SB1435 - 561R

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

Section 1. Section 3-3122, Arizona Revised Statutes, is amended to read:

START_STATUTE3-3122. Employer and employee representation

Any affected employee or employer may designate any person or persons to represent him for the purpose of proceedings before any hearing officer under this article, regardless of the person's membership in the person being a licensed attorney in this state bar. END_STATUTE

Sec. 2. Section 8-231, Arizona Revised Statutes, is amended to read:

START_STATUTE8-231. Juvenile court commissioners; appointment; powers and duties; compensation; qualifications

A. The presiding judge of the juvenile court in a county may appoint juvenile court commissioners to serve at the pleasure of the presiding judge, provided that the funds necessary to fill these positions have been approved by the respective county board of supervisors. A juvenile court commissioner has the powers and duties as are prescribed by supreme court rule of the supreme court.

B. A juvenile court commissioner shall not make ex parte orders which would deprive a person of custody of his child or deprive a person of his liberty, except in default hearings or for necessary temporary matters preceding a hearing.

C. A juvenile court commissioner is entitled to receive an annual salary set by the presiding juvenile court judge at an amount not to exceed the maximum amount provided in section 12-213. The salary of a juvenile court commissioner is a county charge.

D. To be eligible for appointment as a juvenile court commissioner a person must meet the following qualifications:

1. Be a member of the LICENSED attorney in this state bar of Arizona.

2. For at least four years have either engaged in the general practice of law, or have served as a full-time juvenile court referee or hearing officer for at least four years or have a combination of both such practice and service. END_STATUTE

Sec. 3. Section 11-136, Arizona Revised Statutes, is amended to read:

START_STATUTE11-136. County formation commission

A. Within fifteen days of receipt of after receiving certification of the petition pursuant to section 11-135, subsection D, the governor shall appoint a county formation commission of three members, none of whom may reside in an affected county and no not more than two of whom may be members of the same political party. At least one of the appointees must be a member of the LICENSED attorney in this state bar of Arizona, at least one of the appointees must be a certified public accountant and at least one of the appointees must have experience in property valuation and appraisal procedures. The governor shall designate one member to act as chairman. Members of the commission are entitled to receive compensation of one hundred dollars $100 for each day engaged in the service of the commission plus reimbursement for travel and subsistence expenses pursuant to title 38, chapter 4, article 2. The commission may employ or contract for such clerical and professional staff services as may be necessary to perform its functions. The initial meeting of the commission shall be held at the call of the chairman within ten days after notice and acceptance of the members' appointment. No A member, employee, agent or representative of the commission may not use or promise to use any official authority or influence for the purpose of influencing the outcome of the proposed formation of new counties.

B. The commission shall consider and determine:

1. The fiscal impact of the proposed county formation and the economic viability of the proposed counties, including the costs of the proceedings to form the counties and potential disruptions and delays in delivery of federal and state aid and payments to the proposed counties.

2. The comparative costs of providing services in the affected county or counties and each proposed county.

3. The projected revenues available to the affected county or counties and each proposed county.

4. The final boundaries of the proposed counties.

5. A procedure for the orderly and timely transfer of service functions and responsibilities from the affected county or counties to each proposed county.

6. The division of each proposed county into supervisorial districts.

7. The proposed transfer, division and apportionment between the proposed counties of all real and personal property, valued at replacement cost less depreciation, and cash accounts owned by the affected county or counties.

8. Bonds and other indebtedness of the affected county or counties which that are outstanding or authorized and other contracts and obligations of the affected county or counties which that would be divided, apportioned and assumed by the proposed county or counties.

9. Estimated taxes, assessments or other authorized charges necessary in each proposed county to meet these liabilities in the first full fiscal year after the proposed county or counties are formed.

10. Each community college district, school district and special taxing district within the affected county or counties.

11. The indigent population of the proposed county or counties, determined as of the commission's initial meeting, for purposes of the Arizona health care cost containment system.

C. At any time before the final commission hearing the commission shall receive written requests to modify the boundaries of the proposed counties from any real property owner or registered voter in a proposed county. Such a request must contain sufficient information to identify the property or territory affected by a proposed modification and state the reasons for the request. The commission shall not change the boundaries described in the petition filed with the secretary of state unless modification is necessary in the interest of public convenience and necessity or to maintain an existing community of interest. The boundaries of a proposed county shall not pass through or divide an incorporated city or town or, if practicable, a special taxing district established under title 48 which that receives financial assistance from the county. If possible, the boundaries shall be set along existing survey lines or political or administrative boundaries. The requirements of section 11-132, subsection B apply to proposed counties formed by the final boundaries prescribed by the commission.

D. In the case of a countywide district, a district which receives financial assistance from the county or which is governed by the affected county's board of supervisors, the auditor general shall audit and inventory the district's assets and liabilities and, if necessary, determine a fair and equitable division of them between the proposed counties.

E. All officers and employees of an affected county and all state agencies shall cooperate with, perform any functions required by and produce any books, records or other documents of the county requested by and necessary for the commission to perform its duties.

F. Within one hundred eighty days after notice and acceptance of the members' appointments the commission shall adopt a report and summary of its findings and its determination of the final boundaries of each proposed county. The commission shall transmit copies of the report to the person or organization proposing the county boundary changes, the secretary of state, the governor, the attorney general, the clerk of the board of supervisors of each affected county, the president of the senate, the speaker of the house of representatives and each legislator whose district is in an affected county.

G. The findings and determinations of the commission are the terms and conditions of the formation of the proposed counties. Except as otherwise authorized by this article, those terms and conditions are final and binding in each affected county and in each new county if the new counties are established pursuant to this article. END_STATUTE

Sec. 4. Section 11-461, Arizona Revised Statutes, is amended to read:

START_STATUTE11-461. Recording instruments; keeping records; identification; location; social security numbers; definition

A. The recorder shall have custody of and shall keep all records, maps and papers deposited in the recorder's office.

B. The recorder shall record separately, in typewriting, in a legible hand or by use of photostatic or photographic machines or by a system of microphotography, all instruments or writings required or authorized by law to be recorded. In a like manner, the recorder shall record any other instrument offered for recording provided the instruments meet the requirements of section 11-480.

C. The recorder may accept a digitized image of a recordable instrument for recording if it is submitted by a title insurer or title insurance agent as defined in section 20-1562, by a state chartered or federally chartered bank insured by the federal deposit insurance corporation, by an active member of the A LICENSED ATTORNEY IN THIS state bar of Arizona, by an agency, branch or instrumentality of the federal government, by a trusted submitter or by a governmental entity and the instrument from which the digitized image is taken conforms to all applicable laws relating to the recording of paper instruments.

D. Instruments shall be recorded consecutively as of the time they are received. The recorder shall affix to each instrument, either by hand or in a digitized form, a notation or notations sufficient to provide:

1. A record identification to uniquely identify each instrument and to fix its position within the sequence of recordings.

2. A record location to enable each instrument to be retrieved for purposes of inspection.

E. Instruments may be recorded in docket books, in separate record books or in suitable containers, if the location of each instrument can be determined from notations both on the instrument and in the appropriate index. Reference to any recorded instrument may be made by the record location without further description.

F. Any reference to docket and page, or book and page, or similar indication means the record location as notated on each recorded instrument.

G. On or before January 1, 2009, The recorder in a county with a population of more than eight hundred thousand persons, shall redact references to complete nine digit social security numbers that are available on the recorder's website. Social security numbers may be retained on instruments that are not available on a website. The recorder shall also redact complete social security number references on all instruments recorded but not available on the website before the effective date of this amendment to this section, September 19, 2007 before making the instruments available on the website. The recorder is not liable for any errors or cases of stolen identity resulting from redactions made pursuant to this subsection.

H. The recorder in a county with a population of less than eight hundred thousand persons shall redact references to complete nine digit social security numbers on instruments that are available on the recorder's website at the request of the holder of the social security number if the holder identifies the recorded instrument. The recorder shall also redact complete social security number references on all instruments recorded but not available on the website before the effective date of this amendment to this section, September 19, 2007 before making the instruments available on the website. Social Security numbers may be retained on instruments that are not available on the website. The recorder is not liable for any errors or cases of stolen identity resulting from redactions made pursuant to this subsection.

