ARIZONA HOUSE OF REPRESENTATIVES

HB 2146: contracts; licensure requirements; waiver; applicability

NOW: contracts; licensure requirements; exemption

PRIME SPONSOR: Representative Rivero, LD 21

BILL STATUS: Transmitted to Governor

Overview

Exempts a person from state laws relating to licensure, certification, registration, or authorization to act provided certain requirements are met.

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. Exempts a person from the following state laws relating to licensure, certification, registration, or authorization to act, rather than allowing parties to contractually agree to waive any state or local laws, provided certain requirements are met:

a. Title 6 (Banking and Financial Institutions);

i. The exemption does not apply to:

Ø Chapter 9 mortgage brokers, mortgage bankers and loan originator,

Ø § 6-114 restrictions relating to balloon payments,

Ø § 6-632 restrictions relating to finance charges on consumer loans,

Ø § 6-635 restrictions relating to allowable fees on consumer loans, and

Ø § 6-637 restrictions relating to term payments on consumer loans.

b. Title 9 (Cities & Towns);

c. Title 10 (Corporations and Associations);

d. Title 11 (Counties);

e. Title 23 (Labor);

f. Title 32 (Professions and Occupations);

i. Only applies to:

Ø Chapter 9 collections agencies,

Ø Chapter 30 private postsecondary education, and

Ø Chapter 46 art therapists.

g. Title 44 (Trade and Commerce);

i. The exemption does not apply to:

Ø Chapter 2.1 sales finance company (title lenders), and

Ø Chapter 9, Article 6 restrictions on telephone solicitations. (Sec. 1)

2. Exempts a person from the offense of failing to procure or exhibit a business license, if the person is otherwise exempt from the business license requirements. (Sec. 1)

3. Instructs a person, when notified by a state agency that the person is in violation of a specified state law relating to licensure, certification, registration or other authorization to act, to do one of the following within six months of notification:

a. Become licensed, certified or registered or receive another authorization to act; or

b. Amend the contract to exempt the person from the applicable state law. (Sec. 1)

4. Allows a party 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. (Sec. 1)

5. Prevents an agency from commencing or taking disciplinary action against the party during either of the following time periods:

a. The 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. The 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. (Sec. 1)

6. Deems a violation relating to the exemption as an unlawful practice under the Consumer Fraud Act and allows the Attorney General to investigate and take appropriate action as prescribed by law. (Sec. 1)

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10. Fifty-fourth Legislature                       HB 2146

11. First Regular Session                            Version 5: Transmitted

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