the vehicle engine.
(v) A potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection.
(vi) A 110‑125 volt electric power supply.
21. "Motor vehicle" means an automobile, motor bus, motorcycle, truck or truck tractor or any other self‑propelled vehicle, trailer or semitrailer.
22. "Motor vehicle dealer" means a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle.
23. "New house trailer dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new house trailers or used house trailers taken in trade on new house trailers. For the purposes of this paragraph, "house trailer" means a vehicle, other than a motor vehicle, that is built on a chassis designed for being drawn on the highways by a motor vehicle and that is designed for human habitation.
24. "New motor vehicle" means a motor vehicle, other than a used motor vehicle, that is held either for:
(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle.
(b) Sale by another franchisee of the same line‑make.
25. "New motor vehicle dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new motor vehicles or used motor vehicles taken in trade on new motor vehicles or used vehicles purchased for resale.
26. "Off‑premises display and sales" means a promotion or sale of motor vehicles for a period of time as specified by the director that both:
(a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle dealer's agents or the manufacturer.
(b) Takes place at a location within the same county but not at the licensee's established place of business.
27. "Off‑premises exhibition" means the exhibition of a motor vehicle for a period of time as specified by the director at a location within the same county but not at the established place of business of a licensed motor vehicle dealer and at which a solicitation or sale does not occur.
28. "Provisional automotive recycler's license" means a license that both:
(a) Is issued by the department only in conjunction with an application for an automotive recycler's license.
(b) Permits the applicant or applicants to conduct the business of an automotive recycler regulated by this chapter pending completion of the criminal records check pursuant to section 28‑4361.
29. "Provisional dealer's license" means a license that both:
(a) Is issued by the department only in conjunction with an application for a dealer's license.
(b) Permits the applicant or applicants to conduct the business of a motor vehicle dealer regulated by this chapter pending completion of the criminal records check pursuant to section 28‑4361.
30. "Public consignment auction dealer" means a person who at the public consignment auction dealer's established place of business or at an authorized off‑premises location pursuant to the requirements of section 28‑4401 is in the business of both of the following:
(a) Conducting live auctions with a licensed auctioneer verbally calling for and accepting bids.
(b) Providing live auction services to the public on a consignment contract basis.
31. "Retail consumer" means any person purchasing, leasing or acquiring or possibly purchasing, leasing or acquiring a vehicle or product, service or financing not for resale.
32. "Service" means any service that is sold, leased or provided to retail consumers and that directly relates to the ownership or leasing of a new or used motor vehicle, including extended service contracts or motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor.
33. "Special event" means an exhibition of new motor homes by a motor vehicle dealer licensed to sell new motor homes or an exhibitor for a period of time specified by the director at a location in this state other than the licensee's or exhibitor's established place of business.
34. "Used motor vehicle" means a motor vehicle that has been sold, bargained, exchanged or given away or the title to the motor vehicle has been transferred from the person who first acquired the vehicle from the manufacturer, or importer, dealer or agent of the manufacturer or importer, and that has been placed in bona fide consumer use. For the purposes of this paragraph, "bona fide consumer use" means actual operation by an owner who acquired a new motor vehicle both:
(a) For use in the owner's business or for pleasure or otherwise.
(b) For which a certificate of title has been issued or that has been registered as provided by law.
35. "Used motor vehicle dealer" means a person, other than a new motor vehicle dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, seven or more used motor vehicles in a continuous twelve month period. Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or a public consignment auction dealer.
36. "Wholesale motor vehicle auction dealer" means a person who both:
(a) Is in the business of providing auction services solely in wholesale transactions to motor vehicle dealers licensed by this state or any other jurisdiction.
(b) Does not buy, sell or own the motor vehicles the auction dealer auctions in the ordinary course of business.
37. "Wholesale motor vehicle dealer" means a person who sells used motor vehicles only to licensed motor vehicle dealers.
Sec. 31. Section 28-4301, Arizona Revised Statutes, as amended by Laws 2018, chapter 298, section 6, is amended to read:
28-4301. Definitions
In this chapter, unless the context otherwise requires:
1. "Area of responsibility" means the area surrounding an individual dealer that the factory designates as that dealer's individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence of the factory designated area, the area of responsibility is that geographical area surrounding a dealer that lies closer to that dealer than to other dealers of the same line‑make.
2. "Branch license" means a license that is issued by the director to a licensed motor vehicle dealer and that permits the licensee to sell motor vehicles from an established place of business within the same county but other than the original or principal place of business for which the license was issued.
3. "Broker" means a person who for any fee, commission or other valuable consideration offers to provide, provides or represents that the person will provide a service of arranging or assisting in effecting the purchase of a motor vehicle and who is not:
(a) A new motor vehicle dealer or an employee or agent of a new motor vehicle dealer.
(b) A used motor vehicle dealer or an employee or agent of a used motor vehicle dealer.
(c) A manufacturer or employee or agent of a manufacturer.
(d) An auctioneer or engaged in the auto auction business.
(e) A wholesale motor vehicle dealer.
4. "Community" means the relevant market area. For the purposes of this paragraph, "relevant market area" means the incorporated city or town in which the franchise is located.
5. "Distributor" means a person who either:
(a) Sells or distributes new motor vehicles to new motor vehicle dealers in this state.
(b) Maintains distributor representatives in this state.
6. "Distributor branch" means a branch office maintained or availed of by a distributor for either:
(a) The sale of new motor vehicles to new motor vehicle dealers in this state.
(b) Directing or supervising its representatives in this state.
7. "Established place of business":
(a) Means a permanent enclosed building or structure that is owned either in fee or leased with sufficient space to display two or more motor vehicles of a kind and type that the dealer is licensed to sell and that is devoted principally to the use of a motor vehicle dealer in the conduct of the business of the dealer.
(b) In the case of a used motor vehicle dealer, trailer dealer or semitrailer dealer:
(i) Need not be a permanent building or structure or part of a permanent building or structure.
(ii) May be a vacant lot or part of a vacant lot.
(iii) Does not mean or include a residence, tent, temporary stand or temporary quarters or permanent quarters occupied pursuant to a temporary arrangement.
(c) In the case of an automotive recycler, means a permanent site or location at which the business of an automotive recycler is or will be conducted.
8. "Exhibitor" means a manufacturer of new motor homes that exhibits new motor homes at a special event.
9. "Factory branch" means a branch office maintained or availed of by a manufacturer for either:
(a) The sale of new motor vehicles to distributors or the sale of new motor vehicles to new motor vehicle dealers in this state.
(b) Directing or supervising its representatives in this state.
10. "Financial institution" means a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or holding company that is licensed, regulated or insured by the department of financial institutions insurance and financial institutions, the federal deposit insurance corporation, the office of thrift supervision, the comptroller of the currency, the national credit union share insurance fund or the national credit union administration.
11. "Franchise" means a contract between two or more persons if all of the following conditions are included:
(a) A commercial relationship of definite duration or continuing indefinite duration is involved.
(b) The franchisee is granted the right to offer, sell and service in this state new motor vehicles manufactured or distributed by the franchisor.
(c) The franchisee, as a separate business, constitutes a component of the franchisor's distribution system.
(d) The operation of the franchisee's business is substantially associated with the franchisor's trademark, service mark, trade name, advertising or other commercial symbol designating the franchisor.
(e) The operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts and accessories.
12. "Franchisee" means a person who both:
(a) Receives new motor vehicles from the franchisor under a franchise.
(b) Offers and sells to and services new motor vehicles for the general public.
13. "Franchisor" means a person who both:
(a) Manufactures or distributes new motor vehicles.
(b) May enter into a franchise.
14. "Importer" means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state.
15. "Lead" means any retail consumer who satisfies all of the following:
(a) Responds to a factory‑directed program that obtains consumer contact information and that provides such information to one or more dealers.
(b) Expresses an interest to the factory in purchasing, leasing or acquiring any vehicle or product, service or financing available from the dealers of that factory.
(c) Does not qualify for any reasonable factory sponsored employee, retiree or vendor new vehicle purchase program or any other reasonable similar factory new vehicle purchase program.
16. "Line‑make" means those motor vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer of those same motor vehicles.
17. "Major component part" includes a motor vehicle or vehicle part that the manufacturer has assigned any factory, motor, serial or other identification number or mark.
18. "Manufacturer" means any person who either:
(a) Manufactures or assembles new motor vehicles.
(b) Manufactures or installs on previously assembled truck chassis special bodies or equipment that when installed forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, excluding the installation of a camper on a pickup truck.
19. "Motor home" means a motor vehicle that is primarily designed as temporary living quarters and that:
(a) Is built onto as an integral part of, or is permanently attached to, a motor vehicle chassis.
(b) Contains at least four of the following independent life support systems if each is permanently installed and designed to be removed only for purposes of repair or replacement:
(i) A cooking facility with an onboard fuel source.
(ii) A gas or electric refrigerator.
(iii) A toilet with exterior evacuation.
(iv) A heating or air conditioning system with an onboard power or fuel source separate from the vehicle engine.
(v) A potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection.
(vi) A 110‑125 volt electric power supply.
20. "Motor vehicle" means an automobile, motor bus, motorcycle, truck or truck tractor or any other self‑propelled vehicle, trailer or semitrailer.
21. "Motor vehicle dealer" means a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle.
22. "New house trailer dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new house trailers or used house trailers taken in trade on new house trailers. For the purposes of this paragraph, "house trailer" means a vehicle, other than a motor vehicle, that is built on a chassis designed for being drawn on the highways by a motor vehicle and that is designed for human habitation.
23. "New motor vehicle" means a motor vehicle, other than a used motor vehicle, that is held either for:
(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle.
(b) Sale by another franchisee of the same line‑make.
24. "New motor vehicle dealer" means a person who buys, sells, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, new motor vehicles or used motor vehicles taken in trade on new motor vehicles or used vehicles purchased for resale.
25. "Off‑premises display and sales" means a promotion or sale of motor vehicles for a period of time as specified by the director that both:
(a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle dealer's agents or the manufacturer.
(b) Takes place at a location within the same county but not at the licensee's established place of business.
26. "Off‑premises exhibition" means the exhibition of a motor vehicle for a period of time as specified by the director at a location within the same county but not at the established place of business of a licensed motor vehicle dealer and at which a solicitation or sale does not occur.
27. "Provisional automotive recycler's license" means a license that both:
(a) Is issued by the department only in conjunction with an application for an automotive recycler's license.
(b) Permits the applicant or applicants to conduct the business of an automotive recycler regulated by this chapter pending completion of the criminal records check pursuant to section 28‑4361.
28. "Provisional dealer's license" means a license that both:
(a) Is issued by the department only in conjunction with an application for a dealer's license.
(b) Permits the applicant or applicants to conduct the business of a motor vehicle dealer regulated by this chapter pending completion of the criminal records check pursuant to section 28‑4361.
29. "Public consignment auction dealer" means a person who at the public consignment auction dealer's established place of business or at an authorized off‑premises location pursuant to the requirements of section 28‑4401 is in the business of both of the following:
(a) Conducting live auctions with a licensed auctioneer verbally calling for and accepting bids.
(b) Providing live auction services to the public on a consignment contract basis.
30. "Retail consumer" means any person purchasing, leasing or acquiring or possibly purchasing, leasing or acquiring a vehicle or product, service or financing not for resale.
31. "Service" means any service that is sold, leased or provided to retail consumers and that directly relates to the ownership or leasing of a new or used motor vehicle, including extended service contracts or motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor.
32. "Special event" means an exhibition of new motor homes by a motor vehicle dealer licensed to sell new motor homes or an exhibitor for a period of time specified by the director at a location in this state other than the licensee's or exhibitor's established place of business.
33. "Used motor vehicle" means a motor vehicle that has been sold, bargained, exchanged or given away or the title to the motor vehicle has been transferred from the person who first acquired the vehicle from the manufacturer, or importer, dealer or agent of the manufacturer or importer, and that has been placed in bona fide consumer use. For the purposes of this paragraph, "bona fide consumer use" means actual operation by an owner who acquired a new motor vehicle both:
(a) For use in the owner's business or for pleasure or otherwise.
(b) For which a certificate of title has been issued or that has been registered as provided by law.
34. "Used motor vehicle dealer" means a person, other than a new motor vehicle dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the business of selling, seven or more used motor vehicles in a continuous twelve month period. Used motor vehicle dealer does not include a wholesale motor vehicle auction dealer or a public consignment auction dealer.
35. "Wholesale motor vehicle auction dealer" means a person who both:
(a) Is in the business of providing auction services solely in wholesale transactions to motor vehicle dealers licensed by this state or any other jurisdiction.
(b) Does not buy, sell or own the motor vehicles the auction dealer auctions in the ordinary course of business.
36. "Wholesale motor vehicle dealer" means a person who sells used motor vehicles only to licensed motor vehicle dealers.
Sec. 32. Section 28-4405, Arizona Revised Statutes, is amended to read:
28-4405. Display of license; continuation date; late penalty
A. A license issued under this chapter:
1. Shall be conspicuously displayed in either:
(a) The established place of business for which it was obtained.
