HB 2891 — budget procedures; budget reconciliation; 2021-2022.

Live racing and wagering on simulcast races shall be permissible in either daytime or nighttime.

Unless otherwise agreed by written contract that is submitted to the department between all the permittees in the same county, there shall be no wagering on simulcast dog races before 4:15 p.m., mountain standard time, on the same day that there is live daytime horse or harness racing in any county in which commercial horse or harness racing has been conducted before February 1, 1971.

The hours during which any other harness or horse racing is to be conducted shall be determined by the commission.

The application for a permit shall state the exact days on which racing will be held and the time of day during which racing will be conducted.

D.

If the commission determines that an emergency has obligated or may obligate a permittee to discontinue racing at a location, the commission may authorize the permittee to transfer racing for the number of days lost to any other location.

E.

A racing meeting, when operated by a county fair racing association or under lease during the county fair to any individual, corporation or association, shall not come under the limitation placed on days of racing in this section.

F.

The department shall be the judge of whether a county fair racing meeting is being operated pursuant to this section.

A county fair racing meeting conducted by an individual, corporation or association, other than the properly authorized county fair racing association, shall come under the general provisions of this article the same as a commercial meeting.  Notwithstanding this subsection, a county fair racing meeting, whether conducted by a county fair racing association or by an individual, corporation or association other than a county fair racing association, is exempt from the requirement prescribed in section 5-111 to pay to the state a percentage of the pari-mutuel pool collected at the meeting.

G.

The commission may allow a permittee, in addition to the days specified in this permit, to operate up to three racing days during any one meeting as charity days.

From the amount deducted from the total handled in the pari-mutuel pool on charity days, the permittee shall deduct an amount equal to the purses and the cost of conducting racing on these days, and shall donate the balance to nonprofit organizations and corporations that benefit the general public, that are engaged in charitable, benevolent and other like work and that are selected by the permittee and approved by the department.

In no event shall the amount given to charity from charity racing days be less than the amount that otherwise would have gone to this state as the state's share on a noncharity racing day.

H.

Notwithstanding any other law, live dog racing shall not be conducted in this state after December 31, 2016.  This subsection does not apply to nonprofit organizations that host lure coursing or similar events that test a dog's ability, stamina and breeding or training for such events.

Notwithstanding any other provision of this article, any dog racing permittee that offered live dog racing in 2016 or that has offered live dog racing in eight out of ten calendar years from 1980 to 1990 in counties that have a population of less than five hundred thousand persons shall be considered as operating a racetrack enclosure for all purposes under this article and shall not be authorized or required to conduct live racing as a condition of that permittee's racing permit.

Any permittee qualified under this subsection may conduct advance deposit wagering, wagering at additional wagering facilities that are owned or leased by that permittee and wagering on telecasts of races conducted at racetrack enclosures within this state or at racetrack enclosures outside this state without offering live racing at that permittee's racetrack enclosure.

On or before January 1, 2023, the department shall convert the permit of a dog racing permittee under this subsection to a permit for harness racing if the dog racing permittee meets the qualifications for a permit for harness racing.

END_STATUTE Sec. 2.

Title 5, chapter 5.1, article 2, Arizona Revised Statutes, is amended by adding section 5-576, to read:

START_STATUTE5-576.

Lottery;

advertising;

professional sports;

prohibition The lottery may not, directly or indirectly, spend, allocate or direct any monies under the control of the lottery to advertise the lottery At a professional sporting event or in conjunction with any professional sports team or franchise.

END_STATUTE Sec. 3.

Section 5-1318, Arizona Revised Statutes, is amended to read:

START_STATUTE5-1318.

Fees;

event wagering fund A.

The department shall establish a fee for the privilege of operating event wagering.

In determining the fee, the department shall consider the highest percentage of revenue share that an Indian tribe pays to this state pursuant to the tribal-state gaming compact.

The event wagering operator or designee has the option to choose either the cash accrual or modified accrual basis method of accounting for purposes of calculating the amount of the fee owed by the event wagering operator or designee.

The fees required pursuant to this section are due and payable to the department not later than the twenty-fifth day of the month following the calendar month in which the adjusted gross event wagering receipts were received and the obligation was accrued.

B.

The event wagering fund is established consisting of monies deposited pursuant to this chapter or from any other source.

The department shall administer the fund.

Except as otherwise provided in this chapter, the department shall deposit, pursuant to sections 35-146 and 35-147, all monies collected under this chapter in the event wagering fund.

On the twenty-fifth of each month, any ninety percent of the monies remaining deposited in the event wagering fund shall be transferred to the state general fund.  On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

C.

Unless otherwise determined by the legislature, the department may spend not more than ten percent of monies on the department's annual costs of regulating and enforcing this chapter, and any remaining monies in the fund revert to the state general fund.

END_STATUTE Sec. 4.

Title 16, chapter 1, article 3, Arizona Revised Statutes, is amended by adding sections 16-132, 16-133 and 16-138, to read:

START_STATUTE16-132.

Voter registration assistance;

hunting, fishing, trapping licenses;

definitions A.

The Arizona game and fish department shall provide assistance with voter registration when accepting applications for a license.

The ARizona game and fish department shall provide to the applicant with any online applications for a license a link to the department of transportation's voter registration webpage.  Each Arizona game and fish department office that accepts applications for a license in person shall provide a voter registration form to the applicant.

b.

the secretary of state shall provide to the department voter registration forms and instructions to applicants to mail completed voter registration forms to the secretary of state.

The secretary of state shall forward the COMPLETED voter registration forms to the APPROPRIATE county recorder to determine the eligibility of the applicant and, if found eligible, to add the applicant's name to the voter registration rolls.

c.

Voter registration information that is generated pursuant to this section and that is public information as otherwise provided by law shall not provide any public indication of the source of these registrations.

d.

Persons who act pursuant to this section are not considered to be deputy registrars under this title or any rules adopted under its authority.

e.

