Arizona Contractor Licensing Law

Arizona Code · 58 sections

The following is the full text of Arizona’s contractor licensing law statutes as published in the Arizona Code. For the official version, see the Arizona Legislature.

A.R.S. § 11-00251

11-251 - Powers of board

11-251. Powers of board

The board of supervisors, under such limitations and restrictions as are prescribed by law, may:

Supervise the official conduct of all county officers and officers of all districts and other subdivisions of the county charged with assessing, collecting, safekeeping, managing or disbursing the public revenues, see that the officers faithfully perform their duties and direct prosecutions for delinquencies, and, when necessary, require the officers to renew their official bonds, make reports and present their books and accounts for inspection.
Divide the counties into districts or precincts as required by law, change the districts or precincts and create others as convenience requires.
Establish, abolish and change election precincts, appoint inspectors and judges of elections, canvass election returns, declare the result and issue certificates thereof.
Lay out, maintain, control and manage public roads, ferries and bridges within the county and levy such tax for that purpose as may be authorized by law.
Provide for the care and maintenance of the sick of the county, erect and maintain hospitals for that purpose and, in its discretion, provide a farm in connection with the county hospital and adopt ordinances for working the farm.
Provide suitable rooms for county purposes.
Purchase, receive by donation or lease real or personal property necessary for the use of the county prison and take care of, manage and control the property, but a purchase of real property shall not be made unless the value has been previously estimated by three disinterested citizens of the county, appointed by the board for that purpose, and not more than the appraised value shall be paid for the property.
Cause to be erected and furnished a courthouse, jail and hospital and other buildings as necessary, and construct and establish a branch jail, when necessary, at a point distant from the county seat.
Sell at public auction, after thirty days' previous notice given by publication in a newspaper of the county, stating the time and place of the auction, and convey to the highest bidder, for cash or contract of purchase extending not more than ten years after the date of sale and on such terms and for such consideration as the board shall prescribe, any property belonging to the county that the board deems advantageous for the county to sell, or that the board deems unnecessary for use by the county, and shall pay the proceeds of the sale into the county treasury for use of the county, except that personal property need not be sold but may be used as a trade-in on the purchase of personal property when the board deems this disposition of the personal property to be in the best interests of the county.Â If the property for sale is real property, the board shall have the property appraised by an appraiser who is licensed or certified pursuant to title 32, chapter 36. The appraiser shall establish a market value as defined in section 28-7091 for the property. The minimum acceptable bid for the purchase of the property shall be at least ninety percent of the market value, except that if the property has no market value or a net value as defined in section 28-7095, subsection F of $10,000 or less, the value of the property may be justified by a market analysis that is based on comparable sales. The notice regarding the sale of real property shall be published in the county where the property is situated and may be published in one or more other counties, and shall contain, among other things, the market value, the minimum acceptable sale price, and the common and legal description of the real property. Notwithstanding the requirement for a sale at public auction prescribed in this paragraph, a county, with unanimous consent of the board and without a public auction, may sell or lease any county property to any other duly constituted governmental entity, including the state, cities, towns and other counties. A county, with unanimous consent of the board and without public auction, may grant an easement on county property for public purposes to a utility as defined in section 40-491. A county, with unanimous consent of the board and without public auction, may sell or lease any county property for a specific use to any solely charitable, social or benevolent nonprofit organization incorporated or operating in this state. A county may dispose of surplus equipment and materials that have little or no value or that are unauctionable in any manner authorized by the board.
Examine and exhibit the accounts and performance of all officers having the care, management, collection or disbursement of monies belonging to the county or appropriated by law or otherwise for the use and benefit of the county. The working papers and other audit files in an examination and audit of the accounts and performance of a county officer are not public records and are exempt from title 39, chapter 1. The information contained in the working papers and audit files prepared pursuant to a specific examination or audit is not subject to disclosure, except to the county attorney and the attorney general in connection with an investigation or action taken in the course of their official duties.
Examine, settle and allow all accounts legally chargeable against the county, order warrants to be drawn on the county treasurer for that purpose and provide for issuing the warrants.
Levy such tax annually on the taxable property of the county as may be necessary to defray the general current expenses thereof, including salaries otherwise unprovided for, and levy such other taxes as are required to be levied by law.
Equalize assessments.
Direct and control the prosecution and defense of all actions to which the county is a party, and compromise them.
Insure the county buildings in the name of and for the benefit of the county.
Fill by appointment all vacancies occurring in county or precinct offices.
Adopt provisions necessary to preserve the health of the county, and provide for the expenses thereof.
With the approval of the department of health services, contract with any qualified person to provide all or part of the health services, funded through the department of health services with federal or state monies, that the board in its discretion extends to residents of the county.
Contract for county printing and advertising, and provide books and stationery for county officers.
Provide for rebinding county records, or, if necessary, the transcribing of county records.
Make and enforce necessary rules and regulations for the government of its body, the preservation of order and the transaction of business.
Adopt a seal for the board, a description and impression of which shall be filed by the clerk in the office of the county recorder and the secretary of state.
Establish, maintain and conduct or aid in establishing, maintaining and conducting public aviation fields, purchase, receive by donation or lease any property necessary for that purpose, lease, at a nominal rental if desired, sell such aviation fields or property to the United States or any department, or sell or lease such aviation fields to a city, exchange lands acquired pursuant to this section for other lands, or act in conjunction with the United States in maintaining, managing and conducting all such property. If any such property or part of that property is not needed for these purposes, it shall be sold by the board and the proceeds shall be paid into the general fund of the county.
Acquire and hold property for the use of county fairs and conduct, take care of and manage them.
Authorize the sheriff to offer a reward, not exceeding $10,000 in one case, for information leading to the arrest and conviction of persons charged with crime.
Contract for the transportation of insane persons to the state hospital or direct the sheriff to transport such persons. The county is responsible for such expense to the extent the expense is not covered by any third-party payor.
Provide for the reasonable expenses of burial for deceased indigents as provided in section 36-831 and maintain a permanent register of deceased indigents, including name, age and date of death, and when burial occurs, the board shall mark the grave with a permanent marker giving the name, age and date of birth, if known.
Sell or grant to the United States the title or interest of the county in any toll road or toll train in or partly within a national park, on such terms as may be agreed on by the board and the secretary of the interior of the United States.
Enter into agreements for acquiring rights-of-way, construction, reconstruction or maintenance of highways in their respective counties, including highways that pass through Indian reservations, with the government of the United States, acting through its duly authorized officers or agents pursuant to any act of Congress, except that the governing body of any Indian tribe whose lands are affected must consent to the use of its land, and any such agreements entered into before June 26, 1952 are validated and confirmed.
Do and perform all other acts and things necessary to the full discharge of its duties as the legislative authority of the county government, including receiving and accepting payment of monies by credit card or debit card, or both.Â Any fees or costs incurred by the use of the credit or debit card shall be paid by the person tendering payment unless the charging entity determines that the financial benefits of accepting credit cards or debit cards exceeds the additional processing fees.
Make and enforce all local, police, sanitary and other regulations not in conflict with general law.
Budget for funds for foster home care during the school week for children with intellectual disabilities and children with other disabilities who reside within the county and attend a school for students with disabilities in a city or town within the county.
Do and perform all acts necessary to enable the county to participate in the economic opportunity act of 1964 (P.L. 88-452; 78 Stat. 508), as amended.
Provide a plan or plans for its employees that provide tax deferred annuity and deferred compensation plans as authorized pursuant to title 26, United States Code. Such plans shall allow voluntary participation by all employees of the county. Participating employees shall authorize the board to make reductions in their remuneration as provided in an executed deferred compensation agreement.
Adopt and enforce standards for shielding and filtration of commercial or public outdoor portable or permanent light fixtures in proximity to astronomical or meteorological laboratories.
Subject to the prohibitions, restrictions and limitations as set forth in section 11-812, adopt and enforce standards for excavation, landfill and grading to prevent unnecessary loss from erosion, flooding and landslides.
Make and enforce necessary ordinances for the operation and licensing of any establishment not in the limits of an incorporated city or town in which is carried on the business of providing baths, showers or other forms of hydrotherapy or any service of manual massage of the human body.
Provide pecuniary compensation as salary or wages for overtime work performed by county employees, including those employees covered by title 23, chapter 2, article 9.Â In so providing, the board may establish salary and wage plans incorporating classifications and conditions prescribed by the federal fair labor standards act.
Establish, maintain and operate facilities that provide for physical evaluation, diagnosis and treatment of patients and that do not keep patients overnight as bed patients or treat patients under general anesthesia.
Enact ordinances under its police authority prescribing reasonable curfews in the entire unincorporated area or any area less than the entire unincorporated area of the county for minors and fines not to exceed the fine for a petty offense for violation of such ordinances.Â This paragraph does not require a request from an association or a majority of the residents of an area before the board may enact an ordinance applicable to the entire or any portion of the unincorporated area. An ordinance enacted pursuant to this paragraph shall provide that a minor is not violating a curfew if the minor is accompanied by a parent, a guardian or an adult having supervisorial custody, is on an emergency errand or has been specifically directed to the location on reasonable, legitimate business or some other activity by the parent, guardian or adult having supervisorial custody.Â If no curfew ordinance is applicable to a particular unincorporated area of the county, the board may adopt a curfew ordinance on the request or petition of either:

(a) A homeowners' association that represents a majority of the homeowners in the area covered by the association and to which the curfew would apply.

(b) A majority of the residents of the area to which the curfew would apply.

Lease or sublease personal property owned by the county to other political subdivisions of this state to be used for a public purpose.
In addition to the agreements authorized by section 11-651, enter into long-term agreements for the purchase of personal property, provided that the board may cancel any such agreement at the end of a fiscal year, at which time the seller may repossess the property and the agreement is deemed terminated.
Make and enforce necessary ordinances not in conflict with the laws of this state to regulate off-road recreational motor vehicles that are operated within the county on public lands without lawful authority or on private lands without the consent of the lawful owner or that generate air pollution.Â For the purposes of this paragraph, "off-road recreational motor vehicle" means three and four wheel vehicles manufactured for recreational nonhighway all-terrain travel.
Acquire land for roads, drainage ways and other public purposes by exchange without public auction, except that notice shall be published thirty days before the exchange, listing the property ownership and descriptions.
Purchase real property for public purposes, provided that final payment is made not later than five years after the date of purchase.
Lease-purchase real property and improvements for real property for public purposes, provided that final payment is made not later than twenty-five years after the date of purchase. Any increase in the final payment date from fifteen years up to the maximum of twenty-five years shall be made only on unanimous approval by the board of supervisors.
Make and enforce ordinances for the protection and disposition of domestic animals subject to inhumane, unhealthful or dangerous conditions or circumstances. An ordinance enacted pursuant to this paragraph shall not restrict or limit the authority of the game and fish commission to regulate the taking of wildlife. This paragraph does not limit or restrict the authority granted to cities, towns or counties pursuant to section 13-2910. For the purposes of this paragraph, "domestic animal" means an animal kept as a pet and not primarily for economic purposes.
If a part of a parcel of land is to be taken for roads, drainage, flood control or other public purposes and the board and the affected property owner determine that the remainder will be left in such a condition as to give rise to a claim or litigation concerning severance or other damage, acquire the whole parcel by purchase, donation, dedication, exchange, condemnation or other lawful means, and the remainder may be sold or exchanged for other properties needed for any public purpose.
Make and enforce necessary rules providing for the reimbursement of travel and subsistence expenses of members of county boards, commissions and advisory committees when acting in the performance of their duties, if the board, commission or advisory committee is authorized or required by federal or state law or county ordinance, and the members serve without compensation.
Provide a plan or plans for county employee benefits that allow for participation in a cafeteria plan that meets the requirements of the United States internal revenue code of 1986.
Provide for fringe benefits for county employees, including sick leave, personal leave, vacation and holiday pay and jury duty pay.
Make and enforce ordinances that are more restrictive than state requirements to reduce or encourage the reduction of carbon monoxide and ozone levels, provided an ordinance does not establish a standard for vehicular emissions, including ordinances to reduce or encourage the reduction of the commuter use of motor vehicles by employees of the county and employees whose place of employment is in unincorporated areas of the county.
Make and enforce ordinances to provide for the reimbursement of up to one hundred percent of the cost to county employees of public bus or van pool transportation to and from their place of employment.
Lease for public purposes any real property, improvements for real property and personal property under the same terms and conditions, to the extent applicable, as are specified in sections 11-651 and 11-653 for lease-purchases.
Enact ordinances prescribing regulation of alarm systems and providing for civil penalties to reduce the incidence of false alarms at business and residential structures relating to burglary, robbery, fire and other emergencies not within the limits of an incorporated city or town.
In addition to paragraph 9 of this section, and notwithstanding section 23-504, sell or dispose of, at no less than market value, county personal property that the board deems no longer useful or necessary through a retail outlet or to another government entity if the personal property has a market value of not more than $1,000, or by retail sale or private bid, if the personal property has a market value of not more than $15,000.Â Notice of sales in excess of $1,000 shall include a description and sale price of each item and shall be published in a newspaper of general circulation in the county, and for thirty days after notice other bids may be submitted that exceed the sale price by at least five percent.Â The county shall select the highest bid received at the end of the thirty-day period.
Sell services, souvenirs, sundry items or informational publications that are uniquely prepared for use by the public and by employees and license and sell information systems and intellectual property developed from county resources that the county is not obligated to provide as a public record.
On unanimous consent of the board of supervisors, license, lease or sell any county property pursuant to paragraphs 56 and 57 of this section at less than market value to any other governmental entity, including this state, cities, towns, public improvement districts or other counties within or outside of this state, or for a specific purpose to any charitable, social or benevolent nonprofit organization incorporated or operating in this state.
On unanimous consent of the board of supervisors, provide technical assistance and related services to a fire district pursuant to an intergovernmental agreement.
Adopt contracting procedures for the operation of a county health system pursuant to section 11-291. Before the adoption of contracting procedures the board shall hold a public hearing. The board shall publish one notification in a newspaper of general circulation in the county seat at least fifteen days before the hearing.
Enter into an intergovernmental agreement pursuant to chapter 7, article 3 of this title for a city or town to provide emergency fire or emergency medical services pursuant to section 9-500.23 to a county island as defined in section 11-251.12. The board may charge the owners of record in the county island a fee to cover the cost of an intergovernmental agreement that provides fire and emergency medical services.
In counties that employ or have designated an animal control county enforcement agent pursuant to section 11-1005, enter into agreements with foundations or charitable organizations to solicit donations, property or services, excluding enforcement or inspection services, for use by the county enforcement agent solely to perform nonmandated services and to fund capital improvements for county animal control, subject to annual financial and performance audits by an independent party as designated by the county board of supervisors.Â For the purposes of this paragraph, nonmandated services are limited to low cost spay and neuter services, public education and outreach efforts, pet adoption efforts, care for pets that are victims of cruelty or neglect and support for volunteer programs.
Adopt and provide for the enforcement of ordinances prohibiting open fires and campfires on designated lands in the unincorporated areas of the county when a determination of emergency is issued by the county emergency management officer and the board deems it necessary to protect public health and safety on those lands.
Fix the amount of license fees to be paid by any person, firm, corporation or association for carrying on any game or amusement business in unincorporated areas of the county and prescribe the method of collection or payment of those fees, for a stated period in advance, and fix penalties for failure to comply by fine. This article does not authorize any county to require an occupational license or fee for any activity if state law precludes requiring such a license or fee.
Adopt and enforce ordinances for the prevention, abatement and removal of graffiti, providing that any restrictions on the retail display of potential graffiti tools be limited to any of the following, as determined by the retail business:

(a) In a place that is in the line of sight of a cashier or in the line of sight from a work station normally continuously occupied during business hours.

(b) In a manner that makes the product accessible to a patron of the business establishment only with the assistance of an employee of the establishment.

Adopt ordinances and fees related to the implementation of a local stormwater quality program pursuant to title 49, chapter 2, article 11.
Enter into agreements with federal, state and local governments for the acceptance, management and distribution of federal funds related to projects to increase water supply and availability to any of the following:

(a) A municipal water provider as defined in section 48-5901.

(b) An irrigation district for agricultural use within the county.

Participate in water reuse and recycling programs and regional wastewater recharge projects and related infrastructure.

A.R.S. § 11-00292

11-292 - Medical care; definition

11-292. Medical care; definition

A. The board of supervisors, subject to the applicable provisions of title 42, chapter 17, articles 2 and 3, shall include in its annual budget an amount equal to fifty percent of the amount budgeted by the county board of supervisors or the amount expended, whichever is less, for the hospitalization and medical care of the indigent sick pursuant to this article for fiscal year 1980-1981, except for Yuma and La Paz counties. The contribution amounts of those counties shall be equal to the amount Yuma county would have made pursuant to this subsection if a division had not occurred apportioned between the counties.Â The office of the auditor general shall determine the amount Yuma county would otherwise have included if a division had not occurred and shall then determine the contribution amounts of Yuma and La Paz counties based on the proportionate share of the estimated population in these counties as of July 1, 1982.

B. For fiscal year 1994-1995, and for each fiscal year thereafter, the state treasurer shall withhold an amount sufficient to meet the county portion of the nonfederal costs of providing long-term care system services, pursuant to title 36, chapter 29, article 2, excluding services to persons with developmental disabilities, from monies otherwise payable to the county under section 42-5029, subsection D, paragraph 2. This amount and the state portion of the nonfederal costs shall be specified in the annual appropriation for the maintenance and operation of the Arizona health care cost containment system. For fiscal years 1994-1995, 1995-1996 and 1996-1997, monies shall be withheld from each county based on the following percentages derived from a state auditor general's certified audit of fiscal year 1987-1988 county long-term care and home health care expenditures, except that amounts withheld shall be adjusted to reflect amounts paid by counties pursuant to section 36-2952:

Apache: 0.22%
Cochise:Â Â Â Â Â 2.49%
Coconino:Â Â Â Â 0.66%
Gila:Â Â 2.56%
Graham: 0.64%
Greenlee:Â Â Â Â 0.34%
La Paz: 0.34%
Maricopa:Â Â Â Â 56.55%
Mohave: 2.73%
Navajo:Â Â Â Â Â 0.91%
Pima:Â 20.55%
Pinal: 5.09%
Santa Cruz:Â 1.05%
Yavapai:Â Â Â Â 3.12%
Yuma:Â 2.75%

C. In each fiscal year, of the total amount that is specified in the annual appropriation as the nonfederal portion of the cost of providing long-term care services and that portion of the phased-down medicare prescription drug state contribution attributable to the Arizona long-term care system, excluding services and phased-down medicare prescription drug state contribution costs associated with persons with developmental disabilities, and that represents an increase from the amount that was specified in the annual appropriation for the prior fiscal year, the state shall pay fifty percent of the increase.Â The remaining nonfederal portion of the costs shall be apportioned among the counties according to the proportion that each county's net nonfederal expenditures for long-term care services, excluding services to persons with developmental disabilities, bears to the total nonfederal expenditure for all counties two fiscal years earlier, with the following adjustments in the following order:

If the resulting net county contribution when expressed as an imputed property tax rate per $100 of net assessed value exceeds $.90, the county's contribution shall be reduced so that the imputed property tax rate equals $.90 and the difference shall be paid by the state.
Any county with a Native American population that represents at least twenty percent of the county's total population according to the most recent United States decennial census shall contribute an amount equal to the prior fiscal year's contribution plus fifty percent of the difference between the prior year's contribution were it calculated using the percentage in subsection B of this section and the current year's contribution as if its share of the total nonfederal portion of the long-term care costs had been calculated using the percentage prescribed in subsection B of this section, and the state shall pay any difference from the amount otherwise required by this subsection.
If, after making the adjustments in this subsection, a county would contribute more than if its contribution were calculated using the percentage prescribed in subsection B of this section multiplied by the total nonfederal costs of long-term care services, excluding services to persons with developmental disabilities, the county's contribution shall be reduced to the sum of its prior year's contribution plus fifty percent of the difference between the prior year's contribution were it calculated using the percentage in subsection B of this section and the current year's contribution as if its share of the total nonfederal portion of long-term care costs had been calculated using the percentage prescribed in subsection B of this section, and the state shall pay any difference from the amount otherwise required by this subsection.
After making all of the adjustments in this subsection, a statewide per capita county contribution shall be calculated by summing the contributions for all counties and then dividing the resulting total by the total state population. If an individual county's contribution when expressed as a per capita contribution exceeds the statewide per capita county contribution, the county's contribution shall be reduced so that the county's contribution equals the statewide per capita contribution, and the difference shall be paid by the state.Â For the purposes of this paragraph, "population" means the population estimate approved by the office of economic opportunity for the most recent fiscal year.

D. The director of the Arizona health care cost containment system administration shall notify each county of the amount determined pursuant to subsection A of this section to be included in its annual budget not later than May 1 of each year.

E. If a county does not provide funding as specified in subsection A of this section, the state treasurer shall subtract the amount owed to the Arizona health care cost containment system fund by the county from any payments required to be made by the state treasurer to that county pursuant to section 42-5029, subsection D, paragraph 2, plus interest on that amount pursuant to section 44-1201 retroactive to the first day the funding was due. If the monies the state treasurer withholds are insufficient to meet that county's funding requirement as specified in subsection A of this section, the state treasurer shall withhold from any other monies payable to that county from whatever state funding source is available an amount necessary to fulfill that county's requirement.Â The state treasurer shall not withhold distributions from the highway user revenue fund pursuant to title 28, chapter 18, article 2.

F. Each month payment of an amount equal to one-twelfth of the total amount determined pursuant to subsection A of this section shall be made to the state treasurer.Â Payment of this amount shall be made to the state treasurer on or before the fifth day of each month. On request from the director of the Arizona health care cost containment system administration, the state treasurer shall require that up to three months' payments be made in advance, if necessary.

G. The state treasurer shall deposit the amounts paid pursuant to subsection F of this section and amounts withheld pursuant to subsection E of this section in the Arizona health care cost containment system fund established by section 36-2913.

H. If payments made pursuant to subsection F of this section exceed the amount required to meet the costs incurred by the Arizona health care cost containment system for the hospitalization and medical care of a person who is defined as an eligible person pursuant to section 36-2901, paragraph 6, subdivision (a), the director of the Arizona health care cost containment system administration may instruct the state treasurer to either:

Reduce remaining payments to be paid pursuant to this section by a specified amount.
Provide to the counties specified amounts from the Arizona health care cost containment system fund.

I. The amount of the county contribution to the Arizona health care cost containment system fund established by section 36-2913 shall not exceed thirty-three percent of the amount that the system administration expended in the county for fiscal year 1983-1984. For the purposes of this subsection, system administration expenditures in a county for fiscal year 1983-1984 are the total capitation and fee for service amounts paid by the system administration to providers in a county before February 1, 1986 for services rendered during fiscal year 1983-1984 to persons eligible for the system.

J. The state treasurer shall deposit the monies withheld from the counties and contributed by the state pursuant to subsection B of this section in the long-term care system fund established by section 36-2913, in twelve equal monthly installments. The monthly installments shall be deposited in the fund by the state treasurer by the fourth working day of each month.

K. By July 1 or within sixty days after enactment of the annual appropriation for the maintenance and operation of the Arizona health care cost containment system, whichever is later, and after consulting with the joint legislative budget committee and the governor's office of strategic planning and budgeting, the state treasurer shall notify each county of the amount to be withheld pursuant to subsection B of this section.

L. If the monies deposited in the long-term care system fund pursuant to subsection J of this section are insufficient to meet the funding requirement as specified in the annual appropriation for the maintenance and operation of the Arizona health care cost containment system pursuant to subsection B of this section, the state treasurer shall withhold from any other monies payable to that county from any available state funding source, other than the highway user revenue fund, the amount required to fulfill fifty percent of the funding requirement and shall deposit the monies in the long-term care system fund.Â The state shall pay the remaining fifty percent of the funding requirement.

M. If any monies in the funds for the purpose of title 36, chapter 29, article 2 remain unexpended at the end of the fiscal year, the director of the Arizona health care cost containment system administration shall report to the state treasurer, the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before December 1 the amount to be withdrawn from the long-term care system fund. Of the amount reported, the state treasurer shall distribute fifty percent to the counties pursuant to subsection B or C of this section. The remaining fifty percent shall be distributed to this state. The report shall include the calculations the administration used to compute the total amount of the surplus and the apportionment of the surplus between each county and this state.

N. The board of supervisors of a county that is a program contractor pursuant to section 36-2940 shall include in its annual budget, subject to title 42, chapter 17, articles 2 and 3, monies received from the Arizona health care cost containment system fund and long-term care system fund for the purposes of title 36, chapter 29, article 2.

O. Notwithstanding any law to the contrary, beginning in fiscal year 2005-2006 and in each fiscal year thereafter, the state treasurer shall withhold a total of $2,395,400 for the county contribution for the administrative costs of implementing sections 36-2901.01 and 36-2901.04 beginning with the second monthly distribution of transaction privilege tax revenues otherwise distributable after subtracting any amounts withheld for the county long-term care contribution.Â The state treasurer shall adjust the amount withheld according to the annual changes in the GDP price deflator and as calculated by the joint legislative budget committee staff.Â The joint legislative budget committee shall calculate an additional adjustment of the allocation required by this subsection based on changes in the population as reported by the office of economic opportunity. For the purposes of this subsection, "GDP price deflator" has the same meaning prescribed in section 41-563. Each county's annual contribution is as follows:

Apache, 3.296 percent.
Cochise, 6.148 percent.
Coconino, 6.065 percent.
Gila, 2.491 percent.
Graham, 1.7710 percent.
Greenlee, 0.455 percent.
La Paz, 0.9430 percent.
Mohave, 7.079 percent.
Navajo, 4.640 percent.
Pima, 42.168 percent.
Pinal, 8.251 percent.
Santa Cruz, 1.950 percent.
Yavapai, 7.794 percent.
Yuma, 6.949 percent.

P. The state treasurer shall deposit the amounts paid pursuant to subsection O of this section in the budget neutrality compliance fund established by section 36-2928.

Q. Beginning in fiscal year 2006-2007 for a county that is subject to section 12-269, the county's contributions pursuant to this section shall be reduced by the amount of state aid for probation services that the county would have received in the first fiscal year in which the county does not receive state aid for probation services.Â Any increase in the county's contributions in subsequent years shall be reduced according to its proportionate share of the base contribution.Â County contributions shall be reduced in the following priority:

First as applied to the contribution provided for in subsection O of this section.
Second as applied to the contribution provided for in subsection A of this section or any other contribution for acute care or for the provision of hospitalization and medical care that would otherwise be required.
Third as applied to the contribution provided for in subsection C of this section.

R. Beginning in fiscal year 2007-2008 for a county that is subject to section 22-117, subsection D, the county's contributions pursuant to this section shall be reduced by the amount of the state reimbursement that the county would have received in fiscal year 2007-2008 for the salaries of justices of the peace pursuant to section 22-117, subsection B. Any increase in the county's contributions in subsequent years shall be reduced according to its proportionate share of the base contribution. County contributions shall be reduced in the following priority:

First as applied to the contribution provided for in subsection O of this section.
Second as applied to the contribution provided for in subsection A of this section or any other contribution for acute care or for the provision of hospitalization and medical care that would otherwise be required.

S. For the purposes of this section, "net assessed value" includes the values used to determine voluntary contributions collected pursuant to title 9, chapter 4, article 3 and title 48, chapter 1, article 8.

A.R.S. § 11-00293

11-293 - Long-term care; counties; duties; requirements for payment; home health care

11-293. Long-term care; counties; duties; requirements for payment; home health care

A. From and after October 1, 1989, each county shall provide nursing care institution services, supervisory care services or adult foster care services for indigent persons qualified for hospitalization and medical care pursuant to this article who were receiving services pursuant to this section on September 30, 1989 or who had requested to be screened pursuant to subsection F of this section, and who are not determined eligible for long-term care pursuant to title 36, chapter 29, article 2. If a person was determined ineligible under title 36, chapter 29, article 2 because that person did not meet the resource requirements pursuant to section 36-2934, a county may bill and collect from that person the actual cost of services provided pursuant to this section until such time as the person's remaining resources equal the maximum resource limit allowable under title 36, chapter 29, article 2. Notwithstanding any law to the contrary, a county shall not reduce the eligibility standards, benefit levels and categories of services in effect on March 1, 1988 for persons eligible pursuant to this section.

B. The standards adopted by a board of supervisors shall provide that a portion of the indigent person's income allowed pursuant to this section shall be retained by the person for the person's personal use. This portion shall not be less than fifteen per cent of the maximum benefit available under title XVI of the federal social security act, as amended. As provided by state and federal law, counties may file a claim against a person's estate to recover paid assistance. For the purposes of this article, the counties may impose liens according to state and federal law on the property of these persons.

C. The medical, nursing and social needs of the indigent person eligible pursuant to subsection A of this section shall be evaluated annually in order to provide placement of the indigent person in the least restrictive health care environment possible.

D. A nursing care institution, supervisory care home or adult foster care provider is not eligible for payment of the costs of providing health care services to an indigent person pursuant to this section unless the person has been determined to be eligible for placement pursuant to this section.

E. A person shall not be placed in a supervisory care home or with an adult foster care home provider pursuant to this article unless home health care services and outpatient medical services, as necessary, are provided as a condition of the placement.

F. A county shall screen members as defined in section 36-2901 or persons eligible pursuant to this article within eight days, excluding Saturdays and holidays, if there is a written request for such screening before October 1, 1989, including a request by a contractor as defined in section 36-2901. The screening shall determine whether placement is appropriate in a nursing care institution or adult foster care home.Â The county shall also determine eligibility for such members or persons within this eight day period, excluding Saturdays and holidays.Â If the county determines that placement is appropriate, it shall place the person at the appropriate level of care within ten days, excluding Saturdays and holidays, after the written request for screening.Â The member's provider who contracts with the administration pursuant to section 36-2904, subsection A is responsible for the member's care until the county screens and places the member.

G. If the county does not complete the eligibility determination, screening and placement of a member or person determined appropriate for placement in the specified time period, the county shall reimburse the Arizona health care cost containment system for the medical expenses incurred or paid for which the Arizona health care cost containment system would not have been responsible except for the county's failure to determine eligibility, screen and place the person within the specified time period.

H. If a dispute arises between the Arizona health care cost containment system, including contractors as defined in section 36-2901, and the county regarding the appropriateness of placement in long-term care for persons eligible pursuant to subsection A of this section, the dispute shall be submitted to a multidisciplinary review board designated by the board of supervisors.Â The review board shall consist of one physician, one nurse and one social worker, and two appropriate representatives from the Arizona health care cost containment system administration.Â If the review board determines that the long-term care was appropriate when requested the county shall reimburse the Arizona health care cost containment system for the medical expenses incurred or paid for which the Arizona health care cost containment system would not have been responsible except for the county's failure to determine eligibility, screen and place the person within the specified time period.

A.R.S. § 11-00309

11-309 - Hospital enterprise; accounting; fund; administration; budget

11-309. Hospital enterprise; accounting; fund; administration; budget

A. A county with a population of more than five hundred thousand persons as shown by the most recent United States decennial census may establish a hospital enterprise that may include all hospital and ambulatory care facilities, property, both tangible and intangible, and services owned, performed or provided by the county. A hospital enterprise shall be a separate unit of the county, and all revenues and expenditures of the hospital enterprise shall be accounted for as a separate unit. Notwithstanding section 36-187, subsection B, all monies received from the operation of the hospital enterprise shall be deposited in a hospital enterprise fund. All expenses of the hospital enterprise shall be paid from the hospital enterprise fund.

B. The board of supervisors of the county shall govern the hospital enterprise but may name one or more persons to administer the hospital enterprise and to direct its operations. Notwithstanding section 11-251, paragraph 9, the board of supervisors may pledge or assign any hospital improvements, additions or equipment purchased with the proceeds of any lease-purchase agreements and may take all other action or order all acts by agents, attorneys or independent contractors necessary and appropriate for the operation of the hospital enterprise and for the payment of any lease-purchase agreements.

C. A county with a hospital enterprise may incur lease-purchase agreements payable solely from the hospital enterprise fund, as augmented by the special fund authorized under subsection D of this section.

D. For each fiscal year in its annual budget prepared pursuant to title 42, chapter 17, article 3, the county may budget an amount equal to any expected shortfall between the hospital enterprise fund's expected revenues, proceeds and receipts and the hospital enterprise's expected disbursements, including disbursements for operation and maintenance expenses and payments on lease-purchase agreements, and may establish a special fund into which the county treasurer shall pay only excise tax revenues collected by the state and remitted to the county or collected by the county, unless these taxes are otherwise restricted by law to specific nonhealth care uses. The special fund may be set aside solely for the payment of operation and maintenance of the hospital enterprise and lease-purchase agreements as provided in this section. The amount of excise tax proceeds deposited in the special fund shall be determined by the board of supervisors in the annual budget. The treasurer shall transfer monies out of the special fund into the hospital enterprise fund or shall pay warrants drawn on the hospital enterprise fund with monies in the special fund whenever a shortfall exists in the hospital enterprise fund. The establishment of the special fund for any fiscal year does not obligate the county to the continued maintenance of the fund in any later fiscal year. The county treasurer shall administer the special fund as directed by the board of supervisors.

E. Lease-purchase agreements under this section may be payable over a term of not more than twenty years.

A.R.S. § 11-00379

11-379 - Expansion of pledge; effect on prior elections; refunding bonds; conflict of interest

11-379. Expansion of pledge; effect on prior elections; refunding bonds; conflict of interest

A. All bonds issued pursuant to this article, whether before or after October 24, 1981, shall be paid from, and may hereafter be secured by a pledge of, all revenues received by the county issuing the bonds, from taxes, fees, charges and other monies collected by the state and returned to such county for street and highway purposes pursuant to title 28, chapter 18, article 2 and section 42-6107.

B. Whenever the board of supervisors of any county determines that the best interests of such county will be served by the issuance of refunding bonds in order to refund bonds secured by the pledge of revenues received pursuant to title 28, chapter 18, article 2 and section 42-6107, the board of supervisors may issue refunding bonds on behalf of the county to refund the bonds theretofore issued pursuant to this article. Such refunding bonds shall be payable at such dates and in such amounts as the board of supervisors by resolution may decide, shall be secured by a pledge of all monies received pursuant to title 28, chapter 18, article 2 and section 42-6107, shall bear interest at a rate of not to exceed nine per cent, and in all other respects the form and character of the refunding bonds shall conform with the provisions of section 11-377. The refunding bonds may be sold at public or private sale at the price the board of supervisors deems to be the best price available therefor, which price may be below, at or above par, or the refunding bonds may be exchanged for a like amount of bonds being refunded, with all unmatured coupons attached thereto, or the refunding bonds or proceeds from the sale of the refunded bonds may be exchanged for a sufficient amount of cash to pay all legal, financial and all other expenses incurred by the county in the issuance of the bonds plus obligations issued by or guaranteed by the United States of America, which obligations with interest thereon will provide sufficient monies to pay, when due or called for prior redemption at the option of the county, all refunded bonds and the coupons appertaining thereto and any redemption premiums, if applicable. The board of supervisors may provide that any securities acquired from refunded bond proceeds or from exchange of the refunding bonds for the United States government securities be delivered to a bank or trust company doing business in this state to act as trustee or escrow agent to protect the rights of the holders of the refunded bonds. Â The board of supervisors may execute such trust or escrow agreements as it sees fit to protect the rights of the holders of the refunded bonds and may also pay the fees, costs and expenses of such trustee or escrow agent and also all legal, financial paying agent's fees or charges and all other costs incidental to the issuance of the refunding bonds, either from refunding bond proceeds or from monies received pursuant to title 28, chapter 18, article 2 and section 42-6107.

C. Notwithstanding title 38, chapter 3, article 8 or any other law, it shall not be a conflict of interest for the holder of any bond authorized by this article, or for a person contracting with the issuing county to purchase any such bond, to offer to sell or exchange, to contract to sell or exchange, or to sell or exchange any federal government securities or obligations to the county to be used for the purposes set forth in subsection B of this section, nor shall it be a conflict of interest for any trustee, escrow agent or paying agent to purchase for the trustee, escrow agent or paying agent account or for the account of another any bond issued under authority of this article.

A.R.S. § 11-00862

11-862 - Advisory board; appointment; terms; duties

11-862. Advisory board; appointment; terms; duties

A. Any code adopted pursuant to this article shall contain a provision for an advisory board consisting of at least five members in order to determine the suitability of alternative materials and construction and to permit interpretations of the provisions of such code. The advisory board shall consist of at least five but not more than seven members and shall include at least members from the following categories, to the extent the persons meeting the qualifications are available within the county and are residents of such county:

An architect duly licensed in the state of Arizona.
A professional engineer duly licensed in the state of Arizona.
A general contractor duly licensed in the state of Arizona.
A person representing the public and a resident of the county.
A person engaged in the electrical, mechanical or plumbing trade.

B. If the advisory board consists of more than five members, the additional members may be engaged in the construction and design industry.

C. The county official charged with the enforcement of the code shall serve, without vote, as an ex officio member of the board and shall act as secretary.

D. Each appointee shall have substantial experience in the field covered by the particular code. Except as provided in subsection F of this section, members of the advisory board shall be appointed by the board of supervisors. Members shall be appointed for a term of four years, staggered so that at least one but no more than two terms expire each year. Vacancies shall be filled for an unexpired term in the manner in which original appointments are required to be made.

