Bill
Number: S.B. 1530
Biggs Floor Amendment
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
Transfers administration of the Mining, Mineral and Natural Resources Educational Museum from the Historical Society to the Geological Survey within the University of Arizona. Transfers $428,300 and one FTE from the Historical Society to the Geological Survey for Museum operations. Requires the Historical Society to regain Museum authority if the building is not opened within two years. Restructures the Mining Museum Advisory Council. Transfers authority over the State Geologist and Geological Survey from the Governor to the Arizona Board of Regents. Changes the State Fire Safety Committee to an advisory committee. Makes technical and conforming changes.
Second Regular Session S.B. 1530
BIGGS FLOOR AMENDMENT
SENATE AMENDMENTS TO S.B. 1530
(Reference to printed bill)
Page 1, line 35, strike "37‑1307" insert "37‑1383"
Page 7, line 7, strike "governor shall appoint a"; strike ", pursuant to section"
Line 8, strike "38‑211, to be the administrative head of" insert "shall administer"; strike "to" insert "shall"
Line 9, strike "governor" insert "Arizona board of regents"
Line 10, strike "registered as a geologist by the state board of technical registration,"
Strike lines 14 through 17
Reletter to conform
Line 19, strike "Retain" insert "Engage"
Line 31, strike "Employ" insert "engage"
Between lines 34 and 35, insert:
"Sec. 6. Section 27-104, Arizona Revised Statutes, is amended to read:
27-104. Qualifications of employees; private activities relating to geological services prohibited
Qualifications of employees of working with the Arizona geological survey shall be prescribed by the state geologist with the concurrence of the governor Arizona board of regents. Neither the state geologist nor any employee working with the Arizona geological survey shall:
1. Acquire a pecuniary interest in any mineral resources property in the state.
2. Act as broker or agent for any purchaser, owner or agent of mineral resources property, equipment or products.
3. Accept any commission or compensation for services rendered in connection with industry in this state.
4. Make an investigation or report on an individual Arizona deposit of mineral resources or metallurgical process other than pursuant to such employee's official duties.
Sec. 7. Section 27-105, Arizona Revised Statutes, is amended to read:
27-105. Immunity
Any claim or action against the Arizona geological survey, the state geologist or any other officer, employee or volunteer of working with the geological survey in the person's official capacity must be brought against the state of Arizona and not against the geological survey, state geologist or officer, employee or volunteer individually."
Renumber to conform
Page 7, line 36, after "survey" insert "; mining, mineral and natural resources educational museum"
Line 37, before "The" insert "a."
Page 8, strike lines 41 through 44
Page 9, strike lines 1 through 9
Renumber to conform
Line 19, strike "state geologist" insert "Arizona board of regents"
Line 20, after "publications" insert "and other services of the Arizona geological survey"
Between lines 23 and 24, insert:
"B. In coordination with the mining, mineral and natural resources educational museum advisory council established by section 27‑111, the Arizona geological survey shall operate and maintain a mining, mineral and natural resources educational museum as the state depository for collecting, cataloging and displaying mining, mineral and natural resources artifacts and specimens. In connection with the mining, mineral and natural resources educational museum, the state geologist may:
1. Promote the recognition and celebration of the historical, cultural, economic and social contributions to this state made by the mining, mineral and natural resources industries in this state, including the livestock and agricultural industries.
2. Apply for and accept grants, gifts, bequests of legacies of real or personal property, donations, including donations of time, services and materials, or any other contribution, financial or otherwise, for use in accordance with the direction of the donor or, in the absence of an express direction, as prescribed by the Arizona geological survey. Monies received pursuant to this paragraph shall be deposited in a separate mining, mineral and natural resources educational museum account in the geological survey fund established by section 27-107 to be used exclusively for the maintenance, restoration and operations of the mining, mineral and natural resources educational museum.
3. Accept from the federal or state government, any local government or any of their agencies restricted and unrestricted monies made available to this state for the mining, mineral and natural resources educational museum.
4. Establish and collect entrance fees to the mining, mineral and natural resources educational museum.
5. Operate a retail gift shop, including the acquisition, purchase and resale of mining, mineral and natural resources specimens and related items.
6. Employ a curator for the mining, mineral and natural resources educational museum who possesses knowledge or experience in natural resources and operating a museum.
7. Operate educational programming for the mining, mineral and natural resources educational museum.
8. Accept the services of volunteers and provide oversight for their activities.
9. Pay the necessary maintenance and operation expenses of the mining, mineral and natural resources educational museum.
C. The Arizona geological survey:
1. With the approval of the mining, mineral and natural resources educational museum advisory council, shall adopt a collections management policy that is consistent with national standards and best practices for museums in the united states established by a national association of museums.
2. Shall maintain the items, artifacts and other inventory received for display or storage, including equipment and outdoor displays.
3. In coordination with the mining, mineral and natural resources educational museum advisory council and pursuant to the standards and best practices adopted pursuant to paragraph 1 of this subsection, may sell or otherwise dispose of materials received for the mining, mineral and natural resources educational museum.
Sec. 9. Section 27-106, Arizona Revised Statutes, as amended by section 8 of this act, is amended to read:
27-106. Duties of Arizona geological survey
A. The Arizona geological survey shall:
1. Map and describe the bedrock and related geologic materials and processes in this state, as follows:
(a) Prepare geologic maps that show the distribution of rock formations and surficial materials at the surface and in the subsurface.
(b) Describe the character of rock and surficial materials, including their age, origin and physical and chemical properties.
(c) Map, describe and monitor known and potential geologic hazards and limitations to land and resource management.
(d) Map and characterize energy and mineral resources and identify areas that may have potential for future discoveries.
2. Provide objective, scientific information about the geologic character of this state as follows:
(a) Provide timely, courteous responses to requests for information, advice and assistance from the public.
(b) Maintain a computerized bibliographic database of maps and reports on the geology of this state that is accessible to the public.
(c) Maintain an internet website that includes information about the Arizona geological survey, products and services available and the geologic character of this state.
(d) Give lectures and talks, conduct workshops, lead field trips and provide information and assistance to public, educational and professional groups.
(e) Publish reports and other information, written in nontechnical terms, to inform those who are not trained in geology about the geologic character of this state.
3. Prepare all data files of known areas of earth fissures, produce maps of those areas with overlays showing affected counties, cities, towns, highways and streets and transmit the maps in printed and electronic format to the state real estate department for purposes of providing public access to the earth fissure maps pursuant to this paragraph and section 32‑2117. The Arizona geological survey shall provide any map to any member of the public in printed or electronic format on request. The following notice shall be displayed below each map:
Notice
The state of Arizona has made a reasonable effort to ensure the accuracy of this map when it was produced, but errors may be present and the state of Arizona does not guarantee its accuracy. The map supplements, and is not a substitute for, a professional inspection of property for defects and conditions.
4. Operate and maintain a central repository and a computerized database for reports, books, maps and other publications regarding the geology, mining and mineral resources and associated technologies. Such repository and database shall be available for the use of the public and may be located at or connected with the university of Arizona or another state university or agency of this state. All databases and other archival materials shall be maintained in a secure and retrievable format and at a location prescribed by the state geologist to protect and preserve information from damage or destruction.
5. Utilize the services and expertise of the universities of this state at the discretion of the state geologist.
6. Cooperate with local, county, state and federal agencies.
7. Provide quality mining data, evaluation and assistance relating to mining and mineral development to the legislature, federal, state and local governmental agencies and the public.
8. Serve as a source of mining information and data necessary or advisable to attain its objectives. The Arizona board of regents may establish reasonable fees for publications and other services of the Arizona geological survey.
9. Cooperate with the Arizona corporation commission in its investigations and administration of laws, relating to the sale of mining securities.
B. In coordination with the mining, mineral and natural resources educational museum advisory council established by section 27‑111, the Arizona geological survey shall operate and maintain a mining, mineral and natural resources educational museum as the state depository for collecting, cataloging and displaying mining, mineral and natural resources artifacts and specimens. In connection with the mining, mineral and natural resources educational museum, the state geologist may:
1. Promote the recognition and celebration of the historical, cultural, economic and social contributions to this state made by the mining, mineral and natural resources industries in this state, including the livestock and agricultural industries.
2. Apply for and accept grants, gifts, bequests of legacies of real or personal property, donations, including donations of time, services and materials, or any other contribution, financial or otherwise, for use in accordance with the direction of the donor or, in the absence of an express direction, as prescribed by the Arizona geological survey. Monies received pursuant to this paragraph shall be deposited in a separate mining, mineral and natural resources educational museum account in the geological survey fund established by section 27-107 to be used exclusively for the maintenance, restoration and operations of the mining, mineral and natural resources educational museum.