I. Notwithstanding the limitations of section 11-475.01, county recorders may use monies in the document storage and retrieval conversion and maintenance fund to accomplish the requirements of subsections G and H of this section.

J. For the purposes of this section, "a trusted submitter" means a person or entity that has entered into a memorandum of understanding regarding digitized recording with the county recorder in the county in which the digitized recording is to be submitted. END_STATUTE

Sec. 5. Section 12-109, Arizona Revised Statutes, is amended to read:

START_STATUTE12-109. Rules and administrative orders of pleading, practice and procedure; adoption; prohibitions; electronic signatures; distribution

A. The supreme court, by rules or administrative orders, shall regulate pleading, practice and procedure in judicial proceedings in all courts of this state to simplify pleading, practice and procedure and promote speedy determination of litigation on its merits.

B. The rules and administrative orders shall not do any of the following:

1. Abridge, enlarge or modify substantive rights of a litigant.

2. Abridge, enlarge or modify statutory, contractual or common law real property rights or questions of substantive law.

C. The court may allow documents that require a sworn written declaration, verification, certificate, statement, oath or affidavit to be signed with an electronic signature.

D. The supreme court shall print and distribute the rules and administrative orders to all members of the state bar licensed attorneys and to all other persons who apply.

E. The rules shall not become effective until sixty days after distribution. END_STATUTE

Sec. 6. Section 12-110, Arizona Revised Statutes, is amended to read:

START_STATUTE12-110. Advisory board; objections to rules

A. The state bar, or A representative group selected by the bar, of licensed attorneys shall act as an advisory board and shall either voluntarily or upon on request of a majority of the judges justices of the supreme court, consult with, recommend to or advise the court on any matter dealt with or proposed to be dealt with in the rules.

B. Any member of the state bar licenseD attorney or a private citizen may object in writing to a rule or part thereof of a rule and may request changes. The court shall consider the objections and requests as advice and information only and may act thereon at its discretion. END_STATUTE

Sec. 7. Title 12, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 12-119.06, to read:

START_STATUTE12-119.06. Attorney licensing; requirements

The supreme court shall license attorneys for the practice of law in this state. the supreme court may not require an attorney to be a member of any organization to become or remain a licensed attorney in this state. END_STATUTE

Sec. 8. Section 12-353, Arizona Revised Statutes, is amended to read:

START_STATUTE12-353. Recovery of costs; attorney discipline investigations; definition

A. In an attorney discipline matter, if an attorney who is the subject of the charge prevails, in addition to any costs that are awarded by statute, the state bar of Arizona supreme court is responsible to the attorney for any attorney fees and court costs. Court costs include the cost of all stages of the investigation and discipline process and, if applicable, any court litigation and appeal.

B. For the purposes of this section, "attorney discipline matter" means any charge that is not dismissed by the state bar of Arizona supreme court before final disposition of the complaint by the presiding disciplinary judge or the supreme court. END_STATUTE

Sec. 9. Section 12-2601, Arizona Revised Statutes, is amended to read:

START_STATUTE12-2601. Definitions

In this article, unless the context otherwise requires:

1. "Claim" means a legal cause of action except for actions relating to health care under sections 12-561, through 12-562 and 12-563 of this title or under title 46, chapter 4 or an affirmative defense to which all of the following apply:

(a) The claim is asserted against a licensed professional in a complaint, answer, cross-claim, counterclaim or third party complaint.

(b) The claim is based on the licensed professional's alleged breach of contract, negligence, misconduct, errors or omissions in rendering professional services.

2. "Expert" means a person who is qualified by knowledge, skill, experience, training or education to express an opinion regarding a licensed professional's standard of care or liability for the claim.

3. "Licensed professional" means a person, corporation, professional corporation, partnership, limited liability company, limited liability partnership or other entity that is licensed by this state to practice a profession or occupation under title 20 or 32 or that a person who is admitted to the A LICENSED ATTORNEY IN THIS state bar. END_STATUTE

Sec. 10. Section 12-2702, Arizona Revised Statutes, is amended to read:

START_STATUTE12-2702. Representation; definition

A. A person desiring immigration and nationality services may be represented by any of the following:

1. Attorneys in the United States.

2. A law student who is enrolled in an accredited law school or a law school graduate who is not yet admitted to the bar a licensed attorney, if both of the following apply:

(a) The student or graduate is appearing on an individual case basis at the request of the person entitled to representation.

(b) The student or graduate is permitted allowed to appear by the official before whom the student or graduate wishes to appear including an immigration judge, an immigration district director, an immigration officer-in-charge, a regional immigration commission, the United States commissioner of immigration and naturalization assistant secretary of the United States immigration and customs enforcement, the director of the United States citizenship and immigration services or the immigration board. If in the official's opinion special circumstances warrant it, the official may require that a law student be accompanied by a supervising faculty member or attorney.

3. Any reputable person of good moral character, if all of the following apply:

(a) The person is appearing on an individual case basis, at the request of the person entitled to representation.

(b) The person is appearing without direct or indirect remuneration and the person files a written declaration to that effect.

(c) The person has a preexisting relationship or connection with the person entitled to representation including a relative, neighbor, clergyman, business associate or personal friend, except that this requirement may be waived, as a matter of administrative discretion, in cases in which adequate representation would not otherwise be available.

(d) If the person is appearing on behalf of a client, the person's appearance is permitted allowed by the official before whom the person wishes to appear including an immigration judge, an immigration district director, an immigration officer-in-charge, a regional immigration commissioner, the United States commissioner of immigration and naturalization assistant secretary of the United States immigration and customs enforcement, the director of the United States citizenship and immigration services or the immigration board, except that this permission shall not be granted with respect to any person who regularly engages in immigration and nationality practice or preparation or holds himself oneself out to the public as qualified to do so.

4. A person who is representing an organization accredited by the board of immigration appeals and who has been accredited by the immigration board.

5. An accredited official in the United States of the government to which an alien owes allegiance, if the official appears solely in an official capacity and with the alien's consent.

B. Except as otherwise provided in this section, no other person or persons may represent others in any case, prepare applications or forms or give any legal advice relating to any immigration or naturalization matter.

C. Any person who misrepresents the services the person may provide in immigration or nationality matters is in violation of this chapter.

D. A person or organization may not retain an original document belonging to a client unless authorized by the client.

E. An attorney who practices immigration and nationality law in this state and who is not a member of the state bar of Arizona licensed attorney in this state shall not provide advice on issues of this state's law. An attorney who practices immigration and nationality law in this state and who is not a licensed by the state bar of Arizona attorney in this state shall disclose to all persons to whom service is provided that the attorney is not licensed by the state bar of Arizona and shall disclose the state in which the attorney is licensed to practice law. This disclosure must be done in writing at the time the attorney's services are retained.

F. For the purposes of this section, "attorney" means any person who is a licensed attorney in this state or is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth or district of the United States and who is not under any order of any court suspending, enjoining, restraining, disbarring or otherwise restricting the person in the practice of law. END_STATUTE

Sec. 11. Section 13-4041, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4041. Fee of counsel assigned in criminal proceeding or insanity hearing on appeal or in postconviction relief proceedings; reimbursement

A. Except pursuant to subsection G of this section, if counsel is appointed by the court to represent the defendant in either a criminal proceeding or insanity hearing on appeal, the county in which the court from which the appeal is taken presides shall pay counsel, except that in those appeals where the defendant is represented by a public defender or other publicly funded office, the county shall not set or pay compensation shall not be set or paid. Compensation for services rendered on appeal shall be in an amount as the supreme court in its discretion deems reasonable, considering the services performed.

B. After the supreme court has affirmed a defendant's conviction and sentence in a capital case, the supreme court or, if authorized by the supreme court, the presiding judge of the county from which the case originated shall appoint counsel to represent the capital defendant in the state postconviction relief proceeding.