E. The functions and duties of the advisory board may be specified by regulation by the board of supervisors.

F. If the county and a city or town contract to provide for enforcement of codes pursuant to section 11-863, by intergovernmental agreement pursuant to chapter 7, article 3 of this title, the manner in which appointments are made to the advisory board may be specified in the agreement.

A.R.S. § 11-00952

11-952 - Intergovernmental agreements and contracts

11-952. Intergovernmental agreements and contracts

A. If authorized by their legislative or other governing bodies, two or more public agencies or public procurement units by direct contract or agreement may contract for services or jointly exercise any powers common to the contracting parties and may enter into agreements with one another for joint or cooperative action or may form a separate legal entity, including a nonprofit corporation, to contract for or perform some or all of the services specified in the contract or agreement or exercise those powers jointly held by the contracting parties.

B. Any such contract or agreement shall specify the following:

Its duration.
Its purpose or purposes.
The manner of financing the joint or cooperative undertaking and of establishing and maintaining a budget for the undertaking.
The permissible method or methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property on such partial or complete termination.
If a separate legal entity is formed pursuant to subsection A, the precise organization, composition, title and nature of the entity.
Any other necessary and proper matters.

C. No agreement made pursuant to this article shall relieve any public agency of any obligation or responsibility imposed on it by law.

D. Except as provided in subsection E, every agreement or contract involving any public agency or public procurement unit of this state made pursuant to this article, before its execution, shall be submitted to the attorney for each such public agency or public procurement unit, who shall determine whether the agreement is in proper form and is within the powers and authority granted under the laws of this state to such public agency or public procurement unit.

E. A federal department or agency or public agency of another state that is a party to an agreement or contract made pursuant to this article is not required to submit the agreement or contract to the attorney for the department or agency unless required under federal law or the law of the other state.

F. Appropriate action by ordinance or resolution or otherwise pursuant to the laws applicable to the governing bodies of the participating agencies approving or extending the duration of the agreement or contract shall be necessary before any such agreement, contract or extension may be filed or become effective.

G. An agreement or contract may be extended as many times as is desirable, but each extension may not exceed the duration of the previous agreement.

H. Payment for services under this section shall not be made unless pursuant to a fully approved written contract.

I. A person who authorizes payment of any monies in violation of this section is liable for the monies paid plus twenty percent of such amount and legal interest from the date of payment.

J. Notwithstanding any other provision of law, public agencies may enter into a contract or agreement pursuant to this section with the superior court, justice courts and municipal courts for related services and facilities of such courts for a term not to exceed ten years, with the approval of such contract or agreement by the presiding judge of the superior court in the county in which the court or courts that provide the facilities or services are located.

A.R.S. § 11-01102

11-1102 - County development fees; imposition by counties; infrastructure improvements plan; advisory committee; annual report; limitation on actions; definitions

11-1102. County development fees; imposition by counties; infrastructure improvements plan; advisory committee; annual report; limitation on actions; definitions

A. A county may assess development fees to offset costs to the county associated with providing necessary public services to a development, including the costs of infrastructure, improvements, real property, engineering and architectural services, financing and professional services required for the preparation or revision of a development fee pursuant to this section, including the relevant portion of the infrastructure improvements plan.

B. Development fees assessed under this section are subject to the following requirements:

Development fees shall result in a beneficial use to the development.
The county shall calculate the development fee based on the infrastructure improvements plan adopted pursuant to this section.
The development fees may not exceed a proportionate share of the cost of necessary public services, based on service units, needed to provide necessary public services to the development.
Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the service area at the time the infrastructure improvements plan is adopted.Â
Development fees may not be used for any of the following:

(a) Funding a level of service that is higher than the current level of service provided to existing development at the time the infrastructure improvements plan is adopted.

(b) Construction, acquisition or expansion of public facilities or assets other than necessary public services or facility expansions identified in the infrastructure improvements plan.

(d) Upgrading, updating, expanding, correcting or replacing existing necessary public services to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards.Â

(e) Upgrading, updating, expanding, correcting or replacing existing necessary public services to provide a higher level of service to existing development.

(f) Administrative, maintenance or operating costs of the county.

Any development for which development fees have been paid is entitled to the use and benefit of the services for which the development fees were imposed and is entitled to receive immediate service from any existing facility with available capacity to serve the new service units if the available capacity has not been reserved or pledged in connection with the construction or financing of the facility.Â
Development fees may be collected if any of the following occurs:

(a) The collection is made to pay for a necessary public service or facility expansion that is identified in the infrastructure improvements plan and the county plans to complete construction and have the service available within the time period established in the infrastructure improvements plan, but not longer than the time period provided in subsection J, paragraph 3 of this section.Â

(b) The county reserves capacity in the infrastructure improvements plan adopted pursuant to this section or otherwise agrees to reserve capacity to serve future development.

(c) The county requires or agrees to allow the owner of a development to construct or finance the necessary public service or facility expansion and any of the following applies:

(i) The costs incurred or monies advanced are credited against or reimbursed from the development fees otherwise due from a development.Â The amount of credits issued shall equal the costs identified by the county in the infrastructure improvements plan associated with the construction of the necessary public services or facility expansions.Â The county shall allow the owner to assign the credits from the development fees otherwise due from a development and any excess credits to other developments for the same category of necessary public services in the same service area.Â

(ii) The county reimburses the owner for those costs from the development fees paid from all developments that will use those necessary public services or facility expansions.Â The county shall allow the owner to assign the reimbursement rights to other developments for the same category of necessary public services in the same service area.Â

Projected interest charges and other finance costs may be included in determining the amount of development fees only if the monies are used for the payment of principal and interest on the portion of the bonds, notes or other obligations issued to finance construction of necessary public services or facility expansions identified in the infrastructure improvements plan.
Monies received from development fees shall be placed in a separate fund and accounted for separately and may only be used for the purposes authorized by this section.Â Monies received from development fees identified in an infrastructure improvements plan adopted or updated pursuant to subsection E of this section shall be used to provide the same category of necessary public services or facilities expansions for which the development fee was assessed and for the benefit of the same service area as defined in the infrastructure improvements plan in which the development fees were assessed. Interest earned on monies in the separate fund shall be credited to the fund.
The county shall prescribe the schedule for paying the development fees. Based on the costs identified in the infrastructure improvements plan, the county shall provide a credit toward the payment of the development fees for the required or agreed to dedication of public sites, improvements and other necessary public services or facility expansions included in the infrastructure improvements plan and for which development fees are assessed, to the extent the public sites, improvements and necessary public services or facility expansions are provided by the developer.Â On request of the developer, instead of providing a credit toward the payment of development fees, the county shall provide for reimbursement from the development fees paid from all development that will use those public sites, improvements or necessary public services or facility expansions of the actual costs of the required or agreed to dedication of public sites, improvements or other necessary public services or facility expansions included in the infrastructure improvements plan and for which development fees are assessed, to the extent the public sites, improvements and necessary public services or facility expansions are provided by the developer.Â The developer of residential dwelling units shall be required to pay the fees when construction permits for the dwelling units are issued, or at a later time if specified in the development agreement pursuant to section 11-1101. If a development agreement provides for development fees to be paid at a time later than the issuance of construction permits, the deferred development fees shall be paid not later than fifteen days after the issuance of a certificate of occupancy. Â The development agreement shall provide for the value of any deferred development fees to be supported by an appropriate security, including a surety bond, letter of credit or cash bond.
If a county requires as a condition of development approval the construction or improvement of, contributions to or dedication of any facilities that were not included in a previously adopted infrastructure improvements plan, the county shall cause the infrastructure improvements plan to be amended to include the facilities and shall provide a credit toward the payment of development fees for the construction, improvement, contribution or dedication of the facilities to the extent that the facilities will substitute for or otherwise reduce the need for other similar facilities in the infrastructure improvements plan for which development fees were assessed. If a county requires as a condition of development approval the set aside of active or passive open space, the county shall issue a credit toward any development fees identified in the infrastructure improvements plan to fund any park facilities or facility expansion.Â On request of the individual or entity seeking development approval, instead of issuing a credit toward the payment of development fees, the county shall provide for reimbursement from the development fees paid from all development that will use those facilities or facility expansions of the actual costs of the construction or improvement of, contributions to or dedication of the public facilities required as a condition of development approval.
The county shall forecast the contribution to be made in the future in cash, taxes, fees, assessments and all other sources of revenue derived from the property owner towards the capital costs of the necessary public service covered by the development fees.
If development fees are assessed against residential development, the county shall also assess development fees against commercial and industrial development.Â The county may distinguish between different categories of residential, commercial and industrial development in assessing the costs to the county of providing necessary public services to new development and in determining the amount of the development fees applicable to the category, except that the county may not distinguish residential developments on the basis of the size of the dwelling unit or number of bedrooms.Â If a county agrees to waive any of the development fees assessed on a development, the county shall reimburse the appropriate development fees accounts for the amount that was waived. The county shall provide notice of any such waiver to the advisory committee established pursuant to subsection I of this section.
In determining and assessing development fees applying to land in a community facilities district established under title 48, chapter 4, article 6, the county shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and shall not assess a portion of the development fees based on the infrastructure or costs.
The county shall not assess or collect development fees from a school district or charter school, other than fees assessed or collected for streets and water and wastewater utility functions.

C. Before assessing development fees, the county shall:

Give at least thirty days' advance notice of intention to assess new or increased development fees.
Release to the public and post on the county's website a written report of the land use assumptions and infrastructure improvements plan adopted pursuant to subsection E of this section.
Conduct a public hearing on the proposed development fees at any time after the expiration of the thirty-day notice of intention to assess development fees and at least thirty days before the scheduled date of adoption of the development fees.Â Within sixty days after the date of the public hearing on the proposed development fees, the county shall approve or disapprove the imposition of the development fees.Â A county may not adopt an ordinance, order or resolution approving development fees as an emergency measure.

D. Development fees assessed pursuant to this section are not effective for at least ninety days after formal adoption by the board of supervisors.

E. Before the adoption or amendment of development fees or amendment of the boundaries of a service area, the board of supervisors shall adopt or update the land use assumptions and infrastructure improvements plan for the designated service area.Â The county shall conduct a public hearing on the land use assumptions and infrastructure improvements plan at least thirty days before the adoption or update of the infrastructure improvements plan.Â The county shall release the infrastructure improvements plan to the public, post the infrastructure improvements plan on the county's website, including in the posting the land use assumptions, the time period of the projections, a description of the necessary public services included in the infrastructure improvements plan and a map of the service area to which the land use assumptions apply, make available to the public the documents used to prepare the land use assumptions and infrastructure improvements plan and provide public notice at least sixty days before the public hearing, subject to the following:

The land use assumptions and infrastructure improvements plan shall be approved or disapproved within sixty days after the public hearing on the land use assumptions and infrastructure improvements plan and at least thirty days before the public hearing on the report required by subsection C of this section.Â A county may not adopt an ordinance, order or resolution approving the land use assumptions or infrastructure improvements plan as an emergency measure.
An infrastructure improvements plan shall be developed by qualified professionals using generally accepted engineering and planning practices pursuant to subsection F of this section.
A county shall update the land use assumptions and infrastructure improvements plan at least every five years.Â The initial five-year period begins on the day the infrastructure improvements plan is adopted.Â The county shall review and evaluate the current land use assumptions and shall cause an update of the infrastructure improvements plan to be prepared pursuant to this section.
Within sixty days after completion of the updated land use assumptions and infrastructure improvements plan, the county shall schedule and provide notice of a public hearing to discuss and review the update and shall determine whether to amend the land use assumptions and infrastructure improvements plan.
A county shall hold a public hearing to discuss the proposed amendments to the land use assumptions, the infrastructure improvements plan or the development fees.Â The land use assumptions and the infrastructure improvements plan, including the amount of any proposed changes to the development fees per service unit, shall be made available to the public on or before the date of the first publication of the notice of the hearing on the amendments.
The hearing procedures prescribed in paragraph 1 of this subsection apply to a hearing on the amendment of land use assumptions, an infrastructure improvements plan or development fees.Â Within sixty days after the date of the public hearing on the amendments, a county shall approve or disapprove the amendments to the land use assumptions, infrastructure improvements plan or development fees.Â A county may not adopt an ordinance, order or resolution approving the amended land use assumptions, infrastructure improvements plan or development fees as an emergency measure.
The advisory committee established under subsection I of this section shall file its written comments on any proposed or updated land use assumptions, infrastructure improvements plan and development fees before the fifth business day before the date of the public hearing on the proposed or updated land use assumptions, infrastructure improvements plan and development fees.
If, at the time an update as prescribed in paragraph 3 of this subsection is required, the county determines that no changes to the land use assumptions, infrastructure improvements plan or development fees are needed, the county, as an alternative to the updating requirements of this subsection, may publish notice of the determination on the county's website that includes the following:

(a) A statement that the county has determined that no change to the land use assumptions, infrastructure improvements plan or development fees is necessary.

(b) A description and map of the service area in which an update has been determined to be unnecessary.

(c) A statement that by a specified date, which shall be at least sixty days after the date of publication of the first notice, a person may request to the county in writing that the county update the land use assumptions, infrastructure improvements plan or development fees.

(d) A statement identifying the person or entity to whom the written request for an update should be sent.

If, by the date specified pursuant to paragraph 8 of this subsection, a person requests in writing that the county update the land use assumptions, infrastructure improvements plan or development fees, the county shall cause, accept or reject an update of the land use assumptions, infrastructure improvements plan or development fees to be prepared pursuant to this section.Â
Notwithstanding the notice and hearing requirements for adoption of an infrastructure improvements plan, the county may amend an infrastructure improvements plan without a public hearing if the amendment addresses only elements of necessary public services in the existing infrastructure improvements plan and the changes to the plan will not, individually or cumulatively with other amendments adopted pursuant to this subsection, increase the level of service in the service area or cause an increase inÂ development fees that is greater than five percent when new or modified development fees are assessed pursuant to this section.Â The county shall provide notice of the amendment at least thirty days before adoption, shall post the amendment on the county's website and shall provide notice to the advisory committee established pursuant to subsection I of this section that the amendment complies with this subsection.

F. For each necessary public service that is the subject of development fees, the infrastructure improvements plan shall include:

A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards. The description shall be prepared by qualified professionals who are licensed in this state, as applicable.
An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services. The analysis shall be prepared by qualified professionals who are licensed in this state, as applicable.
A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to new development in the service area based on the approved land use assumptions, including a forecast of the cost of infrastructure, improvements, real property, financing, engineering and architectural services.Â The description shall be prepared by qualified professionals who are licensed in this state, as applicable.
A table that establishes the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table that establishes the ratio of a service unit to various types of land uses, including residential, commercial and industrial.
A description of all the costs necessitated by ongoing maintenance and operations of the necessary public services once construction is completed and a description of the source of revenue to be used to fund the maintenance and operations.
The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.
The projected demand for necessary public services or facility expansions required by new service units for a period of not more than ten years.
A forecast of revenues generated by new service units other than development fees, including estimated state shared revenue, highway user revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions, and a plan to include these contributions in determining the extent of the burden imposed by the development as required in subsection B, paragraph 12 of this section.

G. A county's infrastructure improvements plan may identify necessary public services or facility expansions that the county plans to construct beyond the time period provided for in subsection J, paragraph 3 of this section but may not include the costs of those necessary public services or facility expansions in the calculation of development fees.

H. A county's development fees ordinance shall provide:

That new development fees or an increased portion of modified development fees may not be assessed against a development for twenty-four months after the date that the county issues the final approval for a commercial, industrial or multifamily development or the date that the first building permit is issued for a residential development pursuant to an approved site plan or subdivision plat, only if subsequent changes are not made to the approved site plan or subdivision plat that would increase the number of service units. If the number of service units increases, the new or increased portion of modified development fees shall be limited to the amount attributable to the additional service units.Â The period is not extended by a renewal or amendment of the site plan or the final subdivision plat that was the subject of the final approval.Â The county shall issue, on request, a written statement of the development fees schedule applicable to the development.Â If, after the date of the county's final approval of a development, the county reduces the development fees assessed on development, the reduced fees shall apply to the development.
A process for a development to request an alternative development fee calculation or change in category of development that appears on an adopted development fee schedule based on a projection that the actual burdens and costs associated with the county's provision of necessary public services or facility expansions to the development that are to be paid by development fees will differ substantially from those costs projected by the county or will be substantially less than the amount projected to be paid by development fees.Â The county manager or the county manager's designee shall review the request and make a determination as to the development fee to be assessed.Â The assessed development fee shall have a substantial nexus to the actual burdens and costs associated with providing the necessary public services or facility expansions to that development that are to be funded by development fees.Â The determination of the county manager is appealable to the board of supervisors.

I. A county shall do one of the following:

Before the adoption of the proposed or updated land use assumptions, infrastructure improvements plan and development fees as prescribed in subsection E of this section, appoint an infrastructure improvements advisory committee, subject to the following requirements:

(a) The advisory committee shall be composed of at least five members who are appointed by the board of supervisors.Â At least fifty percent of the members of the advisory committee must be representatives of the real estate, development or building industries, of which at least one member of the committee must be from the home building industry.Â Members may not be employees or officials of the county.

(b) The advisory committee shall serve in an advisory capacity and shall:

(i) Advise the county in adopting land use assumptions and in determining whether the assumptions are in conformance with the general plan of the county.

(ii) Review the infrastructure improvements plan and file written comments.

(iii) Monitor and evaluate implementation of the infrastructure improvements plan.

(iv) Every year file reports with respect to the progress of the infrastructure improvements plan and the collection and expenditures of development fees and report to the county any perceived inequities in implementing the infrastructure improvements plan or assessing the development fees.

(v) Advise the county of the need to update or revise the land use assumptions, infrastructure improvements plan and development fees.

(c) The county shall make available to the advisory committee any professional reports with respect to developing and implementing the infrastructure improvements plan.

(d) The county shall adopt procedural rules for the advisory committee to follow in carrying out the advisory committee's duties.

Provide for a biennial certified audit of the county's land use assumptions, infrastructure improvements plan and development fees.Â An audit pursuant to this paragraph shall be conducted by one or more qualified professionals who are not employees or officials of the county and who did not prepare the infrastructure improvements plan.Â The audit shall review the progress of the infrastructure improvements plan, including the collection and expenditures of development fees for each project in the infrastructure improvements plan, and evaluate any inequities in implementing the infrastructure improvements plan or imposing the development fees. The county shall post the findings of the audit on the county's website and shall conduct a public hearing on the audit within sixty days after the release of the audit to the public.Â

J. On written request, an owner of real property for which development fees have been paid after December 31, 2020 is entitled to a refund of the development fees or any part of the development fees if:

Pursuant to subsection B, paragraph 6 of this section, existing facilities are available and service is not provided.
The county, after collecting the fees to construct a facility when service is not available, has failed to complete construction within the time period identified in the infrastructure improvements plan, but in no event later than the time period specified in paragraph 3 of this subsection.
For development fees other than development fees for water or wastewater facilities, any part of the development fees is not spent as authorized by this section within ten years after the fees have been paid or, for development fees for water or wastewater facilities, any part of the development fees is not spent as authorized by this section within fifteen years after the development fees have been paid.

K. If the development fees were collected for the construction of all or a portion of a specific item of infrastructure, and on completion of the infrastructure the county determines that the actual cost of construction was less than the forecasted cost of construction on which the development fees were based and the difference between the actual and estimated cost is greater than ten percent, the current owner may receive a refund of the portion of the development fees equal to the difference between the development fees paid and the development fees that would have been due if the development fees had been calculated at the actual construction cost.

L. A refund shall include any interest earned by the county from the date of collection to the date of refund on the amount of the refunded fees. All refunds shall be paid to the owner of record of the property at the time the refund is paid.Â If the development fees are paid by a governmental entity, the refund shall be paid to the governmental entity.

M. Development fees that were adopted before January 1, 2017 may continue to be assessed only to the extent that the development fees will be used to provide a necessary public service for which development fees can be assessed pursuant to this section and shall be replaced by development fees imposed under this section on or before January 1, 2021. Any county having development fees that have not been replaced under this section on or before January 1, 2021 may not collect development fees until the development fees have been replaced with fees that comply with this section.Â Development fees adopted or amended by a county after January 1, 2017 shall comply with this section.Â Any development fees monies collected before January 1, 2017 remaining in a development fees account:

Shall be used towards the same category of necessary public services as authorized by this section.
And collected for a purpose not authorized by this section shall be used for the purpose for which the development fees were collected on or before January 1, 2024, and after which, if not spent, shall be distributed equally among the categories of necessary public services authorized by this section.

N. A moratorium may not be placed on development for the sole purpose of awaiting completion of all or any part of the process necessary to develop, adopt or update development fees.

O. In any judicial action interpreting this section all powers conferred on a county by this section shall be narrowly construed to ensure that development fees are not used to impose on new residents a burden all taxpayers of a county should bear equally.

P. Each county that assesses development fees shall submit an annual report accounting for the collection and use of the fees for each service area.Â The annual report shall include the following:

The amount assessed by the county for each type of development fee.
The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year.
The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year.
The amount of development fee monies used to repay:

(a) Bonds issued by the county to pay the cost of a necessary public service that is the subject of a development fees assessment, including the amount needed to repay the debt service obligations on each facility for which development fees have been identified as the source of funding and the time frames in which the debt service will be repaid.

(b) Monies advanced by the county from funds other than the funds established for development fees in order to pay the cost of a necessary public service that is the subject of a development fees assessment, the total amount advanced by the county for each facility, the source of the monies advanced and the terms under which the monies will be repaid to the county.

The amount of development fees monies spent on each necessary public service or facility expansion that is the subject of a development fees assessment and the physical location of each capital improvement project.
The amount of development fees monies spent for each purpose other than a necessary public service or facility expansion that is the subject of a development fees assessment.

Q. Within ninety days following the end of each fiscal year, each county shall submit a copy of the annual report to the clerk of the board of supervisors and post the annual report on the county's website.Â Copies shall be made available to the public on request.Â The annual report may contain financial information that has not been audited.

R. A county that fails to file the report and post the annual report on the county's website as required by this section shall not collect development fees until the report is filed and posted.

S. Any action to collect development fees shall be commenced within two years after the obligation to pay the development fees accrues.

T. A county may continue to assess development fees adopted before January 1, 2017 for any facility that was financed before June 1, 2016 if:

Development fees were pledged to repay debt service obligations related to the construction of the facility.
After January 1, 2018, any development fees collected under this subsection are used solely for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued before June 1, 2016 to finance construction of the facility.

U. Through January 1, 2018, development fees adopted before January 1, 2017 may be used to finance construction of a facility and may be pledged to repay debt service obligations if:

The facility that is being financed is a facility that is described under subsection V, paragraph 7, subdivision (a), (b), (c), (d) or (e) of this section.
The facility was included in an infrastructure improvements plan adopted before June 1, 2016.
The development fees are used for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued to finance construction of the necessary public services or facility expansions identified in the infrastructure improvements plan.

V. For the purposes of this section:

"Dedication" means the actual conveyance date or the date an improvement, facility or real or personal property is placed into service, whichever occurs first.
"Development" means:

(a) The subdivision of land.

(b) The construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that adds or increases the number of service units.

"Facility expansion" means the expansion of the capacity of an existing facility that serves the same function as an otherwise new necessary public service in order that the existing facility may serve new development. Facility expansion does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
"Final approval" means, for nonresidential or multifamily development, the approval of a site plan or, if no site plan is submitted for the development, the approval of a final subdivision plat.
"Infrastructure improvements plan" means a written plan that identifies each necessary public service or facility expansion that is proposed to be the subject of development fees and otherwise complies with the requirements of this section and may be the county's capital improvements plan.
"Land use assumptions" means projections of changes in land uses, densities, intensities and population for a specified service area over a period of at least ten years and pursuant to the general plan of the county.
"Necessary public service" means any of the following facilities that have a life expectancy of three or more years and that are owned and operated by or on behalf of the county:

(a) Water facilities, including the supply, transportation, treatment, purification and distribution of water, and any appurtenances for those facilities.

(b) Wastewater facilities, including collection, interception, transportation, treatment and disposal of wastewater, and any appurtenances for those facilities.

(c) Street facilities located in the service area, including arterial or collector streets or roads that have been designated on an officially adopted plan of the county, traffic signals and rights-of-way and improvements thereon. Improvements to rights-of-way do not include streetcars, railways or other forms of transportation and their corresponding tracks.

(d) Public safety facilities, including all appurtenances, equipment and vehicles.Â Public safety facilities do not include a facility or portion of a facility that is used to replace services that were once provided elsewhere in the county, vehicles and equipment used to provide administrative services, helicopters or airplanes, paramilitary vehicles, court and judicial facilities, facilities that are used for training firefighters or officers from more than one station or substation or jail, correctional or detention facilities.

(e) Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the development. Parks and recreational facilities do not include vehicles, equipment of that portion of any facility that is used for amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses, community centers greater than three thousand square feet in floor area, environmental education centers, equestrian facilities, trails, golf course facilities, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, zoo facilities or similar recreational facilities, but may include swimming pools and equipment or improvements constituting accessory or incidental amenities to a park or recreational facility allowed under this section.

(f) Any facility that was financed and that meets all of the requirements prescribed in subsection T of this section.

"Qualified professional" means a professional engineer, surveyor, financial analyst or planner providing services within the scope of the person's license, education or experience.
"Service area" means any specified area within the boundaries of a county in which development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the infrastructure improvements plan.
"Service unit" means a standardized measure of consumption, use, generation or discharge attributable to an individual unit of development calculated using data specific to the service area in which the facility will be located and pursuant to generally accepted engineering or planning standards for a particular category of necessary public services or facility expansions.

A.R.S. § 12-00554

12-554 - Limited liability; baseball facilities; definitions

12-554. Limited liability; baseball facilities; definitions

A. An owner is not liable for injuries to spectators who are struck by baseballs, baseball bats or other equipment used by players during a baseball game unless the owner either:

Does not provide protective seating that is reasonably sufficient to satisfy expected requests.
Intentionally injures a spectator.

B. This section does not prevent or limit the liability of an owner who fails to maintain the premises of the baseball stadium in a reasonably safe condition.

C. This section does not create an independent duty of care for a registered design professional or licensed contractor.

D. A registered design professional or a licensed contractor who is involved in the design, construction or operation of the facility is not liable for injuries to spectators who are struck by baseballs, baseball bats or other equipment used by players during a baseball game unless a registered design professional or a licensed contractor either:

Does not provide for protective seating that is reasonably sufficient to satisfy expected requests.
Intentionally injures a spectator.

E. This section does not prevent or limit liability of a registered design professional or a licensed contractor who fails to design, construct or operate the premises of the baseball stadium in a reasonably safe condition or manner.

F. As used in this section:

"Baseball game" means an amateur or professional baseball game, whether for exhibition or competition. Baseball game includes pregame and postgame activities regardless of the time of day when the game is played.
"Owner" means a person, city, town, county, special district, limited liability company, school district, community college district, college or university that is in lawful possession and control of a baseball team or facility in which baseball games are played. Owner includes an employee or agent of the owner.
"Protective seating" means either:

(a) An area in which a screen to prevent a ball or bat from entering the seating area exists between the spectator and the playing field.

(b) An area that is reasonably safe for the avoidance of injuries from baseballs, baseball bats or other equipment used by players during a baseball game.

"Spectator" means a person who is present at a baseball game for the purpose of observing the game, whether or not the person pays an admission fee or is compensated to observe the game.

A.R.S. § 12-00558

12-558 - Liability release agreement; space flight activities; definitions

12-558. Liability release agreement; space flight activities; definitions

A. A space flight entity may enter into a liability release agreement with a space flight participant or crew to limit the entity's civil liability for a space flight participant's or crew's injury that arises out of space flight activities.

B. The liability release agreement is valid and enforceable.

C. For the purposes of this section:

"Crew" means an employee of a space flight entity or a space flight entity contractor, licensee or agent who performs space flight activities.
"Launch" means a placement or attempted placement of a launch vehicle and any spacecraft, payload, crew or space flight participant in a flight path targeted to exceed an altitude of sixty thousand feet, a suborbital trajectory, earth orbit or outer space, including activities involved in the preparation of a launch vehicle or spacecraft for launch.
"Launch vehicle" means a vehicle and its stages or components that are designed to operate in or place spacecraft, if any, in a suborbital trajectory, earth orbit or outer space.
"Reentry" means a return or attempted return to earth of a launch vehicle, a reentry vehicle and the spacecraft, payload, crew or space flight participant from a suborbital trajectory, earth orbit or outer space and includes activities involved in the recovery of a launch vehicle, reentry vehicle or spacecraft.
"Spacecraft" means any object and its components that are designed to be launched for operations in a suborbital trajectory, in earth orbit or in outer space and includes a satellite, a payload, an object carrying crew or a space flight participant and any subcomponents of the launch vehicle or reentry vehicle that are specifically designed or adapted for that object.
"Space flight activities" means activities and training in any phase of preparing for and undertaking space flight, including:

(a) The research, development, testing or manufacturing of a launch vehicle, reentry vehicle or spacecraft.

(b) The preparation of a launch vehicle, reentry vehicle, payload, spacecraft, crew or space flight participant for launch, space flight and reentry.

(d) Conduct occurring between the launch and reentry.

(e) The preparation of a launch vehicle, reentry vehicle, payload, spacecraft, crew or space flight participant for reentry.

(f) The conduct of reentry and descent.

(g) The conduct of the landing.

(h) The conduct of postlanding recovery of a launch vehicle, reentry vehicle, payload, spacecraft, crew or space flight participant.

"Space flight entity" means a person that conducts space flight activities and that has obtained the appropriate federal aviation administration license or other authorization, including safety approval and a payload determination, and includes any of the following:

(a) A manufacturer or supplier of components, services, spacecrafts, launch vehicles or reentry vehicles used by the entity and reviewed by the federal aviation administration as part of issuing the license or other authorization.

(b) An employee, officer, director, owner, stockholder, member, manager, advisor or partner of the entity, manufacturer or supplier.

(c) An owner or lessor of real property where space flight activities are conducted, including a municipality, county or political subdivision of this state with a contractual relationship with a space flight entity.

(d) A municipality, county, economic development organization or other political subdivision in the territory or extraterritorial jurisdiction in which space flight activities are conducted.

"Space flight participant" means an individual who is not crew and who participates in space flight activities.
"Space flight participant's injury" means an injury sustained by a space flight participant and includes bodily injury, emotional distress, death, disability, property damage or any other loss arising from the individual's participation in space flight activities.

A.R.S. § 12-00781

12-781 - Transportation or storage of firearms; motor vehicles; applicability

12-781. Transportation or storage of firearms; motor vehicles; applicability

A. A property owner, tenant, public or private employer or business entity shall not establish, maintain or enforce a policy or rule that prohibits a person from lawfully transporting or lawfully storing any firearm that is both:

In the person's locked and privately owned motor vehicle or in a locked compartment on the person's privately owned motorcycle.
Not visible from the outside of the motor vehicle or motorcycle.

B. Any policy or rule that is established or maintained or the attempted enforcement of any policy or rule that is in violation of subsection A is contrary to public policy, is null and void and does not have legal force or effect.

C. This section does not apply if:

The possession of the firearm is prohibited by federal or state law.
The motor vehicle is owned or leased by a public or private employer or business entity and is used by an employee in the course of the employment, unless the employee is required to store or transport a firearm in the official discharge of the employee's duties or if the public or private employer or business entity consents to the transportation or storage of the firearm.
The property owner, tenant, public or private employer or business entity provides a parking lot, parking garage or other area designated for parking motor vehicles, that:

(a) Is secured by a fence or other physical barrier.

(b) Limits access by a guard or other security measure.

(c) Provides temporary and secure firearm storage.Â The storage shall be monitored and readily accessible on entry into the premises and allow for the immediate retrieval of the firearm on exit from the premises.

The property owner's, tenant's, public or private employer's or business entity's compliance with this section necessitates the violation of another applicable federal or state law or regulation.
The property owner, tenant, public or private employer or business entity is a nuclear generating station that provides a secured and gated or fenced parking lot, parking garage or other area designated for parking motor vehicles and provides temporary and secure firearm storage. The storage shall be readily accessible on entry into the premises and allow for the immediate retrieval of the firearm on exit from the premises.
The parking lot, parking garage or other area designated for parking motor vehicles is on an owner occupied single family detached residence or a tenant occupied single family detached residence.
The property owner, tenant, public or private employer or business entity is a current United States department of defense contractor and the property is located in whole or in part on a United States military base or a United States military installation.Â If any part of the property is not located on the United States military base or United States military installation, the property shall be contiguous with the base or installation.
The property owner, tenant, public or private employer or business entity provides alternative parking in a location reasonably proximate to the primary parking area for individuals who desire to transport or store a firearm in the individual's motor vehicle and does not charge an extra fee for such parking.

A.R.S. § 15-00203

15-203 - Powers and duties; definition

15-203. Powers and duties; definition

A. The state board of education shall:

Exercise general supervision over and regulate the conduct of the public school system and adopt any rules and policies it deems necessary to accomplish this purpose.
Keep a record of its proceedings.
Make rules for its own government.
Determine the policy and work undertaken by it.
Subject to title 41, chapter 4, article 4, employ staff.
Prescribe and supervise the duties of its employees pursuant to title 41, chapter 4, article 4, if not otherwise prescribed by statute.
Delegate to the superintendent of public instruction the execution of board policies and rules.
Recommend to the legislature changes or additions to the statutes pertaining to schools.
Prepare, publish and distribute reports concerning the educational welfare of this state.
Prepare a budget for expenditures necessary for proper maintenance of the board and accomplishment of its purposes and present the budget to the legislature.
Aid in the enforcement of laws relating to schools.
Prescribe a minimum course of study in the common schools, minimum competency requirements for the promotion of pupils from the third grade and minimum course of study and competency requirements for the promotion of pupils from the eighth grade.Â The state board of education shall prepare a fiscal impact statement of any proposed changes to the minimum course of study or competency requirements and, on completion, shall send a copy to the director of the joint legislative budget committee and the director of the school facilities division within the department of administration.Â The state board of education shall not adopt any changes in the minimum course of study or competency requirements in effect on July 1, 1998 that will have a fiscal impact on school capital costs.
Prescribe minimum course of study and competency requirements for the graduation of pupils from high school. The state board of education shall prepare a fiscal impact statement of any proposed changes to the minimum course of study or competency requirements and, on completion, shall send a copy to the director of the joint legislative budget committee and the director of the school facilities division within the department of administration. The state board of education shall not adopt any changes in the minimum course of study or competency requirements in effect on July 1, 1998 that will have a fiscal impact on school capital costs.
Pursuant to section 15-501.01, supervise and control the certification of persons engaged in instructional work directly as any classroom, laboratory or other teacher or indirectly as a supervisory teacher, speech therapist, principal or superintendent in a school district, including school district preschool programs, or any other educational institution below the community college, college or university level, and prescribe rules for certification.
Adopt a list of approved tests for determining special education assistance to gifted pupils as defined in and as provided in chapter 7, article 4.1 of this title.Â The adopted tests shall provide separate scores for quantitative reasoning, verbal reasoning and nonverbal reasoning and shall be capable of providing reliable and valid scores at the highest ranges of the score distribution.
Adopt rules governing the methods for the administration of all proficiency examinations.
Adopt proficiency examinations for its use and determine the passing score for the proficiency examinations.
Include within its budget the cost of contracting for the purchase, distribution and scoring of the examinations as provided in paragraphs 16 and 17 of this subsection.
Supervise and control the qualifications of professional nonteaching school personnel and prescribe standards relating to qualifications.Â The standards shall not require the business manager of a school district to obtain certification from the state board of education.
Impose such disciplinary action, including disciplinary action pursuant to section 15-505 or the issuance of a letter of censure, suspension, suspension with conditions or revocation of a certificate, on a finding of immoral or unprofessional conduct.
Establish an assessment, data gathering and reporting system for pupil performance as prescribed in chapter 7, article 3 of this title, including qualifying examinations for the college credit by examination incentive program pursuant to section 15-249.06.
Adopt a rule to promote braille literacy pursuant to section 15-214.
Adopt rules prescribing procedures for the state board of education to investigate every written complaint alleging that a certificated person, a person seeking certification or a noncertificated person has engaged in immoral or unprofessional conduct.
For purposes of federal law, serve as the state board for vocational and technological education and meet at least four times each year solely to execute the powers and duties of the state board for vocational and technological education.
Develop and maintain a handbook for use in the schools of this state that provides guidance for the teaching of moral, civic and ethical education. The handbook shall promote existing curriculum frameworks and shall encourage school districts to recognize moral, civic and ethical values within instructional and programmatic educational development programs for the general purpose of instilling character and ethical principles in pupils in kindergarten programs and grades one through twelve.
Require pupils to recite the following passage from the declaration of independence for pupils in grades four through six at the commencement of the first class of the day in the schools, except that a pupil shall not be required to participate if the pupil or the pupil's parent or guardian objects:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. . . .

Adopt rules that provide for certification reciprocity pursuant to section 15-501.01.
Adopt rules that provide for the presentation of an honorary high school diploma to a person who has never obtained a high school diploma and who meets both of the following requirements:

(a) Currently resides in this state.

(b) Provides documented evidence from the department of veterans' services that the person enlisted in the armed forces of the United States and served in World War I, World War II, the Korean conflict or the Vietnam conflict.

