Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 7-102, Arizona Revised Statutes, is amended to read:
7-102. Qualification of sureties
A bond shall not be approved if executed by individual sureties unless the sureties appear upon on the tax roll of the county for an amount at least equal to the penalty of any other judicial bonds upon on which they may already be sureties. If a surety is married, the bond shall be signed by both husband and wife spouses.
Sec. 2. Section 8-103, Arizona Revised Statutes, is amended to read:
8-103. Who may adopt
A. Any adult resident of this state, whether married, unmarried or legally separated, is eligible to qualify to adopt children. A husband and wife A married couple may jointly adopt children.
B. Pursuant to rules adopted by the division, the division or adoption agency shall place a child in an adoptive home that best meets the safety, social, emotional, physical and mental health needs of the child. Other relevant factors for consideration, in no order of preference, shall include:
1. The marital status, and the length and stability of the marital relationship of the prospective adoptive parents.
2. Placement with the child's siblings pursuant to section 8‑862.
3. Established relationships between the child and the prospective adoptive family as described in section 8‑862, including placement with a grandparent or another member of the child's extended family including a person or foster parent who has a significant relationship with the child.
4. The prospective adoptive family's ability to meet the child's safety, social, emotional, physical and mental health needs and the ability to financially provide for the child.
5. The wishes of the child who is twelve years of age or older.
6. The wishes of the child's birth parents unless the rights of the parent have been terminated or the court has established a case plan of severance and adoption.
7. The availability of relatives, the child's current or former foster parents or other significant persons to provide support to the prospective adoptive family and child.
C. If all relevant factors are equal and the choice is between a married man and woman couple certified to adopt and a single adult certified to adopt, placement preference shall be with a married man and woman couple.
D. In each adoption proceeding, the court shall make findings on the record regarding the best interests of the child pursuant to law.
Sec. 3. Section 10-1623, Arizona Revised Statutes, is amended to read:
10-1623. Statement of bankruptcy or receivership; interrogatories before subsequent incorporation; violation; classification; definitions
A. On the filing of a petition for bankruptcy or the appointment of a receiver for any corporation, the corporation shall deliver a statement to the commission listing:
1. All officers, directors, trustees and major stockholders of the corporation within one year of filing the petition for bankruptcy or the appointment of a receiver. If a major stockholder is a corporation, the statement shall list the current president, the chairman of the board of directors and major stockholders of such corporate stockholder.
2. Whether any such person has been an officer, director, trustee or major stockholder of any other corporation within one year of the bankruptcy or receivership of the other corporation.
3. If the answer in paragraph 2 of this subsection is in the affirmative, for each such corporation the following information:
(a) Name and address.
(b) States in which it:
(i) Was incorporated.
(ii) Transacted business.
(c) Dates of operation.
B. The commission shall maintain a suitably indexed list of all such persons. The index is a public record of the commission for purposes of title 39.
C. On receipt for filing of articles of incorporation of a new corporation or application for authority to transact business by a foreign corporation, the commission shall determine whether any person proposed as an officer, director, trustee, incorporator or major stockholder of the new or foreign corporation has been involved two or more times in a corporate bankruptcy, receivership, revocation, administrative dissolution or judicial dissolution commenced by any state. If so, the commission may direct detailed interrogatories to the persons requiring any additional relevant information deemed necessary by the commission and at the same time shall provide public notice of the interrogatory procedure. Any person may request additional interrogatories or may provide additional information to the commission. The interrogatories shall be completely answered within thirty days after mailing. With respect to corporations incorporated or seeking authority to transact business, articles of incorporation or application for authority shall not be filed until all outstanding interrogatories have been answered to the satisfaction of the commission.
D. Any applicant for filing articles of incorporation or authority to transact business who is dissatisfied with a determination of the commission or any other proceeding under this section may demand and the commission or its designee shall convene a public hearing at the county seat of the county of the corporate headquarters of the proposed corporation. The commission shall give public notice of the hearing at least twenty days before the hearing by publication in a newspaper of general circulation in any county in which a relevant prior bankruptcy or receivership occurred.
E. The commission shall provide the attorney general with a copy of statements furnished pursuant to subsection A of this section and answers to interrogatories propounded pursuant to subsection C of this section on a quarterly updated basis.
F. Any person or corporation failing to comply with the requirements of this section is guilty of a class 1 misdemeanor. Any person making a false statement or giving false information pursuant to this section is guilty of a class 5 felony.
G. In For the purposes of this section:
1. "Controlling" includes the total shares of stock issued to a husband and wife married couple and their relatives to the first degree of consanguinity.
2. "Major stockholder" means a shareholder possessing or controlling twenty per cent percent of the issued and outstanding shares or twenty per cent percent of any proprietary, beneficial or membership interest in the corporation.
Sec. 4. Section 10-2058, Arizona Revised Statutes, is amended to read:
10-2058. Board of directors; compensation; term; quorum
A. The business of a cooperative shall be managed by a board of directors. Unless the bylaws provide otherwise, each of the directors shall be a member of the cooperative or of another cooperative that is a member. The bylaws shall prescribe the number of directors, their qualifications other than those prescribed in this article and the manner of holding meetings of the board of directors and of electing successors to directors who resign or die or who are otherwise incapable of acting. The bylaws may also provide for the removal of directors from office and for the election of their successors.
B. Unless the bylaws provide otherwise, the directors shall not receive salaries for services as directors and, except in emergencies, shall not be employed by the cooperative in any capacity involving compensation without the approval of the members. The bylaws may allow a payment of a fee and provide that expenses of attendance may be allowed to each director for attendance at each meeting of the board of directors.
C. The directors of a cooperative named in the articles of incorporation, consolidation, merger or conversion shall hold office until successors are elected and qualify. The bylaws shall prescribe the manner of electing directors and the number and terms of the directors, including whether the terms are staggered. If stated in the bylaws, at each annual meeting, or, in case of failure to hold the annual meeting as specified in the bylaws, at a special meeting called for that purpose, the members shall elect directors to hold office until the next annual meeting of the members, except as otherwise provided in this article. Each director shall hold office for the term for which the director is elected and until a successor is elected and qualifies. A director may resign at any time by delivering written notice to the board of directors, its presiding officer or the cooperative. A resignation is effective when the notice is delivered unless the notice specifies a later effective date or event.
D. A majority of the board of directors shall constitute a quorum.
E. If a husband and wife hold married couple holds a joint membership in a cooperative, either one spouse, but not both, may be elected a director.
F. The board of directors may take any action without a meeting if the action would be allowed at a meeting and if before the board takes the action all of the directors who are normally required to approve the action at a meeting provide prior consent by signing a written statement that explains and approves the action.
G. The board of directors may exercise all the powers of a cooperative not conferred upon on the members by this article, or its articles of incorporation or bylaws.
H. Any person who serves as a director or officer or who serves on a board or council in an advisory capacity to the cooperative or board of directors of a cooperative is immune from civil liability and is not subject to a suit directly or by way of contribution for any act or omission that results in damage or injury if that person was acting in good faith and within the scope of that person's official capacity and the damage or injury was not caused by the wilful conduct or gross negligence of that person. Nothing in this subsection limits or modifies in any manner the duties or liabilities of a director or person who serves in any advisory capacity to the cooperative or the cooperative members. For the purposes of this subsection, "official capacity" means any decision, act or event the cooperative undertakes in furtherance of the purposes for which the cooperative is organized or operating.
Sec. 5. Section 10-2060, Arizona Revised Statutes, is amended to read:
10-2060. Members in cooperative
Each incorporator of a cooperative shall be a member of the cooperative, but no other person may become a member unless the person agrees to use electric energy or other services furnished by the cooperative as the cooperative establishes in its bylaws. A husband and wife married couple may hold a joint membership in a cooperative. Membership in a cooperative is not transferable, except as provided in the bylaws. The bylaws may prescribe additional qualifications, limitations, classifications and rights concerning membership.
Sec. 6. Section 11-1134, Arizona Revised Statutes, is amended to read:
11-1134. Exemptions
A. The affidavit and fee required by this article do not apply to the following instruments:
1. A deed that represents the payment in full or forfeiture of a recorded contract for the sale of real property.
2. A lease or easement on real property, regardless of the length of the term.
3. A deed, patent or contract for the sale or transfer of real property in which an agency or representative of the United States, this state, a county, city or town of this state or any political subdivision of this state is the named grantor, and authorized seller, or purchaser.
4. A quitclaim deed to quiet title as described in section 12‑1103, subsection B or otherwise executed for no monetary consideration.
5. A conveyance of real property that is executed pursuant to a court order.
6. A deed to an unpatented mining claim.
7. A deed of gift.
B. The affidavit and fee required by this article do not apply to a transfer of title:
1. Solely in order to provide or release security for a debt or obligation, including a trustee's deed pursuant to power of sale under a deed of trust.
2. That confirms or corrects a deed that was previously recorded.
3. When the transfer of title has only nominal actual consideration for the transfer of residential property between:
(a) Husband and wife a married couple or ancestor of the husband and wife either spouse.
(b) Parent and child, including natural or adopted children and their descendants.
(c) Grandparent and grandchild.
(d) Natural or adopted siblings.
4. On a sale for delinquent taxes or assessments.
5. On partition.
6. Pursuant to a merger.
7. For no consideration or nominal consideration:
(a) By a subsidiary to its parent or from a parent to a subsidiary.
(b) Among commonly controlled entities.
(c) From a member to its limited liability company or from a limited liability company to a member.
(d) From a partner to its partnership.
(e) From a partnership to a partner.
(f) From a joint venturer to its joint venture.
(g) From a joint venture to a joint venturer.
(h) From a trust beneficiary to its trustee.
(i) From a trustee to its trust beneficiary.
(j) From any of the entities in subdivisions (a) through (i) of this paragraph to a single purpose entity in order to obtain financing.
8. From a person to a trustee or from a trustee to a trust beneficiary with only nominal actual consideration for the transfer.
9. To and from an intermediary for the purpose of creating a joint tenancy estate or some other form of ownership.
10. From a husband and wife married couple or one of them the spouses to both husband and wife spouses to create an estate in community property with right of survivorship.
11. From two or more persons to themselves to create an estate in joint tenancy with right of survivorship.
12. Pursuant to a beneficiary deed with only nominal actual consideration for the transfer.
13. From an owner to itself or a related entity for no or nominal consideration solely for the purpose of consolidating or splitting parcels.
14. Due to a legal name change.
C. Any instrument that describes a transaction that is exempt under this section shall note the exemption on the face of the instrument at the time of recording, indicating the specific exemption that is claimed.
Sec. 7. Section 12-612, Arizona Revised Statutes, is amended to read:
12-612. Parties plaintiff; recovery; distribution; disqualification
A. An action for wrongful death shall be brought by and in the name of the surviving husband or wife spouse, child, parent or guardian, or personal representative of the deceased person for and on behalf of the surviving husband or wife spouse, children or parents, or if none of these survive, on behalf of the decedent's estate.
B. Either parent may maintain the action for the death of a child, and the guardian may maintain the action for the death of the guardian's ward.
C. The amount recovered in an action for wrongful death shall be distributed to the parties provided for in subsection A of this section in proportion to their damages, and if recovery is on behalf of the decedent's estate the amount shall be an asset of the estate.
D. If any party listed in subsection A of this section is found guilty of or guilty except insane for, or pled guilty or no contest to, a violation of section 13‑3623 involving the death of the child decedent or a violation of section 13‑1103, 13‑1104 or 13‑1105 involving the death of the decedent, the party is deemed to have predeceased the decedent and is disqualified from recovering wrongful death benefits. This subsection applies to a person who is found guilty of or guilty except insane for, or pled guilty or no contest to, an offense committed in another jurisdiction that has the same elements of an offense listed in this subsection and that if committed in this state would be a violation of any of the offenses listed in this subsection.
E. For the purposes of subsection A of this section, "personal representative" includes any person to whom letters testamentary or of administration are granted by competent authority under the laws of this or any other state. The personal representative may maintain the action for wrongful death without the issuance of further letters or any other requirement or authorization of law.
Sec. 8. Section 12-2231, Arizona Revised Statutes, is amended to read:
12-2231. Spouses; antimarital fact
In a civil action, a husband spouse shall not be examined for or against his wife the other spouse without her the other spouse's consent, nor a wife for or against her husband without his consent, except as provided in section 12‑2232.
Sec. 9. Section 12-2232, Arizona Revised Statutes, is amended to read:
12-2232. Spouses; privileged communications; permissible examination
A. A husband or wife spouse, during the marriage or afterward, without the consent of the other spouse, shall not be examined as to any communications made by one to the other during the marriage, except:
1. In an action for divorce or a civil action by one against the other.
2. In a criminal action or proceeding as provided in the criminal code.
3. In an action for damages against another person for adultery committed by either husband or wife spouse.
B. In a hearing conducted pursuant to title 36, chapter 5, a husband or wife spouse, during the marriage or afterward, without the consent of the other spouse, may be examined as to any communications, physical acts or behaviors made by one to the other during the marriage that relate to the matters at issue in the hearing.
Sec. 10. Section 13-1408, Arizona Revised Statutes, is amended to read:
13-1408. Adultery; classification; punishment; limitation on prosecution
A. A married person who has sexual intercourse with another than his or her spouse, and an unmarried person who has sexual intercourse with a married person not his or her spouse, commits adultery and is guilty of a class 3 misdemeanor. When the act is committed between parties only one of whom is married, both shall be punished.
B. No a prosecution for adultery shall not be commenced except upon on the complaint of the husband or wife a spouse.
Sec. 11. Section 13-3609, Arizona Revised Statutes, is amended to read:
13-3609. Child bigamy; classification; definitions
A. A person commits child bigamy if the person knowingly does any of the following:
1. Is at least eighteen years of age, has a spouse and marries a child.
2. Is at least eighteen years of age and, either alone or in association with others, directs, causes or controls the marriage of a child to a person who already has a spouse.
3. Is at least eighteen years of age and, either alone or in association with others, directs, causes or controls the marriage of a child if the child already has a spouse.
4. Is at least eighteen years of age and marries a child if the child already has a spouse.
5. Transports or finances the transportation of a child to promote marriage between the child and a person who already has a spouse.
6. Transports or finances the transportation of a child who already has a spouse to promote marriage between the child and another person.