3. Accept from the federal or state government, any local government or any of their agencies restricted and unrestricted monies made available to this state for the mining, mineral and natural resources educational museum.
4. Establish and collect entrance fees to the mining, mineral and natural resources educational museum.
5. Operate a retail gift shop, including the acquisition, purchase and resale of mining, mineral and natural resources specimens and related items.
6. Employ a curator for the mining, mineral and natural resources educational museum who possesses knowledge or experience in natural resources and operating a museum.
7. Operate educational programming for the mining, mineral and natural resources educational museum.
8. Accept the services of volunteers and provide oversight for their activities.
9. Pay the necessary maintenance and operation expenses of the mining, mineral and natural resources educational museum.
C. The Arizona geological survey:
1. With the approval of the mining, mineral and natural resources educational museum advisory council, shall adopt a collections management policy that is consistent with national standards and best practices for museums in the united states established by a national association of museums.
2. Shall maintain the items, artifacts and other inventory received for display or storage, including equipment and outdoor displays.
3. In coordination with the mining, mineral and natural resources educational museum advisory council and pursuant to the standards and best practices adopted pursuant to paragraph 1 of this subsection, may sell or otherwise dispose of materials received for the mining, mineral and natural resources educational museum."
Renumber to conform
Page 9, line 25, strike "of state geologist"
Line 26, strike "state geologist" insert "university of Arizona"
Page 9, strike lines 29 and 30
Renumber to conform
Strike lines 35 through 43
Page 10, strike lines 1 through 9
Line 18, strike "A" insert "the"
Line 21, strike "state geologist" insert "university of Arizona"
Line 23, after the period insert "The fund includes a separate mining, mineral and natural resources educational museum account consisting of monies received pursuant to section 27‑106, subsection B to be used exclusively for the maintenance and operations of the mining, mineral and natural resources educational museum.
Sec. 11. Section 27-107, Arizona Revised Statutes, as amended by section 10 of this act, is amended to read:
27-107. Powers and duties; fund
A. The university of Arizona shall:
1. Establish administrative functions and offices as necessary to achieve the purposes of this article.
2. Direct the work of the Arizona geological survey and the formulation of its program and policies.
3. Adopt rules as necessary to carry out the purposes of this article.
B. The state geologist or the geologist's designee, at any time, may enter the property and inspect wells drilled for oil, gas, geothermal resources, helium or carbon dioxide and shall control property, machinery and appliances necessary to gauge the wells.
C. The geological survey fund is established for the purposes provided in this article consisting of appropriations and all monies received pursuant to this article. Monies shall be separately accounted for and used as a continuing appropriation by the university of Arizona for the purposes provided from each source. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. The fund includes a separate mining, mineral and natural resources educational museum account consisting of monies received pursuant to section 27‑106, subsection B to be used exclusively for the maintenance and operations of the mining, mineral and natural resources educational museum.
Sec. 12. Section 27-108, Arizona Revised Statutes, is amended to read:
27-108. Publications; deposit
A. The state geologist Arizona board of regents, through the state geologist, may publish, in the form of bulletins, circulars, maps and other related series, or otherwise make available to state agencies, government officials, industry and the public the results of geological and related research and investigation undertaken by the Arizona geological survey. A publication shall not include any confidential information pursuant to section 27‑522. The state geologist shall consult with the operator and obtain the approval of the scope of work for the publication before the state geologist releases any proposed publication pertaining to a project regulated by the oil and gas conservation commission.
B. The publications of the Arizona geological survey shall be printed as the state geologist University of Arizona determines and distributed or sold as the interests of this state or science demand. Money obtained by the sale of publications shall be deposited in the geological survey fund established by section 27‑107 for printing further publications.
C. All materials collected, after having served the purpose of the Arizona geological survey, shall be made available to the universities, community colleges and high schools of this state.
Sec. 13. Repeal
Section 27-109, Arizona Revised Statutes, is repealed.
Sec. 14. Section 27-110, Arizona Revised Statutes, is amended to read:
27-110. Trade secrets; confidentiality; definition
A. The state geologist Arizona board of regents may receive and accept geologic, engineering and feasibility studies and other economic and technical information that is considered a trade secret in the mineral industry.
B. Trade secret information obtained under this section is confidential and not subject to public disclosure.
C. For the purposes of this section, "trade secret" means information to which all of the following apply:
1. A person has taken reasonable measures to protect the information from disclosure and the person intends to continue to take those measures.
2. The information is not and has not been reasonably obtainable by legitimate means by other persons without the person's consent, other than by governmental entities and other than in discovery based on a showing of special need in a judicial or quasi‑judicial proceeding.
3. A statute does not specifically require disclosure of the information to the public.
4. The person has satisfactorily shown that disclosing the information is likely to cause substantial harm to the person's competitive position.
Sec. 15. Section 41-827.01, Arizona Revised Statutes, is transferred and renumbered for placement in title 27, chapter 1, article 1, Arizona Revised Statutes, as section 27-111 and, as so renumbered, is amended to read:
27-111. Mining, mineral and natural resources educational museum advisory council; membership; duties; terms; compensation
A. The centennial and
mining, and mineral and natural resources educational museum advisory council is
established consisting of the following members who, except for the members
designated pursuant to paragraphs 1,
9 and 2 10 of this subsection, are
appointed by the governor:
1. The executive director
of the Arizona historical society or the director's designee.
2. 1. The state
geologist or the state geologist's designee.
3. 2. Two members One member representing the livestock industry.
4. 3. Two members
representing the mining industry.
5. 4. Two members One member representing the agriculture industry.
6. 5. Two members One member representing the tourism and other
climate-related industries industry.
7. 6. Two members One member representing the specialty
crops timber industry.
8. 7. One member who
is a natural resources education professional
knowledgeable in gems and
minerals.
9. One member representing
a natural resources foundation.
10. 8. Two members
representing the public.
9. One member of the house of representatives who is appointed by the speaker of the house of representatives.
10. One member of the senate who is appointed by the president of the senate.
B. The advisory council shall:
1. Select a chairperson and vice-chairperson from among its members.
2. Hold regular meetings and additional meetings at the call of the chairperson or a majority of its members.
3. Provide oversight and advice to the director of the Arizona historical society state geologist regarding
the centennial museum that houses the
mining, and mineral and natural resources educational museum and assist in
promoting the mission of the centennial
museum. The director state geologist shall accept
the recommendations of the advisory council if the director
state geologist finds
them to be practicable and in the best interest of the mining, mineral and natural resources educational museum.
4. Establish a subcommittee to provide assistance and advice in the areas of educational programming, the hiring and retention of a curator and oversight of mineral collections. The advisory council may establish subcommittees to act in an advisory capacity on other matters relevant to the mining, mineral and natural resources educational museum and the advisory council's duties.
C. The initial members appointed pursuant to
subsection A, paragraphs 3 through 10 2, 3, 4, 5, 6 and 7 of this section
shall assign themselves by lot to three, four and five year terms of
office. All subsequent members serve five
year four‑year
terms of office. A member may continue to serve until the
member's successor is appointed and assumes office.
D. Members of the advisory council are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. The advisory council is a public body for purposes of title 38, chapter 3, article 3.1.
Sec. 16. Repeal
Section 27-112, Arizona Revised Statutes, is repealed."
Renumber to conform
Page 15, line 8, strike "30 29" insert "30"
Page 19, between lines 16 and 17, insert:
"Sec. 22. Section 28-2448, Arizona Revised Statutes, is amended to read:
28-2448. Arizona centennial special plates; fund
A. The department shall issue Arizona centennial special plates. The department shall use thirty‑two thousand dollars from the state highway fund, established by section 28‑6991, to implement this section. The office of tourism shall design the Arizona centennial special plates. The design and color of the Arizona centennial special plates are subject to the approval of the department. The director of the department of transportation may allow a request for Arizona centennial special plates to be combined with a request for personalized special plates. If the director of the department of transportation allows such a combination, the request shall be in a form prescribed by the director of the department of transportation and is subject to the fees for the personalized special plates in addition to the fees required for the Arizona centennial special plates.
B. Of the twenty-five dollar fee required by section 28‑2402 for the original special plates and for renewal of special plates, eight dollars is a special plate administration fee and seventeen dollars is an annual donation.
C. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all special plate administration fees in the state highway fund established by section 28‑6991 and all donations collected pursuant to this section in the Arizona centennial special plate fund established by this section.
