Bill Number: H.B. 2146
Mesnard
Floor Amendment
Reference
to: House engrossed bill
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Exempts private parties
(parties) from specified licensure, certification, registration and
authorization to act laws, subject to specific conditions, rather than allowing
the parties to contract to waive those laws; but, specifies that the parties
must agree to be exempt by contract.
2. Removes city, town and
county laws from being able to be waived by parties.
3. Decreases, from
$250,000 to $150,000, the total aggregate profit threshold that the parties may
not exceed for the services provided in the contract in order to be exempt from
specified laws.
4. Specifies that the
subject of the contract may not exceed $6,000 per transaction, rather than per
year, in order for the parties to be exempt from specified laws.
5. Provides that the
following Arizona Revised Statutes are those that the parties may be exempt
from, if all other conditions are met:
a) Title 6, Banks and
Financial Institutions, except laws contained in:
i. Chapter 9, mortgage
brokers, mortgage bankers and loan originators;
ii. Arizona Revised
Statutes § 6-114;
iii. Arizona Revised
Statutes § 6-632;
iv. Arizona Revised
Statutes § 6-635; and
v. Arizona Revised
Statutes § 6-637;
b) Title 9, Cities and
Towns;
c) Title 10, Corporations
and Associations;
d) Title 11, Counties;
e) Title 23, Labor;
f) Title 32, Chapter 9,
collection agencies, Chapter 30, private postsecondary education, and Chapter
46, art therapists; and
g) Title 44, Trade and
Commerce, except sales finance companies that are licensed pursuant to Chapter
2.1 and parties subject to telephone solicitation laws.
6. Exempts a person from
the offense of failing to procure or exhibit a business license, if the person
is otherwise exempt from business license requirements based on the provisions
of the bill.
7. Allows a person, when
notified by a state agency (agency) that the person is in violation of a state
law relating to licensure, certification, registration or other authorization
to act, to be able to do one of the following within six months of
notification:
a) to become licensed,
certified or registered or receive another authorization to act; or
b) to amend the contract
relating to the applicable law in order for the parties to agree to be exempt
from the law.
8. Allows a person until
July 1 of the following year, if the annual profits related to the services
provided in the contract exceed $150,000, to do one of the following before an agency
may commence or take disciplinary action against a party to the contract:
a) amend the contract or;
b) become licensed,
certified or registered or receive another authority to act.
9. Prevents an agency from
commencing or taking disciplinary action against a party in the:
a) six-month period in
which the party is working to either become licensed, certified or registered
or amend the contract to exempt the party from the state law; or
b) time-period after the
party has submitted an application to become licensed, certified or registered
and before the agency has approved or denied the application.
10. Deems a violation of the bill as an
unlawful practice under the Consumer Fraud Act and allows the Attorney General
to investigate and take appropriate action as prescribed by statute.
Page 1, line
4, strike "waiver of" insert "exemption from"
Line 5,
strike "Waiver of" insert "Exemption from"
Line 6,
strike "; applicability"
Line 7,
after the comma strike remainder of line
Strike line
8
Line 9,
strike "county laws" insert "if the requirements prescribed by subsection B of this section are
met, a person is exempt from state law"
Line 10,
after "act" strike remainder of line
Strike line
11, insert "under the following:"
Between lines 11 and 12, insert:
"1. Title 6, not including title 6, chapter
9, except that a party is not exempt from the requirements prescribed in
section 6‑114, 6‑632, 6‑635 or 6‑637.
2. Title
9.
3. Title
10.
4. Title
11.
5. Title
23.
6. Title
32, chapter 9, 30 or 46.
7. This
title, except that this paragraph does not apply to a sales finance company
that is licensed pursuant to chapter 2.1 of this title or a party that is
subject to chapter 9, article 6 of this title.
B. Subsection
A of this section applies only if all of the following apply:
1. The
person is a party to a contract between two or more private parties."
Renumber to
conform
Page 1, line
14, strike "that are waived" insert "from which the person is exempt"
Lines 16 and
17, strike "waiver" insert "exemption"
Line 19,
strike "year" insert "transaction"
Line 20,
strike "$250,000" insert "$150,000"
Line 21,
strike "any one party" insert "all parties"
Strike lines
23 through 41
Strike page
2, insert:
"C. A person is not guilty of failure to procure or exhibit
a business license pursuant to section 13‑3706 If the person is exempt
from the business license requirement under this section.
D. If
a state agency notifies a person described in subsection A of this section that
the person is in violation of a state law relating to licensure, certification
or registration or other authorization to act, within six months after
receiving the notice the person shall do either of the following:
1. Become
licensed, certified or registered or receive another authorization to act, as
applicable.
2. Amend
the contract described in subsection B of this section to exempt the person
from the state law relating to licensure, certification or registration or
other authorization to act.
E. If
the total aggregate profit related to services provided in a contract pursuant
to subsection B of this section exceeds $150,000, the parties may agree to
amend the contract to comply with state law relating to licensure,
certification or registration or other authorization to act, as applicable.
after exceeding $150,000 in total aggregate profit, the parties shall have
until July 1 of the following calendar year to amend the contract or become
licensed, certified, or registered or to receive another authority to act
before the state agency may commence or take disciplinary action against any
party to the contract.
F. If a state agency notifies a
party to a contract of a violation of a state law pursuant to subsection D of
this section, the state agency may not commence or take disciplinary action
against the party during either of the following time periods:
1. The six-month period in which the party
is working either to become licensed, certified or registered or to receive
another authorization to act, as applicable, or to amend the contract to exempt
the party from the state law relating to licensure, certification or
registration or the other authorization to act.
2. The
time period after the party has submitted an application to become licensed,
certified or registered or to receive another authorization to act and before
the state agency has approved or denied the application.
G. A
violation of this section is an unlawful practice pursuant to section 44‑1522.
The attorney general may investigate and take appropriate action as prescribed
by chapter 10, article 7 of this title."
Amend title to conform