B. This section does not apply if a person who marries a child:
1. Has a spouse who has been absent for at least five successive years without being known to the person within that time to be living.
2. Has a former marriage that has been pronounced void, annulled or dissolved by judgment of a competent court.
C. A violation of this section is a class 3 felony.
D. For the purposes of this section:
1. "Marriage" means the state of joining together as husband and wife a married couple through an agreement, promise or ceremony regardless of whether a marriage license has been issued by the appropriate authority.
2. "Marry" means to join together as husband and wife a married couple through an agreement, promise or ceremony regardless of whether a marriage license has been issued by the appropriate authority.
3. "Spouses Spouse" means two persons living together as husband and wife a married couple, including the assumption of those marital rights, duties and obligations that are usually manifested by married people, including but not necessarily dependent on sexual relations.
Sec. 12. Section 13-4062, Arizona Revised Statutes, is amended to read:
13-4062. Antimarital fact privilege; other privileged communications
A person shall not be examined as a witness in the following cases:
1. A husband spouse for or against his wife the other spouse without her the other spouse's consent, nor a wife for or against her husband without his consent, as to events occurring during the marriage, nor can either, during the marriage or afterwards, without consent of the other, be examined as to any communication made by one to the other during the marriage. These exceptions do not apply in a criminal action or proceeding for a crime committed by the husband a spouse against the wife, or by the wife against the husband, other spouse nor in a criminal action or proceeding against the husband a spouse for abandonment, failure to support or provide for or failure or neglect to furnish the necessities of life to the wife other spouse or the minor children. Either spouse may be examined as a witness for or against the other in a prosecution for an offense listed in section 13‑706, subsection F, paragraph 1, for bigamy or adultery, committed by either spouse, or for sexual assault committed by the husband if either of the following occurs:
(a) Before testifying, the testifying spouse makes a voluntary statement to a law enforcement officer during an investigation of the offense or offenses about the events that gave rise to the prosecution or about any statements made to the spouse by the other spouse about those events.
(b) Either spouse requests to testify.
2. An attorney, without consent of the attorney's client, as to any communication made by the client to the attorney, or the attorney's advice given in the course of professional employment.
3. A clergyman or priest, without consent of the person making the confession, as to any confession made to the clergyman or priest in his professional character in the course of discipline enjoined by the church to which the clergyman or priest belongs.
4. A physician or surgeon, without consent of the physician's or surgeon's patient, as to any information acquired in attending the patient which was necessary to enable the physician or surgeon to prescribe or act for the patient.
Sec. 13. Section 14-1201, Arizona Revised Statutes, is amended to read:
14-1201. Definitions
In this title, unless the context otherwise requires:
1. "Agent" includes an attorney‑in‑fact under a durable or nondurable power of attorney, a person who is authorized to make decisions concerning another person's health care and a person who is authorized to make decisions for another person under a natural death act.
2. "Application" means a written request to the registrar for an order of informal probate or appointment under chapter 3, article 3 of this title.
3. "Basis for compensation" means an hourly rate, a fixed fee or a contingency fee agreement and reimbursable costs.
4. "Beneficiary", as it relates to a trust beneficiary, includes a person who has any present or future interest, vested or contingent, and also includes the owner of an interest by assignment or other transfer. As it relates to a charitable trust, beneficiary includes any person entitled to enforce the trust. As it relates to a beneficiary of a beneficiary designation, beneficiary refers to a beneficiary of an insurance or annuity policy, an account with pay on death designation, a security registered in beneficiary form or a pension, profit sharing, retirement or similar benefit plan, or any other nonprobate transfer at death. As it relates to a beneficiary designated in a governing instrument, beneficiary includes a grantee of a deed, a devisee, a trust beneficiary, a beneficiary of a beneficiary designation, a donee, appointee or taker in default of a power of appointment and a person in whose favor a power of attorney or a power held in any person, fiduciary or representative capacity is exercised.
5. "Beneficiary designation" refers to a governing instrument naming a beneficiary of an insurance or annuity policy, of an account with pay on death designation, of a security registered in beneficiary form or of a pension, profit sharing, retirement or similar benefit plan, or any other nonprobate transfer at death.
6. "Child" includes a person who is entitled to take as a child under this title by intestate succession from the parent whose relationship is involved. Child excludes a person who is only a stepchild, a foster child, a grandchild or a more remote descendant.
7. "Claims", in respect to estates of decedents and protected persons, includes liabilities of the decedent or the protected person, whether arising in contract, in tort or otherwise, and liabilities of the estate that arise at or after the death of the decedent or after the appointment of a conservator, including funeral expenses and expenses of administration. Claims do not include estate or inheritance taxes or demands or disputes regarding title of a decedent or a protected person to specific assets alleged to be included in the estate.
8. "Community property" means that property of a husband and wife married couple that is acquired during the marriage and that is community property as prescribed in section 25‑211.
9. "Conservator" means a person who is appointed by a court to manage the estate of a protected person.
10. "Court" means the superior court.
11. "Dependent child" means a minor child whom the decedent was obligated to support or an adult child who was in fact being supported by the decedent at the time of the decedent's death.
12. "Descendant" means all of the decedent's descendants of all generations, with the relationship of parent and child at each generation.
13. "Devise", when used as a noun, means a testamentary disposition of real or personal property and, when used as a verb, means to dispose of real or personal property by will.
14. "Devisee" means a person who is designated in a will to receive a devise. For the purposes of chapter 3 of this title, in the case of a devise to an existing trust or trustee, or to a trustee on trust described by will, the trust or trustee is the devisee and the beneficiaries are not devisees.
15. "Disability" means cause for a protective order as described in section 14‑5401.
16. "Distributee" means any person who has received property of a decedent from that person's personal representative other than as a creditor or purchaser. Distributee includes a testamentary trustee only to the extent of distributed assets or increment that remains in that person's hands. A beneficiary of a testamentary trust to whom the trustee has distributed property received from a personal representative is a distributee of the personal representative. For the purposes of this paragraph, "testamentary trustee" includes a trustee to whom assets are transferred by will, to the extent of the devised assets.
17. "Estate" includes the property of the decedent, trust or other person whose affairs are subject to this title as originally constituted and as it exists from time to time during administration. As it relates to a spouse, the estate includes only the separate property and the share of the community property belonging to the decedent or person whose affairs are subject to this title.
18. "Exempt property" means that property of a decedent's estate that is described in section 14‑2403.
19. "Fiduciary" includes a personal representative, guardian, conservator and trustee.
20. "Foreign personal representative" means a personal representative who is appointed by another jurisdiction.
21. "Formal proceedings" means proceedings that are conducted before a judge with notice to interested persons.
22. "Governing instrument" means a deed, will, trust, insurance or annuity policy, account with pay on death designation, security registered in beneficiary form, pension, profit sharing, retirement or similar benefit plan, instrument creating or exercising a power of appointment or a power of attorney or a dispositive, appointive or nominative instrument of any similar type.
23. "Guardian" means a person who has qualified as a guardian of a minor or incapacitated person pursuant to testamentary or court appointment but excludes a person who is merely a guardian ad litem.
24. "Guardian ad litem" includes a person who is appointed pursuant to section 14‑1408.
25. "Heirs", except as controlled by section 14‑2711, means persons, including the surviving spouse and the state, who are entitled under the statutes of intestate succession to the property of a decedent.
26. "Incapacitated person" has the same meaning prescribed in section 14‑5101.
27. "Informal proceedings" means those proceedings conducted without notice to interested persons by an officer of the court acting as a registrar for probate of a will or appointment of a personal representative.
28. "Interested person" includes any trustee, heir, devisee, child, spouse, creditor, beneficiary, person holding a power of appointment and other person who has a property right in or claim against a trust estate or the estate of a decedent, ward or protected person. Interested person also includes a person who has priority for appointment as personal representative and other fiduciaries representing interested persons. Interested person, as the term relates to particular persons, may vary from time to time and must be determined according to the particular purposes of, and matter involved in, any proceeding.
29. "Issue" of a person means descendant as defined in this section.
30. "Joint tenants with the right of survivorship" and "community property with the right of survivorship" includes co‑owners of property held under circumstances that entitle one or more to the whole of the property on the death of the other or others but excludes forms of co‑ownership registration in which the underlying ownership of each party is in proportion to that party's contribution.
31. "Lease" includes any oil, gas or other mineral lease.
32. "Letters" includes letters testamentary, letters of guardianship, letters of administration and letters of conservatorship.
33. "Minor" means a person who is under eighteen years of age.
34. "Mortgage" means any conveyance, agreement or arrangement in which property is encumbered or used as security. Mortgage does not include leases or easements.
35. "Nonresident decedent" means a decedent who was domiciled in another jurisdiction at the time of the decedent's death.
36. "Organization" means a corporation, limited liability company, business trust, estate, trust, partnership, joint venture, association, government or governmental subdivision or agency or any other legal or commercial entity.
37. "Parent" includes any person entitled to take, or who would be entitled to take if the child died without a will, as a parent under this title by intestate succession from the child whose relationship is in question and excludes any person who is only a stepparent, foster parent or grandparent.
38. "Payor" means a trustee, insurer, business entity, employer, government, governmental agency or subdivision or any other person who is authorized or obligated by law or a governing instrument to make payments.
39. "Person" means an individual or an organization.
40. "Personal representative" includes an executor, an administrator, a successor personal representative, a special administrator and persons who perform substantially the same function under the law governing their status. A general personal representative excludes a special administrator.
41. "Petition" means a written request to the court for an order after notice.
42. "Proceeding" includes action at law and suit in equity.
43. "Property" has the same meaning prescribed in section 14‑10103.
44. "Protected person" has the same meaning prescribed in section 14‑5101.
45. "Protective proceeding" has the same meaning prescribed in section 14‑5101.
46. "Registrar" means the official of the court who is designated to perform the functions of registrar as provided in section 14‑1307.
47. "Security" includes any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under that title or lease, collateral trust certificate, transferable share or voting trust certificate and, in general, includes any interest or instrument commonly known as a security, or any certificate of interest or participation, any temporary or interim certificate, receipt or certificate of deposit for, or any warrant or right to subscribe to or purchase, any of these securities.
48. "Separate property" means that property of a husband or wife spouse that is the spouse's separate property as defined in section 25‑213.
49. "Settlement", in reference to a decedent's estate, includes the full process of administration, distribution and closing.
50. "Special administrator" means a personal representative as described by sections 14‑3614 through 14‑3618.
51. "State" has the same meaning prescribed in section 14‑10103.
52. "Successor personal representative" means a personal representative, other than a special administrator, who is appointed to succeed a previously appointed personal representative.
53. "Successors" means persons, other than creditors, who are entitled to property of a decedent under a will or this title.
54. "Supervised administration" refers to the proceedings described in chapter 3, article 5 of this title.
55. "Survive" means that a person has neither predeceased an event, including the death of another person, nor is deemed to have predeceased an event under section 14‑2104 or 14‑2702.
56. "Testacy proceeding" means a proceeding to establish a will or determine intestacy.
57. "Testator" includes a person of either sex.
58. "Trust" includes an express trust, private or charitable, with any additions, wherever and however created. Trust also includes a trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. Trust excludes other constructive trusts and excludes resulting trusts, conservatorship, personal representatives, trust accounts, custodial arrangements pursuant to chapter 7, article 7 of this title, business trusts providing for certificates to be issued to beneficiaries, common trust funds, voting trusts, security arrangements, liquidation trusts and trusts for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions or employee benefits of any kind, trusts created by a city or town for the payment of medical insurance, health care benefits or expenses, long-term or short‑term disability, self insurance reserves and similar programs administered by a city or town, legal defense trusts and any arrangement under which a person is nominee or escrowee for another.
59. "Trustee" includes an original, additional or successor trustee, whether or not appointed or confirmed by the court.
60. "Ward" has the same meaning prescribed in section 14‑5101.
61. "Will" includes a codicil and any testamentary instrument that merely appoints an executor, revokes or revises another will, nominates a guardian or expressly excludes or limits the right of an individual or class to succeed to property of the decedent passing by intestate succession.
Sec. 14. Section 14-2802, Arizona Revised Statutes, is amended to read:
14-2802. Effect of divorce, annulment and decree of separation
A. A person who is divorced from the decedent or whose marriage to the decedent has been annulled is not a surviving spouse unless, by virtue of a subsequent marriage, that person is married to the decedent at the time of death. A decree of separation that does not terminate the status of husband and wife the married couple is not a divorce for purposes of this section.
B. For the purposes of this section, "surviving spouse" does not include:
1. A person who obtains or consents to a final decree or judgment of divorce from the decedent or an annulment of the marriage if that decree or judgment is not recognized as valid in this state, unless they subsequently participate in a marriage ceremony purporting to marry each to the other or live together as husband and wife a married couple.
2. A person who, after an invalid decree or judgment of divorce or annulment obtained by the decedent, participates in a marriage ceremony with a third person.
3. A person who was a party to a valid proceeding concluded by an order purporting to terminate all marital property rights.
Sec. 15. Section 14-2804, Arizona Revised Statutes, is amended to read:
14-2804. Termination of marriage; effect; revocation of probate and nonprobate transfers; federal law; definitions
A. Except as provided by the express terms of a governing instrument, a court order or a contract relating to the division of the marital estate made between a divorced couple before or after the marriage, divorce or annulment, the divorce or annulment of a marriage:
1. Revokes any revocable:
(a) Disposition or appointment of property made by a divorced person to that person's former spouse in a governing instrument and any disposition or appointment created by law or in a governing instrument to a relative of the divorced person's former spouse.
(b) Provision in a governing instrument conferring a general or nongeneral power of appointment on the divorced person's former spouse or on a relative of the divorced person's spouse.
(c) Nomination in a governing instrument that nominates a divorced person's former spouse or a relative of the divorced person's former spouse to serve in any fiduciary or representative capacity, including a personal representative, executor, trustee, conservator, agent or guardian.
2. Severs the interests of the former spouses in property held by them at the time of the divorce or annulment as joint tenants with the right of survivorship or as community property with the right of survivorship and transforms the interests of the former spouses into tenancies in common.