(b) The place of business if the licensee is a broker or a wholesale vehicle dealer.
2. Is not transferable or subject to sale or reassignment.
B. The director may issue licenses with staggered continuation dates to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year. In order to initiate a staggered license continuation system, the director may issue a license for more or less than a twelve month twelve-month period, but not more than eighteen months, and may prorate the license fee.
C. A motor vehicle dealer licensee shall submit its renewal application, evidence of its current transaction privilege tax license and applicable renewal fees to the department of transportation on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:
1. If the motor vehicle dealer is also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the initial licensing department, either the department of transportation or the department of financial institutions insurance and financial institutions.
2. If the motor vehicle dealer is not also a licensed dealer pursuant to title 44, chapter 2.1, the date prescribed by the department of transportation.
D. If a licensee fails, neglects or refuses to pay the required fee for the ensuing year on or before the license continuation date, the fee is delinquent and a penalty equal to the fee shall be added to the fee and collected.
Sec. 33. Section 28-5104, Arizona Revised Statutes, is amended to read:
28-5104. Bond requirement
A. Except as provided in subsection F of this section and sections 28‑5101.01 and 28‑5101.02, a person who applies for authorization pursuant to this article shall submit with the application a bond in a form to be approved by the director and in an amount of at least one hundred thousand dollars $100,000 for each location.
B. A surety company authorized to transact business in this state shall execute the bond with the applicant as principal obligor on the bond and the state as obligee. The bond shall be conditioned that the applicant will faithfully comply with all of the provisions of law and that the bond is noncancellable without at least sixty days' prior notice to the director. Any future liability of the surety company terminates on the director's termination of a third party's authorization.
C. The bond inures to the benefit of any person who suffers loss because of any of the following:
1. Nonpayment by the authorized person of any fee or tax paid to the third party by that person.
2. Insolvency or discontinuance of business.
3. Failure of the authorized third party to comply with the authorized third party's duties pursuant to this article.
D. The aggregate liability of a surety company for any breach of the conditions of a bond required pursuant to this section shall not exceed the amount of the bond.
E. The bond requirement of this section does not apply to:
1. A department, an agency or a political subdivision of this state.
2. An Arizona A court of this state.
3. An Arizona A law enforcement agency or department of this state.
4. A financial institution or enterprise under the jurisdiction of the department of financial institutions insurance and financial institutions or a federal monetary authority.
5. The federal government or any of its agencies.
6. A motor vehicle dealer that is licensed and bonded by the department of transportation or a state organization of licensed and bonded motor vehicle dealers.
7. A manufacturer, an importer, a factory branch or a distributor licensed by the department of transportation.
8. An insurer under the jurisdiction of the department of insurance and financial institutions.
9. An owner or a registrant of a fleet of one hundred or more vehicles.
10. A public utility.
11. A tribal government.
12. An employer or association that has at least five hundred employees or members.
F. A towing company employee who conducts a level one motor vehicle inspection described in section 28‑2011 and who applies for authorization pursuant to this article shall submit with the application a bond in a form to be approved by the director and in an amount of not to exceed twenty‑five thousand dollars more than $25,000. The bond issued pursuant to this subsection covers every location in which the towing company is located.
Sec. 34. Section 28-5105, Arizona Revised Statutes, is amended to read:
28-5105. Criminal records check; denial of application; immunity from costs
A. Except as provided by subsection B of this section, each applicant who owns twenty percent or more of an entity, each partner or stockholder who owns twenty percent or more of an entity and each person who is an employee of an authorized third party who has access to personal information as defined in section 28‑440 obtained from the department or a customer of the department or monies collected on behalf of this state, and who seeks authorization or certification, or both, pursuant to this article shall provide:
1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.
B. Each employee of an authorized third party who conducts vehicle inspections on behalf of the this state, shall provide:
1. A full set of fingerprints to the department of transportation for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
2. A nonrefundable fee to be paid to the department of public safety for the criminal records check.
C. The director may deny an application for authorization or certification, or both, if any individual included in the application has either:
1. Made a misrepresentation or misstatement in the application to conceal a matter that would cause the application to be denied.
2. Been convicted of fraud or an auto related auto‑related felony in any state, territory or possession of the United States or any foreign country within the ten years immediately preceding the date the criminal records check is complete.
3. Been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the five years immediately preceding the date the criminal records check is complete.
4. Violated a rule or policy of the department.
5. Been involved in any activity that the director determines to be inappropriate in relation to the authority granted.
D. The director may approve an application for provisional authorization or certification, or both, pending completion of the criminal records check if the applicant meets all other requirements of this article. The director may revoke a provisional authorization or certification, or both, for a violation of this title. A provisional authorization or certification, or both, is valid unless revoked by the director or until the applicant receives approval or denial of the application for authorization or certification, or both.
E. Within twenty days of completion of the criminal records check, the director shall approve or deny the application. If the application is denied, the director shall advise the applicant in writing of the denial and the grounds for denial. The department or its employees are not liable for any costs incurred by an applicant seeking authorization or certification, or both, under this article.
F. Within thirty days after receipt of the notice of denial, the applicant may petition the director in writing for a hearing on the application pursuant to section 28‑5107.
G. If the authorized third party adds a partner or stockholder who owns twenty percent or more of the entity and who was not included in the criminal records check on a prior application, the authorized third party shall notify the department within thirty days of the change.
H. At the time of notification pursuant to subsection F G of this section, the third party shall submit to the department of transportation an application and, if applicable, a full set of fingerprints and the fee to be paid to the department of public safety for a criminal records check. On completion of the investigation if the individual added or changed by the authorized third party is found to be ineligible pursuant to subsection B C of this section, the director of the department of transportation shall advise the authorized third party and the individual in writing of the grounds for the action and that the authorization will be revoked unless the individual is removed from the position.
I. The requirement for a criminal records check does not apply to an applicant who is seeking third party third-party authorization and who is:
1. A department, agency or political subdivision of this state.
2. An Arizona A court of this state.
3. An Arizona A law enforcement agency or department of this state.
4. A financial institution or enterprise under the jurisdiction of the department of financial institutions insurance and financial institutions or a federal monetary authority.
5. The federal government or any of its agencies.
6. A motor vehicle dealer that is licensed and bonded by the department of transportation or a state organization of licensed and bonded motor vehicle dealers.
7. A manufacturer, importer, factory branch or distributor licensed by the department of transportation.
8. An insurer under the jurisdiction of the department of insurance and financial institutions.
9. An owner or registrant of a fleet of one hundred or more vehicles.
10. A public utility.
11. A tribal government.
12. An employer or association that has at least five hundred employees or members.
J. For the purposes of this section, personal information does not include information received pursuant to section 28‑872.
Sec. 35. Section 32-1001, Arizona Revised Statutes, is amended to read:
32-1001. Definitions
In this chapter, unless the context otherwise requires:
1. "Claim" means an obligation for the payment of money or its equivalent and a sum or sums owed, due or asserted to be owed or due to another, for which a person is employed to demand payment and collect or enforce such payment, and includes:
(a) Obligations for the payment of money to another, in the form of conditional sales agreements, notwithstanding the personal property sold thereunder, for which payment is claimed or may be or is repossessed in lieu of payment.
(b) An obligation for the payment of money or its equivalent and a sum or sums owed, due or asserted to be owed or due which is sold or assigned to a purchaser or assignee for which either:
(i) The final payment has not been tendered to the seller or assignor.
(ii) Title has not yet passed.
(iii) The purchaser or assignee has a right of recourse against the seller or assignor.
2. "Collection agency" means:
(a) All persons engaged directly or indirectly in soliciting claims for collection or in collection of claims owed, due or asserted to be owed or due.
(b) Any person who, in the process of collecting debts occurring in the operation of his the person's own business, uses any name other than his the person's own name, which would indicate that a third person is collecting or attempting to collect such debts.
3. "Department" means the department of financial institutions insurance and financial institutions.
4. "Financial institution" means a person who does business under any other law of this state or law of another state or the United States relating to banks, trust companies, savings and loan associations, credit unions and savings banks.
5. "Person" means an individual, firm, partnership, association or corporation.
6. "Superintendent" means the superintendent of the financial institutions division of the department of insurance and financial institutions.
Sec. 36. Section 32-1391.01, Arizona Revised Statutes, is amended to read:
32-1391.01. Powers and duties of board
A. The board shall adopt rules that:
1. Describe or define deceptive, misleading or professionally negligent practices concerning the offer or sale of prearranged funeral agreements funded by trust and the handling of these funds or accounts.
2. Implement and interpret consumer disclosure requirements of this article to provide adequate information to purchasers of prearranged funerals.
3. Prescribe funeral establishment record keeping recordkeeping requirements concerning prearranged funeral trust sales and trust accounts and the handling and disposition of trust funds.
4. Define terms and develop forms and procedures to implement this article.
B. The board shall enter into an intergovernmental agreement with the department of financial institutions insurance and financial institutions to examine and report on prearranged funeral trust accounts of funeral establishments and to review prearranged funeral trust sales and trust account forms and procedures used by funeral establishments.
Sec. 37. Section 32-1391.03, Arizona Revised Statutes, is amended to read:
32-1391.03. Department of insurance and financial institutions powers and duties; prearranged funeral trust accounts
A. The department of financial institutions insurance and financial institutions shall determine all of the following in its examinations of prearranged funeral trust accounts:
1. The names and addresses of purchasers of prearranged funerals and the amount each purchaser paid to the funeral establishment.
2. The location and status of all monies received.
3. The total amount in trust accounts.
4. Whether a funeral establishment is complying with this article and rules adopted pursuant to this article.
5. Whether a funeral establishment is following recognized accounting procedures for prearranged funeral trust accounts and handling monies received from prearranged funeral sales.
B. The department shall:
1. Conduct examinations on a random basis or in connection with an investigation pursuant to procedures established by the board.
2. Examine the prearranged funeral trust accounts of each funeral establishment at least once within the first twelve months after it begins to sell prearranged funerals and at least once every three years thereafter.
3. Include prearranged funeral trust accounts established before January 1, 1985 in its examinations.
C. The department may examine and investigate prearranged funeral trust accounts pursuant to title 6, chapter 1, article 3 and pursuant to the powers of the board concerning prearranged funeral sales and trust accounts.
D. If the department determines after investigation or examination of a prearranged funeral trust account that a violation of any provision of this article has occurred, it shall send a written report to the board within thirty days of completion of the investigation or examination which that includes an identification of the violation and any relevant documents.
E. The department shall assess each funeral establishment at the rate of not to exceed five hundred twenty dollars more than $520 per day for each examiner employed in the examination of the establishment's prearranged funeral trust accounts pursuant to the requirements of this section.
Sec. 38. Section 32-1391.04, Arizona Revised Statutes, is amended to read:
32-1391.04. Prearranged funeral trust accounts; books and records; inspection and examination
A. All funeral establishments and financial institutions shall, on request of the department of financial institutions insurance and financial institutions, make their prearranged funeral trust account books and records available for inspection and examination by the state banking department.
B. All financial institutions with trust funds deposited pursuant to this article shall at least quarterly send a copy to the department of each cancellation request or death certificate it has received which that resulted in a withdrawal of funds from the trust account.
C. A financial institution shall have no legal duty to inquire about the disbursement of any trust funds deposited pursuant to this article if the financial institution has received the properly executed notifications or certifications required by this article.
D. A financial institution or funeral establishment operating according to the trust provisions established in this article shall not be considered in the trust business under title 6, chapter 8.
Sec. 39. Section 32-1391.05, Arizona Revised Statutes, is amended to read:
32-1391.05. Prearranged funeral agreements funded by trusts; definition
A. All monies paid under a prearranged funeral agreement funded by trust, except as provided in subsection B of this section, shall be deposited, within five business days after the receipt of the monies, in a prearranged funeral trust account with a financial institution doing business in this state. The monies shall be invested either in federally insured accounts, in which case the amounts so deposited shall not exceed the amount of the deposit insurance, or in direct obligations of the United States government. Federally insured accounts are defined as accounts insured by the federal deposit insurance corporation or the national credit union administration board. If invested in direct obligations of the United States government, the maturity dates of such obligations shall not exceed three years, unless rules adopted by the superintendent of financial institutions department of insurance and financial institutions permit a longer period and not less than five per cent percent of the amounts so deposited shall at all times be deposited in federally insured accounts.
B. All monies paid under a fixed price prearranged funeral agreement funded by trust shall be deposited, within twenty-one calendar days or fifteen business days, whichever is shorter after the receipt of the monies, in a prearranged funeral trust account with a financial institution doing business in this state. In investing these monies the trustee shall exercise the judgment and care of a prudent investor under the prevailing circumstances.
C. Except as provided in this article:
1. All monies deposited in a prearranged funeral trust account and all accrued interest shall be held in the trust account for and remain the property of the beneficiary during the beneficiary's life and of the beneficiary's estate after the beneficiary's death.