Cooperate with the Arizona-Mexico commission in the governor's office and with researchers at universities in this state to collect data and conduct projects in the United States and Mexico on issues that are within the scope of the duties of the department of education and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona-Mexico commission to assess and enhance the economic competitiveness of this state and of the Arizona-Mexico region.
Adopt rules to define and provide guidance to schools as to the activities that would constitute immoral or unprofessional conduct of certificated and noncertificated persons.
Adopt guidelines to encourage pupils in grades nine, ten, eleven and twelve to volunteer for twenty hours of community service before graduation from high school. A school district that complies with the guidelines adopted pursuant to this paragraph is not liable for damages resulting from a pupil's participation in community service unless the school district is found to have demonstrated wanton or reckless disregard for the safety of the pupil and other participants in community service. For the purposes of this paragraph, "community service" may include service learning.Â The guidelines shall include the following:

(a) A list of the general categories in which community service may be performed.

(b) A description of the methods by which community service will be monitored.

(d) Orientation and notification procedures of community service opportunities for pupils entering grade nine, including the development of a notification form. The notification form shall be signed by the pupil and the pupil's parent or guardian, except that a pupil shall not be required to participate in community service if the parent or guardian notifies the principal of the pupil's school in writing that the parent or guardian does not wish the pupil to participate in community service.

(e) Procedures for a pupil in grade nine to prepare a written proposal that outlines the type of community service that the pupil would like to perform and the goals that the pupil hopes to achieve as a result of community service.Â The pupil's written proposal shall be reviewed by a faculty advisor, a guidance counselor or any other school employee who is designated as the community service program coordinator for that school.Â The pupil may alter the written proposal at any time before performing community service.

(f) Procedures for a faculty advisor, a guidance counselor or any other school employee who is designated as the community service program coordinator to evaluate and certify the completion of community service performed by pupils.

To facilitate the transfer of military personnel and their dependents to and from the public schools of this state, pursue, in cooperation with the Arizona board of regents, reciprocity agreements with other states concerning the transfer credits for military personnel and their dependents. A reciprocity agreement entered into pursuant to this paragraph shall:

(a) Address procedures for each of the following:

(i) Transferring student records.

(ii) Awarding credit for completed coursework.

(iii) Allowing a student to satisfy the graduation requirements prescribed in section 15-701.01 through the successful performance on comparable exit-level assessment instruments administered in another state.

(b) Include appropriate criteria developed by the state board of education and the Arizona board of regents.

Adopt guidelines that school district governing boards shall use in identifying pupils who are eligible for gifted programs and in providing gifted education programs and services. The state board of education shall adopt any other guidelines and rules that it deems necessary in order to carry out the purposes of chapter 7, article 4.1 of this title.
For each of the alternative textbook formats of human-voiced audio, large-print and braille, designate alternative media producers to adapt existing standard print textbooks or to provide specialized textbooks, or both, for pupils with disabilities in this state. Each alternative media producer shall be capable of producing alternative textbooks in all relevant subjects in at least one of the alternative textbook formats. The board shall post the designated list of alternative media producers on its website.
Adopt a list of approved professional development training providers for use by school districts as provided in section 15-107, subsection J.Â The professional development training providers shall meet the training curriculum requirements determined by the state board of education in at least the areas of school finance, governance, employment, staffing, inventory and human resources, internal controls and procurement.
Adopt rules to prohibit a person who violates the notification requirements prescribed in section 15-183, subsection C, paragraph 8 or section 15-550, subsection D from certification pursuant to this title until the person is no longer charged or is acquitted of any offenses listed in section 41-1758.03, subsection B. The state board shall also adopt rules to prohibit a person who violates the notification requirements, certification surrender requirements or fingerprint clearance card surrender requirements prescribed in section 15-183, subsection C, paragraph 9 or section 15-550, subsection E from certification pursuant to this title for at least ten years after the date of the violation.
Adopt rules for the alternative certification of teachers of nontraditional foreign languages that allow for the passing of a nationally accredited test to substitute for the education coursework required for certification.
Adopt rules to define competency-based educational pathways for college and career readiness that may be used by schools. The rules shall include the following components:

(a) The establishment of learning outcomes that will be expected for students in a particular subject, beginning with math.

(b) A mechanism to allow pupils in grades seven through twelve who have demonstrated competency in a subject to immediately obtain credit for the mastery of that subject.Â The rules shall include a list of applicable subjects.

In consultation with the department of health services, the department of education, medical professionals, school health professionals, school administrators and an organization that represents school nurses in this state, adopt rules that prescribe the following for school districts and charter schools:

(a) Annual training in the administration of epinephrine delivery systems for designated medical and nonmedical school personnel. The annual training prescribed in this subdivision is optional during any fiscal year in which a school does not stock epinephrine delivery systems at the school during that fiscal year.

(b) Annual training for all school site personnel on the recognition of anaphylactic shock symptoms and the procedures to follow when anaphylactic shock occurs, following the national guidelines of the American academy of pediatrics. The annual training prescribed in this subdivision is optional during any fiscal year in which a school does not stock epinephrine delivery systems at the school during that fiscal year.

(d) Procedures for annually requesting a standing order for epinephrine delivery systems pursuant to section 15-157 from the chief medical officer of the department of health services, the chief medical officer of a county health department, a doctor of medicine licensed pursuant to title 32, chapter 13, a doctor of naturopathic medicine licensed pursuant to title 32, chapter 14 or a doctor of osteopathic medicine licensed pursuant to title 32, chapter 17.

(e) Procedures for reporting the use of epinephrine delivery systems to the department of health services.

In consultation with the department of education, medical professionals, school health professionals, school administrators and an organization that represents school nurses in this state, adopt rules that prescribe the following for school districts and charter schools that elect to administer inhalers:

(a) Annual training in the recognition of respiratory distress symptoms and the procedures to follow when respiratory distress occurs, in accordance with good clinical practice, and the administration of inhalers, as directed on the prescription protocol, by designated medical and nonmedical school personnel.

(b) Requirements for school districts and charter schools that elect to administer inhalers to designate at least two employees at each school to be trained in the recognition of respiratory distress symptoms and the procedures to follow when respiratory distress occurs, in accordance with good clinical practice, and at least two employees at each school to be trained in the administration of inhalers, as directed on the prescription protocol.

(d) Procedures for annually requesting a standing order for inhalers and spacers or holding chambers pursuant to section 15-158 from the chief medical officer of a county health department, a physician licensed pursuant to title 32, chapter 13, 14 or 17 or a nurse practitioner licensed pursuant to title 32, chapter 15.

(e) Procedures for notifying a parent once an inhaler has been administered.

Adopt rules for certification that allow substitute teachers who can demonstrate primary teaching responsibility in a classroom as defined by the state board of education to use the time spent in that classroom toward the required capstone experience for standard teaching certification.
For the purposes of Sandra Day O'Connor civics celebration day instruction under section 15-710.01, develop a list of recommended resources relating to civics education that align with the academic standards prescribed by the state board of education in social studies pursuant to sections 15-701 and 15-701.01. The state board shall establish a process that allows public schools to recommend resources for addition to the list.
Direct and oversee the work of all investigators related to investigating certificated persons, persons seeking certification and noncertificated persons for immoral or unprofessional conduct under this title and rules adopted pursuant to this title. The investigators shall be housed within and are employees of the state board of education.
Establish best practices for social media and cellular telephone use between students and school personnel, including teachers, coaches and counselors, and encourage school district governing boards and charter school governing bodies to adopt policies that implement these best practices. The state board of education shall make these best practices available to both public and private schools.
For the purposes of 9/11 education day instruction under section 15-710.02, develop a list of recommended resources relating to age-appropriate education on the terrorist attacks of September 11, 2001 that align with the academic standards prescribed by the state board pursuant to sections 15-701 and 15-701.01. The state board shall establish a process that allows public schools to recommend resources for addition to the list.

B. The state board of education may:

Contract.
Sue and be sued.
Distribute and score the tests prescribed in chapter 7, article 3 of this title.
Provide for an advisory committee or hearing officers to conduct hearings and screenings to determine whether grounds exist to impose disciplinary action against a certificated person, whether grounds exist to reinstate a revoked or surrendered certificate, whether grounds exist to approve or deny an initial application for certification or a request for renewal of a certificate and whether grounds exist to impose or lift disciplinary action against a noncertificated person. The board may delegate its responsibility to conduct hearings and screenings to its advisory committee or hearing officers. Hearings shall be conducted pursuant to title 41, chapter 6, article 6.
Proceed with the disposal of any complaint requesting disciplinary action against a noncertificated person after the board has imposed disciplinary action pursuant to section 15-505 or against a person holding a certificate as prescribed in subsection A, paragraph 14 of this section after the suspension or expiration of the certificate or surrender of the certificate by the holder.
Assess costs and reasonable attorney fees against a person who files a frivolous complaint or who files a complaint in bad faith.Â Costs assessed pursuant to this paragraph shall not exceed the expenses incurred by the state board of education in the investigation of the complaint.
Issue subpoenas to compel the attendance and testimony of witnesses and production of documents or any physical evidence in connection with an investigation or hearing of an allegation that a certificated person, a person seeking certification or a noncertificated person has engaged in immoral or unprofessional conduct. If a subpoena issued by the board is disobeyed, the board may petition the superior court to enforce the subpoena. Any failure to obey an order of the court pursuant to this paragraph may be punished by the court as contempt.

C. For the purposes of this section, "noncertificated person" has the same meaning prescribed in section 15-505.

A.R.S. § 15-00213

15-213 - Procurement practices of school districts and charter schools; violations; classification; definitions

15-213. Procurement practices of school districts and charter schools; violations; classification; definitions

A. The state board of education shall adopt rules prescribing procurement practices for all school districts in this state as follows:

The state board shall submit to the auditor general proposed rules consistent with the procurement practices prescribed in title 41, chapter 23, modifying the provisions for public notice of invitation for bids, requests for proposals and requests for qualifications to allow a governing board to give public notice of the invitation for bids, requests for proposals and requests for qualifications by publication in the official newspaper of the county as prescribed in section 11-255, modifying the provisions relating to disposal of materials to comply with section 15-342, paragraph 18, providing for governing board delegation of procurement authority and modifying as necessary other provisions that the state board determines are not appropriate for school districts. The rules shall include provisions specifying that school districts are not required to engage in competitive bidding in order to make the decision to participate in programs pursuant to section 15-382 and that a program authorized by section 15-382 is not required to engage in competitive bidding for the services necessary to administer the program or for purchase of insurance or reinsurance. The rules shall include provisions specifying that school districts are not required to engage in competitive bidding in order to place a pupil in a private school that provides special education services if such a placement is prescribed in the pupil's individualized education program and the private school has been approved by the department of education division of special education pursuant to section 15-765, subsection D. This placement is not subject to rules adopted by the state board of education before November 24, 2009 pursuant to this section. The rules for procurement of construction projects shall include provisions specifying that surety bonds furnished as bid security and performance and payment bonds shall be executed and furnished as required by title 34, chapter 2 or 6, as applicable. The rules shall specify the total cost of a procurement that is subject to invitations for bids, requests for proposals and requests for clarification, using the aggregate dollar amount limits for procurements prescribed in section 41-2535.Â The rules must follow the prompt payment requirements prescribed in sections 41-2576 and 41-2577 except for external funding that has not yet been received.
The state board of education shall adopt rules for procurements involving construction not exceeding $150,000, which shall be known as the simplified school construction procurement program. At a minimum, the rules for a simplified construction procurement program shall require that:

(a) Each county school superintendent maintain a list of persons who desire to receive solicitations to bid on construction projects to which additions shall be allowed throughout the year.

(b) The list of persons be available for public inspection.

(c) A performance bond and a payment bond as required by this section be provided for contracts for construction by contractors.

(d) All bids for construction be opened at a public opening and the bids shall remain confidential until the public opening.

(e) All persons desiring to submit bids be treated equitably and the information related to each project be available to all eligible persons.

(f) Competition for construction projects under the simplified school construction procurement program be encouraged to the maximum extent possible.Â At a minimum, a school district shall submit information on each project to all persons listed with the county school superintendent by any school district within that county.

(g) A provision, covenant, clause or understanding in, collateral to or affecting a construction contract that makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state is against this state's public policy and is void and unenforceable.

The state board of education shall adopt rules for the procurement of goods and information services by school districts and charter schools using electronic, online bidding. The rules adopted by the state board shall include the use of reverse auctions and shall be consistent with the procurement practices prescribed in title 41, chapter 23, article 13, modifying as necessary those provisions and the rules adopted pursuant to that article that the state board determines are not appropriate for school districts and charter schools.Â Until the rules are adopted, school districts and charter schools may procure goods and information services pursuant to title 41, chapter 23, article 13 using the rules adopted by the department of administration in implementing that article.
The state board shall adopt rules for the procurement by school districts of any materials, services, goods, construction or construction services that ensure maximum practicable competition as prescribed in section 41-2565 and shall require that a person:

(a) That contracts for or purchases any materials, services, goods, construction or construction services in a manner contrary to the rules adopted by the state board pursuant to this section is personally liable for the recovery of all public monies paid plus twenty percent of that amount and legal interest from the date of payment and all costs and damages arising out of the violation as prescribed in section 41-2616.

(b) That intentionally or knowingly contracts for or purchases any materials, services, goods, construction or construction services pursuant to a scheme or artifice to avoid the rules adopted by the state board pursuant to this section is guilty of a class 4 felony as prescribed in section 41-2616.

(c) That prepares procurement specifications may not receive any direct or indirect benefit from using those specifications.

(d) That serves on a selection committee for a procurement may not be a contractor or subcontractor under a contract awarded under the procurement or provide any specified professional services, construction, construction services, materials or other services under the contract.Â A person that serves on a selection committee for a procurement and that fails to disclose contact with a representative of a competing vendor or fails to provide required accurate information is subject to a civil penalty as prescribed in section 41-2616.

The state board shall adopt rules requiring school districts to obtain and maintain a record of proof that a construction or construction services provider that has been awarded a contract with the school district, or school purchasing cooperative, has a valid license to practice in this state.
The auditor general shall review the proposed rules to determine whether the rules are consistent with the procurement practices prescribed in title 41, chapter 23 and any modifications are required to adapt the procedures for school districts.
If the auditor general approves the proposed rules, the auditor general shall notify the state board in writing and the state board shall adopt such rules.
If the auditor general objects to the proposed rules, the auditor general shall notify the state board of the objections in writing and the state board, in adopting the rules, shall conform the proposed rules to meet the objections of the auditor general or revise the proposed rules to which an objection has been made and submit the revisions to the auditor general for approval.

B. After the bids submitted in response to an invitation for bids are opened and the award is made or after the proposals or qualifications are submitted in response to a request for proposals or a request for qualifications and the award is made, the governing board shall make available for public inspection all information, all bids, proposals and qualifications submitted and all findings and other information considered in determining whose bid conforms to the invitation for bids and will be the most advantageous with respect to price, conformity to the specifications and other factors or whose proposal or qualifications are to be selected for the award, including the rationale for awarding a contract for any specified professional services, construction, construction services or materials to an entity selected from a qualified select bidders list or through a school purchasing cooperative. The invitation for bids, request for proposals or request for qualifications shall include a notice that all information and bids, proposals and qualifications submitted will be made available for public inspection.Â The rules adopted by the state board shall prohibit the use in connection with procurement of specifications in any way proprietary to one supplier unless the specification includes all of the following:

A statement of the reasons no other specification is practicable.
A description of the essential characteristics of the specified product.
A statement specifically allowing an acceptable alternative product to be supplied.

C. A project or purchase may not be divided or sequenced into separate projects or purchases in order to avoid the limits prescribed by the state board under subsection A of this section.

D. A contract for the procurement of construction or construction services shall include a provision that provides for negotiations between the school district and the contractor for the recovery of damages related to expenses incurred by the contractor for a delay for which the school district is responsible, that is unreasonable under the circumstances and that was not within the contemplation of the parties to the contract.Â This subsection does not void any provision in the contract that requires notice of delays, provides for arbitration or any other procedure for settlement or provides for liquidated damages.

E. The auditor general may conduct discretionary reviews, investigations and audits of the financial and operational procurement activities of school districts, nonexempt charter schools and school purchasing cooperatives. The auditor general has final review and approval authority over all school district, nonexempt charter school and school purchasing cooperative audit contracts and any audit reports issued in accordance with this section. If the attorney general has reasonable cause to believe an employee of a school district or school purchasing cooperative, or an employee of an entity that has been awarded a contract by a school district or school purchasing cooperative, has engaged in, is engaging in or is about to engage in any practice or transaction that violates the rules adopted by the state board of education pursuant to this section, the attorney general may:

Require that person to file on forms prescribed by the attorney general a statement or report in writing and under oath as to all the facts and circumstances concerning a violation of the rules adopted by the state board pursuant to this section by that person and any other data and information deemed necessary by the attorney general.
Examine under oath any person in connection with a violation of the rules adopted by the state board pursuant to this section.

F. In addition to the requirements of sections 15-914 and 15-914.01, school districts, nonexempt charter schools and school purchasing cooperatives, in connection with any audit conducted by a certified public accountant, shall contract for a systematic review of purchasing practices using methodology consistent with sampling guidelines established by the auditor general. The auditor general shall consider cost when establishing guidelines pursuant to this subsection and to the extent possible shall attempt to minimize the cost of the review. The purpose of the review is to determine whether the school district, nonexempt charter school or school purchasing cooperative is in compliance with the procurement laws and applicable procurement rules of this state.Â A copy of the review shall be submitted on completion to the auditor general.Â The auditor general may conduct discretionary reviews of school districts, nonexempt charter schools and school purchasing cooperatives that are not required to contract for independent audits.

G. A school district school employee who has control over personnel actions may not take reprisal against a school district school employee for that employee's disclosure of information that is a matter of public concern, including a violation of this section, to a public body pursuant to title 38, chapter 3, article 9.

H. The attorney general or county attorney has jurisdiction to enforce this section.Â The attorney general or county attorney may seek relief for any violation of this section through an appropriate civil or criminal action in superior court, including an action to enjoin a threatened or pending violation of this section and including an action to enforce compliance with any request for documents made by the auditor general pursuant to this section.

I. The department of education shall enact policies and procedures for the acceptance and disposition of complaints from the public regarding school procurement practices and shall forward all school procurement complaints to the attorney general. Notwithstanding rules adopted by the state board, school districts shall not be required to prepare or submit an annual report on the benefits associated with the use of construction-manager-at-risk, design-build, qualified select bidders list and job-order-contracting methods.

J. The state board of education shall adopt, and the auditor general shall review, rules authorizing school districts to procure construction services by construction-manager-at-risk, design-build, qualified select bidders list and job-order-contracting methods of project delivery. The rules shall not require school districts to obtain bid security for the construction-manager-at-risk method of project delivery.

K. A school district or charter school may evaluate United States general services administration contracts for materials and services.Â The governing board or governing body may authorize purchases under a current contract for materials or services without complying with the requirements of the procurement rules adopted by the state board of education if the governing board or governing body determines in writing that all of the following apply:

The price for materials or services is equal to or less than the contractor's current federal supply contract price with the general services administration.
The contractor has indicated in writing that the contractor is willing to extend the current federal supply contract pricing, terms and conditions to the school district or charter school.
The purchase order adequately identifies the federal supply contract on which the order is based.
The purchase contract is cost effective and is in the best interests of the school district or charter school.

L. Unless otherwise provided by law, multiterm contracts for materials or services and contracts for job-order-contracting construction services may be entered into if the duration of the contract and the conditions of renewal or extension, if any, are included in the invitation for bids or the request for proposals and if monies are available for the first fiscal period at the time the contract is executed. The duration of contracts for materials or services and contracts for job-order-contracting construction services are limited to not more than five years unless the governing board determines in writing before the procurement solicitation is issued that a contract of longer duration would be advantageous to the school district. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of monies.

M. Notwithstanding the rules adopted by the state board of education, the maximum dollar amount of an individual job order for job-order-contracting construction services is $1,000,000 or a higher or lower amount prescribed by the governing board in a policy adopted in a public meeting held pursuant to title 38, chapter 3, article 3.1. Requirements shall not be artificially divided or fragmented in order to constitute a job order that satisfies the requirements of this subsection.

N. A person who supervises or participates in contracts, purchases, payments, claims or other financial transactions, or a person who supervises or participates in the planning, recommending, selecting or contracting for materials, services, goods, construction, or construction services of a school district or school purchasing cooperative is guilty of a class 6 felony if the person solicits, accepts or agrees to accept any personal gift or benefit with a value of $300 or more from a person or vendor that has secured or has taken steps to secure a contract, purchase, payment, claim or financial transaction with the school district or school purchasing cooperative. Soliciting, accepting or agreeing to accept any personal gift or benefit with a value of less than $300 is a class 1 misdemeanor. A gift or benefit does not include an item of nominal value such as a greeting card, t-shirt, mug or pen.

O. Any person or vendor that has secured or has taken steps to secure a contract, purchase, payment, claim or financial transaction with a school district or school purchasing cooperative that offers, confers or agrees to confer any personal gift or benefit with a value of $300 or more on a person who supervises or participates in contracts, purchases, payments, claims or other financial transactions, or on a person who supervises or participates in planning, recommending, selecting or contracting for materials, services, goods, construction or construction services of a school district or school purchasing cooperative, is guilty of a class 6 felony. Offering, conferring or agreeing to confer any personal gift or benefit with a value of less than $300 is a class 1 misdemeanor. A gift or benefit does not include an item of nominal value such as a greeting card, t-shirt, mug or pen.

P. Any person or vendor convicted under subsection O of this section may be suspended for up to six months or barred for up to three years by the director of the department of administration from doing business with school districts and school purchasing cooperatives. The director of the department of administration shall adopt rules, including administrative procedures, to suspend or bar any person from consideration for award of contracts pursuant to this section.

Q. For the purposes of this section:

"Gift or benefit" means a payment, distribution, expenditure, advance, deposit or donation of monies, any intangible personal property or any kind of tangible personal or real property.Â Gift or benefit does not include either:

(a) Food or beverage.

(b) Expenses or sponsorships relating to a special event or function to which individuals listed in subsection N of this section are invited.

"Nonexempt charter school" means a charter school that is not exempted from procurement laws pursuant to section 15-183, subsection E, paragraph 6.
"School purchasing cooperative" means an entity that is engaged in cooperative purchasing as defined in section 41-2631.
"Total cost" means the cost of all materials and services, including the cost of labor performed by employees of the school district, for all construction as provided in subsection A of this section.

A.R.S. § 15-00249

15-249 - Department of education; education learning and accountability system; reports; reviews

15-249. Department of education; education learning and accountability system; reports; reviews

A. Subject to the appropriation of state monies or the receipt of federal monies, private donations or grants from any lawful public or private source for this purpose, the department of education shall develop and implement the education learning and accountability system to collect, compile, maintain and report student level data for students attending public educational institutions that provide instruction to pupils in preschool programs, kindergarten programs, grades one through twelve and postsecondary educational programs in this state.

B. The education learning and accountability system shall:

Maintain longitudinal, student level data, including student demographic, grade level, assessment, teacher assignment and other data required to meet state and federal reporting requirements.
Incorporate the student accountability information system prescribed in chapter 9, article 8 of this title.
Be accessible through commonly used internet web browsers to carry out the data collection, compilation and reporting duties prescribed in this title.

C. Student level nontest data is prohibited from inclusion in longitudinal, student level data unless approved in a public meeting of the state board of education and linked on the state board's home page pursuant to section 15-741, subsection A, paragraph 7.

D. The department of education may contract with a third party to carry out the purposes of this section.

E. The department of education shall develop a detailed plan to develop and implement the education learning and accountability system.

F. The department of education shall present the plan developed pursuant to subsection E of this section to the state board of education for review and approval.Â The department of education shall continue to provide quarterly reports to the state board of education, or on request, for review and approval of the state board of education, on developing and implementing the education learning and accountability system.Â All reports provided shall include progress and expenditures to date, timelines and cost estimates for completion.

G. Any contract awarded pursuant to subsection D of this section shall allow the superintendent of public instruction to renew the contracts for two subsequent periods of not more than three years each and shall prescribe the circumstances under which the superintendent of public instruction may terminate the contracts.Â The contracts shall allow this state to cancel any contract at any time after the first year of operation, without penalty to this state, on ninety days' written notice and shall require the contractor to be in compliance at all times with state and federal law.

H. Any contract awarded pursuant to subsection D of this section may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the contract's effective date.Â Any adjustment made pursuant to the terms of the contract must be applied to the total payments made to the contractor for the previous contract year and shall not exceed the percentage change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year.Â Any price or cost adjustments that are different than those authorized in this subsection may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

I. The superintendent of public instruction shall not award a contract pursuant to this section unless:

The superintendent of public instruction receives an acceptable proposal pursuant to any request for proposals.Â For the purposes of this paragraph, "acceptable proposal" means a proposal that substantially meets all of the requirements or conditions prescribed in this section and in the request for proposals.
The proposal offers a level and quality of services that equal or exceed the services that would be provided by this state.
The contractor provides audited financial statements for the previous five years, or for each year that the contractor has been in operation if fewer than five years, and provides other financial information as requested.

J. The sovereign immunity of this state does not apply to any contractor who is a party to any contract pursuant to this section.Â The contractor or any agent of the contractor may not plead the defense of sovereign immunity in any action arising out of the performance of the contract.

K. The terms of any contract pursuant to this section are subject to review by the joint legislative budget committee before placement of any advertisement that solicits a response to a request for proposals.Â Any proposed modification or amendment to the contract is subject to prior review by the joint legislative budget committee.

L. During the first year of operation under a contract executed pursuant to this section, the contracting entity shall submit monthly reports to the department of education as prescribed by the department.Â After the first year of operation under the contract, the contracting entity shall submit quarterly reports to the department as prescribed by the department.

M. At the end of the second year of a contract executed pursuant to this section, an independent evaluator selected by the superintendent of public instruction shall conduct and complete a performance review to determine if the contracting entity has met the goals specified in the contract. The independent evaluator shall submit a report of the independent evaluator's findings to the governor, the president of the senate and the speaker of the house of representatives on or before May 1, and shall provide a copy of this report to the secretary of state.

A.R.S. § 15-00421

15-421 - Governing boards; members; qualifications; prohibitions; candidate statements; definitions

15-421. Governing boards; members; qualifications; prohibitions; candidate statements; definitions

A. The governing body of a school district shall be a governing board.Â There shall be three governing board members, except as otherwise provided by this section and section 15-425, subsection A.

B. The governing body of a high school district shall be a governing board composed of:

In a single district, the governing board members of the common school district.
In a union high school district, five members.

C. A person is eligible for election to the office of governing board member if all of the following apply:

The person is a registered voter of this state.
The person has been a resident of the school district for at least one year immediately preceding the day of election.
The person is not subject to registration as a sex offender in this state or in any other jurisdiction.

D. An employee of a school district, including a person who directly provides certified or classified services to the school district as an employee of a third-party contractor, or the spouse of such an employee may not hold membership on the governing board of a school district by which the employee is employed.

E. Notwithstanding subsection D of this section and title 38, chapter 3, article 8, a small school district may employ, including employment through a third-party contractor that provides services to the small school district, a substitute teacher who is related to a member of the governing board as immediate family and who has had the same household of residence within the preceding four years.Â If a small school district employs a substitute teacher pursuant to this subsection, the member of the governing board who is related to the substitute teacher shall be recused from voting on any matter relating to substitute teachers.

F. A school district may employ, including employment through a third-party contractor that provides services to the school district, a person who served as a member of the school district's governing board during the preceding two years only in a position in which the person will provide services directly to students, including as a certificated teacher, a substitute teacher and an employee or contractor who provides transportation, instructional support or student support services. A school district may increase the time period prescribed in this subsection to be more than two years.

G. A member of one governing board is ineligible to be a candidate for nomination or election to or serve simultaneously as a member of any other governing board, except that a member of a governing board may be a candidate for nomination or election for any other governing board if the member is serving in the last year of a term of office. A member of a governing board shall resign the member's seat on the governing board before becoming a candidate for nomination or election to the governing board of any other school district, unless the member of the governing board is serving in the last year of a term of office.

H. Notwithstanding section 15-511, each county school superintendent shall publish on the superintendent's website the statement of each certified candidate for membership on a school district governing board located in the county. The county school superintendent shall list each school district on the superintendent's website from which a link shall be established to the candidate's name, which shall link to the candidate's statement and photograph. The candidate shall submit the statement to the person at the county school superintendent's office assigned to manage candidate statements, after notice of certification from the county school superintendent's office but not later than twenty-one days before the date that general election early ballots are allowed to be mailed. The person shall post each candidate's statement on the county school superintendent's website not later than fourteen days before the date that general election early ballots are allowed to be mailed. If a candidate does not submit a statement, the county school superintendent's website shall state "no response submitted" for the candidate. The candidate statements shall be posted on the website alphabetically by each school district and by candidate. The candidate statement shall be typewritten or electronically submitted. The county school superintendent shall post the statements verbatim as they are received unless a candidate requests in writing that typographical errors be corrected. The candidate statement shall contain the following items in the same size and format for each candidate:

A recent photograph of the candidate.
A statement not to exceed five hundred words.
A disclosure of any relationships by affinity, by consanguinity or by law to the third degree that exist between the candidate and any current governing board members or other candidates for election to the same governing board.

I. Persons related as immediate family who have the same household of residence within four years prior shall not serve simultaneously on the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall serve simultaneously on the governing board of the same school district if the governing board is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

J. A person related as immediate family who has the same household of residence within four years prior to a member of the governing board of the same school district is ineligible to be a candidate for nomination or election to that governing board if the governing board is composed of five members, except that a person related as immediate family who has the same household of residence within four years prior to a member of a governing board may be a candidate for nomination or election to the governing board of the same school district if the member is serving in the last year of a term of office. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be eligible to be a candidate for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

K. Persons related as immediate family who have the same household of residence within four years prior are ineligible to be simultaneous candidates for nomination or election to the governing board of the same school district if the governing board is composed of five members. For a school district with a student count of at least two hundred fifty that is located in a county with a population of more than five hundred thousand persons, not more than two persons related by affinity, by consanguinity or by law to the third degree shall be simultaneous candidates for nomination or election to a governing board that is composed of five members. A qualified elector who resides in the school district may bring an action in superior court to enforce this subsection.

L. For the purposes of this section:

"Household of residence" means the place of abode during applicable time periods or the residence address used by an individual for voter registration or property tax purposes.
"Immediate family" means individuals who are married to each other and any children of those individuals.
"Small school district" has the same meaning prescribed in section 15-901.

A.R.S. § 15-00502

15-502 - Employment of school district personnel; payment of wages of discharged employee

15-502. Employment of school district personnel; payment of wages of discharged employee

A. The governing board at any time may employ and fix the salaries and benefits of employees necessary for the succeeding year. The contracts of all certificated employees shall be in writing, and all employees shall be employed subject to section 38-481. The governing board may transmit and receive contracts of certificated employees in an electronic format and may accept electronic signatures on those contracts.Â If a contract has not been transmitted to the certificated employee by the end of the current school year, the transmittal of an electronic contract to that certificated employee prior to the start of the next school year shall be submitted to both the certificated employee's school district e-mail as well as the certificated employee's personal e-mail in order to notify them of the offer of contract. Each certificated employee shall be responsible for submitting his or her personal e-mail to human resources personnel at the school district for this purpose.Â Documents transmitted in an electronic format pursuant to this subsection shall be considered written documents for the purposes of sections 15-536 and 15-538.01.Â The governing board may adopt requirements that require electronic signatures to be followed by original signatures within a specified time period.Â A governing board that accepts an electronic signature for a certificated employee's contract shall provide validation to the certificated employee that the contract has been transmitted. The governing board may obtain the services of any employee, including teachers, substitute teachers and administrators, by contracting with a private entity that employs personnel required by the school district.

B. A teacher shall not be employed if the teacher has not received a certificate for teaching granted by the proper authorities. If a teacher has filed an application and completed all of the requirements for a certificate but time does not allow a teacher to receive a certificate before the commencement of employment, the conditional certificate shall serve as a certificate for the payment of wages, provided that the teacher files the conditional certificate with the county school superintendent and the certificate is issued within three months of the date of commencing employment. In order to be paid wages beyond the three-month period prescribed in this subsection, the teacher shall file the certificate with the county school superintendent.Â Any contract issued to a teacher who has completed certificate requirements but has not received a certificate shall be specifically contingent on receipt of such a certificate. The governing board of a school district that is subject to section 15-914.01 shall adhere to the duties described in section 15-302, subsection A, paragraph 9 for purposes of this subsection.

C. No dependent, as defined in section 43-1001, of a governing board member may be employed in the school district in which the person to whom such dependent is so related is a governing board member, except by consent of the board.

D. The governing board may employ certificated teachers under contract as part-time classroom teachers. Notwithstanding any other statute, a certificated teacher who has been employed by the school district for more than the major portion of three consecutive school years does not lose the entitlement to the procedures prescribed in sections 15-538.01, 15-539 through 15-544 and 15-547 if the teacher is employed under contract on a part-time basis for at least forty per cent time. For the purposes of this subsection, "forty per cent time" means employed for at least forty per cent of the school day required of full-time teachers of the same grade level or for at least forty per cent of the class load assigned to full-time teachers of the same grade level, as determined by the governing board.

E. The governing board may employ a business manager who has expertise in finance.Â For the purposes of this subsection, "expertise in finance" means one or more of the following:

A baccalaureate degree in accounting, finance, school finance or public finance.
A graduate degree in accounting, finance, school finance or public finance.
Other finance training or finance experience that the governing board determines is sufficient to qualify the person to administer the business operations of the school district.

F. Notwithstanding sections 23-351 and 23-353, if an employee is discharged from the service of a school district, the school district shall pay the wages due to the employee within ten calendar days from the date of discharge.

G. Each school district shall establish policies and procedures to provide teachers with personal liability insurance.

H. Notwithstanding any other law, a school district shall not adopt policies that provide employment retention priority for teachers based on tenure or seniority.

A.R.S. § 15-00505

15-505 - Discipline; educator information system; personnel list; definitions

15-505. Discipline; educator information system; personnel list; definitions

A. Pursuant to the rules and procedures adopted pursuant to section 15-203, the state board of education shall investigate written complaints alleging that a noncertificated person has engaged in immoral or unprofessional conduct.

B. The state board of education may review a complaint and determine whether to take disciplinary action against a noncertificated person who has engaged in immoral or unprofessional conduct, including prohibiting the person's employment at a school district or charter school for up to five years except as otherwise prescribed in section 15-550. The state board shall adopt rules and procedures for disciplinary action of noncertificated persons that are substantially similar to the rules and procedures for certificated persons.

C. Before employing a certificated or noncertificated person, school districts and charter schools shall conduct a search of the prospective employee on the educator information system that is maintained by the department of education.

D. A school district or charter school may not employ either of the following in a position that requires a valid fingerprint clearance card:

A certificated person whose certificate has been suspended, surrendered or revoked, unless the state board of education has subsequently reinstated the person's certificate.
A noncertificated person who has been prohibited from employment at a school district or charter school by the state board of education pursuant to subsection B of this section.

E. Each school district and charter school shall annually submit to the department of education a list of certificated and noncertificated persons who are employed at the school district or charter school.Â The department shall issue guidance to school districts and charter schools regarding this subsection.

F. For the purposes of this section:

"Noncertificated person":

(a) Means a current or prospective employee of a school district or charter school who both:

(i) Does not possess a certificate issued pursuant to rules adopted by the state board of education under section 15-203, subsection A, paragraph 14.

(ii) Is required or allowed to provide services directly to pupils without being supervised by a certificated employee.

(b) Does not include a person who does not hold a certificate and who is one of the following at a school district or charter school:

(i) A transportation employee as defined in section 15-513.

(ii) A food service employee or contractor.

(iii) A maintenance worker.

(iv) An employee or contractor of the school district or charter school that is not required to possess a valid fingerprint clearance card.

"Supervised" means being under the direction of and, except for brief periods of time during a school day or school activity, within sight of a certificated employee when providing direct services to pupils.Â

A.R.S. § 15-00512

15-512 - Noncertificated personnel; fingerprinting personnel; background investigations; affidavit; civil immunity; violation; classification; definition

15-512. Noncertificated personnel; fingerprinting personnel; background investigations; affidavit; civil immunity; violation; classification; definition

A. Noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee and who are initially hired by a school district after January 1, 1990 shall be fingerprinted as a condition of employment except for personnel who are required as a condition of licensing to be fingerprinted if the license is required for employment or for personnel who were previously employed by a school district and who reestablished employment with that district within one year after the date that the employee terminated employment with the district. A school district may require noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee to obtain a fingerprint clearance card as a condition of employment. Even if the school district does not require a fingerprint clearance card as a condition of employment, noncertificated personnel and personnel who are not paid employees of the school district and who are not either the parent or the guardian of a pupil who attends school in the school district but who are required or allowed to provide services directly to pupils without being supervised by a certificated employee may apply for a fingerprint clearance card. A school district may release the results of a background check or communicate whether the person has been issued or denied a fingerprint clearance card to another school district for employment purposes. The employee's fingerprints and the form prescribed in subsection D of this section shall be submitted to the school district within twenty days after the date an employee begins work. A school district may terminate an employee if the information on the form provided under subsection D of this section is inconsistent with the information received from the fingerprint check or the information received in connection with a fingerprint clearance card application. The school district shall develop procedures for fingerprinting employees. For the purposes of this subsection, "supervised" means being under the direction of and, except for brief periods of time during a school day or school activity, within sight of a certificated employee when providing direct services to pupils.

B. Fingerprints submitted pursuant to this section shall be used to conduct 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.