B. A severance under subsection A, paragraph 2 of this section does not affect any third party third‑party interest in property acquired for value and in good faith reliance on an apparent title by survivorship in the survivor of the former spouses unless a writing declaring the severance has been noted, registered, filed or recorded in records appropriate to the kind and location of the property that a person relied on as evidence of ownership in the ordinary course of transactions involving that property.
C. Provisions of a governing instrument are given effect as if the former spouse and relatives of the former spouse disclaimed all provisions revoked by this section or, in the case of a revoked nomination in a fiduciary or representative capacity, as if the former spouse and relatives of the former spouse died immediately before the divorce or annulment.
D. Provisions revoked solely by this section are revived by the divorced person's remarriage to the former spouse or by a nullification of the divorce or annulment.
E. No change of circumstances other than as described in this section and in section 14‑2803 effects a revocation.
F. Any payor or other third party is not liable for making a payment or transferring an item of property or any other benefit to a beneficiary designated in a governing instrument affected by a divorce, annulment or remarriage, or for taking any other action in good faith reliance on the validity of the governing instrument, before the payor or other third party receives written notice of the divorce, annulment or remarriage. Any payor or other third party is liable for a payment made or any other action taken after the payor or other third party receives written notice of a claimed forfeiture or revocation under this section.
G. Written notice of the divorce, annulment or remarriage under subsection F of this section must be mailed to the payor's or other third party's main office or home by certified mail, return receipt requested, or served on the payor or other third party in the same manner as a summons in a civil action. On receipt of written notice of the divorce, annulment or remarriage, a payor or any other third party may pay any amount owed or transfer or deposit any item of property held by it to or with the court having jurisdiction of the probate proceedings relating to the decedent's estate or, if no proceedings have been commenced, to or with the court having jurisdiction of probate proceedings relating to decedents' estates located in the county of the decedent's residence. The court shall hold the monies or item of property and, on its determination under this section, shall order disbursement or transfer in accordance with the determination. Payments, transfers or deposits made to or with the court discharge the payor or other third party from all claims for the value of amounts paid to or items of property transferred to or deposited with the court.
H. A person who purchases property from a former spouse, a relative of a former spouse or any other person for value and without notice or who receives from a former spouse, a relative of a former spouse or any other person a payment or other item of property in partial or full satisfaction of a legally enforceable obligation is neither obligated under this section to return the payment, item of property or benefit nor is liable under this section for the amount of the payment or the value of the item of property or benefit. However, a former spouse, a relative of a former spouse or any other person who, not for value, received a payment, an item of property or any other benefit to which that person is not entitled under this section is obligated to return the payment, item of property or benefit to the person who is entitled to it under this section or is personally liable for the amount of the payment or the value of the item of property or benefit.
I. For the purpose purposes of this section:
1. "Disposition or appointment of property" includes a transfer of an item of property or any other benefit to a beneficiary designated in a governing instrument.
2. "Divorce or annulment" means any divorce or annulment or any dissolution or declaration of invalidity of a marriage that would exclude the spouse as a surviving spouse within the meaning of section 14‑2802 but does not include a decree of separation that does not terminate the status of husband and wife the married couple.
3. "Divorced person" includes a person whose marriage has been annulled.
4. "Governing instrument" means an instrument that is executed by the divorced person before the divorce or annulment of that person's marriage to that person's former spouse.
5. "Relative of the divorced person's former spouse" means a person who is related to the divorced person's former spouse by blood, adoption or affinity and who, after the divorce or annulment, is not related to the divorced person by blood, adoption or affinity.
6. "Revocable", with respect to a disposition, appointment, provision or nomination, means one under which the divorced person, at the time of the divorce or annulment, was alone empowered by law or under the governing instrument to cancel a designation in favor of that person's former spouse or former spouse's relative, whether or not the divorced person was then empowered to designate himself or herself in place of that person's former spouse or in place of the former spouse's relative and whether or not the divorced person then had the capacity to exercise the power.
Sec. 16. Section 14-3101, Arizona Revised Statutes, is amended to read:
14-3101. Devolution of estate at death; administration on deaths of spouses
A. The power of a person to leave property by will, and the rights of creditors, devisees and heirs to his the person's property are subject to the restrictions and limitations contained in this title to facilitate the prompt settlement of estates. Upon On the death of a person, his the person's separate property and his share of community property devolves devolve to the persons to whom the property is devised by his the person's last will, or to those indicated as substitutes for them in cases involving lapse, renunciation or other circumstances affecting the devolution of testate estates, or in the absence of testamentary disposition to his the person's heirs, or to those indicated as substitutes for them in cases involving renunciation or other circumstances affecting the devolution of intestate estates. The devolution of separate property and decedent's share of community property is subject to rights to the allowance in lieu of homestead, exempt property and family allowance, to rights of creditors and to administration as provided in this title. In addition, the surviving spouse's share of the community property is subject to administration until the time for presentation of claims has expired, and thereafter only to the extent necessary to pay community claims.
B. If a husband and wife both spouses die, and the administration of one of their estates is not completed prior to commencement of administration of the other, their estates may be combined in a single administration with the same personal representative, if feasible. A single application or petition may be made to obtain appointment of a personal representative and to determine testacy. If their estates devolve as if each spouse survived the other because of application of section 14‑2702, and their estates are not combined, half of their community property is subject to administration in each estate and community claims will be charged ratably to each half of the community property.
Sec. 17. Section 14-5426, Arizona Revised Statutes, is amended to read:
14-5426. Enlargement or limitation of powers of conservator
A. Subject to the restrictions in section 14‑5408, subsection A, paragraph 4, the court may confer on a conservator at the time of appointment or later, in addition to the powers conferred on him by sections 14‑5424 and 14‑5425, any power which the court itself could exercise under section 14‑5408, subsection A, paragraphs 2 and 3. The court may, at the time of appointment or later, limit the powers of a conservator otherwise conferred by sections 14‑5424 and 14‑5425, or previously conferred by the court, and may at any time relieve him the conservator of any limitation. If the court limits any power conferred on the conservator by section 14‑5424 or 14‑5425, the limitation shall be endorsed upon his on the conservator's letters of appointment.
B. Upon On appointment of a conservator for a protected spouse, the court may determine whether the spouse's share of community property shall be managed by the conservator or by the other spouse. If the court determines that the community property shall be managed by the other spouse, and if the protected spouse is the husband, the wife may become the manager of the community property during the conservatorship and may dispose of community personal property in the interests of the community.
Sec. 18. Section 14-9106, Arizona Revised Statutes, is amended to read:
14-9106. Multiple beneficiaries; separate custodial trusts; survivorship
A. Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in a transfer or declaration for use and benefit of husband and wife a married couple, for whom survivorship is presumed, a right of survivorship does not exist unless the instrument creating the custodial trust specifically provides for survivorship or survivorship is required as to community or marital property.
B. Custodial trust property held under this chapter by the same custodial trustee for the use and benefit of the same beneficiary may be administered as a single custodial trust.
C. A custodial trustee of custodial trust property held for more than one beneficiary shall separately account to each beneficiary pursuant to sections 14‑9107 and 14‑9115 for the administration of the custodial trust.
Sec. 19. Section 23-805, Arizona Revised Statutes, is amended to read:
23-805. Right of action for damages; two‑year limitation
A. When in the course of work in any of the employments or occupations enumerated in section 23‑803, personal injury or death by an accident arising out of and in the course of such the labor, service and employment, and due to a condition or conditions of such the occupation or employment, is caused to or suffered by a workman engaged therein, in all cases in which the injury or death of the employee is not caused by the negligence of the employee killed or injured, the employer is liable in damages to the employee injured or, in case death ensues, to the personal representative of the deceased for the benefit of the surviving widow or husband spouse and children of the employee or, if none, then to the employee's parents or, if none, then to the next of kin dependent upon on the employee or, if none, then to his the employee's personal representative for the benefit of the estate of the deceased.
B. The action shall not be maintained unless it is commenced within two years from the day the claim or cause of action accrued.
Sec. 20. Section 23-1046, Arizona Revised Statutes, is amended to read:
23-1046. Death benefits
A. In case of an injury causing death, the compensation therefor shall be known as a death benefit and shall be payable in the amount, for the period, and to and for the benefit of the following:
1. Burial expenses, not to exceed five thousand dollars, in addition to the compensation.
2. To the surviving spouse, if there are no children, sixty‑six and two‑thirds per cent percent of the average monthly wage of the deceased, to be paid until such the spouse's death or remarriage, with two years' compensation in one sum upon on remarriage. To the surviving spouse if there are surviving children, thirty‑five per cent percent of the average monthly wage of the deceased, to be paid until such the spouse's death or remarriage with two years' compensation in one sum upon on remarriage, and to the surviving children, an additional thirty‑one and two‑thirds per cent percent of the average monthly wage, to be divided equally among them until the age of eighteen years, until the age of twenty‑two years if the child is enrolled as a full‑time student in any accredited educational institution, or if over eighteen years and incapable of self‑support when the child becomes capable of self‑support. When all surviving children are no longer eligible for benefits, the surviving spouse's benefits shall be paid as if there were no children. In the event of the subsequent death or remarriage of the surviving spouse, the surviving child's or children's benefits shall be computed pursuant to paragraph 3 of this subsection.
3. To a single surviving child, in the case of the subsequent death or remarriage of a surviving husband or wife spouse, or if there is no surviving husband or wife spouse, sixty‑six and two‑thirds per cent percent of the average monthly wage of the deceased, or if there is more than one surviving child, sixty‑six and two‑thirds per cent percent to be divided equally among the surviving children. Compensation to any such child shall cease upon on death, upon on marriage or upon on reaching the age of eighteen years, except, if over eighteen years and incapable of self‑support, when he the child becomes capable of self‑support, or if over eighteen years of age and enrolled as a full‑time student in any accredited educational institution, when the child reaches age twenty‑two.
4. To a parent, if there is no surviving husband, wife spouse or child under the age of eighteen years, if wholly dependent for support upon on the deceased employee at the time of his the employee's death, twenty‑five per cent percent of the average monthly wage of the deceased during dependency, with an added allowance of fifteen per cent percent if two dependent parents survive, and, if neither parent is wholly dependent, but one or both partly dependent, fifteen per cent percent divided between them share and share alike.
5. To brothers or sisters under the age of eighteen years, if there is no surviving husband or wife spouse, dependent children under the age of eighteen years or dependent parent, the following shall govern:
(a) If one of the brothers or sisters is wholly dependent upon on the deceased employee for support at the time of injury causing death, twenty‑five per cent percent of the average monthly wage until the age of eighteen years.
(b) If more than one brother or sister is wholly dependent, thirty‑five per cent percent of the average monthly wage at the time of injury causing death, divided among such the dependents share and share alike.
(c) If none of the brothers or sisters is wholly dependent, but one or more are partly dependent, fifteen per cent percent divided among such the dependents share and share alike.
B. If the deceased employee leaves dependents only partially dependent upon his on the employee's earnings for support at the time of the injury, the monthly compensation shall be equal to such that proportion of the monthly payments for the benefit of persons totally dependent as the amount contributed by the employee to such the partial dependents bears to the average wage of the deceased at the time of the injury resulting in his the employee's death. The duration of compensation to partial dependents shall be fixed by the commission in accordance with the facts shown, and in accordance with the provisions of section 23‑1047, but shall in no case not exceed compensation for one hundred months.
C. In the event of death of a dependent before expiration of the time named in the award, the funeral expenses of such the person, not to exceed eight hundred dollars, shall be paid.
Sec. 21. Section 23-1064, Arizona Revised Statutes, is amended to read:
23-1064. Presumptions of dependency; determination
A. The following persons are conclusively presumed to be totally dependent for support upon on a deceased employee:
1. A wife upon a husband whom she has spouse on the other spouse who was not voluntarily abandoned at the time of the injury.
2. A husband upon a wife whom he has not voluntarily abandoned at the time of the injury.
3. 2. A natural, posthumous or adopted child under the age of eighteen years or under the age of twenty‑two years if enrolled as a full‑time student in any accredited educational institution, or over that age if physically or mentally incapacitated from wage earning, upon on the injured parent. Stepparents may be regarded as parents, if dependent, and a stepchild as a natural child if dependent.
B. Questions of dependency and the extent thereof shall be determined as of the date of the injury to the employee and the dependent's right to any death benefit shall become fixed as of such that time irrespective of any subsequent change in conditions, and the death benefits shall be directly recoverable by and payable to the dependent entitled thereto.
Sec. 22. Heading change
The chapter heading of title 25, chapter 2, Arizona Revised Statutes, is changed from "HUSBAND AND WIFE, PROPERTY AND CONTRACT RIGHTS" to "PROPERTY AND CONTRACT RIGHTS OF SPOUSES".
Sec. 23. Section 25-211, Arizona Revised Statutes, is amended to read:
25-211. Property acquired during marriage as community property; exceptions; effect of service of a petition
A. All property acquired by either husband or wife spouse during the marriage is the community property of the husband and wife married couple except for property that is:
1. Acquired by gift, devise or descent.
2. Acquired after service of a petition for dissolution of marriage, legal separation or annulment if the petition results in a decree of dissolution of marriage, legal separation or annulment.
B. Notwithstanding subsection A, paragraph 2 of this section, service of a petition for dissolution of marriage, legal separation or annulment does not:
1. Alter the status of preexisting community property.
2. Change the status of community property used to acquire new property or the status of that new property as community property.
3. Alter the duties and rights of either spouse with respect to the management of community property except as prescribed pursuant to section 25‑315, subsection A, paragraph 1, subdivision (a).
Sec. 24. Section 25-314, Arizona Revised Statutes, is amended to read:
25-314. Pleadings; contents; defense; joinder of parties; confidentiality
A. The verified petition in a proceeding for dissolution of marriage or legal separation shall allege that the marriage is irretrievably broken or that one or both of the parties desire to live separate and apart, or, if the marriage is a covenant marriage, any of the grounds prescribed in section 25‑903 or 25‑904, whichever is appropriate, and shall set forth:
1. The birth date, occupation and address of each party and the length of domicile in this state.
2. The date of the marriage, the place at which it was performed and whether the marriage is a covenant marriage.
3. The names, birth dates and addresses of all living children, natural or adopted, common to the parties and whether the wife either party to the marriage is pregnant.
4. The details of any agreements between the parties as to support, custody and parenting time of the children and maintenance of a spouse.