For the purposes of this section:

1.

"Department" means the Arizona game and fish department.

Directs"License" themeans Secretarya ofhunting, Statefishing (SOS)or totrapping providelicense AGFDissued withby voterthe registrationArizona formsgame and instructions.fish DEPARTMENT pursuant to title 17, chapter 3.

END_STATUTE START_STATUTE16-133.

Voter registration events;

website posting The secretary of state and each county recorder shall post on their public website a list of each event that the office of the secretary of state or the county recorder attends and provides voter registration services.

Each event shall be posted on the public website within twenty-four hours after the secretary's or recorder's attendance at the event.

END_STATUTE START_STATUTE16-138.

Voter registration database;

federal only voters;

analysis;

annual report;

investigation A.

The secretary of state shall provide access to the statewide voter registration database to a person or entity that is designated by the LEGISLATURE and to the election integrity unit of the attorney GENERAL'S office for the purposes of DETERMINING whether the SECRETARY of state's voter registration list maintenance procedures comply with federal LAW with RESPECT to voters who are registered as voters eligible to vote only for federal offices.

B.

The person or entity that is designated by the legislature must be qualified in more THAN one state to analyze a state's voter registration rolls for compliance with federal law regarding voter registration list maintenance procedures.  after completing its analysis, the person or entity shall report its findings to the PRESIDENT of the senate, the speaker of the house of representatives, the attorney general and the secretary of state.

If the analysis determines that there are persons registered to vote who are not eligible to register to vote, the secretary of state shall notify the appropriate county recorder and the county recorder shall remove those persons from the voter registration rolls.

C.

Each county recorder shall submit an annual report to the speaker of the house of representatives and the president of the senate that contains the following regarding voters who are ELIGIBLE to vote only for federal offices:

1.

A description of the county recorder's procedures regarding registering those voters who are ELIGIBLE to vote only for federal offices.

2.

The number of voters in that county who are eligible to vote only for federal offices.

RequiresThe thenumber SOSof tothose forwardvoters anywhose completedcitizenship voterhas registrationbeen formsotherwise theysubsequently receiveverified and whose status has changed to thevoters appropriatewho countyare recordereligible to determinevote votera eligibility.full ballot.

MaintainsA privacycomprehensive description of the obstacles to obtaining voter registrants' documentary PROOF of CITIZENSHIP that complies with this state's voter registration informationrequirements generatedand byto AGFD.changing their status to voters who are eligible to vote a full ballot.

Specifiesthe thatnumber individualsof fromthose AGFDvoters thatwho accepthave abeen completedsubsequently voterdetermined registrationto formbe areineligible notto consideredvote toin bethis deputystate registrars.and who have been removed from the voter registration rolls.

D.

The attorney general and the county attorney shall investigate and prosecute, as appropriate, any person who is ineligible to register to vote and who knowingly registers to vote.

END_STATUTE Sec. 5.

Title 16, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 16-504, to read:

START_STATUTE16-504.

Antifraud ballot paper;

vendor certification;

antifraud measures Notwithstanding any other statute, any vendor that provides fraud countermeasures that are contained in and on the paper used for ballots shall be ISO 27001 certified, ISO 17025 certified or ISO 9001:2015 certified.  Ballot fraud countermeasures shall include the use of at least three of the following:

1.

Unique, controlled-supply watermarked clearing bank specification 1 security paper.

2.

Secure holographic foil that acts as a visual deterrent and anti-copy feature.

3.

Branded overprint of any hologram that PERSONALIZES the hologram with customer logo.

4.

Custom COMPLEX security background DESIGNS with banknote-level security.

5.

secure variable digital infill.

DefinesThermochromic, pertinenttri-thermochromic, terms.photochromic or optically variable inks.

Study Committee on Missing and Murdered Indigenous Peoples (MMIP) 7.

ChangesStealth thenumbering namein ofultraviolet, theinfrared formeror Studytaggant Committeeinks. on Missing and Murdered Indigenous Women and Girls to MMIP.

MakesMulticolored modificationsmicro-numismatic toinvisible theultraviolet duties,designs. responsibilities and membership of MMIP.

RequiresUnique MMIPFORENSIC tofraud submitdetection atechnology reportthat ofis itsbuilt activitiesinto andsecurity recommendationsinks. to the Governor, Legislature and a copy to the SOS annually by December 1 for the next three years.

10.Extends10. the repeal date of MMIP from October 1, 2021 to October 1, 2025.

MiscellaneousUnique 11.Removesbar code or QR code that is accessible only to the statutoryvoter definitionand ofthat newspaper.tracks the voter's ballot as it is processed.

12.IncludesEND_STATUTE theSec. 6. Title Governor's16, Officechapter of4, Strategicarticle Planning10, andArizona BudgetingRevised inStatutes, theis reportingamended requirementby foradding thesection Major16-604, Eventsto Fund.read:

AmendmentSTART_STATUTE16-604. explanation prepared by Ahjahna G.

andElection Dianaintegrity C.fund;

Phonepurpose; Number 6-3583 ls 6/24/2021 13.Replaces language relating to shared or delegated authority and instead stipulates that in any disagreement between the AG, SOS or any other state official concerning the defense of state election law, the authority of the AG to defend the law is paramount.

14.Replacesexemption languageA. stipulating the AG's authority in election litigation to specify that in any proceeding in which the validity of state election law is challenged the AG speaks for the state and may intervene on its behalf.

15.MaintainsThe currentelection lawINTEGRITY thatfund exemptsis PSPRSESTABLISHED fromconsisting procurementof lawlegislative andappropriations.  removesThe thestate PSPRStreasurer administrationshall account.administer the fund.  B.

16.ProhibitsMonies in the Arizonafund Statemay Lotterybe fromused advertisingonly atto apay professionalcounty sportingRECORDERS eventfor orelection insecurity, conjunctioncybersecurity withmeasures aand sportsIMPROVEMENTS teamand orREIMBURSEMENTS franchisefor andpostelection applieshand thetabulations, provisionsincluding prospectively.for additional staffing.