C. The school district shall assume the costs of fingerprint checks and fingerprint clearance cards and may charge these costs to its fingerprinted employee, except that the school district may not charge the costs of the fingerprint check or the fingerprint clearance card to personnel of the school district who are not paid employees.Â The fees charged for fingerprinting shall be deposited with the county treasurer who shall credit the deposit to the fingerprint fund of the school district.Â The costs charged to a fingerprinted employee are limited to and the proceeds in the fund may only be applied to the actual costs, including personnel costs, incurred as a result of the fingerprint checks or the fingerprint clearance cards. The fingerprint fund is a continuing fund that is not subject to reversion.

D. Personnel required to be fingerprinted or obtain a fingerprint clearance card as prescribed in subsection A of this section shall certify on forms that are provided by the school and notarized whether they are awaiting trial on or have ever been convicted of or admitted in open court or pursuant to a plea agreement committing any of the following criminal offenses in this state or similar offenses in another jurisdiction, including a charge or conviction that has been vacated, set aside or expunged:

Sexual abuse of a minor.
Incest.
First or second degree murder.
Kidnapping.
Arson.
Sexual assault.
Sexual exploitation of a minor.
Felony offenses involving contributing to the delinquency of a minor.
Commercial sexual exploitation of a minor.
Felony offenses involving sale, distribution or transportation of, offer to sell, transport, or distribute or conspiracy to sell, transport or distribute marijuana or dangerous or narcotic drugs.
Felony offenses involving the possession or use of marijuana, dangerous drugs or narcotic drugs.
Misdemeanor offenses involving the possession or use of marijuana or dangerous drugs.
Burglary in the first degree.
Burglary in the second or third degree.
Aggravated or armed robbery.
Robbery.
A dangerous crime against children as defined in section 13-705.
Child abuse.
Sexual conduct with a minor.
Molestation of a child.
Manslaughter.
Aggravated assault.
Assault.
Exploitation of minors involving drug offenses.

E. A school district may refuse to hire or may review or terminate personnel who have been convicted of or admitted committing any of the criminal offenses prescribed in subsection D of this section or of a similar offense in another jurisdiction. A school district that is considering terminating an employee pursuant to this subsection shall hold a hearing to determine whether a person already employed shall be terminated. In conducting a review, the governing board shall utilize the guidelines, including the list of offenses that are not subject to review, as prescribed by the state board of education pursuant to section 15-534, subsection C.Â In considering whether to hire or terminate the employment of a person, the governing board shall take into account the following factors:

The nature of the crime and the potential for crimes against children.
Offenses committed as a minor for which proceedings were held under the jurisdiction of a juvenile or an adult court.
Offenses that have been expunged by a court of competent jurisdiction, if the person has been pardoned or if the person's sentence has been commuted.
The employment record of the person since the commission of the crime if the crime was committed more than ten years before the governing board's consideration of whether to hire or terminate the person.
The reliability of the evidence of an admission of a crime unless made under oath in a court of competent jurisdiction.

F. Before a person is employed with the school district, the district shall make documented, good faith efforts to contact previous employers of the person to obtain information and recommendations that may be relevant to the person's fitness for employment, including conducting a search of the educator information system that is maintained by the department of education pursuant to section 15-505. A school district may not employ in a position that requires a valid fingerprint clearance card a person against whom the state board of education has taken disciplinary action as prescribed in section 15-505 or whose certificate has been suspended, surrendered or revoked, unless the state board has subsequently reinstated the person's certificate. A governing board shall adopt procedures for conducting background investigations required by this subsection, including one or more standard forms for use by school district officials to document their efforts to obtain information from previous employers. A school district may provide information received as a result of a background investigation required by this section to any other school district, to any other public school and to any public entity that agrees pursuant to a contract or intergovernmental agreement to perform background investigations for school districts or other public schools. School districts and other public schools may enter into intergovernmental agreements pursuant to section 11-952 and cooperative purchasing agreements pursuant to rules adopted in accordance with section 15-213 for the purposes of performing or contracting for the performance of background investigations and for sharing the results of background investigations required by this subsection. Information obtained about an employee or applicant for employment by any school district or other public school in the performance of a background investigation, including any records indicating that a current or former employee of a school or school district was disciplined for violating policies of the school district governing board pursuant to section 15-153, may be retained by that school district or the other public school or by any public entity that agrees pursuant to contract to perform background investigations for school districts or other public schools and may be provided to any school district or other public school that is performing a background investigation required by this subsection.

G. A school district may fingerprint or require any other employee of the district to obtain a fingerprint clearance card, whether paid or not, or any other applicant for employment with the school district not otherwise required by this section to be fingerprinted or obtain a fingerprint clearance card on the condition that the school district may not charge the costs of the fingerprint check or fingerprint clearance card to the fingerprinted applicant or nonpaid employee.

H. A contractor, subcontractor or vendor or any employee of a contractor, subcontractor or vendor who is contracted to provide services on a regular basis at an individual school shall obtain a valid fingerprint clearance card pursuant to title 41, chapter 12, article 3.1.Â A school district governing board shall adopt policies to exempt a person from the requirements of this subsection if the person's normal job duties are not likely to result in independent access to or unsupervised contact with pupils. Â A school district, its governing board members, its school council members and its employees are exempt from civil liability for the consequences of adoption and implementation of policies and procedures pursuant to this subsection unless the school district, its governing board members, its school council members or its employees are guilty of gross negligence or intentional misconduct.

I. Subsection A of this section does not apply to a person who provides instruction or other education services to a pupil, with the written consent of the parent or guardian of the pupil, under a work release program, advance placement course or other education program that occurs off school property.

J. Public entities that agree pursuant to contract to perform background investigations, public schools, the department of education, the state board of education and previous employers who provide information pursuant to this section are immune from civil liability unless the information provided is false and is acted on by the school district to the harm of the employee and the public entity, the public school, the previous employer, the state board of education or the department of education knows the information is false or acts with reckless disregard of the information's truth or falsity. A school district that relies on information obtained pursuant to this section in making employment decisions is immune from civil liability for use of the information unless the information obtained is false and the school district knows the information is false or acts with reckless disregard of the information's truth or falsity.

K. The superintendent of a school district or chief administrator of a charter school or the person's designee who is responsible for implementing the governing board's policy regarding background investigations required by subsection F of this section and who fails to carry out that responsibility is guilty of unprofessional conduct and is subject to disciplinary action by the state board.

L. A school district may hire noncertificated personnel before receiving the results of the fingerprint check or a fingerprint clearance card but may terminate employment if the information on the form provided in subsection D of this section is inconsistent with the information received from the fingerprint check or the fingerprint clearance card. In addition to any other conditions or requirements deemed necessary by the superintendent of public instruction to protect the health and safety of pupils, a school district may hire noncertificated personnel who are required or allowed unsupervised contact with pupils before the results of a fingerprint check are received or a fingerprint clearance card is issued if the school district does all of the following:

Documents in the applicant's file the necessity for hiring and placing the applicant before a fingerprint check could be completed or a fingerprint clearance card could be issued.
Ensures that the department of public safety completes a statewide criminal history information check on the applicant every one hundred twenty days until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.
Obtains references from the applicant's current employer and two most recent previous employers except for applicants who have been employed for at least five years by the applicant's most recent employer.
Provides general supervision of the applicant until the date that the fingerprint check is completed or the fingerprint clearance card is issued or denied.
Reports to the superintendent of public instruction on June 30 and December 31 each year the number of applicants hired before the completion of a fingerprint check or the issuance of a fingerprint clearance card. In addition, the school district shall report the number of applicants for whom fingerprint checks were not received or fingerprint clearance cards were not issued after one hundred twenty days and after one hundred seventy-five days of hire.

M. Notwithstanding any other law, this section does not apply to pupils who attend school in a school district and who are also employed by a school district.

N. A person who makes a false statement, representation or certification in any application for employment with the school district is guilty of a class 3 misdemeanor.

O. For the purposes of this section, "background investigation" means any communication with an employee's or applicant's former employer that concerns the education, training, experience, qualifications and job performance of the employee or applicant and that is used for the purpose of evaluating the employee or applicant for employment. Background investigation does not include the results of any state or federal criminal history records check.

A.R.S. § 15-00513

15-513 - Transportation employees; chemical abuse education; drug tests; costs; termination from employment; appeal; definition

15-513. Transportation employees; chemical abuse education; drug tests; costs; termination from employment; appeal; definition

A. Beginning on January 1, 1991, a transportation employee shall submit to drug and alcohol testing if the supervisor of the employee, or the supervisor's designee, has probable cause that the employee's job performance has been impaired by the use of alcohol or a drug in violation of title 13, chapter 34. Probable cause shall be based on observance of the employee by district personnel or personnel of a contracting person or entity which furnishes transportation services to the school district and shall be documented by an affidavit signed by the person who has observed the behavior and the supervisor of the employee or the supervisor's designee.

B. A transportation employee shall submit to drug and alcohol testing after an accident involving a vehicle used to transport pupils or an accident involving equipment used in the performance of the employee's duties if the supervisor of the employee, or the supervisor's designee, has probable cause, based on knowledge of the events and circumstances of the accident, that the employee's involvement in the accident was influenced by the use of alcohol or a drug in violation of title 13, chapter 34. Probable cause shall be documented by an affidavit signed by the supervisor of the employee, or the supervisor's designee.

C. School districts shall develop procedures for drug and alcohol testing of transportation employees as provided in the section.

D. The school district shall assume the costs of the drug and alcohol testing of a transportation employee. If the results of a test are positive, the school district may charge the costs of the test to the tested employee. The costs charged to the employee are limited to the actual costs incurred as a result of testing. If the results of a test are negative, the school district shall not charge the costs of testing to the tested employee.

E. A transportation employee who refuses to submit to drug and alcohol testing or whose test results are positive may be terminated from employment. School districts shall develop a procedure for an employee to appeal the test findings before termination of the employee.

F. An employee who is terminated or otherwise disciplined under this section shall be entitled to all appeal and review rights the employee would have as a district employee or by contract with another person or entity which furnishes transportation services to the school district.

G. For purposes of this section, "transportation employee" means an individual who is employed by the school district, or by another person or entity which furnishes transportation services to the school district, as the driver of a vehicle used to transport pupils, as a person involved in the maintenance and service of vehicles used to transport pupils, as a person involved in the dispatching or supervision of persons employed as drivers of vehicles used to transport pupils or persons involved in the maintenance and service of vehicles used to transport pupils.

A.R.S. § 15-00514

15-514 - Immoral or unprofessional conduct; duty to report; immunity; definitions

15-514. Immoral or unprofessional conduct; duty to report; immunity; definitions

A. Any certificated personnel, a noncertificated person or a member of a school district governing board or charter school governing body who reasonably suspects or receives a reasonable allegation that a public school employee, including employment through a third-party contractor, has engaged in conduct involving minors that would be subject to the reporting requirements of section 13-3620 shall immediately report or cause reports to be made to a local law enforcement agency.Â If the employee who is the subject of the suspicion or allegation is certificated by the state board of education or is a noncertificated person, the person shall also report the suspicion or allegation to the state board of education in writing as soon as is reasonably practicable but not later than three business days after the person first suspects or receives an allegation of the conduct.Â A report to a school resource officer or a school safety officer does not satisfy the reporting requirement prescribed by this subsection.

B. The superintendent of a school district or the chief administrator of a charter school who reasonably suspects or receives a reasonable allegation that an act of immoral or unprofessional conduct that would constitute grounds for dismissal or criminal charges by a certificated or noncertificated person has occurred shall report the conduct to the state board of education.

C. A person who in good faith reports or provides information pursuant to this section regarding the immoral or unprofessional conduct of a certificated or noncertificated person is not subject to an action for civil damages as a result.

D. A governing board or school or school district employee who has control over personnel decisions shall not take unlawful reprisal against an employee because the employee reports in good faith information as required by this section. For the purposes of this subsection, "unlawful reprisal" means an action that is taken by a governing board or school or school district employee who has control over personnel decisions as a direct result of a lawful report pursuant to this section and, with respect to the reporting employee, results in one or more of the following:

Disciplinary action.
Transfer or reassignment.
Suspension, demotion or dismissal.
An unfavorable performance evaluation.
Other significant changes in duties or responsibilities that are inconsistent with the employee's salary or employment classification.

E. Failure to report information as required by this section by a certificated or noncertificated person constitutes grounds for disciplinary action by the state board of education.

F. A governing board or school district employee who has control over personnel decisions and who reasonably suspects or receives a reasonable allegation that a person certificated by the state board of education or a noncertificated person has engaged in conduct involving minors that would be subject to the reporting requirements of section 13-3620 and this article shall not accept the resignation of the certificate holder or noncertificated person until these suspicions or allegations have been reported to the state board of education.

G. If the conduct that is the subject of the suspicions or allegations reported pursuant to this section is a reportable offense, any investigation related to the suspicions, allegations or report is subject to the following:

If a school resource officer, school safety officer or school administrator receives a report regarding suspicions or allegations of a reportable offense, the school resource officer, school safety officer or school administrator shall submit to a local law enforcement agency all information relating to the report for the purposes of the local law enforcement agency investigating the reported conduct.
A student who is identified as a potential victim of the alleged conduct may be interviewed only as provided by the local county protocol that is adopted pursuant to section 8-817. Â This paragraph does not prevent a school employee, school resource officer or school safety officer from receiving a voluntary report from a student who is an alleged victim that a school employee committed a reportable offense.

H. For the purposes of this section:

"Noncertificated person" has the same meaning prescribed in section 15-505.
"Reportable offense" has the same meaning prescribed in section 13-3620.
"School safety officer" means a peace officer who is working in an off-duty capacity at a school.

A.R.S. § 15-00532

15-532 - Examination on state and United States constitutions; reciprocity requirement; exemption; intergovernmental agreement or contract for administration and evaluation

15-532. Examination on state and United States constitutions; reciprocity requirement; exemption; intergovernmental agreement or contract for administration and evaluation

A. A person who is applying for a certificate authorizing the person to become a teacher in a school, in addition to fingerprinting and other requirements, shall either complete the required classes or pass a satisfactory examination on the provisions and principles of the Constitutions of the United States and Arizona.

B. A person who has not met the requirements of this section at the time application is made but who has met all other requirements shall be granted a certificate for at least three years, except that a person who has not met the requirements of this section but who has met all other requirements and who applies for a certificate authorizing the person to teach an academic course that focuses predominantly on history, government, social studies, citizenship, law or civics shall be granted a certificate for not more than one year.Â No additional certificate may be granted until all requirements have been fulfilled as provided by the regulations of the state board of education governing certification of teachers. A person who is applying for reciprocity pursuant to section 15-203, subsection A, paragraph 27 shall be issued a standard certificate and demonstrate completion of the requirements pursuant to the timelines established in this section. The department of education or state board of education may temporarily suspend the standard certificate of a person who fails to meet the requirements of this section within the prescribed time frames. A certificate that is temporarily suspended pursuant to this subsection is not considered a disciplinary action and a person shall be allowed to correct the deficiency within the remaining time of the standard certification.

C. A noncertified person, qualified under the federal and state plans for vocational education, shall be exempt from this section for the purpose of acting as an instructor for special adult and evening classes.

D. The state board of education may enter into intergovernmental agreements or contracts pursuant to title 11, chapter 7, article 3 for the administration and evaluation of the examination on the provisions and principles of the Constitutions of the United States and Arizona. Notwithstanding section 15-531, the intergovernmental agreement or contract shall specify the fee for the administration and evaluation of the examination and may provide for the retention of all or part of the monies by the contractor administering and evaluating the examination.

E. A university under the jurisdiction of the Arizona board of regents shall offer the classes required by this section to students who are pursuing a bachelor of arts degree in education or a bachelor of science degree in education at that university.

A.R.S. § 17-00316

17-316 - Interference with rights of hunters; classification; civil action; exceptions

17-316. Interference with rights of hunters; classification; civil action; exceptions

A. It is a class 2 misdemeanor for a person while in a hunting area to intentionally interfere with, prevent or disrupt the lawful taking of wildlife by:Â

Harassing, driving or disturbing any wildlife.
Blocking, obstructing or impeding, or attempting to block, obstruct or impede, a person lawfully taking wildlife.
Erecting a barrier without the consent of the landowner or lessee with the intent to deny ingress to or egress from areas where wildlife may be lawfully taken.
Making or attempting to make physical contact, without permission, with a person lawfully taking wildlife.
Engaging in, or attempting to engage in, theft, vandalism or destruction of real or personal property.
Disturbing or altering, or attempting to disturb or alter, the condition or authorized placement of real or personal property intended for use in the lawful taking of wildlife.
Making or attempting to make loud noises or gestures, set out or attempt to set out animal baits, scents or lures or human scent, use any other natural or artificial visual, aural, olfactory or physical stimuli, or engage in or attempt to engage in any other similar action or activity, in order to disturb, alarm, drive, attract or affect the behavior of wildlife or disturb, alarm, disrupt or annoy a person lawfully taking wildlife.
Interjecting oneself into the line of fire of a person lawfully taking wildlife.

B. It is a class 3 misdemeanor for a person to enter or remain on a designated hunting area on any public or private lands or waters or state lands including state trust lands with the intent to interfere with, prevent or disrupt the lawful taking of wildlife.

C. The commission or any person properly licensed to take wildlife who is directly affected by a violation of this section may bring an action to restrain conduct declared unlawful in this section and to recover damages.

D. A peace officer who reasonably believes that a person has violated this section may order the person to desist or to leave the area or arrest such person upon refusal to desist or leave.

E. The conduct declared unlawful in this section does not:

Include any incidental interference arising from lawful activity by public land users, including ranchers, miners or recreationists.
Apply to landowners, permittees, lessees or their agents or contractors engaged in animal husbandry practices or agricultural operations.

A.R.S. § 18-00104

18-104 - Powers and duties of the department; violation; classification

18-104. Powers and duties of the department; violation; classification

A. The department shall:

Develop, implement and maintain a coordinated statewide plan for information technology. This includes:

(a) Adopting statewide technical and coordination standards for information technology.

(b) Serving as statewide coordinator for information technology resources.

(c) Developing a statewide disaster recovery plan, identifying risks in each budget unit and directing agencies to adopt risk mitigation strategies, methods and procedures to minimize the risks.

(d) Developing a list of approved department projects by priority category.

(e) Developing a detailed list of information technology assets that are owned, leased or employed by this state.

(f) Evaluating and either approving or disapproving budget unit information technology plans. Budget units shall submit information technology plans that include quality assurance plans and disaster recovery plans to the department each year on or before May 15. The legislative and judicial departments of state government shall submit information technology plans on or before September 1 for information purposes.

(g) Evaluating specific information technology projects relating to the approved budget unit and statewide information technology plans in consultation with the statewide information security and privacy office in the Arizona department of homeland security. The department shall approve or reject projects with total costs of at least $25,000 but not more than $1,000,000 and may establish conditional approval criteria, including procurement purchase authority. If the total project costs exceed $1,000,000, the department shall evaluate the project and make recommendations to the information technology authorization committee. If the total project costs exceed $5,000,000, the department shall require the budget unit to contract with an independent third party to review and guide the technology approach, scope, estimated cost, timeline for completion and overall feasibility of the project before making recommendations to the information technology authorization committee. On or before the thirtieth day following the last day of each calendar quarter, the budget unit shall submit a report from the independent third party to the information technology authorization committee and the joint legislative budget committee regarding the progress of each ongoing project. As part of a budget request for an information technology project that has total costs of at least $25,000, a budget unit shall indicate the status of review by the department.Â Projects shall not be artificially divided to avoid review by the department.

Require that budget units incorporate a life-cycle analysis into the information technology planning, budgeting and procurement processes.
Require that budget units demonstrate expertise to carry out information technology plans, either by employing staff or contracting for outside services.
Monitor information technology projects that the department considers to be major or critical, including expenditure and activity reports and periodic review.
Temporarily suspend the expenditure of monies if the department determines that the information technology project is at risk of failing to achieve its intended results or does not comply with the requirements of this section.
Continuously study emergent technology and evaluate its impact on this state's system.
Advise each budget unit as necessary and report to the committee on an annual basis.
Provide to budget units information technology consulting services it deems necessary, either directly or by procuring outside consulting services.
Maintain all otherwise confidential information received from a budget unit pursuant to this section as confidential.
Provide staff support to the committee.
Subject to section 35-149, accept, spend and account for grants, monies and direct payments from public or private sources and other grants of monies or property to conduct programs that it deems consistent with the government information technology purposes and objectives of the department.
Adopt rules it deems necessary or desirable to further the government information technology objectives and programs of the department.
Formulate policies, plans and programs to effectuate the government information technology purposes of the department.
Advise and make recommendations to the governor and the legislature on all matters concerning its objectives.
Contract and enter into interagency and intergovernmental agreements pursuant to title 11, chapter 7, article 3 with any public or private party.
Have an official seal that shall be judicially noticed.
Establish an interactive online directory of codes, rules, ordinances, if available electronically, and statutes to assist individuals and businesses with regulatory requirements and obligations.Â As provided in this paragraph, counties, municipalities and budget units shall submit information in a manner and format prescribed by the agency.
Manage enterprise-level information technology infrastructure, except that the information security and privacy office in the Arizona department of homeland security shall manage the information security aspects of the infrastructure.
Develop strategies to protect the information technology infrastructure of this state and the data that is stored on or transmitted by the infrastructure.
Temporarily suspend access to information technology infrastructure when directed by the Arizona department of homeland security and consult with the Arizona department of homeland security regarding security policies, standards and procedures.

B. The department shall advise the judicial and legislative branches of state government concerning information technology.

C. The department may examine all books, papers, records and documents in the office of any budget unit and may require any state officer of the budget unit to furnish information or statements necessary to carry out this chapter.

D. The director, any member of the director's staff or any employee who knowingly divulges or makes known in any manner not permitted by law any particulars of any confidential record, document or information is guilty of a class 5 felony.

A.R.S. § 19-00141

19-141 - Initiative and referendum in counties, cities and towns

19-141. Initiative and referendum in counties, cities and towns

A. This chapter applies to the legislation of cities, towns and counties, except as specifically provided to the contrary in this article. The duties required of the secretary of state as to state legislation shall be performed in connection with such legislation by the city or town clerk, county officer in charge of elections or person performing the duties as such. The duties required of the governor shall be performed by the mayor or the chairman of the board of supervisors, the duties required of the attorney general shall be performed by the city, town or county attorney, and the printing and binding of measures and arguments shall be paid for by the city, town or county in like manner as payment is provided for by the state with respect to state legislation. The provisions of section 19-124 with respect to the legislative council analysis do not apply in connection with initiatives and referenda in cities, towns and counties. The printing shall be done in the same manner as other municipal or county printing is done.

B. Distribution of pamphlets shall be made to every household containing a registered voter in the city, town or county by the city or town clerk or by the county officer in charge of elections by mail before the earliest date for receipt by registered voters of any requested early ballot for the election at which the measures are to be voted on.Â If the pamphlet is not mailed before the earliest date for receipt of a requested early ballot, the officer in charge of elections shall provide a notice with the early ballots stating when the pamphlets will be mailed and where and when the pamphlets may be accessed or viewed. Any contract for pamphlet publication or mailing, or both, shall provide for the contractor to pay a penalty for each day of mailing that occurs on or after the earliest date for receipt of requested early ballots.Â The penalty shall be one cent for each household with a registered voter for each day of late mailing, and the monies shall be paid to the office of the officer in charge of elections.Â Pamphlets shall not be mailed or carried less than ten days before the election at which the measures are to be voted upon.

C. Arguments supporting or opposing municipal or county initiative and referendum measures shall be filed with the city or town clerk or the county officer in charge of elections not less than ninety days before the election at which they are to be voted upon.

D. The procedure with respect to municipal and county legislation shall be as nearly as practicable the same as the procedure relating to initiative and referendum provided for the state at large, except the procedure for verifying signatures on initiative or referendum petitions may be established by a city or town by charter or ordinance.

E. References in this section to duties to be performed by city or town officers apply only with respect to municipal legislation, and references to duties to be performed by county officers apply only with respect to county legislation.

F. The duties required of the county recorder with respect to state legislation shall also be performed by the county recorder with respect to municipal or county legislation.

A.R.S. § 20-00159

20-159 - Insurance examiners' revolving fund; definition

20-159. Insurance examiners' revolving fund; definition

A. The director may establish a separate fund designated as the insurance examiners' revolving fund.

B. The fund shall be used for the examination expenses authorized by section 20-156 and to compensate independent contractor examiners as authorized by section 20-148. Independent contractor examiners may be reimbursed or compensated for:

Actual travel expenses in amounts customary for such expenses and approved by the director.
A reasonable living expense allowance at a rate customary for such expenses and approved by the director.
Per diem compensation at a rate customary for such compensation as approved by the director.

C. All persons receiving any reimbursement or compensation from the insurance examiners' revolving fund shall submit to the director for approval a detailed account of all expenses and compensation necessarily incurred on account of an examination. Persons shall not receive or accept any additional emolument on account of an examination. Any reimbursement or compensation made by the fund and approved by the director shall be charged to the person being examined by the director and all receipts shall be credited to the fund.

D. The fund is a special state fund pursuant to section 35-142, subsection A, paragraph 8. Monies in the insurance examiners' revolving fund shall not revert to the general fund.

E. Each authorized insurer shall deposit at a time determined by the director the sum of one hundred dollars with the director to be credited to the insurance examiners' revolving fund. Such deposit not to exceed one hundred dollars shall be returned only if such insurer ceases to transact insurance business in this state.

F. For purposes of this section, "insurer" includes health care services organizations, prepaid dental plan organizations, hospital service corporations, medical service corporations, dental service corporations and hospital, medical, dental and optometric service corporations incorporated in this state.

A.R.S. § 20-00167

20-167 - Fees; definition

20-167. Fees; definition

A. The director shall collect in advance the following fees, determined by the director, which are nonrefundable on payment:

Â Â Â Â Â Not Less Than:Â Â Â Not More Than:

For filing charter documents:Â Â Â Â Â Â Â Â

(a) Original charter documents,

articles of incorporation,

bylaws, or record of

organization of insurers,

or certified copies thereof,

required to be filed with

the director and not also

subject to filing in the

office of the corporation

commissionÂ Â Â Â $Â Â 40.00Â Â $Â 115.00

(b) Amended charter documentsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15.00 45.00

required for filing with

the director any of such

documents also required

by law to be filed in the

office of the corporation

commission

Certificate of authority:

(a) Issuance:

Fraternal benefit societiesÂ Â Â Â Â $Â Â 15.00Â Â $ Â 45.00

Medical or hospital service

corporations, health care

services organizations or

prepaid dental plan

organizationsÂ Â Â Â 40.00 115.00

Mechanical reimbursement

reinsurersÂ Â Â Â 150.00Â Â Â Â Â 450.00

All other insurersÂ Â Â Â Â 100.00Â Â Â Â Â 295.00

(b) Renewal:Â Â Â Â Â Â Â Â Â Â

Fraternal benefit societiesÂ Â Â Â Â 15.00 45.00

Medical or hospital service

corporations, health care

services organizations or

prepaid dental plan

organizationsÂ Â Â Â 40.00 115.00

Domestic stock life insurers,

domestic stock disability

insurers or domestic stock

life and disability insurersÂ 750.00Â Â Â Â Â 2,250.00

Domestic life reinsurers,

domestic disability

reinsurers or domestic

life and disability

reinsurersÂ Â Â 2,250.00 5,500.00

Mechanical reimbursement

reinsurersÂ 2,250.00Â Â Â 5,500.00

All other insurersÂ Â 70.00 205.00

Certificate of registration as an

administrator or application for

Â Â Â renewal under section 20-485.12Â Â Â $Â 100.00Â Â $Â 295.00

Authority to solicit applications

for and issue policies by means

of mechanical vending machinesÂ Â $Â Â 30.00Â Â $Â Â 90.00

Service company permitÂ Â Â $Â 150.00Â Â $Â 450.00
Application for motor vehicle

Â Â Â service contract program approvalÂ $Â 150.00Â Â $Â 450.00

Life care contract application

Â Â Â or annual report $Â 225.00Â Â $Â 675.00

Filing annual statementÂ Â $Â 150.00Â Â $Â 450.00
Annual statement filing for

exempt insurer transacting life

insurance, disability insurance

or annuity business pursuant to

section 20-401.05Â Â Â $Â Â 65.00Â Â $Â 100.00

Licenses and examinations:

(a) Licenses:Â Â Â

Surplus lines broker's license,

quadrenniallyÂ Â Â Â Â $Â 600.00Â Â $1,000.00

All other licenses,

quadrenniallyÂ Â Â Â Â 60.00 180.00

(b) Examinations for license:Â Â Â Â Â Â Â Â Â Â Â

Examination on laws and one kind

of insuranceÂ Â 8.00Â 25.00

Examination on laws and two or

more kinds of insuranceÂ Â Â 15.00 45.00

Miscellaneous:Â Â Â Â

Fee accompanying service of

process on directorÂ $Â Â Â 8.00Â Â $Â Â 25.00

Certificate of director,

under sealÂ Â Â Â 0.00Â 5.00

Copy of document filed in

director's office, per pageÂ Â Â Â Â 0.50Â 0.75

B. Except as provided in section 20-1098.18, the director shall deposit, pursuant to sections 35-146 and 35-147, all fees collected pursuant to this section in the state general fund. A refund is not allowed for any unused portion of a fee, and the director shall not prorate fees.

C. The license fees prescribed by this section shall be payment in full of all demands for all state, county, district and municipal license fees, license taxes, business privilege taxes and business privilege fees and charges of every kind.

D. The director may contract for the examination for licensing adjusters, insurance producers, bail bond agents, risk management consultants and surplus lines brokers. If the director does so, the fee for examinations for licenses pursuant to this section is payable directly to the contractor by the applicant for examination. The director may agree to a reasonable examination fee to be charged by the contractor.Â The fee may exceed the amounts prescribed in this section.

E. The director may contract with a voluntary domestic organization of surplus lines brokers to perform any transaction prescribed in chapter 2, article 5 of this title, including the acceptance or maintenance of the reports required by section 20-408. The director may allow the contractor to charge a stamping fee. The surplus lines broker shall pay the stamping fee established pursuant to this section directly to the contractor.

F. Captive insurers shall pay certificate of authority issuance and renewal fees as prescribed by the director.

G. For the purposes of this section, "stamping fee" means a reasonable filing fee charged by a contractor for any transaction prescribed in chapter 2, article 5 of this title, including the acceptance or maintenance of the reports required by section 20-408.

A.R.S. § 20-00321

20-321 - Definitions

20-321. Definitions

In this article, unless the context otherwise requires:

"Adjuster":

(a) Means any person who for compensation, fee or commission either:

(i) Adjusts, investigates or negotiates settlement of claims arising under property and casualty insurance contracts on behalf of either the insurer or the insured.

(ii) Holds oneself out to perform a service listed in item (i) of this subdivision.

(b) Does not include:

(i) A licensed attorney-at-law who is qualified to practice law in this state.

(ii) A salaried employee of an insurer or of a managing general agent. Â For the purposes of this item, "salaried employee" means an employee whose compensation is not contingent on the outcome of a claim determination.

(iii) A licensed insurance producer who adjusts or assists in adjustment of losses arising under policies procured through the insurance producer.

(iv) An employee of a political subdivision who adjusts or assists in the adjustment of losses arising under policies covering the political subdivision or persons indemnified by the political subdivision.

(v) An independent contractor retained by a licensed adjuster or a person listed in items (i), (ii), (iii) and (iv) of this subdivision for the sole purpose of providing technical assistance in connection with a claim. Independent contractors may include photographers, estimators, engineers, private detectives or handwriting experts.

(vi) An individual who collects claim information from or furnishes claim information to insureds or claimants and who conducts data entry, including entering data into an automated claims adjudication system, if not more than twenty-five persons, as described in this item, are under the supervision of a single licensed adjuster or licensed producer.

(vii) A licensed insurance producer who supervises or adjusts claims pursuant to item (vi) of this subdivision.

(viii) Registered third-party administrators and their employees who are engaged in administering accident and health or life insurance claims.

(ix) An individual who adjusts, investigates or negotiates settlement of only workers' compensation claims.

"Automated claims adjudication system" means a preprogrammed computer system that is designed for the collection, data entry, calculation and final resolution of portable consumer electronic products insurance claims and that:

(a) May be used only by a licensed adjuster, a licensed producer or supervised individuals operating pursuant to this paragraph.

(b) Must comply with all claims payment requirements under this title and be certified as compliant by a licensed adjuster.

"Portable consumer electronic products" means electronic devices and related accessories that are portable in nature.

A.R.S. § 20-00358

20-358 - Disapproval of rates

20-358. Disapproval of rates

A. If at any time the director finds that a filing does not meet the standards set forth in section 20-356, he shall, after a hearing held upon not less than ten days' written notice, in which he shall specify the matters to be considered at such hearing, to every insurer and rating organization which made the filing, issue an order specifying in what respects he finds that the filing fails to meet the requirements of the rate regulatory provisions of this article, and stating when, within a reasonable period thereafter, the filing or rating system shall be deemed no longer effective. Copies of the order shall be sent to every such insurer and rating organization. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth therein.

B. Any person or organization aggrieved with respect to any filing or rating system which is in effect may make written application to the director for a hearing thereon, but the insurer or rating organization which made the filing or uses the rating system shall not be authorized to proceed under this subsection. The application shall specify the grounds to be relied upon by the applicant. If the director finds that the application is made in good faith, that the applicant would be so aggrieved if his grounds are established and that the grounds otherwise justify holding such a hearing, he shall within thirty days after receipt of the application hold a hearing upon not less than ten days' written notice to the applicant and to every insurer and rating organization which made such filing or uses such rating system. If, after the hearing, the director finds that the filing or rating system does not meet the requirements of the rate regulatory provisions of this article, he shall issue an order specifying in what respects he finds that it fails to meet such requirements and stating when, within a reasonable period thereafter, it shall be deemed no longer effective. Copies of the order shall be sent to the applicant and to every such insurer and rating organization. The order shall not affect any contract or policy made or issued prior to the expiration of the period set forth therein.

C. No manual of classifications, rules, rating plan or any modification of any of the foregoing which establishes standards for measuring variations in hazards or expense provisions, or both, and which is being used pursuant to the requirements of section 20-356, shall be disapproved if the rates thereby produced meet the requirements of the rate regulatory provisions of this article.

D. The director may utilize independent contractor examiners experienced in the review of applicable rates and reserves pursuant to sections 20-148 and 20-159 to implement the provisions of this article. All examination and examination related expenses shall be borne by the insurer and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.

A.R.S. § 20-00359

20-359 - Deviations from filed workers' compensation rates

20-359. Deviations from filed workers' compensation rates

A. Every insurer shall adhere to the filings made by the rating organization of which it is a member, except that any member insurer may file with the director:

Up to six uniform percentage deviations that decrease or increase the statewide rate portion of the rating organization's rate filing. If more than one deviation is filed by an insurer, each deviation must be established consistent with the underwriting rules that are based on criteria that would lead to a logical distinction of potential risk.
A subclassification rate related rule that deviates from the rules or schedule rating plan filed by the insurer's rating organization.Â An insurer shall not simultaneously apply a deviation and a schedule rating to the same insured risk.

B. In addition to the six uniform percentage deviations authorized under subsection A, paragraph 1 of this section, insurers covering firefighters and fire investigators may file one uniform percentage deviation that increases the statewide rates under the rating organization's rate filing for the class codes associated with firefighters and fire investigators to address the anticipated increase in losses and expenses for claims that are compensable pursuant to section 23-901.09.Â The deviation filing shall be accompanied by analysis from an actuary that substantively illustrates the basis for the rate increase, including information made available by the industrial commission of Arizona pursuant to section 23-971 and the anticipated and, when available, actual combined loss ratio, claim frequency and claim severity associated with these claims.Â The supporting documentation submitted with the filing must be sufficient to allow the department to assess the reasonableness of the insurer's assumptions and justification for the deviation and shall include data related to workers' compensation indemnity and medical claims and administrative expenses associated specifically with presumptive coverage related to workers' compensation claims. The insurer may use data or analysis from any of the following sources:

The insured or insurer.
Self-funded employers providing workers' compensation.
The industrial commission of Arizona.
A risk retention pool.
Studies and information illustrating the state and national frequency of cancer among firefighters and fire investigators.
The assigned risk pool or assigned risk.
Claims and expense data from other relevant lines of insurance such as long-term disability insurance, group or individual major medical insurance or long-term care insurance.
Other available cancer-related statistics.
Relevant incurred but not reported workers' compensation claims data.

C. The director may use independent contractor examiners to analyze the supporting justification of a requested deviation under subsection B of this section pursuant to section 20-358, subsection D.

D. Notwithstanding subsection A, paragraph 2 of this section, in addition to the deviation filing authorized under subsection B of this section, insurers may file and apply a schedule rating plan to adjust premiums associated with firefighters and fire investigators class codes, based on loss control programs or activities undertaken by the insurer to reduce losses associated with section 23-901.09.Â The schedule rating plan must be filed with and approved by the director and shall be in addition to and separate from any other schedule rating plan available to the insurer.