5. The relief sought.
B. Either party to the marriage may initiate the proceeding.
C. The only defense to a petition for the dissolution of a marriage or legal separation is that the marriage is not irretrievably broken. If the marriage is a covenant marriage, it is a defense that none of the grounds alleged for a dissolution of marriage or legal separation prescribed in section 25‑903 or 25‑904 are met.
D. The court may join additional parties necessary for the exercise of its authority.
E. This section does not require a victim of domestic violence or a resident of a domestic violence shelter as defined in section 36‑3001 to divulge the person's address, except that a means of communicating with the resident, such as a post office box or address of the person's attorney, must be disclosed.
Sec. 25. Section 25-1060, Arizona Revised Statutes, is amended to read:
25-1060. Hearing and order
A. Unless the court issues a temporary emergency order in accordance with section 25‑1034, on a finding that a petitioner is entitled to immediate physical custody of the child, the court shall order that the petitioner may take immediate physical custody of the child unless the respondent establishes that either of the following is true:
1. The child custody determination has not been registered and confirmed under section 25‑1053 25‑1055 and that any of the following is true:
(a) The issuing court did not have jurisdiction under article 2 of this chapter.
(b) The child custody determination for which enforcement is sought has been vacated, stayed or modified by a court of a state having jurisdiction to do so under article 2 of this chapter.
(c) The respondent was entitled to notice, but notice was not given in accordance with section 25‑1008, in the proceedings before the court that issued the order for which enforcement is sought.
2. The child custody determination for which enforcement is sought was registered and confirmed under section 25‑1055 but has been vacated, stayed or modified by a court of a state having jurisdiction to do so under article 2 of this chapter.
B. The court shall award the fees, costs and expenses authorized under section 25‑1062, may grant additional relief, including a request for the assistance of law enforcement officials, and may set a further hearing to determine whether additional relief is appropriate.
C. If a party called to testify refuses to answer on the ground that the testimony may be self‑incriminating, the court may draw an adverse inference from the refusal.
D. A privilege against disclosure of communications between spouses and a defense of immunity based on the spousal relationship or the relationship of husband and wife or parent and child shall not be invoked in a proceeding under this article.
Sec. 26. Section 25-1256, Arizona Revised Statutes, is amended to read:
25-1256. Special rules of evidence and procedure
A. The physical presence of a nonresident party who is an individual in a tribunal of this state is not required for the establishment, enforcement or modification of a support order or the rendition of a judgment determining parentage of a child.
B. An affidavit, a document substantially complying with federally mandated forms or a document incorporated by reference in any affidavit or mandated form that would not be excluded under the hearsay rule if given in person is admissible in evidence if given under penalty of perjury by a party or witness residing outside this state.
C. A copy of the record of child support payments certified as a true copy of the original by the custodian of the record may be forwarded to a responding tribunal. The copy is evidence of facts asserted in it and is admissible to show whether payments were made.
D. Copies of bills for testing for parentage of a child and for prenatal and postnatal health care of the mother and child furnished to the adverse party at least ten days before trial are admissible in evidence to prove the amount of the charges billed and that the charges were reasonable, necessary and customary.
E. Documentary evidence transmitted from outside this state to a tribunal of this state by telephone, fax or other electronic means that do not provide an original record shall not be excluded from evidence on an objection based on the means of transmission.
F. In a proceeding under this chapter, a tribunal of this state shall permit a party or witness residing outside this state to be deposed or to testify under penalty of perjury by telephone, audiovisual means or other electronic means at a designated tribunal or other location. A tribunal of this state shall cooperate with other tribunals in designating an appropriate location for the deposition or testimony.
G. If a party called to testify at a civil hearing refuses to answer on the ground that the testimony may be self‑incriminating, the trier of fact may draw an adverse inference from the refusal.
H. A privilege against disclosure of communications between spouses does not apply in a proceeding under this chapter.
I. The defense of immunity based on the spousal relationship or the relationship of husband and wife or parent and child does not apply in a proceeding under this chapter.
J. A voluntary acknowledgment of paternity, certified as a true copy, is admissible to establish parentage of the child.
Sec. 27. Section 32-2101, Arizona Revised Statutes, is amended to read:
32-2101. Definitions
In this chapter, unless the context otherwise requires:
1. "Acting in concert" means evidence of collaborating to pursue a concerted plan.
2. "Advertising" means the attempt by publication, dissemination, exhibition, solicitation or circulation, oral or written, or for broadcast on radio or television to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in lands subject to this chapter including the land sales contract to be used and any photographs, drawings or artist's presentations of physical conditions or facilities existing or to exist on the property. Advertising does not include:
(a) Press releases or other communications delivered to newspapers, periodicals or other news media for general information or public relations purposes if no charge is made by the newspapers, periodicals or other news media for the publication or use of any part of these communications.
(b) Communications to stockholders as follows:
(i) Annual reports and interim financial reports.
(ii) Proxy materials.
(iii) Registration statements.
(iv) Securities prospectuses.
(v) Applications for listing of securities on stock exchanges.
(vi) Prospectuses.
(vii) Property reports.
(viii) Offering statements.
3. "Affiliate" means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person specified.
4. "Associate broker" means a licensed broker who is employed by another broker. Unless otherwise specifically provided, an associate broker has the same license privileges as a salesperson.
5. "Barrier" means a natural or man-made geographical feature that prevents parcels of land from being practicably, reasonably and economically united or reunited and that was not caused or created by the owner of the parcels.
6. "Blanket encumbrance" means any mortgage, any deed of trust or any other encumbrance or lien securing or evidencing the payment of money and affecting more than one lot or parcel of subdivided land, or an agreement affecting more than one lot or parcel by which the subdivider holds the subdivision under an option, contract to sell or trust agreement. Blanket encumbrance does not include taxes and assessments that are levied by public authority.
7. "Board" means the state real estate advisory board.
8. "Broker", when used without modification, means a person who is licensed as a broker under this chapter or who is required to be licensed as a broker under this chapter.
9. "Business broker" means a real estate broker who acts as an intermediary or agent between sellers or buyers, or both, in the sale or purchase, or both, of businesses or business opportunities where a lease or sale of real property is either a direct or incidental part of the transaction.
10. "Camping site" means a space that is designed and promoted for the purpose of locating any trailer, tent, tent trailer, pickup camper or other similar device used for camping.
11. "Cemetery" or "cemetery property" means any one, or a combination of more than one, of the following in a place that is used, or intended to be used, and dedicated for cemetery purposes:
(a) A burial park, for earth interments.
(b) A mausoleum, for crypt or vault entombments.
(c) A crematory, or a crematory and columbarium, for cinerary interments.
(d) A cemetery plot, including interment rights, mausoleum crypts, niches and burial spaces.
12. "Cemetery broker" means a person other than a real estate broker or real estate salesperson who, for another, for compensation:
(a) Sells, leases or exchanges cemetery property or interment services of or for another, or on the person's own account.
(b) Offers for another or for the person's own account to buy, sell, lease or exchange cemetery property or interment services.
(c) Negotiates the purchase and sale, lease or exchange of cemetery property or interment services.
(d) Negotiates the purchase or sale, lease or exchange, or lists or solicits, or negotiates a loan on or leasing of cemetery property or interment services.
13. "Cemetery salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed cemetery or real estate broker, or through and on behalf of a corporation, partnership or limited liability company that is licensed as a cemetery or real estate broker, to perform any act or transaction included in the definition of cemetery broker.
14. "Commissioner" means the state real estate commissioner.
15. "Common promotional plan" means a plan, undertaken by a person or a group of persons acting in concert, to offer lots for sale or lease. If the land is offered for sale by a person or group of persons acting in concert, and the land is contiguous or is known, designated or advertised as a common unit or by a common name, the land is presumed, without regard to the number of lots covered by each individual offering, as being offered for sale or lease as part of a common promotional plan. Separate subdividers selling lots or parcels in separately platted subdivisions within a master planned community shall not be deemed to be offering their combined lots for sale or lease as part of a common promotional plan.
16. "Compensation" means any fee, commission, salary, money or other valuable consideration for services that is rendered or to be rendered as well as the promise of consideration whether contingent or not.
17. "Contiguous" means lots, parcels or fractional interests that share a common boundary or point. Lots, parcels or fractional interests are not contiguous if they are separated by either of the following:
(a) A barrier.
(b) A road, street or highway that has been established by this state or by any agency or political subdivision of this state, that has been designated by the federal government as an interstate highway or that has been regularly maintained by this state or by any agency or political subdivision of this state and has been used continuously by the public for at least the last five years.
18. "Control" or "controlled" means a person who, through ownership, voting rights, power of attorney, proxy, management rights, operational rights or other rights, has the right to make decisions binding on an entity, whether a corporation, a partnership or any other entity.
19. "Corporation licensee" means a lawfully organized corporation that is registered with the Arizona corporation commission and that has an officer licensed as the designated broker pursuant to section 32‑2125.
20. "Department" means the state real estate department.
21. "Designated broker" means the natural person who is licensed as a broker under this chapter and who is either:
(a) Designated to act on behalf of an employing real estate, cemetery or membership camping entity.
(b) Doing business as a sole proprietor.
22. "Developer" means a person who offers real property in a development for sale, lease or use, either immediately or in the future, on the person's own behalf or on behalf of another person, under this chapter. Developer does not include a person whose involvement with a development is limited to the listing of property within the development for sale, lease or use.
23. "Development" means any division, proposed division or use of real property that the department has authority to regulate, including subdivided and unsubdivided lands, cemeteries, condominiums, timeshares, membership campgrounds and stock cooperatives.
24. "Employing broker" means a person who is licensed or is required to be licensed as a:
(a) Broker entity pursuant to section 32‑2125, subsection A.
(b) Sole proprietorship if the sole proprietor is a broker licensed pursuant to this chapter.
25. "Fractional interest" means an undivided interest in improved or unimproved land, lots or parcels of any size created for the purpose of sale or lease and evidenced by any receipt, certificate, deed or other document conveying the interest. Undivided interests in land, lots or parcels created in the names of a husband and wife both spouses as community property, joint tenants or tenants in common, or in the names of other persons who, acting together as part of a single transaction, acquire the interests without a purpose to divide the interests for present or future sale or lease, shall be deemed to constitute only one fractional interest.
26. "Improved lot or parcel" means a lot or parcel of a subdivision upon on which lot or parcel there is a residential, commercial or industrial building or concerning which a contract has been entered into between a subdivider and a purchaser that obligates the subdivider directly, or indirectly through a building contractor, to complete construction of a residential, commercial or industrial building on the lot or parcel within two years from the date on which the contract of sale for the lot is entered into.
27. "Inactive license" means a license that is issued pursuant to article 2 of this chapter to a licensee who is on inactive status during the current license period and who is not engaged by or on behalf of a broker.
28. "Lease" or "leasing" includes any lease, whether it is the sole, the principal or any incidental part of a transaction.
29. "License" means the whole or part of any agency permit, certificate, approval, registration, public report, charter or similar form of permission required by this chapter.
30. "License period" means the two year two‑year period beginning with the date of original issue or renewal of a particular license and ending on the expiration date, if any.
31. "Licensee" means a person to whom a license for the current license period has been granted under any provision of this chapter, and, for purposes of section 32‑2153, subsection A, shall include original license applicants.
32. "Limited liability company licensee" means a lawfully organized limited liability company that has a member or manager who is a natural person and who is licensed as the designated broker pursuant to section 32‑2125.
33. "Lot reservation" means an expression of interest by a prospective purchaser in buying at some time in the future a subdivided or unsubdivided lot, unit or parcel in this state. In all cases, a subsequent affirmative action by the prospective purchaser must be taken to create a contractual obligation to purchase.
34. "Master planned community" means a development that consists of two or more separately platted subdivisions and that is either subject to a master declaration of covenants, conditions or restrictions, is subject to restrictive covenants sufficiently uniform in character to clearly indicate a general scheme for improvement or development of real property or is governed or administered by a master owner's association.
35. "Member" means a member of the real estate advisory board.
36. "Membership camping broker" means a person, other than a salesperson, who, for compensation:
(a) Sells, purchases, lists, exchanges or leases membership camping contracts.
(b) Offers to sell, purchase, exchange or lease membership camping contracts.
(c) Negotiates or offers, attempts or agrees to negotiate the sale, purchase, exchange or lease of membership camping contracts.
(d) Advertises or holds himself out as being engaged in the business of selling, buying, exchanging or leasing membership camping contracts or counseling or advising regarding membership camping contracts.
(e) Assists or directs in the procuring of prospects calculated or intended to result in the sale, purchase, listing, exchange or lease of membership camping contracts.
(f) Performs any of the foregoing acts as an employee or on behalf of a membership camping operator or membership contract owner.
37. "Membership camping contract" means an agreement that is offered or sold in this state evidencing a purchaser's right or license to use the camping or outdoor recreation facilities of a membership camping operator and includes a membership that provides for this use.
38. "Membership camping operator" means an enterprise, other than one that is tax exempt under section 501(c)(3) of the internal revenue code of 1986, as amended, that solicits membership paid for by a fee or periodic payments and has as one of its purposes camping or outdoor recreation, including the use of camping sites primarily by members. Membership camping operator does not include camping or recreational trailer parks that are open to the general public and that contain camping sites rented for a per use fee or a mobile home park.
39. "Membership camping salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed membership camping or real estate broker, or by or on behalf of a corporation, partnership or limited liability company that is licensed as a membership camping or real estate broker, to perform any act or participate in any transaction in a manner included in the definition of membership camping broker.
40. "Partnership licensee" means a partnership with a managing general partner who is licensed as the designated broker pursuant to section 32‑2125.
41. "Permanent access", as required under article 4 of this chapter, means permanent access from the subdivision to any federal, state or county highway.
42. "Perpetual or endowed‑care cemetery" means a cemetery wherein lots or other burial spaces are sold or transferred under the representation that the cemetery will receive "perpetual" or "endowed" care as defined in this section free of further cost to the purchaser after payment of the original purchase price for the lot, burial space or interment right.
43. "Perpetual‑care" or "endowed‑care" means the maintenance and care of all places where interments have been made of the trees, shrubs, roads, streets and other improvements and embellishments contained within or forming a part of the cemetery. This shall not include the maintenance or repair of monuments, tombs, copings or other man‑made ornaments as associated with individual burial spaces.