D. The Arizona centennial special plate fund is
established consisting of monies deposited pursuant to this section. The
director shall administer the fund. The first thirty-two thousand
dollars in the fund shall be reimbursed to the state highway fund established
by section 28‑6991. Not more than ten per
cent percent of
monies deposited in the fund annually shall be used for the cost of
administering the fund. Monies in the fund are continuously appropriated.
E. In fiscal year 2011‑2012,
the director shall quarterly allocate monies in the fund to the office of
tourism to pay costs related to Arizona centennial projects and events. In
fiscal year 2012‑2013 and in each fiscal year thereafter, The
director shall annually allocate monies in the fund to the Arizona historical society geological survey to pay costs related to the
maintenance and operations of the centennial museum
that houses the mining,
and mineral and natural resources educational museum.
F. On notice from the director, 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.
Sec. 23. Section 28-2448, Arizona Revised Statutes, as amended by section 22 of this act, is amended to read:
28-2448. Arizona centennial special plates; fund
A. The department shall issue Arizona centennial special plates. The department shall use thirty‑two thousand dollars from the state highway fund, established by section 28‑6991, to implement this section. The office of tourism shall design the Arizona centennial special plates. The design and color of the Arizona centennial special plates are subject to the approval of the department. The director of the department of transportation may allow a request for Arizona centennial special plates to be combined with a request for personalized special plates. If the director of the department of transportation allows such a combination, the request shall be in a form prescribed by the director of the department of transportation and is subject to the fees for the personalized special plates in addition to the fees required for the Arizona centennial special plates.
B. Of the twenty-five dollar fee required by section 28‑2402 for the original special plates and for renewal of special plates, eight dollars is a special plate administration fee and seventeen dollars is an annual donation.
C. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all special plate administration fees in the state highway fund established by section 28‑6991 and all donations collected pursuant to this section in the Arizona centennial special plate fund established by this section.
D. The Arizona centennial special plate fund is established consisting of monies deposited pursuant to this section. The director shall administer the fund. The first thirty-two thousand dollars in the fund shall be reimbursed to the state highway fund established by section 28‑6991. Not more than ten percent of monies deposited in the fund annually shall be used for the cost of administering the fund. Monies in the fund are continuously appropriated.
E. The director shall annually allocate monies in the fund to the Arizona geological survey historical society to pay costs related to the maintenance and operations of the centennial museum that houses the mining, and mineral and natural resources educational museum.
F. On notice from the director, 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."
Renumber to conform
Page 26, between lines 41 and 42, insert:
"Sec. 28. Section 32-2117, Arizona Revised Statutes, is amended to read:
32-2117. Earth fissure maps; posting; immunity
A. On receipt of maps from the Arizona geological survey, the state real estate department shall provide any earth fissure map to any member of the public in printed or electronic format on request and provide access on its website to the earth fissure maps prepared by the Arizona geological survey pursuant to section 27‑106, subsection A, paragraph 3. The following notice shall be displayed below each map:
Notice
The state of Arizona has made a reasonable effort to ensure the accuracy of this map when it was produced, but errors may be present and the state of Arizona does not guarantee its accuracy. The map supplements, and is not a substitute for, a professional inspection of property for defects and conditions.
B. Nothing in
This section shall be construed as denying
does not deny a person
rights guaranteed by the Arizona Constitution, and notwithstanding any other
law, a subdivider, owner or licensee is not liable to any person or
governmental entity for any act or failure to act in connection with:
1. The disclosure of real estate subject to earth fissures if the subdivider, owner or licensee provides a written disclosure or includes notice in a public report, issued pursuant to section 32‑2183 or 32‑2195.03, with respect to real estate subject to earth fissures, of the map and website described in subsection A of this section. The written disclosure or notice in a public report, issued pursuant to section 32‑2183 or 32‑2195.03, of the map and website does not create an independent cause of action.
2. Any disclosure that occurred before the date the map described in subsection A of this section is posted on the website if the subdivider, owner or licensee had no actual knowledge that the land was subject to earth fissures before the map was posted.
Sec. 29. Section 32-2117, Arizona Revised Statutes, as amended by section 28 of this act, is amended to read:
32-2117. Earth fissure maps; posting; immunity
A. On receipt of maps from the Arizona geological survey, the state real estate department shall provide any earth fissure map to any member of the public in printed or electronic format on request and provide access on its website to the earth fissure maps prepared by the Arizona geological survey pursuant to section 27‑106, subsection A, paragraph 3. The following notice shall be displayed below each map:
Notice
The state of Arizona has made a reasonable effort to ensure the accuracy of this map when it was produced, but errors may be present and the state of Arizona does not guarantee its accuracy. The map supplements, and is not a substitute for, a professional inspection of property for defects and conditions.
B. This section does not deny a person rights guaranteed by the Arizona Constitution, and notwithstanding any other law, a subdivider, owner or licensee is not liable to any person or governmental entity for any act or failure to act in connection with:
1. The disclosure of real estate subject to earth fissures if the subdivider, owner or licensee provides a written disclosure or includes notice in a public report, issued pursuant to section 32‑2183 or 32‑2195.03, with respect to real estate subject to earth fissures, of the map and website described in subsection A of this section. The written disclosure or notice in a public report, issued pursuant to section 32‑2183 or 32‑2195.03, of the map and website does not create an independent cause of action.
2. Any disclosure that occurred before the date the map described in subsection A of this section is posted on the website if the subdivider, owner or licensee had no actual knowledge that the land was subject to earth fissures before the map was posted."
Renumber to conform
Page 30, between lines 16 and 17, insert:
"Sec. 36. Section 33-423, Arizona Revised Statutes, is amended to read:
33-423. Disclosure; reports; indemnity; applicability; violation; classification
A. A disclosure report pursuant to this section may be provided to the buyer or seller of real property by a third party as authorized by the buyer or seller and shall be based on officially adopted and electronically posted or otherwise readily available governmental maps or information that discloses whether the real property is subject to one or more of the following:
1. Special flood hazard areas designated by the federal emergency management agency pursuant to 42 United States Code chapter 50.
2. Military airports and ancillary military facilities as defined in section 28‑8461 or as disclosed pursuant to section 28‑8484 or 32‑2113.
3. Military training routes as shown in the map produced pursuant to section 37‑102 and military restricted airspace as shown in the map produced pursuant to section 37‑102.
4. Public and private airports that are approved by the federal aviation administration.
5. Expansive soils as shown on maps issued by the natural resource conservation service or on other officially adopted and readily available governmental maps.
6. Fissures as shown on earth fissure maps issued by the Arizona geological survey pursuant to section 27‑106, subsection A, paragraph 3.
7. Special tax assessment areas or taxing authority and amount of special assessments in addition to ad valorem taxes as shown in the current tax records of the applicable county assessor.
8. Radon gas potential zones as shown on current maps issued by the United States environmental protection agency.
9. Environmental hazard superfund sites including the sites listed in the Arizona superfund program list and the water quality assurance revolving fund registry, or listed by the United States environmental protection agency including the national priorities list, the comprehensive environmental response compensation and liability information system database or on maps issued by the department of environmental quality or equivalent databases of those sites.
10. Any other condition that affects the real
property that the buyer or seller authorizes and the third party third‑party
provider agrees to provide in a third
party third‑party provider
disclosure report.
B. For any third party
third‑party provider
of information as prescribed by this section, the following apply:
1. A seller or buyer shall not be required to provide the written disclosure provided by this section to an insurance company, a lender or a governmental agency.
2. The third party
third‑party provider
shall carry errors and omissions insurance coverage with limits of at least one
million dollars per occurrence and in an aggregate of at least ten million
dollars. A person who violates this paragraph is guilty of a class 1
misdemeanor.
C. If an action is brought as a result of an error,
inaccuracy or omission in the disclosure made only by a third party third‑party provider who provides information pursuant
to subsection A of this section, the third party
third‑party provider
shall provide a defense against the action, shall indemnify the buyer or seller
who authorized the disclosure report and persons licensed pursuant to title 32,
chapter 20 who represent the buyer or seller for any judgment rendered and
shall reimburse reasonable attorney fees and costs incurred in defending the
action, unless the buyer, seller or agent for the buyer or seller had knowledge
of the error, inaccuracy or omission or the buyer, seller or agent for the
buyer or seller modified the disclosure and the modification resulted in the
error, inaccuracy or omission. Nothing in This section shall be construed to does not prohibit a third party third‑party
provider of information from agreeing by contract that the third party third‑party provider shall indemnify a person to a
greater extent than is required by this section.
D. If information that is disclosed pursuant to this section is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information or other act or occurrence after the delivery of the disclosure, no person is liable for the information that was disclosed unless the person had knowledge of the error, inaccuracy or omission.
