SB1559 - 561R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 10-122, Arizona Revised Statutes, is amended to read:

START_STATUTE10-122. Filing, service and copying fees; expedited report filing and access; same day and next day services; posted wait times; advance monies; exception; definition

A. The commission shall collect and deposit, pursuant to sections 35-146 and 35-147, the following nonrefundable fees when the documents described in this subsection are delivered to the commission:

Document Fee

1. Articles of incorporation $50

2. Application for use of indistinguishable name 10

3. Application for reserved name 10

4. Notice of transfer of reserved name 10

5. Application for registered name 10

6. Application for renewal of registered name 10

7. Agent's statement of resignation 10

8. Amendment of articles of incorporation 25

9. Restatement of articles of incorporation with

amendment of articles 25

10. Statement of merger, interest exchange,

conversion, domestication or division if the

entity responsible for filing the statement

is a corporation 100

11. Articles of dissolution 25

12. Articles of revocation of dissolution 25

13. Application for reinstatement following

administrative dissolution, in addition

to other fees and penalties due 100

14. Application for authority 150

15. Application for withdrawal 25

16. Annual report 45

17. Articles of correction 25

18. Application for certificate of good standing 10

19. Any other document required or permitted

to be filed by chapters 1 through 17

of this title 25

B. The commission shall collect a nonrefundable fee of twenty-five dollars $25 each time process is served on it under chapters 1 through 17 of this title. The party to a proceeding causing service of process is entitled to recover this fee as costs if the party prevails in the proceeding.

C. The commission shall charge and collect a reasonable fee for copying documents on request, provided the fee does not exceed the cost of providing the service as determined by the commission. The commission shall also charge a reasonable fee for certifying the copy of a filed document, provided the fee does not exceed the cost of providing the service as determined by the commission.

D. A penalty of one hundred dollars $100 is payable in addition to other fees accrues and is payable if a foreign corporation fails to file an amendment, restated articles that include an amendment, or articles of merger within sixty days after the time of filing in the jurisdiction in which the corporation is domiciled. The penalty collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

E. One-third of the fees for the annual report of domestic and foreign corporations paid pursuant to subsection A, paragraph 16 of this section shall be deposited in the Arizona arts trust fund established by section 41-983.01 and two-thirds of these fees shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01.

F. The commission shall provide for and establish an expedited service for the filing of all documents and services provided pursuant to this title as follows:

1. The expedited filing shall be a priority service to be completed as soon as possible after the documents are delivered to the commission.

2. In addition to any other fees required by this section or any other law, the commission shall charge a nonrefundable fee for expedited services, including those requested by fax. The fee shall be determined by a supermajority vote of the commissioners.

3. The commission may provide for and establish same day and next day services for the filing of any documents and services provided pursuant to this title as follows:

(a) The commission shall suspend same day or next day service if the commission determines that it does not have the necessary resources to perform the service within the established time period.

(b) In addition to any other fees required by this section or any other law, the commissioners may charge a nonrefundable fee for the same day or next day service or both. The fee shall be determined by a supermajority vote of the commissioners.

4. The commission shall publicly post the current wait times for processing regular, expedited and same day and next day services.

G. The commission may charge persons who access the commission's data processing system that is maintained pursuant to section 10-122.01 from remote locations and persons requesting special computer generated printouts, reports and tapes a reasonable fee that does not exceed the cost of the time, equipment and personnel necessary to provide this service or product as determined by the commission.

H. Except as provided in section 10-122.01, subsection B, paragraph 3, in addition to any fee charged pursuant to this section, the commission may charge and collect the following nonrefundable fees to help defray the cost of the improved data processing system that is maintained pursuant to section 10-122.01:

1. Filing articles of incorporation of a domestic corporation, ten dollars $10.

2. Filing an application of a foreign corporation for authority to transact business in this state, twenty-five dollars $25.

I. All monies received pursuant to subsections F, G and H of this section shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01.

J. Fees charged pursuant to this section are exempt from section 39-121.03, subsection A, paragraph 3.

K. The commission may allow any person to advance monies to the commission to pay fees required pursuant to this section for future filings and services. All monies received pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the money on deposit account in the public access fund established by section 10-122.01.

L. In addition to any other fees prescribed by law, the commission may establish a fee for the filing of an annual benefit report delivered to the commission pursuant to section 10-2442. The fee shall be determined by a majority vote of the commissioners.

M. A person who is establishing a new business as defined in section 41-710.02 is exempt from the filing fees required by this section.

