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HB 2146: contracts; licensure requirements; waiver; applicability

PRIME SPONSOR: Representative Rivero, LD 21

BILL STATUS: Commerce DPA 5-4-0-0

                                Regulatory Affairs

 

Overview

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteAllows parties of a private contract to waive any lawful requirements for licensure, certification, registration, or authorization for actions subject to the contract.

History

Pursuant to A.R.S. § 32-4401, a non-health profession or occupation may not be regulated except for the exclusive purpose of protecting the public interest.  The law further asserts that a non-health profession or occupation must be regulated by the state if all of the following apply:

1.       An unregulated practice can clearly harm or endanger the public health, safety or welfare;

2.       The actual or anticipated public benefit of the regulation clearly exceeds the costs imposed on consumers, businesses and individuals;

3.       The public needs and can reasonably be expected to benefit from an assurance of initial and continuing professional ability; and

4.       The public cannot be effectively protected by private certification or other alternatives.

Provisions

1.       Permits parties of a private contract to agree to waive any state or local laws relating to licensure, certification, registration or other authorization to act for the purposes of the contract provided defined criteria are met. (Sec. 1)

2.       Allows the parties to amend the contract to retroactively waive additional licensure, certification, registration or other authorization to act laws. (Sec. 1)

3.       Prohibits the licensure, certification, registration, or authorization to act of the following from being waived:

a.       Any health profession regulated by this state;

b.       Restrictions relating to consumer lender loans finance charges;

c.        Any regulated practice of law;

d.       Legal document preparers;

e.       Licensed fiduciaries;

f.         Certified defensive driving schools;

g.       Certified reporters;

h.       Confidential intermediaries; and

i.         Restrictions under Title 20 (Insurance). (Sec. 1)

Amendments

Committee on Commerce

1.       Adds engineers or architects, any real estate profession, and mortgage brokers and bankers, commercial mortgage bankers, or loan originators to the list of licenses or certifications that cannot be waived.

2.       Clarifies any requirements imposed by, rather than restrictions in, Title 20 cannot be waived.

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6.       Fifty-fourth Legislature                       HB 2146

7.       First Regular Session                            Version 2: Regulatory Affairs

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