2. A funeral establishment or another person shall not withdraw, transfer, remove, commingle, encumber or use as collateral any monies paid to the establishment under a prearranged funeral agreement funded by trust.
3. All monies deposited and accrued interest in a prearranged funeral trust account shall be exempt from attachment, garnishment, execution and claims of creditors, receivers and trustees of the funeral establishment other than the claims of the beneficiary or the beneficiary's estate.
4. All monies deposited and accrued interest in a prearranged funeral trust account up to a total of five thousand dollars $5,000 shall be exempt from attachment, garnishment, execution and claims of creditors, receivers and trustees of the beneficiary other than the claims of the funeral establishment.
D. A funeral establishment may direct the financial institution in which the trust monies are deposited to transfer the trust account to another financial institution after providing each participant in the trust with the name and location of the institution and the new trust account number.
E. For the purposes of this section, "prudent investor" means a person who exercises the same care and expertise as a person of ordinary prudence, diligence, discretion and judgment would exercise in the management of the property of others, not in regard to speculation, but in regard to the permanent disposition of the funds considering the probable income as well as the probable safety of the capital to be invested.
Sec. 40. Section 32-1391.16, Arizona Revised Statutes, is amended to read:
32-1391.16. Annual trust report
A. On or before May 1, each funeral establishment holding a prearranged funeral sales endorsement shall file an annual report with the board concerning its prearranged funeral sales and trust account activities during the preceding calendar year.
B. The funeral establishment shall pay the annual report fee prescribed in section 32‑1309 when the annual report is filed.
C. The annual report shall contain the following information sworn to by the owner or owners of the funeral establishment:
1. The names and addresses of persons who were sold prearranged funerals funded by trust by the funeral establishment during the preceding calendar year, the names of the persons who are to be the beneficiaries of the prearranged funerals and the name of the registered salesperson selling each prearranged funeral.
2. The total contract amount for each purchaser listed in paragraph 1 of this subsection, the total monies previously paid on each contract and the monies paid by and refunded to the purchaser on each contract during the preceding calendar year.
3. The total trust funds contained in the funeral establishment's prearranged funeral trust accounts as of the end of the preceding calendar year and the total funds received in the trust accounts during that year.
4. The total monies, if any, received from purchasers but not deposited in the trust accounts as of the end of the preceding calendar year, excluding initial service fees received by the funeral establishment.
5. The names, registration numbers and addresses of all salespersons employed or otherwise engaged by the funeral establishment during the preceding calendar year and the names and registration numbers of all salespersons terminated during that year.
6. The names and addresses of the financial institutions where the trust funds are on deposit and the account number of each account.
7. A statement of the owner of the funeral establishment that the establishment has complied with this article and rules adopted pursuant to this article.
8. Other information required by the board.
D. Each funeral establishment that does not offer or sell prearranged funerals funded by trust or hold a prearranged funeral sales endorsement shall file with the board the annual report described in subsection C of this section concerning all prearranged funeral trust accounts established before January 1, 1985 and in existence during the preceding calendar year on or before May 1. For the purposes of this subsection, "prearranged funeral trust account" includes all prearranged funeral trust accounts or funds established pursuant to laws in existence before January 1, 1985.
E. The board shall provide the department of financial institutions insurance and financial institutions with a copy of each annual report filed pursuant to this section.
Sec. 41. Section 32-3601, Arizona Revised Statutes, is amended to read:
32-3601. Definitions
In this chapter, unless the context otherwise requires:
1. "Appraisal" or "real estate appraisal" means a statement that is independently and impartially prepared by an individual setting forth an opinion as to the market value of real property as of a specific date and supported by the presentation and analysis of relevant market information.
2. "Appraisal assignment" means an engagement for which a real estate appraiser is employed or retained to act, or would be perceived by third parties or the public in acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in or aspects of identified real estate.
3. "Appraisal foundation" means the appraisal foundation incorporated as an Illinois not‑for‑profit corporation on November 30, 1987.
4. "Appraisal report" means any communication, written or oral, of an appraisal.
5. "Appraisal review" means the act of reviewing or the report that follows a review of an appraisal assignment or appraisal report in which a real estate appraiser forms an opinion as to the adequacy and appropriateness of the report being reviewed.
6. "Appraisal standards board" means the appraisal standards board appointed by the board of trustees of the appraisal foundation to develop, interpret and amend the uniform standards of professional appraisal practice.
7. "Appraisal subcommittee" means the subcommittee of the federal financial institutions examination council created pursuant to 12 United States Code section 3310 and chapter 34A, as amended.
8. "Appraiser qualifications board" means the appraiser qualifications board that is appointed by the board of trustees of the appraisal foundation to establish the minimum education, experience and examination requirements for real estate appraisers.
9. "Complex one to four residential units" means property that is atypical for the marketplace. Atypical factors may include architectural style, age of improvements, size of improvements, size of lot, neighborhood land use, potential environmental hazard liability, leasehold interests, limited readily available comparable sales data or other unusual factors.
10. "Course approval" means the act of the superintendent reviewing course materials to form an opinion as to the adequacy and appropriateness of the course for licensing pursuant to section 32‑3613, certification pursuant to section 32‑3614 and continuing education as prescribed in section 32‑3625 in accordance with the appraiser qualifications board and this chapter.
11. "Department" means the department of financial institutions insurance and financial institutions.
12. "Federal financial institutions examination council" means that agency of the federal government created pursuant to 12 United States Code chapters 34 and 34A, as amended.
13. "Federally related transaction" means any real estate related financial transaction that a federal financial institution's regulatory agency or the resolution trust corporation engages in, contracts for or regulates and that requires an appraisal.
14. "Property tax agent" means an individual who is designated by a person or is an employee of an entity designated as an agent pursuant to section 42‑16001, who acts on behalf of a person who owns, controls or possesses property valued by a county assessor and who receives a fee for the analysis of any matter relating to the review of the valuation of the person's property before the assessor. Property tax agent does not include a person who is admitted to practice law in this state, an employee of the person owning, controlling or possessing the property or an employee of an entity designated pursuant to section 42‑16001, if the employee is performing a secretarial, clerical or administrative support function.
15. "Real estate" means an identified parcel or tract of land, including improvements, if any.
16. "Real estate related financial transaction" means any transaction involving the sale of, lease of, purchase of, investment in or exchange of real property, including interests in property or the financing of property, the refinancing of real property or interests in real property and the use of real property or interests in property as security for a loan or investment, including mortgage‑backed securities.
17. "Real property" means one or more defined interests, benefits and rights inherent in the ownership of real estate.
18. "Registered trainee appraiser" means a person who meets both of the following requirements:
(a) Is registered with the superintendent and meets the appraiser qualifications board's qualifications for trainee appraisers to perform appraisal services only under the direct supervision of a certified appraiser who has met the minimum criteria to be a supervisory appraiser.
(b) Accepts assignments only from the registered trainee appraiser's supervisory appraiser.
19. "Review appraiser" means a person who engages in the activity of reviewing and evaluating the appraisal work of others from the perspective of an appraiser, generally for compensation as a separate skill. This includes the function of reviewing an appraisal report or a file memorandum setting forth the results of the review process.
20. "Standards of professional appraisal practice" means the uniform standards of professional appraisal practice adopted by the superintendent.
21. "State‑licensed or state‑certified appraiser" means a person who develops and communicates appraisals and who holds a current, valid license or certificate issued under this chapter.
22. "Superintendent" means the superintendent of the financial institutions division of the department.
23. "Supervisory appraiser" means a state‑certified appraiser who has a supervisory appraiser designation and who:
(a) Has been in good standing for the last three years in the jurisdiction in which the registered trainee appraiser practices.
(b) Has not been disciplined in a manner that affects the supervisory appraiser's eligibility to engage in appraisal practice in any jurisdiction in the last three years.
(c) Directly supervises registered trainee appraisers by doing the following:
(i) Accepting responsibility for an appraisal by signing and certifying that the appraisal complies with the uniform standards of professional appraisal practice.
(ii) Reviewing and signing all registered trainee appraiser reports.
24. "Value" means the monetary relationship between properties and those who buy, sell or use those properties.
Sec. 42. Section 32-3605, Arizona Revised Statutes, is amended to read:
32-3605. Superintendent; duties; powers; immunity
A. The superintendent shall adopt rules in aid or in furtherance of this chapter.
B. The superintendent shall:
1. In prescribing standards of professional appraisal practice, adopt standards that at a minimum are equal to the standards prescribed by the appraisal standards board.
2. In prescribing criteria for certification, adopt criteria that at a minimum are equal to the minimum criteria for certification adopted by the appraiser qualifications board.
3. In prescribing criteria for licensing and registration, adopt criteria that at a minimum are equal to the minimum criteria for licensing and registration adopted by the appraiser qualifications board.
4. Further define by rule with respect to state‑licensed or state‑certified appraisers appropriate and reasonable educational experience, appraisal experience and equivalent experience that meets the statutory requirement of this chapter.
5. Adopt the national examination as approved by the appraiser qualifications board for state‑certified appraisers.
6. Adopt the national examination as approved by the appraiser qualifications board for state‑licensed appraisers.
7. Establish administrative procedures for:
(a) Processing applications for licenses and certificates, including registration certificates.
(b) Approving or disapproving applications for registration, licensure and certification.
(c) Issuing licenses and certificates, including registration certificates.
8. Define by rule, with respect to registered trainee appraisers, and state‑licensed and state‑certified appraisers, the continuing education requirements for the renewal of licenses or certificates that satisfy the statutory requirements provided in this chapter.
9. Periodically review the requirements for the development and communication of appraisals provided in this chapter and adopt rules explaining and interpreting the requirements.
10. Define and explain by rule each stage and step associated with the administrative procedures for the disciplinary process pursuant to this chapter, including:
(a) Prescribing minimum criteria for accepting a complaint against a registered trainee appraiser or a licensed or certified appraiser. The superintendent may not consider a complaint for administrative action if the complaint either:
(i) Relates to an appraisal that was completed more than five years before the complaint was submitted to the superintendent or more than two years after final disposition of any judicial proceeding in which the appraisal was an issue, whichever period of time is greater.
(ii) Is filed against a person who is a staff person of the department of financial institutions and the person is a licensed or certified appraiser and the complaint is against the person's license or certificate and relates to the person's performance of duties. This item applies to a contract investigator who is under contract with the department for the performance of an appraisal review as defined by the uniform standards of professional appraisal practice.
(b) Defining the process and procedures used in investigating the allegations of the complaint. The superintendent shall consolidate complaints that are filed within a six-month period of time if the complaints are against the same appraiser, relate to the same appraisal and property and are filed by an entity that is subject to the mandatory reporting provisions of the Dodd‑Frank Wall Street reform and consumer protection act (P.L. 111‑203; 124 Stat. 1376). Complaints that are consolidated pursuant to this subdivision must be considered and adjudicated as one complaint.
(c) Defining the process and procedures used in hearings on the complaint, including a description of the rights of the superintendent and any person who is alleged to have committed the violation.
(d) Establishing criteria to be used in determining the appropriate actions for violations.
11. Communicate information that is useful to the public and appraisers relating to actions for violations.
12. Issue decrees of censure, fix periods and terms of probation and suspend and revoke licenses and certificates pursuant to the disciplinary proceedings provided for in section 32‑3631.
13. At least monthly transmit to the appraisal subcommittee a listing of all appraisal management companies that have received a state certificate of registration in accordance with this chapter.
14. Report on the disposition of any matter referred by the appraisal subcommittee or any other federal agency or instrumentality or federally recognized entity reporting any action of a state‑licensed or state‑certified appraiser or appraisal management company that is contrary to this chapter.
15. Transmit the national registry fee collected pursuant to section 32‑3607 to the appraisal subcommittee.
16. Establish the fees in accordance with section 32‑3607.
17. Receive applications for state licenses and certificates.
18. Maintain a registry of the names and addresses of persons who are registered, licensed or certified under this chapter.
19. Retain records and all application materials submitted to the superintendent.
20. Publish on the department's website a current list of supervisory appraisers and registered trainee appraisers.
21. Perform such other functions and duties as may be necessary to carry out this chapter.
C. The superintendent may accept and spend federal monies and grants, gifts, contributions and devises from any public or private source to assist in carrying out the purposes of this chapter. These monies do not revert to the state general fund at the end of the fiscal year.
D. The superintendent may impose a civil penalty pursuant to section 32‑3631.
Sec. 43. Section 32-4301, Arizona Revised Statutes, is amended to read:
32-4301. License, certificate or registration expiration; military active duty; one hundred eighty-day extension
A. Except as otherwise provided in this section, a license, certificate or registration that is issued pursuant to this title to any member of the national guard or the United States armed forces reserves shall not expire while the member is serving on federal active duty and shall be extended one hundred eighty days after the member returns from federal active duty, provided that the member, or the legal representative of the member, notifies the license, certificate or registration issuing authority of the federal active duty status of the member. A license, certificate or registration that is issued pursuant to this title to any member serving in the regular component of the United States armed forces shall be extended one hundred eighty days from the date of expiration, provided that the member, or the legal representative of the member, notifies the license, certificate or registration issuing authority of the federal active duty status of the member.