17.AuthorizesC. DHS to adopt rules pertaining to collection data from health care institutions.

18.EntitlesCounty arecorders personshall toapply refusefor amonies mandatedfrom vaccinationthe duefund toand, personalon beliefs.review and approval by the state treasurer, the state treasurer shall make payments from the fund.

19.ConfirmsD. the COVID-19 pandemic as a matter of statewide concern and outlines limitations for cities, towns and counties regarding issuance of rules, ordinances or regulations for mitigating the COVID-19 pandemic.

20.CreatesMonies ain Specialthe Committeefund toare reviewexempt thefrom findings of the Senateprovisions audit of thesection 202035-190 generalrelating electionto inlapsing Maricopaof County.appropriations.

21.AuthorizesEND_STATUTE aSec. 7. special session of the Legislature to implement recommendations and repeals the Special Committee January 1, 2022.

22.Allows,Section by26-302, JulyArizona 1,Revised 2022,Statutes, ais condominiumamended to beread: terminated only by agreement of 100% of unit owners in the association and outlines exceptions.

23.MakesSTART_STATUTE26-302. technical and conforming changes.

AmendmentGeneral explanationpowers preparedof bygovernor LindsayThe Suppagovernor Pagemay 2delegate _________________________________________any Fifty-fifthof Legislaturethe Cobbpowers Firstvested Regularin Sessionthe H.B.office of the governor under this chapter to the adjutant general who may further delegate the powers to the director of emergency management except the powers enumerated in section 26-303, subsections A through G  I.

2891END_STATUTE COBBSec. 8. FLOOR AMENDMENT HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

2891Section (Reference26-303, toArizona printedRevised bill)Statutes, Pageis 3,amended betweento linesread: 5 and 6, insert:

"Sec.START_STATUTE26-303.

Emergency powers of governor;

termination;

authorization for adjutant general;

limitation;

extension;

report A.

During a state of war emergency, the governor may:

1.

Suspend the provisions of any statute prescribing the procedure for conduct of state business, or the orders or rules of any state agency, if the governor determines and declares proclaims that strict compliance with the provisions of any such statute, order or rule would in any way prevent, hinder or delay mitigation of the effects of the emergency.

TitleCommandeer 5,and chapterutilize 5.1,use articleany 2,property, Arizonaexcept Revisedfor Statutes,firearms isor amendedammunition or firearms or ammunition components, or personnel deemed necessary in carrying out the responsibilities vested in the office of the governor by addingthis sectionchapter 5-576,as tochief read:executive of the this state, and thereafter the this state shall pay reasonable compensation therefor for the property as follows:

5-576.(a) If property is taken for temporary use, the governor, within ten days after the taking, shall determine the amount of compensation to be paid therefor for the property.

Lottery;If the property is returned in a damaged condition, the governor, within ten days after its return, shall determine the amount of compensation to be paid for such damage.

advertising;(b) If the governor deems it necessary for the this state to take title to property under this section, the governor shall then cause the owner of the property to be notified thereof in writing by registered mail, postage prepaid, and then cause a copy of the notice to be filed with the secretary of state.

professional(c) sports;If the owner refuses to accept the amount of compensation fixed by the governor for the property referred to in subdivisions (a) and (b) of this paragraph, the amount of compensation shall be determined by appropriate proceedings in the superior court in the county where the property was originally taken.

prohibition THE LOTTERY MAY NOT, DIRECTLY OR INDIRECTLY, SPEND, ALLOCATE OR DIRECT ANY MONIES UNDER THE CONTROL OF THE LOTTERY TO ADVERTISE THE LOTTERY AT A PROFESSIONAL SPORTING EVENT OR IN CONJUNCTION WITH ANY PROFESSIONAL SPORTS TEAM OR FRANCHISE." Renumber to conform Between lines 33 and 34, insert:

"Sec.

4.

Title 16, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 16-132, to read:

16-132.

Voter registration assistance;

hunting, fishing, trapping licenses;

definitions A.

THE ARIZONA GAME AND FISH DEPARTMENT SHALL PROVIDE ASSISTANCE WITH VOTER REGISTRATION WHEN ACCEPTING APPLICATIONS FOR A LICENSE.

THE ARIZONA GAME AND FISH DEPARTMENT SHALL PROVIDE TO THE APPLICANT WITH ANY ONLINE APPLICATIONS FOR A LICENSE A LINK TO THE DEPARTMENT OF TRANSPORTATION'S VOTER REGISTRATION WEBPAGE.

EACH ARIZONA GAME AND FISH DEPARTMENT OFFICE THAT ACCEPTS APPLICATIONS FOR A LICENSE IN PERSON SHALL PROVIDE A VOTER REGISTRATION FORM TO THE APPLICANT.

THEDuring SECRETARYa OFstate STATEof SHALLwar PROVIDEemergency, TOthe THEgovernor DEPARTMENTshall VOTERhave REGISTRATIONcomplete FORMSauthority ANDover INSTRUCTIONSall TOagencies APPLICANTSof TOthe MAILstate COMPLETEDgovernment VOTERand Houseshall Amendmentsexercise all police power vested in this state by the constitution and laws of this state in order to H.B.effectuate the purposes of this chapter.

2891 REGISTRATION FORMS TO THE SECRETARY OF STATE.

THE SECRETARY OF STATE SHALL FORWARD THE COMPLETED VOTER REGISTRATION FORMS TO THE APPROPRIATE COUNTY RECORDER TO DETERMINE THE ELIGIBILITY OF THE APPLICANT AND, IF FOUND ELIGIBLE, TO ADD THE APPLICANT'S NAME TO THE VOTER REGISTRATION ROLLS.

