Arizona 55th Legislature - 1st Regular Session Status: Passed House 2 R cosponsors

HB 2161 — tourism marketing authorities.

Last action — Senate Second Reading

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 55th Legislature - 1st Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

321 added · 74 removed

Plain-language change summary

The updated version of HB 2161 introduces clearer definitions regarding transient lodging rooms by specifying that they do not include accommodations that are the owner's primary residence. This change is significant because it distinguishes between commercial lodging intended for tourists and private homes rented out occasionally, ensuring fair regulations on tourism marketing authorities. Overall, this adjustment aims to better define the scope of the bill and protect both local businesses and residents.

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HOUSE FLOOR AMENDMENT EXPLANATION Bill Number:
HB2161 - 551R - H Ver *Sponsorship has changed since the bill was introduced     House Engrossed   tourism marketing authorities.
HB 2161 Floor Amendment Kaiser • Excludes, from the definition of transient lodging room, certain lodging accommodations, whether rented through an online lodging marketplace or otherwise.
        State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session       HOUSE BILL 2161       AN ACT   amending title 9, Arizona Revised Statutes, by adding chapter 14;
• Specifies the assessment levied on transient lodging rooms beginnings on the first day of the first month beginning 90 days after the Authority is established.
amending title 11, Arizona Revised Statutes, by adding chapter 15;
• Removes the requirement for ADOR to separately account for assessment monies paid and to deposit net revenues into the State general fund.
relating to tourism.
• Makes clarifying changes.
    (TEXT OF BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of the State of Arizona:
Amendment explanation prepared by Paul Benny Phone Number 4587 ra 2/17/2021 Fifty-fifth Legislature Kaiser First Regular Session H.B.
Section 1.
2161 KAISER FLOOR AMENDMENT HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
Title 9, Arizona Revised Statutes, is amended by adding chapter 14, to read:
2161 (Reference to printed bill) Page 1, line 16, after the second quotation mark insert ":
CHAPTER 14 TOURISM MARKETING AUTHORITY ARTICLE 1.
(a)" Between lines 18 and 19, insert:
GENERAL PROVISIONS START_STATUTE9-1501.
"(b) DOES NOT INCLUDE LODGING ACCOMMODATIONS, WHETHER RENTED THROUGH AN ONLINE LODGING MARKETPLACE AS DEFINED IN SECTION 42-5076 OR OTHERWISE, AND THAT ARE EITHER OF THE FOLLOWING:
Definitions In this chapter, unless the context otherwise requires:
(i) OCCUPIED BY THE OWNER OF THE PROPERTY AS THE OWNER'S PRIMARY RESIDENCE AND CLASSIFIED AS CLASS THREE PROPERTY PURSUANT TO SECTION 42-12003.
1.
(ii) RESIDENTIAL PROPERTY THAT IS LEASED OR RENTED PURSUANT TO SECTION 42-12004, SUBSECTION A, PARAGRAPH 1, 2, 3, 4, 5, 7, 8, 9 OR 10." Page 2, line 30, after the second "THE" insert "ANNUAL" Line 35, after the period insert "THE ASSESSMENT SHALL BE LEVIED UNDER THIS SECTION BEGINNING ON THE FIRST DAY OF THE FIRST MONTH BEGINNING NINETY DAYS AFTER THE AUTHORITY IS ESTABLISHED.
"Authority" means a tourism marketing authority that is formed pursuant to this chapter.
UNLESS THE CONTEXT OTHERWISE REQUIRES, SECTION 42-6102 GOVERNS THE ADMINISTRATION OF THE ASSESSMENT." Line 43, after the third comma strike remainder of line Strike line 44, insert "THE AMOUNT" Line 45, after the period strike remainder of line Page 3, strike lines 1 through 6 Line 8, after "SHALL" insert "REPORT TO THE DEPARTMENT OF REVENUE THE ASSESSMENT AND" House Amendments to H.B.
2.
2161 Page 4, line 17, after the second quotation mark insert ":
"Board" means the board of directors of a tourism marketing authority.
(a)" Between lines 19 and 20, insert:
3.
"(b) DOES NOT INCLUDE LODGING ACCOMMODATIONS, WHETHER RENTED THROUGH AN ONLINE LODGING MARKETPLACE AS DEFINED IN SECTION 42-5076 OR OTHERWISE, AND THAT ARE EITHER OF THE FOLLOWING:
"Governing body" means the body or board that by law is constituted as the legislative department of the municipality or county.