B. A license, certificate or registration that is issued pursuant to this title to any member of the national guard, the United States armed forces reserves or the regular component of the United States armed forces shall not expire and shall be extended one hundred eighty days from the date the military member is able to perform activities necessary under the license, certificate or registration if the member both:
1. Is released from active duty service.
2. Suffers an injury as a result of active duty service that temporarily prevents the member from being able to perform activities necessary under the license, certificate or registration.
C. If the license, certificate or registration is renewed during the applicable extended time period after the member returns from federal active duty, the member is responsible only for normal fees and activities relating to renewal of the license, certificate or registration and shall not be charged any additional costs such as late fees or delinquency fees.
D. The member, or the legal representative of the member, shall present to the authority issuing the license, certificate or registration a copy of the member's official military orders, a redacted military identification card or a written verification from the member's commanding officer before the end of the applicable extended time period in order to qualify for the extension.
E. This section does not apply to licenses that are issued pursuant to chapter 10 of this title if a person other than the person who is a member of the national guard, the United States armed forces reserves or the regular component of the United States armed forces is authorized to renew the license.
F. A license or certificate that is issued pursuant to chapter 36 of this title to any member of the national guard, the United States armed forces reserves or the regular component of the United States armed forces shall be placed in active status for ninety days after the member returns from federal active duty, provided that the member, or the legal representative of the member, notifies the department of financial institutions insurance and financial institutions of the federal active duty status of the member.
Sec. 44. Section 35-311, Arizona Revised Statutes, is amended to read:
35-311. State board of investment; membership; powers and duties
A. A The state board of investment is established consisting of the state treasurer, the director of the department of administration or the director of the department of administration's designee, the superintendent of financial institutions director of the department of insurance and financial institutions or the director of the department of insurance and financial institutions' designee and two individuals appointed by the state treasurer, one of whom shall have has verifiable expertise in investment management and one of whom shall represent represents a public entity with current deposits in a local government investment pool. The state treasurer shall be is chairman of the board. The board shall keep an accurate record of its proceedings. A certified copy of the record is prima facie evidence of the matters appearing in the record in any court. A meeting of the board may be called at any time by the chairman or a majority of the board members.
B. The state board of investment shall:
1. Hold regular monthly meetings.
2. Review investments of treasury monies.
3. Serve as trustees of the permanent state land funds and provide management of the assets of the funds consistent with the requirements of article X, section 7, Constitution of Arizona.
4. Serve as trustees of any endowments established pursuant to section 35‑314.03.
C. The state treasurer shall furnish to the board of investment at its regular monthly meeting a report of the performance of current investments and a report of the current investments as of the close of business of the preceding month. The state treasurer shall make these reports available for inspection by the public during normal working hours at the office of the state treasurer for a period of time of not less than two years after the date of the report.
D. The board of investment may order the state treasurer to sell any of the securities, and any order shall specifically describe the securities and fix the time period during which they are to be sold. Securities so ordered to be sold shall be sold for cash by the state treasurer at the current market price. The state treasurer and the members of the board are not accountable for any loss occasioned by sales of securities at prices lower than their book value. Any loss shall be charged against earnings received from interest or capital gains on the applicable treasury monies.
E. The board may establish standards in addition to those established by section 35‑317, subsection A for the qualification of agents acting pursuant to section 35‑317, subsection B.
Sec. 45. Section 35-321, Arizona Revised Statutes, is amended to read:
35-321. Definitions
In this article, unless the context otherwise requires:
1. "Agency pool participant" means a subdivision or an entity of a subdivision that has monies maintained by the treasurer and that has the authority to draw negotiable instruments on the treasurer or make other disbursements from monies that the treasurer holds for the subdivision or entity.
2. "Board of deposit" means, in the case of a county, the board of supervisors, and in the case of a city or town, the common council.
3. "Capital structure" means the amount of the capital of the eligible depository shown by the latest call statement of condition as defined by rule of the superintendent of financial institutions department of insurance and financial institutions for the purpose of administration of this article.
4. "Collecting entity" means the entity from which the treasurer receives general funding including the county for collections performed by a county treasurer, the city for collections performed by a city treasurer or the district for collections performed by a district treasurer.
5. "Eligible depository" means any:
(a) Commercial or savings bank or savings and loan association having that has either a branch in this state or its principal place of business in this state and that is insured by the federal deposit insurance corporation or its successor or any other insuring instrumentality of the United States according to the applicable federal law.
(b) Credit union that is insured by the national credit union administration or its successor.
6. "Involuntary pool participant" means a subdivision that only receives the principal ratio of the monies collected, for which the principal monies are mandated to be distributed on a specific date and for which the interest earned on the monies between the time of collection and other statutory requirements reverts to the general fund of the collecting entity.
7. "Permissible rate of interest" means a rate of interest that an eligible financial institution is permitted to pay by state or federal law or valid state rules or federal regulations.
8. "Public deposit" means public monies deposited in an eligible depository pursuant to this article.
9. "Public monies" includes subdivision monies.
10. "State monies" means all monies in the treasury of this state or coming lawfully into the possession or custody of the state treasurer.
11. "Subdivision" means any county, noncharter city or town. Cities governed by charter have the option of operating under this article.
12. "Subdivision monies" means all monies in the treasury of a subdivision or coming lawfully into the possession or custody of the treasurer.
13. "Treasurer" includes the treasurer or officer exercising the functions of treasurer of any subdivision but excludes the state treasurer.
14. "Trust funds" means those monies entrusted to a public body or official for preservation and investment, as prescribed by the instrument establishing such funds.
Sec. 46. Section 35-323, Arizona Revised Statutes, is amended to read:
35-323. Investing public monies; bidding; security and other requirements
A. The treasurer shall invest and reinvest public monies in securities and deposits with a maximum maturity of five years. All public monies shall be invested in eligible investments. Eligible investments are:
1. Certificates of deposit in eligible depositories.
2. Deposits in one or more federally insured banks or savings and loan associations placed in accordance with the procedures prescribed in section 35‑323.01.
3. Interest bearing savings accounts in banks and savings and loan institutions doing business in this state whose accounts are insured by federal deposit insurance for their industry, but only if deposits in excess of the insured amount are secured by the eligible depository to the same extent and in the same manner as required under this article.
4. Repurchase agreements with a maximum maturity of one hundred eighty days.
5. The pooled investment funds established by the state treasurer pursuant to section 35‑326.
6. Obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities.
7. Bonds, notes or other evidences of indebtedness of this state or any of its counties, incorporated cities or towns, school districts or special taxing districts, including registered warrants, substitute checks and electronic funds transfers that bear interest pursuant to section 11‑635.
8. Bonds, notes or evidences of indebtedness of any county, municipal district, municipal utility or special taxing district of any state that are payable from revenues, earnings or a special tax specifically pledged for the payment of the principal and interest on the obligations, and for the payment of which a lawful sinking fund or reserve fund has been established and is being maintained, but only if no default in payment on principal or interest on the obligations to be purchased has occurred within five years of the date of investment, or, if such obligations were issued less than five years before the date of investment, no default in payment of principal or interest has occurred on the obligations to be purchased nor any other obligations of the issuer within five years of the investment.
9. Bonds, notes or evidences of indebtedness issued by any county improvement district or municipal improvement district of any state to finance local improvements authorized by law, if the principal and interest of the obligations are payable from assessments on real property within the improvement district. An investment shall not be made if:
(a) The face value of all such obligations, and similar obligations outstanding, exceeds fifty percent of the market value of the real property, and if improvements on which the bonds or the assessments for the payment of principal and interest on the bonds are liens inferior only to the liens for general ad valorem taxes.
(b) A default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment, or, if the obligations were issued less than five years before the date of investment, a default in the payment of principal or interest has occurred on the obligations to be purchased or on any other obligation of the issuer within five years of the investment.
10. Commercial paper of prime quality that is rated within the top two ratings by a nationally recognized rating agency. All commercial paper must be issued by corporations organized and doing business in the United States.
11. Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry at a minimum an "A" or better rating, at the time of purchase, from at least two nationally recognized rating agencies.
12. Negotiable or brokered certificates of deposit issued by a nationally or state chartered bank or savings and loan association.
13. Securities of or any other interests in any open‑end or closed‑end management type investment company or investment trust, including exchange traded funds whose underlying investments are invested in securities allowed by state law, registered under the investment company act of 1940 (54 Stat. 789; 15 United States Code sections 80a‑1 through 80a‑64), as amended.
B. Certificates of deposit shall be purchased from the eligible depository bidding the highest permissible rate of interest. No Monies over one hundred thousand dollars $100,000 may not be awarded at any interest rate less than one hundred three percent of the equivalent bond yield of the offer side of United States treasury bills having a similar term. If the eligible depository offering to pay the highest rate of interest has bid only for a portion of the monies to be awarded, the remainder of the monies shall be awarded to eligible depositories bidding the next highest rates of interest.
C. An eligible depository is not eligible to receive total aggregate deposits from this state and all its subdivisions in an amount exceeding twice its capital structure as outlined in the last call of condition of the superintendent of the financial institutions division of the department of insurance and financial institutions.
D. If two or more eligible depositories submit bids of an identical rate of interest for all or any portion of the monies to be deposited, the award of the deposit of the monies shall be made to the eligible depository among those submitting identical bids having, at the time of the bid opening, the lowest ratio of total public deposits in relation to its capital structure.
E. Each bid submitted, and not withdrawn prior to before the time specified, constitutes an irrevocable offer to pay interest as specified in the bid on the deposit, or portion bid for, and the award of a deposit in accordance with this section obligates the depository to accept the deposit and pay interest as specified in the bid pursuant to which the deposit is awarded.
F. The treasurer shall maintain a record of all bids received and shall make available to the board of deposit at its next regularly scheduled meeting a correct list showing the bidders, the bids received and the amount awarded. These records shall be available to the public and shall be kept in the possession of the treasurer for not less than two years from after the date of the report.
G. Any eligible depository, before receiving a deposit in excess of the insured amount under this article, shall deliver collateral for the purposes of this subsection equal to at least one hundred two percent of the deposit. The collateral shall be any of the following:
1. A bond executed by a surety company that is approved by the treasury department of the United States and authorized to do business in this state. The bond shall be approved as to form by the legal advisor of the treasurer.
2. Securities or instruments of the following character:
(a) United States government or agency obligations.
(b) State, county, school district and other district municipal bonds.
3. The safekeeping receipt of a federal reserve bank or any bank located in a reserve city, or any bank authorized to do business in this state, whose combined capital, surplus and outstanding capital notes and debentures on the date of the safekeeping receipt are ten million dollars $10,000,000 or more, evidencing the deposit therein of any securities or instruments described in this section. A safekeeping receipt shall not qualify as security, if issued by a bank to secure its own public deposits, unless issued directly through its trust department. The safekeeping receipt shall show on its face that it is issued for the account of the treasurer and shall be delivered to the treasurer. The safekeeping receipt may provide for the substitution of securities or instruments that qualify under this section with the affirmative act of the treasurer.
4. Letters of credit issued by a federal home loan bank if:
(a) The letter of credit has been delivered pursuant to this section or chapter 10, article 1 of this title to the statewide collateral pool administrator.
(b) The letter of credit meets the required conditions of:
(i) Being irrevocable.
(ii) Being issued, presentable and payable at a federal home loan bank in United States dollars. Presentation may be made by the beneficiary submitting the original letter of credit, including any amendments, and the demand in writing, by overnight delivery.
(iii) If the letter of credit is for purposes of chapter 10, article 1 of this title, containing a statement that identifies the statewide collateral pool administrator as the beneficiary.
(iv) Containing an issue date and a date of expiration.
(c) For the purposes of chapter 10, article 1 of this title, the eligible depository, if notified by the statewide collateral pool administrator, is not allowed to use new letters of credit issued by a federal home loan bank if that federal home loan bank fails to pay a draw request as provided for in the letters of credit or fails to properly complete a confirmation of such letters of credit.
H. The securities, instruments or safekeeping receipt for the securities and instruments shall be accepted at market value if not above par, and, if at any time their market value becomes less than the deposit liability to that treasurer, additional securities or instruments required to guarantee deposits shall be deposited immediately with the treasurer who made the deposit and deposited by the eligible depository in which the deposit was made.
I. The condition of the surety bond, or the deposit of securities, instruments or a safekeeping receipt, must be such that the eligible depository will promptly pay to the parties entitled public monies in its custody, on lawful demand, and will, when required by law, pay the monies to the treasurer making the deposit.
J. Notwithstanding the requirements of this section, any institution qualifying as an eligible depository may accept deposits of public monies to the total then authorized insurance of accounts, insured by federal deposit insurance, without depositing a surety bond or securities in lieu of the surety bond.
K. An eligible depository shall report monthly to the treasurer the total deposits of that treasurer and the par value and the market value of any pledged collateral securing those deposits.