VOTERThe REGISTRATIONpowers INFORMATIONgranted THATto ISthe GENERATEDgovernor PURSUANTby TOthis THISchapter SECTIONwith ANDrespect THATto ISa PUBLICstate INFORMATIONof ASwar OTHERWISEemergency PROVIDEDshall BYterminate LAWif SHALLthe NOTlegislature PROVIDEis ANYnot PUBLICin INDICATIONsession OFand THEthe SOURCEgovernor, OFwithin THESEtwenty-four REGISTRATIONS.hours after the beginning of such a state of war emergency, has not issued a call for an immediate special session of the legislature for the purpose of legislating on subjects relating to such a state of war emergency.

PERSONSThe WHOgovernor ACTmay PURSUANTproclaim TOa THISstate SECTIONof AREemergency, NOTwhich CONSIDEREDshall TOtake BEeffect DEPUTYimmediately REGISTRARSin UNDERan THISarea TITLEaffected ORor ANYlikely RULESto ADOPTEDbe UNDERaffected ITSif AUTHORITY.the governor finds that circumstances described in section 26-301, paragraph 15 exist.

FORDuring THEa PURPOSESstate OFof THISemergency: SECTION:

"DEPARTMENT"The MEANSgovernor THEshall ARIZONAhave GAMEcomplete ANDauthority FISHover DEPARTMENT.all agencies of the state government and the right to exercise, within the area designated, all police power vested in the this state by the constitution and laws of this state in order to effectuate the purposes of this chapter.

"LICENSE"The MEANSgovernor Amay HUNTING,direct FISHINGall ORagencies TRAPPINGof LICENSEthe ISSUEDstate BYgovernment THEto ARIZONAutilize GAMEuse ANDand FISHemploy DEPARTMENTstate PURSUANTpersonnel, TOequipment TITLEand 17,facilities CHAPTERfor 3."the Renumberperformance of to conformperform Pageany 6,and betweenall linesactivities 12designed to prevent or alleviate actual and 13,threatened insert:damage due to the emergency.  The governor may direct such agencies to provide supplemental services and equipment to political subdivisions to restore any services in order to provide for the health and safety of the citizens of the affected area.

"Sec.F.

except as provided in subsection G of this section, the powers granted to the governor by this chapter with respect to a state of emergency shall terminate when the state of emergency has been terminated by proclamation of the governor or by concurrent resolution of the legislature declaring it at an end.

G.

Beginning January 2, 2023, the governor may issue an initial proclamation with respect to a state of emergency for a public health emergency as described in section 36-787 for a period of not more than thirty days.  The governor may extend the state of emergency for not more than one hundred twenty days, but any extension may not be for a period of more than thirty days.

The state of emergency shall terminate after one hundred twenty days, unless the state of emergency is extended, in whole or in part, by passage of a concurrent resolution of the legislature.  The legislature may extend the state of emergency as many times as necessary by concurrent resolution, but any extension may not be for a period of more than thirty days.

If a state of emergency for a public health emergency is not extended pursuant to this subsection, the governor may not proclaim a new state of emergency based on the same conditions without the passage of a concurrent resolution by the legislature consenting to the new state of emergency.

H.

On the extension of a state of emergency for a public health emergency pursuant to subsection G of this section, the governor shall submit a written report to a joint committee of the health committees of the senate and the house of representatives, or their successor committees.  After the first sixty days of a public health emergency, the director of the department of health services and a representative of the governor's office shall provide a briefing to the joint committee, and the joint committee shall give the extension of the public health emergency a favorable or unfavorable review.

The joint committee shall provide the joint committee's recommendation to all members of the legislature and the governor.

The outcome of the joint committee's review shall be conspicuously posted on the governor's and the department of health service's public websites.

G.

I.

No provision of This chapter may does not limit, modify or abridge the powers vested in the governor under the constitution or statutes of this state.

H.

J.

If authorized by the governor, the adjutant general has the powers prescribed in this subsection.  If, in the judgment of the adjutant general, circumstances described in section 26-301, paragraph 15 exist, the adjutant general may:

1.

Exercise those powers pursuant to statute and gubernatorial authorization following the proclamation of a state of emergency under subsection D of this section.

2.

Incur obligations of one hundred thousand dollars $100,000 or less for each emergency or contingency payable pursuant to section 35-192 as though a state of emergency had been proclaimed under subsection D of this section.

I.

K.

The powers exercised by the adjutant general pursuant to subsection H  J of this section expire seventy-two hours after the adjutant general makes a determination under subsection H of this section.

J.

L.

Pursuant to the second amendment of the United States Constitution and article II, section 26, Constitution of Arizona, and notwithstanding any other law, the emergency powers of the governor, the adjutant general or any other official or person shall do not be construed to allow the imposition of additional restrictions on the lawful possession, transfer, sale, transportation, carrying, storage, display or use of firearms or ammunition or firearms or ammunition components.

K.

M.

Nothing in This section shall be construed to does not prohibit the governor, the adjutant general or other officials responding to an emergency from ordering the reasonable movement of stores of ammunition out of the way of dangerous conditions.

END_STATUTE Sec. 9.

Section 35-192, Arizona Revised Statutes, is amended to read:

START_STATUTE35-192.

Authorization for declaration of disaster;

authorization for liabilities and expenses;

priorities and limitations;

review and report of expenditures A.

The governor may declare an emergency arising from major disasters as provided in this section and incur liabilities therefor, regardless of whether or not the legislature is in session.

B.

When the governor, or the director of the division of emergency management in the department of emergency and military affairs pursuant to section 26-303, subsection H  J, determines that a contingency or disaster so justifies, and declares an emergency, specific liabilities and expenses provided for in this section are authorized to be incurred against and to be paid as claims against the state from unrestricted monies from the general fund to mitigate and meet contingencies and emergencies arising from:

1.

Invasions, hostile attacks, riots or insurrections.

2.

Epidemics of disease or plagues of insects.

3.

Floods or floodwaters.