44. "Person" means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic.
45. "Private cemetery" means a cemetery or place that is not licensed under article 6 of this chapter, where burials or interments of human remains are made, in which sales or transfers of interment rights or burial plots are not made to the public and in which not more than ten interments or burials occur annually.
46. "Promotion" or "promotional practice" means advertising and any other act, practice, device or scheme to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in or use of real property subject to this chapter, including meetings with prospective purchasers, arrangements for prospective purchasers to visit real property, travel allowances and discount, exchange, refund and cancellation privileges.
47. "Real estate" includes leasehold‑interests and any estates in land as defined in title 33, chapter 2, articles 1 and 2, regardless of whether located in this state.
48. "Real estate broker" means a person, other than a salesperson, who, for another and for compensation:
(a) Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests.
(b) Offers to sell, exchange, purchase, rent or lease real estate, businesses and business opportunities or timeshare interests.
(c) Negotiates or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate, businesses and business opportunities or timeshare interests.
(d) Lists or offers, attempts or agrees to list real estate, businesses and business opportunities or timeshare interests for sale, lease or exchange.
(e) Auctions or offers, attempts or agrees to auction real estate, businesses and business opportunities or timeshare interests.
(f) Buys, sells, offers to buy or sell or otherwise deals in options on real estate, businesses and business opportunities or timeshare interests or improvements to real estate, businesses and business opportunities or timeshare interests.
(g) Collects or offers, attempts or agrees to collect rent for the use of real estate, businesses and business opportunities or timeshare interests.
(h) Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate, businesses and business opportunities or timeshare interests or counseling or advising regarding real estate, businesses and business opportunities or timeshare interests.
(i) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.
(j) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.
(k) Incident to the sale of real estate, businesses and business opportunities negotiates or offers, attempts or agrees to negotiate a loan secured or to be secured by any mortgage or other encumbrance upon on or transfer of real estate, businesses and business opportunities or timeshare interests subject to section 32‑2155, subsection C. This subdivision does not apply to mortgage brokers as defined in and subject to title 6, chapter 9, article 1.
(l) Engages in the business of assisting or offering to assist another in filing an application for the purchase or lease of, or in locating or entering upon on, lands owned by the state or federal government.
(m) Claims, demands, charges, receives, collects or contracts for the collection of an advance fee in connection with any employment enumerated in this section, including employment undertaken to promote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospective tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits connected therewith. This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are specifically exempt from applicability of this article under section 32‑2121.
(n) Engages in any of the acts listed in subdivisions (a) through (m) of this paragraph for the sale or lease of other than real property if a real property sale or lease is a part of, contingent on or ancillary to the transaction.
(o) Performs any of the acts listed in subdivisions (a) through (m) of this paragraph as an employee of, or in behalf of, the owner of real estate, or interest in the real estate, or improvements affixed on the real estate, for compensation.
(p) Acts as a business broker.
49. "Real estate sales contract" means an agreement in which one party agrees to convey title to real estate to another party upon on the satisfaction of specified conditions set forth in the contract.
50. "Real estate salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed real estate broker, or by or on behalf of a limited liability company, partnership or corporation that is licensed as a real estate broker, to perform any act or participate in any transaction in a manner included in the definition of real estate broker subject to section 32‑2155.
51. "Sale" or "lease" includes every disposition, transfer, option or offer or attempt to dispose of or transfer real property, or an interest, use or estate in the real property, including the offering of the property as a prize or gift if a monetary charge or consideration for whatever purpose is required.
52. "Salesperson", when used without modification, means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation licensed under this chapter or any person required to be licensed as a salesperson under this chapter.
53. "School" means a person or entity that offers a course of study towards completion of the education requirements leading to licensure or renewal of licensure under this chapter.
54. "Stock cooperative" means a corporation to which all of the following apply:
(a) The corporation is formed or used to hold title to improved real property in fee simple or for a term of years.
(b) All or substantially all of the shareholders of the corporation each receive a right of exclusive occupancy in a portion of the real property to which the corporation holds title.
(c) The right of occupancy may only be transferred with the concurrent transfer of the shares of stock in the corporation held by the person having the right of occupancy.
55. "Subdivider" means any person who offers for sale or lease six or more lots, parcels or fractional interests in a subdivision or who causes land to be subdivided into a subdivision for the subdivider or for others, or who undertakes to develop a subdivision, but does not include a public agency or officer authorized by law to create subdivisions.
56. "Subdivision" or "subdivided lands":
(a) Means improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests.
(b) Includes a stock cooperative, lands divided or proposed to be divided as part of a common promotional plan and residential condominiums as defined in title 33, chapter 9.
(c) Does not include:
(i) Leasehold offerings of one year or less.
(ii) The division or proposed division of land located in this state into lots or parcels each of which is or will be thirty‑six acres or more in area including to the centerline of dedicated roads or easements, if any, contiguous to the lot or parcel.
(iii) The leasing of agricultural lands or apartments, offices, stores, hotels, motels, pads or similar space within an apartment building, industrial building, rental recreational vehicle community, rental manufactured home community, rental mobile home park or commercial building.
(iv) The subdivision into or development of parcels, plots or fractional portions within the boundaries of a cemetery that has been formed and approved pursuant to this chapter.
(v) A sale or lease of a lot, parcel or fractional interest that occurs ten or more years after the sale or lease of another lot, parcel or fractional interest if the other lot, parcel or fractional interest is not subject to this article and is treated as an independent parcel unless, upon on investigation by the commissioner, there is evidence of intent to subdivide.
57. "Timeshare" or "timeshare property" means real property ownership or right of occupancy in real property pursuant to article 9 of this chapter. For the purposes of this chapter, a timeshare is not a security unless it meets the definition of a security under section 44‑1801.
58. "Trustee" means:
(a) A person who is designated under section 32‑2194.27 to act as a trustee for an endowment‑care cemetery fund.
(b) A person holding bare legal title to real property under a subdivision trust. A trustee shall not be deemed to be a developer, subdivider, broker or salesperson within this chapter.
59. "Unimproved lot or parcel" means a lot or parcel of a subdivision that is not an improved lot or parcel.
60. "Unsubdivided lands":
(a) Means land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests and the lots or parcels are thirty‑six acres or more each but less than one hundred sixty acres each, or that are offered, known or advertised under a common promotional plan for sale or lease, except that agricultural leases shall not be included in this definition.
(b) Includes any land that is sold that would otherwise constitute the sixth lot, parcel or fractional interest if the sale occurs ten or more years after the earliest of the previous five sales and if all of the sales consist of property that was originally contained within the same parcel that is thirty‑six acres or more and less than one hundred sixty acres.
Sec. 28. Section 33-405, Arizona Revised Statutes, is amended to read:
33-405. Beneficiary deeds; recording; definitions
A. A deed that conveys an interest in real property, including any debt secured by a lien on real property, to a grantee beneficiary designated by the owner and that expressly states that the deed is effective on the death of the owner transfers the interest to the designated grantee beneficiary effective on the death of the owner subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made by the owner or to which the owner was subject during the owner's lifetime.
B. A beneficiary deed may designate multiple grantees who take title as joint tenants with right of survivorship, tenants in common, a husband and wife married couple as community property or as community property with right of survivorship, or any other tenancy that is valid under the laws of this state.
C. A beneficiary deed may designate a successor grantee beneficiary. If the beneficiary deed designates a successor grantee beneficiary, the deed shall state the condition on which the interest of the successor grantee beneficiary would vest.
D. If real property is owned as joint tenants with the right of survivorship or as community property with the right of survivorship, a deed that conveys an interest in the real property to a grantee beneficiary designated by all of the then surviving owners and that expressly states that the deed is effective on the death of the last surviving owner transfers the interest to the designated grantee beneficiary effective on the death of the last surviving owner. If a beneficiary deed is executed by fewer than all of the owners of real property owned as joint tenants with right of survivorship or community property with right of survivorship, the beneficiary deed is valid if the last surviving owner is one of the persons who executes the beneficiary deed. If the last surviving owner did not execute the beneficiary deed, the transfer shall lapse and the deed is void. An estate in joint tenancy with right of survivorship or community property with right of survivorship is not affected by the execution of a beneficiary deed that is executed by fewer than all of the owners of the real property, and the rights of a surviving joint tenant with right of survivorship or a surviving spouse in community property with right of survivorship shall prevail over a grantee beneficiary named in a beneficiary deed.
E. A beneficiary deed is valid only if the deed is executed and recorded as provided by law in the office of the county recorder of the county in which the property is located before the death of the owner or the last surviving owner. A beneficiary deed may be used to transfer an interest in real property to the trustee of a trust even if the trust is revocable.
F. A beneficiary deed may be revoked at any time by the owner or, if there is more than one owner, by any of the owners who executed the beneficiary deed. To be effective, the revocation must be executed and recorded as provided by law in the office of the county recorder of the county in which the real property is located before the death of the owner who executes the revocation. If the real property is owned as joint tenants with right of survivorship or community property with right of survivorship and if the revocation is not executed by all the owners, the revocation is not effective unless executed by the last surviving owner.
G. If an owner executes and records more than one beneficiary deed concerning the same real property, the last beneficiary deed that is recorded before the owner's death is the effective beneficiary deed.
H. This section does not prohibit other methods of conveying property that are permitted by law and that have the effect of postponing enjoyment of an interest in real property until the death of the owner. This section does not invalidate any deed otherwise effective by law to convey title to the interests and estates provided in the deed that is not recorded until after the death of the owner.
I. The signature, consent or agreement of or notice to a grantee beneficiary of a beneficiary deed is not required for any purpose during the lifetime of the owner.
J. A beneficiary deed that is executed, acknowledged and recorded in accordance with this section is not revoked by the provisions of a will.
K. A beneficiary deed is sufficient if it complies with other applicable laws and if it is in substantially the following form:
Beneficiary Deed
I (we) _________________________ (owner) hereby convey to ___________________________ (grantee beneficiary) effective on my (our) death the following described real property:
(Legal description)
If a grantee beneficiary predeceases the owner, the conveyance to that grantee beneficiary shall either (choose one):
[] Become null and void.
[] Become part of the estate of the grantee beneficiary.
_________________________
(Signature of grantor(s))
(acknowledgment).
L. The instrument of revocation shall be sufficient if it complies with other applicable laws and is in substantially the following form:
Revocation of Beneficiary Deed
The undersigned hereby revokes the beneficiary deed recorded on ___________ (date), in docket or book ______________ at page ________, or instrument number ____________, records of ________________ county, Arizona.
Dated: _______________________
______________________________
Signature
(acknowledgment).
M. For the purposes of this section:
1. "Beneficiary deed" means a deed authorized under this section.
2. "Owner" means any person who executes a beneficiary deed as provided in this section.
Sec. 29. Section 33-431, Arizona Revised Statutes, is amended to read:
33-431. Grants and devises to two or more persons; estates in common; community property with right of survivorship; joint tenants with right of survivorship
A. Except as otherwise provided in this section, all grants and devises of real property made to two or more persons create estates in common and not in joint tenancy, except grants or devises in trust, or to executors, or to husband and wife a married couple.
B. A grant or devise to two or more persons may by express words vest the estate in the survivor on the death of a grantee or devisee when expressly declared in the grant, transfer or devise to be a joint tenancy with right of survivorship. An estate in joint tenancy with right of survivorship may also be created by grant or transfer from a sole owner to himself and others, or from two or more owners to themselves or to one or more of them and others.
C. A grant or devise to a husband and wife married couple may by express words vest the estate in the surviving spouse on the death of one of the spouses when expressly declared in the grant, transfer or devise to be an estate in community property with right of survivorship. An estate in community property with right of survivorship may also be created by grant or transfer from a husband and wife married couple, when holding title as community property or otherwise, to themselves or from either husband or wife spouse to both husband and wife spouses.
D. In the case of real property owned by a husband and wife married couple as community property with right of survivorship, the right of survivorship is extinguished as provided in section 14‑2804 or on the recordation in the office of the recorder of the county or counties where the real property is located of an affidavit entitled "affidavit terminating right of survivorship" executed by either spouse under oath that sets forth a stated intent by the spouse to terminate the survivorship right, a description of the instrument by which the right of survivorship was created including the date the instrument was recorded and the county recorder's book and page or instrument reference number and the legal description of the real property affected by the affidavit. The recordation shall not extinguish the community interest of either spouse.
E. In the case of real property owned as joint tenants with right of survivorship, the right of survivorship is extinguished as provided in section 14‑2804 or on the recordation in the office of the recorder of the county or counties where the real property is located of an affidavit entitled "affidavit terminating right of survivorship" executed by any joint tenant under oath that sets forth a stated intent by that joint tenant to terminate the survivorship right, a description of the instrument by which the right of survivorship was created including the date the instrument was recorded and the county recorder's book and page or instrument reference number and the legal description of the real property affected by the affidavit. If there are more than two joint tenants, the recordation of the affidavit shall extinguish only the joint tenancy and survivorship right of the person who executes the affidavit, and the joint tenancy and survivorship right shall continue among all remaining joint tenants who have not executed an affidavit of termination.
F. With respect to a deceased joint tenant, the termination or extinguishment by death of that tenant's joint tenancy with right of survivorship may be evidenced by the recordation of both of the following items in the office of the recorder of the county or counties where the real property is located:
1. An affidavit executed by one or more of the surviving joint tenants that includes the name of the deceased joint tenant, the date of death of the deceased joint tenant, a description of the instrument by which the right of survivorship was created including the date the instrument was recorded and the county recorder's book and page or instrument reference number, the legal description of the real property affected by the affidavit, and the cause of death of the deceased joint tenant.
2. An attached death certificate of the deceased joint tenant.
Sec. 30. Section 33-452, Arizona Revised Statutes, is amended to read:
33-452. Conveyance of community property
A conveyance or incumbrance encumbrance of community property is not valid unless executed and acknowledged by both husband and wife spouses, except unpatented mining claims which that may be conveyed or incumbered encumbered by the spouse having the title or right of possession without the other spouse joining in the conveyance or incumbrance encumbrance.