L. When a security or instrument pledged as collateral matures or is called for redemption, the cash received for the security or instrument shall be held in place of the security until the depository has obtained a written release or provided substitute securities or instruments.
M. The surety bond, securities, instruments or safekeeping receipt of an eligible depository shall be deposited with the treasurer making the deposit, and the treasurer shall be the custodian of the bond, securities, instruments or safekeeping receipt. The treasurer may then deposit with the depository public monies then in the treasurer's possession in accordance with this article, but not in an amount in excess of the surety bond, securities, instruments or safekeeping receipt deposited, except for federal deposit insurance.
N. The following restrictions on investments are applicable:
1. An investment of public operating fund monies shall not be invested for a maturity of longer than five years.
2. The board of deposit may order the treasurer to sell any of the securities, and any order shall specifically describe the securities and fix the date on which they are to be sold. Securities so ordered to be sold shall be sold for cash by the treasurer on the date fixed in the order, at the then current market price. The treasurer and the members of the board are not accountable for any loss occasioned by sales of securities at prices lower than their cost. Any loss or expense shall be charged against earnings received from investment of public funds.
3. Investments shall not be made in companies identified pursuant to section 35‑392, subsection A, paragraph 1.
O. If the total amount of subdivision monies available for deposit at any time is less than the maximum coverage amount of the federal deposit insurance corporation, the subdivision board of deposit shall award the deposit of the funds to an eligible depository in accordance with an ordinance or resolution of the governing body of the subdivision. Deposits of less than the maximum coverage amount of the federal deposit insurance corporation are not subject to the requirements of this chapter.
Sec. 47. Section 35-1210, Arizona Revised Statutes, is amended to read:
35-1210. Procedure for payment of losses
When the administrator determines that an eligible depository securing public deposits in accordance with this section is a defaulting depository, the administrator shall take steps as promptly as practicable to reimburse public depositors of all uninsured public deposits held by the defaulting depository using the following procedures:
1. The administrator shall determine the amount of uninsured public deposits net of any deposit insurance held by the defaulting depository either with the cooperation of the department of financial institutions insurance and financial institutions or the receiver appointed for the defaulting depository or by any other means available.
2. The administrator shall assess the amount of the uninsured public deposits determined under paragraph 1 of this section against the defaulting depository. The administrator shall promptly take possession of the eligible collateral deposited by the defaulting depository with the depository's qualified escrow agent, to the extent necessary to satisfy the administrator's assessment, and shall liquidate the same eligible collateral.
3. On receipt of the liquidated eligible collateral, the administrator shall reimburse the public depositors from the proceeds of the collateral to the extent of the defaulting depository's deposit liability to the depositor, net of any applicable deposit insurance.
Sec. 48. Section 38-871, Arizona Revised Statutes, is amended to read:
38-871. Deferred compensation governing committee; members; powers and duties
A. The governing committee for deferred compensation plans is established that consists of the following seven members:
1. Three members who are appointed by the governor and who are either of the following:
(a) Individuals who have an account balance in a deferred compensation plan that is overseen by the governing committee. These individuals may be contributing or noncontributing participants in a deferred compensation plan and may be retired or nonretired.
(b) Members of the public who are not deferred compensation plan participants and who have at least ten years of relevant experience in either finance, investment management, pension plans or retirement plans.
2. The director of the department of administration or the director's designee.
3. The superintendent of the financial institutions division of the department of insurance and financial institutions or the superintendent's designee.
4. The director of insurance and financial institutions or the director's designee.
5. The director of the Arizona state retirement system or the director's designee.
B. Governing committee members are subject to the conflict of interest provisions of title 38, chapter 3, article 8 of this title.
C. The governing committee may:
1. Investigate and approve deferred compensation plans that give state employees income tax benefits authorized by title 26, United States Code Annotated.
2. In carrying out the purposes of this article, enter into agreements with companies with demonstrable expertise in the areas encompassed by this article.
3. Adopt rules.
D. The governing committee shall:
1. Arrange for consolidated billing and efficient administrative services so that any plans approved operate without cost or contribution from this state except for the incidental expenses of statutorily required administrative duties and the administration of payroll salary deduction or reduction and remittance of the monies to the administrator, trustee or custodian of the plan or plans.
2. Meet quarterly or more frequently as the committee deems necessary.
3. Arrange for an annual financial audit of the plans.
4. Arrange for a performance review of the plans or participation in benchmarking surveys or studies at least every five years.
Sec. 49. Section 41-619.51, Arizona Revised Statutes, as amended by Laws 2018, chapter 46, section 3 and chapter 296, section 12, is amended to read:
41-619.51. Definitions
In this article, unless the context otherwise requires:
1. "Agency" means the supreme court, the department of economic security, the department of child safety, the department of education, the department of health services, the department of juvenile corrections, the department of emergency and military affairs, the department of public safety, the department of transportation, the state real estate department, the department of financial institutions insurance and financial institutions, the Arizona game and fish department, the Arizona department of agriculture, the board of examiners of nursing care institution administrators and assisted living facility managers, the state board of dental examiners, the Arizona state board of pharmacy or the board of physical therapy or the state board of technical registration.
2. "Board" means the board of fingerprinting.
3. "Central registry exception" means notification to the department of economic security, the department of child safety or the department of health services, as appropriate, pursuant to section 41‑619.57 that the person is not disqualified because of a central registry check conducted pursuant to section 8‑804.
4. "Expedited review" means an examination, in accordance with board rule, of the documents an applicant submits by the board or its hearing officer without the applicant being present.
5. "Good cause exception" means the issuance of a fingerprint clearance card to an employee pursuant to section 41‑619.55.
6. "Person" means a person who is required to be fingerprinted pursuant to this article or who is subject to a central registry check and any of the following:
(a) Section 3-314.
(a) (b) Section 8‑105.
(b) (c) Section 8‑322.
(c) (d) Section 8‑463.
(d) (e) Section 8‑509.
(e) (f) Section 8‑802.
(f) (g) Section 8‑804.
(g) (h) Section 15‑183.
(h) (i) Section 15‑503.
(i) (j) Section 15‑512.
(j) (k) Section 15‑534.
(k) (l) Section 15‑763.01.
(l) (m) Section 15‑782.02.
(m) (n) Section 15‑1330.
(n) (o) Section 15‑1881.
(o) (p) Section 17‑215.
(p) (q) Section 28‑3228.
(q) (r) Section 28‑3413.
(r) (s) Section 32-122.02.
(s) (t) Section 32‑122.05.
(t) (u) Section 32‑122.06.
(u) (v) Section 32‑1232.
(v) (w) Section 32‑1276.01.
(w) (x) Section 32‑1284.
(x) (y) Section 32‑1297.01.
(y) (z) Section 32‑1904.
(z) (aa) Section 32-1941.
(aa) (bb) Section 32‑2022.
(bb) (cc) Section 32‑2108.01.
(cc) (dd) Section 32‑2123.
(dd) (ee) Section 32‑2371.
(ee) (ff) Section 32‑3620.
(ff) (gg) Section 32‑3668.
(gg) (hh) Section 32‑3669.
(hh) (ii) Section 36‑207.
(ii) (jj) Section 36‑411.
(jj) (kk) Section 36‑425.03.
(kk) (ll) Section 36‑446.04.
(ll) (mm) Section 36‑594.01.
(mm) (nn) Section 36‑594.02.
(nn) (oo) Section 36‑882.
(oo) (pp) Section 36‑883.02.
(pp) (qq) Section 36‑897.01.
(qq) (rr) Section 36‑897.03.
(rr) (ss) Section 36‑3008.
(ss) (tt) Section 41‑619.53.
(tt) (uu) Section 41‑1964.
(uu) (vv) Section 41‑1967.01.
(vv) (ww) Section 41‑1968.
(ww) (xx) Section 41‑1969.
(xx) (yy) Section 41‑2814.
(yy) (zz) Section 46‑141, subsection A.
(zz) (aaa) Section 46‑321.
Sec. 50. Repeal
Section 41-619.51, Arizona Revised Statutes, as amended by Laws 2018, chapter 287, section 3, is repealed.
Sec. 51. Section 41-1502, Arizona Revised Statutes, is amended to read:
41-1502. Arizona commerce authority; board of directors; conduct of office; audit
A. The Arizona commerce authority is established. The mission of the authority is to provide private sector leadership in growing and diversifying the economy of this state, creating high quality employment in this state through expansion, attraction and retention of businesses and marketing this state for the purpose of expansion, attraction and retention of businesses.
B. The authority shall be is governed by a board of directors consisting of:
1. The governor, who serves as chairperson.
2. The chief executive officer.
3. Seventeen private sector business leaders who are chief executive officers of private, for‑profit enterprises. None of these members may be an elected official of any government entity. These members must be appointed from geographically diverse areas of this state and not all from the same county. These members shall serve staggered three-year terms of office beginning and ending on the third Monday in January. These members shall be appointed as follows:
(a) Nine members who are appointed by the governor.
(b) Four members who are appointed by the president of the senate.
(c) Four members who are appointed by the speaker of the house of representatives.
4. The following as ex officio members without the power to vote:
(a) The president of the senate.
(b) The speaker of the house of representatives.
(c) The president of the Arizona board of regents.
(d) The president of each state university under the jurisdiction of the Arizona board of regents.
(e) One president of a community college who is appointed by a statewide organization of community college presidents.
(f) The chairperson of the governor's council on small business, or its successor.
(g) The chairperson of the workforce Arizona council established by executive order pursuant to section 41‑5401.
(h) One member of the rural business development advisory council established by section 41‑1505 who is appointed by the governor.
(i) The president of a statewide organization of incorporated cities and towns who is appointed by the governor.
(j) The president of a statewide organization of county boards of supervisors who is appointed by the governor.
C. For members who are appointed by the governor pursuant to subsection B of this section, before appointment by the governor, a prospective member of the board of directors shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
D. The following shall serve as technical advisors to the board to enhance collaboration among state agencies to meet infrastructure needs and facilitate growth opportunities throughout this state:
1. The director of environmental quality.
2. The state land commissioner.
3. The director of the department of revenue.
4. The director of the office of tourism.
5. The director of the department of transportation.
6. The director of water resources.
7. The director of the department of financial institutions insurance and financial institutions.
8. The director of the Arizona-Mexico commission in the governor's office.
9. The director of the office of economic opportunity.
E. The governor shall appoint a cochairperson of the board of directors from among the voting members. The board may establish an executive committee consisting of the chairperson, the cochairperson, the chief executive officer, and additional voting members of the board elected by the board. The chairperson may appoint subcommittees as necessary.
F. The board may request assistance from representatives of other state agencies to maximize economic development opportunities by leveraging their access to strategic assets and planning processes.
G. Board members serve without compensation but are eligible for reimbursement of expenses pursuant to section 41‑1504, subsection E, paragraph 1.
H. A majority of the voting members, which must include the chairperson and the chief executive officer, constitute a quorum for the purpose of an official meeting for conducting business. An affirmative vote of a majority of the members present at an official meeting is sufficient for any action to be taken.
I. The board of directors shall keep and maintain a complete and accurate record of all of its proceedings. Public access to the board's records is subject to section 41‑1504, subsection L.
J. The board of directors, executive committee, subcommittees and advisory councils are subject to title 38, chapter 3, article 3.1, relating to public meetings, except as follows:
1. In addition to section 38‑431.03, the board of directors, executive committee and subcommittees may meet in executive session for discussion about potential business development opportunities and strategies, which that, if made public, could potentially harm the applicant's, the potential applicant's or this state's competitive position.
2. Social and travel events related to the expansion, attraction and retention of businesses are not public meetings if no legal action involving a final vote or decision is taken.
3. Activities and events held in public for the purpose of announcing the expansion, attraction and retention of projects are not public meetings.
K. The board of directors and the officers and employees of the authority are subject to title 38, chapter 3, article 8, relating to conflicts of interest.
L. The board of directors shall adopt written policies, procedures and guidelines for standards of conduct, including a gift policy, for members of the board and for officers and employees of the authority.
M. The compensation of all officers and employees is considered a public record pursuant to title 39, chapter 1.
N. The authority shall operate on the state fiscal year. The board of directors shall cause an annual audit to be conducted on or before October 31 of each of the authority's public funds established by this chapter by an independent certified public accountant. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to chapter 7, article 10.1 of this title. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient.
O. All state agencies shall cooperate with the authority and make available data pertaining to the functions of the authority as requested by the authority.
Sec. 52. Section 41-1758, Arizona Revised Statutes, as amended by Laws 2018, chapter 46, section 4 and chapter 296, section 13, is amended to read:
41-1758. Definitions
In this article, unless the context otherwise requires:
1. "Agency" means the supreme court, the department of economic security, the department of child safety, the department of education, the department of health services, the department of juvenile corrections, the department of emergency and military affairs, the department of public safety, the department of transportation, the state real estate department, the department of financial institutions insurance and financial institutions, the board of fingerprinting, the Arizona game and fish department, the Arizona department of agriculture, the board of examiners of nursing care institution administrators and assisted living facility managers, the state board of dental examiners, the Arizona state board of pharmacy or the board of physical therapy or the state board of technical registration.