M. N. For the purposes of this section, "supermajority" means an affirmative vote of at least four commissioners. END_STATUTE

Sec. 2. Section 41-126, Arizona Revised Statutes, is amended to read:

START_STATUTE41-126. Fees; expedited services; exemption

A. The secretary of state shall receive the following fees:

1. Making a copy of any document on file in his the secretary of state's office, no not more than ten cents $.10 for each page or partial page.

2. Filing and recording each application to become a notary public and transmitting a commission for a notary public, no not more than twenty-five dollars $25.

3. Filing an application for registration or renewal of the registration of a trademark or recording an assignment of a trademark, fifteen dollars $15.

4. Filing an application for registration or renewal of the registration of a trade name or recording an assignment of a trade name, no not more than ten dollars $10.

5. Issuing a certificate of registration of a trademark or a trade name, no not more than three dollars $3.

6. Filing, as required by the uniform commercial code:

(a) A financing statement, no not more than three dollars $3.

(b) An amendment to a financing statement, no not more than three dollars $3.

(d) A continuation statement, no not more than three dollars $3.

(e) A statement of release, no not more than two dollars $2.

(f) A termination statement, no not more than two dollars $2.

7. Issuing a certificate as provided in section 44-3146 naming a particular debtor, no not more than six dollars $6.

8. Making a copy of a filed financing statement, no not more than fifty cents $.50 per page.

9. Certifying a copy of a writing specified in paragraphs 6, 7 and 8 of this subsection, no not more than three dollars $3.

10. Filing, recording or certifying any other document not specified in this section, no not more than three dollars $3.

11. Filing the oath and bond of notary public, eighteen dollars $18.

12. Issuing a certificate as to official capacity of a notary public and affixing a seal to the certificate, eighteen dollars $18.

B. The secretary of state shall provide for and establish an expedited service for the processing of requests, applications, filings and searches as follows:

1. The expedited processing shall be a priority effected in a fast and efficient manner.

2. A fee shall be charged for expedited services. This fee shall not exceed twenty-five dollars $25 per service and shall be is in addition to any other fees provided by law, including those set forth in subsection A of this section.

C. The secretary of state shall adopt rules necessary to carry out subsection B of this section.

D. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fees required by this section. END_STATUTE

Sec. 3. Title 41, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 41-710.02, to read:

START_STATUTE41-710.02. New businesses; state contracts; fee waivers; report; definition

A. Beginning January 1, 2024, the department shall do the following:

1. Be encouraged to award five percent of the total number of state contracts entered into each year to new businesses. For the purposes of this paragraph, the department shall evaluate lowering barriers for new businesses to compete for state contracts through methods such as reducing the time for approving a contract, reducing the time for payment of services rendered in a contract, marketing and outreach to new businesses, prioritizing innovation as a selection factor, measuring past PERFORMANCE based on non-state customers and training and educating new businesses. This paragraph does not require the department to award five percent of the total number of state contracts entered into each year to new businesses.

2. submit a report ON OR BEFORE dECEMBER 31 OF EACH YEAR to the governor, the president of the senate and the speaker of the house of representatives on the following information:

(a) The total number of state contracts awarded in the prior year and the number of contracts awarded to new businesses.

(b) The total dollar amount of all contracts awarded in the prior year and the dollar amount of all contracts awarded to new businesses.

(d) Any recommendations to improve access to state contracts for new businesses.

3. Provide a copy of the report required by paragraph 2 of this subsection to the secretary of state and post the INFORMATION on the department's public website.

B. For the purposes of this section, "new business":

1. Means a business entity that has been in operation for less than five years and whose principal place of business is located in this state.

2. Does not include any business entity that dissolves or otherwise terminates business operations and that reincorporates or otherwise reinitiates business operations in this state on or after the effective date of this section. END_STATUTE

Sec. 4. Section 42-5005, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5005. Transaction privilege tax and municipal privilege tax licenses; fees; renewal; revocation; violation; classification

A. Every person who receives gross proceeds of sales or gross income on which a transaction privilege tax is imposed by this article and who desires to engage or continue in business shall apply to the department for an annual transaction privilege tax license accompanied by a fee of $12. A person shall not engage or continue in business until the person has obtained a transaction privilege tax license. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fee required by this subsection.

B. A person desiring to engage or continue in business within a city or town that imposes a municipal privilege tax shall apply to the department of revenue for an annual municipal privilege tax license accompanied by a fee of up to $50, as established by ordinance of the city or town. The person shall submit the fee with each new license application. The person may not engage or continue in business until the person has obtained a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043.