Sec. 31. Section 33-454, Arizona Revised Statutes, is amended to read:
33-454. Power of attorney from one spouse to the other to execute instruments relating to property
Either husband or wife spouse may authorize the other by power of attorney, executed and acknowledged in the manner conveyances of real property are executed and acknowledged, to execute, acknowledge and deliver, in his or her that spouse's name and behalf, any conveyance, mortgage or other instrument affecting the separate or community property or any interest therein of the spouse executing the power of attorney.
Sec. 32. Section 33-457, Arizona Revised Statutes, is amended to read:
33-457. Fraudulent representation by married person of ability to convey realty; violation; classification
A married person who falsely and fraudulently represents himself or herself that person as competent to sell or mortgage real estate, when the validity of the sale or mortgage requires the assent or concurrence of the wife or husband other spouse, and, under such the representations, knowingly conveys or mortgages the real estate, is guilty of a class 5 felony.
Sec. 33. Section 36-832, Arizona Revised Statutes, is amended to read:
36-832. Authorization for post‑mortem examination
A. In addition to the provisions set forth in section 11‑597, whichever of the following assumes custody of the body for purposes of burial may give permission to a licensed physician to conduct a post‑mortem examination:
1. Father.
2. Mother.
3. Husband Spouse.
4. Wife.
5. 4. Adult child.
6. 5. Guardian.
7. 6. Next of kin.
B. In the absence of any of the persons named in subsection A of this section, a friend or one charged with the responsibility of burial may give permission to a licensed physician to conduct a post‑mortem examination.
Sec. 34. Section 42-2079, Arizona Revised Statutes, is amended to read:
42-2079. Suspension of liabilities by reason of disasters, terroristic or military actions or states of emergency; definitions
A. Notwithstanding sections 42‑1107 and 42‑1123, the director shall specify a period of up to one year to extend any due date and suspend any penalty or interest that would ordinarily accrue during that time for any affected taxpayer in any of the following circumstances:
1. Section 7508A of the internal revenue code relating to disasters and terroristic and military actions applies.
2. The governor has declared a state of emergency pursuant to section 26‑303, subsection D.
B. Notwithstanding section 42‑1123, interest shall not accrue on any unpaid tax during the time determined under subsection A of this section for any affected taxpayer.
C. For the purposes of this section:
1. "Affected taxpayer" means:
(a) An individual whose principal residence is located in a covered area.
(b) A business entity or sole proprietor whose principal place of business is located in a covered area.
(c) An individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area.
(d) An individual, business entity or sole proprietor whose records necessary to meet a tax filing or paying deadline are maintained in a covered area.
(e) The spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife married couple.
(f) Any other person determined by the director to be affected pursuant to subsection A of this section.
2. "Covered area" means a geographical area to which subsection A of this section applies.
Sec. 35. Section 43-301, Arizona Revised Statutes, is amended to read:
43-301. Individual returns; definition
A. An individual whose income is taxable under this title shall file a return with the department if, for the taxable year, the individual has any of the following:
1. An Arizona adjusted gross income of five thousand five hundred dollars or over, if single or married filing a separate return.
2. An Arizona adjusted gross income of eleven thousand dollars or over, if married filing a joint return pursuant to section 43‑309.
3. A gross income of fifteen thousand dollars or over, regardless of the amount of taxable income.
B. In the case of a husband and wife married couple, the spouse who controls the disposition of or who receives or spends community income as well as the spouse who is taxable on such income is liable for the payment of taxes imposed by this title on such income. If a joint return is filed, the liability for the tax on the aggregate income is joint and several.
C. This section applies regardless of whether an individual is required to file a return under the internal revenue code or whether the individual has any federal adjusted gross income for the taxable year.
D. For the purposes of this section, "gross income" means gross income as defined in the internal revenue code minus income included in gross income but excluded from taxation under this title.
Sec. 36. Section 43-309, Arizona Revised Statutes, is amended to read:
43-309. Joint returns of a married couple
If a husband and wife are each spouse is required to file a return pursuant to section 43‑301, they may file a joint return under the following conditions:
1. No a joint return shall not be made if husband and wife have each spouse has a different taxable years year. If such taxable years begin on the same day and end on different days because of the death of either or of both, then the joint return may be made with respect to the taxable year of each. Such exception shall not apply if the surviving spouse remarried before the close of his that spouse's taxable year, nor if the taxable year of either spouse is a fractional part of a year under section 43‑931, subsection A.
2. In the case of the death of one or both spouses, the joint return with respect to the decedent may be made only by his the executor or administrator, except that in the case of the death of one spouse the joint return may be made by the surviving spouse with respect to both himself the surviving spouse and the decedent if all of the following apply:
(a) No return for the taxable year has been made by the decedent.
(b) No executor or administrator has been appointed.
(c) No executor or administrator is appointed before the last day prescribed by law for filing the return of the surviving spouse. If an executor or administrator of the decedent is appointed after the making of the joint return by the surviving spouse, the executor or administrator may disaffirm such joint return by making, within one year after the last day prescribed by law for filing the return of the surviving spouse, a separate return for the taxable year of the decedent with respect to which the joint return was made, in which case the return made by the survivor shall constitute his the surviving spouse's separate return.
3. For the purposes of this section, the status as husband and wife a married couple of two individuals having taxable years beginning on the same day shall be determined:
(a) If both have the same taxable year, as of the close of such year.
(b) If one dies before the close of the taxable year of the other, as of the time of such death.
Sec. 37. Section 43-310, Arizona Revised Statutes, is amended to read:
43-310. Separate returns after filing joint returns
A. If a husband and wife have married couple has filed a joint return for a taxable year for which separate returns could have been made by them under section 43‑309, and the time prescribed by this title for filing the return for such taxable year has expired, the spouses may nevertheless make separate returns for such taxable year. Separate returns filed by the spouses in such a case shall constitute their returns for such taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the joint return for such taxable year shall be taken into account in determining the extent to which the taxes based on the separate returns have been paid.
B. Separate returns may be filed under subsection A of this section only if there is paid in full all of the following, at or before the time of filing such returns:
1. All amounts previously assessed with respect to both spouses for such taxable year.
2. All amounts shown as the tax by the spouses upon their joint return for such taxable year.
3. Any amount determined, at the time of the filing of the separate returns, as a deficiency with respect to the spouses for such taxable year, if, prior to such a filing, a notice of proposed deficiency under section 42‑1108 has been mailed.
C. Separate returns may not be filed under subsection A of this section:
1. After the expiration of four years from the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted for the filing of the joint return.
2. After there has been mailed to the spouses, with respect to such taxable year, a notice of deficiency under section 42‑1108, or if the spouses, as to such notice, appeal to the department under section 42‑1251, or appeal to the state board under section 42‑1253.
3. After the spouses have commenced a suit in court for the recovery of any part of the tax paid for the taxable year with respect to the joint return.
4. After the spouses have entered into a closing agreement under section 42-1113, with respect to such taxable year as to the tax payable by the spouse under their joint return.
D. If separate returns are made under subsection A of this section, any election, other than the election to file the joint return, made by the spouses in their joint return for such taxable year with respect to the treatment of any income, deduction or credit shall not be changed in the making of the separate returns where such election would have been irrevocable if the separate returns had not been filed.
E. If separate returns are made under subsection A of this section after the death of either spouse, such return with respect to the decedent may be made only by the decedent's personal representative.
F. Where the aggregate amount of the taxes shown by the spouses on their separate returns filed pursuant to subsection A of this section exceeds the tax shown on their joint return:
1. If any of such excess is attributable to negligence or intentional disregard of rules and regulations of the department, but without intent to defraud, at the time of making the joint return, then five per cent percent of the total amount of such excess on each return shall be assessed, collected and paid as if it were a deficiency.
2. If any part of such excess is attributable to fraud with intent to evade tax at the time of the making of the joint return, then fifty per cent percent of the total amount of such excess shall be so assessed, collected and paid, in lieu of the fifty per cent percent addition to the tax provided in section 42‑1125.
G. For the purposes of section 42-1104, relating to periods of limitations upon assessment and collection, and for the purposes of section 42‑1125, subsection A, relating to delinquent returns, separate returns made under this section shall be deemed to have been filed on the date on which the joint return was filed.
H. For the purposes of section 42‑1118, relating to refunds and credits, separate returns made under this section shall be deemed to have been filed on the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted for the filing of the joint return.
I. If separate returns are made under subsection A of this section, the period of limitations provided in section 42-1104 on the making of assessments and collecting taxes shall, with respect to such returns, include one year immediately after the date of filing of such separate returns, computed without regard to the provisions of subsection G of this section.
J. For the purposes of section 42-1125, relating to penalties in the case of fraudulent returns, the term "return" includes a joint return filed by spouses with respect to a taxable year for which separate returns are made under subsection A of this section after the filing of such joint return.
Sec. 38. Section 43-311, Arizona Revised Statutes, is amended to read:
43-311. Joint return after filing separate return
A. If an individual has filed a separate return for a taxable year for which the individual and spouse could have filed a joint return under section 43-309, and the time prescribed by this title for filing the return for such taxable year has expired, such individual and spouse may nevertheless make a joint return for such taxable year. A joint return filed by the husband and wife married couple for such taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of either spouse for such taxable year, shall be taken into account in determining the extent to which the tax based upon on the joint return has been paid.
B. A joint return may be made under subsection A of this section only if there is paid in full at or before the time of the filing of the joint return:
1. All amounts previously assessed with respect to either spouse for such taxable year.
2. All amounts shown as the tax by either spouse upon his or her on that spouse's separate return for such taxable year.
3. Any amount determined, at the time of the filing of the joint return, as a proposed deficiency with respect to either spouse for such taxable year if, prior to such filing, a notice under section 42-1108 of such proposed deficiency has been mailed.
C. A joint return may not be made under subsection A of this section:
1. After the expiration of four years from the last date prescribed by law for filing the return for such taxable year, determined without regard to any extension of time granted to either spouse.
2. After there has been mailed to either spouse, with respect to such taxable year, a notice of deficiency under section 42-1108, if the spouse, as to such notice, appeals to the department under section 42-1251, or appeals to the state board under section 42-1253.
3. After either spouse has commenced a suit in any court for the recovery of any part of the tax for such taxable year.
4. After either spouse has entered into a closing agreement under section 42-1113, with respect to such taxable year.
D. If a joint return is made under subsection A of this section, any election, other than the election to file a separate return, made by either spouse in the separate return for such taxable year with respect to the treatment of any income, deduction or credit of such spouse shall not be changed in the making of the joint return where such election would have been irrevocable if the joint return had not been made.
E. If a joint return is made under subsection A of this section after the death of either spouse, such return with respect to the decedent may be made only by the decedent's personal representative.
F. Where the amount shown as the tax by the husband and wife married couple on a joint return made under subsection A of this section exceeds the aggregate of the amounts shown as the tax upon on the separate return of each spouse:
1. If any part of such excess is attributable to negligence or intentional disregard of rules and regulations, but without intent to defraud, at the time of the making of such separate return, then five per cent percent of the total amount of such excess shall be assessed, collected and paid as if it were a deficiency.
2. If any part of such excess is attributable to fraud with intent to evade tax at the time of the making of such separate return, then fifty per cent percent of the total amount of such excess shall be so assessed, collected and paid in lieu of the fifty per cent percent addition to the tax provided in section 42‑1125.
G. For the purposes of section 42-1104, relating to periods of limitations upon assessment and collection, and for the purposes of section 42‑1125, subsection A, relating to delinquent returns, a joint return made under this section shall be deemed to have been filed:
1. Where both spouses filed separate returns prior to making the joint return, on the date the last separate return was filed, but not earlier than the last date prescribed by this title for filing the return of either spouse.
2. Where one spouse filed a separate return prior to the making of the joint return, and the other spouse had less than one thousand dollars of taxable income and less than five thousand dollars of gross income for such taxable year, on the date of the filing of such separate return, but not earlier than the last date prescribed by law for the filing of such separate return.
3. Where only one spouse filed a separate return prior to the making of a joint return and the other spouse had a taxable income of more than one thousand dollars or a gross income of more than five thousand dollars for such taxable year, on the date of the filing of such joint return.
H. For the purposes of section 42-1118, relating to refunds and credits, a joint return made under this section shall be deemed to have been filed on the last date prescribed by this title for filing the return for such taxable year, determined without regard to any extension of time granted to either spouse.
I. If a joint return is made under subsection A of this section, the period of limitations provided in section 42-1104 on the making of assessments and collecting taxes shall with respect to such return include one year immediately after the date of the filing of such joint return, computed without regard to the provisions of subsection G of this section.
J. For the purposes of section 42-1125, relating to penalties in the case of fraudulent returns, the term "return" includes a separate return filed by a spouse with respect to a taxable year for which a joint return is made under subsection A of this section after the filing of such separate return.
Sec. 39. Section 43-432, Arizona Revised Statutes, is amended to read:
43-432. Refund for excess withholding
A. When the total amount withheld under section 43‑401 exceeds the amount of the tax on the employee's entire taxable income as computed under this title, the department shall, after auditing the annual return filed by the employee in accordance with chapter 3 of this title, and without requiring a filing of a refund claim as provided in section 42‑1106, subsection A, refund the amount of the excess withheld, subject to setoff for debts pursuant to section 42-1122. Failure of the department to make such refund shall not limit the right of the taxpayer to file a claim for a refund as provided in chapter 6, article 1 of this title. If the excess tax withheld is less than one dollar, no refund shall be made unless specifically requested by the taxpayer at the time such return is filed. In no event shall any excess be allowed as a credit against any tax accruing on a return filed for a year subsequent to the year during which such excess was withheld, the provisions of chapter 6 of this title notwithstanding.
B. The department may make separate refunds of withheld taxes upon on request by a husband or wife spouse who has filed a joint return, the refund payable to each spouse being proportioned to the gross earnings of each shown by the information returns filed by the employer or otherwise shown to the satisfaction of the department. If a taxpayer entitled to a refund under this subsection dies, the department of revenue may certify to the department of administration that the refund be made to the taxpayer's duly appointed executor, administrator or personal representative.
Sec. 40. Section 43-562, Arizona Revised Statutes, is amended to read:
43-562. Spousal liability for tax
The spouse who controls the disposition of or who receives or spends community income as well as the spouse who is taxable on such that income is liable for the payment of the taxes imposed by this title on such that income. If a joint return is filed, the liability for the tax on the aggregate income is joint and several.