C. The supreme court shall establish and maintain a list of persons who are qualified to represent capital defendants in postconviction proceedings. The supreme court may establish by rule more stringent standards of competency for the appointment of postconviction counsel in capital cases than are provided by this subsection. The supreme court may refuse to certify an attorney on the list who meets the qualifications established under this subsection or may remove an attorney from the list who meets the qualifications established under this subsection if the supreme court determines that the attorney is incapable or unable to adequately represent a capital defendant. The court shall appoint counsel from the list. Counsel who are appointed from the list shall meet the following qualifications:

1. Be a member in good standing of the state bar of Arizona licensed attorney in this state for at least five years immediately preceding the appointment.

2. Have practiced in the area of state criminal appeals or postconviction proceedings for at least three years immediately preceding the appointment.

3. Not previously have represented the capital defendant in the case either in the trial court or in the direct appeal, unless the defendant and counsel expressly request continued representation and waive all potential issues that are foreclosed by continued representation.

D. Before filing a petition, the capital defendant may personally appear before the trial court and waive counsel. If the trial court finds that the waiver is knowing and voluntary, appointed counsel may withdraw. The time limits in which to file a petition shall not be extended due solely to the change from appointed counsel to self-representation.

E. If at any time the trial court determines that the capital defendant is not indigent, appointed counsel shall no longer be compensated by public monies and may withdraw.

F. Unless counsel is employed by a publicly funded office, counsel appointed to represent a capital defendant in state postconviction relief proceedings shall be paid an hourly rate of not to exceed one hundred dollars $100 per hour. Monies shall not be paid to court appointed counsel unless either:

1. A petition is timely filed.

2. If a petition is not filed, a notice is timely filed stating that counsel has reviewed the record and found no meritorious claim.

G. The trial court shall compensate appointed counsel from county funds. The court or the court's designee shall review and approve all reasonable fees and costs. If the attorney believes that the court has set an unreasonably low hourly rate or if the court finds that the hours the attorney spent are unreasonable, the attorney may file a special action with the Arizona supreme court. If counsel is appointed in successive postconviction relief proceedings, compensation shall be paid pursuant to section 13-4013, subsection A.

H. The county shall request reimbursement for fees it incurs pursuant to subsections F, G and I of this section arising out of the appointment of counsel to represent an indigent capital defendant in a state postconviction relief proceeding. The state shall pay a portion of the fees incurred by the county out of monies appropriated to the supreme court for these purposes. The total amount that may be spent in any fiscal year by this state for indigent capital defense in a state postconviction relief proceeding may not exceed the amount appropriated in the general appropriations act for this purpose, together with additional amounts appropriated by any special legislative appropriation for indigent capital defense. The supreme court shall approve county requests for reimbursement after certification that the amount requested is owed.

I. The trial court may authorize additional monies to pay for investigative and expert services that are reasonably necessary to adequately litigate those claims that are not precluded by section 13-4232. END_STATUTE

Sec. 12. Section 16-442, Arizona Revised Statutes, is amended to read:

START_STATUTE16-442. Committee approval; adoption of vote tabulating equipment; experimental use; emergency cerification

A. The secretary of state shall appoint a committee of three persons, to consist of a member of the engineering college at one of the universities, a member of the state bar of Arizona LICENSED attorney in this state and one person familiar with voting processes in the state, no not more than two of whom shall be of the same political party, and at least one of whom shall have at least five years of experience with and shall be able to render an opinion based on knowledge of, training in or education in electronic voting systems, procedures and security. The committee shall investigate and test the various types of vote recording or tabulating machines or devices that may be used under this article. The committee shall submit its recommendations to the secretary of state who shall make final adoption of the type or types, make or makes, model or models to be certified for use in this state. The committee shall serve without compensation.

B. Machines or devices used at any election for federal, state or county offices may only be certified for use in this state and may only be used in this state if they comply with the help America vote act of 2002 and if those machines or devices have been tested and approved by a laboratory that is accredited pursuant to the help America vote act of 2002.

C. After consultation with the committee prescribed by subsection A of this section, the secretary of state shall adopt standards that specify the criteria for loss of certification for equipment that was used at any election for federal, state or county offices and that was previously certified for use in this state. On loss of certification, machines or devices used at any election may not be used for any election for federal, state or county offices in this state unless recertified for use in this state.

D. The secretary of state may revoke the certification of any voting system or device for use in a federal, state or county election in this state or may prohibit for up to five years the purchase, lease or use of any voting system or device leased, installed or used by a person or firm in connection with a federal, state or county election in this state, or both, if either of the following occurs:

1. The person or firm installs, uses or permits allows the use of a voting system or device that is not certified for use or approved for experimental use in this state pursuant to this section.

2. The person or firm uses or includes hardware, firmware or software in a version that is not certified for use or approved for experimental use pursuant to this section in a certified voting system or device.

E. The governing body of a city or town or the board of directors of an agricultural improvement district may adopt for use in elections any kind of electronic voting system or vote tabulating device approved by the secretary of state, and thereupon the voting or marking device and vote tabulating equipment may be used at any or all elections for voting, recording and counting votes cast at an election.

F. The secretary of state or the governing body may provide for the experimental use of a voting system or device without a final adoption of the voting system or device, and its use at the election is as valid as if the machines had been permanently adopted.

G. After consultation with the committee prescribed by subsection A of this section, the secretary of state may approve for emergency use an upgrade or modification to a voting system or device that is certified for use in this state if the governing body establishes in an open meeting that the election cannot be conducted without the emergency certification. Any emergency certification shall be limited to no not more than six months. At the conclusion of the certification period the voting system or device shall be decertified and unavailable for future use unless certified in accordance with this section. END_STATUTE

Sec. 13. Section 20-466.04, Arizona Revised Statutes, is amended to read:

START_STATUTE20-466.04. Referrals to other licensing agencies; definition

A. The director shall forward to the appropriate licensing agency the name of any person who is convicted of, enjoined from or penalized for violating section 20-463 or 23-1028. The director shall include any information the director believes is material to the case.

B. A person whose name is forwarded pursuant to subsection A of this section has no cause of action against the director and the department's employees and agents pursuant to any administrative appeal or judicial review.

C. For the purposes of this section, "licensing agency" means any state board, commission, department or agency that issues any occupational or professional license, permit or registration and the state bar of Arizona supreme court. END_STATUTE

Sec. 14. Section 20-1097, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1097. Definitions

In this article, unless the context otherwise requires:

1. "Administrative fee" means a fixed amount paid by a corporation on a periodic basis to a contracted attorney for the contracted attorney's overhead and administrative costs.

2. Pay or reimburse for specific legal services does not include payment of an administrative fee only.

3. "Prepaid legal insurance contract" means a contractual obligation to pay or reimburse for specific legal services rendered in the normal and ordinary course of business by an active member of the state bar of Arizona attorney who is licensed in this state.

4. "Prepaid legal insurance corporation" or "corporation" means any corporation organized for the purpose of selling prepaid legal insurance contracts in this state or any insurer licensed pursuant to this title. END_STATUTE

Sec. 15. Section 20-1097.01, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1097.01. Exceptions

This article does not apply to:

1. Any lawyer referral services authorized by the state bar of Arizona.

2. Retainer contracts made by attorneys-at-law with individual or group clients with fees based on estimates of the nature and the amount of the legal services to be provided.

3. The furnishing of legal assistance by employee organizations to their members in matters relating to employment or occupations.

4. The furnishing of legal assistance to members or dependents of churches, cooperatives, educational institutions, credit unions, labor unions or other organizations of employees in which the organization contracts directly with a lawyer or a law firm for the provision of legal services. END_STATUTE

Sec. 16. Section 23-108.02, Arizona Revised Statutes, is amended to read:

START_STATUTE23-108.02. Administrative law judges

A. The commission shall appoint administrative law judges of the commission who shall be members of the Arizona state bar licensed attorneys in this state.

B. The annual compensation of the chief administrative law judge and of the administrative law judges shall be as determined pursuant to section 38-611. END_STATUTE

Sec. 17. Section 26-1006, Arizona Revised Statutes, is amended to read:

START_STATUTE26-1006. State judge advocate; staff judge advocates

A. The adjutant general, with approval of the governor, shall appoint an officer of the national guard as state judge advocate, who shall be a member licensed attorney in good standing of the in this state bar of Arizona and shall have been a member of the licensed attorney in this state bar of Arizona and a member of the national guard for at least five years immediately preceding the appointment.