E. Each deviation filed shall be on file with the director for a waiting period of at least thirty days before it becomes effective, except that a deviation filed pursuant to subsection B of this section shall be on file with the director for at least sixty days before it becomes effective. On written application by the insurer making the filing, the director may authorize a filing to become effective before the waiting period expires. A deviation that is filed pursuant to subsection A, paragraph 1 of this section and that is not disapproved by the director expires the following December 31 at midnight in this state unless the director terminates the deviation sooner. A deviation that is filed pursuant to subsection A, paragraph 2 of this section continues until the insurer withdraws the deviation or the director determines that the deviation no longer meets the standards prescribed in section 20-356, paragraph 1. At any time the director may require an insurer to actuarially support a deviation. The insurer that files the deviation shall simultaneously send a copy of the filing to the rating organization of which it is a member and to any designated rating organization.

F. A rating organization shall notify the director if the organization disapproves any deviation relating to workers' compensation insurance. The director shall notify the industrial commission of Arizona of the disapproval within ten days after receipt of the disapproval from the rating organization.

A.R.S. § 20-00448

20-448 - Unfair discrimination; definitions

20-448. Unfair discrimination; definitions

A. A person shall not make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable or in any other of the terms and conditions of the contract.

B. A person shall not make or permit any unfair discrimination respecting hemophiliacs or between individuals of the same class and of essentially the same hazard in the amount of premium, policy fees or rates charged for any policy or contract of disability insurance or in the benefits payable or in any of the terms or conditions of the contract, or in any other manner whatever. The provisions of this subsection regarding hemophiliacs do not apply to any policy or subscription contract that provides only benefits for specific diseases or for accidental injuries or that provides only indemnity for blood transfusion services or replacement of whole blood products, fractions or derivatives.

C. As to kinds of insurance other than life and disability, a person shall not make or permit any unfair discrimination in favor of particular persons or between insureds or subjects of insurance having substantially like insuring, risk and exposure factors, or expense elements, in the terms or conditions of any insurance contract, or in the rate or amount of premium charged.

D. An insurer shall not refuse to consider an application for life or disability insurance on the basis of a genetic condition, developmental delay or developmental disability.

E. The rejection of an application or the determining of rates, terms or conditions of a life or disability insurance contract on the basis of a genetic condition, developmental delay or developmental disability constitutes unfair discrimination, unless the applicant's medical condition and history and either claims experience or actuarial projections establish that substantial differences in claims are likely to result from the genetic condition, developmental delay or developmental disability.

F. In addition to the provisions in subsection E of this section, the rejection of an application or the determination of rates, terms or conditions of a disability insurance contract on the basis of a genetic condition constitutes unfair discrimination in the absence of a diagnosis of the condition related to information obtained as a result of a genetic test.

G. An insurer that offers life, disability or long-term care insurance contracts may not unfairly discriminate against a living organ donor in the offering, issuance, price or conditions of an insurance policy based solely, and without additional actuarial risks, on that person's status as a living organ donor.Â

H. An insurer that offers life, disability, property or liability insurance contracts shall not deny a claim incurred or deny, refuse, refuse to renew, restrict, cancel, exclude or limit coverage or charge a different rate for the same coverage solely on the basis that the insured or proposed insured is or has been a victim of domestic violence or is an entity or individual that provides counseling, shelter, protection or other services to victims of domestic violence. If an insurer that offers life, disability, property or liability insurance contracts denies a claim incurred or denies, refuses, refuses to renew, restricts, cancels, excludes or limits coverage or charges a different rate for the same coverage on the basis of a mental or physical condition and the insured or the proposed insured is or has been a victim of domestic violence, the insurer shall submit a written explanation to the insured or proposed insured of the reasons for the insurer's actions, in accordance with section 20-2110. The fact that an insured or proposed insured is or has been the victim of domestic violence is not a mental or physical condition. This subsection is not intended to provide any private right or cause of action to or on behalf of any applicant or insured. It is the specific intent of this subsection to provide solely an administrative remedy to the director for any violation of this section. This subsection does not prevent an insurer from refusing to issue a life insurance policy insuring a person who has been the victim of domestic violence if either of the following is true:

The family or household member who commits the act of domestic violence is the applicant for or prospective owner of the policy or would be the beneficiary of the policy and any of the following is true:

(a) The applicant or prospective beneficiary of the policy is known, on the basis of police or court records, to have committed an act of domestic violence.

(b) The insurer has knowledge of an arrest or conviction for a domestic violence related offense by the family or household member.

(c) The insurance company has other reasonable grounds to believe, and those grounds are corroborated, that the applicant or proposed beneficiary of a policy is a family or household member committing acts of domestic violence.

The applicant or prospective owner of the policy lacks an insurable interest in the insured.

I. Subsection H of this section does not prevent an insurer that:

Offers life or disability insurance contracts from underwriting coverage on the basis of an insured's or proposed insured's mental or physical condition if the underwriting:

(a) Does not consider whether or not the mental or physical condition was caused by an act of domestic violence.

(b) Is the same for an insured or proposed insured who is not the victim of domestic violence as it is for an insured or proposed insured who is the victim of domestic violence.

Offers property or liability insurance contracts from underwriting coverage on the basis of the insured's claims history or characteristics of the insured's property and using rating criteria consistent with section 20-384.

J. Any determination made pursuant to section 20-2537 by the external independent review organization shall not be considered in connection with the evaluation of whether any person subject to this article has complied with this section.

K. A property or liability insurer may exclude coverage for losses caused by an insured's intentional or fraudulent act.Â The exclusion shall not deny an insured's otherwise covered property loss if the property loss is caused by an act of domestic violence by another insured under the policy and the insured who claims the property loss cooperates in any investigation relating to the loss and did not cooperate in or contribute to the creation of the property loss.Â The insurer may apply reasonable standards of proof for claims filed under this subsection.Â The insurer may limit the payment to the insured's insurable interest in the property minus any payment made to any mortgagee or other party with a secured interest in the property. This subsection does not require an insurer to pay any amount that is more than the amount of the loss or property coverage limits. An insurer who pays a claim under this subsection has the right of subrogation against any person except the victim of the domestic violence.

L. All insurers shall adopt and adhere to written policies that are consistent with chapter 11 of this title and that specify the procedures to be followed by employees, contractors, producers, agents and brokers to ensure the privacy of and to help protect the safety of a victim of domestic violence when taking an application, investigating a claim, pursuing subrogation or taking any other action relating to a policy or claim involving a victim of domestic violence.Â Insurers shall distribute the written policies to employees, contractors, producers, agents and brokers who have access to personal or privileged information regarding domestic violence.

M. For the purposes of this section:

"Developmental delay" means a delay of at least one and one-half standard deviations from the norm.
"Developmental disability" has the same meaning prescribed in section 36-551.
"Domestic violence" means any act that is a dangerous crime against children as defined in section 13-705 or an offense defined in section 13-1201 through 13-1204, 13-1302 through 13-1304, 13-1502 through 13-1504 or 13-1602, section 13-2810, section 13-2904, subsection A, paragraph 1, 2, 3 or 6, section 13-2916 or section 13-2921, 13-2921.01, 13-2923 or 13-3623, if any of the following applies:

(a) The relationship between the victim and the defendant is one of marriage or former marriage or of persons residing or having resided in the same household.

(b) The victim and the defendant have a child in common.

(d) The victim is related to the defendant or the defendant's spouse by blood or court order as a parent, grandparent, child, grandchild, brother or sister, or by marriage as a parent-in-law, grandparent-in-law, stepparent, step-grandparent, stepchild, step-grandchild, brother-in-law or sister-in-law.

(e) The victim is a child who resides or has resided in the same household as the defendant and is related by blood to a former spouse of the defendant or to a person who resides or has resided in the same household as the defendant.

"Gene products" means gene fragments, nucleic acids or proteins derived from deoxyribonucleic acids that would be a reflection of or indicate DNA sequence information.
"Genetic condition" means a specific chromosomal or single-gene genetic condition.
"Genetic test" means an analysis of an individual's DNA, gene products or chromosomes that indicates a propensity for or susceptibility to illness, disease, impairment or other disorders, whether physical or mental, or that demonstrates genetic or chromosomal damage due to environmental factors, or carrier status for a disease or disorder.
"Living organ donor" means a living person who donates an organ to another living person.

A.R.S. § 20-00485

20-485 - Definitions; scope

20-485. Definitions; scope

A. In this article, unless the context otherwise requires:

"Administrator" means any person who collects charges or premiums from or paid on behalf of, or who adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuities other than any of the following:

(a) An employer on behalf of the employer's employees or the employees of one or more subsidiary or affiliated corporations of the employer.

(b) A union on behalf of its members.

(c) An insurer authorized to transact insurance in this state, including its employees and sales representatives, to the extent that it collects charges or premiums from or paid on behalf of, or adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuities lawfully issued and delivered or assumed in this state and pursuant to the laws of this state or another state and for which the insurer or an affiliated insurer is presently directly liable.

(d) An insurer authorized to transact insurance in this state, including its employees and sales representatives, to the extent that it collects charges or premiums from or paid on behalf of, or adjusts or settles claims by, residents of this state in connection with life or health insurance coverage or annuities lawfully issued and delivered or assumed in this state and pursuant to the laws of this state or another state and for which an unaffiliated insurer is presently directly liable.

(e) A person other than an insurer, to the extent that the person's activities are limited to the collection of charges or premiums from or paid on behalf of, or the adjustment or settlement of claims by, residents of this state in connection with life and health insurance coverage issued and delivered or assumed by an affiliated insurer authorized to transact insurance in this state and for which the affiliated insurer is presently directly liable.

(f) A life or disability insurance producer who is licensed in this state or an employee of a licensed producer working at the direction and under the supervision of a licensed producer if the producer or the producer's employee does not adjust or settle claims.

(g) A creditor on behalf of the creditor's debtors with respect to insurance covering a debt between the creditor and its debtors.

(h) A trust and its trustees, agents and employees acting pursuant to the trust established in conformity with 29 United States Code section 186.

(i) A trust exempt from taxation under section 501(a) of the internal revenue code and its trustees and employees acting pursuant to the trust, or a custodian and its agents and employees acting pursuant to a custodian account that meets the requirements of section 401(f) of the internal revenue code.

(j) A financial institution or money transmitter that is subject to supervision or examination by federal or state banking authorities if the financial institution or money transmitter does not adjust or settle claims.

(k) A credit card issuing company that advances for and collects premiums or charges from its credit card holders who have authorized such collection, if the company does not adjust or settle claims.

(l) A person who adjusts or settles claims in the normal course of the person's practice or employment as an attorney and who does not collect charges or premiums in connection with life or health insurance coverage or annuities.

(m) An adjuster who is licensed in this state while acting in accordance with an adjuster's license.

(n) A person who acts only as an administrator of one or more bona fide employee benefit plans established by an employer or an employee organization, or both, for which the insurance laws of this state are preempted pursuant to the employee retirement income security act of 1974 (P.L. 93-406; 88 Stat. 829; 29 United States Code sections 1001 through 1461).

(o) A credit card processing company that processes payments or charges for premiums if the company does not adjust or settle claims.

(p) A qualified marketplace platform on behalf of qualified marketplace contractors that have executed a written contract with the qualified marketplace platform that complies with the requirements of section 23-1603, subsection A.

(q) An employee of the group policyholder who collects or remits premiums for group life insurance, group annuities or group or blanket disability insurance if the person does not adjust claims or receive any commissions.

(r) An administrator of a trust that was established to provide life insurance, disability insurance or annuities to participants in the trust and that is also a group policyholder.Â The administrator may act only as an administrator of the trust and may not adjust or settle claims.

"Affiliate" or "affiliated" means a person who directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a specified person.
"Charges" means cost sharing requirements, including applicable coinsurance, copayments, deductibles or other amounts payable by an insured under the terms of an insurance contract.
"Control" means the direct or ultimate possession of the power to direct or cause the direction of the management and policies of a person whether through voting rights, contracts, other than commercial contracts for goods or nonmanagement services, or otherwise, unless the power is the result of an official position or corporate office. Control exists if any person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing ten percent or more of the voting rights of any other person, including the right to elect or appoint the officers or directors of a nonprofit corporation.
"Insurer" means any person who provides life or health insurance coverage in this state or who transacts annuity business in this state.Â Insurer includes an authorized insurer, hospital, medical, dental or optometric service corporation or health care services organization or any other person providing a plan of insurance subject to the laws of insurance of this state. Insurer does not include a self-insured or a self-funded employee benefit plan if regulation of that plan is preempted pursuant to section 1144(a) of the employee retirement income security act of 1974 (29 United States Code section 1144(a)) but does include an insurer who provides coverage as part of an employee benefit plan.
"Principal" means a person who has the authority to enter into written agreements on behalf of the administrator pursuant to section 20-485.01.
"Qualified marketplace contractor":

(a) Means any person or organization, including an individual, corporation, limited liability company, partnership, sole proprietor or other entity, that enters into an agreement with a qualified marketplace platform to use the qualified marketplace platform's digital platform to provide services to third-party individuals or entities seeking those services.

(b) Does not include a contractor if the services performed consist of transporting freight, sealed and closed envelopes, boxes or parcels or other sealed and closed containers for compensation.

"Qualified marketplace platform":

(a) Means an organization, including a corporation, limited liability company, partnership, sole proprietor or other entity, that both:

(i) Operates a digital website or digital smartphone application that facilitates the provision of services by qualified marketplace contractors to individuals or entities seeking those services.

(ii) Accepts service requests from the public only through its digital website or digital smartphone application and does not accept service requests by telephone, by fax or in person at physical retail locations.

(b) Does not include any digital website or smartphone application if the services facilitated consist of transporting freight, sealed and closed envelopes, boxes or parcels or other sealed and closed containers for compensation.

B. To the extent that an insurer is subject to subsection A, paragraph 1, subdivision (d) of this section, it shall comply with this article except sections 20-485.10 and 20-485.12.

C. This article does not apply to a person acting exclusively as a third party intermediary entity as prescribed in section 20-120.

A.R.S. § 20-00736

20-736 - Transfer of direct obligations; assignment; notice; findings; approval; applicability

20-736. Transfer of direct obligations; assignment; notice; findings; approval; applicability

A. An authorized insurer shall not transfer or assign the insurer's direct obligations under any insurance contract or policy, including annuities and any guaranteed investment contract, on subjects located, resident or to be performed in this state, that were incurred or assumed under the insurer's authority to transact business as an insurer in this state or under a certificate of exemption pursuant to section 20-401.05 to any other insurer or other party by operation of law, including any law that permits the division of a corporation into two or more resulting corporations, unless the affected contract holder or policyholder consents to or fails to reject the transfer or assignment within one hundred eighty days after receiving a fair, adequate and nonmisleading notice of the transfer or assignment or unless the director approves the transfer or assignment pursuant to this section.

B. The director shall not approve any transfer or assignment described in subsection A of this section unless the director makes all of the following findings:

The transaction is fair, reasonable and not contrary to law.
The transaction will not substantially reduce the security of and service to be rendered to contract holders and policyholders in this state.
The transaction will not be hazardous to or prejudicial against insureds in this state.
The nature and details of the transaction have been adequately disclosed.
The transaction will not have an adverse effect on the financial condition of any insurer.
The persons who will control the operation of the insurer or other party to which the obligations to contract holders and policyholders in this state are transferred or assigned possess sufficient competence, experience and integrity.
The plans or proposals for administration of the contracts and policies subject to the transfer or assignment are fair and reasonable.
The insurer or other party to which or through which the obligations to contract holders and policyholders in this state are transferred or assigned are at all material times authorized or exempted pursuant to section 20-401.05 to transact that kind or kinds of insurance in this state and are in compliance with all applicable legal requirements.
The transfer or assignment will not impair any rights to recovery from any insurance guaranty fund or similar association.

C. Nothing in this section limits or otherwise affects:

The lawful administration of a delinquency proceeding or other similar proceeding initiated against an insurer for the purpose of liquidating, rehabilitating, reorganizing or conserving the insurer.
The powers of the receiver or other similar entity in the delinquency proceeding or other similar proceeding.
The jurisdiction of a court presiding over the delinquency proceeding or other similar proceeding.
The exercise of powers and duties as prescribed by the Arizona property and casualty insurance guaranty fund, the Arizona life and disability insurance guaranty fund or any similar organization in any other state.

D. In order to carry out the requirements of this section, the director may use independent contractor examiners, analysts and other technical and professional services in accordance with sections 20-148 and 20-159. All examination and examination related expenses related to the implementation of this section shall be borne by the insurer from which the obligations would be transferred or assigned by virtue of the transaction, and shall be paid by the insurance examiners' revolving fund pursuant to section 20-159.

E. This section does not apply to:

The transfer of private passenger automobile insurance policies from one insurer to an affiliated insurer pursuant to section 20-1631, subsection L.
The transfer or assignment of the direct obligations of an authorized insurer pursuant to a contract of assumption reinsurance.
The transfer or assignment of the direct obligations of an authorized insurer pursuant to a provision of a bona fide indemnity reinsurance contract by which the reinsurer becomes directly liable under the policies or contracts to which the reinsurance contract relates.
A transfer or assignment resulting from a division or merger of a corporation that was filed for regulatory approval in the corporation's state of domicile on or before December 31, 1996. Â

A.R.S. § 23-00211

23-211 - Definitions

23-211. Definitions

In this article, unless the context otherwise requires:

"Agency" means any agency, department, board or commission of this state or a county, city or town that issues a license for purposes of operating a business in this state.
"Employ" means hiring an employee after December 31, 2007.
"Employee":

(a) Means any person who provides services or labor for an employer in this state for wages or other remuneration.

(b) Does not include an independent contractor.

"Employer" means any individual or type of organization that transacts business in this state, that has a license issued by an agency in this state and that employs one or more employees in this state. Employer includes this state, any political subdivision of this state and self-employed persons. In the case of an independent contractor, employer means the independent contractor and does not mean the person or organization that uses the contract labor.
"E-verify program" means the employment verification program as jointly administered by the United States department of homeland security and the social security administration or any of its successor programs.
"Independent contractor" means any individual or entity that carries on an independent business, that contracts to do a piece of work according to the individual's or entity's own means and methods and that is subject to control only as to results.Â Whether an individual or entity is an independent contractor is determined on a case-by-case basis through various factors, including whether the individual or entity:

(a) Supplies the tools or materials.

(b) Makes services available to the general public.

(d) Has an opportunity for profit or loss as a result of labor or service provided.

(e) Invests in the facilities for work.

(f) Directs the order or sequence in which the work is completed.

(g) Determines the hours when the work is completed.

"Intentionally" has the same meaning prescribed in section 13-105.
"Knowingly employ an unauthorized alien" means the actions described in 8 United States Code section 1324a. This term shall be interpreted consistently with 8 United States Code section 1324a and any applicable federal rules and regulations.
"License":

(a) Means any agency permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency for the purposes of operating a business in this state.

(b) Includes:

(i) Articles of incorporation under title 10.

(ii) A certificate of partnership, a partnership registration or articles of organization under title 29.

(iii) A grant of authority issued under title 10, chapter 15.

(iv) Any transaction privilege tax license.

(i) Any license issued pursuant to title 45 or 49 or rules adopted pursuant to those titles.

(ii) Any professional license.

"Unauthorized alien" means an alien who does not have the legal right or authorization under federal law to work in the United States as described in 8 United States Code section 1324a(h)(3).

A.R.S. § 23-00212

23-212 - Knowingly employing unauthorized aliens; prohibition; false and frivolous complaints; violation; classification; license suspension and revocation; affirmative defense

23-212. Knowingly employing unauthorized aliens; prohibition; false and frivolous complaints; violation; classification; license suspension and revocation; affirmative defense

A. An employer shall not knowingly employ an unauthorized alien.Â If, in the case when an employer uses a contract, subcontract or other independent contractor agreement to obtain the labor of an alien in this state, the employer knowingly contracts with an unauthorized alien or with a person who employs or contracts with an unauthorized alien to perform the labor, the employer violates this subsection.

B. The attorney general shall prescribe a complaint form for a person to allege a violation of subsection A of this section. The complainant shall not be required to list the complainant's social security number on the complaint form or to have the complaint form notarized.Â On receipt of a complaint on a prescribed complaint form that an employer allegedly knowingly employs an unauthorized alien, the attorney general or county attorney shall investigate whether the employer has violated subsection A of this section.Â If a complaint is received but is not submitted on a prescribed complaint form, the attorney general or county attorney may investigate whether the employer has violated subsection A of this section.Â This subsection shall not be construed to prohibit the filing of anonymous complaints that are not submitted on a prescribed complaint form. The attorney general or county attorney shall not investigate complaints that are based solely on race, color or national origin.Â A complaint that is submitted to a county attorney shall be submitted to the county attorney in the county in which the alleged unauthorized alien is or was employed by the employer.Â The county sheriff or any other local law enforcement agency may assist in investigating a complaint.Â When investigating a complaint, the attorney general or county attorney shall verify the work authorization of the alleged unauthorized alien with the federal government pursuant to 8 United States Code section 1373(c). A state, county or local official shall not attempt to independently make a final determination on whether an alien is authorized to work in the United States. An alien's immigration status or work authorization status shall be verified with the federal government pursuant to 8 United States Code section 1373(c).Â A person who knowingly files a false and frivolous complaint under this subsection is guilty of a class 3 misdemeanor.

C. If, after an investigation, the attorney general or county attorney determines that the complaint is not false and frivolous:

The attorney general or county attorney shall notify the United States immigration and customs enforcement of the unauthorized alien.
The attorney general or county attorney shall notify the local law enforcement agency of the unauthorized alien.
The attorney general shall notify the appropriate county attorney to bring an action pursuant to subsection D of this section if the complaint was originally filed with the attorney general.

D. An action for a violation of subsection A of this section shall be brought against the employer by the county attorney in the county where the unauthorized alien employee is or was employed by the employer.Â The county attorney shall not bring an action against any employer for any violation of subsection A of this section that occurs before January 1, 2008.Â A second violation of this section shall be based only on an unauthorized alien who is or was employed by the employer after an action has been brought for a violation of subsection A of this section or section 23-212.01, subsection A.

E. For any action in superior court under this section, the court shall expedite the action, including assigning the hearing at the earliest practicable date.

F. On a finding of a violation of subsection A of this section:

For a first violation, as described in paragraph 3 of this subsection, the court:

(a) Shall order the employer to terminate the employment of all unauthorized aliens.

(b) Shall order the employer to be subject to a three year probationary period for the business location where the unauthorized alien performed work.Â During the probationary period the employer shall file quarterly reports in the form provided in section 23-722.01 with the county attorney of each new employee who is hired by the employer at the business location where the unauthorized alien performed work.

(c) Shall order the employer to file a signed sworn affidavit with the county attorney within three business days after the order is issued. The affidavit shall state that the employer has terminated the employment of all unauthorized aliens in this state and that the employer will not intentionally or knowingly employ an unauthorized alien in this state.Â The court shall order the appropriate agencies to suspend all licenses subject to this subdivision that are held by the employer if the employer fails to file a signed sworn affidavit with the county attorney within three business days after the order is issued. All licenses that are suspended under this subdivision shall remain suspended until the employer files a signed sworn affidavit with the county attorney.Â Notwithstanding any other law, on filing of the affidavit the suspended licenses shall be reinstated immediately by the appropriate agencies.Â For the purposes of this subdivision, the licenses that are subject to suspension under this subdivision are all licenses that are held by the employer specific to the business location where the unauthorized alien performed work.Â If the employer does not hold a license specific to the business location where the unauthorized alien performed work, but a license is necessary to operate the employer's business in general, the licenses that are subject to suspension under this subdivision are all licenses that are held by the employer at the employer's primary place of business.Â On receipt of the court's order and notwithstanding any other law, the appropriate agencies shall suspend the licenses according to the court's order.Â The court shall send a copy of the court's order to the attorney general and the attorney general shall maintain the copy pursuant to subsection G of this section.

(d) May order the appropriate agencies to suspend all licenses described in subdivision (c) of this paragraph that are held by the employer for not to exceed ten business days.Â The court shall base its decision to suspend under this subdivision on any evidence or information submitted to it during the action for a violation of this subsection and shall consider the following factors, if relevant:

(i) The number of unauthorized aliens employed by the employer.

(ii) Any prior misconduct by the employer.

(iii) The degree of harm resulting from the violation.

(iv) Whether the employer made good faith efforts to comply with any applicable requirements.

(v) The duration of the violation.

(vi) The role of the directors, officers or principals of the employer in the violation.

(vii) Any other factors the court deems appropriate.

For a second violation, as described in paragraph 3 of this subsection, the court shall order the appropriate agencies to permanently revoke all licenses that are held by the employer specific to the business location where the unauthorized alien performed work.Â If the employer does not hold a license specific to the business location where the unauthorized alien performed work, but a license is necessary to operate the employer's business in general, the court shall order the appropriate agencies to permanently revoke all licenses that are held by the employer at the employer's primary place of business. On receipt of the order and notwithstanding any other law, the appropriate agencies shall immediately revoke the licenses.
The violation shall be considered:

(a) A first violation by an employer at a business location if the violation did not occur during a probationary period ordered by the court under this subsection or section 23-212.01, subsection F for that employer's business location.

(b) A second violation by an employer at a business location if the violation occurred during a probationary period ordered by the court under this subsection or section 23-212.01, subsection F for that employer's business location.

G. The attorney general shall maintain copies of court orders that are received pursuant to subsection F of this section and shall maintain a database of the employers and business locations that have a first violation of subsection A of this section and make the court orders available on the attorney general's website.

H. On determining whether an employee is an unauthorized alien, the court shall consider only the federal government's determination pursuant to 8 United States Code section 1373(c). The federal government's determination creates a rebuttable presumption of the employee's lawful status.Â The court may take judicial notice of the federal government's determination and may request the federal government to provide automated or testimonial verification pursuant to 8 United States Code section 1373(c).

I. For the purposes of this section, proof of verifying the employment authorization of an employee through the e-verify program creates a rebuttable presumption that an employer did not knowingly employ an unauthorized alien.

J. For the purposes of this section, an employer that establishes that it has complied in good faith with the requirements of 8 United States Code section 1324a(b) establishes an affirmative defense that the employer did not knowingly employ an unauthorized alien.Â An employer is considered to have complied with the requirements of 8 United States Code section 1324a(b), notwithstanding an isolated, sporadic or accidental technical or procedural failure to meet the requirements, if there is a good faith attempt to comply with the requirements.

K. It is an affirmative defense to a violation of subsection A of this section that the employer was entrapped. To claim entrapment, the employer must admit by the employer's testimony or other evidence the substantial elements of the violation.Â An employer who asserts an entrapment defense has the burden of proving the following by a preponderance of the evidence:

The idea of committing the violation started with law enforcement officers or their agents rather than with the employer.
The law enforcement officers or their agents urged and induced the employer to commit the violation.
The employer was not predisposed to commit the violation before the law enforcement officers or their agents urged and induced the employer to commit the violation.

L. An employer does not establish entrapment if the employer was predisposed to violate subsection A of this section and the law enforcement officers or their agents merely provided the employer with an opportunity to commit the violation. Â It is not entrapment for law enforcement officers or their agents merely to use a ruse or to conceal their identity. The conduct of law enforcement officers and their agents may be considered in determining if an employer has proven entrapment.

A.R.S. § 23-00311

23-311 - Definitions

23-311. Definitions

In this article, unless the context otherwise requires:

"Commission" means the industrial commission of Arizona.
"Directory order" means a temporary order which becomes mandatory as provided in this article.
"Employee" means every minor in receipt of or entitled to compensation for labor performed for any employer.
"Employer" means every person, firm, corporation, agent, manager, representative, contractor, subcontractor, principal or other person having control or direction of any minor employed at any labor, or responsible directly or indirectly for the wages of another.
"Fair wage" means a wage both fairly and reasonably commensurate with the value of the service or class of service rendered, and sufficient to meet the minimum cost of living necessary for health.
"Mandatory order" means an order the violation of which is subject to the penalties prescribed in section 23-329, subsection B.
"Minor" means a person of either sex under the age of eighteen years. A minor employed as a part time worker whose principal occupation is that of student actually attending public or private school shall not be deemed engaged in an employment within the scope of this article.
"Occupation" means any class of work in any industry, trade, business, or branch thereof, in which minors are gainfully employed, but does not include domestic service in the home of an employer or agricultural labor.
"Oppressive and unreasonable wage" means a wage which is both less than the fair and reasonable value of the services rendered and less than sufficient to meet the minimum cost of living necessary for health.
"Wage" or "wages" means any compensation for labor measured by time, piece, or otherwise.
"Wage board" means a board created as provided in section 23-314.

A.R.S. § 4-00101

4-101 - Definitions

4-101. Definitions

In this title, unless the context otherwise requires:

"Act of violence":

(a) Means an incident that consists of a riot, a fight, an altercation or tumultuous conduct and that meets at least one of the following criteria:

(i) Bodily injuries are sustained by any person and the injuries would be obvious to a reasonable person.

(ii) Is of sufficient intensity as to require the intervention of a peace officer to restore normal order.

(iii) A weapon is brandished, displayed or used.

(iv) A licensee or an employee or contractor of the licensee fails to follow a clear and direct lawful order from a law enforcement officer or a fire marshal.

(b) Does not include the use of nonlethal devices by a peace officer.

"Aggrieved party" means a person who resides at, owns or leases property within a one-mile radius of premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license not later than sixty days after filing the application or fifteen days after action by the local governing body, whichever is sooner.
"Beer":

(a) Means any beverage obtained by the alcoholic fermentation, infusion or decoction of barley malt, hops, rice, bran or other grain, glucose, sugar or molasses, or any combination of them, and may include, as adjuncts in fermentation, honey, fruit, fruit juice, fruit concentrate, herbs, spices and other food materials.

(b) Includes beer aged in an empty wooden barrel previously used to contain wine or distilled spirits and as such is not considered a dilution or mixture of any other spirituous liquor.

"Biometric identity verification device" means a device authorized by the department that instantly verifies the identity and age of a person by an electronic scan of a biometric of the person, through a fingerprint, iris image, facial image or other biometric characteristic, or any combination of these characteristics, that references the person's identity and age against any record described in section 4-241, subsection K, and that meets all of the following conditions:

(a) The authenticity of the record was previously verified by an electronic authentication process.

(b) The identity of and information about the record holder was previously verified through either:

(i) A secondary, electronic authentication process or set of processes using commercially available data, such as a public records query or a knowledge-based authentication quiz.

(ii) Using a state or federal government system of records for digital authentication.

(c) The authenticated record was securely linked to biometrics contemporaneously collected from the verified record holder and is stored in a centralized, highly secured, encrypted biometric database.

"Board" means the state liquor board.
"Bona fide guest" means:

(a) An individual who is personally familiar to the member, who is personally sponsored by the member and whose presence as a guest is in response to a specific and personal invitation.

(b) In the case of a club that meets the criteria prescribed in paragraph 8, subdivision (a) of this section, a current member of the armed services of the United States who presents proper military identification and any member of a recognized veterans' organization of the United States and of any country allied with the United States during current or past wars or through treaty arrangements.

"Broken package" means any container of spirituous liquor on which the United States tax seal has been broken or removed or from which the cap, cork or seal placed on the container by the manufacturer has been removed.
"Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made only to members, spouses of members, families of members, bona fide guests of members and guests at other events authorized in this title:

(a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that has, as the owner, lessee or occupant, operated an establishment for that purpose in this state.

(b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization that has, as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state. An American national fraternal organization as used in this subdivision shall actively operate in at least thirty-six states or have been in active continuous existence for at least twenty years.

(c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph of which all of the capital stock is owned by the local unit or the members and that operates the clubroom facilities of the local unit.

(d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse.

(e) A social club that has more than one hundred bona fide members who are actual residents of the county in which it is located, that owns, maintains or operates club quarters, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of at least one year. The club shall have had, during this one-year period, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club.Â The club's membership shall consist of bona fide dues-paying members paying dues of at least $6 per year, payable monthly, quarterly or annually, which have been recorded by the secretary of the club, and the members at the time of application for a club license shall be in good standing having for at least one full year paid dues. At least fifty-one percent of the members shall have signified their intention to secure a social club license by personally signing a petition, on a form prescribed by the board, which shall also include the correct mailing address of each signer.Â The petition shall not have been signed by a member at a date earlier than one hundred eighty days before the filing of the application.Â The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that is, or has been, primarily formed or activated to obtain a license to sell liquor, but solely to a bona fide club, where the sale of liquor is incidental to the main purposes of the club.

(f) An airline club operated by or for airlines that are certificated by the United States government and that maintain or operate club quarters located at airports with international status.

"Company" or "association", when used in reference to a corporation, includes successors or assigns.
"Control" means the power to direct or cause the direction of the management and policies of an applicant or licensee, whether through the ownership of voting securities or a partnership interest, by agreement or otherwise. Control is presumed to exist if a person has the direct or indirect ownership of or power to vote ten percent or more of the outstanding voting securities of the applicant or licensee or to control in any manner the election of one or more of the directors of the applicant or licensee.Â In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten percent or more of the voting rights of the partnership. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of an officer, partner, employee or agent of the person or a spouse, parent or child of the person.Â Control is also presumed to exist if a creditor of the applicant or licensee holds a beneficial interest in ten percent or more of the liabilities of the licensee. The presumptions in this paragraph regarding control are rebuttable.
"Controlling person" means a person directly or indirectly possessing control of an applicant or licensee.
"Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.
"Craft producer" means a licensed farm winery, a licensed microbrewery or a licensed craft distiller.
"Department" means the department of liquor licenses and control.
"Director" means the director of the department of liquor licenses and control.
"Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in ardent spirits, and any alcoholic mixture or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication.
"Employee" means any person who performs any service on licensed premises on a full-time, part-time or contract basis with consent of the licensee, whether or not the person is denominated an employee or independent contractor or otherwise. Employee does not include a person who is exclusively on the premises for musical or vocal performances, for repair or maintenance of the premises or for the delivery of goods to the licensee.
"Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.04.
"Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of the state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board.
"Legal drinking age" means twenty-one years of age or older.
"License" means a license or an interim retail permit issued pursuant to this title.
"Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee.
"License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations.
"Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full-time basis.
"Menu food item" means a food item from a regular menu, special menu or happy hour menu that is prepared by the licensee or the licensee's employee.
"Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4-205.08.
"Mixed cocktail":

(a) Means any drink combined at the premises of an authorized licensee that contains a spirituous liquor and that is combined with at least one other ingredient, which may include additional spirituous liquors, fruit juice, vegetable juice, mixers, cream, flavored syrup or other ingredients except water, and that when combined contains more than one-half of one percent of alcohol by volume.

(b) Does not include a drink sold in an original manufacturer's packaging or any drink poured from an original manufacturer's package without the addition of all of the cocktail's other ingredients at the premises of the licensed bar, liquor store or restaurant.

"Off-sale retailer" means any person that operates a bona fide regularly established retail liquor store that sells spirituous liquors, wines and beer and any established retail store that sells commodities other than spirituous liquors and that is engaged in the sale of spirituous liquors only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises.
"On-sale retailer" means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises or in individual portions for consumption on the premises.
"Permanent occupancy" means the maximum occupancy of the building or facility as set by the office of the state fire marshal for the jurisdiction in which the building or facility is located.
"Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person.
"Premises" or "licensed premises":

(a) Means the area from which the licensee is authorized to sell, dispense or serve spirituous liquors under the provision of the license.

(b) Includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises.

"Registered alcohol delivery contractor":

(a) Means a person who delivers spirituous liquor to a consumer on behalf of a bar, beer and wine bar, liquor store, beer and wine store or restaurant.

(b) Does not include:

(i) A motor carrier as defined in section 28-5201.

(ii) An independent contractor, a subcontractor of an independent contractor, an employee of an independent contractor or an employee of a subcontractor as provided in section 4-203, subsection J.

"Registered mail" includes certified mail.
"Registered retail agent" means any person who is authorized pursuant to section 4-222 to purchase spirituous liquors for and on behalf of the person and other retail licensees.
"Repeated acts of violence" means:

(a) For licensed premises with a permanent occupancy of two hundred or fewer persons, two or more acts of violence occurring within seven days or three or more acts of violence occurring within thirty days.

(b) For licensed premises with a permanent occupancy of more than two hundred but not more than four hundred persons, four or more acts of violence within thirty days.

(c) For licensed premises with a permanent occupancy of more than four hundred but not more than six hundred fifty persons, five or more acts of violence within thirty days.

(d) For licensed premises with a permanent occupancy of more than six hundred fifty but not more than one thousand fifty persons, six or more acts of violence within thirty days.

(e) For licensed premises with a permanent occupancy of more than one thousand fifty persons, seven or more acts of violence within thirty days.

"Sell" includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in.
"Spirituous liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, any liquid mixture or preparation, whether patented or otherwise, that produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one-half of one percent of alcohol by volume.
"Tamperproof sealed" means designed to prevent consumption without the removal of a tamperproof cap, seal, cork or closure that has a device, mechanism or adhesive that clearly shows whether a container has been opened.
"Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation.
"Vending machine" means a machine that dispenses merchandise through the means of coin, token, credit card or other nonpersonal means of accepting payment for merchandise received.
"Veteran" means a person who has served in the United States air force, army, navy, marine corps or coast guard, as an active nurse in the services of the American red cross, in the army and navy nurse corps in time of war, or in any expedition of the armed forces of the United States, and who has received a discharge other than dishonorable.
"Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant or a licensee.
"Wine" means the product obtained by the fermentation of grapes, other agricultural products containing natural or added sugar or cider or any such alcoholic beverage fortified with grape brandy and containing not more than twenty-four percent of alcohol by volume.