Sec. 41. Section 43-943, Arizona Revised Statutes, is amended to read:
43-943. Allocation in the case of a married couple
If husband and wife file each spouse files a separate returns return, the department may distribute, apportion or allocate gross income between the spouses, if it is determined that such distribution, apportionment or allocation is necessary in order to reflect the proper income of the spouses.
Sec. 42. Section 43-1022, Arizona Revised Statutes, is amended to read:
43-1022. Subtractions from Arizona gross income
In computing Arizona adjusted gross income, the following amounts shall be subtracted from Arizona gross income:
1. The amount of exemptions allowed by section 43‑1023.
2. Benefits, annuities and pensions in an amount totaling not more than two thousand five hundred dollars received from one or more of the following:
(a) The United States government service retirement and disability fund, retired or retainer pay of the uniformed services of the United States, the United States foreign service retirement and disability system and any other retirement system or plan established by federal law.
(b) The Arizona state retirement system, the corrections officer retirement plan, the public safety personnel retirement system, the elected officials' retirement plan, an optional retirement program established by the Arizona board of regents under section 15‑1628, an optional retirement program established by a community college district board under section 15‑1451 or a retirement plan established for employees of a county, city or town in this state.
3. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43‑1333 decreases the beneficiary's Arizona gross income.
4. Interest income received on obligations of the United States, less any interest on indebtedness, or other related expenses, and deducted in arriving at Arizona gross income, which were incurred or continued to purchase or carry such obligations.
5. The excess of a partner's share of income required to be included under section 702(a)(8) of the internal revenue code over the income required to be included under chapter 14, article 2 of this title.
6. The excess of a partner's share of partnership losses determined pursuant to chapter 14, article 2 of this title over the losses allowable under section 702(a)(8) of the internal revenue code.
7. The amount by which the adjusted basis of property described in this paragraph and computed pursuant to this title and the income tax act of 1954, as amended, exceeds the adjusted basis of such property computed pursuant to the internal revenue code. This paragraph shall apply to all property that is held for the production of income and that is sold or otherwise disposed of during the taxable year other than depreciable property used in a trade or business.
8. The amount allowed by section 43‑1025 for contributions during the taxable year of agricultural crops to charitable organizations.
9. The portion of any wages or salaries paid or incurred by the taxpayer for the taxable year that is equal to the amount of the federal work opportunity credit, the empowerment zone employment credit, the credit for employer paid social security taxes on employee cash tips and the Indian employment credit that the taxpayer received under sections 45A, 45B, 51(a) and 1396 of the internal revenue code.
10. The amount of prizes or winnings less than five thousand dollars in a single taxable year from any of the state lotteries established and operated pursuant to title 5, chapter 5.1, article 1.
11. The amount of exploration expenses that is determined pursuant to section 617 of the internal revenue code, that has been deferred in a taxable year ending before January 1, 1990 and for which a subtraction has not previously been made. The subtraction shall be made on a ratable basis as the units of produced ores or minerals discovered or explored as a result of this exploration are sold.
12. The amount included in federal adjusted gross income pursuant to section 86 of the internal revenue code, relating to taxation of social security and railroad retirement benefits.
13. To the extent not already excluded from Arizona gross income under the internal revenue code, compensation received for active service as a member of the reserves, the national guard or the armed forces of the United States, including compensation for service in a combat zone as determined under section 112 of the internal revenue code.
14. The amount of unreimbursed medical and hospital costs, adoption counseling, legal and agency fees and other nonrecurring costs of adoption not to exceed three thousand dollars. In the case of a husband and wife each spouse who file files a separate returns return, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife spouses shall not exceed three thousand dollars. The subtraction under this paragraph may be taken for the costs that are described in this paragraph and that are incurred in prior years, but the subtraction may be taken only in the year during which the final adoption order is granted.
15. The amount authorized by section 43‑1027 for the taxable year relating to qualified wood stoves, wood fireplaces or gas fired fireplaces.
16. The amount by which a net operating loss carryover or capital loss carryover allowable pursuant to section 43‑1029, subsection F exceeds the net operating loss carryover or capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code.
17. Any amount of qualified educational expenses that is distributed from a qualified state tuition program determined pursuant to section 529 of the internal revenue code and that is included in income in computing federal adjusted gross income.
18. Any item of income resulting from an installment sale that has been properly subjected to income tax in another state in a previous taxable year and that is included in Arizona gross income in the current taxable year.
19. The amount authorized by section 43‑1030 relating to holocaust survivors.
20. For property placed in service:
(a) In taxable years beginning before December 31, 2012, an amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year computed as if the election described in section 168(k)(2)(D)(iii) of the internal revenue code had been made for each applicable class of property in the year the property was placed in service.
(b) In taxable years beginning from and after December 31, 2012 through December 31, 2013, an amount determined in the year the asset was placed in service based on the calculation in subdivision (a) of this paragraph. In the first taxable year beginning from and after December 31, 2013, the taxpayer may elect to subtract the amount necessary to make the depreciation claimed to date for the purposes of this title the same as it would have been if subdivision (c) of this paragraph had applied for the entire time the asset was in service. Subdivision (c) of this paragraph applies for the remainder of the asset's life. If the taxpayer does not make the election under this subdivision, subdivision (a) of this paragraph applies for the remainder of the asset's life.
(c) In taxable years
beginning from and after December 31, 2013, an amount equal to the depreciation
allowable pursuant to section 167(a) of the internal revenue code for the
taxable year as computed as if the additional allowance for depreciation had
been ten per cent percent of the amount allowed
pursuant to section 168(k) of the internal revenue code.
21. With respect to property that is sold or otherwise disposed of during the taxable year by a taxpayer that complied with section 43‑1021, paragraph 16 with respect to that property, the amount of depreciation that has been allowed pursuant to section 167(a) of the internal revenue code to the extent that the amount has not already reduced Arizona taxable income in the current or prior taxable years.
22. With respect to property for which an adjustment was made under section 43‑1021, paragraph 17, an amount equal to one‑fifth of the amount of the adjustment pursuant to section 43‑1021, paragraph 17 in the year in which the amount was adjusted under section 43‑1021, paragraph 17 and in each of the following four years.
23. The amount contributed during the taxable year to college savings plans established pursuant to section 529 of the internal revenue code to the extent that the contributions were not deducted in computing federal adjusted gross income. The amount subtracted shall not exceed:
(a) Two thousand dollars for a single individual or a head of household.
(b) Four thousand dollars for a married couple filing a joint return. In the case of a husband and wife each spouse who file files a separate returns return, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife spouses shall not exceed four thousand dollars.
24. The amount of any original issue discount that was deferred and not allowed to be deducted in computing federal adjusted gross income in the current taxable year pursuant to section 108(i) of the internal revenue code as added by section 1231 of the American recovery and reinvestment act of 2009 (P.L. 111‑5).
25. The amount of previously deferred discharge of indebtedness income that is included in the computation of federal adjusted gross income in the current taxable year pursuant to section 108(i) of the internal revenue code as added by section 1231 of the American recovery and reinvestment act of 2009 (P.L. 111-5), to the extent that the amount was previously added to Arizona gross income pursuant to section 43‑1021, paragraph 19.
26. The portion of the net operating loss carryforward that would have been allowed as a deduction in the current year pursuant to section 172 of the internal revenue code if the election described in section 172(b)(1)(H) of the internal revenue code had not been made in the year of the loss that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. This subtraction only applies to taxpayers who made an election under section 172(b)(1)(H) of the internal revenue code as amended by section 1211 of the American recovery and reinvestment act of 2009 (P.L. 111‑5) or as amended by section 13 of the worker, homeownership, and business assistance act of 2009 (P.L. 111‑92).
27. For taxable years beginning from and after December 31, 2013, the amount of any net capital gain included in federal adjusted gross income for the taxable year derived from investment in a qualified small business as determined by the Arizona commerce authority pursuant to section 41‑1518.
28. An amount of any net long-term capital gain included in federal adjusted gross income for the taxable year that is derived from an investment in an asset acquired after December 31, 2011, as follows:
(a) For taxable years beginning from and after December 31, 2012 through December 31, 2013, ten per cent percent of the net long-term capital gain included in federal adjusted gross income.
(b) For taxable years beginning from and after December 31, 2013 through December 31, 2014, twenty per cent percent of the net long-term capital gain included in federal adjusted gross income.
(c) For taxable years beginning from and after December 31, 2014, twenty-five per cent percent of the net long-term capital gain included in federal adjusted gross income.
For the purposes of this paragraph, a transferee that receives an asset by gift or at the death of a transferor is considered to have acquired the asset when the asset was acquired by the transferor. If the date an asset is acquired cannot be verified, a subtraction under this paragraph is not allowed.
29. If an individual is not claiming itemized deductions pursuant to section 43‑1042, the amount of premium costs for long-term care insurance, as defined in section 20‑1691.
30. With respect to a long-term health care savings account established pursuant to section 43‑1032, the amount deposited by the taxpayer in the account during the taxable year to the extent that the taxpayer's contributions are included in the taxpayer's federal adjusted gross income.
Sec. 43. Section 43-1041, Arizona Revised Statutes, is amended to read:
43-1041. Optional standard deduction
A. A taxpayer may elect to take a standard deduction as follows:
1. In the case of a single person or a married person filing separately, the standard deduction shall be four thousand fifty dollars, subject to subsection G of this section.
2. In the case of a married couple filing a joint return or a single person who is a head of a household, the standard deduction shall be eight thousand one hundred dollars, subject to subsection G of this section.
B. The standard deduction provided for in subsection A of this section shall be in lieu of all itemized deductions allowed by section 43‑1042, which are to be subtracted from Arizona adjusted gross income in computing taxable income, but not in lieu of the personal exemption allowed by section 43‑1043.
C. The standard deduction shall be allowed if the taxpayer so elects, and the department shall by rule prescribe the manner of signifying such election in the return.
D. In the case of a husband and wife married couple, the standard deduction provided for in subsection A of this section shall not be allowed to either if the taxable income of one of the spouses is determined without regard to the standard deduction.
E. The standard deduction provided for by subsection A of this section shall not be allowed in the case of a taxable year of less than twelve months on account of a change in the accounting period.
F. Under rules adopted by the department, a change of an election to take, or not to take, the standard deduction for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding, for the purposes of subsection D of this section, to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such rules, both paragraphs 1 and 2 of this subsection apply:
1. The spouse makes a change of election with respect to the standard deduction for the taxable year covered in such separate return consistent with the change of election sought by the taxpayer.
2. The taxpayer and spouse consent in writing to the assessment, within such period as may be agreed upon on with the department, of any deficiency, to the extent attributable to such change of election, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law.
G. For each taxable year beginning on or after January 1, the department shall adjust the dollar amounts prescribed by subsection A, paragraphs 1 and 2 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The designated dollar amounts shall not be revised below the amounts allowed by the standard deduction in the prior taxable year.
Sec. 44. Section 43-1043, Arizona Revised Statutes, is amended to read:
43-1043. Personal exemptions
There shall be allowed as an exemption, in the case of:
1. A single individual, a personal exemption of two thousand one hundred dollars.
2. A head of a household or a married individual, a personal exemption of four thousand two hundred dollars under this paragraph. A husband and wife married couple shall receive but one personal exemption of four thousand two hundred dollars. If the husband and wife make each spouse makes a separate returns return, the personal exemption may be taken by either spouse or divided between them.
3. A married couple who claim at least one dependent, an exemption of six thousand three hundred dollars. If the husband and wife make each spouse makes a separate returns return, the personal exemption may be taken by either spouse or divided between them. An exemption under this paragraph is in lieu of the exemption under paragraph 2 of this section.
Sec. 45. Section 43-1083, Arizona Revised Statutes, is amended to read:
43-1083. Credit for solar energy devices
A. A credit is allowed against the taxes imposed by this title for each resident who is not a dependent of another taxpayer for installing a solar energy device, as defined in section 42-5001, during the taxable year in the taxpayer's residence located in this state. The credit is equal to twenty-five per cent percent of the cost of the device.
B. The maximum credit in a taxable year may not exceed one thousand dollars. The person who provides the solar energy device shall furnish the taxpayer with an accounting of the cost to the taxpayer. A taxpayer may claim the credit under this section only once in a tax year and may not cumulate over different tax years tax credits under this section exceeding, in the aggregate, one thousand dollars for the same residence.
C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.
D. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.
E. The credit allowed under this section is in lieu of any allowance for state tax purposes for exhaustion, wear and tear of the solar energy device under section 167 of the internal revenue code.
F. To qualify for the credit under this section, the solar energy device and its installation shall meet the requirements of title 44, chapter 11, article 11.
G. A solar hot water heater plumbing stub out that was installed by the builder of a house or dwelling unit before title was conveyed to the taxpayer does not qualify for a credit under this section, but the taxpayer may claim a credit for the device under section 43‑1090 or 43‑1176 under the circumstances, conditions and limitations prescribed by section 43‑1090, subsection C or section 43-1176, subsection C, as applicable.
Sec. 46. Section 43-1086, Arizona Revised Statutes, is amended to read:
43-1086. Credit for donation to the military family relief fund
A. For taxable years beginning from and after December 31, 2007 through December 31, 2018, a credit is allowed against the taxes imposed by this title for cash contributions made by a taxpayer during the taxable year to the military family relief fund established by section 41‑608.04. The amount of the credit is the lowest of the following amounts, as applicable:
1. The total amount of contributions to the fund by the taxpayer during the taxable year.
2. Two hundred dollars of contributions during the taxable year by a taxpayer filing as a single individual or a head of household.
3. Four hundred dollars of contributions during the taxable year by a married couple filing a joint return.
4. The taxpayer's tax liability for the taxable year.
B. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed on a joint return.
Sec. 47. Section 43-1088, Arizona Revised Statutes, is amended to read:
43-1088. Credit for contribution to qualifying charitable organizations; definitions
A. Except as provided in subsection B of this section, a credit is allowed against the taxes imposed by this title for voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G during the taxable year to a qualifying charitable organization not to exceed:
1. Two hundred dollars in any taxable year for a single individual or a head of household.
2. Four hundred dollars in any taxable year for a married couple filing a joint return.
B. If the voluntary cash contribution by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G is to a qualifying foster care charitable organization, the credit shall not exceed:
1. Four hundred dollars in any taxable year for a single individual or a head of household.
2. Eight hundred dollars in any taxable year for a married couple filing a joint return.
C. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one‑half of the tax credit that would have been allowed for a joint return.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title for not more than five consecutive taxable years' income tax liability.