E. This section shall not be construed to create a cause of action for the use of maps or other information pursuant to this section. This section does not apply to the sale of real property by any person pursuant to section 32‑2183 or section 32‑2195.03, or any affiliate of that person.
F. This section does not obligate any person to provide or purchase a disclosure report that is the subject of this section.
G. The listing of a condition in subsection A of
this section or in a third party third‑party provider
disclosure report does not by itself make that condition material or immaterial
to a particular real estate transaction. The materiality of any
disclosure is governed as otherwise provided by law.
Sec. 37. Section 33-423, Arizona Revised Statutes, as amended by section 36 of this act, is amended to read:
33-423. Disclosure; reports; indemnity; applicability; violation; classification
A. A disclosure report pursuant to this section may be provided to the buyer or seller of real property by a third party as authorized by the buyer or seller and shall be based on officially adopted and electronically posted or otherwise readily available governmental maps or information that discloses whether the real property is subject to one or more of the following:
1. Special flood hazard areas designated by the federal emergency management agency pursuant to 42 United States Code chapter 50.
2. Military airports and ancillary military facilities as defined in section 28‑8461 or as disclosed pursuant to section 28‑8484 or 32‑2113.
3. Military training routes as shown in the map produced pursuant to section 37‑102 and military restricted airspace as shown in the map produced pursuant to section 37‑102.
4. Public and private airports that are approved by the federal aviation administration.
5. Expansive soils as shown on maps issued by the natural resource conservation service or on other officially adopted and readily available governmental maps.
6. Fissures as shown on earth fissure maps issued by the Arizona geological survey pursuant to section 27‑106, subsection A, paragraph 3.
7. Special tax assessment areas or taxing authority and amount of special assessments in addition to ad valorem taxes as shown in the current tax records of the applicable county assessor.
8. Radon gas potential zones as shown on current maps issued by the United States environmental protection agency.
9. Environmental hazard superfund sites including the sites listed in the Arizona superfund program list and the water quality assurance revolving fund registry, or listed by the United States environmental protection agency including the national priorities list, the comprehensive environmental response compensation and liability information system database or on maps issued by the department of environmental quality or equivalent databases of those sites.
10. Any other condition that affects the real property that the buyer or seller authorizes and the third‑party provider agrees to provide in a third‑party provider disclosure report.
B. For any third‑party provider of information as prescribed by this section, the following apply:
1. A seller or buyer shall not be required to provide the written disclosure provided by this section to an insurance company, a lender or a governmental agency.
2. The third‑party provider shall carry errors and omissions insurance coverage with limits of at least one million dollars per occurrence and in an aggregate of at least ten million dollars. A person who violates this paragraph is guilty of a class 1 misdemeanor.
C. If an action is brought as a result of an error, inaccuracy or omission in the disclosure made only by a third‑party provider who provides information pursuant to subsection A of this section, the third‑party provider shall provide a defense against the action, shall indemnify the buyer or seller who authorized the disclosure report and persons licensed pursuant to title 32, chapter 20 who represent the buyer or seller for any judgment rendered and shall reimburse reasonable attorney fees and costs incurred in defending the action, unless the buyer, seller or agent for the buyer or seller had knowledge of the error, inaccuracy or omission or the buyer, seller or agent for the buyer or seller modified the disclosure and the modification resulted in the error, inaccuracy or omission. This section does not prohibit a third‑party provider of information from agreeing by contract that the third‑party provider shall indemnify a person to a greater extent than is required by this section.
D. If information that is disclosed pursuant to this section is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information or other act or occurrence after the delivery of the disclosure, no person is liable for the information that was disclosed unless the person had knowledge of the error, inaccuracy or omission.
E. This section shall not be construed to create a cause of action for the use of maps or other information pursuant to this section. This section does not apply to the sale of real property by any person pursuant to section 32‑2183 or section 32‑2195.03, or any affiliate of that person.
F. This section does not obligate any person to provide or purchase a disclosure report that is the subject of this section.
G. The listing of a condition in subsection A of this section or in a third‑party provider disclosure report does not by itself make that condition material or immaterial to a particular real estate transaction. The materiality of any disclosure is governed as otherwise provided by law."
Renumber to conform
Page 49, line 30, strike "2" insert "5"
Line 31, strike "safety committee's" insert "marshal's"
Page 53, line 25, strike "safety committee" insert "marshal"
Line 26, strike "37‑1307" insert "37‑1383"
Page 54, line 5, strike "safety committee" insert "marshal"; strike "37‑1307" insert "37‑1383"
Page 59, strike lines 7 through 29, insert:
"C. The state fire safety committee shall advise the state fire marshal on all of the following:
1. the adoption of a state fire code.
2. The adoption of a fee schedule for permits, plan submissions, plan reviews and reinspections.
3. The allocation of monies from the arson detection reward fund established by section 37‑1387."
Reletter to conform
Page 61, between lines 36 and 37, insert:
"2. Adopt by rule a state fire code establishing minimum standards for:
(a) Safeguarding life and property from fire and fire hazards.
(b) The prevention of fires and alleviation of fire hazards.
(c) The storage, sale, distribution and use of dangerous chemicals, combustibles, flammable liquids, explosives and radioactive materials.
(d) The installation, maintenance and use of fire escapes, fire protection equipment, fire alarm systems, smoke detectors and fire extinguishing equipment.
(e) The means and adequacy of fire protection and exit in case of fire in places in which numbers of persons work, live or congregate, excluding family dwellings that have fewer than five residential dwelling units.
(f) Other matters relating to fire prevention and control that are considered necessary by the state fire marshal.
3. Adopt rules and a schedule of fees for permits, plan submissions, plan reviews and reinspections that are payable by persons regulated under article 4 of this chapter.
4. Adopt rules for the allocation of monies from the arson detection reward fund established by section 37‑1387. The rules shall be consistent with the purposes set forth in section 37‑1387 and shall promote the effective and efficient use of the fund monies."
Renumber to conform
Page 61, lines 37 and 38, strike "by the state fire safety committee" insert "pursuant to this subsection"
Line 41, strike "safety committee" insert "marshal"
Line 43, strike "fire safety committee's established"; after "code" insert "established pursuant to this subsection"
Page 62, lines 23 and 31, strike "7" insert "10"
Page 80, between lines 2 and 3, insert:
"Sec. 81. Section 41-821, Arizona Revised Statutes, is amended to read:
41-821. Arizona historical society; powers; officers; duties of board of directors
A. An the Arizona historical
society is established.
B. Subject to limitations imposed by law, the society may purchase, receive, hold, lease and sell property, real and personal, for the benefit of this state and use of the society. The society may solicit private monetary donations for program activities.
C. The society shall have a president, a treasurer and other officers who are elected by the members of the society at times and by methods the bylaws of the society prescribe. Each member of the board of directors shall have knowledge, competence, experience and interest in the fields related to the preservation and promotion of Arizona history and be a member of the society or become a member of the society before senate confirmation. The governor shall appoint the members pursuant to section 38‑211 for a term of four years. The board of directors may designate from among its members an executive committee with authority to act in place of the board of directors and in accordance with directions the board of directors may give when the board of directors is not in session.
D. The board of directors is established consisting of the following members who are appointed pursuant to subsection C of this section:
1. One member from each county.
2. One member who is recommended by each of the designated historical organizations as prescribed by subsection I of this section.
3. Five members of the public.
E. The president shall preside at meetings of the society and of the board of directors. Each member of the board of directors is entitled to only one vote. The board of directors may conduct meetings telephonically.
F. The treasurer shall have custody of the monies of the society, other than legislative appropriations. The treasurer shall hold the monies of the society deposited in trust for the society's use and for the benefit of this state and shall disburse them only as prescribed by law and the bylaws of the society.
G. The board of directors shall hold in trust for this state and administer for the benefit of this state and use of the society all property acquired by the society.
H. All expenditures of legislative appropriations to the society shall be made on claims that are duly itemized, verified and approved by the executive director of the society. The executive director of the society shall present and file claims for payment with the director of the department of administration. The director of the department of administration shall draw the warrant on the state treasurer. The society may expend nonappropriated private funds related to program activities.
I. The board of directors shall annually designate one or more historical organizations within each county of this state that are incorporated as nonprofit organizations and that are deemed to have a functioning program of historical value based on criteria established by the board of directors. The board of directors may organize chapters made up of groups of its members who have a common interest in a geographical area of this state or a common interest in a field of history, may provide for the governance of these chapters and may grant to any chapter the power to exercise authority of the society as the board of directors may determine.
