The Arizona State Legislature – A Review of House Bills Feb. 17, 2022

Arizona State Capitol - Mario Recchia

I try to provide a quick overview of bills introduced at the State Capitol a couple times a legislative session. These are not all the bills. They are the bills I think you might find the most interesting.

This year there were more bills than usual so this post is just the House bills. There were so many water and election bills, I tried to pick those I thought had the biggest chance of getting out of committee. Watch for my summary of the Senate Bills coming soon.

Here are the House Bills I think you might find most interesting. The bill numbers link to the legislation so you can read it and decide if it is legislation you wish to comment on to your state legislator.

HB 2010 – first responder flags; homeowner’s associations
Adds first responder flags to the list of flags an HOA may not restrict for outdoor display. First responder flags may be for police, fire or paramedic/EMTs or be a combination of these.

HB 2012 – county improvement districts; formation
Currently county improvement districts (unincorporated areas) may be formed by the County Board of Supervisors if the petition requesting the district is signed by a majority of the people owning real property OR by 51% or more of the real property owners in the proposed district. This bill would change that to be a majority of the people owning real property AND by 51% or more of the real property owners in the proposed district.

HB 2034 – CTEDs; associate degrees
Allows a CTED to offer associate degrees.

HB 2037 – Strike Everything Amendment – expenditures; authority; water; wastewater
Allows counties to enter into agreements with federal, state and local governments and special taxing districts, for the management and distribution of federal funds for projects to increase water supply and availability.

HB 2041 – ballot fraud countermeasures; paper; ink
Mandates standards of paper and ink for paper ballots.

HB 2043 – employer liability; COVID-19 vaccine requirement
Holds an employer liable for damages if the employer denies a religious exemption, requires a person to receive the COVID-19 vaccine, and injury results. Outlines damages to be awarded must be the actual or statutory, whichever is greater. Allows for punitive damages to be awarded as well.

HB 2055 – Harquahala non-expansion area; groundwater transportation
Allows a public service corporation to transport groundwater from the Harquahala INA to an AMA if it holds a certificate of necessity and owns irrigatable land in the INA. City of Buckeye has registered some concerns with this bill.

Buckeye letter re Harquahala INA GoodmanWestMARCLetter 2.9.2022

HB 2057 – waters supply development fund; revisions
Completes the transition of the Water Infrastructure Finance Authority and Water Supply Development Revolving Fund to be under the Arizona Finance Authority (AFA). Finalizes provisions for the AFA to increase funding of qualified water projects from $100,000 to $250,000.

HB 2067 – county improvement districts; recreation; governance
Allows the County Board of Supervisors to create a separate governing board for recreational improvement districts. This applies to counties with a population of less than 125,000 people.

HB 2071 – early ballots; postmark date; receipt
Provides that an early ballot and affidavit mailed to the officer in charge of elections and postmarked on or before the 6th day before election day, and received no later than 5 days after election day is a valid ballot. Also provides that an early voter ballot and signed affidavit if not mailed, may be dropped of at a polling place or received by the officer in charge of elections by 7pm on election day to be a valid ballot.

HB 2086 – DHS; school immunizations; exclusions
Provides immunizations for COVID-19 or any variant are not required for school attendance. Immunization against Human Papillomavirus are not required for school attendance.

HB 2101 – electric energy; reliability; public policy
Public Power Entities (PPE) are directed to adopt consumer protection measures. Amends some provisions of the 1998 electric generation service competition law. Mandates PPEs establish an ombudsman program. Establishes an appeal system for rehearing of a PPE governing body’s final order. Allows electric cooperatives to collaborate with other entities. States a PPE does not include municipalities with less than 75,000 people.

HB 2103 – trademarks; service marks; trade names
Adds additional requirements to register a trademark or trade name.

HB 2104 – community property award; convicted spouse
Provides that a spouse making division of property payments to a convicted spouse may petition the court to modify or cancel the payments.

HB 2107 – emergency powers; business closure; repeal
Prohibits a mayor or board of supervisors from ordering the closure of businesses during a declared emergency.

HB 2109 – election celebration day
Provides that Election Celebration Day will be the day of the general election every other year. It is not a legal holiday.

HB 2122 – continuing high school; workforce training
Requires the State Board of Education to establish a continuing high school and workforce training program for adults. The program would issue a high school diploma and provide for industry recognized credentials. Provides funding at $7,700 per full time student per year.