2. "Division" means the fingerprinting division in the department of public safety.
3. "Electronic or internet-based fingerprinting services" means a secure system for digitizing applicant fingerprints and transmitting the applicant data and fingerprints of a person or entity submitting fingerprints to the department of public safety for any authorized purpose under this title. For the purposes of this paragraph, "secure system" means a system that complies with the information technology security policy approved by the department of public safety.
4. "Good cause exception" means the issuance of a fingerprint clearance card to an applicant pursuant to section 41‑619.55.
5. "Person" means a person who is required to be fingerprinted pursuant to any of the following:
(a) Section 3-314.
(a) (b) Section 8‑105.
(b) (c) Section 8‑322.
(c) (d) Section 8‑463.
(d) (e) Section 8‑509.
(e) (f) Section 8‑802.
(f) (g) Section 15‑183.
(g) (h) Section 15‑503.
(h) (i) Section 15‑512.
(i) (j) Section 15‑534.
(j) (k) Section 15‑763.01.
(k) (l) Section 15‑782.02.
(l) (m) Section 15‑1330.
(m) (n) Section 15‑1881.
(n) (o) Section 17‑215.
(o) (p) Section 28‑3228.
(p) (q) Section 28-3413.
(q) (r) Section 32-122.02.
(r) (s) Section 32‑122.05.
(s) (t) Section 32‑122.06.
(t) (u) Section 32‑1232.
(u) (v) Section 32‑1276.01.
(v) (w) Section 32‑1284.
(w) (x) Section 32‑1297.01.
(x) (y) Section 32‑1904.
(y) (z) Section 32-1941.
(z) (aa) Section 32‑2022.
(aa) (bb) Section 32‑2108.01.
(bb) (cc) Section 32‑2123.
(cc) (dd) Section 32‑2371.
(dd) (ee) Section 32‑3620.
(ee) (ff) Section 32‑3668.
(ff) (gg) Section 32‑3669.
(gg) (hh) Section 36‑207.
(hh) (ii) Section 36‑411.
(ii) (jj) Section 36‑425.03.
(jj) (kk) Section 36‑446.04.
(kk) (ll) Section 36‑594.01.
(ll) (mm) Section 36‑594.02.
(mm) (nn) Section 36‑882.
(nn) (oo) Section 36‑883.02.
(oo) (pp) Section 36‑897.01.
(pp) (qq) Section 36‑897.03.
(qq) (rr) Section 36‑3008.
(rr) (ss) Section 41‑619.52.
(ss) (tt) Section 41‑619.53.
(tt) (uu) Section 41‑1964.
(uu) (vv) Section 41‑1967.01.
(vv) (ww) Section 41‑1968.
(ww) (xx) Section 41‑1969.
(xx) (yy) Section 41‑2814.
(yy) (zz) Section 46‑141, subsection A.
(zz) (aaa) Section 46‑321.
6. "Vulnerable adult" has the same meaning prescribed in section 13‑3623.
Sec. 53. Repeal
Section 41-1758, Arizona Revised Statutes, as amended by Laws 2018, chapter 287, section 4, is repealed.
Sec. 54. Section 41-3020.17, Arizona Revised Statutes, is amended to read:
41-3020.17. Department of insurance and financial institutions; termination July 1, 2020
If the voters approve a constitutional amendment repealing the authority for the department of insurance and financial institutions pursuant to article XV, section 5, Constitution of Arizona:
1. The department terminates on July 1, 2020.
2. Title 6, title 20, is title 32, chapters 9 and 36, title 41, chapter 31 and title 44, chapter 2.1 are repealed on January 1, 2021.
Sec. 55. Repeal
Sections 41-3022.17 and 41-3024.03, Arizona Revised Statutes, are repealed.
Sec. 56. Section 41-3451, Arizona Revised Statutes, as amended by Laws 2017, chapter 303, section 14, is amended to read:
41-3451. Automobile theft authority; powers and duties; fund; audit
A. An The automobile theft authority is established in the department of insurance and financial institutions consisting of the following members:
1. Two police chiefs who are appointed by the an Arizona association of chiefs of police, one of whom represents a city or town with a population of one hundred thousand or more persons and one of whom represents a city or town with a population of less than one hundred thousand persons, or their designees.
2. Two sheriffs who are appointed by the an Arizona sheriffs association, one of whom represents a county with a population of five hundred thousand or more persons and one of whom represents a county with a population of less than five hundred thousand persons, or their designees.
3. Two county attorneys who are appointed by the governor, one of whom represents a county with a population of two million or more persons and one of whom represents a county with a population of less than two million persons, or their designees.
4. Two employees of insurers who are licensed to write motor vehicle liability insurance in this state and who are appointed by the governor.
5. Two members of the general public who are appointed by the governor.
6. The assistant director for the motor vehicle division in the department of transportation or the assistant director's designee.
7. The director of the department of public safety or the director's designee.
B. Members serve staggered four‑year terms beginning and ending on the third Monday in January. At the first meeting each year, the members shall select a chairman from among the members. The authority shall meet at the call of the chairman or seven members.
C. The authority may:
1. Subject to chapter 4, article 4 of this title, hire staff members as necessary, including an executive director. The executive director's annual compensation shall not be more than one hundred thousand dollars.
2. Provide work facilities and equipment as necessary.
3. Determine the scope of the problem of motor vehicle theft, including particular areas of the state where the problem is greatest.
4. Analyze the various methods of combating the problem of motor vehicle theft.
5. Develop and implement a plan of operation.
6. Develop and implement a financial plan.
7. Solicit and accept gifts and grants.
8. Report by December 31 of each year to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state on its activities during the preceding fiscal year.
D. If the chairman of the authority knows that a potential ground for the removal of a member of the authority exists under this subsection, the chairman shall notify the governor. The governor shall remove the member if the governor finds that any of the following applies:
1. The member was not qualified to serve at the time the member was appointed.
2. The member does not maintain the member's qualifications to serve.
3. The member cannot discharge the member's duties for a substantial part of the term due to illness or other disability.
4. The member is absent from more than one‑half of the regularly scheduled meetings during a calendar year unless the member's absence is excused by a majority vote of the authority.
E. The automobile theft authority fund is established consisting of any public or private monies that the authority may receive. The automobile theft authority shall administer the fund. Subject to legislative appropriation, monies in the fund shall only be used to pay the expenses of the authority and to carry out the purposes of this section. Monies in the fund are exempt from the provisions of sections 35‑143.01 and 35‑190 relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.
F. The authority may accept nonmonetary contributions, including the services of individuals, office and secretarial assistance, mailings, printing, office equipment, facilities and supplies, that are necessary to carry out its functions. The nonmonetary contributions shall not be included in the costs of administration limitation prescribed by subsection H of this section.
G. The automobile theft authority shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent motor vehicle theft, including:
1. Financial support to law enforcement and prosecution agencies for programs that are designed to increase the effectiveness of motor vehicle theft prosecution.
2. Financial support for programs that are designed to educate and assist the public in the prevention of motor vehicle theft.
H. The costs of administration shall not exceed ten percent of the monies in the fund in any one year so that the greatest possible portion of the monies available to the authority is expended on combating motor vehicle theft.
I. Monies expended from the automobile theft authority fund shall be used to supplement, not supplant, other monies that are available for motor vehicle theft prevention.
J. Each insurer issuing motor vehicle liability insurance policies in this state shall pay a semiannual fee of fifty cents $.50 per vehicle insured under a motor vehicle liability insurance policy issued by the insurer. The fee shall be fully earned and nonrefundable at the time the insurer collects the premium for the motor vehicle liability insurance policy. Each insurer shall transmit the fee on or before January 31 and on or before July 31 of each year to the automobile theft authority for deposit in the automobile theft authority fund. The payment due on or before January 31 shall cover vehicles insured under policies that are issued during the period from July 1 through December 31 of the previous year. The payment due on or before July 31 shall cover vehicles insured under policies that are issued during the period from January 1 through June 30 of the same year.
K. The authority shall cause an audit to be made of the automobile theft authority fund. The audit shall be conducted by a certified public accountant every two years. The authority shall file a certified copy of the audit with the auditor general immediately. The auditor general may make further audits and examinations as the auditor general deems necessary and may take appropriate action relating to the audit pursuant to chapter 7, article 10.1 of this title.
L. Authority members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.
M. This section does not apply to vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds. Motor vehicle liability insurance policies issued in this state for vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds are exempt from subsection J of this section.
Sec. 57. Section 41-3451, Arizona Revised Statutes, as amended by Laws 2018, chapter 298, section 8, is amended to read:
41-3451. Automobile theft authority; powers and duties; fund; audit
A. The automobile theft authority is established in the department of insurance and financial institutions consisting of the following members:
1. Two police chiefs who are appointed by the an Arizona association of chiefs of police, one of whom represents a city or town with a population of one hundred thousand or more persons and one of whom represents a city or town with a population of less than one hundred thousand persons, or their designees.
2. Two sheriffs who are appointed by the an Arizona sheriffs association, one of whom represents a county with a population of five hundred thousand or more persons and one of whom represents a county with a population of less than five hundred thousand persons, or their designees.
3. Two county attorneys who are appointed by the governor, one of whom represents a county with a population of two million or more persons and one of whom represents a county with a population of less than two million persons, or their designees.
4. Two employees of insurers who are licensed to write motor vehicle liability insurance in this state and who are appointed by the governor.
5. Two members of the general public who are appointed by the governor.
6. The assistant director for the motor vehicle division in the department of transportation or the assistant director's designee.
7. The director of the department of public safety or the director's designee.
B. Members serve staggered four‑year terms beginning and ending on the third Monday in January. At the first meeting each year, the members shall select a chairman from among the members. The authority shall meet at the call of the chairman or seven members.
C. The authority may:
1. Subject to chapter 4, article 4 of this title, hire staff members as necessary, including an executive director. The executive director's annual compensation shall not be more than one hundred thousand dollars.
2. Provide work facilities and equipment as necessary.
3. Determine the scope of the problem of motor vehicle theft, including particular areas of the state where the problem is greatest.
4. Analyze the various methods of combating the problem of motor vehicle theft.
5. Develop and implement a plan of operation.
6. Develop and implement a financial plan.
7. Solicit and accept gifts and grants.
8. Report by December 31 of each year to the governor, the president of the senate, the speaker of the house of representatives and the secretary of state on its activities during the preceding fiscal year.
D. If the chairman of the authority knows that a potential ground for the removal of a member of the authority exists under this subsection, the chairman shall notify the governor. The governor shall remove the member if the governor finds that any of the following applies:
1. The member was not qualified to serve at the time the member was appointed.
2. The member does not maintain the member's qualifications to serve.
3. The member cannot discharge the member's duties for a substantial part of the term due to illness or other disability.
4. The member is absent from more than one‑half of the regularly scheduled meetings during a calendar year unless the member's absence is excused by a majority vote of the authority.
E. The automobile theft authority fund is established consisting of monies deposited pursuant to section 28‑2098 and any public or private monies that the authority may receive. The automobile theft authority shall administer the fund. Subject to legislative appropriation, monies in the fund shall only be used to pay the expenses of the authority and to carry out the purposes of this section. Monies in the fund are exempt from the provisions of sections 35‑143.01 and 35‑190 relating to lapsing of appropriations. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.
F. The authority may accept nonmonetary contributions, including the services of individuals, office and secretarial assistance, mailings, printing, office equipment, facilities and supplies, that are necessary to carry out its functions. The nonmonetary contributions shall not be included in the costs of administration limitation prescribed by subsection H of this section.
G. The automobile theft authority shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting programs that are designed to prevent motor vehicle theft, including:
1. Financial support to law enforcement and prosecution agencies for programs that are designed to increase the effectiveness of motor vehicle theft prosecution.
2. Financial support for programs that are designed to educate and assist the public in the prevention of motor vehicle theft.
H. The costs of administration shall not exceed ten percent of the monies in the fund in any one year so that the greatest possible portion of the monies available to the authority is expended on combating motor vehicle theft.
I. Monies expended from the automobile theft authority fund shall be used to supplement, not supplant, other monies that are available for motor vehicle theft prevention.
J. Each insurer issuing motor vehicle liability insurance policies in this state shall pay a semiannual fee of fifty cents $.50 per vehicle insured under a motor vehicle liability insurance policy issued by the insurer. The fee shall be fully earned and nonrefundable at the time the insurer collects the premium for the motor vehicle liability insurance policy. Each insurer shall transmit the fee on or before January 31 and on or before July 31 of each year to the automobile theft authority for deposit in the automobile theft authority fund. The payment due on or before January 31 shall cover vehicles insured under policies that are issued during the period from July 1 through December 31 of the previous year. The payment due on or before July 31 shall cover vehicles insured under policies that are issued during the period from January 1 through June 30 of the same year.