(i) OCCUPIED BY THE OWNER OF THE PROPERTY AS THE OWNER'S PRIMARY RESIDENCE AND CLASSIFIED AS CLASS THREE PROPERTY PURSUANT TO SECTION 42-12003.
4.
(ii) RESIDENTIAL PROPERTY THAT IS LEASED OR RENTED PURSUANT TO SECTION 42-12004, SUBSECTION A, PARAGRAPH 1, 2, 3, 4, 5, 7, 8, 9 OR 10." Page 5, line 28, after the second "THE" insert "ANNUAL" Line 38, after the period insert "THE ASSESSMENT SHALL BE LEVIED UNDER THIS SECTION BEGINNING ON THE FIRST DAY OF THE FIRST MONTH BEGINNING NINETY DAYS AFTER THE AUTHORITY IS ESTABLISHED.
"Municipality" means a city or town.
UNLESS THE CONTEXT OTHERWISE REQUIRES, SECTION 42-6102 GOVERNS THE ADMINISTRATION OF THE ASSESSMENT." Line 41, after the comma strike remainder of line Line 42, strike "THE PETITION FOR THE AUTHORITY," Line 43, after the period strike remainder of line Strike line 44 Page 6, strike lines 1 and 2 Line 4, after "SHALL" insert "REPORT TO THE DEPARTMENT OF REVENUE THE ASSESSMENT AND" Amend title to conform STEVE KAISER 2161FloorKAISER1 02/17/2021 02:10 PM C:
5.
MYR -2-
"Transient lodging room":
(a) means a room that is intended for transient occupancy in a hotel or motel, including an inn, tourist home or house, dude ranch or resort.
(b) does not include lodging accommodations, whether rented through an online lodging marketplace as defined in section 42-5076 or otherwise, and that are either of the following:
(i) occupied by the owner of the property as the owner's primary residence and classified as class three property pursuant to section 42-12003.
(ii) residential property that is leased or rented pursuant to section 42-12004, subsection a, paragraph 1, 2, 3, 4, 5, 7, 8, 9 or 10.
END_STATUTE START_STATUTE9-1502.
Petition;
approval;
formation A.
On presentation of a petition pursuant to this section, the governing body of one or more municipalities or one or more municipalities and a county with a population of less than two million persons may adopt a resolution forming a tourism marketing authority consisting of the property within the corporate boundaries of the authority as described in the petition.
The petition for the formation of the authority shall include and identify the following:
1.
The geographic boundaries of the authority.
2.
The nonprofit tourism promotion organization that the municipality and county, if applicable, will contract with to provide the tourism marketing services for the authority.
3.
A statement that the tourism marketing authority will promote and enhance tourism in the authority.
4.
The amount of the assessment stated in dollars per room per night on the transient lodging rooms within the boundaries of the authority and the transient lodging facilities to be assessed.
5.
A description of the authority's obligation to report annually to the governing body of each municipality and county that is participating in the authority.
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6.
A statement that the authority may be terminated by petition of the transient lodging room owners or legally authorized representatives and shall terminate after ten years unless renewed by further action by petition to and approval of one or more of the governing bodies participating in the authority.
B.
If a petition prescribed by subsection A of this section is signed by the owners or legally authorized representatives of at least sixty-seven percent of the transient lodging rooms within the geographic area of the authority, and includes two or more properties with transient lodging rooms, the governing body of each participating municipality and county by affirmative vote may approve the formation of the authority.
On approval of each participating municipality and county, the authority is ESTABLISHED.
END_STATUTE START_STATUTE9-1503.
Authority powers and duties;
contracts;
assessments A.
On ESTABLISHMENT of the authority, the governing body of each MUNICIPALITY and county participating in the authority shall:
1.
Contract with a recognized tourism promotion agency in the municipality and county that is a nonprofit corporation exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least five years.