J. The board of directors, subject to legislative appropriation, may contract with certified historical organizations for services to be performed for the benefit of this state. The contracts shall be prepared by the Arizona historical society. The board of directors shall annually review the contracts to ensure fulfillment of their provisions.
K. Subject to chapter 4, article 4 of this title, the board of directors may employ an executive director and may employ or authorize the employment of other employees it considers appropriate to carry out the functions of the society. The executive director and all other employees shall have duties and exercise authority as may be prescribed by the board of directors or by the executive director acting under the direction of the board of directors.
L. The board may operate a program for the establishment and maintenance of historical markers at various locations in this state.
M. In cooperation with
the advisory council established by section 41‑827.01, the board shall
operate and maintain the centennial museum that houses the mining and mineral
museum and may engage in other activities related to the museum as determined
by the board or the executive director. Monies received pursuant to this
subsection shall be credited to an account to be used for the maintenance and
operations of the centennial museum that houses the mining and mineral museum.
Sec. 82. Section 41-821, Arizona Revised Statutes, as amended by section 81 of this act, is amended to read:
41-821. Arizona historical society; powers; officers; duties of board of directors
A. the Arizona historical society is established.
B. Subject to limitations imposed by law, the society may purchase, receive, hold, lease and sell property, real and personal, for the benefit of this state and use of the society. The society may solicit private monetary donations for program activities.
C. The society shall have a president, a treasurer and other officers who are elected by the members of the society at times and by methods the bylaws of the society prescribe. Each member of the board of directors shall have knowledge, competence, experience and interest in the fields related to the preservation and promotion of Arizona history and be a member of the society or become a member of the society before senate confirmation. The governor shall appoint the members pursuant to section 38‑211 for a term of four years. The board of directors may designate from among its members an executive committee with authority to act in place of the board of directors and in accordance with directions the board of directors may give when the board of directors is not in session.
D. The board of directors is established consisting of the following members who are appointed pursuant to subsection C of this section:
1. One member from each county.
2. One member who is recommended by each of the designated historical organizations as prescribed by subsection I of this section.
3. Five members of the public.
E. The president shall preside at meetings of the society and of the board of directors. Each member of the board of directors is entitled to only one vote. The board of directors may conduct meetings telephonically.
F. The treasurer shall have custody of the monies of the society, other than legislative appropriations. The treasurer shall hold the monies of the society deposited in trust for the society's use and for the benefit of this state and shall disburse them only as prescribed by law and the bylaws of the society.
G. The board of directors shall hold in trust for this state and administer for the benefit of this state and use of the society all property acquired by the society.
H. All expenditures of legislative appropriations to the society shall be made on claims that are duly itemized, verified and approved by the executive director of the society. The executive director of the society shall present and file claims for payment with the director of the department of administration. The director of the department of administration shall draw the warrant on the state treasurer. The society may expend nonappropriated private funds related to program activities.
I. The board of directors shall annually designate one or more historical organizations within each county of this state that are incorporated as nonprofit organizations and that are deemed to have a functioning program of historical value based on criteria established by the board of directors. The board of directors may organize chapters made up of groups of its members who have a common interest in a geographical area of this state or a common interest in a field of history, may provide for the governance of these chapters and may grant to any chapter the power to exercise authority of the society as the board of directors may determine.
J. The board of directors, subject to legislative appropriation, may contract with certified historical organizations for services to be performed for the benefit of this state. The contracts shall be prepared by the Arizona historical society. The board of directors shall annually review the contracts to ensure fulfillment of their provisions.
K. Subject to chapter 4, article 4 of this title, the board of directors may employ an executive director and may employ or authorize the employment of other employees it considers appropriate to carry out the functions of the society. The executive director and all other employees shall have duties and exercise authority as may be prescribed by the board of directors or by the executive director acting under the direction of the board of directors.
L. The board may operate a program for the establishment and maintenance of historical markers at various locations in this state.
M. In cooperation with the advisory council established by section 41‑827.01, the board shall operate and maintain the centennial museum that houses the mining and mineral museum and may engage in other activities related to the museum as determined by the board or the executive director. Monies received pursuant to this subsection shall be credited to an account to be used for the maintenance and operations of the centennial museum that houses the mining and mineral museum.
Sec. 83. Repeal
Section 41-827, Arizona Revised Statutes, is repealed.
Sec. 84. Title 41, chapter 4.1, article 1, Arizona Revised Statutes, is amended by adding a new section 41-827, to read:
41-827. Centennial museum; mining and mineral museum; donations
A. The Arizona historical society shall operate and maintain the centennial museum that houses the mining and mineral museum for the following purposes and with the following authority:
1. To promote the recognition and celebration of the historical, cultural, economic and social contributions to this state made by the five C's of cattle, copper, cotton, climate and citrus for the observance of the centennial of Arizona as a state.
2. To maintain the mining and mineral museum as the state depository for collecting, cataloging and displaying mining artifacts and specimens of various ores, gemstones, lapidary materials and other valuable mineral specimens.
3. To apply for and accept grants, donations, gifts, bequests of legacies of real or personal property and any other contribution, financial or otherwise, for use in accordance with the direction of the donor or, in the absence of an express direction, to be disposed of as prescribed by the board consistent with this article. Monies received pursuant to this paragraph shall be deposited in a separate account of the museum for the purposes of the museum.
4. To accept from the federal or state government, any local government or any of their agencies restricted and unrestricted monies made available to this state for the purposes of this article.
5. To establish and collect entrance fees to the museum for persons who are at least eighteen years of age.
6. To operate a retail gift shop, including the acquisition, purchase and resale of mineral specimens and mineral-related items.
7. To authorize the director to employ a curator for the museum. The curator shall possess knowledge or experience in mineral collections or shall have other museum experience.
8. To operate educational programming for the museum.
9. To accept the services of volunteers and provide oversight for their activities.
B. The Arizona historical society shall maintain the items, artifacts and other inventory received for display or storage, including equipment and outdoor displays, and may not sell or otherwise dispose of materials received for the centennial museum or the mining and mineral museum.
Sec. 85. Section 27‑111, Arizona Revised Statutes, is transferred and renumbered for placement in title 41, chapter 4.1, article 1, Arizona Revised Statutes, as section 41-827.01 and, as so renumbered, is amended to read:
41‑827.01. Centennial and mining and mineral museum advisory council; membership; duties; terms; compensation
A. The centennial and mining, and mineral and natural resources educational museum advisory council is established consisting of the following members who, except for the members designated pursuant to paragraphs 1, 9 and 10 2 of this subsection, are appointed by the governor:
1. The executive director of the Arizona historical society or the director's designee.
1. 2. The state geologist or the state geologist's designee.
2. 3. One member Two members representing the livestock industry.
3. 4. Two members
representing the mining industry.
4. 5. One member Two members representing the
agriculture industry.
5. 6. One member Two members representing the tourism industry and other
climate-related industries.
6. 7. One member Two members representing the timber specialty
crops industry.
7. 8. One member who
is knowledgeable in gems and minerals a natural resources education professional.
9. One member representing a natural resources foundation.
8. 10. Two members representing the public.
9. One member of the house of representatives who is appointed by the speaker of the house of representatives.
10. One member of the senate who is appointed by the president of the senate.
B. The advisory council shall:
1. Select a chairperson and vice-chairperson from among its members.
2. Hold regular meetings and additional meetings at the call of the chairperson or a majority of its members.
3. Provide oversight and advice to the state geologist director of the Arizona historical society regarding the centennial museum that houses the mining, and mineral and natural resources educational museum and assist in promoting the mission of the centennial museum. The state geologist director shall accept the recommendations of the advisory council if the state geologist director finds them to be practicable and in the best interest of the mining, mineral and natural resources educational museum.
4. Establish a subcommittee to provide assistance and advice in the areas of educational programming, the hiring and retention of a curator and oversight of mineral collections. The advisory council may establish subcommittees to act in an advisory capacity on other matters relevant to the mining, mineral and natural resources educational museum and the advisory council's duties.
C. The initial members appointed pursuant to subsection A, paragraphs 2, 3, 4, 5, 6 and 7 of this section 3 through 10 shall assign themselves by lot to three, four and five year terms of office. All subsequent members serve four‑year terms of office. A member may continue to serve until the member's successor is appointed and assumes office.
D. Members of the advisory council are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. The advisory council is a public body for purposes of title 38, chapter 3, article 3.1."
Renumber to conform
Page 85, strike line 41
Page 86, strike line 8
Line 37, after "41‑2148" strike the period insert ", 41‑2152, 41‑2172,"
Page 88, line 14, strike "deputy"; strike "of the office of manufactured housing"
Page 89, between lines 19 and 20, insert:
"26. "office" means the office of manufactured housing within the department."