B. The adjutant general may appoint as many assistant state judge advocates as deemed necessary who shall be officers of the national guard and members licensed attorneys in good standing of the in this state bar of Arizona.

C. The state judge advocate or his the state judge advocate's assistants shall make frequent inspections in the field in supervision of the administration of military justice.

D. Convening authorities at all times shall communicate directly with their staff judge advocates in matters relating to the administration of military justice. The staff judge advocate of any command is entitled to communicate directly with the staff judge advocate of a superior or subordinate command or with the state judge advocate.

E. No person who has acted as a member, military judge, trial counsel, assistant trial counsel, defense counsel, assistant defense counsel or investigating officer, or who has been a witness for either the prosecution or defense, in any case may later act as staff judge advocate to any reviewing authority in the same case. END_STATUTE

Sec. 18. Section 26-1026, Arizona Revised Statutes, is amended to read:

START_STATUTE26-1026. Military judge of a general or special court-martial

A. A military judge shall be detailed to each general court-martial. Subject to rules of the adjutant general, a military judge may be detailed to any special court-martial. The adjutant general shall adopt rules providing for the manner in which military judges are detailed for the courts-martial and for the persons who are authorized to detail military judges for the courts-martial. The military judge shall preside over each open session of the court-martial to which the military judge has been detailed.

B. A military judge must be a member licensed attorney in good standing of the in this state bar of Arizona and a current or former member of the United States armed forces or the armed forces of this state who is appointed as a military judge by the governor after certification by the state judge advocate as having met the qualifications.

C. Before appointment by the governor, a prospective military judge shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

D. The military judge of a general court-martial shall be designated by the state judge advocate, or the state judge advocate's designee, for detail in accordance with rules adopted under subsection A of this section. Unless the court-martial was convened by the governor, neither the convening authority nor any member of the convening authority's staff shall prepare or review any report concerning the effectiveness, fitness or efficiency of the military judge detailed, which relates to the military judge's performance of duty as a military judge. A commissioned officer who is certified to be qualified for duty as a military judge of a general court-martial may perform duties of a judicial or nonjudicial nature other than those relating to the officer's primary duty as a military judge of a general court-martial if the duties are assigned to the officer by or with the approval of the state judge advocate or the state judge advocate's designee.

E. A person is not eligible to act as military judge in a case if the person is the accuser or a witness or has acted as an investigating officer or a counsel in the same case.

F. The military judge of a court-martial may not consult with the members of the court except in the presence of the accused, trial counsel and defense counsel, and the military judge may not vote with the members of the court. END_STATUTE

Sec. 19. Section 28-4451, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4451. Product liability; warranty obligations; audits; vehicle exports; used vehicle recall obligations; definition

A. Each manufacturer shall file with the director a copy of the delivery and preparation obligations required to be performed by a new motor vehicle dealer before delivery of new motor vehicles to buyers. These delivery and preparation obligations constitute the new motor vehicle dealer's only responsibility for the product liability as between the new motor vehicle dealers and the manufacturer. The new motor vehicle dealer shall furnish the buyer of a new motor vehicle with a signed copy of the manufacturer's or distributor's delivery and preparation requirements indicating that all of the requirements have in fact been performed.

B. Any mechanical, body or parts defects arising from any express or implied warranties of the manufacturer constitute the manufacturer's product or warranty liability.

C. The manufacturer or distributor shall compensate an authorized new motor vehicle dealer who performs work to rectify the manufacturer's or distributor's warranty obligations, recall obligations or delivery and preparation obligations.

D. The compensation that the manufacturer or distributor pays to a new motor vehicle dealer for diagnostic work, repair service and labor shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section. Time allowances for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work or services to be performed. The compensation that the manufacturer or distributor pays to the new motor vehicle dealer for parts used in warranty or recall related service shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section.

E. The new motor vehicle dealer may declare the retail rates that it customarily charges for parts or labor or both parts and labor by submitting to the manufacturer or distributor the lesser of one hundred sequential, nonwarranty, customer-paid service repair orders or ninety consecutive days of customer-paid service repair orders for warranty-like repairs made not more than one hundred eighty days before the submission. The new motor vehicle dealer's retail labor rate shall be determined by dividing the amount of the dealer's total labor sales contained in the submitted repair orders by the total number of labor hours that generated those sales. The new motor vehicle dealer's retail rate for parts shall be a percentage determined by dividing the total sales for parts in the submitted repair orders by the new motor vehicle dealer's total cost for those parts, minus one, multiplied by one hundred to produce a percentage. Declared rates are presumed to be fair and reasonable except that a manufacturer or distributor, within thirty days after receiving the new motor vehicle dealer's submission, may rebut the presumption by reasonably substantiating that the rate or rates are inaccurate or unreasonable compared to other similarly situated same line-make new motor vehicle dealers in this state. The new motor vehicle dealer's declared parts, labor or both parts and labor rates shall go into effect thirty days following the manufacturer's or distributor's receipt of the declaration, unless the manufacturer or distributor timely sends a rebuttal of the declared rate or rates to the new motor vehicle dealer. If any of the declared rates are rebutted, the manufacturer or distributor shall propose an adjustment of the rebutted rate or rates within thirty days after receiving the new motor vehicle dealer's submission. If the new motor vehicle dealer does not agree with the proposed adjusted rate or rates, it may file a protest with the director within thirty days after receipt of the manufacturer's or distributor's proposal. If a protest is timely filed, the director shall inform the manufacturer or distributor that a timely protest has been filed and that a hearing will be held on the protest if any available manufacturer or distributor mediation opportunity has been used and was unsuccessful in reaching an agreement between the parties.

F. In calculating the retail rate or rates that a new motor vehicle dealer customarily charges for parts or labor, the following work may not be included in the calculation:

1. Repairs for manufacturer or distributor special events, specials or promotional discounts for retail customer repairs.

2. Parts sold at wholesale.

3. Engine assemblies and transmission assemblies, if the new motor vehicle dealer agrees to be compensated for those assemblies with a handling charge instead of a retail parts markup.

4. Routine maintenance not covered under any retail customer warranty, such as fluids, filters and belts not provided in the course of repairs.

5. Nuts, bolts, fasteners and similar items that do not have individual part numbers.

6. Vehicle reconditioning.

G. The manufacturer, factory branch, distributor or distributor branch may reasonably and periodically audit a new motor vehicle dealer to determine the validity of paid claims for dealer compensation or any charge-backs for warranty parts or service compensation. Audits shall only be for the twelve month period immediately following the date of the payment. This limitation does not apply if the manufacturer, factory branch, distributor or distributor branch reasonably suspects fraud. As a result of an audit that is authorized by this subsection, the manufacturer or distributor has the right to charge back to the new motor vehicle dealer the amount of any previously paid claim after the new motor vehicle dealer has had notice and an opportunity to participate in any available manufacturer or distributor mediation processes and all legal appeals have been exhausted if mediation failed to result in an agreement.

H. The manufacturer, factory branch, distributor or distributor branch shall reserve the right to reasonable periodic audits to determine the validity of paid claims for dealer compensation or any charge-backs for consumer or dealer incentives. Audits shall only be for a one year period immediately following the date of the payment. This limitation does not apply if the manufacturer, factory branch, distributor or distributor branch reasonably suspects fraud. As a result of an audit authorized by this subsection, the manufacturer or distributor has the right to charge back to the new motor vehicle dealer the amount of any previously paid claim after the new motor vehicle dealer has had notice and an opportunity to participate in any available manufacturer or distributor mediation processes and all legal appeals have been exhausted if mediation failed to result in an agreement.

I. All claims by new motor vehicle dealers under this section for labor and parts and all claims for compensation relative to any sales incentive programs shall be paid within thirty days after approval by the manufacturer or distributor subject to the manufacturer's or distributor's right to audit the claims provided in subsection G or H of this section. All claims shall be either approved or disapproved within thirty days after receipt on forms and in the manner specified by the manufacturer or distributor. Any claim not disapproved in writing or by means of electronic transmission within thirty days after receipt is deemed approved, and payment must be made within thirty days after approval.