4.

Acts of God or any major disaster.

5.

Wildland fires, but only after all necessary authorizations under section 37-1305 are exhausted.

C.

When authorized by the governor, specific liabilities and expenses provided for in this section may be incurred against and may be paid as claims against the state from unrestricted monies from the general fund to meet contingencies and emergencies arising from incidents relating to hazardous materials as defined in section 26-301 and search or rescue operations conducted pursuant to section 11-251.02, section 11-441, subsection C or section 26-306 subject to the limitations provided in section 35-192.01.  Within ninety days after monies are awarded under this section, the department of emergency and military affairs shall post in a prominent location on the department's official website the amount of monies awarded under this section, who received the monies and how the monies were spent.

D.

Liabilities and expenses authorized under subsection B of this section may be incurred for any of the emergencies or contingencies prescribed in subsection B of this section in the following order of priority:

1.

Reimbursement for expenses incurred to combat a menace to the health, lives or property of any considerable number of persons of the state, or to property of the state or its political subdivisions.

2.

Reimbursement for expenses incurred to repair damage to any property of the state.

3.

Reimbursement for expenses incurred to repair damage to any property of the political subdivisions of the state.

4.

Reimbursement for expenses incurred in search or rescue operations.

5.

Reimbursement for expenses incurred in emergency or disaster recovery activities or in matching federal disaster recovery programs.

Reimbursement for expenses for property loss mitigation measures or to match federal property loss mitigation programs.

E.

The auditor of the department of emergency and military affairs shall review liabilities incurred and expenditures made under this section and report to the state emergency council at ninety-day intervals during the emergency and conduct a final review of each emergency within ninety days after the termination of the emergency.

The state emergency council shall make a written report not later than September 1 of each year to the legislature of the actions of the state emergency council during the preceding fiscal year, including an itemized statement of expenditures for each emergency during the year.

The department of emergency and military affairs shall post the report in a prominent location on the department's official website.

F.

All liabilities incurred under this section shall be subject to the following limitations:

1.

No liability shall be incurred against the monies authorized without the approval of the governor, or the adjutant general pursuant to section 26-303, subsection H  J, for each contingency or emergency.

2.

Except as provided in paragraph 5 of this subsection, incurring of liabilities in excess of two hundred thousand dollars $200,000 in any single disaster or emergency shall not be made without consent of a majority of the members of the state emergency council.

3.

The aggregate amount of all liabilities incurred under this section shall not exceed four million dollars $4,000,000 for any fiscal year beginning July 1 through June 30.

Monies authorized for disasters and emergencies in prior fiscal years may be used in subsequent fiscal years only for the disaster or emergency for which they were authorized.

Monies authorized for disasters and emergencies in prior fiscal years, and expended in subsequent fiscal years for the disaster or emergency for which they were authorized, apply toward the four million dollar $4,000,000 liability limit for the fiscal year in which they were authorized.

4.

Notwithstanding the limitations in paragraph 3 of this subsection, monies that were previously obligated but not used for a declared emergency or disaster may be reallocated to an outstanding obligation for another declared emergency or disaster and shall remain available for expenditure for the outstanding obligation.

The reallocation of monies pursuant to this paragraph does not apply toward the four million dollar $4,000,000 liability limit of the fiscal year to which the monies were reallocated or in which the monies are spent.

5.

Liabilities in excess of $200,000 incurred by the Arizona department of forestry and fire management may be reimbursed with the approval of the governor or state emergency council.

The reimbursement shall be made pursuant to rules adopted pursuant to section 37-1305, subsection G or, if rules are not adopted pursuant to section 37-1305, subsection G, pursuant to rules adopted pursuant to subsection G of this section.

5.

6.

An obligation of monies under this section may be made only when one or more of the following conditions exist:

(a) No appropriation or other authorization is available to meet the contingency or emergency.

(b) An appropriation is insufficient to meet the contingency or emergency.

(c) Federal monies available for such contingency or emergency require the use of state or other public monies.

G.

The director of the division of emergency management in the department of emergency and military affairs shall develop rules for administering the monies authorized for liabilities under this section, subject to approval by the governor.

END_STATUTE Sec. 10.

36-405.START_STATUTE36-405.

The director shall adopt rules to establish minimum standards and requirements for the construction, modification CONSTRUCTING,constructing, MODIFYINGmodifying and licensure of LICENSINGlicensing health care institutions necessary to ensure the public health, safety and welfare.

The standards and requirements shall relate to the construction, equipment, sanitation, staffing for medical, nursing and personal care services, and recordkeeping pertaining to the administration of ADMINISTERINGadministering medical, nursing, behavioral health and personal care services, in accordance with generally accepted practices of health care.care.  The director shall use the current standards adopted by the joint commission on accreditation of hospitals and the commission on accreditation of the American osteopathic association or those adopted by any recognized accreditation organization approved by the department as guidelines in prescribing minimum standards and requirements under this section.

The director shall use the current standards adopted by the joint commission on accreditation of hospitals and the commission on accreditation of the American osteopathic association or those adopted by any recognized accreditation organization approved by the department as -2- House Amendments to H.B.

2891 guidelines in prescribing minimum standards and requirements under this section.

Prescribe standards for the selection of SELECTINGselecting health care-care-related related demonstration projects.

-3-C. House Amendments to H.B.

2891 C.

THEThe DIRECTORdirector MAYmay ADOPTAdopt RULESrules REGARDINGregarding THEthe COLLECTIONcollection OFof DATAdata FROMfrom HEALTHhealth CAREcare INSTITUTIONS.institutions.

Sec.END_STATUTE Sec. 11.

7.

36-787.START_STATUTE36-787.