Renumber to conform
Page 93, line 32, strike "deputy"; strike "of the office of manufactured housing"
Page 95, strike lines 22 through 40, insert:
"Sec. 95. Section 41-4024, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
41-4024. Budget; disposition of revenues
A. The deputy director shall annually prepare and submit a budget estimate and appropriation request for the department pursuant to title 35, chapter 1.
B. At least once each week the deputy director shall deposit, pursuant to sections 35‑146 and 35‑147, all monies received by the department pursuant to this chapter article in the state general fund.
Sec. 96. Section 41-4025, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
41-4025. Qualifications and requirements for license
A. A manufacturer, dealer, broker, salesperson or installer license shall be issued by the deputy director.
B. The deputy director shall:
1. Classify and qualify applicants for a license.
2. Conduct such investigations as the deputy director deems necessary.
3. Establish and administer written examinations for the applicable class license.
C. The deputy director may establish experience requirements for installers of manufactured homes, mobile homes and accessory structures.
D. To obtain a license pursuant to this article, the applicant shall submit to the deputy director a notarized application on forms prescribed by the office together with the required license fee. Such application shall contain the following information:
1. A designation of the classification of license sought by the applicant.
2. The name, birth date and address of an individual applicant.
3. If the applicant is a partnership, the name, birth date and address of all partners with a designation of any limited partners.
4. If the applicant is a corporation, association or other organization, the names, birth dates and addresses of the president, vice‑president, secretary and treasurer.
5. For all licenses, except those for salespersons, the name, birth date and address of the qualifying party. The qualifying party must reside within the state of the principal place of the licensee's business and shall not act in the capacity of a qualifying party for more than one license in the same classification.
6. If the applicant is a corporation, evidence that the corporation is in good standing with the Arizona corporation commission.
7. Whether the owner, if the applicant is a sole proprietorship, all partners, if the applicant is a partnership, all officers, if the applicant is a corporation or other type of association, the general partner, if the applicant is a limited partnership, or the individual, if the applicant is a salesperson, has ever been charged or convicted of a felony, or has ever received an adverse final decision in a civil action alleging fraud or misrepresentation, and, if so, the nature of the action and the final disposition of the case.
8. For corporations, the name and address of a statutory agent appointed by the licensee on whom legal notices, summonses or other processes may be served, which service shall be deemed personal service upon on the licensee.
9. If it is an application for a salesperson's license, the applicant shall designate an employing dealer or broker and the application shall include the signature of the qualifying party or the qualifying party's designee.
10. Other information as the deputy director may deem necessary.
E. Prior to the issuance of any license pursuant to this article, the owner, if the applicant is a sole proprietorship, all partners, if the applicant is a partnership, the general partner, if the applicant is a limited partnership, the president, vice‑president, secretary, and treasurer, if the applicant is a corporation or other type of association, the individual, if the applicant is a salesperson, and the qualifying party shall be of good character and reputation and shall submit a fingerprint card for background analysis. Lack of good character and reputation may be established by showing that such person has committed any act which, if committed by any licensee, would be grounds for suspension or revocation of such license.
F. To obtain a license pursuant to this article, a person shall not have had a license refused or revoked within one year prior to the date of the application nor have engaged in the business without first having been licensed nor shall a person act as a licensee between the filing of the application and actual issuance of the license. As used in For the purposes of this subsection, "person" means an applicant, an individual, a qualifying party, any partner of a partnership or any officer, director, qualifying party or owner of forty per cent percent or more of the stock or beneficial interest of a corporation.
G. Prior to issuance of a dealer, broker or installer license, the qualifying party, in addition to meeting the requirements provided in subsection D of this section, shall successfully show, by written examination within three attempts, qualification in the kind of work or business in which the applicant proposes to engage.
H. No license shall be issued to a minor or to any partnership in which one of the partners is a minor.
I. Every salesperson who holds an active license shall maintain on file with the office a current residence address and shall notify the office within five working days of any change of address, of any discontinued employment, and where, if anywhere, the salesperson is currently working.
J. The license of a salesperson who is no longer employed by the dealer of record is deemed inactive, and the salesperson shall turn in the license to the office until the salesperson is employed by another dealer and a written notification of the change has been received by the office. On notification, the office shall return the license to the salesperson."
Renumber to conform
Page 95, line 44, strike "deputy"
Page 96, lines 1 and 3, strike "deputy"
Line 22, strike the first and second "deputy"
Lines 39, 41, 42 and 43, strike "deputy"
Page 97, line 11, strike "deputy"
Page 98, lines 1, 2, 5, 8, 12 and 19, strike "deputy"
Between lines 20 and 21, insert:
"Sec. 99. Section 41-4029, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
41-4029. Bonds and cash deposits; requirements; fund
A. Before granting an original license, the deputy director shall require of the applicant, except an applicant for salesperson or broker of manufactured homes, mobile homes or factory‑built buildings designed for use as residential buildings, a surety bond in a form acceptable to the deputy director or a cash deposit pursuant to this section. A separate bond or cash deposit shall be required for each branch location of any licensed manufacturer or installer. No license shall be renewed unless the applicant's surety bond or cash deposit is in full force and effect. A change of location of a licensee's principal place of business requires a rider or endorsement to the existing bond and payment of the administrative function fee. The rider or endorsement shall indicate the new location and acceptance of claims for the previous location.
B. The bonds or cash deposit shall be in amounts prescribed by the board.
C. The surety bonds shall be executed by the applicant as principal with a corporation duly authorized to transact surety business in this state. Evidence of a surety bond shall be submitted to the deputy director in a form prescribed by the deputy director. The applicant may in the alternative establish a cash deposit in the amount of the bond with the state treasurer pursuant to the rules adopted by the deputy director. The bond funds shall be deposited, pursuant to sections 35‑146 and 35‑147, in a special account to be known as the consumer recovery fund. 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. Such cash deposits may be withdrawn, if there are no outstanding claims against them, two years after the termination of the license in connection with which the cash is deposited. The cash deposit may be withdrawn two years after the filing of a commercial surety bond as a replacement to the cash deposit.
D. The bond or deposit required by this section shall be in favor of the state for the benefit of any person covered by this subsection. The bond or deposit shall be subject to claims by:
1. Any consumer of a unit regulated by this chapter who enters into an agreement with any licensee, except a salesperson or broker of manufactured homes, mobile homes or factory‑built buildings designed for use as residential buildings, and is damaged by the failure of the principal to perform a sales or installation agreement or to perform repairs under a warranty.
2. The deputy director, if the principal fails to pay any of the fees or costs which the principal owes the office.
E. Any person claiming against the bond or deposit, except the department, may maintain an action against the principal and the surety. Such principal's bond or deposit may be sued upon on in successive actions until the full amount is exhausted. No suit may be commenced on the bond or deposit after the expiration of two years after the date of sale or installation of the unit, whichever is later, on which the suit is based, except that the time for purposes of the claim for fraud shall be measured pursuant to section 12‑543.
F. The surety bond or deposit shall be continuous in form and shall contain the condition that the total aggregate liability of the surety or depository for all claims shall be limited to the face amount of the bond or depository irrespective of the number of years the bond or depository is in force. If the corporate surety desires to make payment without awaiting court action, the amount of the bond filed shall be reduced to the extent of any payment or payments made by the corporate surety in good faith. Any such payments shall be based on priority of written claims received by the corporate surety prior to court action. The surety bond or depository shall be continuous as long as the corporate surety or the depositor maintains the face amount of the bond or deposit. Failure to maintain the face amount of the bond or deposit constitutes a suspension of such license until the face amount of the bond or deposit is restored.
G. The corporate surety shall notify the deputy director of the intent of the principal to cancel the bond and of any monies paid from the bond. Upon On receipt by the deputy director of notice to cancel a bond by any corporate surety, the deputy director shall immediately notify the licensee who is the principal on the bond of the effective date of cancellation of the bond and that the licensee shall furnish a like bond or make cash deposit on or before the effective date of cancellation or the license shall be suspended. Notice to the licensee shall be by certified mail postage fully prepaid, addressed to the licensee's last address of record with the office. The license shall be suspended on the date the bond is canceled unless a replacement bond or cash deposit in lieu of a bond is on file with the deputy director.
H. The director and deputy director shall have no personal liability for the performance of duties relating to the bond and cash deposit requirements of this section if such duties are performed in good faith.