HB 2123 – Strike Everything – adult workforce diploma program
Creates an Adult Workforce Diploma Program. The student must be at least 21 years old, a resident of Arizona and cannot have earned a high school diploma.

HB 2127 – fire suppression; assistance; private landowners
Provides the Dept. of Forestry and Fire Management (DFFM) may distribute emergency wildfire funds to private landowners.

HB 2130 – recreational users; property
States that recreational and educational users accept the risks of their activities and must exercise reasonable care. Landowners, easement holders, lessees, tenant managers or occupants on the land do not owe a duty of care to keep the land (private or public) safe or to warn of dangerous conditions on the land. Provides that any warning of dangerous conditions or failure to warn does not create any liability to the resident. States that an individual who uses the land of another for recreation or education is liable for any damage to the land, property or livestock the person may cause.

HB 2131 – Strike Everything – artificial grass ban prohibited; HOAs
States an HOA may not prohibit the installation of artificial grass on a member’s property if the HOA allows natural grass. This provision does not apply to communities with unique geological characteristics or vegetation that requires preservation by the HOA.

HB 2146 – data security breach; notification
Adds notification to Az Dept. of Homeland Security of security breach at a business that maintains unencrypted and unredacted computerized personal information.

HB 2151 – land division; acting in concert
Allows the county or Az Dept of Real Estate to deny a building permit or certificate of occupancy if a group has received notice, it is under investigation for attempting to circumvent the land division laws. Increases the penalty to a subdivider who sells or leases lots (includes fractional interest) without obtaining a public report from $5,000 to $10,000 per infraction. Amends the Affidavit of Disclosure.

HB 2152 – residential contractor’s recovery fund; eligibility
Modifies the criteria for an LLC to receive funds from the Residential Contractor’s Recovery Fund.

HB 2158 – homeowner’s associations’ political; community activity
Provides that an Association cannot prohibit the circulation of petitions on community property or restrict peaceful assembly on common elements of the community. Allows a member to organize to discuss Association business including board of director elections, recalls, revision of documents or other community business. Allow a member to invite a political or non-owner speaker to an assembly of members. Prohibits the Association from restricting posting of notices of informal meetings.

HB 2165 – housing department; licensure; fingerprinting; penalties
Requires applicants for licensing related to production, installation and sale of manufactured homes, mobile homes and factory built buildings to obtain a fingerprint clearance rather than a background check.

HB 2172 – real estate licensees; employers; compensation
Allows real estate licensees to receive compensation from an employer other than the employing broker if the employer holds a license, the licensee is the employer’s employee, the employer has the same employing broker as the licensee and the employer receives written permission from the employing broker to pay the licensee.

HB 2184 – appropriation; State Route 24; connector
Appropriates $15,000,000 from the general fund to ADOT for the purchase of right of ways in Pinal County for the SR-24 extension and to develop a connector route along the CAP canal alignment.

HB 2198 – employee termination; COVID-19 vaccine; compensation
States employees terminated for not receiving the COVID-19 vaccination as a condition of employment must receive severance compensation or reemployment at the same or similar position. Applies retroactively to Dec. 1, 2021.

HB 2231 – universities; water rights adjudication
Authorizes state universities to offer pro bono assistance to small landowners not represented by council for general stream adjudication.

HB 2234 – vacation rentals; short term rentals; enforcement
Caps the penalties local government may impose within a 12 month period. Allows a local government to require a vacation of short term rental owner maintain liability insurance of at least $500,000 or advertise and offer each rental through a hosting platform that provides that coverage. Permits DOR (Dept of Revenue) to suspend for 1 year the TPT license of a vacation or short term rental owner with 3 verified violations in the same 12 month period. Allows a local government to fine up to $1,000 per every 30 days a vacation or short term rental property owner fails to provide required contact information. Removes the limitation on types of ordinances a local government may adopt. Remove timeshare from the definition of vacation rental and short term rental.

HB 2243 – voter registration; state residency; cancellation
Requires a statement on the voter registration form stating if a voter permanently moves out of state, the voter registration in Arizona will be cancelled.

HB 2256 – assured water supply; service area
To determine physical groundwater availability from future wells for assured water supply, the service area of the water provider will be assumed to be coterminous with its boundaries to the water provider’s boundaries.