During a state of emergency or state of war emergency declared PROCLAIMEDproclaimed by the governor in which there is an occurrence or imminent threat of an illness or health condition THATthat ISis caused by bioterrorism, an epidemic or pandemic disease or a highly fatal infectious agent or biological toxin and that poses a substantial risk of a significant number of human fatalities or incidents of permanent or long-term disability, the department shall coordinate all matters pertaining to the public health emergency response of the state.state.  The department has primary jurisdiction, responsibility and authority for:

The department has primary jurisdiction, responsibility and authority for:

-4-3. House Amendments to H.B.

2891 3.

Establishing, in conjunction with applicable professional licensing boards, a process for TOto GRANTgrant Aa temporary waiver of the professional licensure requirements necessary for the implementation of TOto IMPLEMENTimplement any measures required to adequately address the state of emergency or state of war emergency.

Granting temporary waivers of health care institution licensure requirements necessary for implementation of TOto IMPLEMENTimplement any measures required to adequately address the state of emergency or state of war emergency.

In addition to the authority provided in subsections A and B OFof THISthis SECTION,section, during a state of emergency or state of war emergency in which there is an occurrence or the imminent threat of smallpox, plague, viral hemorrhagic fevers or a highly contagious and highly fatal disease with transmission characteristics similar to smallpox, the governor, in consultation with the director of the department of health services, may issue orders that:

-5-1. House Amendments to H.B.

2891Mandate 1.treatment or vaccination of persons who are diagnosed with an illness resulting from exposure or who are reasonably believed to have been exposed or who may reasonably be expected to be exposed.

MandateA treatmentperson ormay vaccinationrefuse ofa personsvaccination whorequired areby diagnosedthis withparagraph ANbased illnesson resultingthe fromperson's exposurepersonal orbeliefs. who are reasonably believed to have been exposed or who may reasonably be expected to be exposed.

A PERSON MAY REFUSE A VACCINATION REQUIRED BY THIS PARAGRAPH BASED ON THE PERSON'S PERSONAL BELIEFS.

Diseases subject to this section do not include acquired immune deficiency syndrome or ANYany other infection caused by the human immunodeficiency virus.

If during a state of emergency or state of war emergency the public health is not endangered nothing in this title shall DOESdoes NOTnot authorize the department or any of its officers or representatives to impose on any person against the person's will any mode of treatment, provided that sanitary or preventive measures and quarantine laws are complied with by the person.

Nothing in This title shall DOESdoes NOTnot authorize the department or any of its officers or representatives to impose on any person contrary to his THEthe PERSON'Sperson's religious concepts any mode of treatment, provided that sanitary or preventive measures and quarantine laws are complied with by the person.

At the governor's direction, the department may use reasonable efforts to assist the persons and institutions affected by the state of emergency or state of war emergency declared pursuant to this section in seeking reimbursement of costs incurred as a result of providing services related to the implementation of IMPLEMENTINGimplementing isolation and quarantine under this article to the extent these services are not otherwise subject to reimbursement."reimbursement. Renumber to conform Page 17, lines 26 and 27, strike "Contracts for goods and services approved by the board are not subject to title 41, chapter 23." insert "Contracts for -6- House Amendments to H.B.

2891END_STATUTE goodsSec. 12. and services approved by the board are not subject to title 41, chapter 23." Page 19, strike lines 37 through 45 Strike page 20 Page 21, strike lines 1 through 34 Renumber to conform Page 24, between lines 30 and 31, insert:

"Sec.Section 38-803, Arizona Revised Statutes, is amended to read:

15.START_STATUTE38-803.

Powers and duties of the board;

reporting requirements A.

The board, in the administration, management and operation of the plan and fund, shall:

1.

Account for the operation, administration and investment expenses and allocate them against investment income.

2.

Contract on a fee basis with an actuary to make an actuarial valuation of the plan based on the valuation method and valuation assumptions recommended by the actuary and approved by the board.

The actuary shall be a member of the American academy of actuaries.

3.

Contract on a fee basis with an independent auditing firm to make an annual audit of the accounting records of the fund and file a copy of the audit with the auditor general.

4.

Invest the monies in the fund as provided in article 4 of this chapter.

5.

Within a period of six months after the close of each fiscal year, submit a detailed report of the operation and the investment performance of the plan to the governor, the legislature and the members of the plan.

6.

By November 1 of each year provide a preliminary report and by December 31 1 of each year provide a final report to the governor, the speaker of the house of representatives and the president of the senate on the contribution rate for the ensuing fiscal year.

B.

The board, in the administration, management and operation of the plan and fund, may:

1.

Employ services as it deems necessary.

2.

Either keep invested monies separate or commingle invested monies as it deems appropriate.

3.

Delegate authority as it deems necessary and prudent to the administrator employed pursuant to section 38-848, subsection M, paragraph 6.

4.

Do all acts, whether expressly authorized, that are deemed necessary or proper for the protection of the fund.

END_STATUTE Sec. 13.

Section 38-832, Arizona Revised Statutes, is amended to read:

START_STATUTE38-832.

Defined contribution system;

annual report;

quarterly statements A.

The board shall establish, design and administer a defined contribution system to provide for the retirement of elected officials.

B.

The purpose of this article is to provide a defined contribution system that is fully funded on a current basis from employer and member contributions.

C.

The legislature intends that the defined contribution system for members under this article be designed to be a qualified government plan under section 401(a) of the internal revenue code, as amended, or successor provisions of law, and be exempt from taxation under section 501 of the internal revenue code.

The board may adopt any additional provisions to the defined contribution system that are necessary to fulfill this intent.

On or before December 31, 2013, the board shall submit to the internal revenue service a request for a determination letter that the defined contribution system is a plan qualified under section 401(a) of the internal revenue code and a private letter ruling that all member contributions that are picked up by the employer as provided in section 38-833 shall be treated as employer contributions pursuant to section 414(h) of the internal revenue code.

D.

The board may:

1.

Employ the services of the third-party administrator that is contracted on September 13, 2013 to administer the supplemental defined contribution plan pursuant to article 8 of this chapter to also administer the defined contribution system.

2.