C. A transaction privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year. There is no fee for the renewal of the transaction privilege tax license. The transaction privilege tax license must be renewed at the same time and in the manner as the municipal privilege tax license renewal.

D. A municipal privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year by the payment of a license renewal fee of up to $50. The renewal fee is due and payable on January 1 and is considered delinquent if not received on or before the last business day of January. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The renewal fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043.

E. A licensee that remains in business after the municipal privilege tax license has expired is subject to the payment of the license renewal fee and the civil penalty prescribed in section 42-1125, subsection R.

F. If the applicant is not in arrears in payment of any tax imposed by this article, the department shall issue a license authorizing the applicant to engage and continue in business on the condition that the applicant complies with this article. The license number shall be continuous.

G. The transaction privilege tax license and the municipal privilege tax license are not transferable on a complete change of ownership or change of location of the business. For the purposes of this subsection:

1. "Location" means the business address appearing in the application for the license and on the transaction privilege tax or municipal privilege tax license.

2. "Ownership" means any right, title or interest in the business.

3. "Transferable" means the ability to convey or change the right or privilege to engage or continue in business by virtue of the issuance of the transaction privilege tax or municipal privilege tax license.

H. When the ownership or location of a business on which a transaction privilege tax or municipal privilege tax is imposed has been changed within the meaning of subsection G of this section, the licensee shall surrender the license to the department. The license shall be reissued to the new owners or for the new location on application by the taxpayer and payment of the $12 fee for a transaction privilege tax license and a fee of up to $50 per jurisdiction for a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes.

I. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a transaction privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return under a single transaction privilege tax license number. This requirement shall not be construed as conflicting with section 42-5020.

J. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a municipal privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return.

K. A person who is engaged in or conducting business at two or more locations or under two or more business names and who files a consolidated return under a single transaction privilege tax license number as provided by section 42-5020 is required to pay only a single municipal privilege tax license renewal fee for each local jurisdiction pursuant to subsection D of this section. A person who is engaged in or conducting business at two or more locations or under two or more business names and who does not file a consolidated return under a single license number is required to pay a license renewal fee for each location or license in a local jurisdiction.

L. For the purposes of this chapter and chapter 6 of this title:

1. Through December 31, 2018, an online lodging marketplace, as defined in section 42-5076, may register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts, at the election of the online lodging marketplace, for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009.

2. Beginning from and after December 31, 2018, an online lodging marketplace, as defined in section 42-5076, shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009.

M. For the purposes of this chapter and chapter 6 of this title, a person who is licensed pursuant to title 32, chapter 20 and who files an electronic consolidated tax return for individual real properties under management on behalf of the property owners may be licensed with the department for the payment of taxes levied by this state and by any county, city or town with respect to those properties. There is no fee for a license issued pursuant to this subsection.

N. For the purposes of this chapter, a peer-to-peer car sharing program shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special districts for taxes due from a shared vehicle owner on any shared vehicle transaction facilitated by the peer-to-peer car sharing program, subject to the limitations in section 28-9616. A peer-to-peer car sharing program shall remit the surcharges established pursuant to sections 5-839 and 48-4234 only if the peer-to-peer car sharing program allows shared vehicle transactions that involve a vehicle for which the shared vehicle owner has not certified to the department pursuant to section 28-9616, subsection C that it is an individual-owned shared vehicle. For the purposes of this subsection, "individual-owned shared vehicle", "peer-to-peer car sharing program", "shared vehicle owner" and "shared vehicle transaction" have the same meanings prescribed in section 28-9601.

O. If a person violates this article or any rule adopted under this article, the department upon hearing may revoke any transaction privilege tax or municipal privilege tax license issued to the person. The department shall provide ten days' written notice of the hearing, stating the time and place and requiring the person to appear and show cause why the license or licenses should not be revoked. The department shall provide written notice to the person of the revocation of the license. The notices may be served personally or by mail pursuant to section 42-5037. After revocation, the department shall not issue a new license to the person unless the person presents evidence satisfactory to the department that the person will comply with this article and with the rules adopted under this article. The department may prescribe the terms under which a revoked license may be reissued.

P. The department may revoke any transaction privilege tax or municipal privilege tax license issued to any person who fails for thirteen consecutive months to make and file a return required by this article on or before the due date or the due date as extended by the department unless the failure is due to a reasonable cause and not due to wilful neglect.

Q. A person who violates any provision of this section is guilty of a class 3 misdemeanor. END_STATUTE