K. The authority shall cause an audit to be made of the automobile theft authority fund. The audit shall be conducted by a certified public accountant every two years. The authority shall file a certified copy of the audit with the auditor general immediately. The auditor general may make further audits and examinations as the auditor general deems necessary and may take appropriate action relating to the audit pursuant to chapter 7, article 10.1 of this title.
L. Authority members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.
M. This section does not apply to vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds. Motor vehicle liability insurance policies issued in this state for vehicles or vehicle combinations with a declared gross weight of more than twenty‑six thousand pounds are exempt from subsection J of this section.
Sec. 58. Section 41-3453, Arizona Revised Statutes, is amended to read:
41-3453. Failure to pay fee; definitions
A. The automobile theft authority shall notify the director of the department of insurance of an insurer's failure to pay the fee prescribed by section 41‑3451, subsection J. On receiving notice of an insurer's failure to pay the fee, the director may suspend the insurer's certificate of authority or impose a civil penalty of not more than one hundred twenty per cent percent of the amount due, or both. The insurer shall pay the civil penalty to the director. The director shall deposit, pursuant to sections 35‑146 and 35‑147, the civil penalty in the automobile theft authority fund.
B. For the purposes of this section:
1. "Director" means the director of the department of insurance and financial institutions.
2. "Insurer" means an insurer that writes motor vehicle insurance in this state, including reciprocal insurers, mutual companies, mutual associations and Lloyd’s plans.
Sec. 59. Section 44-281, Arizona Revised Statutes, is amended to read:
44-281. Definitions
In this article, unless the context otherwise requires:
1. "Administrator" means the superintendent of the financial institutions division of the department of insurance and financial institutions.
2. "Cash sale price" means the price stated in a retail installment contract for which the seller would have sold to the buyer, and the buyer would have bought from the seller, the motor vehicle which that is the subject matter of the retail installment contract, if such sale had been a sale for cash instead of a retail installment transaction. The cash sale price may include charges for accessories and their installation and for delivery, and servicing, repairing or improving the motor vehicle, and for charges for other costs that are necessary or incidental to the transaction and that the seller furnishes or agrees to pay on behalf of the buyer, including taxes, assessor's fees, license fees and fees for filing, recording or otherwise perfecting or releasing a reserved title or lien, and may include a reasonable charge for the seller's services.
3. "Finance charge" means the amount agreed upon on between the buyer and the seller, as limited herein, which in determining the cost of the motor vehicle is added to the aggregate of the following: The cash sale price and the amount, if any, included for insurance and other benefits where a separate cost is assigned thereto.
4. "Holder" of a retail installment contract means the retail seller of the motor vehicle under or subject to the contract or, if the contract is purchased by a sales finance company or other assignee, the sales finance company or other assignee.
5. "Motor vehicle" means any self‑propelled device in or by which any person or property is or may be transported or drawn on a public highway, except:
(a) Devices that move upon on or are guided by a track or travel through the air.
(b) The following, if not designed primarily for highway transportation, but which that may incidentally be operated on a public highway:
(i) Tractors.
(ii) Buses.
(iii) Trucks.
(iv) Power shovels.
(v) Road machinery.
(vi) Agricultural machinery.
6. "Person" means an individual, partnership, association, trust, corporation, or other legal entity.
7. "Retail buyer" or "buyer" means a person who buys a motor vehicle from a retail seller, not for the purpose of resale, and who executes a retail installment contract in connection therewith.
8. "Retail installment contract" or "contract":
(a) Means an agreement, entered into in this state, pursuant to which the title to or a lien upon on the motor vehicle, which is the subject matter of a retail installment transaction, is retained or taken by a retail seller from a retail buyer as security for the buyer's obligation.
(b) Includes:
(i) A conditional sales contract and a contract for the bailment or leasing of a motor vehicle by which the bailee or lessee contracts to pay as compensation for its use a sum substantially equivalent to or in excess of its value and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming, the owner of the motor vehicle for no other or a nominal consideration upon on full compliance with the provisions of the contract.
(ii) A secondary motor vehicle finance transaction.
9. "Retail installment transaction" means any transaction evidenced by a retail installment contract entered into between a retail buyer and a retail seller wherein the retail buyer buys a motor vehicle from the retail seller at a cost payable in one or more deferred installments. The cash sale price of the motor vehicle, the amount included for insurance if a separate charge is made and the finance charge shall together constitute the cost of the motor vehicle.
10. "Retail seller" or "seller" means a person who sells a motor vehicle to a retail buyer for purposes other than resale under or subject to a retail installment contract. For the purposes of paragraph 12 of this section "seller" means a person who sells and retains the use of the motor vehicle.
11. "Sales finance company":
(a) Means a person engaged, in whole or in part, in the business of purchasing retail installment contracts from one or more retail sellers.
(b) Includes a person engaged, in whole or in part, in the business of creating or holding retail installment contracts that exceed a total aggregate outstanding indebtedness of fifty thousand dollars $50,000.
(c) Does not include:
(i) The pledgee of an aggregate number of retail installment contracts to secure a bona fide loan thereon.
(ii) A motor vehicle dealer who creates retail installment contracts and assigns the retail installment contracts to third party lenders or financial institutions.
12. "Secondary motor vehicle finance transaction":
(a) Means any contract that includes provisions for either:
(i) Obtaining a security interest in or lien on a motor vehicle other than in connection with the sale of that motor vehicle.
(ii) The sale or conditional sale of a motor vehicle and the seller's right to retain use of the motor vehicle after the sale or conditional sale.
(b) Includes any conditional sales contract or contract for the bailment or leasing of a motor vehicle in which the bailee or lessee agrees to pay for use of the motor vehicle and the bailee or lessee is required to become or has the option of becoming the owner of the vehicle for any or no compensation.
(c) Does not include any commercial transaction as defined in section 44‑291.
Sec. 60. Section 44-282, Arizona Revised Statutes, is amended to read:
44-282. Licensing of sales finance companies required; penalty
A. No A person shall not engage in the business of a sales finance company in this state without a sales finance company license therefor as provided in this article. A motor vehicle dealer shall not sell or transfer any contract to a person in Arizona this state not licensed under the terms of this chapter.
B. The application for a license shall be in writing, under oath and in the form prescribed by the administrator. The application shall contain the name of the applicant, the date of incorporation if incorporated, the address where the business is or is to be conducted and similar information as to any branch office of the applicant, the name and resident address of the owners or partners or, if a corporation or association, of the directors, trustees and principal officers, and such other pertinent information the administrator may require.
C. The license fee for a sales finance company is the fee prescribed in section 6‑126.
D. To coincide with the licensing of motor vehicle dealers pursuant to title 28, chapter 10, the administrator may issue a sales finance company license pursuant to this article with staggered continuation dates to distribute the continuation workload as uniformly as practicable throughout the twelve months of the calendar year. In order to initiate a staggered license continuation system, the administrator may issue a license for more or less than a twelve month twelve‑month period, but not more than eighteen months, and may prorate the license fee.
E. A licensee shall submit its renewal application and applicable renewal fees to the department of financial institutions insurance and financial institutions on or before the license continuation date. For the purposes of renewal, the license continuation date is as follows:
1. If the licensee is also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the initial licensing department, either the department of transportation or the department of financial institutions insurance and financial institutions.
2. If the licensee is not also a licensed motor vehicle dealer pursuant to title 28, chapter 10, the date prescribed by the department of financial institutions insurance and financial institutions.
F. A penalty of twenty‑five dollars $25 per day shall be assessed against any licensee for each day after the license continuation date that the licensee's renewal application and fee are not received by the department of financial institutions insurance and financial institutions. Licenses not renewed within thirty days after their license continuation date expire.
G. A license shall be obtained for each separate place of business at or from which a licensee transacts business. Each license shall specify the location of the office or branch and must be conspicuously displayed there. In case such location is changed, the administrator shall endorse the change of location on the license on the payment of the fee prescribed in section 6‑126, subsection A.
H. On the filing of the application and the payment of the required fee the administrator shall issue a license to the applicant to engage in the business of a sales finance company under and in accordance with this article. All licenses issued under this article shall remain in full force and effect until surrendered, revoked, suspended or canceled by failure to renew under this article. No A licensee shall not transact any business provided for by this article under any other name.
I. A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or any other device without the prior written consent of the administrator. Written consent shall not be given if the administrator finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 44‑283 are applicable to the acquiring person. For the purposes of this subsection, "control" means the power to vote more than twenty percent of the outstanding voting shares of a licensed corporation, partnership, association or trust.
J. A person doing business under the laws of this state or the United States as a bank, savings bank, savings and loan association or credit union is exempt from the licensing requirements of this section but shall comply with all other requirements of this chapter, except that affiliates of banks, savings banks, savings and loan associations or credit unions shall comply with this section. For the purposes of this subsection, "affiliate" means an entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified.
Sec. 61. Section 44-287, Arizona Revised Statutes, is amended to read:
44-287. Contents of contract
A. The contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the motor vehicle including its make, year, model and identification number or marks.
B. The contract shall contain the following items:
1. The cash sale price of the motor vehicle.
2. The amount of the buyer's down payment, and whether made in money or goods, or partly in money and partly in goods.
3. The difference between paragraphs 1 and 2 of this subsection.
4. The amount, if any, included for insurance specifying the term and types of coverage. If the contract does not include liability insurance coverage for bodily injuries and property damage, such fact shall be so set forth in capital letters immediately above the signatures of the parties to the contract.
5. The final cash price balance, which is the sum of paragraph paragraphs 3 and paragraph 4 of this subsection.
6. The amount of the finance charge and the rate at which it is computed.
7. The time balance, which is the sum of paragraphs 5 and 6 of this subsection, payable in installments by the buyer to the seller, the number of installments, the amount of each installment and the due date or period thereof of each installment.
8. A statement, adjacent to the signature line of the contract, in bold‑faced type, setting forth the telephone number and address of the department of financial institutions insurance and financial institutions and stating that the seller is regulated by the department of financial institutions insurance and financial institutions and that any complaints concerning the contract may be addressed to the department of financial institutions insurance and financial institutions.
C. The items set forth in subsection B of this section need not be stated in the sequence or order set forth, and additional items may be included to explain the calculations involved in determining the stated time balance to be paid by the buyer.
D. Notwithstanding any other law, in the case of motor vehicles, trailers or semitrailers, a transaction does not create a sale or security interest merely because it provides that the rental price is permitted or required to be adjusted under the agreement either upward or downward by reference to the amount realized upon on sale or other disposition of the motor vehicle, trailer or semitrailer.
Sec. 62. Section 44-1601, Arizona Revised Statutes, is amended to read:
44-1601. Definitions
In this article, unless the context otherwise requires:
1. "Dealer" means a person engaged in conducting, managing or carrying on the business of purchasing solely precious items or precious items in addition to other tangible personal property. Dealer does not include:
(a) Investment brokerage houses.
(b) Financial institutions regulated by the department of financial institutions insurance and financial institutions.
(c) Securities brokerage houses regulated by a recognized national stock exchange.
2. "Investment brokerage house" means a house with commissioned agents who execute buy and sell orders for their customers and who:
(a) Execute orders for investment items.
(b) Do not assume the risks of ownership in the normal course of providing their brokerage services.
(c) Do not maintain or deal from an inventory of investment items.
3. "Investment items" means commodities which that possess the characteristics of those items commonly traded in internationally recognized markets.
4. "Local law enforcement agency" means the police department of an incorporated city or town or, in areas outside of incorporated cities and towns, the county sheriff.
5. "Person" means an individual, partnership, corporation, association or any other entity of whatever kind or nature.
6. "Precious item" means:
(a) Secondhand gold, silver, platinum or jewelry, flatware or holloware containing gold, silver or platinum.
(b) Secondhand precious or semiprecious stones whether mounted or unmounted.
(c) Secondhand pearls. Precious item does not include coins and unmounted gemstones accompanied by a certificate from an independent, internationally recognized gem grading laboratory.
7. "Purchase" means to buy, trade, exchange or receive a precious item.
8. "Secondhand" means that the precious item has previously been owned by someone other than the manufacturer or dealer whose business it is to sell such items to the public.
Sec. 63. Section 44-3101, Arizona Revised Statutes, is amended to read:
44-3101. Definitions
In this chapter, unless the context otherwise requires:
1. "Closed‑end company" means any management company other than an open‑end company or unit investment trust.
2. "Depository institution" means a bank, savings and loan association or trust company whose business is supervised and regulated by an agency of this state or the United States, or an employee, as defined in title 10, chapter 1, of any such bank, savings and loan association or trust company while acting within the scope of the employee's employment.
3. "Federal covered adviser" means an investment adviser registered under the investment advisers act of 1940.
4. "IARD" means the investment adviser registration depository operated by the national association of securities dealers.
5. "Investment adviser" means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. Investment adviser includes financial planners and other persons who, as an integral component of other financially related services, provide the foregoing investment advisory services to others for compensation and as part of a business or who hold themselves out as providing the foregoing investment advisory services to others for compensation. Investment adviser does not include:
(a) An investment adviser representative.