J. If a manufacturer or distributor furnishes a part or component to a new motor vehicle dealer, at no cost, to use in performing repairs under a recall, campaign service action or warranty repair, the manufacturer or distributor shall compensate the dealer for the part or component in the same manner as warranty parts compensation under this section by compensating the dealer the retail parts rate on the wholesale cost for the part or component as listed in the manufacturer's or distributor's price schedule, minus the wholesale cost for the part or component.

K. A manufacturer or distributor may not require a new motor vehicle dealer to establish the retail rates customarily charged by the dealer for parts or labor by an unduly burdensome or time-consuming method or by requiring information that is unduly burdensome or time-consuming to provide calculations, including part-by-part or transaction-by-transaction calculations. A new motor vehicle dealer may not declare any new retail rate more than once in any twelve-month period. A manufacturer or distributor may use the repair orders submitted by a new motor vehicle dealer under subsection E of this section to validate any or all of a new motor vehicle dealer's current warranty reimbursement rates or require a new motor vehicle dealer to submit, not more than once every twelve months, repair orders pursuant to this section to validate the new motor vehicle dealer's retail rate or rates. If a manufacturer or distributor finds that any of a new motor vehicle dealer's retail rates have declined, the manufacturer or distributor may prospectively reduce the respective warranty reimbursement rate.

L. If the new motor vehicle dealer has otherwise properly submitted the claim pursuant to the manufacturer's or distributor's warranty or incentive program guidelines, a manufacturer or distributor may not deny a claim by a new motor vehicle dealer for reimbursement of any warranty parts or service compensation or any consumer or dealer incentive compensation based solely on a new motor vehicle dealer's incidental failure to comply with a specific claim processing requirement that does not put into question the legitimacy of the claim. If a claim is rejected for such an incidental requirement the new motor vehicle dealer may correct or complete and resubmit a previously submitted warranty or incentive claim for a period of up to sixty days following the new motor vehicle dealer's receipt of first notice of the failure from the manufacturer or distributor. A manufacturer or distributor is not required to approve any such warranty or incentive claim if all claim processing requirements are not complied with by the new motor vehicle dealer within the time periods prescribed by this section.

M. If a new motor vehicle dealer sells or leases a vehicle to a customer who exports the vehicle to a foreign country, unless the manufacturer, distributor or importer proves that the new motor vehicle dealer knew or reasonably should have known that the vehicle would be exported, a manufacturer, distributor or importer shall not do any of the following:

1. Refuse to sell, allocate or deliver new motor vehicles to the new motor vehicle dealer.

2. Charge back to or withhold payments or other things of value from the new motor vehicle dealer that the new motor vehicle dealer otherwise would be eligible for under an incentive program or contest.

3. Prevent a new motor vehicle dealer from participating in any sales promotion or program.

4. Take an adverse action against a new motor vehicle dealer, including reducing vehicle allocations or terminating or threatening to terminate a dealer.

N. There is a rebuttable presumption that the new motor vehicle dealer described in subsection M of this section did not know or should not have reasonably known that the vehicle described in subsection M of this section would be exported. The presumption may be rebutted by a preponderance of the evidence that the new motor vehicle dealer knew or should have reasonably known that the vehicle was to be exported.

O. If a timely protest is filed under subsection E of this section, the director shall:

1. Enter an order fixing the time and place of a hearing on the protest. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail a copy of the order to the dealer and the manufacturer.

3. Appoint a member of the Arizona state bar licensed attorney in this state who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

P. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

Q. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge's services. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this section.

R. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions of law and enter a final order.

S. A party to the hearing before the administrative law judge may appeal pursuant to title 12, chapter 7, article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

T. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond may not exceed the lesser of fifty thousand dollars or ten percent of the appealing party's net worth. The appealing party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state pursuant to title 6 or bonds of the United States government.

U. A manufacturer shall compensate its new motor vehicle dealers for all labor and parts that are required to perform recall repairs. The compensation shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section. If parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by the new motor vehicle dealer that is authorized to sell new motor vehicles of the same line-make of the recalled motor vehicle within thirty days after the manufacturer issues a stop-sale or do not drive notification on the used motor vehicle, the manufacturer shall compensate the new motor vehicle dealer at a rate of at least 1.5 percent of the value of the used motor vehicle per month, or prorated portion of a month when applicable, until a date when the recall parts or a remedy are is delivered to the dealer or when the vehicle is no longer in the new motor vehicle dealer's inventory.

V. The value of the used motor vehicle that is subject to a stop-sale or do not drive notification shall be the average trade-in value for used vehicles as determined by reference to a nationally recognized publication that reports on used motor vehicle values.

W. It is a violation of this section for a manufacturer to reduce the amount of compensation that is otherwise owed to a new motor vehicle dealer, whether through a chargeback, removal from an incentive program, reduction in amount owed under an incentive program or any other means, because the new motor vehicle dealer has submitted a claim for compensation under subsection U of this section or was otherwise compensated for a vehicle that is subject to a recall if a stop-sale or do not drive notification has been issued.

X. All reimbursement claims that are made by a new motor vehicle dealer pursuant to subsection U of this section for recall remedies or repairs or for compensation if no part or repair is reasonably available and the used motor vehicle is subject to a stop-sale or do not drive notification shall be made in compliance with at least one of the following:

1. In a like manner as a warranty reimbursement claim under this section.

2. At a rate set forth in a national compensation program that the manufacturer manages if the compensation provided to the new motor vehicle dealer equals or exceeds the reimbursement level for a claim that is determined as a warranty reimbursement claim pursuant to paragraph 1 of this subsection.

3. At the level set forth in the national compensation program without further consideration if the manufacturer and new motor vehicle dealer agree.

Y. The manufacturer shall approve or disapprove a claim within thirty days after it is submitted to the manufacturer in the manner and on the forms the manufacturer reasonably prescribes. The manufacturer shall pay a claim within thirty days after approval of the claim. Any claim that is not specifically disapproved in writing by the manufacturer within thirty days following the manufacturer's receipt of the claim is deemed approved.

Z. Subsections U through Y of this section apply only to used motor vehicles that are subject to safety or emissions recalls pursuant to and recalled in accordance with federal law and for which a stop-sale or do not drive notification has been issued and to motor vehicle manufacturers and new motor vehicle dealers with used motor vehicles of the line-make that the new motor vehicle dealer is franchised to sell or on which the new motor vehicle dealer is authorized to perform recall repairs.

AA. Subsections U through Y of this section apply only to new motor vehicle dealers holding an affected used motor vehicle for sale that was any of the following:

1. In inventory at the time the stop-sale or do not drive notification was issued.

2. Taken in the used motor vehicle inventory of the new motor vehicle dealer as a consumer trade-in incident to the purchase of a new motor vehicle from the new motor vehicle dealer after the stop-sale or do not drive notification was issued.

3. Properly taken in the used motor vehicle inventory of the new motor vehicle dealer as a lease return vehicle returned to the new motor vehicle dealer in accordance with the terms of the applicable contract.

BB. For the purposes of this section, "stop-sale or do not drive notification" means a notification that is issued by a manufacturer to some or all of its franchised dealerships and that states that certain used motor vehicles in the dealerships' inventories shall not be sold or leased, either at retail or wholesale, due to a federal safety defect or noncompliance recall or a federal or California emissions recall. END_STATUTE

Sec. 20. Section 28-4456, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4456. Hearing on objection; appeal

A. If a timely objection has been filed and, if the objection is to the establishment of a new motor vehicle dealership, the objection meets both of the reasons prescribed by section 28-4454, subsection B, the director shall:

1. Enter an order fixing the time and place of a hearing on the objection. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail, with return receipt requested, a copy of the order to the same persons entitled to receive a copy of the notice provided for in section 28-4453.

3. Appoint a member of the Arizona licensed attorney in this state bar who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

B. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

C. At the hearing the franchisor has the burden of proof to establish that good cause exists to terminate or not renew the franchise. If there is an objection to the establishment of a new motor vehicle dealership, the administrative law judge shall determine that good cause does or does not exist to establish the proposed dealership.

D. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge's services.

E. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this article.

F. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions and enter a final order.