If there is no recognized tourism promotion agency in the municipality that has been in continuous existence for the preceding five years, the municipality shall contract with a recognized tourism PROMOTION agency in the MUNICIPALITY and COUNTY that is a NONPROFIT CORPORATION exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least two YEARS.
If there is no recognized TOURISM promotion agency in the municipality, the municipality may contract with the municipality's tourism promotion office.
The contract shall provide that the municipality and any participating county shall distribute to the recognized tourism promotion agency all monies that are received from assessments collected pursuant to this chapter.
2.
enter into intergovernmental agreements as prescribed in title 11, chapter 7, article 3 for the purposes of supporting the authority.
B.
The authority shall Establish, charge and collect assessments on transient lodging rooms.
The authority may levy an assessment of not more than $5 per room sold per night on the transient lodging rooms in the authority.
The assessment rate or rates may be tiered based on the annual average daily room rate for the affected transient lodging.
C.
The transient lodging room owner or legally authorized representative shall pay the assessment to the department of revenue at the same time as paying the transaction privilege tax under section 42-5014.
The assessment shall be levied under this section beginning on the first day of the first month beginning ninety days after the authority is established.
Unless the context otherwise requires, section 42-6102 governs the administration of the assessment.
If the transient lodging room owner for any reason does not pay transaction privilege tax, the assessment imposed by this chapter is due and payable to the department, and is delinquent if not paid, as provided in section 42-5014, subsection A.
The department shall report to the state treasurer the amount of monies collected pursuant to this subsection.
D.
the state treasurer shall transmit to the treasurer or officer exercising the functions of treasurer of the participating MUNICIPALITY or county, if applicable, each month, the amount collected from properties within the authority.
E.
The board and any municipality or county that is participating in the authority shall report to the DEPARTMENT of revenue the assessment and supply the department of revenue and the state treasurer with all requested information necessary to administer this section.
END_STATUTE START_STATUTE9-1504.
Authority governance;
limitation;
meetings;
report A.
The board of directors of the recognized tourism PROMOTION agency shall govern the authority and at least one member of one or more of the governing bodies shall participate in the authority.
THE authority may Employ staff and consultants, Reimburse a municipality or county for staff, services and FACILITies supplied by the municipality or county, enter into contracts and accept grants.
B.
The authority may not finance or facilitate the acquisition, maintenance, construction or operation of a hotel, motel, resort or other transient lodging or any sports or entertainment facility.
C.
The authority and its board shall maintain the RECORDS of the authority, including RECORDS of its accounts showing all monies RECEIVED and DISBURSED AND its annual budget, and shall keep the authority's monies and operations separate from the tourism promotion agency's other monies and activities.  The board shall comply with title 38, chapter 3, article 3.1 and title 39, chapter 1.
D.
The board shall report at least annually to the governing bodies of the participating municipalities and county on the activities and expenditures of the AUTHORITY and the impacts of the authority's expenditures and activities.
END_STATUTE START_STATUTE9-1505.
Termination;
petition;
renewal;
modification of boundaries A.
An AUTHORITY may be terminated at any time on presentation of a petition that is signed by the owners or legally authorized representatives of at least fifty-one percent of the transient lodging rooms within the geographic area of the authority.
On receipt of a petition, the governing body of each participating municipality and county shall terminate its participation in the authority and notify the department of revenue, which shall cease collecting any assessment.
B.