E. The credit allowed by this section is in lieu of a deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
F. Taxpayers taking a credit authorized by this section shall provide the name of the qualifying charitable organization and the amount of the contribution to the department of revenue on forms provided by the department.
G. A qualifying charitable organization shall provide the department of revenue with a written certification that it meets all criteria to be considered a qualifying charitable organization. The organization shall also notify the department of any changes that may affect the qualifications under this section.
H. The charitable organization's written certification must be signed by an officer of the organization under penalty of perjury. The written certification must include the following:
1. Verification of the organization's status under section 501(c)(3) of the internal revenue code or verification that the organization is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code section 9901.
2. Financial data indicating the organization's budget for the organization's prior operating year and the amount of that budget spent on services to residents of this state who either:
(a) Receive temporary assistance for needy families benefits.
(b) Are low‑income residents of this state.
(c) Are children who have a chronic illness or physical disability.
3. A statement that the organization plans to continue spending at least fifty percent of its budget on services to residents of this state who receive temporary assistance for needy families benefits, who are low‑income residents of this state or who are children who have a chronic illness or physical disability.
4. A statement that the organization does not provide, pay for or provide coverage of abortions and does not financially support any other entity that provides, pays for or provides coverage of abortions.
I. The department shall review each written certification and determine whether the organization meets all the criteria to be considered a qualifying charitable organization and notify the organization of its determination. The department may also periodically request recertification from the organization. The department shall compile and make available to the public a list of the qualifying charitable organizations.
J. For the purposes of this section:
1. "Children who have a chronic illness or physical disability" has the same meaning prescribed in section 36‑260.
2. "Low‑income residents" means persons whose household income is less than one hundred fifty percent of the federal poverty level.
3. "Qualifying charitable organization" means a charitable organization that is exempt from federal income taxation under section 501(c)(3) of the internal revenue code or is a designated community action agency that receives community services block grant program monies pursuant to 42 United States Code section 9901. The organization must spend at least fifty percent of its budget on services to residents of this state who receive temporary assistance for needy families benefits or low‑income residents of this state and their households or to children who have a chronic illness or physical disability who are residents of this state. Taxpayers choosing to make donations through an umbrella charitable organization that collects donations on behalf of member charities shall designate that the donation be directed to a member charitable organization that would qualify under this section on a stand‑alone basis. Qualifying charitable organization does not include any entity that provides, pays for or provides coverage of abortions or that financially supports any other entity that provides, pays for or provides coverage of abortions.
4. "Qualifying foster care charitable organization" means a qualifying charitable organization that each operating year provides services to at least two hundred qualified individuals in this state and spends at least fifty percent of its budget on services to qualified individuals in this state. For the purposes of this paragraph, "qualified individual" means a foster child as defined in section 8‑501 or a person who is under twenty‑one years of age and who is participating in a transitional independent living program as prescribed by section 8‑521.01.
5. "Services" means cash assistance, medical care, child care, food, clothing, shelter, job placement and job training services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state.
Sec. 48. Section 43-1089, Arizona Revised Statutes, is amended to read:
43-1089. Credit for contributions to school tuition organization
A. A credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G during the taxable year to a school tuition organization that is certified pursuant to chapter 16 of this title at the time of donation. Except as provided by subsection C of this section, the amount of the credit shall not exceed:
1. Five hundred dollars in any taxable year for a single individual or a head of household.
2. One thousand dollars in any taxable year for a married couple filing a joint return.
B. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one‑half of the tax credit that would have been allowed for a joint return.
C. For each taxable year beginning on or after January 1, the department shall adjust the dollar amounts prescribed by subsection A, paragraphs 1 and 2 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States bureau of labor statistics, except that the dollar amounts shall not be revised downward below the amounts allowed in the prior taxable year. The revised dollar amounts shall be raised to the nearest whole dollar.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
F. The tax credit is not allowed if the taxpayer designates the taxpayer's contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer or if the taxpayer designates a student beneficiary as a condition of the taxpayer's contribution to the school tuition organization. The tax credit is not allowed if the taxpayer, with the intent to benefit the taxpayer's dependent, agrees with one or more other taxpayers to designate each taxpayer's contribution to the school tuition organization for the direct benefit of the other taxpayer's dependent.
G. For the purposes of this section, a contribution, for which a credit is claimed, that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.
Sec. 49. Section 43-1089.01, Arizona Revised Statutes, is amended to read:
43-1089.01. Tax credit; public school fees and contributions; definitions
A. A credit is allowed against the taxes imposed by this title for the amount of any fees paid or cash contributions made by a taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection G during the taxable year to a public school located in this state for the support of fees paid for standardized testing fees for college credit or readiness offered by a widely recognized and accepted educational testing organization, the career and technical education industry certification assessment, or preparation courses and materials for standardized testing, or contributions for the support of extracurricular activities or character education programs of the public school, but not exceeding:
1. Two hundred dollars for a single individual or a head of household.
2. Three hundred dollars in taxable year 2005 for a married couple filing a joint return.
3. Four hundred dollars in taxable year 2006 and any subsequent taxable year for a married couple filing a joint return.
B. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one‑half of the tax credit that would have been allowed for a joint return.
C. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. The site council of the public school that receives contributions that are not designated for a specific purpose shall determine how the contributions are used at the school site. If a charter school does not have a site council, the principal, director or chief administrator of the charter school shall determine how the contributions that are not designated for a specific purpose are used at the school site. If at the end of a fiscal year a public school has unspent contributions that were previously designated for a specific purpose or program and that purpose or program has been discontinued or has not been used for two consecutive fiscal years, these contributions shall be considered undesignated in the following fiscal year for the purposes of this subsection.
F. A public school that receives fees or a cash contribution pursuant to subsection A of this section shall report to the department, in a form prescribed by the department, by February 28 of each year the following information:
1. The total number of fee and cash contribution payments received during the previous calendar year.
2. The total dollar amount of fees and contributions received during the previous calendar year.
3. The total dollar amount of fees and contributions spent by the school during the previous calendar year, categorized by specific standardized testing, preparation courses and materials for standardized testing, extracurricular activity or character education program.
G. For the purposes of this section, a contribution for which a credit is claimed and that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.
H. For the purposes of this section:
1. "Career and technical education industry certification assessment" means an assessment for career and technical preparation programs for pupils.
2. "Character education programs" means a program described in section 15‑719.
3. "Extracurricular activities" means school‑sponsored activities that require enrolled students to pay a fee in order to participate, including fees for:
(a) Band uniforms.
(b) Equipment or uniforms for varsity athletic activities.
(c) Scientific laboratory materials.
(d) In‑state or out‑of‑state trips that are solely for competitive events. Extracurricular activities do not include any senior trips or events that are recreational, amusement or tourist activities.
4. "Public school" means a school that is part of a school district, a joint technical education district or a charter school.
5. "Standardized testing for college credit or readiness" includes the SAT, PSAT, ACT, advanced placement and international baccalaureate diploma tests and other similar tests.
6. "Widely recognized and accepted educational testing organization" means the college board, the ACT, the international baccalaureate and other organizations that are widely recognized and accepted by colleges and universities in the United States and that offer college credit and readiness examinations.
Sec. 50. Section 43-1089.02, Arizona Revised Statutes, is amended to read:
43-1089.02. Credit for donation of school site
A. A credit is allowed against the taxes imposed by this title in the amount of thirty per cent percent of the value of real property and improvements donated by the taxpayer to a school district or a charter school for use as a school or as a site for the construction of a school.
B. To qualify for the credit:
1. The real property and improvements must be located in this state.
2. The real property and improvements must be conveyed unencumbered and in fee simple, except that:
(a) The conveyance must include as a deed restriction and protective covenant running with title to the land the requirement that as long as the donee holds title to the property the property shall only be used as a school or as a site for the construction of a school, subject to subsection I or J of this section.
(b) In the case of a donation to a charter school, the donor shall record a lien on the property as provided by subsection J, paragraph 3 of this section.
3. The conveyance shall not violate section 15‑341, subsection D or section 15‑183, subsection U.
C. For the purposes of this section, the value of the donated property is the property's fair market value as determined in an appraisal as defined in section 32‑3601 that is conducted by an independent party and that is paid for by the donee.
D. If the property is donated by co-owners, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, each donor may claim only the pro rata share of the allowable credit under this section based on the ownership interest. If the property is donated by a husband and wife both spouses who file separate returns for a taxable year in which they could have filed a joint return, they may determine between them the share of the credit each will claim. The total of the credits allowed all co-owner donors may not exceed the allowable credit.
E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
F. The credit under this section is in lieu of any deduction pursuant to section 170 of the internal revenue code taken for state tax purposes.
G. On written request by the donee, the donor shall disclose in writing to the donee the amount of the credit allowed pursuant to this section with respect to the property received by the donee.
H. A school district or charter school may refuse the donation of any property for purposes of this section.
I. If the donee is a school district:
1. The district shall notify the school facilities board established by section 15‑2001 and furnish the board with any information the board requests regarding the donation. A school district shall not accept a donation pursuant to this section unless the school facilities board has reviewed the proposed donation and has issued a written determination that the real property and improvements are suitable as a school site or as a school. The school facilities board shall issue a determination that the real property and improvements are not suitable as a school site or as a school if the expenses that would be necessary to make the property suitable as a school site or as a school exceed the value of the proposed donation.
2. The district may sell any donated property pursuant to section 15‑342, but the proceeds from the sale shall only be used for capital projects. The school facilities board shall withhold an amount that corresponds to the amount of the proceeds from any monies that would otherwise be due the school district from the school facilities board pursuant to section 15‑2041.
J. If the donee is a charter school:
1. The charter school shall:
(a) Immediately notify the sponsor of the charter school by certified mail and shall furnish the sponsor with any information requested by the sponsor regarding the donation during the ten year ten‑year period after the conveyance is recorded.
(b) Notify the sponsor by certified mail, and the sponsor shall notify the state treasurer, in the event of the charter school's financial failure or if the charter school:
(i) Fails to establish a charter school on the property within forty‑eight months after the conveyance is recorded.
(ii) Fails to provide instruction to pupils on the property within forty-eight months after the conveyance is recorded.
(iii) Establishes a charter school on the property but subsequently ceases to operate the charter school on the property for twenty‑four consecutive months or fails to provide instruction to pupils on the property for twenty-four consecutive months.
2. The charter school, or a successor in interest, shall pay to the state treasurer the amount of the credit allowed under this section, or if that amount is unknown, the amount of the allowable credit under this section, if any of the circumstances listed in paragraph 1, subdivision (b) of this subsection occurs. If the amount is not paid within one year after the treasurer receives notice under paragraph 1, subdivision (b) of this subsection, a penalty and interest shall be added, determined pursuant to title 42, chapter 1, article 3.
3. A tax credit under this section constitutes a lien on the property, which the donor must record along with the title to the property to qualify for the credit. The amount of the lien is the amount of the allowable credit under this section, adjusted according to the average change in the GDP price deflator, as defined in section 41‑563, for each calendar year since the donation, but not exceeding twelve and one-half per cent percent more than the allowable credit. The lien is subordinate to any liens securing the financing of the school construction. The lien is extinguished on the earliest of the following:
(a) Ten years after the lien is recorded. After that date, the charter school, or a successor in interest, may request the state treasurer to release the lien.
(b) On payment to the state treasurer by the donee charter school, or by a successor in interest, of the amount of the allowable credit under this section, either voluntarily or as required by paragraph 2 of this subsection. After the required amount is paid, the charter school or successor in interest may request the state treasurer to release the lien.
(c) On conveyance of fee simple title to the property to a school district.
(d) On enforcement and satisfaction of the lien pursuant to paragraph 4 of this subsection.
4. The state treasurer shall enforce the lien by foreclosure within one year after receiving notice of any of the circumstances described in paragraph 1, subdivision (b) of this subsection.
5. Subject to paragraphs 3 and 4 of this subsection, the charter school may sell any donated property.
Sec. 51. Section 43-1089.03, Arizona Revised Statutes, is amended to read:
43-1089.03. Credit for contributions to certified school tuition organization
A. A credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43‑401, subsection I G during the taxable year to a school tuition organization that is certified pursuant to chapter 16 of this title at the time of donation. Except as provided by subsection C of this section, the amount of the credit shall not exceed:
1. Five hundred dollars in any taxable year for a single individual or a head of household.
2. One thousand dollars in any taxable year for a married couple filing a joint return.
B. A husband and wife Each spouse who file files a separate returns return for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.
C. For each taxable year beginning on or after January 1, the department shall adjust the dollar amounts prescribed by subsection A, paragraphs 1 and 2 of this section according to the average annual change in the metropolitan phoenix consumer price index published by the United States bureau of labor statistics, except that the dollar amounts shall not be revised downward below the amounts allowed in the prior taxable year. The revised dollar amounts shall be raised to the nearest whole dollar.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
E. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
F. The tax credit is not allowed if the taxpayer designates the taxpayer's contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer or if the taxpayer designates a student beneficiary as a condition of the taxpayer's contribution to the school tuition organization. The tax credit is not allowed if the taxpayer, with the intent to benefit the taxpayer's dependent, agrees with one or more other taxpayers to designate each taxpayer's contribution to the school tuition organization for the direct benefit of the other taxpayer's dependent.
G. For the purposes of this section, a contribution, for which a credit is claimed, that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.
H. A taxpayer may not claim a credit under this section and also under section 43‑1089 with respect to the same contribution. If a taxpayer's contribution to a school tuition organization exceeds the amount of the credit allowed under section 43‑1089, a taxpayer may claim a credit under this section and also under section 43‑1089. If a taxpayer's contribution to a school tuition organization does not exceed the amount of the credit allowed by section 43‑1089, the contribution is considered to have been made pursuant to section 43‑1089.
Sec. 52. Legislative intent
This act replaces the term "husband and wife" in each of the statutes in which it appears in the Arizona Revised Statutes. It is the intent of the legislature that agencies, boards, commissions, department, officers and other administrative units of this state make similar changes in their respective administrative rules.