Sec. 100. Section 41-4030, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
41-4030. Trust and escrow requirements; rules; exemptions
A. Beginning July 1, 2012, each dealer or broker licensed pursuant to this article shall establish an independent escrow account with an independent financial institution or escrow agent authorized to handle such an account in this state as prescribed by title 6, chapter 7 or 8, for each transaction involving:
1. A new manufactured home.
2. A new factory-built building designed for use as a residential dwelling.
3. A manufactured home, mobile home or factory-built building designed for use as a residential dwelling that is previously owned and that has a purchase price of fifty thousand dollars or more.
B. For the purposes of subsection A of this section, a financial institution or escrow agent is independent if the individual or entity is not controlled by the licensee, a family member of the licensee or a business affiliated with the licensee and the licensee, family member or business affiliate does not have a majority interest in the financial institution or escrow agent.
C. The owner of a mobile home park who also is or owns a dealership licensed pursuant to this article to sell new units may sell a new manufactured home or a new factory-built building designed for use as a residential dwelling as a licensee without complying with subsection A of this section if all of the following apply:
1. The home will be sited in a mobile home park that is owned by the park owner.
2. At the time of the sale, the park owner has on file at the office of manufactured housing the name and address of all mobile home parks owned by the park owner, the name, address and license number of the licensed dealership and documentation showing to the satisfaction of the office of manufactured housing that the park owner either holds the license, owns a majority interest in the license or is controlled by an entity that holds a controlling interest in the license.
3. At the time of the sale, the licensed dealership has posted with the office of manufactured housing a dealer bond in an amount of at least one hundred thousand dollars in a form satisfactory to the office of manufactured housing covering sales by parks sharing common control.
D. Each dealer or broker who is licensed pursuant to this article and who sells manufactured homes, mobile homes or factory‑built buildings designed for use as residential dwellings or a manufactured home, mobile home or factory-built building designed for use as a residential dwelling that is previously owned and that has a purchase price of less than fifty thousand dollars shall maintain a trust account or an escrow account with a financial institution or escrow agent located in this state and shall deposit all earnest money received for the sale of manufactured homes, mobile homes or factory‑built buildings designed for use as residential dwellings in such account. The department shall conduct an audit of each dealer's or broker's trust or escrow account, including any transactions with an independent escrow account, at least once every two years. Beginning July 1, 2012, a purchaser under this subsection may request that the dealer or broker establish an independent escrow account and if such a request is made in writing no later than the time the purchase contract is signed, and the seller consents, the dealer or broker shall comply with this subsection by complying with subsection A of this section. A licensee handling a transaction under this subsection shall disclose to the purchaser, in writing and before or at the time the purchaser signs the purchase contract, that the purchaser may request in writing the use of an independent escrow account, and that the transaction will otherwise be handled through a trust account controlled by the licensee.
E. All dealers or brokers shall notify the deputy director in writing when the trust or escrow account has been established by indicating the name and number of the account and the name and location of the financial institution used.
F. The dealer or broker, in writing, shall authorize the depository to release any and all information relative to trust or escrow accounts to the deputy director or the deputy director's agent, employee or deputy.
G. The dealer's or broker's earnest money receipt book shall reflect all earnest monies received and shall be at the minimum in duplicate and consecutively numbered.
H. All earnest monies shall be deposited in the escrow account or trust fund account no later than the close of the second banking business day after receipt.
I. The terms or instructions for any escrow account opened under subsection A or D of this section are deemed to be and enforceable as part of the purchase contract. All parties to the purchase contract and the licensee shall sign the terms and instructions. If practicable, the escrow terms or instructions shall be included in the purchase contract or stated in an addendum to the purchase contract. The licensee shall provide a copy of the purchase contract to the escrow agent even if the escrow terms or instructions are contained in a separate document. The licensee shall promptly provide the escrow account information to all parties to the purchase contract once the account is opened.
J. At a minimum, the escrow terms or instructions shall contain:
1. Identification of the escrow agent with information containing at least the name, address and telephone number of the agent.
2. All conditions or requirements that affect or pertain to closing the escrow account and disbursement of the monies in the account.
3. Any conditions or requirements where monies are to be disbursed from the escrow account in advance of the account being closed.
4. Any conditions or requirements where additional monies or documents must be deposited with an escrow agent after the escrow account is opened.
K. A dealer or broker may deposit and maintain up to two hundred dollars in the trust account to offset service charges that may be assessed by the financial institutions.
L. Every deposit into a trust account shall be made with a deposit slip that identifies each transaction as follows:
1. The amount of deposit.
2. The names of all parties involved in the transaction.
All receipts for monies deposited in escrow shall be made accountable by containing the same information.
M. A complete record shall be retained by the dealer's or broker's office of all earnest monies received. The record shall contain provisions for entering:
1. The amount received.
2. From whom the money was received.
3. The date of receipt.
4. The place of deposit.
5. The date of deposit.
6. The daily balance of the trust fund account deposit of each transaction.
7. When the transaction has been completed.
8. The date and payment for all goods and services the dealer has contracted to provide.
N. All earnest money deposited in the trust or escrow account shall be held in such account until one of the following is completed:
1. An application for title transfer has been made.
2. The transaction involved is consummated or terminated and a complete accounting is made.
O. On completion pursuant to subsection N of this section, the earnest money deposit shall be conveyed to the lending institution or the dealer, broker, purchaser, seller, manufacturer or lienholder, whichever is applicable.
P. The dealer or broker shall retain true copies of the purchase agreements, earnest money receipts, depository receipts, evidence of delivery documents and evidence of consummation of sale or termination of sale for a period of three years.
Q. The deposits referred to in this section shall not be used for any purpose other than the transaction for which they were provided.
R. Notwithstanding any other provision of this section and except that this subsection does not apply to an independent escrow account established pursuant to subsection A of this section, before an event listed under subsection N of this section is completed, a licensed dealer may release trust account earnest monies to pay for flooring or inventory for the unit that is the subject of the transaction for which the earnest monies were provided. Either a licensed dealer or broker may release trust account earnest monies to pay other lawfully imposed interim loan amounts and charges imposed by a financial institution or other bona fide lender on the unit that is the subject of the transaction for which the earnest monies were provided. The dealer or broker shall not make any payment out of trust account monies pursuant to this subsection unless done in compliance with all of the following:
1. The payment is made no more than ten business days before the completion date pursuant to subsection N of this section.
2. The payment is made directly to the financial institution or other bona fide lender.
3. The payment is recorded in the dealer's or broker's records under this section and documented by a receipt, a payment record or any other evidence from the financial institution or lender.
4. If the transaction is terminated, the dealer or broker replaces the amount of the payment in the trust account within three business days after receiving written notification of the termination.
This subsection does not affect any other rights or obligations between the purchaser and the licensed dealer or broker.
S. The board shall adopt separate rules for dealer trust and escrow accounts and broker trust and escrow accounts. At a minimum, these rules shall contain trust and escrow account requirements for the following:
1. Record keeping recordkeeping.
2. Administration.
3. Service fees or charges.
4. Deposits.
5. Advances or payments out of trust and escrow accounts.
6. Closing or termination of sales transactions.
7. Auditing or investigation of trust or escrow account complaints.
T. This section shall not apply to a real estate broker or salesperson licensed pursuant to section 32‑2122 and pursuant to this article when the unit is sold in conjunction with real estate."
Renumber to conform
Page 98, lines 30 and 31, strike "deputy"
Page 99, lines 3 and 7, strike "deputy"
Page 101, line 33, strike the first and second "deputy"
Page 105, lines 7, 17, 28, 29 and 43, strike "deputy"
Page 106, between lines 8 and 9, insert:
"Sec. 113. Section 41-4046, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
41-4046. Enforcement powers of director and office personnel; civil and administrative penalties
A. The deputy director, personnel of the office and personnel under contract to the office, on presentation of credentials, shall be permitted to enter and inspect premises where units regulated by this chapter are manufactured, sold or installed as the deputy director may deem appropriate to determine if any person has violated this chapter. No person licensed by the office may refuse to admit the deputy director or the personnel of the office or personnel under contract if the proper credentials are presented and the inspection is made at a reasonable time.
B. If the deputy director has reasonable cause to believe a unit is being offered for sale by a party required to be licensed but not licensed as a dealer or broker by the office or is in violation of this chapter, or the rules, regulations or standards adopted pursuant to this chapter, the office shall serve on the manufacturer, dealer, broker or installer a notice of violation, which may be affixed to the unit in violation and, if affixed to the unit, shall not be removed by anyone without the authorization of the office.