G. A party to the hearing before the administrative law judge may appeal pursuant to title 12, chapter 7, article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

H. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond shall not exceed the lesser of fifty thousand dollars $50,000 or ten per cent percent of the appealing party's net worth. The party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state or bonds of the United States government. END_STATUTE

Sec. 21. Section 32-1156, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1156. Hearings

A. Title 41, chapter 6, article 10 applies to hearings under this chapter.

B. In a hearing or rehearing conducted pursuant to this section a company may be represented by an officer or employee who is not a member of the licensed attorney in this state bar if both:

1. The company has specifically authorized the officer or employee to represent it.

2. The representation is not the officer's or employee's primary duty to the company but is secondary to the officer's or employee's duties relating to the management or operation of the company. END_STATUTE

Sec. 22. Section 32-2199.01, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2199.01. Hearing; rights and procedures

A. For a dispute between an owner and a condominium association or planned community association that is regulated pursuant to title 33, chapter 9 or 16, the owner or association may petition the department for a hearing concerning violations of condominium documents or planned community documents or violations of the statutes that regulate condominiums or planned communities. The petitioner shall file a petition with the department and pay a filing fee in an amount to be established by the commissioner. The filing fee shall be deposited in the condominium and planned community hearing office fund established by section 32-2199.05. On dismissal of a petition at the request of the petitioner before a hearing is scheduled or by stipulation of the parties before a hearing is scheduled, the filing fee shall be refunded to the petitioner. The department does not have jurisdiction to hear:

1. Any dispute among or between owners to which the association is not a party.

2. Any dispute between an owner and any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling a condominium as defined in section 33-1202 or any property or improvements within a planned community as defined in section 33-1802, including any person, firm, partnership, corporation, association or other organization licensed pursuant to this chapter, arising out of or related to the design, construction, condition or sale of the condominium or any property or improvements within a planned community.

B. The petition shall be in writing on a form approved by the department, shall list the complaints and shall be signed by or on behalf of the persons filing and include their addresses, stating that a hearing is desired, and shall be filed with the department.

C. On receipt of the petition and the filing fee the department shall mail by certified mail a copy of the petition along with notice to the named respondent that a response is required within twenty days after mailing of the petition showing cause, if any, why the petition should be dismissed.

D. After receiving the response, the commissioner or the commissioner's designee shall promptly review the petition for hearing and, if justified, refer the petition to the office of administrative hearings. The commissioner may dismiss a petition for hearing if it appears to the commissioner's satisfaction that the disputed issue or issues have been resolved by the parties.

E. Failure of the respondent to answer is deemed an admission of the allegations made in the petition, and the commissioner shall issue a default decision.

F. Informal disposition may be made of any contested case.

G. Either party or the party's authorized agent may inspect any file of the department that pertains to the hearing, if the authorization is filed in writing with the department.

H. At a hearing conducted pursuant to this section, a corporation may be represented by a corporate officer, employee or contractor of the corporation who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.

2. The representation is not the officer's, employee's or contractor of the corporation's primary duty to the corporation but is secondary or incidental to the officer's, employee's or contractor of the corporation's, limited liability company's, limited liability partnership's, sole proprietor's or other lawfully formed and operating entity's duties relating to the management or operation of the corporation. END_STATUTE

Sec. 23. Section 32-2199.04, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2199.04. Rehearing; appeal

A. A person aggrieved by a decision of the administrative law judge may apply for a rehearing by filing with the commissioner a petition in writing pursuant to section 41-1092.09. Within ten days after filing such petition, the commissioner shall serve notice of the request on the other party by mailing a copy of the petition in the manner prescribed in section 32-2199.01 for notice of hearing.

B. The filing of a petition for rehearing temporarily suspends the operation of the administrative law judge's action. If the petition is granted, the administrative law judge's action is suspended pending the decision on the rehearing.

C. In the order granting or denying a rehearing, the commissioner shall include a statement of the particular grounds and reasons for the commissioner's action on the petition and shall promptly mail a copy of the order to the parties who have appeared in support of or in opposition to the petition for rehearing.

D. In a rehearing conducted pursuant to this section, a corporation may be represented by a corporate officer or employee who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized such officer or employee to represent it.

2. Such representation is not the officer's or employee's primary duty to the corporation but is secondary or incidental to such officer's or employee's duties relating to the management or operation of the corporation. END_STATUTE

Sec. 24. Section 33-741, Arizona Revised Statutes, is amended to read:

START_STATUTE33-741. Definitions

In this article, unless the context otherwise requires:

1. "Account servicing agent" means a joint agent of seller and purchaser, appointed under the contract or under a separate agreement executed by the seller and the purchaser, to hold documents and collect monies due under the contract, who does business under the laws of this state as a bank, trust company, escrow agent, savings and loan association, insurance company or real estate broker, or who is licensed, chartered or regulated by the federal deposit insurance corporation or the comptroller of the currency, or who is a member of the licensed attorney in this state bar of Arizona.

2. "Contract" means a contract for conveyance of real property, a contract for deed, a contract to convey, an agreement for sale or any similar contract through which a seller has conveyed to a purchaser equitable title in property and under which the seller is obligated to convey to the purchaser the remainder of the seller's title in the property, whether legal or equitable, on payment in full of all monies due under the contract. This article does not apply to purchase contracts and receipts, escrow instructions or similar executory contracts which that are intended to control the rights and obligations of the parties to executory contracts pending the closing of a sale or purchase transaction.

3. "Monies due under the contract" means:

(a) Any principal and interest payments which that are currently due and payable to the seller.

(b) Any principal and interest payments which that are currently due and payable to other persons who hold existing liens and encumbrances on the property, the unpaid principal portion of which constitutes a portion of the purchase price, as stated in the contract, if the principal and interest payments were paid by the seller pursuant to the terms of the contract and to protect his the seller's interest in the property.

(c) Any delinquent taxes and assessments, including interest and penalty, due and payable to any governmental entity authorized to impose liens on the property which that are the purchaser's obligations under the contract, if the taxes and assessments were paid by the seller pursuant to the terms of the contract and to protect his the seller's interest in the property.

(d) Any unpaid premiums for any policy or policies of insurance which that are the obligation of the purchaser to maintain under the contract, if the premiums were paid by the seller pursuant to the terms of the contract and to protect his the seller's interest in the property.

4. "Payoff deed" means the deed that the seller is obligated to deliver to the purchaser on payment in full of all monies due under the contract to convey to the purchaser the remainder of the seller's title in the property, whether legal or equitable, as prescribed by the terms of the contract.

5. "Property" means the real property described in the contract and any personal property included under the contract.

6. "Purchaser" means the person or any successor in interest to the person who has contracted to purchase the seller's title to the property which that is the subject of the contract.

7. "Seller" means the person or any successor in interest to the person who has contracted to convey his title to the property which that is the subject of the contract. END_STATUTE

Sec. 25. Section 33-803, Arizona Revised Statutes, is amended to read:

START_STATUTE33-803. Trustee of trust deed; qualifications

A. Except as provided in subsection B of this section, the trustee of a trust deed shall be:

1. An association or corporation doing business under the laws of this state as a bank, trust company, savings and loan association, credit union, insurance company, escrow agent or consumer lender.

2. A person who is a member of the licensed attorney in this state bar of Arizona.

3. A person who is a licensed real estate broker under the laws of this state.

4. A person who is a licensed insurance producer under the laws of this state.

5. An association or corporation that is licensed, chartered or regulated by the federal deposit insurance corporation, the comptroller of the currency, the federal home loan bank, the national credit union administration, the farm credit administration, the federal reserve board or any successors.

6. The parent corporation of any association or corporation referred to in this subsection or any corporation all the stock of which is owned by or held solely for the benefit of any such association or corporation referred to in this subsection.

B. An individual trustee of a trust deed who qualifies under subsection A of this section shall not be the beneficiary of the trust, but such restriction shall not preclude a corporate or association trustee that qualifies under subsection A of this section and while acting in good faith from being the beneficiary, or after appointment from acquiring the interest of the beneficiary by succession, conveyance, grant, descent or devise.