Employ other services it deems necessary, including legal services, for the operation and administration of the defined contribution system.

3.

Perform all acts, whether or not expressly authorized, that it deems necessary and proper for the operation and protection of the system.

E.

The board shall adopt policies regarding the defined contribution system, including the administration of the member and employer contributions, investment options, termination in the defined contribution system, the administration of the payout options under the defined contribution system and the administration of the member distributions.

F.

On receipt of the determination letter and private letter ruling from the internal revenue service, the board shall participate in a competitive bid process at least once every five years to contract with a private person or any qualified company or companies to administer the defined contribution system established under this section.

G.

Any contract for a third-party administrator of the defined contribution system shall include competitive fees, quarterly meetings with the public safety personnel retirement system, annual updates to the board on the status of the defined contribution system and quarterly statements to each member.  On or before December 31 of each year, the board shall report the status of the defined contribution system to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee.

END_STATUTE Sec. 14.

Section 38-840.01, Arizona Revised Statutes, is amended to read:

START_STATUTE38-840.01.

EODC disability program;

administration;

power and duties of the board;

hearing;

annual report A.

The elected officials' defined contribution retirement system disability program is established for members of the elected officials' defined contribution retirement system.

The board shall administer the EODC disability program.

B.

The board may delegate authority to administer the program as it deems necessary and prudent to the administrator employed pursuant to section 38-848.

C.

The board, in the administration, management and operation of the program, shall:

1.

Account for the operation, administration and investment expenses and allocate them against investment income.

2.

Contract on a fee basis with an actuary to make an actuarial valuation of the program based on the valuation method and valuation assumptions recommended by the actuary and approved by the board.

The actuary shall be a member of the American academy of actuaries.

3.

Contract on a fee basis with an independent auditing firm to make an annual audit of the accounting records of the EODC disability program trust fund and file a copy of the audit with the auditor general.

4.

Invest the monies in the EODC disability program trust fund as provided in article 4 of this chapter.

5.

On or before December 31 1 of each year, submit to the governor, the speaker of the house of representatives and the president of the senate a detailed report of the operation and the investment performance of the program that includes the contribution rate for the ensuing fiscal year.

D.

The board, in the administration, management and operation of the program, may:

1.

Employ services as it deems necessary.

2.

Either keep invested monies separate or commingle invested monies as it deems appropriate.

3.

Do all acts, whether expressly authorized, that may be deemed necessary or proper for the protection of the EODC disability program trust fund.

4.

Determine the rights, benefits or obligations of any person under this article and afford any person dissatisfied with a determination of the person's rights, benefits or obligations under this article with a hearing on the determination.

END_STATUTE Sec. 15.

Section 38-848, Arizona Revised Statutes, is amended to read:

START_STATUTE38-848.

Board of trustees;

powers and duties;

reporting requirements;

independent trust fund;

administrator;

agents and employees;

advisory committee A.

Beginning January 1, 2017, The board of trustees shall consist of nine members and shall have the rights, powers and duties that are set forth in this section.  The term of office of members shall be five years to expire on the third Monday in January of the appropriate year.

The board shall select a chairperson from among its members each calendar year.  Members are eligible to receive compensation in an amount of $50 a day, but not to exceed $1,000 in any one fiscal year, and are eligible for reimbursement of expenses pursuant to chapter 4, article 2 of this title.

Beginning January 1, 2017, The board consists of the following members appointed as follows:

1.

Two members representing law enforcement, one of whom is appointed by the president of the senate and one of whom is appointed by the governor.

A statewide association representing law enforcement in this state shall forward nominations to the appointing elected officials, providing at least three nominees for each position.  At least one of the members appointed under this paragraph shall be an elected local board member.

2.

Two members representing firefighters, one of whom is appointed by the speaker of the house of representatives and one of whom is appointed by the governor.

A statewide association representing firefighters in this state shall forward nominations to the appointing elected officials, providing at least three nominees for each position.  At least one of the members appointed under this paragraph shall be an elected local board member.  3.

Three members representing cities and towns in this state, one of whom is appointed by the president of the senate, one of whom is appointed by the speaker of the house of representatives and one of whom is appointed by the governor.

An association representing cities and towns in this state shall forward nominations to the appointing elected officials, providing at least three nominees for each position.

These nominees shall represent taxpayers or employers and may not be members of the system.

4.

One member who represents counties in this state and who is appointed by the governor.

An association representing county supervisors in this state shall forward nominations to the governor, providing at least three nominees for the position.

These nominees shall represent taxpayers or employers and may not be members of the system.

5.

One member who is appointed by the governor from a list of three nominees forwarded by the board.

The board shall select the nominees to forward to the governor from a list of at least five nominees received from the advisory committee.

B.

Each appointment made pursuant to subsection A of this section shall be chosen from the list of nominees provided to the appointing elected official.

For any appointment made by the governor pursuant to subsection A of this section, before appointment by the governor, a prospective member of the board shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544.

The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

A board member may be reappointed.  Notwithstanding section 38-295, a board member may be removed from office only for cause by the appointing power or because the board member has vacated the member's seat on the board.  A board member who is removed for cause shall be provided written notice and an opportunity for a response.  The appointing power may remove a board member based on written findings that specify the reason for removal.  Any vacancy that occurs other than by expiration of a term shall be filled for the balance of the term.

All vacancies shall be filled in the same manner as the initial appointment.  A board member vacates the office if the member either:

1.

Is absent without excuse from three consecutive regular meetings of the board.

2.

Resigns, dies or becomes unable to perform board member duties.

C.

The members of the board who are appointed pursuant to subsection A of this section and who are not members of the system shall be independent, qualified professionals who are responsible for the performance of fiduciary duties and other responsibilities required to preserve and protect the fund and shall have at least ten years' substantial experience as any one or a combination of the following:

1.

A portfolio manager acting in a fiduciary capacity.

2.

A securities analyst.