C. If there is reasonable cause to believe, from information furnished to the deputy director or from an investigation instituted by the deputy director, that any person is engaged in a business regulated by this article without being licensed as required by law, the deputy director shall issue and serve on the person, by certified mail, a cease and desist order requiring the person immediately, on receipt of the notice, to cease and desist from engaging in such business. On failure of such person to comply with the order, the deputy director shall file an action in the superior court in Maricopa county restraining and enjoining the person from engaging in such business. The court in the action shall proceed as in other actions for injunctions.
D. If in the judgment of the deputy director any person has engaged, or is about to engage, in any acts or practices that constitute, or will constitute, a violation of this chapter, the rules, regulations or standards adopted pursuant to this chapter or an order issued pursuant to this chapter, the deputy director may make application to the appropriate court for an order enjoining such acts or practices. On a showing by the deputy director that such person has engaged in, or is about to engage in, any such acts or practices, an injunction, restraining order or such other order as may be appropriate shall be granted by such court without bond. On a showing by the deputy director that a licensee has wrongfully withdrawn, or is about to wrongfully withdraw, funds required to be held in the licensee's trust account, an injunction, restraining order or such other order as may be appropriate to prevent a licensee from wrongfully withdrawing trust account monies shall be granted by the court. On granting a permanent injunction, the court may impose a civil penalty not exceeding one thousand dollars for each violation.
E. In any investigation, proceeding or hearing that the deputy director may institute, conduct or hold under this article, the deputy director, or a representative designated by the deputy director, may administer oaths, certify to official acts, issue subpoenas for attendance of witnesses and production of books, papers and records and exercise the same powers in this regard as conferred on public officers by section 12‑2212.
F. After any hearing that the deputy director may institute, conduct or hold under this article, the deputy director or a representative designated by the deputy director may impose an administrative penalty in an amount of not to exceed one thousand dollars for each violation. All monies collected pursuant to this subsection shall be deposited in the state general fund.
G. Beginning July 1, 2012, the director or deputy director may refer to the attorney general or a county attorney for criminal or civil investigation the results of any investigation that indicate the existence of the elements of fraud, including investigative information regarding any person or entity that, although not a licensee under this article, has a business or other relationship to a licensee or to a manufactured home transaction under this article.
H. If an inspection reveals that a mobile home entering this state for sale or installation is in violation of this chapter, the office may order its use discontinued and the mobile home or any portion of the mobile home vacated. The order to vacate shall be served on the person occupying the mobile home and copies of the order shall be posted at or on each exit of the mobile home. The order to vacate shall include a reasonable period of time in which the violation can be corrected. A person shall not occupy or use a mobile home in violation of an order to vacate.
I. If construction, rebuilding or any other work is performed in violation of this chapter or any rule adopted pursuant to this chapter, the office may order the work stopped. The order to stop work shall be served on the person doing the work or on the person causing the work to be done. The person served with the order shall immediately cease the work until authorized by the office to continue."
Renumber to conform
Page 106, line 41, strike "deputy"
Page 107, line 42, strike "deputy"
Page 108, lines 5, 6, 19 and 23, strike "deputy"
Page 140, line 18, after the first "the" insert "commissioner of the state"; strike "commission" insert "department"
Page 142, line 36, after the first semicolon insert "Arizona geological survey;"
Line 37, after "quality" insert "; university of Arizona"
Line 38, after "by" strike remainder of line
Line 39, strike "Statutes, as amended by"
Line 40, strike "succeeds" insert "and the university of Arizona, as applicable, succeed"; strike "administrative" insert "authority,"
Line 41, after "survey" insert a period strike remainder of line
Strike line 42
Page 143, line 1, after "survey" strike remainder of line
Line 2, strike "conservation commission"
Line 3, after "quality" insert "and the university of Arizona, as applicable. The director of the department of administration shall determine and allocate the transfer, consistent with this act"
Line 8, after the period insert "The department of environmental quality may use these monies only for purposes relating to the oil and gas conservation commission."
Line 10, after "survey" strike remainder of line
Strike line 11
Line 12, strike "Statutes, relating to the oil and gas conservation commission"
Line 13, after "the" insert "respective administrative units of the"
Line 14, after "quality" insert "or with the university of Arizona, as applicable,"
Page 144, after line 7, insert:
"Sec. 132. Arizona historical society; succession; Arizona geological survey
A. As provided by this act, the Arizona geological survey succeeds to the authority, power, duties and obligations of the Arizona historical society with respect to the former mining and mineral museum.
B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the Arizona historical society with respect to the former mining and mineral museum in existence before the effective date of this act and now assumed by the Arizona geological survey.
C. The Arizona historical society shall provide a list of all mining and mineral museum inventory, including the location of the inventory, and assist in the transfer of all mining and mineral museum inventory to the Arizona geological survey.
Sec. 133. Arizona historical society; Arizona centennial special plate fund; prohibition; retroactivity
A. From and after April 30, 2016, the Arizona historical society may not encumber any monies deposited in the Arizona centennial special plate fund established by section 28‑2448, Arizona Revised Statutes, as amended by this act, for any purpose.
B. Notwithstanding section 131 of this act, this section is effective retroactively to from and after April 30, 2016.
Sec. 134. Report on mining, mineral and natural resources educational museum
The state geologist, in coordination with the mining, mineral and natural resources educational museum advisory council, shall submit a report to the governor, the president of the senate and the speaker of the house of representatives on or before December 31, 2018 and provide a copy of this report to the secretary of state regarding the operations of the mining, mineral and natural resources educational museum prescribed in section 27‑106, Arizona Revised Statutes, as amended by this act, including whether general fund monies are required for the continued maintenance and operations of the museum, information relating to excess specimens and recommendations on other beneficial uses of the mining, mineral and natural resources educational museum building.
Sec. 135. Terms of members of the mining, mineral and natural resources educational museum advisory council
Notwithstanding section 27‑111, Arizona Revised Statutes, as transferred, renumbered and amended by this act, a person who is serving as a member of the centennial and mining and mineral museum advisory council on the effective date of this act is eligible to continue to serve on the mining, mineral and natural resources educational museum advisory council until the expiration of the member's current term of office. All subsequent appointed members shall serve a four‑year term of office.
Sec. 136. Arizona historical society; transfer of monies
A. All unexpended and unencumbered monies remaining in the Arizona centennial special plate fund established by section 28-2448, Arizona Revised Statutes, as amended by this act, are transferred to the mining, mineral and natural resources educational museum account in the geological survey fund established by section 27-107, Arizona Revised Statutes, as amended by this act.
B. The sum of $428,300 and one FTE position are transferred from the Arizona historical society in fiscal year 2016-2017 to the geological survey fund established by section 27-107, Arizona Revised Statutes, as amended by this act, for use in operating the mining, mineral and natural resources educational museum.
C. All unexpended and unencumbered monies received by the Arizona historical society for the purposes of operating the former mining and mineral museum, the gift shop located in the former mining and mineral museum and any entrance fees collected for the former mining and mineral museum are transferred to the mining, mineral and natural resources educational museum account in the geological survey fund established by section 27‑107, Arizona Revised Statutes, as amended by this act.
Sec. 137. Arizona geological survey; intent; report
It is the intent of the legislature that the Arizona geological survey maintain the current level of service as prescribed in section 27-106, Arizona Revised Statutes, as amended by this act, with approximately fifteen FTE positions. On or before August 1, 2017, the university of Arizona shall submit to the joint legislative budget committee a report describing the Arizona geological survey services that were maintained. The Arizona geological survey shall remain in its current facility until adequate space has been obtained at the university of Arizona.
Sec. 138. Retroactivity
This act is effective retroactively to from and after June 30, 2016.
Sec. 139. Conditional enactment; notice
A. The following sections do not become effective if, on or before July 1, 2018, the Arizona geological survey has raised sufficient monies to refurbish and open a mining, mineral and natural resources educational museum at 1502 West Washington Street:
1. Section 27‑106, Arizona Revised Statutes, as amended by section 9 of this act.
2. Section 27‑107, Arizona Revised Statutes, as amended by section 11 of this act.
3. Section 28‑2448, Arizona Revised Statutes, as amended by section 23 of this act.
4. Section 32‑2117, Arizona Revised Statutes, as amended by section 29 of this act.
5. Section 33‑423, Arizona Revised Statutes, as amended by section 37 of this act.
6. Section 41‑821, Arizona Revised Statutes, as amended by section 82 of this act.
7. Section 41‑827, Arizona Revised Statutes, as added by this act.
8. Section 41‑827.01, Arizona Revised Statutes, as transferred, renumbered and amended by this act.
B. The president of the university of Arizona shall notify in writing the director of the Arizona legislative council on or before July 15, 2018 either:
1. Of the date on which the condition was met.
2. That the condition was not met."
Amend title to conform