C. A trustee of a trust deed who qualifies under subsection A of this section shall not lend or delegate the trustee's name or corporate capacity to any individual or entity that does not qualify as a trustee of a trust deed. An individual, company, association or corporation shall not circumvent the requirements of subsection A of this section by acting in concert with a nonqualifying trustee. END_STATUTE

Sec. 26. Section 40-243, Arizona Revised Statutes, is amended to read:

START_STATUTE40-243. Conduct of hearings and investigations; representation by corporate officer or employee; arbitration

A. All hearings and investigations before the commission or a commissioner shall be governed by this article, and by rules of practice and procedure adopted by the commission. Neither the commission nor a commissioner shall be bound by technical rules of evidence, and no informality in any proceeding or in the manner of taking testimony before the commission or a commissioner shall invalidate any order, decision, rule or regulation made, approved or confirmed by the commission.

B. In a hearing or rehearing conducted pursuant to this article, a public service corporation may be represented by a corporate officer or employee who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized the officer or employee to represent it.

2. The representation is not the officer's or employee's primary duty for the corporation but is secondary or incidental to such the officer's or employee's duties relating to the management or operation of the corporation.

C. The commission may adopt or administer arbitration procedures to resolve complaints or disputes brought by a party against a telecommunications company, except that the commission shall not subject a wireless provider to arbitration unless the wireless provider and customer consent in writing. This section does not prohibit the commission from arbitrating disputes or complaints against a wireline service provider, involving telecommunications services contained in the bundle of services, to the extent the commission has jurisdiction as authorized pursuant to this chapter. END_STATUTE

Sec. 27. Section 41-151.18, Arizona Revised Statutes, is amended to read:

START_STATUTE41-151.18. Arizona uniform laws commission; membership; duties

A. The Arizona uniform laws commission is established consisting of four members who are members of a licensed attorneys in this state bar association and who are appointed by the governor. These members are in addition to the members who have attained life membership in the national conference of commissioners on uniform state laws. The term of office of the members is six years except for lifetime members. An appointment to fill a vacancy caused other than by expiration of a term is for the remainder of the unexpired term.

B. Members of the Arizona uniform laws commission are not eligible for compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

C. The Arizona uniform laws commission shall review efforts nationally to enact uniform laws and recommend to the governor and the legislature the adoption of uniform legislation that the commission deems desirable.

D. The secretary of state may maintain membership on the Arizona uniform laws commission. On or before October 1 of each year, the Arizona uniform laws commission shall submit a letter to each member of the legislature that includes a website link to the current list of the uniform acts that is prepared by the national conference of commissioners on uniform state laws for the purpose of informing the members of the legislature about current model legislation that is available to the legislators. END_STATUTE

Sec. 28. Section 41-511.23, Arizona Revised Statutes, is amended to read:

START_STATUTE41-511.23. Conservation acquisition board; land conservation fund; conservation donation and public conservation accounts; livestock and crop conservation fund

A. The conservation acquisition board is established, as an advisory body to the Arizona state parks board, consisting of the following members who are appointed by the governor, at least one of whom shall be experienced in soliciting money from private sources:

1. One state land lessee.

2. One member who is qualified by experience in managing large holdings of private land for income production or conservation purposes.

3. One member of the who is a licensed attorney in this state bar of Arizona and who is experienced in the practice of private real estate law.

4. One real estate appraiser who is licensed or certified under title 32, chapter 36.

5. One member who is qualified by experience in marketing real estate.

6. One representative of a conservation organization.

7. One representative of a state public educational institution.

B. The governor shall designate a presiding member of the board. The term of office is five years except that initial members shall assign themselves by lot to terms of one, two, three, two members for four and two members for five years in office.

C. The conservation acquisition board shall:

1. Solicit donations to the conservation donation account.

2. Consult with entities such as private land trusts, state land lessees, the state land department, the Arizona state parks board and others to identify conservation areas that are reclassified pursuant to section 37-312 and that are suitable for funding.

3. Recommend to the Arizona state parks board appropriate grants from the land conservation fund.

D. The land conservation fund is established consisting of the following accounts:

1. The conservation donation account consisting of monies received as donations. Donations to the account are subject to any lawful conditions the donor may prescribe, including any conditions on the use of the money or reversion to the donor. Monies in the account are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

2. The public conservation account consisting of monies appropriated to the account from the state general fund and monies from any other designated source. In fiscal years 2000-2001 through 2010-2011, the sum of twenty million dollars is appropriated each fiscal year from the state general fund to the public conservation account in the land conservation fund for the purposes of this section. Monies in the account are appropriated for the purposes of this section, and the Arizona state parks board may spend monies in the account without further legislative authorization. Each expenditure of monies from the public conservation account for purposes listed under subsection G, paragraph 2 of this section shall be matched by an equal expenditure of monies from the conservation donation account or from other private or governmental sources.

E. If the legislature fails to appropriate monies to the public conservation account in a fiscal year, and if there are no other monies in the public conservation account, the Arizona state parks board may either grant nothing from the fund in that year or, on recommendation by the conservation acquisition board, may grant available monies in the conservation donation account for purposes authorized in subsection G of this section.

F. The monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

G. Monies in the public conservation account, with matching monies from the conservation donation account, are appropriated as follows:

1. A total of two million dollars $2,000,000 each fiscal year to the livestock and crop conservation fund. The fund is established for the purposes of this paragraph. Monies in the fund are continuously appropriated to the Arizona department of agriculture for the exclusive purpose of granting monies to individual landowners and grazing and agricultural lessees of state or federal land who contract with the Arizona department of agriculture to implement conservation based management alternatives using livestock or crop production practices, or reduce livestock or crop production, to provide wildlife habitat or other public benefits that preserve open space and for administrative expenses as provided by this paragraph. The department shall administer the fund. On notice from the director of the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. For the purposes of granting monies from the fund pursuant to this paragraph, the department:

(a) Shall develop guidelines and criteria for implementation of this program that shall include requiring as part of the application a letter describing the intended use for the grant money.

(b) Shall give priority to lessees of state or federal land who reduce livestock production to provide public benefits such as wildlife species conservation or wildlife habitat.

(c) Shall not grant more than fifty per cent percent of the monies in the fund with respect to land in one county in any fiscal year.

(d) Is exempt from chapter 6 of this title with respect to adopting rules, except that the department shall provide for public notice and sixty days for public comment on the annual grant guidelines and criteria, including public hearings.

(e) Shall award all grants pursuant to chapter 24, article 1 of this title.

(f) Shall require each grantee to submit to the department, within twelve months after receiving the grant, a written report detailing how grant monies were used to achieve the project described in the letter submitted as part of the application. If the project is longer than one year, a written report shall be submitted to the department on an annual basis until the project is complete.

(g) May use not more than ten per cent percent of the monies appropriated to the fund in any fiscal year for the purposes of administering the program.

(h) Shall prepare a report of the disposition of monies appropriated to the fund each fiscal year and provide a copy of the report to the governor, to the Arizona state parks board and to any person who requests a copy.

2. The remainder of the monies to the Arizona state parks board for the exclusive purpose of granting monies to the state or any of its political subdivisions, or to a nonprofit organization that is exempt from federal income taxation under section 501(c) of the internal revenue code and that has the purpose of preserving open space, for the following purposes only:

(a) To purchase or lease state trust lands that are classified as suitable for conservation purposes pursuant to title 37, chapter 2, article 4.2. A grant of money under this subdivision to a nonprofit organization is conditioned on the organization providing reasonable public access to any land that is wholly or partly purchased with that money. The organization shall agree with the Arizona state parks board that it will impose a restrictive covenant, running with the title to the land, granting such access and providing for reversion to this state of any interest in the property acquired with money granted under this subdivision on the failure to comply with the terms of the covenant. The Arizona state parks board and the state land commissioner have standing to either enforce the covenant or recover the amount of the grant from the current owner, with interest from the date the grant was awarded to the nonprofit organization.

(b) To purchase the development rights of state trust lands throughout this state under the following conditions:

(i) The development rights shall be sold at public auction as provided in section 37-258.01.

(ii) The lessee of the state trust land at the time the development rights are purchased shall be notified of the purchase in writing.

(iii) The purchase of the development rights shall not result in cancellation or modification of the current lease.