An authority shall terminate ten years after its formation unless one or more municipalities or one or more municipalities and a county by petition as prescribed by section 9-1502 and by resolution approve the renewal of the authority before its termination.  An authority may be renewed and its boundaries modified if fewer than all of the original entities resolve to renew their participation in the authority except that an authority must include at least one municipality.
On approval of one or more governing bodies' resolutions, the authority is renewed for ten additional years.  An authority may continue to be renewed every ten years thereafter.
END_STATUTE Sec. 2.
Title 11, Arizona Revised Statutes, is amended by adding chapter 15, to read:
CHAPTER 15 TOURISM MARKETING AUTHORITY ARTICLE 1.
GENERAL PROVISIONS START_STATUTE11-2001.
Definitions In this chapter, unless the context otherwise requires:
1.
"Authority" means a tourism marketing authority that is formed pursuant to this chapter.
2.
"Board" means the board of directors of a tourism marketing authority.
3.
"Governing body" means the board of supervisors of a county.
4.
"Transient lodging room":
(a) means a room that is intended for transient occupancy in a hotel or motel, including an inn, tourist home or house, dude ranch or resort.
(b) Does not include lodging accommodations, whether rented through an online lodging marketplace as defined in section 42-5076 or otherwise, and that are either of the following:
(i) occupied by the owner of the property as the owner's primary residence and classified as class three property pursuant to section 42-12003.
(ii) residential property that is leased or rented pursuant to section 42-12004, subsection a, paragraph 1, 2, 3, 4, 5, 7, 8, 9 or 10.
END_STATUTE START_STATUTE11-2002.
Petition;
approval;
formation A.
On presentation of a petition pursuant to this section, the governing body of a county with a population of less than two million persons may adopt a resolution forming a tourism marketing authority consisting of all of the property within the boundaries of the county.  The petition for the formation of the authority shall include and identify the following:
1.
The geographic boundaries of the authority.
2.
The nonprofit tourism promotion organization that the county will contract with to provide the tourism marketing services for the authority.
3.
A statement that the tourism marketing authority will promote and enhance tourism in the authority.
4.
The amount of the assessment stated in dollars per room per night on the transient lodging rooms within the boundaries of the authority and the transient lodging facilities to be assessed.
5.
a description of the authority's obligation to report annually to the governing body of the county that is participating in the authority.
6.
A statement that the authority may be terminated by petition of the transient lodging room owners or legally authorized representatives and shall terminate after ten years unless renewed by further action by petition to and approval of the governing body.
B.
If a petition prescribed by subsection A of this section is signed by the owners or legally authorized representatives of at least sixty-seven percent of the transient lodging rooms within the geographic area of the authority, and includes two or more properties with transient lodging rooms, the governing body of the county by affirmative vote may approve the formation of the authority.
On approval of the county, the authority is ESTABLISHED.
END_STATUTE START_STATUTE11-2003.
Authority powers and duties;
contracts;
assessments A.
On establishment of the authority, the governing body of the county participating in the authority shall:
1.
Contract with a recognized tourism promotion agency in the county that is a nonprofit corporation exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least five years.
If there is no recognized tourism promotion agency in the county that has been in continuous existence for the preceding five years, the county shall contract with a recognized tourism PROMOTION agency in the COUNTY that is a NONPROFIT CORPORATION exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least two YEARS.
If there is no recognized tourism promotion agency in the county, the county may contract with the county's tourism promotion office.
