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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
contracts; licensure requirements; exemption; exclusion
Purpose
Subjects a person acting under private postsecondary education regulations to state law relating to licensure, certification, registration or other authorization.
Background
A profession or occupation must be regulated by the state only if: 1) an unregulated practice can clearly harm or endanger the public health, safety or welfare; 2) the public benefit of the regulation clearly exceeds the costs imposed on consumers, businesses and individuals; 3) the public needs and can foreseeably benefit from an assurance of initial and continuing professional ability; and 4) private certification or other alternatives cannot effectively protect the public (A.R.S. § 32-4401).
Laws 2019, Chapter 285 exempts, from state law relating to licensure, certification, registration or other authorization, a person acting under statute relating to: 1) banks and financial institutions, except mortgage brokers, mortgage bankers, loan originators, balloon payments and finance charges; 2) cities and towns; 3) corporations and associations; 4) counties; 5) labor; 6) collection agencies; 7) private postsecondary institutions; 8) art therapists; and 9) trade and commerce, except sales finance companies and telephone solicitations.
To qualify for the exemption a person must be a party to a contract between two or more private parties. The contract must: 1) be substantially delivered electronically; 2) specify the laws from which the person is exempt; 3) be lawful; and 4) not exceed $6,000 per transaction and $150,000 in total aggregate profit in the previous calendar year. The exemption may not materially affect a third party or harm or damage public health and safety.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Removes the exemption, from state laws relating to licensure, certification, registration or other authorization, for a person acting under the private postsecondary statute.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2020
JP/gs