HB 2257 – jurisdiction; navigable waters; no connection
The State of Az has exclusive jurisdiction over water features within the state the do not have permanent surface connection and that may contribute only a minor amount of surface water to navigable waters.

HB 2258 – assured water; supply; nonlocal water
Allows a Certificate of Assured Water Supply to be issued for groundwater being used from outside the AMA with specific criteria.

HB 2275 – condominium termination; unit owners; percentage
Increases the percentage of unit owners’ votes required from 80% to 100% to terminate a condominium.

HB 2297 – judgements; liens; homestead exemption
Substantially modifies the 2021 changes to the Homestead Act.

HB 2317 – appropriation; border fence construction
Appropriates $150,000,000 from the General Fund to the Border Security Fund to manage and maintain a physical border fence.

HB 2320 – veterans’ organization; leased property; classification
Allows property and building leased to a veteran’s organization to qualify for class 9 property tax exempt status.

HB 2339 – municipal notices and ordinances; posting
Provides that a city or town may provide public notice by posting in a newspaper or on the city/town’s website. The website must contain a link to notices on the front page.

HB 2396 – appropriations; greater Arizona transportation projects
Appropriates $49,999,999 from the General Fund to ADOT for specific highway and roadway projects, including:
• $4,494,144 to Apache Junction for improvements at Tomahawk Rd & Southern Ave
• $4,171,537 to Queen Creek to add lanes to Ironwood Rd from SR-24 to Germann Rd
• $850,533 to Huachuca City for construction of Skyline Dr between SR-90 and the town landfill
• $1,140,000 to Sierra Vista for a joint corridor improvement project with Cochise County for Theatre Dr. between 7th Ave and
Carmichael Ave
• $1,566,815 to Nogales for the reconstruction of Industrial Park Dr from Manor Dr to Mariposa Rd
• Eloy: $250,000 for pavement rehab to Stuart Blvd, $200,000 for intersection improvements on Main St from Frontier St to 3rd St,
$225,000 for D St pavement rehab, $218,667 for Houser Rd pavement rehab
• $893,667 to Casa Grande for improvements to Florence Blvd between I-10 and Pinal Ave

HB 2398 – Strike Everything – dude ranches; heritage trail program
Establishes the Arizona Dude Ranch Heritage Trail Program. Creates criteria for the program and a board to promote designated dude ranches.

HB 2409 – multi-county water districts; storage tax
Delays the Central Arizona Water Conservation District (CAWCD) tax repeal from 2030 to 2035. Extends the 4 cent per $100 assessed valuation tax from 2024 to 2029. Extends the start of a 3 cent per $100 assessed valuation tax from 2025 to 2030.

HB 2445 – political signs; size requirements
Limits the maximum size of a political sign in a residential zoned area to 6 ft square. Limits political signs located on a commercial zoned property to 24 sq ft.

HB 2454 – statutory conformity; property tax exemptions
Establishes property owned by veterans with service or non service connected disabilities is exempt from taxation. Exempts and limits some property taxation belonging to widows and widowers of veterans.

HB 2460 – wells; permits; spacing rules
Allows a person entitled to withdraw groundwater in an AMA or basin of declining water to construct a new well if the new well complies with rules set by the Director.

HB 2463 – well drilling; groundwater basins
Limits new well construction in the Upper San Pedro Groundwater Basin and the Verde Valley Groundwater Basin to replacement wells and wells the Director determines are acceptable.

HB 2466 – adequate water supply; statewide requirements
Substantially amends the subdivision of land and water supply. Deletes the required statement that the Director of Water Resources has determined inadequate water supply for the subdivision. Changes a municipality’s approval of subdivisions relative to water supply.

HB 2468 – veteran housing; unclaimed property locators
Allows DOR (Dept of Revenue) to charge fees to unclaimed property locators. Establishes the Veteran Housing Trust Fund (VHTF). The fund will be funded by unclaimed property sales and investment earnings. VHTF funds to be spent for housing projects and rental assistance for homeless veterans. Allocates $1,000,000 a year from the state’s unclaimed property.

HB 2482 – municipality; general plan; adoption; amendment
States all major amendments to the general plan proposed by the municipal government must be presented at a public hearing within 12 months of when the proposal was made.