The contract shall provide that the county shall distribute to the recognized tourism promotion agency all monies that are received from assessments collected pursuant to this chapter.
2.
Enter into intergovernmental agreements as prescribed in chapter 7, article 3 of this title for the purposes of supporting the authority.
B.
The authority shall establish, charge and collect assessments on transient lodging rooms.  The authority may levy an assessment of not more than $5 per room sold per night on the transient lodging rooms in the authority.
The assessment rate or rates may be tiered based on the annual average daily room rate for the affected transient lodging.
C.
The transient lodging room owner or legally authorized representative shall pay the assessment to the department of revenue at the same time as paying the transaction privilege tax under section 42-5014.  If the transient lodging room owner for any reason does not pay transaction privilege tax, the assessment imposed by this chapter is due and payable to the department, and is delinquent if not paid, as provided in section 42-5014, subsection A.
The department shall report to the state treasurer the amount of monies collected pursuant to this subsection.
the assessment shall be levied under this section beginning on the first day of the first month beginning ninety days after the authority is established.
Unless the context otherwise requires, section 42-6102 governs the administration of the assessment.
D.
the state treasurer shall transmit to the treasurer or officer exercising the functions of treasurer of the participating county each month, the amount collected from properties within the authority.  E.
The board and the county that is participating in the authority shall report to the department of revenue the assessment and supply the department of revenue and the state treasurer with all requested information necessary to administer this section.
END_STATUTE START_STATUTE11-2004.
Authority governance;
limitation;
meetings;
report A.
The board of directors of the recognized tourism promotion agency shall govern the authority and at least one member of the governing body shall participate in the authority.
The authority may employ staff and consultants, reimburse a county for staff, services and facilities supplied by the county, enter into contracts and accept grants.
B.
The authority may not finance or facilitate the acquisition, maintenance, construction or operation of a hotel, motel, resort or other transient lodging or any sports or entertainment facility.
C.
The authority and its board shall maintain the records of the authority, including records of its accounts showing all monies received and disbursed and its annual budget, and shall keep the authority's monies and operations separate from the tourism promotion agency's other monies and activities.
The board shall comply with title 38, chapter 3, article 3.1 and title 39, chapter 1.
D.
The board shall report at least annually to the governing body of the county on the activities and expenditures of the authority and the impacts of the authority's expenditures and activities.
END_STATUTE START_STATUTE11-2005.
Termination;
petition;
renewal;
modification of boundaries A.
An authority may be terminated at any time on presentation of a petition that is signed by the owners or legally authorized representatives of at least fifty-one percent of the transient lodging rooms within the geographic area of the authority.
On receipt of a petition, the governing body of the county shall terminate its participation in the authority and notify the department of revenue, which shall cease collecting any assessment.
B.
An authority shall terminate ten years after its formation unless a county by petition as prescribed by section 11-2002 and by resolution approve the renewal of the authority before its termination.  On approval of the governing body's resolution, the authority is renewed for ten additional years.  An authority may continue to be renewed every ten years thereafter.
END_STATUTE Sec. 3.
Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
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Action History