3.

A senior executive or principal of a trust institution, investment organization or endowment fund acting either in a management or an investment-related capacity.

4.

A chartered financial analyst in good standing as determined by the chartered financial analyst institute.

5.

A current or former professor or instructor at the college or university level in the field of economics, finance, actuarial science, accounting or pension-related subjects.

6.

An economist.

7.

Any other senior executive engaged in the field of public or private finances or with experience with public pension systems.

8.

A senior executive in insurance, banking, underwriting, auditing, human resources or risk management.

D.

All monies in the fund shall be deposited and held in a public safety personnel retirement system depository.  Monies in the fund shall be disbursed from the depository separate and apart from all monies or funds of this state and the agencies, instrumentalities and subdivisions of this state, except that the board may commingle the assets of the fund and the assets of all other plans entrusted to its management in one or more group trusts, subject to the crediting of receipts and earnings and charging of payments to the appropriate employer, system or plan.

The monies shall be secured by the depository in which they are deposited and held to the same extent and in the same manner as required by the general depository law of this state.

For purposes of making the decision to invest in securities owned by the fund or any plan or trust administered by the board, the fund and assets of the plans and the plans' trusts are subject to the sole management of the board for the purpose of this article except that, on the board's election to invest in a particular security or make a particular investment, the assets comprising the security or investment may be chosen and managed by third parties approved by the board.  The board may invest in portfolios of securities chosen and managed by a third party.  The board's decision to invest in securities such as mutual funds, commingled investment funds, exchange traded funds, private equity or venture capital limited partnerships, real estate limited partnerships or limited liability companies and real estate investment trusts whose assets are chosen and managed by third parties is not an improper delegation of the board's investment authority.

E.

All contributions under this system and other retirement plans that the board administers shall be forwarded to the board and shall be held, invested and reinvested by the board as provided in this article.

All property and monies of the fund and other retirement plans that the board administers, including income from investments and from all other sources, shall be retained for the exclusive benefit of members, as provided in the system and other retirement plans that the board administers, and shall be used to pay benefits to members or their beneficiaries or to pay expenses of operation and administration of the system and fund and other retirement plans that the board administers.

F.

The board shall have the full power in its sole discretion to invest and reinvest, alter and change the monies accumulated under the system and other retirement plans and trusts that the board administers as provided in this article.

In addition to its power to make investments managed by others, the board may delegate the authority the board deems necessary and prudent to investment management pursuant to section 38-848.03, as well as to the administrator, employed by the board pursuant to subsection M, paragraph 6 of this section, and any deputy or assistant administrators to invest the monies of the system and other retirement plans and trusts that the board administers if the administrator, investment management and any deputy or assistant administrators follow the investment policies that are adopted by the board.

The board may commingle securities and monies of the fund, the elected officials' retirement plan, the corrections officer retirement plan and other plans or monies entrusted to its care, subject to the crediting of receipts and earnings and charging of payments to the account of the appropriate employer, system or plan.

In making every investment, the board shall exercise the judgment and care under the circumstances then prevailing that persons of ordinary prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income from their funds as well as the probable safety of their capital, if:

1.

Not more than eighty percent of the combined assets of the system or other plans that the board manages is invested at any given time in corporate stocks, based on the cost value of the stocks irrespective of capital appreciation.

2.

Not more than five percent of the combined assets of the system or other plans that the board manages is invested in corporate stock issued by any one corporation, other than corporate stock issued by corporations chartered by the United States government or corporate stock issued by a bank or insurance company.

3.

Not more than five percent of the voting stock of any one corporation is owned by the system and other plans that the board administers, except that this limitation does not apply to membership interests in limited liability companies.

4.

Corporate stocks and exchange traded funds eligible for direct purchase are restricted to stocks and exchange traded funds that, except for bank stocks, insurance stocks, stocks acquired for coinvestment in connection with the system's or the plans' or trusts' commingled investments and interests in limited liability companies and mutual funds, are any of the following:

(a) Listed or approved on issuance for listing on an exchange registered under the securities exchange act of 1934, as amended (15 United States Code sections 78a through 78pp).

(b) Designated or approved on notice of issuance for designation on the national market system of a national securities association registered under the securities exchange act of 1934, as amended (15 United States Code sections 78a through 78pp).

(c) Listed or approved on issuance for listing on an exchange registered under the laws of this state or any other state.

(d) Listed or approved on issuance for listing on an exchange of a foreign country with which the United States is maintaining diplomatic relations at the time of purchase, except that not more than twenty percent of the combined assets of the system and other plans that the board manages is invested in foreign securities, based on the cost value of the stocks irrespective of capital appreciation.

(e) An exchange traded fund that is recommended by the chief investment officer of the system, that is registered under the investment company act of 1940 (15 United States Code sections 80a-1 through 80a-64) and that is both traded on a public exchange and based on a publicly recognized index.

G.

Notwithstanding any other law, the board is not required to invest in any type of investment that is dictated or required by any entity of the federal government and that is intended to fund economic development projects, public works or social programs, but may consider such economically targeted investments pursuant to its fiduciary responsibility.  The board, on behalf of the system and all other plans or trusts the board administers, may invest in, lend monies to or guarantee the repayment of monies by a limited liability company, limited partnership, joint venture, partnership, limited liability partnership or trust in which the system and plans or trusts have a financial interest, whether the entity is closely held or publicly traded and that, in turn, may be engaged in any lawful activity, including venture capital, private equity, the ownership, development, management, improvement or operation of real property and any improvements or businesses on real property or the lending of monies.

H.

Conference call meetings of the board that are held for investment purposes only are not subject to chapter 3, article 3.1 of this title, except that the board shall maintain minutes of these conference call meetings and make them available for public inspection within twenty-four hours after the meeting.  The board shall review the minutes of each conference call meeting and shall ratify all legal actions taken during each conference call meeting at the next scheduled meeting of the board.

I.