A.R.S. § 4-00203

4-203 - Licenses; issuance; transfer; reversion to state; tastings; rules; off-sale privileges; order requirements

4-203. Licenses; issuance; transfer; reversion to state; tastings; rules; off-sale privileges; order requirements

A. A spirituous liquor license shall be issued only after satisfactory showing of the capability, qualifications and reliability of the applicant and, with the exception of wholesaler, producer, government or club licenses, that the public convenience requires and that the best interest of the community will be substantially served by the issuance.Â If an application is filed for the issuance of a transferable or nontransferable license, other than for a craft distiller license, a microbrewery license or a farm winery license, for a location that on the date the application is filed has a valid license of the same series, or in the case of a restaurant license application filed for a location with a valid hotel-motel license, issued at that location, there shall be a rebuttable presumption that the public convenience and best interest of the community at that location was established at the time the location was previously licensed.Â The presumption may be rebutted by competent contrary evidence. The presumption shall not apply once the licensed location has not been in use for more than one hundred eighty days and the presumption shall not extend to the personal qualifications of the applicant.

B. The license shall be to manufacture, sell or deal in spirituous liquors only at the place and in the manner provided in the license. A separate license shall be issued for each specific business, and each shall specify:

The particular spirituous liquors that the licensee is authorized to manufacture, sell or deal in.
The place of business for which issued.
The purpose for which the liquors may be manufactured or sold.

C. A spirituous liquor license issued to a bar, a liquor store or a beer and wine bar shall be transferable as to any permitted location within the same county, if the transfer meets the requirements of an original application.Â A spirituous liquor license may be transferred to a person qualified to be a licensee, if the transfer is pursuant to either judicial decree, nonjudicial foreclosure of a legal or equitable lien, including security interests held by financial institutions pursuant to section 4-205.05, a sale of the license, a bona fide sale of the entire business and stock in trade, or other bona fide transactions that are provided for by rule.Â Any change in ownership of the business of a licensee, directly or indirectly, as defined by rule is deemed a transfer, except that there is no transfer if a new artificial person is added to the ownership of a licensee's business but the controlling persons remain identical to the controlling persons that have been previously disclosed to the director as part of the licensee's existing ownership.

D. All applications for a new license pursuant to section 4-201 or for a transfer to a new location pursuant to subsection C of this section shall be filed with and determined by the director, except when the governing body of the city or town or the board of supervisors receiving an application pursuant to section 4-201 orders disapproval of the application or when the director, the state liquor board or any aggrieved party requests a hearing. The application shall then be presented to the state liquor board, and the new license or transfer shall not become effective unless approved by the state liquor board.

E. A person who assigns, surrenders, transfers or sells control of a liquor license or business that has a spirituous liquor license shall notify the director within thirty business days after the assignment, surrender, transfer or sale. A spirituous liquor license shall not be leased or subleased. A concession agreement entered into under section 4-205.03 is not considered a lease or sublease in violation of this section.

F. If a person other than those persons originally licensed acquires control over a license or licensee, the person shall file notice of the acquisition with the director within thirty business days after the acquisition of control and a list of officers, directors or other controlling persons on a form prescribed by the director. There is no acquisition of control if a new person is added to the ownership of a licensee's business but the controlling persons remain identical to the controlling persons that have been previously disclosed to the director as part of the licensee's existing ownership. All officers, directors or other controlling persons shall meet the qualifications for licensure as prescribed by this title. On request, the director shall conduct a preinvestigation before the assignment, sale or transfer of control of a license or licensee, the reasonable costs of which, not more than $1,000, shall be borne by the applicant. The preinvestigation shall determine whether the qualifications for licensure as prescribed by this title are met.Â On receipt of notice of an acquisition of control or request of a preinvestigation, the director, within fifteen days after receipt, shall forward the notice of the acquisition of control to the local governing body of the city or town, if the licensed premises is in an incorporated area, or the county, if the licensed premises is in an unincorporated area.Â The director shall include in the notice to the local governing body written instructions on how the local governing body may examine, free of charge, the results of the department's investigation regarding the capabilities, qualifications and reliability of all officers, directors or other controlling persons listed in the application for acquisition of control. The local governing body, or the governing body's designee, may provide the director with a recommendation, either in favor of or against the acquisition of control, within sixty days after the director mails the notice, but section 4-201 does not apply to the acquisition of control provided for in this section.Â A local governing body may charge not more than one fee, regardless of the number of licenses held by the applicant, for review of one or more applications for acquisition of control submitted to the department at the same time and for the same entity.Â Within one hundred five days after filing the notice of the acquisition of control, the director shall determine whether the applicant is qualified, capable and reliable for licensure. A recommendation by the local governing body, or the governing body's designee, against the acquisition of control or denial by the director shall be set for a hearing before the board. The person who has acquired control of a license or licensee has the burden of an original application at the hearing, and the board shall make its determination pursuant to section 4-202 and this section with respect to capability, reliability and qualification.

G. A licensee who holds a license in nonuse status for more than five months shall be required to pay a $100 surcharge for each month thereafter. The surcharge shall be paid at the time the license is returned to active status.Â A license automatically reverts to the state after being held in continuous nonuse for more than thirty-six months.Â The director may waive the surcharge and may extend the time period provided in this subsection for good cause if the licensee files a written request for an extension of time to place the license in active status before the date of the automatic reversion. Unless the reverted license of the licensee has been subsequently reissued, the director shall relieve a licensee or its legal representative from a prior license reversion under this section if the request for such relief is filed in writing not later than two years after the date of reversion.Â A license shall not be deemed to have gone into active status if the license is transferred to a location that at the time of or immediately before the transfer had an active license of the same type, unless the licenses are under common ownership or control.

H. A restructuring of a licensee's business is not an acquisition of control, a transfer of a spirituous liquor license or the issuance of a new spirituous liquor license if both of the following apply:

All of the controlling persons of the licensee and the new business entity are identical.
There is no change in control or beneficial ownership.

I. If subsection H of this section applies, the licensee's history of violations of this title is the history of the new business entity.Â The director may prescribe a form and shall require the applicant to provide the necessary information to ensure compliance with this subsection and subsections F and G of this section.

J. Notwithstanding subsection B of this section, the holder of a retail license in this state having off-sale privileges, except a bar, beer and wine bar or restaurant licensee, may take orders by telephone, mail, fax or catalog, through the internet or by other means for the sale and delivery of spirituous liquor off of the licensed premises to a person in this state in connection with the sale of spirituous liquor. Notwithstanding the definition of "sell" prescribed in section 4-101, the placement of an order and payment pursuant to this section is not a sale until delivery has been made.Â At the time that the order is placed, the licensee shall inform the purchaser that state law requires a purchaser of spirituous liquor to be at least twenty-one years of age and that the person accepting delivery of the spirituous liquor is required to comply with this state's age identification requirements as prescribed in section 4-241, subsections A and K. The licensee may maintain a delivery service and may contract with one or more independent contractors, that may also contract with one or more independent contractors, or may contract with a common carrier for delivery of spirituous liquor if the spirituous liquor is loaded for delivery at the premises of the retail licensee in this state and delivered in this state.Â Except if the person delivering the order has personally retrieved and bagged or otherwise packaged the container of spirituous liquor for delivery and the licensee records, or requires to be recorded electronically, the identification information for each delivery, all containers of spirituous liquor delivered pursuant to this subsection shall be conspicuously labeled with the words "contains alcohol, signature of person who is twenty-one years of age or older is required for delivery". The licensee is responsible for any violation of this title or any rule adopted pursuant to this title that is committed in connection with any sale or delivery of spirituous liquor. Delivery must be made by an employee of the licensee or other authorized person as provided by this section who is at least twenty-one years of age to a customer who is at least twenty-one years of age and who displays an identification at the time of delivery that complies with section 4-241, subsection K. The retail licensee shall collect payment for the full price of the spirituous liquor from the purchaser before the product leaves the licensed premises. The director shall adopt rules that set operational limits for the delivery of spirituous liquors by the holder of a retail license having off-sale privileges. With respect to the delivery of spirituous liquor, for any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's employee or other authorized person, the mitigation provision of section 4-210, subsection G applies, with the exception of the training requirement. For the purposes of this subsection and notwithstanding the definition of "sell" prescribed in section 4-101, section 4-241, subsections A and K apply only at the time of delivery. For the purposes of compliance with this subsection, an independent contractor, a subcontractor of an independent contractor, the employee of an independent contractor or the employee of a subcontractor is deemed to be acting on behalf of the licensee when making a delivery of spirituous liquor for the licensee.

K. Except as provided in subsection J of this section, Arizona licensees may transport spirituous liquors for themselves in vehicles owned, leased or rented by the licensee.

L. Notwithstanding subsection B of this section, an off-sale retail licensee may provide consumer tasting of wines off of the licensed premises subject to all applicable provisions of section 4-206.01.

M. The director may adopt reasonable rules to protect the public interest and prevent abuse by licensees of the activities permitted such licensees by subsections J and L of this section.

N. Failure to pay any surcharge prescribed by subsection G of this section or failure to report the period of nonuse of a license shall be grounds for revocation of the license or grounds for any other sanction provided by this title. The director may consider extenuating circumstances if control of the license is acquired by another party in determining whether or not to impose any sanctions under this subsection.

O. If a licensed location has not been in use for three years, the location must requalify for a license pursuant to subsection A of this section and shall meet the same qualifications required for issuance of a new license except when the director deems that the nonuse of the location was due to circumstances beyond the licensee's control and an extension of time has been granted pursuant to subsection G of this section.

P. If the licensee's interest is forfeited pursuant to section 4-210, subsection L, the location shall requalify for a license pursuant to subsection A of this section and shall meet the same qualifications required for issuance of a new license except when a bona fide lienholder demonstrates mitigation pursuant to section 4-210, subsection K.

Q. The director may implement a procedure for the issuance of a license with a licensing period of two years.

R. For any sale of a farm winery or craft distiller or change in ownership of a farm winery or craft distiller directly or indirectly, the business, stock-in-trade and spirituous liquor may be transferred with the ownership, in compliance with the applicable requirements of this title.

S. Notwithstanding subsection B of this section, bar, beer and wine bar, liquor store, beer and wine store or restaurant licensees in this state may take orders by telephone, mail, fax or catalog, through the internet or by other means for the sale and delivery of spirituous liquor off the licensed premises as follows:

Bar licensees for beer, wine, distilled spirits and mixed cocktails.
Beer and wine bar licensees for beer and wine.
Liquor store licensees for beer, wine, distilled spirits and mixed cocktails.
Beer and wine store licensees for beer and wine.
Restaurant licensees for any of the following:

(a) Mixed cocktails, with the sale of menu food items for consumption on or off the licensed premises, if the restaurant holds a permit issued pursuant to section 4-203.07 and section 4-205.02, subsection K or a lease pursuant to section 4-203.06.

(b) Beer if the restaurant holds a permit issued pursuant to section 4-205.02, subsection H.

(c) Beer, wine and distilled spirits if the restaurant holds an off-sale privileges lease with a bar or liquor store pursuant to section 4-203.07.

(d) Beer and wine if the restaurant holds an off-sale privileges lease with a beer and wine bar pursuant to section 4-203.07.

T. Notwithstanding the definition of "sell" prescribed in section 4-101, placing an order and paying for that order pursuant to subsection S of this section is not a sale until delivery has been made.Â At the time that the order is placed, the licensee shall inform the purchaser that state law requires a purchaser of spirituous liquor to be at least twenty-one years of age and that the person accepting delivery of the spirituous liquor is required to comply with this state's age identification requirements as prescribed in section 4-241, subsections A and K.Â The licensee may maintain a delivery service and may contract with one or more alcohol delivery contractors registered pursuant to section 4-205.13 for delivery of spirituous liquor if the spirituous liquor is packaged and tamperproof sealed by the bar, beer and wine bar, liquor store, beer and wine store or restaurant licensee or the licensee's employee and is loaded for delivery at the premises of the restaurant, beer and wine bar, liquor store, beer and wine store or bar licensee in this state and delivered in this state on the same business day. A liquor store or beer and wine store licensee may contract with one or more independent contractors as provided in subsection J of this section for delivery of spirituous liquor if the spirituous liquor is loaded for delivery at the premises of the liquor store or beer and wine store licensee in this state and delivered in this state on the same business day.Â All containers of spirituous liquor delivered pursuant to subsection S of this section shall be tamperproof sealed and conspicuously labeled with the words "contains alcohol, signature of person who is twenty-one years of age or older is required for delivery". The licensee is responsible for any violation of this title or any rule adopted pursuant to this title that is committed in connection with any sale or delivery of spirituous liquor. Delivery must be made by an employee of the licensee or an employee or authorized independent contractor of a registered alcohol delivery contractor as provided by this section who is at least twenty-one years of age and delivery must be made to a customer who is at least twenty-one years of age and who displays an identification at the time of delivery that complies with section 4-241, subsection K. The restaurant, beer and wine bar, liquor store, beer and wine store or bar licensee shall collect payment for the full price of the spirituous liquor from the purchaser before the product leaves the licensed premises.Â The director shall adopt rules that set operational limits for the delivery of spirituous liquor pursuant to this subsection and subsection S of this section with respect to the delivery of spirituous liquor.Â For any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's employee or a registered alcohol delivery contractor, the mitigation provision of section 4-210, subsection G applies, with the exception of the training requirement. For the purposes of this subsection and notwithstanding the definition of "sell" prescribed in section 4-101, section 4-241, subsections A and K apply only at the time of delivery. An alcohol delivery contractor, a subcontractor of an alcohol delivery contractor, an employee of an alcohol delivery contractor or an employee of a subcontractor is deemed to be acting on behalf of the licensee when making a delivery of spirituous liquor for the licensee. For the purposes of this subsection, "business day" means between the hours of 6:00 a.m. of one day and 2:00 a.m. of the next day.

U. A licensee that has off-sale privileges and that delivers spirituous liquor as prescribed in this section shall complete a written record of each delivery at the time of delivery.Â The written record shall include all of the following:

The name of the licensee making the delivery.
The complete address of the licensee making the delivery.
The licensee's license number.
The date and time of the delivery.
The address where the delivery was made.
The type and brand of all spirituous liquor delivered.

V. A licensee that has off-sale privileges and that delivers spirituous liquor as prescribed in this section shall obtain the following information from the individual who accepts delivery:

The individual's name.
The individual's date of birth.
The individual's signature.Â The licensee making the delivery may use an electronic signature system to comply with the requirements of this paragraph.

A.R.S. § 4-00209

4-209 - Fees for license, application, issuance, renewal and transfer; late renewal penalty; seasonal operation; surcharges

4-209. Fees for license, application, issuance, renewal and transfer; late renewal penalty; seasonal operation; surcharges

A. A fee shall accompany an application for an original license or transfer of a license, or in case of renewal, shall be paid in advance.Â Every license expires annually, except that a license may be renewed for a two-year period pursuant to subsection M of this section if no compliance penalties have been issued to that location during the year before the renewal. A licensee who fails to renew the license on or before the due date shall pay a penalty of $150, which the licensee shall pay with the renewal fee. A license renewal that is deposited, properly addressed and postage prepaid in an official depository of the United States mail on or before the due date shall be deemed filed and received by the department on the date shown by the postmark or other official mark of the United States postal service stamped on the envelope.Â If the due date falls on a Saturday, Sunday or other legal holiday, the renewal shall be considered timely if it is received by the department on the next business day. The director may waive a late renewal penalty if good cause is shown by the licensee.Â A licensee who fails to renew the license on or before the due date may not sell, purchase or otherwise deal in spirituous liquor until the license is renewed. A license that is not renewed within sixty days after the due date is deemed terminated. The director may renew the terminated license if good cause is shown by the licensee. Except an application fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K and leases pursuant to sections 4-203.06 and 4-203.07, an application fee for an original license or the transfer of a license shall be $100, which shall be retained by this state.

B. Issuance fees for original licenses shall be:

For an in-state producer's license to manufacture or produce spirituous liquor in this state, $1,500.
Except as provided in paragraph 15 of this subsection, for an out-of-state producer's, exporter's, importer's or rectifier's license, $200.
For a microbrewery license, $300.
For a wholesaler's license to sell spirituous liquors, $1,500.
For a government license issued in the name of a state agency, state commission, state board, county, city, town, community college or state university or the national guard, $100.
For a bar license, which is an on-sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, $1,500.
For a beer and wine bar license, which is an on-sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, $1,500.
For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquors in individual portions or in the original containers for consumption on the boat, $1,500.
For a liquor store license, which is an off-sale retailer's license to sell all spirituous liquors, $1,500.
For a beer and wine store license, which is an off-sale retailer's license to sell beer and wine, $1,500.
For a hotel-motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, $1,500.
For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, $1,500. For a permit issued under section 4-205.02, subsection H allowing for the sale of beer for the consumption off the licensed premises pursuant to section 4-244, paragraph 32, subdivision (c), the director may charge a fee. For an application for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K, the director may charge a fee.Â The director may establish and charge fees for lease applications pursuant to sections 4-203.06 and 4-203.07.
For a farm winery license, $100. The director may charge a licensed farm winery a fee pursuant to section 4-205.04, subsection K.
For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on-sale, $1,000.
For an out-of-state winery that sells not more than two hundred forty gallons of wine in this state in a calendar year, $25.
The department may charge a fee for a craft distiller license.
The department may charge a fee for registering an alcohol delivery contractor pursuant to section 4-205.13.

C. The department may issue licenses with staggered renewal dates to distribute the renewal workload as uniformly as practicable throughout the twelve months of the calendar year.Â If a license is issued less than six months before the scheduled renewal date of the license, as provided by the department's staggered license renewal system, one-half of the annual license fee shall be charged.

D. The annual fees for licenses shall be:

For an in-state producer's license to manufacture or produce spirituous liquors in this state, $350.
Except as provided in paragraph 15 of this subsection, for an out-of-state producer's, exporter's, importer's or rectifier's license, $50.
For a microbrewery license, $300.
For a wholesaler's license, to sell spirituous liquors, $250.
For a government license issued to a county, city or town, community college or state university or the national guard, $100.
For a bar license, which is an on-sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, $150.
For a beer and wine bar license, which is an on-sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, $75.
For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquor in individual portions or in the original containers for consumption on the boat, $225.
For a liquor store license, which is an off-sale retailer's license to sell all spirituous liquors, $50.
For a beer and wine store license, which is an off-sale retailer's license to sell beer and wine, $50.
For a hotel-motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, $500.
For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, $500, and for a restaurant license that is allowed to continue operating as a restaurant pursuant to section 4-213, subsection E, an additional amount established by the director. The department shall transfer this amount to the state treasurer for deposit in the state general fund. The director may establish an annual fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K. The director may charge annual lease amounts pursuant to sections 4-203.06 and 4-203.07.
For a farm winery license, $100. The director may charge a licensed farm winery an annual fee pursuant to section 4-205.04, subsection K.
For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on-sale, $150.
For an out-of-state winery that sells not more than two hundred forty gallons of wine in this state in a calendar year, $25.
The director may charge a fee for the annual renewal of a craft distiller license.
The department may charge a fee for the annual registration renewal of a registered alcohol delivery contractor pursuant to section 4-205.13.

E. Where the business of an on-sale retail licensee is seasonal, not extending over periods of more than six months in any calendar year, the licensee may designate the periods of operation and a license may be granted for those periods only, on payment of one-half of the fee prescribed in subsection D of this section.

F. Transfer fees from person to person for licenses transferred pursuant to section 4-203, subsection C shall be $300.

G. Transfer fees from location to location, as provided for in section 4-203, shall be $100.

H. Assignment fees for a change of agent, as provided for in section 4-202, subsection A, an acquisition of control, as provided for in section 4-203, subsection F, or a restructuring, as provided for in section 4-203, subsection H, shall be $100, except that where a licensee holds multiple licenses and requests multiple, simultaneous changes, the change of agent, acquisition of control or restructuring fee for the first license shall be $100 and the fee for all remaining licenses shall be $50 each, except that the aggregate fees shall not exceed $1,000 for all change of agents, $1,000 for all acquisitions of control and $1,000 for all restructurings.

I. No fee shall be charged by the department for an assignment of a liquor license in probate or an assignment pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding that assigns ownership of a business that includes a spirituous liquor license to one of the parties in the proceeding. In the case of nontransferable licenses, no fee shall be charged by the department for the issuance of a license for a licensed business pursuant to a transfer of the business in probate or pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding that assigns ownership of the business to one of the parties in the proceeding.

J. The director shall assess a surcharge of $30 on all licenses prescribed in subsection D, paragraphs 6, 7 and 12 of this section.Â Monies from the surcharge shall be used by the department exclusively for the costs of an auditor and support staff to review compliance by applicants and licensees with the requirements of section 4-205.02, subsection E. The department shall assess the surcharge as part of the annual license renewal fee.

K. The director shall assess a surcharge of $35 on all licenses prescribed in this section. Monies from the surcharge shall be used by the department exclusively for the costs of an enforcement program to investigate licensees who have been the subject of multiple complaints to the department. The enforcement program shall respond to complaints against licensees by neighborhood associations, by neighborhood civic groups and from municipal and county governments. The department shall assess the surcharge as part of the annual license renewal fee.

L. The director shall assess a surcharge of $20 on all licenses prescribed in subsection D, paragraphs 11 and 12 of this section and $35 on all other licenses prescribed in this section. Monies from the surcharge and from surcharges imposed pursuant to subsection K of this section shall be used by the department exclusively for the costs of a neighborhood association interaction and liquor enforcement management unit. The unit shall respond to complaints from neighborhood associations, neighborhood civic groups and local governing authorities regarding liquor violations. The director shall report the unit's activities and the use of monies from the surcharge or surcharges imposed pursuant to subsection K of this section to the board at each board meeting or as the board may direct.

M. Licenses may be renewed every two years with payment of license fees that are twice the amount designated in subsection D of this section and other applicable fees.Â Licensees renewing every two years must comply with annual reporting requirements. The director may adopt reasonable rules to allow licensees to renew every two years.

N. The department shall use all monies received from application fees for permits issued pursuant to section 4-205.02, subsection K, leases pursuant to sections 4-203.06 and 4-203.07 and registrations pursuant to section 4-205.13 for administrative costs associated with the permit, registration or lease and enforcement of this chapter.

A.R.S. § 4-00244

4-244 - Unlawful acts; definition

4-244. Unlawful acts; definition

It is unlawful:

For a person to buy for resale, sell or deal in spirituous liquors in this state without first having procured a license duly issued by the board, except that the director may issue a temporary permit of any series pursuant to section 4-205.05 to a trustee in bankruptcy to acquire and dispose of the spirituous liquor of a debtor.
For a person to sell or deal in alcohol for beverage purposes without first complying with this title.
For a distiller, vintner, brewer or wholesaler knowingly to sell, dispose of or give spirituous liquor to any person other than a licensee except in sampling wares as may be necessary in the ordinary course of business, except in donating spirituous liquor to a nonprofit organization that has obtained a special event license for the purpose of charitable fundraising activities or except in donating spirituous liquor with a cost to the distiller, brewer or wholesaler of up to $500 in a calendar year to an organization that is exempt from federal income taxes under section 501(c) (3), (4), (6) or (7) of the internal revenue code and not licensed under this title.
For a distiller, vintner or brewer to require a wholesaler to offer or grant a discount to a retailer, unless the discount has also been offered and granted to the wholesaler by the distiller, vintner or brewer.
For a distiller, vintner or brewer to use a vehicle for trucking or transporting spirituous liquors unless there is affixed to both sides of the vehicle a sign showing the name and address of the licensee and the type and number of the person's license in letters not less than three and one-half inches in height.
For a person to take or solicit orders for spirituous liquors unless the person is a salesman or solicitor of a licensed wholesaler, a salesman or solicitor of a distiller, brewer, vintner, importer or broker or a registered retail agent.
For any retail licensee to purchase spirituous liquors from any person other than a solicitor or salesman of a wholesaler licensed in this state.
For a retailer to acquire an interest in property owned, occupied or used by a wholesaler in the wholesaler's business, or in a license with respect to the premises of the wholesaler.
Except as provided in paragraphs 10 and 11 of this section, for a licensee or other person to sell, furnish, dispose of or give, or cause to be sold, furnished, disposed of or given, to a person under the legal drinking age or for a person under the legal drinking age to buy, receive, have in the person's possession or consume spirituous liquor. This paragraph does not prohibit the employment by an off-sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least eighteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.
For a licensee to employ a person under eighteen years of age to manufacture, sell or dispose of spirituous liquors. This paragraph does not prohibit the employment by an off-sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least eighteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.
For an on-sale retailer to employ a person under eighteen years of age in any capacity connected with the handling of spirituous liquors.Â This paragraph does not prohibit the employment by an on-sale retailer of a person under eighteen years of age who cleans up the tables on the premises for reuse, removes dirty dishes, keeps a ready supply of needed items and helps clean up the premises.
For a licensee, when engaged in waiting on or serving customers, to consume spirituous liquor or for a licensee or on-duty employee to be on or about the licensed premises while in an intoxicated or disorderly condition.
For an employee of a retail licensee, during that employee's working hours or in connection with such employment, to give to or purchase for any other person, accept a gift of, purchase for the employee or consume spirituous liquor, except that:

(a) An employee of a licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may give spirituous liquor to or purchase spirituous liquor for any other person.

(b) An employee of an on-sale retail licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may taste samples of beer or wine of not more than four ounces per day or distilled spirits of not more than two ounces per day provided by an employee of a wholesaler or distributor who is present at the time of the sampling.

(c) An employee of an on-sale retail licensee, under the supervision of a manager as part of the employee's training and education, while not engaged in waiting on or serving customers may taste samples of distilled spirits of not more than two ounces per educational session or beer or wine of not more than four ounces per educational session, and provided that a licensee does not have more than two educational sessions in any thirty-day period.

(d) An unpaid volunteer who is a bona fide member of a club and who is not engaged in waiting on or serving spirituous liquor to customers may purchase for himself and consume spirituous liquor while participating in a scheduled event at the club. An unpaid participant in a food competition may purchase for himself and consume spirituous liquor while participating in the food competition.

(e) An unpaid volunteer of a special event licensee under section 4-203.02 may purchase and consume spirituous liquor while not engaged in waiting on or serving spirituous liquor to customers at the special event. This subdivision does not apply to an unpaid volunteer whose responsibilities include verification of a person's legal drinking age, security or the operation of any vehicle or heavy machinery.

(f) A representative of a producer or wholesaler participating at a special event under section 4-203.02 may consume small amounts of the products of the producer or wholesaler on the premises of the special event for the purpose of quality control.

For a licensee or other person to serve, sell or furnish spirituous liquor to a disorderly or obviously intoxicated person, or for a licensee or employee of the licensee to allow a disorderly or obviously intoxicated person to come into or remain on or about the premises, except that a licensee or an employee of the licensee may allow an obviously intoxicated person to remain on the premises for not more than thirty minutes after the state of obvious intoxication is known or should be known to the licensee for a nonintoxicated person to transport the obviously intoxicated person from the premises. For the purposes of this section, "obviously intoxicated" means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would have been obvious to a reasonable person.
For an on-sale or off-sale retailer or an employee of such retailer or an alcohol delivery contractor to sell, dispose of, deliver or give spirituous liquor to a person between the hours of 2:00 a.m. and 6:00 a.m., except that:

(a) A retailer with off-sale privileges may receive and process orders, accept payment or package, load or otherwise prepare spirituous liquor for delivery at any time, if the actual deliveries to customers are made between the hours of 6:00 a.m. and 2:00 a.m., at which time section 4-241, subsections A and K apply.

(b) The governor, in consultation with the governor's office of highway safety and the public safety community in this state, may issue an executive order that extends the closing time until 3:00 a.m. for spirituous liquor sales in connection with a professional or collegiate national sporting championship event held in this state.

For a licensee or employee to knowingly allow any person on or about the licensed premises to give or furnish any spirituous liquor to any person under twenty-one years of age or knowingly allow any person under twenty-one years of age to have in the person's possession spirituous liquor on the licensed premises.
For an on-sale retailer or an employee of such retailer to allow a person to consume or possess spirituous liquors on the premises between the hours of 2:30 a.m. and 6:00 a.m., except that if the governor extends the closing time for a day for spirituous liquor sales pursuant to paragraph 15 of this section it is unlawful for an on-sale retailer or an employee of such retailer on that day to allow a person to consume or possess spirituous liquor on the premises between the hours of 3:30 a.m. and 6:00 a.m.
For an on-sale retailer to allow an employee or for an employee to solicit or encourage others, directly or indirectly, to buy the employee drinks or anything of value in the licensed premises during the employee's working hours. An on-sale retailer shall not serve employees or allow a patron of the establishment to give spirituous liquor to, purchase liquor for or drink liquor with any employee during the employee's working hours.
For an off-sale retailer or employee to sell spirituous liquor except in the original unbroken container, to allow spirituous liquor to be consumed on the premises or to knowingly allow spirituous liquor to be consumed on adjacent property under the licensee's exclusive control.
For a person to consume spirituous liquor in a public place, thoroughfare or gathering. The license of a licensee allowing a violation of this paragraph on the premises shall be subject to revocation. This paragraph does not apply to the sale of spirituous liquors on the premises of and by an on-sale retailer. This paragraph also does not apply to a person consuming beer or wine from a broken package in a public recreation area or on private property with permission of the owner or lessor or on the walkways surrounding such private property or to a person consuming beer or wine from a broken package in a public recreation area as part of a special event or festival that is conducted under a license secured pursuant to section 4-203.02 or 4-203.03.
For a person to possess or to transport spirituous liquor that is manufactured in a distillery, winery, brewery or rectifying plant contrary to the laws of the United States and this state. Any property used in transporting such spirituous liquor shall be forfeited to the state and shall be seized and disposed of as provided in section 4-221.
For an on-sale retailer or employee to allow a person under the legal drinking age to remain in an area on the licensed premises during those hours in which its primary use is the sale, dispensing or consumption of alcoholic beverages after the licensee, or the licensee's employees, know or should have known that the person is under the legal drinking age. An on-sale retailer may designate an area of the licensed premises as an area in which spirituous liquor will not be sold or consumed for the purpose of allowing underage persons on the premises if the designated area is separated by a physical barrier and at no time will underage persons have access to the area in which spirituous liquor is sold or consumed. A licensee or an employee of a licensee may require a person who intends to enter a licensed premises or a portion of a licensed premises where persons under the legal drinking age are prohibited under this section to exhibit an instrument of identification that is acceptable under section 4-241 as a condition of entry or may use a biometric identity verification device to determine the person's age as a condition of entry. The director, or a municipality, may adopt rules to regulate the presence of underage persons on licensed premises provided the rules adopted by a municipality are more stringent than those adopted by the director. The rules adopted by the municipality shall be adopted by local ordinance and shall not interfere with the licensee's ability to comply with this paragraph. This paragraph does not apply:

(a) If the person under the legal drinking age is accompanied by a spouse, parent, grandparent or legal guardian of legal drinking age or is an on-duty employee of the licensee.

(b) If the owner, lessee or occupant of the premises is a club as defined in section 4-101, paragraph 8, subdivision (a) and the person under the legal drinking age is any of the following:

(i) An active duty military service member.

(ii) A veteran.

(iii) A member of the United States army national guard or the United States air national guard.

(iv) A member of the United States military reserve forces.

For an on-sale retailer or employee to conduct drinking contests, to sell or deliver to a person an unlimited number of spirituous liquor beverages during any set period of time for a fixed price, to deliver more than fifty ounces of beer, one liter of wine or four ounces of distilled spirits in any spirituous liquor drink to one person at one time for that person's consumption or to advertise any practice prohibited by this paragraph. This paragraph does not prohibit an on-sale retailer or employee from selling and delivering an opened, original container of distilled spirits if:

(a) Service or pouring of the spirituous liquor is provided by an employee of the on-sale retailer. A licensee shall not be charged for a violation of this paragraph if a customer, without the knowledge of the retailer, removes or tampers with a locking device on a bottle delivered to the customer for bottle service and the customer pours the customer's own drink from the bottle, if when the licensee becomes aware of the removal or tampering of the locking device the licensee immediately installs a functioning locking device on the bottle or removes the bottle and lock from bottle service.

(b) The employee of the on-sale retailer monitors consumption to ensure compliance with this paragraph. Locking devices may be used, but are not required.

For a licensee or employee to knowingly allow the unlawful possession, use, sale or offer for sale of narcotics, dangerous drugs or marijuana on the premises. For the purposes of this paragraph, "dangerous drug" has the same meaning prescribed in section 13-3401.
For a licensee or employee to knowingly allow prostitution or the solicitation of prostitution on the premises.
For a licensee or employee to knowingly allow unlawful gambling on the premises.
For a licensee or employee to knowingly allow trafficking or attempted trafficking in stolen property on the premises.
For a licensee or employee to fail or refuse to make the premises or records available for inspection and examination as provided in this title or to comply with a lawful subpoena issued under this title.
For any person other than a peace officer while on duty or off duty or a member of a sheriff's volunteer posse while on duty who has received firearms training that is approved by the Arizona peace officer standards and training board, a retired peace officer as defined in section 38-1113 or an honorably retired law enforcement officer who has been issued a certificate of firearms proficiency pursuant to section 13-3112, subsection T, the licensee or an employee of the licensee acting with the permission of the licensee to be in possession of a firearm while on the licensed premises of an on-sale retailer. This paragraph does not include a situation in which a person is on licensed premises for a limited time in order to seek emergency aid and such person does not buy, receive, consume or possess spirituous liquor.Â This paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in conjunction with a meeting, show, class or similar event.

(c) A person with a permit issued pursuant to section 13-3112 who carries a concealed handgun on the licensed premises of any on-sale retailer that has not posted a notice pursuant to section 4-229.

For a licensee or employee to knowingly allow a person in possession of a firearm other than a peace officer while on duty or off duty or a member of a sheriff's volunteer posse while on duty who has received firearms training that is approved by the Arizona peace officer standards and training board, a retired peace officer as defined in section 38-1113 or an honorably retired law enforcement officer who has been issued a certificate of firearms proficiency pursuant to section 13-3112, subsection T, the licensee or an employee of the licensee acting with the permission of the licensee to remain on the licensed premises or to serve, sell or furnish spirituous liquor to a person in possession of a firearm while on the licensed premises of an on-sale retailer. It is a defense to action under this paragraph if the licensee or employee requested assistance of a peace officer to remove such person. This paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in conjunction with a meeting, show, class or similar event.

(c) A person with a permit issued pursuant to section 13-3112 who carries a concealed handgun on the licensed premises of any on-sale retailer that has not posted a notice pursuant to section 4-229.

For any person in possession of a firearm while on the licensed premises of an on-sale retailer to consume spirituous liquor. This paragraph does not prohibit the consumption of small amounts of spirituous liquor by an undercover peace officer on assignment to investigate the licensed establishment.
For a licensee or employee to knowingly allow spirituous liquor to be removed from the licensed premises, except in the original unbroken package. This paragraph does not apply to any of the following:

(a) A person who removes a bottle of wine that has been partially consumed in conjunction with a purchased meal from licensed premises if a cork is inserted flush with the top of the bottle or the bottle is otherwise securely closed.

(b) A person who is in licensed premises that have noncontiguous portions that are separated by a public or private walkway or driveway and who takes spirituous liquor from one portion of the licensed premises across the public or private walkway or driveway directly to the other portion of the licensed premises.

(c) A licensee of a bar, beer and wine bar, liquor store, beer and wine store, microbrewery or restaurant that has a permit pursuant to section 4-205.02, subsection H that dispenses beer only in a clean container composed of a material approved by a national sanitation organization with a maximum capacity that does not exceed one gallon and not for consumption on the premises if:

(i) The licensee or the licensee's employee fills the container at the tap at the time of sale.

(ii) The container is sealed and displays a government warning label.

(d) A bar or liquor store licensee that prepares a mixed cocktail or a restaurant licensee that leases the privilege to sell mixed cocktails for consumption off the licensed premises pursuant to section 4-203.06 or holds a permit pursuant to section 4-203.07 and section 4-205.02, subsection K and that prepares a mixed cocktail and transfers it to a clean container composed of a material approved by a national sanitation organization with a maximum capacity that does not exceed thirty-two ounces and not for consumption on the premises if all of the following apply:

(i) The licensee or licensee's employee fills the container with the mixed cocktail on the licensed premises of the bar, liquor store or restaurant.

(ii) The container is tamperproof sealed by the licensee or the licensee's employee and displays a government warning label.

(iii) The container clearly displays the bar's, liquor store's or restaurant's logo or name.

(iv) For a restaurant licensee licensed pursuant to section 4-205.02, the sale of mixed cocktails for consumption off the licensed premises is accompanied by the sale of menu food items for consumption on or off the licensed premises.