  1. Senate Second Reading

  2. Senate First Reading

  3. Transmit to Senate

  4. PASSED

  5. PASSED

  6. FAILED

  7. DPA

  8. House Placed on Consent Calendar

  9. DP

  10. House Second Reading

  11. House First Reading.

Sponsors

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 89 not signed on · 33 voted No

Sponsors (1)

Co-sponsors (3)

Not signed on (89)

89 members have not signed on to this bill.

Show all 89 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed

Passed 38 Yea · 20 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 301002
Republican 41000
Democrat 4000
Total 382002
% of votes cast 63%33%0%3%
How each member voted (60)
Member Party Vote
Jasmine Blackwater-Nygren — Yea
Aaron Lieberman — Yea
Amish Shah — Yea
Andrea Dalessandro — Yea
Andres Cano — Yea
Athena Salman — Nay
Becky A. Nutt — Yea
Ben Toma — Nay
Brenda Barton — Nay
Bret Roberts — Nay
Charlene R. Fernandez — Yea
César Chávez — Yea
Daniel Hernandez — Yea
David L. Cook — Yea
Diego Espinoza — Yea
Diego Rodriguez — Not Voting
Domingo DeGrazia — Yea
Frank Pratt — Yea
Jacqueline Parker — Nay
Jennifer Jermaine — Yea
Jennifer Longdon — Yea
Jennifer Pawlik — Yea
Joanne Osborne — Yea
Joel John — Yea
John Fillmore — Nay
Judy Burges — Nay
Judy Schwiebert — Yea
Kelli Butler — Yea
Lorenzo Sierra — Yea
Melody Hernandez — Nay
Michelle Udall — Yea
Pamela Powers Hannley — Not Voting
Randall Friese — Yea
Raquel Terán — Yea
Regina E. Cobb — Yea
Reginald Bolding — Yea
Richard C. Andrade — Yea
Robert Meza — Yea
Russell Bowers — Yea
Steve Kaiser — Yea
Travis W. Grantham — Nay
Walter Blackman — Nay
Alma Hernandez Democrat Yea
Denise “Mitzi” Epstein Democrat Yea
Myron Tsosie Democrat Yea
Stephanie Stahl Hamilton Democrat Yea
Beverly Pingerelli Republican Nay
Frank Carroll Republican Nay
Gail Griffin Republican Nay
Jake Hoffman Republican Nay
Jeff Weninger Republican Yea
John Kavanagh Republican Yea
Joseph Chaplik Republican Nay
Justin Wilmeth Republican Yea
Kevin Payne Republican Nay
Leo Biasiucci Republican Nay
Mark Finchem Republican Nay
Quang H Nguyen Republican Nay
Shawnna Bolick Republican Nay
Timothy "Tim" Dunn Republican Yea

Official roll call →

failed to pass

Failed 28 Yea · 32 Nay
Party YeaNayPresentNot Voting
Unaffiliated 241800
Republican 21200
Democrat 2200
Total 283200
% of votes cast 47%53%0%0%
How each member voted (60)
Member Party Vote
Jasmine Blackwater-Nygren — Yea
Aaron Lieberman — Yea
Amish Shah — Yea
Andrea Dalessandro — Yea
Andres Cano — Yea
Athena Salman — Nay
Becky A. Nutt — Nay
Ben Toma — Nay
Brenda Barton — Nay
Bret Roberts — Nay
Charlene R. Fernandez — Nay
César Chávez — Yea
Daniel Hernandez — Yea
David L. Cook — Yea
Diego Espinoza — Yea
Diego Rodriguez — Nay
Domingo DeGrazia — Nay
Frank Pratt — Yea
Jacqueline Parker — Nay
Jennifer Jermaine — Yea
Jennifer Longdon — Yea
Jennifer Pawlik — Yea
Joanne Osborne — Yea
Joel John — Yea
John Fillmore — Yea
Judy Burges — Nay
Judy Schwiebert — Yea
Kelli Butler — Yea
Lorenzo Sierra — Yea
Melody Hernandez — Nay
Michelle Udall — Yea
Pamela Powers Hannley — Nay
Randall Friese — Nay
Raquel Terán — Nay
Regina E. Cobb — Yea
Reginald Bolding — Nay
Richard C. Andrade — Nay
Robert Meza — Yea
Russell Bowers — Yea
Steve Kaiser — Yea
Travis W. Grantham — Nay
Walter Blackman — Nay
Alma Hernandez Democrat Yea
Denise “Mitzi” Epstein Democrat Nay
Myron Tsosie Democrat Yea
Stephanie Stahl Hamilton Democrat Nay
Beverly Pingerelli Republican Nay
Frank Carroll Republican Nay
Gail Griffin Republican Nay
Jake Hoffman Republican Nay
Jeff Weninger Republican Yea
John Kavanagh Republican Nay
Joseph Chaplik Republican Nay
Justin Wilmeth Republican Nay
Kevin Payne Republican Nay
Leo Biasiucci Republican Nay
Mark Finchem Republican Nay
Quang H Nguyen Republican Nay
Shawnna Bolick Republican Nay
Timothy "Tim" Dunn Republican Yea

Official roll call →

Subjects

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Frequently asked questions

Who sponsors HB 2161?
HB 2161 is sponsored by Jeff Weninger (Republican), Walt Blackman (Republican), Regina E. Cobb, and Steve Kaiser.
What is the current status of HB 2161?
This bill died with 55th Legislature - 1st Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 2161?
Track HB 2161 free on One Click Politics — get push/email alerts when it moves.

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