HB 2485 – eviction dismissal; sealed records
Requires the court to order eviction case records be sealed if the action for eviction is dismissed ore the case is ruled in favor of the tenant, including in cases of written stipulation by the landlord and tenant setting aside the eviction order.

HB 2549 – stored water; certificates; impact; accounting
Requires an entity that delivered a combination of ground and surface water or affluent to provide a report showing water provided to each user. Tells ADWR when determining groundwater that is physically available for future wells to assume service areas mirror boundaries of provider. Redefines area of impact.

HB 2579 – residential zoning; park model trailers
States local government ma not prohibit or restrict the use of a park model trailer on a residential lot. The local government may not prohibit or restrict the use of a park model trailer as a SF ADU (accessory dwelling unit). Defines ADU. Defines Park Model Trailer.

HB 2600 – appropriation; Loop 101 slip ramp
Appropriates $25,000,000 from the General Fund to ADOT for the Tolleson Loop 101 slip ramp project.

HB 2619 – postvaccine injuries; COVID-19; posting
Requires the Az Dept. of Health Services post on their Covid-19 dashboard a link entitled: Vaccine Injury Data Report. The link must contain publicly available data from vaccine adverse events. Outlines the types of data.

HB 2625 – vacation rentals; short term rentals; regulations
Allows a city, town or county to regulate vacation and short term rentals by requiring its owner to provide a name & phone number of the owner or designee to all property owners within 300 feet of the rental property, display a sign that contains a 24 -hour emergency contact number, maintain a local permit or license before renting the property and provide proof of a valid TPT license.

HB 2629 – property tax liens; expiration dates
Extends the time period for a county treasurer to notify a purchaser that a tax lien is going to expire to within 365 days before and within 30 days after expiration. Removes the requirement a notice be sent certified mail. Allows notice to be sent via email.

HB 2663 – short term rentals; vacation rentals; licensing
Allows local jurisdiction to limit the percentage of vacation or short term rental bases on total housing stock. Authorized local jurisdiction to require rental property owner obtain permit or license and proof of TPT license. States short term and vacation rentals are not residential rental dwelling units and are subject o Az Dept. of Health Services health and safety regulations. Requires DOR to suspend rental property owner’s TPT license for 12 months if owner receives three verified violations in a 24 month period.

HB 2664 – military and transitional housing; fund
Creates MTHF (military and transitional housing fund). Monies are to be used in cooperation with veteran owned and operated non-profit and for profit organizations to provide newly constructed transitional housing to military members who are separated from the military.

HB 2674 – municipal zoning; by right housing
Establishes state laws regarding residential zoning, housing design and building codes. Declares housing supply and affordability are matters of statewide concern. Prohibits municipality from regulating, restricting or limiting residential zoning, construction or development standards. Mandates that by Jan. 1, 2023 municipalities allow construction of 8 single family dwelling units per acre or 12 two story dwelling units per acre, construction of multi family units, construction of single family, two family and multi family units to certain densities on specific land.

HB 2678 – state broadband office
Establishes State Broadband Office. The office will be inside the ACA (Az Commerce Authority). The office will coordinate local, state and federal broadband programs, coordinate federal grant applications, provide guidance on navigating regulatory and permitting process. Work with partners, agencies and telecommunications providers to develop plans to improve internet connectivity and resiliency. Requires the office to publish a state broadband plan.

HB 2694 – department of real estate; fees
Eliminates minimum fees. Establishes fee schedule.

HB 2700 – Strike Everything – condominiums; amendments; planned communities
Allows condominium bylaws to be amended. Establishes percentage of unit owners required to vote in favor of specific changes. Requires 67% of owners to vote to amend community declaration or bylaws. Allows other changes to bylaws be 50 % approval of unit owners.

HB 2711 – vacation rentals; short term rentals; restrictions
Allows municipalities with less than 17,000 people to require permits or licenses for vacation rentals and short term rentals, limit the number of these properties and regulate them like transient lodging.

HB 2747 – wholesale real estate buyers; disclosure
Requires wholesale buyers to disclose they are wholesaler to the seller prior to entering into a purchase agreement. Defines wholesale buyer as person or entity that enters into a purchase contract for residential real property and assigns that same contract to another person or entity for a profit.

HB 2792 – landlords; tenant’s marijuana use
States a Landlord may not terminate a tenant’s rental agreement because the tenant uses marijuana.