For a person who is obviously intoxicated to buy or attempt to buy spirituous liquor from a licensee or employee of a licensee or to consume spirituous liquor on licensed premises.
For a person who is under twenty-one years of age to drive or be in physical control of a motor vehicle while there is any spirituous liquor in the person's body.
For a person who is under twenty-one years of age to operate or be in physical control of a motorized watercraft that is underway while there is any spirituous liquor in the person's body. For the purposes of this paragraph, "underway" has the same meaning prescribed in section 5-301.
For a licensee, manager, employee or controlling person to purposely induce a voter, by means of alcohol, to vote or abstain from voting for or against a particular candidate or issue on an election day.
For a licensee to fail to report an occurrence of an act of violence to either the department or a law enforcement agency.
For a licensee to use a vending machine for the purpose of dispensing spirituous liquor.
For a licensee to offer for sale a wine carrying a label including a reference to Arizona or any Arizona city, town or geographic location unless at least seventy-five percent by volume of the grapes used in making the wine were grown in Arizona.
For a retailer to knowingly allow a customer to bring spirituous liquor onto the licensed premises, except that an on-sale retailer may allow a wine and food club to bring wine onto the premises for consumption by the club's members and guests of the club's members in conjunction with meals purchased at a meeting of the club that is conducted on the premises and that at least seven members attend. An on-sale retailer that allows wine and food clubs to bring wine onto its premises under this paragraph shall comply with all applicable provisions of this title and any rules adopted pursuant to this title to the same extent as if the on-sale retailer had sold the wine to the members of the club and their guests. For the purposes of this paragraph, "wine and food club" means an association that has more than twenty bona fide members paying at least $6 per year in dues and that has been in existence for at least one year.
For a person who is under twenty-one years of age to have in the person's body any spirituous liquor. In a prosecution for a violation of this paragraph:

(a) Pursuant to section 4-249, it is a defense that the spirituous liquor was consumed in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise and in a manner not dangerous to public health or safety.

(b) Pursuant to section 4-226, it is a defense that the spirituous liquor was consumed for a bona fide medicinal purpose and in a manner not dangerous to public health or safety.

For an employee of a licensee to accept any gratuity, compensation, remuneration or consideration of any kind to either:

(a) Allow a person who is under twenty-one years of age to enter any portion of the premises where that person is prohibited from entering pursuant to paragraph 22 of this section.

(b) Sell, furnish, dispose of or give spirituous liquor to a person who is under twenty-one years of age.

For a person to purchase, offer for sale or use any device, machine or process that mixes spirituous liquor with pure oxygen or another gas to produce a vaporized product for the purpose of consumption by inhalation or to allow patrons to use any item for the consumption of vaporized spirituous liquor.
For a retail licensee or an employee of a retail licensee to sell spirituous liquor to a person if the retail licensee or employee knows the person intends to resell the spirituous liquor.
Except as authorized by paragraph 32, subdivision (c) of this section, for a person to reuse a bottle or other container authorized for use by the laws of the United States or any agency of the United States for the packaging of distilled spirits or for a person to increase the original contents or a portion of the original contents remaining in a liquor bottle or other authorized container by adding any substance.
For a direct shipment licensee, a farm winery licensee or an employee of those licensees to sell, dispose of, deliver or give spirituous liquor to an individual purchaser between the hours of 2:00 a.m. and 6:00 a.m., except that a direct shipment licensee or a farm winery licensee may receive and process orders, accept payment, package, load or otherwise prepare wine for delivery at any time without complying with section 4-241, subsections A and K, if the actual deliveries to individual purchasers are made between the hours of 6:00 a.m. and 2:00 a.m. and in accordance with section 4-203.04 for direct shipment licensees and section 4-205.04 for farm winery licensees.
For a supplier to coerce or attempt to coerce a wholesaler to accept delivery of beer or any other commodity that has not been ordered by the wholesaler or for which the order was canceled. A supplier may impose reasonable inventory requirements on a wholesaler if the requirements are made in good faith and are generally applied to other similarly situated wholesalers that have an agreement with the supplier.

A.R.S. § 5-00406

5-406 - Persons allowed to conduct games; premises; equipment; expenses; compensation

5-406. Persons allowed to conduct games; premises; equipment; expenses; compensation

A. A person shall not hold, operate or conduct any game of bingo under any license issued pursuant to this article unless the person has submitted affidavits as required in section 5-404 and has received prior written approval from the licensing authority. Persons seeking to replace a manager, proceeds coordinator, supervisor or assistant or to serve as an additional manager, supervisor or assistant shall submit the appropriate affidavit to the licensing authority as required in section 5-404.

B. Except as provided in section 5-413, only contractors, members and new members of a licensee or an applicant may participate or apply to participate in conducting any bingo game held by the licensee.

C. Except for a class A licensee, a person shall not hold, operate, conduct or assist in conducting any game or games of bingo under any license if the person or the person's spouse has a proprietary, equitable or credit interest, or is an officer, director, agent or employee of an individual or company that has a proprietary, equitable or credit interest, in the licensee.

D. Bookkeepers or accountants need not be members of the organization.

E. An item of expense shall not be incurred or paid in connection with holding, operating or conducting any game of bingo held, operated or conducted pursuant to any license issued under this article, except bona fide expenses in a reasonable amount for purposes described in section 5-407, subsection G. A game of bingo shall not be conducted with any equipment except equipment owned solely by the licensee or jointly by not more than six licensees. No portion of the ownership of such equipment may be held by any person or organization not licensed pursuant to this chapter. A game of bingo shall not be conducted with rented equipment.Â This subsection does not apply to technological aids for bingo games that function only as electronic substitutes for bingo cards or a contractor's personnel who are needed to operate technological aids prescribed in subsection X of this section.

F. An applicant or a licensee shall not enter into any purchase agreement other than a bona fide purchase agreement. The seller may repurchase equipment only on default of the buyer and then only at a price equal to or greater than ninety percent of any money paid for equipment from buyer to seller. The seller may repurchase a building only on default of the buyer at a fair market value per licensee.

G. A licensee shall not conduct or operate more than five occasions of bingo during any calendar week. Not more than twelve hours of bingo shall be conducted in any building or on any premises during any calendar day.

H. The entire net proceeds of any game shall be devoted to a lawful use or uses. In addition to other unlawful uses, the following are not considered lawful uses under this subsection:

Compensation and expenses of directors, officers and management personnel.
Fees or commissions of consultants.
Compensation paid for legal services incurred by a licensee unsuccessfully defending against charges of violations of this article.
Donations to other than national, state or local nonprofit parent organizations in excess of five percent of the net proceeds except with the permission of the licensing authority.
Donations or any payment from the lessor to the lessee.

I. The premises where any game of bingo is being held, operated or conducted, where it is intended that any game of bingo shall be held, operated or conducted or where it is intended that any equipment shall be used shall at all times be open to inspection by the licensing authority, its agents and employees and peace officers of any political subdivision of the state.

J. When any merchandise prize is awarded in a game of bingo, its value shall be its current retail price. A merchandise prize shall not be redeemable or convertible into cash directly or indirectly.

K. Equipment, prizes and supplies for games of bingo shall not be purchased or sold at prices in excess of one hundred fifteen percent of the average price paid by other licensees as reported in the reports submitted to the licensing authority during the prior six-month period by licensees having the same class of license. A licensee shall not enter into any contract or purchase agreement whereby it agrees to limit its source of supplies.

L. An alcoholic beverage shall not be offered or given as a prize in any such game.

M. The net profits derived from the holding of games of bingo must be devoted within one year after the date such profits were earned to the lawful purposes of the organization allowed to conduct such games.Â Any organization desiring to hold the net profits of games of bingo for a period longer than one year after the date such profits were earned must apply to the licensing authority for special permission and on good cause shown the authority may grant the request.

N. Any licensee that does not report during any one-year period the amount of its net profits, if any, shall be required to show cause before the licensing authority why its license to conduct games of bingo should not be revoked.

O. The licensing authority shall require a licensee that does not conduct bingo games during any one-year period to show cause why its license to conduct games of bingo should not be cancelled.

P. Except as otherwise provided by this section, a prize greater in amount or value than $1,000 shall not be offered or given in any single game of bingo conducted under any such license, and total prizes shall not exceed an amount or value greater than $3,000 for any occasion. Door prizes, discounts or other inducements with a value exceeding $250 per occasion shall not be offered or given away.

Q. Except for a class A licensee, on application to the licensing authority by the licensee the licensing authority may authorize one special bonus game to be played at weekly consecutive occasions with a quarterly prize limit of $12,000. A weekly consecutive occasion is an occasion played on the same day of each week during the quarter. The special bonus game may be played at each weekly consecutive occasion subject to the rules adopted by the licensing authority. The special bonus game is not subject to the prize limits prescribed by subsection P of this section.

R. The equipment used in playing bingo and the method of play shall be such that each card shall have an equal opportunity to be a winner.Â The objects or balls to be drawn shall be essentially the same as to size, shape, weight, balance and all other characteristics that may influence their selection. All objects or balls shall be present in the receptacle before each game is begun. All numbers announced shall be plainly and clearly audible or visible to all the players present. Where more than one room is used for any one game, the receptacle, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be present in the room where the greatest number of players is present and all numbers announced shall be plainly audible or visible to the players in that room and also audible or visible to the players in the other room or rooms. The cards or sheets of the players shall be part of a deck, group or series of cards, no two of which shall be alike and which shall not be so prepared or arranged as to prefer any card. A licensee may provide braille cards for legally blind persons or allow legally blind persons to supply their own braille cards. A legally blind person supplying the person's own cards shall pay a fee to the licensee equal to the fee that would be charged if the legally blind person obtained the cards from the licensee.Â The bingo game activity shall be conducted and recorded in a manner as prescribed by the licensing authority to verify the gross receipts from each occasion.

S. The receptacle, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be visible to all the players at all times except where more than one room is used for any one game and subsection R of this section applies.

T. The particular arrangement of numbers required to be covered in order to win the game and the amount of the prize shall be clearly and audibly or visibly described and announced to the players immediately before each game is begun.

U. Any players shall be entitled to call for a verification of all numbers drawn at the time a winner is determined and for a verification of the objects or balls remaining in the receptacle and not yet drawn.Â The verification shall be made in the immediate presence of the supervisor and in full view of any player requesting the verification.

V. A person who is not physically present on the premises where the game is actually conducted shall not be allowed to participate as a player in the game.

W. A person who holds, operates or conducts, or assists in holding, operating or conducting, a game of bingo shall not play at any occasion at which such person works unless the game of bingo is conducted pursuant to a class A license.

X. The operator of a bingo game shall offer assistance to players with disabilities, subject to the following:

The operator of a bingo game may offer players technological aids for bingo games that function only as electronic substitutes for bingo cards and shall reserve at least two of these technological aids for use by players with disabilities. If no requests are made for the use of these technological aids within fifteen minutes after the scheduled start of a game of bingo, these reserved technological aids may be made available to any other player.
If the operator of a bingo game, or any other person that is involved in the conduct of a bingo game, charges players a fee for the use of technological aids for bingo games that function only as electronic substitutes for bingo cards or requires players to comply with a minimum purchase requirement for the use of these technological aids, players with disabilities may not be required to pay that fee or to comply with that minimum purchase requirement. This paragraph does not prohibit the operator of a bingo game or any other person that is involved in the conduct of a bingo game from requiring a player with a disability to comply with a minimum purchase requirement that is imposed on all players.
The operator of a bingo game that offers technological aids for bingo games that function only as electronic substitutes for bingo cards shall allow players with disabilities to claim prizes by presenting a printout or other evidence of a winning card.
The operator of a bingo game shall allow players to use a form of visual or audio signal to notify the operator of a winning pattern or bingo, which may include a flag, paddle, light, horn, bell or whistle or any other mechanical or electronic means.
If a player's disability restricts the player's ability to mark cards, use technological aids for bingo games that function only as electronic substitutes for bingo cards or announce bingo, the operator of a bingo game shall allow another person to assist the player with a disability in the bingo game.
A person with a disability who is employed by a bingo operator may use technological aids for bingo games that function only as electronic substitutes for bingo cards to properly carry out the person's job functions as those functions apply to the conduct of bingo games.

A.R.S. § 5-00602

5-602 - Gaming certification and enforcement; powers; duties; deputy director

5-602. Gaming certification and enforcement; powers; duties; deputy director

A. The department of gaming shall certify, as provided in tribal-state compacts, prospective gaming employees, facility support employees, tribal gaming office employees, financiers, management contractors, providers of gaming services and manufacturers and distributors of gaming devices to ensure that unsuitable individuals or companies are not involved in Indian gaming permitted under the tribal-state compacts.Â In carrying out the duties prescribed in this section, the department shall seek to promote the public welfare and public safety and shall seek to prevent corrupt influences from infiltrating Indian gaming.

B. Certification pursuant to this chapter is a privilege and not a right.

C. The department of gaming shall execute the duties of this state under the tribal-state compacts in a manner that is consistent with this state's desire to have extensive, thorough and fair regulation of Indian gaming permitted under the tribal-state compacts.

D. The department of gaming shall establish a certification and enforcement unit charged with the investigative duties relevant to tribal-state compacts, including applications for certification, investigations and enforcement, and such other duties as the director of the department of gaming prescribes.

E. To determine the suitability of prospective applicants for any tribal gaming license or state certification, each applicant shall furnish a full set of fingerprints and such fingerprints shall be submitted to the department of public safety for a criminal records check. Each applicant's fingerprints shall also be submitted by the department of public safety to the federal bureau of investigation for a federal criminal records check. The department of gaming is authorized to receive criminal records information from the department of public safety and from the federal bureau of investigation for the purpose of evaluating the fitness of applicants for any tribal gaming license, state certification or renewal.

F. Hearings shall be conducted pursuant to title 41, chapter 6, article 10.Â Except as provided in section 41-1092.08, subsection H, any party who is aggrieved by a final order or decision of the director of the department of gaming may seek judicial review pursuant to title 12, chapter 7, article 6.

G. The director of the department of gaming may issue subpoenas for the attendance of witnesses and the production of books, records and documents necessary for the enforcement of this article and the tribal-state compacts.Â These subpoenas shall be served and enforced in a manner consistent with title 41, chapter 6, article 10.

H. The director of the department of gaming may establish the position of deputy director of the department of gaming.Â The deputy director of the department of gaming position is exempt from title 41, chapter 4, articles 5 and 6.Â Persons holding the position of deputy director of the department of gaming are eligible to receive compensation pursuant to section 38-611.

I. The director of the department of gaming may enter into a contract or agreement with any public agency for any joint and cooperative action as provided in title 11, chapter 7, article 3.

J. The department of gaming may investigate violations of section 13-3306 that occur on non-Indian lands in this state and may cooperate with appropriate law enforcement authorities and prosecutorial agencies in the investigation and prosecution of these violations.

A.R.S. § 5-00807

5-807 - Constructing and operating multipurpose facility

5-807. Constructing and operating multipurpose facility

A. The authority shall construct, finance, furnish, maintain, improve, operate, market and promote the use of a multipurpose facility and do all things necessary or convenient to accomplish those purposes.Â One or more site hosts shall provide the land, infrastructure and parking facilities associated with the multipurpose facility. The authority shall own the multipurpose facility, subject only to liens and other security interests of record.Â The authority may own or lease the land on which the multipurpose facility is located.

B. The executive director shall:

Recommend to the board for its approval a contractor and architect, unless the architect will be employed directly by the contractor.
Work with the users, contractor and architect to prepare a design for the multipurpose facility and submit the design to the board for its approval.
Prepare the construction budget and schedule for the multipurpose facility and submit them to the board for its approval.
Prepare the annual operating budget for the multipurpose facility and submit it to the board for its approval.
Negotiate use agreements with parties that will use the multipurpose facility on a regular basis, including parties that will make a contribution toward the construction of the facility, and submit the agreements to the board for its final action. Any such agreement that grants naming or other advertising rights must include a provision requiring the multipurpose facility name and other advertising to comply with community decency standards.
Negotiate agreements with the contractor and architect, unless the architect will be employed directly by the contractor, and submit the agreements to the board for its final action.
Review construction change order requests and submit them to the board with recommendations for final action.
Arrange for capital and operating financing, as needed, and submit the transactions to the board for its final action.
Analyze and recommend to the board potential sites for the multipurpose facility proposed at any time before September 13, 2002 by a site host.
Negotiate agreements with site hosts, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 if a site host is a public agency, as defined in section 11-951, concerning the land, infrastructure and parking to be provided by the site host and submit the agreements to the board for its final action.Â All agreements must:

(a) Provide that the site host shall indemnify and hold harmless the authority and this state from any liability to the extent resulting from the negligent or intentional acts or omissions of the site host, its representatives and agents or employees resulting from any access ways provided by the site host and reasonably used by the public for ingress and egress to the land, infrastructure and parking facilities provided by the site host for use in connection with the multipurpose facility.

(b) Require any site host to maintain insurance or an adequate self-insurance plan for any liability of the site host, with a waiver of sovereign immunity if necessary.

In consultation with the users of the multipurpose facility, negotiate a contract with a management firm to operate, promote and market the multipurpose facility and submit the contract to the board for its final action.
In consultation with the users of the multipurpose facility, negotiate contracts with concessionaires and other providers for food, beverage and other services at the multipurpose facility and submit the contracts to the board for its final action.
Take other actions that are necessary to ensure that the multipurpose facility is constructed according to the schedule and budget approved by the board.

C. Title 34 applies to the authority, except that regardless of the funding source for design and construction of facilities and structures and notwithstanding title 41, chapter 23, the authority may establish alternative systems and procedures, including the use of the design-build method of construction and the use of qualifications-based selection of contractors with experience in stadium design or construction, by either direct selection or by public competition, to expedite the design and construction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement.Â For purposes of this subsection:

"Design-build" means a process of entering into and managing a contract between the authority and another party in which the other party agrees to both design and build any structure, facility or other items specified in the contract.
"Qualifications-based selection" means a process of entering into and managing a contract between the authority and another party in which the other party is selected by the authority on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the authority is authorized to construct or lease.

D. The plans and specifications for the multipurpose facility are subject to review and approval by the board.Â The board shall inspect and approve construction of the facility, if it conforms to the plans and specifications and applicable engineering standards.Â Throughout the life of the multipurpose facility, the board is responsible and shall monitor and take action as necessary to ensure the appropriate maintenance and operation of the facility.

E. To assure that a site host has the financial capability to perform its obligations under any agreements with the authority, before entering into an agreement with any site host, the authority shall either:

1. Cause a review of the financial books and records of the site host by an independent certified public accountant selected by the authority who shall prepare for the authority, and attest to, a report setting forth the results of that review.

2. Provide in the agreement with the site host another method for assuring the payment of the obligations of the site host. The alternative methods for assuring payment may include:

(a) Deposits in a construction trust account in an amount equal to the site host's estimated obligations to the authority.

(b) Posting a bond in an amount equal to the site host's estimated obligations to the authority.

(c) Providing the authority with a letter of credit in an amount equal to the site host's estimated obligations to the authority.

(d) Other similar financial assurance.

F. The authority shall provide in any agreements between the authority and a site host that is an Indian tribe:

A waiver of sovereign immunity to allow the enforcement by the authority of the agreements entered into between the authority and the Indian tribe.
A consent to the jurisdiction of state and federal courts by the Indian tribe.
A waiver of the right to require the authority to exhaust tribal remedies before bringing an action in state or federal courts.
That state and federal law will govern the interpretation of any agreements entered into between the authority and the Indian tribe.
An agreement that the Indian tribe will levy, collect and pay to the authority a charge or other imposition equivalent to the taxes provided in section 5-840 for any hotel located within a development area to be defined by agreement between the authority and the Indian tribe around the multipurpose facility.

6. An agreement that the Indian tribe will provide for an annual disclosure of gross proceeds of sales or gross income as determined for purposes of a tax base under the transient lodging transaction privilege tax classification under section 42-5070 and contributions made to the authority equal to the taxes as provided by section 5-840.

A.R.S. § 5-00813

5-813 - Disadvantaged business enterprise participation goals; contractor employment requirements

5-813. Disadvantaged business enterprise participation goals; contractor employment requirements

A. Notwithstanding any other law, the authority shall:

Establish disadvantaged business enterprise participation goals for the design, engineering and construction of the multipurpose facility under section 5-807 based on the availability of ready, willing and able disadvantaged business enterprises compared to the general population of consultants, prime contractors and subcontractors, suppliers and service providers.
Establish procedures for meeting these goals, including compiling a registry of disadvantaged business enterprises that are certified by a local, county or state agency.
Require monthly reports by the project coordinator regarding compliance with the goals.
Monitor compliance with this section through intergovernmental agreements with a state or county disadvantaged business enterprise program monitor or a contract with an independent organization that is experienced in monitoring disadvantaged business enterprise programs.
Impose sanctions if, based on recommendations of the monitoring organization, the authority determines that a good faith effort was not made to comply with the established procedures.

B. The authority shall provide that any contract with respect to the design, engineering and construction of the multipurpose facility under section 5-807 shall require each prime contractor and major subcontractors to provide health insurance to the contractor's employees and dependents of the contractor's employees, except for those employees who work less than one hundred twenty days in a calendar year.

C. The executive director, the project coordinator and all persons who enter into contracts, agreements or understandings related to the construction and operation of the multipurpose facility shall comply with the procedures established pursuant to this section.

A.R.S. § 6-00327

6-327 - Applicable laws and rules; cooperative agreements; contracting exemption

6-327. Applicable laws and rules; cooperative agreements; contracting exemption

A. Any bank, savings and loan association, out-of-state financial institution or holding company doing business as such in this state is subject to the applicable laws of this state and all the rules adopted pursuant to such laws, including examination and supervision by the deputy director.

B. In the case of an acquisition to create a branch in this state, the acquisition is prohibited unless the home state of the out-of-state financial institution allows reciprocal acquisitions for the same purposes.

C. An out-of-state financial institution that acquires an in-state financial institution or an out-of-state financial institution that is the result of a merger with an in-state financial institution may do either of the following subject to applicable state and federal laws:

Continue to operate the in-state financial institution.
Convert any existing principal banking office or any or all branches in this state into a branch of the out-of-state financial institution.

D. An in-state branch of an out-of-state financial institution shall comply with the laws of the institution's home state, or shall comply with federal law in the case of a federally chartered institution.Â The laws of the institution's home state apply, except as follows:

The laws of this state apply if necessary to preserve the safety and sound operation of a branch in this state or to otherwise protect the citizens of this state.
Any laws of this state regarding community reinvestment, consumer protection, fair lending and intrastate branching apply to a branch in this state of an out-of-state financial institution to the same extent that those laws apply to an in-state financial institution.
An out-of-state financial institution that is authorized to operate a branch in this state may engage in activity only to the extent the activity is allowed for an in-state financial institution.

E. Subsection D of this section does not limit the jurisdiction or authority of the deputy director to examine, supervise and regulate an out-of-state financial institution that is operating or seeking to operate a branch in this state or to take any action or issue any order with respect to that branch.

F. An out-of-state bank that operates a branch in this state shall do both of the following:

Obtain a grant of authority to transact business in this state and comply with all other applicable filing requirements prescribed by title 10 to the same extent as any other entity transacting business in this state.
Provide written notice to the deputy director of the out-of-state bank's grant of authority to transact business in this state.

G. The deputy director may adopt rules, including the imposition of reasonable application and examination fees, to implement and administer this article.

H. The deputy director may do any of the following:

Examine, supervise and regulate a branch operated in this state by an out-of-state bank and take any action or issue any order with respect to that branch.
Examine, supervise and regulate a branch operated in another state by a bank and take any action or issue any order with respect to that branch.
Coordinate these activities with any other state or federal agency that shares jurisdiction over that financial institution.
Coordinate the examination, supervision and regulation of any in-state financial institution with the examination, supervision and regulation of a branch or affiliated financial institution that is operating in another state by doing any of the following:

(a) Contracting with an agency that shares jurisdiction over the financial institution to retain its examiners at a reasonable rate of compensation.

(b) Offering the services of the department's examiners at a reasonable rate of compensation to an agency that shares jurisdiction over the financial institution.

(c) Collecting fees on behalf of or receiving payment of fees through an agency that has jurisdiction over the financial institution.

Enter into cooperative agreements with federal and state regulatory authorities for the examination and supervision of any acquired or de novo entry bank, savings and loan association or holding company and may accept reports of examination and other records from those authorities instead of conducting an examination.

I. The department is exempt from title 41, chapter 23 in contracting for examiners pursuant to subsection H, paragraph 4, subdivision (a) of this section.

A.R.S. § 6-00903

6-903 - Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal

6-903. Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal

A. A person shall not act as a mortgage broker if the person is not licensed under this article. A person who brokers only commercial mortgage loans shall obtain either a mortgage broker license or a commercial mortgage broker license. A person who brokers residential mortgage loans shall obtain a mortgage broker license.

B. The deputy director shall not grant a mortgage broker's license or a commercial mortgage broker's license to a person, other than a natural person, that is not registered to do business in this state on the date of granting the license.

C. An applicant for an original mortgage broker's license shall:

Have not less than three years' experience as a mortgage broker or loan originator or equivalent lending experience in a related business during the five years immediately preceding the time of application.
Have satisfactorily completed a course of study approved by the deputy director during the three years immediately preceding the time of application.
Have passed a mortgage broker's test pursuant to section 6-908.

D. An applicant for an original commercial mortgage broker's license shall:

Have not less than three years' experience in the commercial mortgage broker business or equivalent lending experience in a related business during the five years immediately preceding the time of application.
Have made in the past or intend to make or negotiate or offer to make or negotiate commercial mortgage loans.
Provide the deputy director with the following:

(a) A balance sheet prepared within the immediately preceding six months and certified by the licensee.Â The deputy director may require a more recent balance sheet.

(b) If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.

E. Notwithstanding subsection D, paragraph 3 of this section, commercial mortgage broker licensees and commercial mortgage broker license applicants whose own resources are derived exclusively from correspondent contracts with institutional investors shall provide the deputy director with a current financial statement or that of its parent company prepared according to generally accepted accounting principles, including:

A balance sheet prepared within the immediately preceding six months and certified by the licensee.Â The deputy director may require a more recent balance sheet.
If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.
Notes to the financial statement if applicable.

F. A person shall apply for a license or for a renewal of a license in writing on the forms, in the manner and accompanied by the information prescribed by the deputy director. The deputy director may require additional information on the experience, background and competency of the applicant and any responsible individual designated by the applicant. If the applicant is a person other than a natural person, the deputy director may require information as to the competency of any officer, director, shareholder or other interested party of the association, corporation or group.

G. The nonrefundable application fee and annual renewal fee are as prescribed in section 6-126. The nonrefundable application fee shall accompany each application for an original license only. The deputy director shall deposit, pursuant to sections 35-146 and 35-147, the monies in the state general fund.

H. If a licensee is a person other than a natural person, the license issued to it entitles all officers, directors, members, partners, trustees and employees of the licensed corporation, partnership, association or trust to engage in the mortgage business if one officer, director, member, partner, employee or trustee of the person or an employee of an affiliated entity or the parent company of the licensee is designated in the license as the individual responsible for the person under this article. If a licensee is a natural person, the license entitles all employees of the licensee to engage in the mortgage business. If the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article. For the purposes of this subsection, an employee does not include an independent contractor.Â The responsible individual shall be a resident of this state unless the director grants an exemption pursuant to section 6-902.01, shall be in active management of the activities of the licensee governed by this article and shall meet the qualifications set forth in subsection C or D of this section for a licensee.

I. A licensee shall notify the deputy director that its responsible individual will cease to be in active management of the activities of the licensee within ten days after learning that fact. The licensee has ninety days after the notification is received by the deputy director within which to replace the responsible individual with a qualified replacement and to so notify the deputy director. If the license is not placed under active management of a qualified responsible individual and if notice is not given to the deputy director within the ninety-day period, the license of the licensee expires.

J. Every person licensed as a mortgage broker or a commercial mortgage broker shall deposit with the deputy director, before doing business as a mortgage broker or a commercial mortgage broker, a bond executed by the licensee as principal and a surety company authorized to do business in this state as surety. The bond shall be conditioned on the faithful compliance of the licensee, including the licensee's directors, officers, members, partners, trustees and employees, with this article. The bond is payable to any person injured by the wrongful act, default, fraud or misrepresentation of the licensee or the licensee's employees and to this state for the benefit of the person injured. Only one bond is required for any person, firm, association or corporation irrespective of the number of officers, directors, members, partners or trustees who are employed by or are members of such firm, association or corporation. A suit may not be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation period provided in section 12-543, paragraph 3. If an injured person commences an action for a judgment to collect from the bond, the injured person shall notify the deputy director of the action in writing at the time of the commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request.

K. The bond required by this section is $10,000 for licensees whose investors are limited solely to institutional investors and $15,000 for licensees whose investors include any noninstitutional investors.

L. For the purposes of subsection K of this section:

"Institutional investor" means a state or national bank, a state or federal savings and loan association, a state or federal savings bank, a state or federal credit union, a federal government agency or instrumentality, a quasi-federal government agency, a financial enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust or an insurance company.
"Investor" means any person who directly or indirectly provides to a mortgage broker funds that are, or are intended to be, used in making a loan and any person who purchases a loan or any interest in a loan from a mortgage broker or in a transaction that has been directly or indirectly arranged or negotiated by a mortgage broker.

M. Notwithstanding section 35-155, in lieu of the bond described in this section, an applicant for a license or a licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the same amount as the bond required under subsection J of this section. The deputy director may accept any of the following as an alternative to cash:

Certificates of deposits or investment certificates that are payable or assigned to the state treasurer, issued by banks or savings banks doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.
Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a savings and loan association doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.
Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a credit union doing business in this state and fully insured by the national credit union administration or any successor institution.

N. The deputy director shall deposit the cash or alternatives to cash received under this section with the state treasurer. The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post bond pursuant to this section. The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses. The fee shall not exceed $10 for each cash or alternatives to cash deposit and shall be paid by the applicant or licensee.Â The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.

O. In addition to such other terms and conditions as the deputy director prescribes by rule or order, the principal amount of the deposit shall be released only on written authorization of the deputy director or on the order of a court of competent jurisdiction. The principal amount of the deposit shall not be released before the expiration of three years from the first to occur of any of the following:

The date of substitution of a bond for a cash alternative.
The surrender of the license.
The revocation of the license.
The expiration of the license.

P. A licensee or an employee of the licensee shall not advertise for or solicit mortgage business in any manner without using the license name, or other assumed name or trade name that is submitted to the department pursuant to section 6-117, and the license number. If a license is issued in the name of a natural person, the advertising or solicitation may not imply the license is in the name of another person or entity. For the purposes of this subsection, advertise does not include business cards, radio and television advertising directed at national or regional markets and promotional items except if those items contain rates or terms on which a mortgage loan may be obtained.

Q. A licensee shall not employ any person unless the licensee:

Conducts a reasonable investigation of the background, honesty, truthfulness, integrity and competency of the employee before hiring.
Keeps a record of the investigation for not less than two years after termination.

R. A license is not transferable or assignable and control of a licensee may not be acquired through a stock purchase or other device without the prior written consent of the deputy director. Written consent shall not be given if the deputy director finds that any of the grounds for denial, revocation or suspension of a license as set forth in section 6-905 are applicable to the acquiring person. For the purposes of this subsection, "control" means the power to vote more than twenty percent of outstanding voting shares of a licensed corporation, partnership, association or trust.

S. The licensee is liable for any damage caused by any of the licensee's employees while acting as an employee of the licensee.

T. A licensee shall comply with the requirements of section 6-114 relating to balloon payments.

U. The examination and course of study requirements of this section shall be waived by the deputy director for any person applying for a license who, within the six months immediately before submitting the application, has been a licensee or a responsible person pursuant to this chapter.

V. If the applicant for renewal of a mortgage broker license is a natural person, the applicant shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application. If the applicant is other than a natural person, the designated responsible individual shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application.Â An applicant for renewal of a commercial mortgage broker license is not subject to the continuing education requirements prescribed by this article.

W. A licensee who employs a loan originator shall comply with section 6-991.03.

A.R.S. § 6-00908

6-908 - Testing committee; testing of applicants; approval by deputy director; definition

6-908. Testing committee; testing of applicants; approval by deputy director; definition

A. The deputy director shall establish a testing committee to create, periodically update and establish standards for passing a test for mortgage brokers. The committee shall consist of five members appointed by the deputy director once every two years. Four of the members shall be licensees appointed from nominations submitted by licensees and one of the members shall be an employee of the department. Licensees who serve as members of the committee shall serve without expense to this state. The test is subject to the approval of the deputy director.

B. Each applicant for an original license, before issuance of the license, shall personally take and pass the written test given under the supervision of the department. The test must reasonably examine the applicant's knowledge of:

The obligations between principal and agent, the applicable canons of business ethics, the provisions of this article and the rules adopted under this article.
The arithmetical computations common to mortgage brokerage.
The principles of real estate lending.
The general purposes and legal effect of mortgages, deeds of trust and security agreements.

C. The department shall administer the test to applicants for licenses not less than once every six months. The deputy director may contract for the testing of applicants. The department or the department's contractor shall reasonably prescribe the time, place and conduct of testing and collect a fee for administration of the test to be assessed to all persons taking the test. The fee is $50 per testing. If the deputy director contracts for the testing of applicants, the testing fee owed pursuant to this section is payable by the applicant directly to the contractor. Â The deputy director may allow a contractor to charge a reasonable testing fee that is more than the fee prescribed in this subsection. An applicant may not take the test more than four times within a twelve-month period.

D. All tests shall be given, conducted and graded in a fair and impartial manner and without unfair discrimination between individuals tested. The committee shall inform the applicant of the result of the test within thirty days.

E. For testing purposes, the department shall prepare a handbook for mortgage brokers and distribute it to all applicants for a fee of not to exceed the actual cost of producing and distributing the handbook.

F. For the purposes of this section "applicant" means a person who has submitted a completed application in the form prescribed by law, accompanied by a letter of inquiry to a surety company authorized to do business in this state regarding the procurement of a bond pursuant to section 6-903, to be issued on completion of all requirements for the granting of a license.

A.R.S. § 6-00909

6-909 - Prohibited acts

6-909. Prohibited acts

A. Except for employment verifications, verifications of mortgages and loans, and deposit or account verifications, a person, in connection with or incidental to the making of any mortgage loan, shall not induce, require or permit any document to be signed by a party to the transaction if such document contains any blank spaces to be filled in after it has been signed, except that the party may specifically authorize the licensee or the escrow agent handling the transaction, in writing, to complete certain blank spaces.

B. A person is not entitled to receive compensation in connection with arranging for or negotiating a mortgage loan if such person is not licensed pursuant to this article. A mortgage broker shall not pay compensation to, contract with or employ as an independent contractor a person who is acting as a mortgage broker or mortgage banker but who is not licensed under this chapter.

C. A person engaged in the mortgage business shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner whatever, any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for a mortgage loan. The charges or rates of charge, if stated, shall be set forth in such manner as to prevent misunderstanding by prospective borrowers.

D. A mortgage broker shall not request or require a person seeking a mortgage loan on real property designed principally for the occupancy of from one to four families in an amount of two hundred thousand dollars or less to enter into an agreement that prohibits the person from seeking the loan from another source.

E. A mortgage broker, except in good faith, shall not delay or cause delay in the closing of a loan that results in increased costs to a borrower.

F. A mortgage broker shall not record or cause to be recorded any document that would give rise to liability under section 33-420.

G. A mortgage broker shall not, for compensation, either directly or indirectly make or negotiate or offer to make or negotiate a loan that is either:

Less than five thousand dollars.
Not secured by a mortgage or deed of trust or other lien interest in real property.

H. A person who is employed by a licensee to act in the capacity of a mortgage broker shall not be concurrently employed by any other licensee to act as a mortgage broker, except with the prior written approval of all the concurrently employing licensees.

I. A mortgage broker shall not collect compensation for rendering services as a real estate broker or real estate salesman unless both of the following apply:

The mortgage broker is licensed pursuant to title 32, chapter 20.
The mortgage broker has disclosed to the person from whom the compensation is collected that the mortgage broker is receiving compensation both for mortgage broker services, if applicable, and for real estate broker or real estate salesman services.

J. A licensee shall not accept any assignment of the borrower's wages or salary in connection with activities governed by this article.

K. A mortgage broker shall not receive or disburse monies in servicing or arranging a mortgage loan except as provided in section 6-906, subsection C.

L. A mortgage broker shall not make a false promise or misrepresentation or conceal an essential or material fact in the course of the mortgage broker business.

M. A mortgage broker shall not fail to truthfully account for the monies belonging to a party to a mortgage loan transaction or fail to disburse monies in accordance with his agreements.

N. A mortgage broker shall not engage in illegal or improper business practices.

O. A mortgage broker shall not record a mortgage or deed of trust if monies are not available for the immediate disbursal to the mortgagor unless, before that recording, the mortgage broker informs the mortgagor in writing of a definite date by which payment shall be made and obtains the mortgagor's written permission for the delay.

P. A mortgage broker shall not require a person seeking a loan secured by real property to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer.

Q. A mortgage broker must reasonably supervise the activities of a loan originator who is licensed pursuant to article 4 of this chapter and who is employed by the mortgage broker.

A.R.S. § 6-00943

6-943 - Licensing of mortgage bankers required; qualifications; application; bond; fees; renewal

6-943. Licensing of mortgage bankers required; qualifications; application; bond; fees; renewal

A. A person shall not act as a mortgage banker if the person is not licensed under this article.

B. The deputy director shall not grant a mortgage banker's license to a person, other than a natural person, who is not registered to do business in this state on the date of application for a license. The deputy director shall not issue a mortgage banker's license or a renewal of a license to an applicant unless the applicant meets all of the requirements prescribed in subsection C of this section. The deputy director shall determine whether the applicant meets the requirements based on the application and evidence presented at a hearing, if any, or any other evidence that the deputy director may have regarding qualifications of the applicant.

C. In order to qualify for a mortgage banker license or a renewal of a license, an applicant shall:

Have not fewer than three years' experience in the business of making mortgage banking loans or equivalent lending experience in a related business. If the applicant is a person other than a natural person, the responsible individual shall meet this requirement.
Have engaged or intend to engage in the business of making mortgage loans or mortgage banking loans.
Either:

(a) Be authorized to do business with any of the following:

(i) The federal housing administration.