(b) A depository institution.
(c) A lawyer, law firm, certified public accountant or accounting firm whose performance of the investment advisory services is solely incidental to the practice of the person's profession or who does not do any of the following:
(i) Exercise investment discretion with respect to the assets of clients or maintain custody of the assets of clients for the purpose of investing the assets, except if the person is acting in a bona fide fiduciary capacity such as an executor, trustee, personal representative, estate or trust agent, guardian or conservator.
(ii) Accept or receive directly or indirectly any commission, fee or other remuneration contingent on the purchase or sale of any specific security by a client of the person.
(iii) Give advice on the purchase or sale of specific securities other than advice about specific securities that is based on financial statement analysis or tax considerations that are reasonably related to and in connection with the person's profession.
(d) A publisher, employee or columnist of any newspaper, news column, newsletter, news magazine or business or financial publication or service, whether communicated in hard copy form, by electronic means or otherwise, that does not consist of the rendering of advice on the basis of the specific investment situation of each client.
(e) An insurance company or insurance producer that is licensed or authorized by the department of insurance and financial institutions to transact the business of insurance, including the sale of annuities, whose performance of the investment advisory services is solely incidental to the conduct of business as an insurance company or insurance producer and that receives no special compensation for providing investment advisory services.
(f) A real estate salesperson or real estate broker who is licensed or authorized by the state real estate department to transact the business of real estate, whose performance as an investment adviser is solely incidental to the conduct of the individual's business as a broker or salesman and who receives no special compensation for providing investment advisory services.
(g) Any officer, director, partner or employee of an entity engaged in selling interest in entities that invest in real property, including partnerships, corporations or sole proprietorships, if such transactions are otherwise subject to the securities laws of the United States or this state.
(h) Mortgage brokers or mortgage bankers who are licensed by the department of financial institutions insurance and financial institutions to transact the business of a mortgage broker or mortgage banker, and their employees, whose performance of any investment advisory service is solely incidental to the conduct of the business of a mortgage broker or mortgage banker and who receives no special compensation for providing investment advisory services.
6. "Investment adviser representative" means any partner, officer or director of an investment adviser, any individual who occupies a status or performs functions similar to a partner, officer or director of an investment adviser or any other individual who is employed by or associated with an investment adviser, except clerical or ministerial personnel, and who does any of the following:
(a) Makes any recommendations or otherwise renders advice regarding securities.
(b) Manages accounts or portfolios of clients.
(c) Determines which recommendation or advice regarding securities should be given to a client if the individual is a member of the investment adviser's investment committee that determines general investment advice to be given to clients or the individual determines general client advice if the investment adviser has no investment committee, except that if an investment adviser has more than five individuals who make recommendations or give advice, only the supervisors of those individuals are investment adviser representatives.
(d) Solicits, offers or negotiates for the sale of or sells investment advisory services.
(e) Directly supervises employees who perform any of the acts described in this paragraph.
7. "Investment advisers act of 1940" means the act of Congress known as the investment advisers act of 1940 (15 United States Code section 80b).
8. "Investment company" means any company that is registered under the investment company act of 1940.
9. "Investment company act of 1940" means the act of Congress known as the investment company act of 1940 (15 United States Code section 80a).
10. "Licensed investment adviser" means an investment adviser licensed under this chapter.
11. "Licensed investment adviser representative" means an investment adviser representative licensed under this chapter.
12. "Open‑end company" means a management company that is offering for sale or has outstanding any redeemable security of which it is the issuer.
13. "Solely incidental to the practice of the person's profession" and "solely incidental to the conduct of the person's business" means that the person does not hold itself out to the public as a provider of investment advisory services, the investment advisory services are rendered in connection with and reasonably related to the professional services or business transactions being provided or consummated and the fee charged for the investment advisory services is based on the same factors used by the person to determine the fees for the person's professional or business services.
14. "Unit investment trust" means an investment company that is organized under a trust indenture, contract of custodianship or agency or similar instrument, that does not have a board of directors and that issues only redeemable securities, each of which represents an undivided interest in a unit of specified securities, but does not include a voting trust.
Sec. 64. Section 46-300.03, Arizona Revised Statutes, is amended to read:
46-300.03. Individual development accounts; definition
A. A financial instrument known as an individual development account is established. An individual development account shall be in the name of an individual account holder who is a member of an assistance unit that is receiving cash assistance benefits.
B. Deposits to an individual development account may be made by:
1. The individual account holder.
2. A member of the individual account holder's assistance unit.
3. A nonprofit organization.
4. Individual contributors.
C. The department shall:
1. Adopt rules regarding:
(a) The establishment and administration of the individual development accounts. These rules shall include provisions which that stipulate that the department may not qualify an assistance unit for benefits by prospectively budgeting the availability of an individual development account.
(b) The criteria a nonprofit organization must satisfy before making deposits to individual development accounts.
(c) Penalties for fraud or abuse with respect to the individual development account.
2. Not approve more than one individual development account per assistance unit.
3. Issue a request for proposals to financial institutions to establish and, together with the department, administer individual development accounts.
4. Not approve an individual development account for any recipient who has been found by either the department or a court of law to have committed any act of fraud or abuse with respect to any cash or in‑kind benefit program including aid to families with dependent children, food stamps or medicaid.
5. Investigate all cases for possible fraud or abuse when there is evidence or other reason to believe that income sources for an account holder's deposits were previously available to the account holder but undeclared during application or subsequent redetermination for assistance, or that individual contributions to an account should have been declared as income or child support payments or represent proceeds from illegal activities.
D. The individual development accounts shall be administered by a financial institution that is licensed by the department of financial institutions insurance and financial institutions. These accounts shall earn interest at rates that are competitive with savings account rates.
E. The balance of an individual development account at any one time may not exceed nine thousand dollars $9,000. Total deposits to an individual development account over the life of the account shall not exceed twelve thousand dollars $12,000. Deposits from income earned by a member or members of an assistance unit may not exceed two hundred dollars $200 per month.
F. The account holder whose assistance unit is receiving cash assistance benefits from the department may withdraw monies from his the account holder's individual development account for:
1. Educational costs at an accredited institution of higher education that are paid directly to the institution.
2. Training costs for an accredited, licensed or certified training program that are paid directly to an eligible education institution.
3. Purchase costs for a first home to be used as a qualified principal residence by the account holder. These costs shall be paid directly to the persons or organizations to which the amounts are due.
4. Business capitalization expenses paid directly to a business capitalization account, which is held in a federally insured financial institution. The business capitalization account shall be restricted to use solely for qualified business capitalization expenses.
G. Unless the monies would have been otherwise disregarded from an income calculation, the department shall consider withdrawals from an individual development account, for purposes other than those established in subsection F of this section, by an account holder whose assistance unit is receiving cash assistance or both cash assistance and food stamp program benefits, as income to the assistance unit in the month that it is withdrawn.
H. The department shall disregard from an assistance unit's earned income calculation fifty per cent of a deposit made to an individual development account from the proceeds of an account holder's or assistance unit member's earned income. The maximum monthly disregard under this subsection shall not exceed one hundred dollars $100.
I. Subject to the limitations prescribed in this section, deposits made into an individual development account and the account balance, including interest earned, shall be disregarded by the department in determining the account holder's and the assistance unit's eligibility for the cash assistance and food stamp programs as well as any other assistance or services in which eligibility for receipt is directly linked to eligibility for the cash assistance and food stamp programs. If an assistance unit with an individual development account experiences any break in eligibility for cash assistance, and then subsequently reapplies for either cash assistance or food stamp program benefits, the department shall consider any remaining account monies, unless otherwise excludable, as countable assets and shall not disregard, for purposes of eligibility in either program, future deposits into an individual development account.
J. The account holder shall name contingent beneficiaries at the time he when the account holder establishes the account and may change beneficiaries at any time after the account is established. If the named beneficiary is deceased or otherwise cannot accept the transfer, the monies shall be deemed unclaimed property.
K. A holder of an individual development account whose assistance unit is no longer receiving cash assistance benefits from the department may withdraw his the holder's deposited monies from his the holder's account for any purpose. The account holder is responsible to abide by any regulations or guidelines regarding the use of any monies contained in the account which that are from a nonprofit or governmental organization.
L. For the purposes of this section "department" means the department of economic security.
M. The legislature intends by this section to address the problem faced by many assistance beneficiaries of being unable to either achieve educational goals or accumulate resources during a stay on welfare due to the effects of financial eligibility criteria. The inability to meet educational goals or accumulate some financial resources is a significant reason why many beneficiaries do not permanently transition off of welfare programs and instead shuttle back and forth between periods of eligibility and ineligibility. The purpose of the individual development accounts is to provide an additional tool to assistance assist beneficiaries to use during and after a stay on welfare, in order to help facilitate a permanent transition off of welfare programs and into self‑sufficiency.
Sec. 65. Section 48-101, Arizona Revised Statutes, is amended to read:
48-101. State certification board
A. The state certification board shall consist consists of the attorney general, the director of water resources and the superintendent of the financial institutions division of the department of insurance and financial institutions.
B. The board shall elect one of its members chairman, and appoint a secretary who shall keep the records and minutes of the board. One or more members of the board shall from time to time, as may be required, designate from his or their the member's regularly employed personnel the secretary and such clerks and assistants as are necessary to perform the duties of the board but without extra compensation.
C. The governor shall be an ex officio member of the board without additional compensation. The office of the board shall be at Phoenix, where records concerning all proceedings taken under this article shall be kept.
D. The board shall meet on a call of the chairman or on the written request of three of its members at a fixed time within official business hours, on not less than two days' prior written notice, but notice may be waived in writing. Meetings may be recessed or adjourned from time to time without giving further notice and continuances may be granted for good cause. A majority shall constitute constitutes a quorum and matters pending before the board shall be decided by majority vote. The board shall be authorized to may adopt and promulgate necessary rules of procedure and regulations for the conduct of its affairs and discharge of its duties under this article. No Fees other than for necessary stenographic services, printing or publication, shall may not be charged or collected from the applicant by the board.
E. The scope and subjects of the board’s examination, consideration and determination shall be are confined to the matters prescribed and embraced in the record filed by the applicant in support of its application and its proposed bond issue, proof offered in respect thereto, and the adequacy, weight and sufficiency thereof to justify the proposed bond issue.
Sec. 66. Section 48-3204, Arizona Revised Statutes, is amended to read:
48-3204. Issuance of certificate; form
A. When any bond of a district, including any bond authorized but not sold, which that is eligible for certification by the director of the department of administration as provided by section 48‑3202 is presented to the director of the department of administration, he the director of the department of administration shall attach a certificate to the bond in substantially the following form:
Phoenix, Arizona
________________________
(insert date)
I, __________________________ director of the department of administration of the state of Arizona, do hereby certify that the within bond, number _______________, of series number ______________ of the _________________ district, issued _______________________ (insert date), is, in accordance with an act of the legislature of the state of Arizona, approved _____________________ (insert date), a legal investment for the funds of savings banks in the state of Arizona, and may be deposited to secure public monies, it being entitled to such privilege by virtue of an examination by the director of water resources, the attorney general and the superintendent of the financial institutions division of the department of insurance and financial institutions of the state of Arizona in pursuance of said act.
_____________________________
Director of the department of
administration of the state
of Arizona.
B. A facsimile of the signature of the director of the department of administration impressed upon on the certificate shall be a sufficient signing thereof, provided that the imprint of the seal of the director of the department of administration shall appear upon on both the certificate and the bond over the facsimile signature.
Sec. 67. Retention of rules
All rules adopted by the department of financial institutions remain in full force until amended by the department of insurance and financial institutions.
Sec. 68. Transfer; effect; succession
A. As provided by this act, the department of insurance and financial institutions succeeds to the authority, powers, duties and responsibilities of the department of financial institutions and the automobile theft authority.
B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of financial institutions and the automobile theft authority in existence before July 1, 2020.
C. All administrative matters, contracts and judicial and quasi‑judicial actions, whether completed, pending or in process, of the department of financial institutions and the automobile theft authority on July 1, 2020 are transferred to and retain the same status with the department of insurance and financial institutions.
D. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the department of financial institutions and the automobile theft authority retain their validity for the duration of their terms of validity as provided by law.
E. All equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies that remain unexpended and unencumbered on July 1, 2020 of the department of financial institutions and the automobile theft authority are transferred to the department of insurance and financial institutions.
Sec. 69. Conforming legislation
The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-fifth legislature, first regular session.
Sec. 70. Effective date; conditional enactment
This act is effective from and after June 30, 2020, except section 28-4301, Arizona Revised Statutes, as amended by Laws 2018, chapter 298, section 6 and this act, and section 41-3451, Arizona Revised Statutes, as amended by Laws 2018, chapter 298, section 8 and this act, become effective on the date prescribed by Laws 2018, chapter 298, section 12 but only on the occurrence of the condition prescribed by Laws 2018, chapter 298, section 12.
APPROVED BY THE GOVERNOR MAY 23, 2019.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 23, 2019.