(ii) The United States department of veterans affairs.

(iii) The federal national mortgage association.

(iv) The federal home loan mortgage corporation.

(b) Notwithstanding paragraph 5 of this subsection, at all times have and maintain a net worth of not less than $100,000.

Provide the deputy director with a current audited financial statement, or that of its parent company, that is prepared by an independent certified public accountant in accordance with generally accepted accounting principles and that includes:

(a) The certified public accountant's opinion as to the fairness of the presentation in conformity with generally accepted accounting principles.

(b) A balance sheet prepared within the previous six months and certified by the licensee.Â The deputy director may require a more recent balance sheet.

(c) A statement of operations and retained earnings and a statement of changes in financial position if the applicant has commenced operations.

(d) Notes to the financial statement, if applicable.

At all times have and maintain a net worth of not less than $100,000.

D. A person shall apply for a license or for a renewal of a license in writing on the forms, in the manner and accompanied by the information prescribed by the deputy director, including the requirements prescribed in subsection C of this section. The deputy director may require additional information on the experience, background and competency of the applicant and any responsible individual designated by the applicant. If the applicant is a person other than a natural person, the deputy director may require information as to the competency of any officer, director, shareholder, member, partner, trustee, employee or other interested party of the association, corporation or group.

E. The nonrefundable application fee and annual renewal fee are as prescribed in section 6-126. The nonrefundable application fee shall accompany each application for an original license only.

F. If a licensee is a person other than a natural person, the license issued to it entitles all officers, directors, members, partners, trustees and employees of the licensed corporation, partnership, association or trust to engage in the mortgage banking business if one officer, director, member, partner, employee or trustee of the person is designated in the license as the individual responsible for the person under this article. If a licensee is a natural person, the license entitles all employees of the licensee to engage in the mortgage banking business. If the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article. For the purposes of this article, an employee does not include an independent contractor. For the purposes of this article, the responsible individual shall be a resident of this state, shall be in active management of the activities of the licensee governed by this article and shall have not less than three years' experience in the business of making mortgage banking loans or equivalent experience in a related business.

G. A licensee shall notify the deputy director that its responsible individual will cease to be in active management of the licensee within ten days after learning that fact. Not more than ninety days after the deputy director receives the notice, the licensee shall place itself under the active management of a qualified responsible person and notify the deputy director. If the licensee is not placed under active management of a qualified responsible individual and if notice is not received by the deputy director within the ninety-day period, the license of the licensee expires.

H. Every person licensed as a mortgage banker shall deposit with the deputy director, before doing business as a mortgage banker, a bond executed by the licensee as principal and a surety company authorized to do business in this state as surety.Â The bond shall be conditioned on the faithful compliance of the licensee, including the licensee's directors, officers, members, partners, trustees and employees, with this article.Â Only one bond is required for a person, firm, association or corporation irrespective of the number of officers, directors, members, partners or trustees who are employed by or are members of the firm, association or corporation.Â The bond is payable to any person injured by the wrongful act, default, fraud or misrepresentation of the licensee and to this state for the benefit of any injured person.Â The coverage shall be maintained in the minimum amount prescribed in this subsection, computed on a base consisting of the total assets of the licensee plus the unpaid balance of loans it has contracted to service for others as of the end of the licensee's fiscal year.

BaseÂ Â Â Minimum Bond

Not over $1,000,000Â Â Â Â $25,000 for the first $500,000 plus

Â Â Â Â Â Â $5,000 for each $100,000 or fraction

Â Â Â Â Â Â thereof over $500,000

$1,000,001 to $10,000,000Â Â Â Â $50,000 plus $5,000 for each $1,800,000

Â Â Â Â Â Â or fraction thereof over $1,000,000

$10,000,001 to $100,000,000Â Â $75,000 plus $5,000 for each $18,000,000

Â Â Â Â Â Â or fraction thereof over $10,000,000

$100,000,001 and overÂ Â $100,000

A suit may not be commenced on the bond after the expiration of one year following the commission of the act on which the suit is based, except that claims for fraud or mistake are limited to the limitation period provided in section 12-543, paragraph 3.Â If any injured person commences an action for a judgment to collect on the bond, the injured person shall notify the deputy director of the action in writing at the time of the commencement of the action and shall provide copies of all documents relating to the action to the deputy director on request.

I. Notwithstanding subsection H of this section, the bond required is $25,000 for licensees whose investors are limited solely to institutional investors.

J. For the purposes of subsection I of this section:

"Institutional investor" means a state or national bank, a state or federal savings and loan association, a state or federal savings bank, a state or federal credit union, a federal government agency or instrumentality, a quasi-federal government agency, a financial enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust, or an insurance company.
"Investor" means any person who directly or indirectly provides to a mortgage banker funds that are, or are intended to be, used in the making of a loan, and any person who purchases a loan, or any interest therein, from a mortgage banker or in a transaction that has been directly or indirectly arranged or negotiated by a mortgage banker.

K. Notwithstanding section 35-155, in lieu of the bond described in this section, an applicant for a license or a licensee may deposit with the deputy director a deposit in the form of cash or alternatives to cash in the amount prescribed in subsection H or I of this section, as applicable.Â The deputy director may accept any of the following as an alternative to cash:

Certificates of deposit or investment certificates that are payable or assigned to the state treasurer, issued by banks or savings banks doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.
Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a savings and loan association doing business in this state and fully insured by the federal deposit insurance corporation or any successor institution.
Certificates of deposit, investment certificates or share accounts that are payable or assigned to the state treasurer, issued by a credit union doing business in this state and fully insured by the national credit union administration or any successor institution.

L. The deputy director shall deposit the cash or alternatives to cash received under this section with the state treasurer.Â The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post bond pursuant to this section.Â The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses.Â The fee shall not exceed $10 for each cash or alternatives to cash deposit and shall be paid by the applicant or licensee. The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.

M. In addition to such other terms and conditions as the deputy director prescribes by rule or order, the principal amount of the deposit shall be released only on written authorization of the deputy director or on the order of a court of competent jurisdiction.Â The principal amount of the deposit shall not be released before the expiration of three years from the first to occur of any of the following:

The date of substitution of a bond for a cash alternative.
The surrender of the license.
The revocation of the license.
The expiration of the license.

N. A licensee or an employee of the licensee shall not advertise for or solicit mortgage banking business in any manner without using the license name, or other assumed name or trade name that is submitted to the department pursuant to section 6-117, and the license number. If a license is issued in the name of a natural person, the advertising or solicitation may not imply that the license is in the name of another person or entity. For the purposes of this subsection, advertise does not include business cards, radio and television advertising directed at national or regional markets and promotional items except if those items contain rates or terms on which a mortgage loan or mortgage banking loan may be obtained.

O. A licensee shall not employ any person unless the licensee:

Conducts a reasonable investigation of the background, honesty, truthfulness, integrity and competency of the employee before hiring.
Keeps a record of the investigation for not less than two years after termination.

P. The licensee is liable for any damage caused by any of the licensee's employees while engaged in the business of making mortgage loans or mortgage banking loans.

Q. A licensee shall comply with the requirements of section 6-114 relating to balloon payments.

R. Notwithstanding subsection C, paragraph 4 of this section, licensees and applicants whose own resources are derived exclusively from correspondent contracts between mortgage bankers and banks, savings banks, trust companies, savings and loan associations, credit unions, profit sharing or pension trusts, consumer lenders or insurance companies shall provide the deputy director with a current financial statement, or that of its parent company, that is prepared in accordance with generally accepted accounting principles and that includes:

A balance sheet prepared within the previous six months and certified by the licensee.Â The deputy director may require a more recent balance sheet.
A statement of operations and retained earnings and a statement of changes in financial position if the applicant has commenced operations.
Notes to the financial statement if applicable.

S. In addition to the grounds specified in section 6-945, subsection A, failure of a licensee to operate the business of making mortgage loans or mortgage banking loans for a continuous period of twelve months or more shall constitute grounds for revocation of such a license.Â The deputy director, on good cause shown, may extend the time for operating such a business for a single fixed period, which shall not exceed twelve months.

T. If the applicant for renewal of a mortgage banker license is a natural person, the applicant shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application. If the applicant is other than a natural person, the designated responsible individual shall have satisfactorily completed twelve continuing education units by a continuing education provider approved by the deputy director before submitting the renewal application.

U. A licensee who employs a loan originator shall comply with section 6-991.03.

A.R.S. § 6-00947

6-947 - Prohibited acts

6-947. Prohibited acts

A. Except for employment verifications and deposit or account verifications, a person in connection with or incidental to the making of any mortgage banking loan or mortgage loan shall not induce, require or permit any document to be signed by a party to the transaction if the document contains any blank spaces to be filled in after it has been signed, except that the party may specifically authorize the licensee or the escrow agent handling the transaction, in writing, to complete blank spaces in certain documents.

B. A person is not entitled to receive compensation in connection with arranging for or negotiating a mortgage banking loan or mortgage loan if the person is not licensed pursuant to this article. A mortgage banker shall not pay compensation to, contract with or employ as an independent contractor a person who is acting as a mortgage broker or mortgage banker but who is not licensed under this chapter.

C. A mortgage banker may not commingle monies of borrowers or monies held for the benefit of borrowers with monies of the mortgage banker.

D. A person engaged in the mortgage banking business shall not knowingly advertise, display, distribute, broadcast or televise, or cause or permit to be advertised, displayed, distributed, broadcast or televised, in any manner whatever, any false, misleading or deceptive statement or representation with regard to the rates, terms or conditions for a mortgage banking loan or mortgage loan. The charges or rates of charge, if stated, shall be set forth in a clear and concise manner.

E. A mortgage banker shall not request or require a person seeking a mortgage banking loan or mortgage loan, on real property designed principally for the occupancy of from one to four families, in an amount of two hundred thousand dollars or less to enter into an agreement which prohibits the person from seeking the loan from another source.

F. A mortgage banker shall not, except in good faith, delay or cause delay in the closing of a loan that results in increased costs to a borrower.

G. A mortgage banker shall not record or cause to be recorded any document which would give rise to liability under section 33-420.

H. A person who is employed by a licensee to act in the capacity of a mortgage banker shall not be concurrently employed by any other licensee to act in the capacity of a mortgage banker, except with the prior written approval of all such concurrently employing licensees.

I. A mortgage banker shall not collect compensation for rendering services as a real estate broker or real estate salesman unless both of the following apply:

The mortgage banker is licensed pursuant to title 32, chapter 20.
The mortgage banker has disclosed to the person from whom the compensation is collected that the mortgage banker is receiving compensation both for mortgage banker services, if applicable, and for real estate broker or real estate salesman services.

J. A licensee shall not accept any assignment of the borrower's wages or salary in connection with activities governed by this article.

K. A mortgage banker shall not, for compensation, either directly or indirectly make or negotiate or offer to make or negotiate a loan of money in an amount of ten thousand dollars or less that is not secured by a mortgage or deed of trust or other lien interest in real property.

L. A mortgage banker shall not make a false promise or misrepresentation or conceal an essential or material fact in the course of the mortgage banker business.

M. A mortgage banker shall not fail to truthfully account for the monies belonging to a party to a mortgage loan or mortgage banking loan transaction or fail to disburse monies in accordance with his agreements.

N. A mortgage banker shall not record a mortgage or deed of trust if monies are not available for the immediate disbursal to the mortgagor unless, before that recording, the mortgage banker informs the mortgagor in writing of a definite date by which payment shall be made and obtains the mortgagor's written permission for the delay.

O. A mortgage banker shall not require a person seeking a loan secured by real property to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer.

P. A mortgage banker must reasonably supervise the activities of a loan originator who is licensed pursuant to article 4 of this chapter and who is employed by the mortgage banker.

A.R.S. § 6-00976

6-976 - Responsible individual; employees

6-976. Responsible individual; employees

A. A license entitles the licensee and all officers, directors, members, partners, trustees and employees of the licensee to engage in commercial mortgage banking if one officer, director, member, partner, employee or trustee of the person or an employee of an affiliated entity or the parent company of the licensee is designated in the license as the individual responsible for the licensee under this article. If the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article. For the purposes of this subsection, employee does not include an independent contractor.

B. The responsible individual shall be active in managing the activities of the licensee governed by this article and shall meet the qualifications prescribed by section 6-973, subsection D, paragraph 1 for a licensee. A licensee shall notify the deputy director that its responsible individual will cease to be active in managing the activities of the licensee within ten days after learning of that fact. Within ninety days after the notification is received by the deputy director, the licensee shall replace the responsible individual with a qualified replacement and notify the deputy director. If the license is not placed under active management of a qualified responsible individual and if notice is not given to the deputy director within the ninety-day period, the license of the licensee expires.

C. A licensee shall not employ any person unless the licensee:

Conducts a reasonable investigation of the background, honesty, truthfulness, integrity and competency of the employee before hiring.
Keeps a record of the investigation for at least two years after termination.

D. The licensee is liable for any damages caused by any employee while acting as an employee of the licensee.

A.R.S. § 8-00234

8-234 - Treatment, community restitution, restraining and protective orders

8-234. Treatment, community restitution, restraining and protective orders

A. A parent or legal guardian of a person who is under eighteen years of age shall exercise reasonable care, supervision, protection and control over the parent's or legal guardian's minor child.

B. On petition of a party or on the court's own motion, the court may make an order directing, restraining or otherwise controlling the conduct of a person if:

An order or disposition of a delinquent, dependent or incorrigible child has been or is about to be made in a proceeding under this chapter.
The court finds that such conduct is or may be detrimental or harmful to the child, will tend to defeat the execution of an order or disposition made or to be made or will assist in or is necessary for the rehabilitation of the child.
Notice of the petition or motion and the grounds for the petition or motion and an opportunity to be heard on the petition or motion have been given to the person against whom the order is directed.

C. The court may invoke its contempt powers pursuant to section 8-247 to enforce any treatment, counseling, education or other restraining or protective order that applies to:

The child, the parents or guardian of the child or any other party before the court who is the subject of an order to participate in a counseling, treatment or education program or any other restraining or protective order.
The legal custodians or agencies, including agency personnel, that are ordered to provide treatment or services to the child, the child's family or any party named in the dispositional order.

D. The court may not order a parent or guardian to pay the cost of any counseling, treatment or education program ordered pursuant to subsection F of this section.

E. If the court after notice and hearing finds that a person has failed to exercise reasonable care, supervision, protection and control of a minor pursuant to subsection A of this section or if the court holds a person in contempt for violating an order issued pursuant to this section, the court may immediately take one or more of the following actions:

Impose a fine of not more than $1,000, plus any applicable surcharges and assessments.
Impose a term of incarceration in jail for a period of not more than thirty days.
Order the parents or guardian of the child to perform community restitution with the child.

F. If the court finds that the best interests of the child would be served by participation in a diversion program, in lieu of taking any action pursuant to subsection C of this section, the court may order the parent or guardian of a child to participate in a diversion program, approved by the supreme court, that requires the parent or guardian to perform community restitution or to attend and successfully complete a program of counseling, treatment or education. If the terms and conditions of the diversion order are successfully completed, the court shall dismiss its finding against the parents. If the court finds that the terms and conditions of the diversion order were not successfully completed it may take one or more of the actions specified in subsection B of this section.

G. Before a hearing that may result in incarceration for a person who is alleged to have violated a court order under this section, the court shall advise the person that the person has the right to be represented by counsel and that the court may appoint counsel if the court finds that the person is indigent.

H. This section does not prevent a health insurer that is subject to title 20 or an Arizona health care cost containment system contractor from covering an expense that is related to the child's treatment or care.

A.R.S. § 8-00243

8-243 - Expenses of child services; parent liability prohibited

8-243. Expenses of child services; parent liability prohibited

A. The supreme court shall administer the activities, including providing the cost of services, for children who are referred to the juvenile court as incorrigible or delinquent and who are placed in foster care other than in a state institution or who require shelter care or treatment.Â If the juvenile court places a referred child in foster care or orders a referred child to participate in treatment or an education program or if a probation officer requires a child to comply with a program pursuant to section 8-321, subsection F, the juvenile court may not order the child or the child's parent or guardian to bear the charge or expense of the foster care, treatment, education program or program required pursuant to section 8-321, subsection F.Â

B. If the juvenile court awards or commits a child to the department of juvenile corrections or other state department or institution, the juvenile court may not order the child or the child's parent or guardian to bear the charge, expense and maintenance, including the medical, dental and mental health care of the child while the child is committed to the custody of the department of juvenile corrections or other public or private institution or agency, or private person or persons.

C. If the juvenile court awards or commits a child to a juvenile detention facility, the juvenile court may not order the child or the child's parent or guardian to bear the charge, expense and maintenance, including food, clothing, shelter and supervision of the child while the child is detained in a juvenile detention facility.

D. This section does not prevent a health insurer that is subject to title 20 or an Arizona health care cost containment system contractor from covering an expense that is related to the child's treatment or care.

A.R.S. § 8-00245

8-245 - Physical and mental care

8-245. Physical and mental care

A. When a child under the jurisdiction of the juvenile court appears to be in need of medical or surgical care, the juvenile court may order the parent, guardian or custodian to provide treatment for the child in a hospital or otherwise.Â If the parent, guardian or custodian fails to provide the care as ordered, the juvenile court may enter an order therefor, and the expense, when approved by the juvenile court, shall be a county charge. The court may not order a child or the parent or guardian of a child who is in residential placement as a term of probation, detention or incarceration to pay for treatment expenses.

B. A county with a population of more than one million persons shall pay claims approved by the county from a facility or provider for medical or surgical care to a child that is a county charge pursuant to subsection A of this section, unless otherwise provided by an intergovernmental agreement, as follows:

For inpatient and outpatient hospital services, the county shall reimburse at a level that does not exceed the reimbursement methodology established pursuant to section 36-2903.01, subsection G.
For health and medical services, the county shall reimburse at a level that does not exceed the capped fee-for-service schedule that is adopted by the Arizona health care cost containment system administration pursuant to title 36, chapter 29, article 1 and that is in effect at the time the services are delivered.

C. This section does not prevent a health insurer that is subject to title 20 or an Arizona health care cost containment system contractor from covering an expense related to the child's treatment or care.

A.R.S. § 8-00321

8-321 - Referrals; diversions; conditions; community based alternative programs

8-321. Referrals; diversions; conditions; community based alternative programs

A. Except as provided in subsection B of this section, before a petition is filed or an admission or adjudication hearing is held, the county attorney may divert the prosecution of a juvenile who is accused of committing a delinquent act or a child who is accused of committing an incorrigible act to a community based alternative program or to a diversion program administered by the juvenile court.

B. A juvenile is not eligible for diversion if any of the following applies:

The juvenile committed a dangerous offense as defined in section 13-105.
The juvenile is a chronic felony offender as defined in section 13-501.Â
The juvenile committed an offense that is listed in section 13-501.
The juvenile is alleged to have committed a violation of section 28-1381, 28-1382 or 28-1383.
The juvenile is alleged to have committed an offense involving the purchase, possession or consumption of spirituous liquor or a violation of title 13, chapter 34 and the juvenile has previously participated in a community based alternative program or a diversion program administered by the juvenile court at least two times within twenty-four months before the date of the commission of the alleged offense.

C. Except as provided in section 8-323, the county attorney has sole discretion to decide whether to divert or defer prosecution of a juvenile offender. The county attorney may designate the offenses that shall be retained by the juvenile court for diversion or that shall be referred directly to a community based alternative program that is authorized by the county attorney.

D. The county attorney or the juvenile court in cooperation with the county attorney may establish community based alternative programs.

E. Except for offenses that the county attorney designates as eligible for diversion or referral to a community based alternative program, on receipt of a referral alleging the commission of an offense, the juvenile probation officer shall submit the referral to the county attorney to determine if a petition should be filed.

F. If the county attorney diverts the prosecution of a juvenile to the juvenile court, the juvenile probation officer shall conduct a personal interview with the alleged juvenile offender. At least one of the juvenile's parents or guardians shall attend the interview. The probation officer may waive the requirement for the attendance of the parent or guardian for good cause. If the juvenile acknowledges responsibility for the delinquent or incorrigible act, the juvenile probation officer shall require that the juvenile comply with one or more of the following conditions:

Participation in unpaid community restitution work.
Participation in a counseling program that is approved by the court and that is designed to strengthen family relationships and to prevent repetitive juvenile delinquency.
Participation in an education program that is approved by the court and that has as its goal the prevention of further delinquent behavior.
Participation in an education program that is approved by the court and that is designed to deal with ancillary problems experienced by the juvenile, such as alcohol or drug abuse.
Participation in a nonresidential program of rehabilitation or supervision that is offered by the court or offered by a community youth serving agency and that is approved by the court.
At the juvenile's option, participation in a religious program that is approved by the court. This option may be substituted for one of the other conditions outlined in this subsection. The juvenile's participation in a religious program must be voluntary, and the purpose of the program may not include any effort to coerce the juvenile to adopt or change any religious affiliation or beliefs.
Payment of restitution to the victim of the delinquent act.
Payment of a monetary assessment that may be satisfied through community restitution. The court shall credit any community restitution performed at a rate that is equal to the minimum wage prescribed by section 23-363, subsections A and B, rounded up to the nearest dollar.

G. If the juvenile successfully complies with the conditions set forth by the probation officer, the county attorney shall not file a petition in juvenile court and the program's resolution shall not be used against the juvenile in any further proceeding and is not an adjudication of incorrigibility or delinquency. The resolution of the program is not a conviction of crime, does not impose any civil disabilities ordinarily resulting from a conviction and does not disqualify the juvenile in any civil service application or appointment.

H. In order to participate in a community based alternative program the juvenile who is referred to a program shall admit responsibility for the essential elements of the accusation and shall cooperate with the program in all of its proceedings.

I. All of the following apply to each community based alternative program that is established pursuant to this section:

The juvenile's participation is voluntary.
The victim's participation is voluntary.
The community based alternative program shall ensure that the victim, the juvenile's parent or guardian and any other persons who are directly affected by an offense have the right to participate.
The participants shall agree to the consequences imposed on the juvenile or the juvenile's parent or guardian.
The meetings and records shall be open to the public.

J. After holding a meeting the participants in the community based alternative program may agree on any legally reasonable consequences that the participants determine are necessary to fully and fairly resolve the matter except confinement or monetary sanctions or fines that exceed $250.

K. The participants shall determine consequences within thirty days after referral to the community based alternative program, and the juvenile shall complete the consequences within ninety days after the matter is referred to the community based alternative program.Â The county attorney or the juvenile probation officer may extend the time in which to complete the consequences for good cause. If the community based alternative program involves a school, the deadlines for determination and completion of consequences shall be thirty and ninety school days, respectively.

L. The community based alternative program, the juvenile, the juvenile's parent or guardian and the victim may sign a written contract in which the parties agree to the program's resolution of the matter and in which the juvenile's parent or guardian agrees to ensure that the juvenile complies with the contract.

M. If the juvenile successfully completes the consequences, the county attorney shall not file a petition in juvenile court and the program's resolution shall not be used against the juvenile in any further proceeding and is not an adjudication of incorrigibility or delinquency.Â The resolution of the program is not a conviction of crime, does not impose any civil disabilities ordinarily resulting from a conviction and does not disqualify the juvenile in any civil service application or appointment.

N. The county attorney or juvenile court may not assess or require the juvenile or the juvenile's parent or guardian to pay a fee or the cost for a community based alternative program or diversion program that is authorized by this section.

O. The supreme court shall annually establish an average cost per juvenile for providing diversion services in each county, based on the monies appropriated for diversion pursuant to section 8-322, excluding the cost of juvenile intake services provided by the juvenile court, and the number of juveniles diverted the previous year.Â On the county attorney's certification to the supreme court of the number of juveniles diverted to a county attorney community based alternative program each quarter, the annual average cost per juvenile for each juvenile diverted shall be reimbursed to the county attorney juvenile diversion fund established by section 11-537 out of monies appropriated to the supreme court for diversion programs.Â

P. If the juvenile does not acknowledge responsibility for the offense, or fails to comply with the consequences set by the community based alternative program, the case shall be submitted to the county attorney for review.Â The payment of a monetary assessment may not be used as a condition for the juvenile to comply with the consequences set by the community based alternative program.

Q. After reviewing a referral, if the county attorney declines prosecution, the county attorney may return the case to the juvenile probation department for further action as provided in subsection F of this section.

R. This section does not prevent a health insurer that is subject to title 20 or an Arizona health care cost containment system contractor from covering an expense that is related to the juvenile's treatment or care.

A.R.S. § 8-00322

8-322 - Juvenile probation services fund; program and contract requirements

8-322. Juvenile probation services fund; program and contract requirements

A. The juvenile probation services fund is established. The supreme court shall administer the fund. Monies in the juvenile probation services fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The supreme court shall allocate monies in the fund or appropriated to the superior court's juvenile probation services fund line based on its determination of the need for and probable effectiveness of each plan submitted pursuant to this article. The supreme court shall require that the presiding juvenile court judge submit in accordance with rules of the supreme court a plan for the expenditure of monies that are allocated to the juvenile court pursuant to this section. The supreme court may reject a plan or a modification of a plan that is submitted pursuant to this subsection.

C. Monies in the fund shall be used to fund programs, the participation in which a juvenile probation officer or community based alternative program administered by the juvenile court has required as a condition of diversion pursuant to section 8-321. Monies shall also be used to fund programs to reduce the number of repetitive juvenile offenders and to provide services for juveniles who are on probation, including treatment, testing, independent living programs and residential, foster and shelter care, and for children who are referred to the juvenile court for incorrigibility or delinquency offenses. Monies may be used to provide the cost of care for persons who are under twenty-one years of age and who were placed in an independent living program or in foster care before eighteen years of age, who voluntarily remain in care and who are currently enrolled in and regularly attending any high school or certificate of equivalency program. Pursuant to section 8-341, subsection I, monies may also be used to provide services for persons who are under twenty-one years of age and who voluntarily participate in treatment. Except pursuant to section 8-341, subsection I, the cost of care shall not be continued for a person who has received a high school diploma or certificate of equivalency. The supreme court shall approve these services.Â The juvenile court may develop and staff such programs, or the supreme court may enter into the purchase of service contracts with community youth serving agencies.

D. The administrative office of the courts may use monies appropriated to the fund for the purchase of detention facilities, to expand existing detention centers or to contract with private and public entities to expand or operate secure care facilities.

E. Monies in the fund may be used to obtain, operate and maintain a state-approved case management system that serves persons placed on probation or juveniles referred to the juvenile court.

F. All monies that are distributed or expended from the fund shall be used to supplement, not supplant, funding to the juvenile court by the county.

G. The supreme court shall contract for a periodic evaluation to determine if the provisions of this article reduce the number of repetitive juvenile offenders. The supreme court shall send a copy of the evaluation to the speaker of the house of representatives, the president of the senate and the governor.

H. A contract that is entered into between the supreme court or the county attorney and any contract provider to provide services pursuant to section 8-321 or this section to juveniles shall provide that, as a condition of employment, personnel who are employed by any contract provider, whether paid or not, and who are required or allowed to provide services directly to juveniles shall have valid fingerprint clearance cards issued pursuant to title 41, chapter 12, article 3.1 or shall apply for a fingerprint clearance card within seven working days of employment.

I. The contractor shall assume the costs of fingerprint checks and may charge these costs to its fingerprinted personnel.

J. A service contract or license with any contract provider that involves the employment of persons who have contact with juveniles shall provide that the contract or license may be canceled or terminated immediately if a person certifies pursuant to subsections M and N of this section that the person is awaiting trial on or has been convicted of any of the offenses listed in subsections M and N of this section in this state or of acts committed in another jurisdiction that would be offenses in this state or if the person does not possess or is denied issuance of a valid fingerprint clearance card.

K. A contract provider may avoid cancellation or termination of the contract or license under subsection J of this section if a person who does not possess or has been denied issuance of a valid fingerprint clearance card or who certifies pursuant to subsections M and N of this section that the person has been convicted of or is awaiting trial on any of the offenses listed in section 41-1758.03, subsection B is immediately prohibited from employment or service with the licensee or contract provider in any capacity requiring or allowing contact with juveniles.

L. A contract provider may avoid cancellation or termination of the contract or license under subsection J of this section if a person who does not possess or has been denied issuance of a valid fingerprint clearance card or who certifies pursuant to subsections M and N of this section that the person has been convicted of or is awaiting trial on any of the offenses listed in section 41-1758.03, subsection C is immediately prohibited from employment or service with the licensee or contract provider in any capacity requiring or allowing the person to provide direct services to juveniles unless the person is granted a good cause exception pursuant to section 41-619.55.

M. Personnel who are employed by any contract provider, whether paid or not, and who are required or allowed to provide services directly to juveniles shall certify on forms provided by the contracting agency and notarized whether they are awaiting trial on or have ever been convicted of any of the criminal offenses listed in section 41-1758.03, subsections B and C in this state or similar offenses in another state or jurisdiction.

N. Personnel who are employed by any contract provider, whether paid or not, and who are required or allowed to provide services directly to juveniles shall certify on forms provided by the contracting agency and notarized whether they have ever committed any act of sexual abuse of a child, including sexual exploitation and commercial sexual exploitation, or any act of child abuse.

O. Federally recognized Indian tribes or military bases may submit and the supreme court shall accept certifications that state that personnel who are employed or who will be employed during the contract term and who provide services directly to juveniles have not been convicted of, have not admitted committing or are not awaiting trial on any offense under subsection M of this section.

P. Adult clients of a contract provider who are receiving treatment services are exempt from the requirements of this section, unless they provide services directly to juveniles without supervision.

Q. Volunteers who provide services to juveniles under the direct visual supervision of the contractor's or licensee's employees are exempt from the fingerprinting requirements of this section.

R. The contracting agency shall notify the department of public safety if the contracting agency receives credible evidence that a person who possesses a valid fingerprint clearance card either:

Is arrested for or charged with an offense listed in section 41-1758.03, subsection B.
Falsified information on the form required by subsection M of this section.

A.R.S. § 8-00343

8-343 - Disposition of offenses involving driving or in actual physical control of a motor vehicle while under the influence of intoxicating liquor or drugs

8-343. Disposition of offenses involving driving or in actual physical control of a motor vehicle while under the influence of intoxicating liquor or drugs

A. A juvenile who is adjudicated delinquent for a violation of section 28-1381 shall be detained for a period of not less than ten consecutive days in a juvenile detention center as a condition of probation, except that the judge may suspend all ten days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.

B. A juvenile who within a period of eighty-four months is adjudicated delinquent for a violation of section 28-1381 and who has previously been adjudicated for a violation of section 28-1381, 28-1382 or 28-1383 or an act in another state, a court of the United States or a tribal court that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383 shall be detained for a period of not less than ninety days in a juvenile detention center as a condition of probation, except that the judge may suspend all but thirty consecutive days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.

C. A juvenile who is adjudicated delinquent for a violation of section 28-1382, subsection A, paragraph 1 shall be detained for a period of not less than thirty consecutive days in a juvenile detention center as a condition of probation, except that the judge may suspend all but ten consecutive days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.Â A juvenile who is adjudicated delinquent for a violation of section 28-1382, subsection A, paragraph 2 shall be detained for a period of not less than forty-five consecutive days in a juvenile detention center as a condition of probation, except that the judge may suspend all but fifteen consecutive days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.

D. If within a period of eighty-four months a juvenile is adjudicated delinquent for a violation of section 28-1382 and has previously been adjudicated for a violation of section 28-1381, 28-1382 or 28-1383 or an act in another state, a court of the United States or a tribal court that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383, the juvenile:

Shall be detained for a period of not less than one hundred twenty days in a juvenile detention center as a condition of probation if the juvenile is adjudicated delinquent for a violation of section 28-1382, subsection A, paragraph 1, except that the judge may suspend all but sixty consecutive days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.
Shall be detained for a period of not less than one hundred eighty days in a juvenile detention center as a condition of probation if the juvenile is adjudicated delinquent for a violation of section 28-1382, subsection A, paragraph 2, except that the judge may suspend all but ninety consecutive days of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.

E. A juvenile who is adjudicated delinquent for a violation of section 28-1383 shall be detained for a period of not less than four months in a juvenile detention center or the department of juvenile corrections as a condition of probation if the juvenile is adjudicated delinquent under either of the following:

Section 28-1383, subsection A, paragraph 1.
Section 28-1383, subsection A, paragraph 2 and within an eighty-four-month period has been adjudicated delinquent for two prior violations of section 28-1381, 28-1382 or 28-1383, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383.

F. A juvenile who is adjudicated delinquent under section 28-1383, subsection A, paragraph 2 and who within an eighty-four month period has been adjudicated delinquent for three or more prior violations of section 28-1381, 28-1382 or 28-1383, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28-1381, 28-1382 or 28-1383 shall be detained for a period of not less than eight months in a juvenile detention center or the department of juvenile corrections as a condition of probation.

G. A juvenile who is adjudicated delinquent under section 28-1383, subsection A, paragraph 3, subdivision (a) shall serve at least the minimum term of detention required pursuant to subsection A or B of this section.

H. A juvenile who is adjudicated delinquent under section 28-1383, subsection A, paragraph 3, subdivision (b) shall serve at least the minimum term of detention required pursuant to subsection C or D of this section.

I. Notwithstanding subsection E or F of this section, at the time of sentencing, the judge may suspend all but two months of the sentence if the juvenile completes alcohol or other drug screening pursuant to subsection L of this section.

J. If a juvenile is adjudicated delinquent for a violation of section 28-1381, 28-1382 or 28-1383, the court shall order the juvenile to pay not more than $250 plus any applicable surcharges and assessments to the public agency processing the violation or the court may order the juvenile to perform not more than twenty hours of community restitution under the supervision of the court.

K. The dates of the commission of the offense shall be the determining factor in applying the eighty-four month provision of subsection B, D, E or F of this section, irrespective of the sequence in which the offenses were committed. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

L. In addition to any other penalties prescribed by law, if a juvenile is adjudicated delinquent for a violation of section 28-1381, 28-1382 or 28-1383, the court shall order the juvenile to complete alcohol or other drug screening that is provided by a facility approved by the department of health services or a probation department. If the court determines that the juvenile requires further alcohol or other drug education or treatment, the juvenile may be required pursuant to court order to obtain education or treatment under the court's supervision from an approved facility. The court may review an education or treatment determination at the request of the state or the defendant or on the court's initiative. The court may not order the juvenile or the juvenile's parent or guardian to pay the costs of the screening, education or treatment.

M. The court may not order a juvenile or the parent or guardian of a juvenile who is sentenced to a term of detention to reimburse the county that is responsible for the costs of the juvenile's detention.

N. This section does not prevent a health insurer that is subject to title 20 or an Arizona health care cost containment system contractor from covering the expense of the juvenile's screening, education or treatment.

A.R.S. § 8-00463

8-463 - Department of child safety employees; employees of contractors; fingerprint requirement

8-463. Department of child safety employees; employees of contractors; fingerprint requirement

A. Each employee of the department who has contact with children or who is employed in an information technology position shall have a valid fingerprint clearance card issued pursuant to section 41-1758.07 or provide to the department documentation of the person's application for a fingerprint clearance card.Â The employee shall certify on forms that are provided by the department and that are notarized that the employee is not awaiting trial on or has never been convicted of or admitted in open court or pursuant to a plea agreement to committing any of the criminal offenses listed in section 41-1758.07, subsections B and C in this state or similar offenses in another state or jurisdiction.

B. The department may not disclose information obtained pursuant to this section except to members of the department's staff solely for employment purposes.

C. An employee of a contractor or subcontractor who is employed in an information technology position and who will have access to department information as part of the employee's job duties must meet the requirements of subsection A of this section. An employee of a contractor or subcontractor in an information technology position may not have access to department information until the employee meets the requirements of subsection A of this section. If such an employee fails to obtain a fingerprint clearance card, the employee shall immediately be denied access to any department information technology system.Â The contractor or subcontractor is responsible for the costs of obtaining the employee's fingerprint clearance card and may charge these costs to the fingerprinted employee.Â The department may allow all or part of the costs to obtain a fingerprint clearance card to be included as an allowable cost in a contract.

A.R.S. § 8-00467

8-467 - Child welfare licensing fees; fund; uses; trust; definition

8-467. Child welfare licensing fees; fund; uses; trust; definition

A. The department may establish and collect fees from noncontracting licensees for the purpose of licensing and supervising noncontracting licensees. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies collected under this subsection in the child welfare licensing fee fund.

B. The child welfare licensing fee fund is established consisting of all fees collected pursuant to subsection A of this section and monies appropriated by the legislature.Â The department shall administer the fund.Â Monies in the fund are both of the following:

Subject to legislative appropriation.
Exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from the investment shall be credited to the fund.

D. Fund monies shall be used to pay the costs incurred by the department for both of the following:

The issuance of licenses to noncontracting licensees.
The inspection, examination, suspension, denial, revocation or change of licenses of noncontracting licensees pursuant to sections 8-504 and 8-506.01.

E. Any fee that is authorized by law or rule and that is deposited in the fund is held in trust.Â The monies in the fund may be used only for the purposes prescribed by statute and shall not be appropriated or transferred by the legislature to fund the general operations of this state or to otherwise meet the obligations of the state general fund of this state.

F. For the purposes of this section, "noncontracting licensee" means a licensee that does not contract with this state, that contracts with the federal government, that receives only federal monies and that employs individuals who provide direct services to children.

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)