(iv) The purchase of the development rights shall not affect the existing lessee's current economic use of the land and rights pursuant to title 37, chapter 2, article 4.2.

(v) As a condition of the sale of the development rights, the purchaser shall agree in perpetuity not to exercise the development rights and that the land shall remain as open space.

(vi) The state trust land shall retain any other rights and attributes as prescribed by law at the time of the purchase.

H. For the purposes of subsection G, paragraph 2 of this section:

1. The Arizona state parks board shall not grant more than fifty per cent percent of the monies with respect to land in one county in any fiscal year.

2. A grant of money is valid for eighteen months and may be extended one time for twelve additional months if a required public auction has not been held.

3. The Arizona state parks board may adopt rules to establish qualifications of nonprofit organizations for purposes of applying for and receiving money granted.

4. The owner of property that is wholly or partly acquired with money granted shall not restrict or unreasonably limit access to private lands. Any sale of land with money granted shall include a condition requiring that permanent access to private lands be allowed.

I. The Arizona state parks board shall administer the land conservation fund. On notice from the board, the state treasurer shall invest and divest monies in either account in the fund as provided by section 35-313, and monies earned from investments shall be credited to a separate administration account to pay the board's expenses of administering the land conservation and acquisition program under subsection G, paragraph 2 of this section, which shall not exceed five per cent percent of the amount deposited in the public conservation account in any fiscal year or five hundred thousand dollars $500,000, whichever is less. Investment earnings in excess of five hundred thousand dollars $500,000 are appropriated to the Arizona state parks board for the purpose of operating state parks.

J. Members of the conservation acquisition board may be reimbursed for travel and lodging expenses and per diem subsistence allowances incurred while on public business for the board. Reimbursement amounts shall not exceed those allowed under title 38, chapter 4, article 2. END_STATUTE

Sec. 29. Section 41-1481, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1481. Filing charges; investigation; findings; conciliation; compliance proceedings; appeals; attorney fees; violation; classification

A. A charge under this section shall be filed within one hundred eighty days after the alleged unlawful employment practice occurred. A charge is deemed filed on receipt by the division from or on behalf of a person claiming to be aggrieved or, if filed by a member of the division, when executed by the member on oath or affirmation. A charge is deemed filed by or on behalf of a person claiming to be aggrieved if received from the United States equal employment opportunity commission. A charge shall be in writing on oath or affirmation and shall contain the information, including the date, place and circumstances of the alleged unlawful employment practice, and be in the form as the division requires. The division shall not make charges public.

B. Whenever a charge is filed by or on behalf of a person claiming to be aggrieved or by a member of the division, referred to as the charging party, alleging that an employer, employment agency, labor organization or joint labor-management committee controlling apprenticeship or other training or retraining programs, including on-the-job training programs, has engaged in an unlawful employment practice, the division shall serve notice of and a copy of the charge on the employer, employment agency, labor organization or joint labor-management committee, referred to as the respondent, within ten days and shall investigate the charge. If the division determines after the investigation that there is not reasonable cause to believe that the charge is true, the division shall enter an order determining the same and dismissing the charge and shall notify the charging party and the respondent of its action. If the division determines after the investigation that there is reasonable cause to believe that the charge is true, the division shall enter an order containing its findings of fact and shall endeavor to eliminate the alleged unlawful employment practice by informal methods of conference, conciliation and persuasion. Any party to the informal proceeding may be represented by counsel. Counsel need not be a member of the licensed attorney in this state bar if counsel is licensed to practice law in any other state or territory of the United States. Nothing said or done during and as a part of the informal endeavors may be made public by the division or its officers or employees or used as evidence in a subsequent proceeding without the written consent of the persons concerned. If a civil action resulting from a charge is commenced in any federal or state court, evidence collected by or submitted to the division during the investigation of the charge and the source of the evidence shall be subject to discovery by the parties to the civil action. Any person who makes public information in violation of this subsection is guilty of a class 1 misdemeanor. The division shall make its determination on reasonable cause as promptly as possible and as far as practicable not later than sixty days from after the filing of the charge. If more than two years have elapsed after the alleged unlawful employment practice occurred, and if the charging party has received a notice of right to sue, the division may cease investigation of a charge without reaching a determination.

C. All conciliation agreements shall provide that the charging party waives, releases and covenants not to sue the respondent or claim against the respondent in any forum with respect to the matters which that were alleged as charges filed with the division, subject to performance by the respondent of the promises and representations contained in the conciliation agreement. The charging party or the respondent may prepare a conciliation agreement that the division shall submit to the other party and that, if accepted by the other party, shall be accepted by the division.

D. If within thirty days after the division has made a determination that reasonable cause exists to believe that the charge is true the division has not accepted a conciliation agreement to which the charging party and the respondent are parties, the division may bring a civil action against the respondent, other than the state, named in the charge. The charging party shall have the right to intervene in a civil action brought by the division. If a charge filed with the division pursuant to subsection A of this section is dismissed by the division or if within ninety days from after the filing of such charge the division has not filed a civil action under this section or has not entered into a conciliation agreement with the charging party, the division shall so notify the charging party. After providing the notice a civil action may be brought against the respondent named in the charge by the charging party or, if that charge was filed by a member of the division, by any person whom the charge alleges was aggrieved by the alleged unlawful employment practice. In no event shall any An action may not be brought pursuant to this article more than one year after the charge to which the action relates has been filed. On application by the complainant and in the circumstances as the court may deem just, the court may appoint an attorney for such complainant and may authorize the commencement of the action without the payment of fees, costs or security. On timely application, the court may in its discretion allow the division to intervene in civil actions in which the state is not a defendant on certification that the case is of general public importance. Upon On request the court may stay further proceedings for not more than sixty days pending the further efforts of the parties or the division to obtain voluntary compliance.

E. Whenever a charge is filed with the division and the division concludes on the basis of a preliminary investigation that prompt judicial action is necessary to carry out the purposes of this article or article 4 of this chapter, the division may bring an action for appropriate temporary or preliminary relief pending final disposition of the charge. Any temporary restraining order or other order granting preliminary or temporary relief shall be issued in accordance with the Arizona rules of civil procedure. The court having jurisdiction over the proceedings shall assign such action for hearing at the earliest practicable date and cause the action to be expedited in every way.

F. The court shall assign any action brought under this article for hearing at the earliest practicable date and cause the action to be in every way expedited. If the action has not been scheduled for trial within one hundred twenty days after issue has been joined, the judge may appoint a master pursuant to rule 53 of the Arizona rules of civil procedure.

G. If the court finds that the defendant has intentionally engaged in or is intentionally engaging in an unlawful employment practice alleged in the complaint, the court may enjoin the defendant from engaging in the unlawful employment practice and order the affirmative action as may be appropriate. Affirmative action may include, but is not limited to, reinstatement or hiring of employees with or without back pay payable by the employer, employment agency or labor organization responsible for the unlawful employment practice or any other equitable relief as the court deems appropriate. Back pay liability shall not accrue from a date more than two years before the filing of the charge with the division. Interim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall reduce the back pay otherwise allowable. An order of the court shall not require the admission or reinstatement of an individual as a member of a union or the hiring, reinstatement or promotion of an individual as an employee or the payment to the individual of any back pay if the individual was refused admission, suspended or expelled or was refused employment or advancement or was suspended or discharged for any reason other than discrimination on account of race, color, religion, sex, age, disability or national origin or a violation of section 41-1464.

H. In any case in which an employer, employment agency or labor organization fails to comply with an order of a court issued in a civil action brought under this section, a party to the action or the division on the written request of a person aggrieved by such failure may commence proceedings to compel compliance with the order.

I. Any civil action brought under this section and any proceedings brought under subsection H of this section are subject to appeal as provided in sections 12-120.21, 12-120.22 and 12-120.24.

J. In any action or proceeding under this section the court may allow the prevailing party, other than the division, a reasonable attorney fee as part of the costs. END_STATUTE

Sec. 30. Section 41-4037, Arizona Revised Statutes, is amended to read:

START_STATUTE41-4037. Hearing; representation

In a hearing conducted pursuant to this article, a corporation may be represented by a corporate officer or employee who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized the officer or employee to represent it.

2. The representation is not the officer's or employee's primary duty to the corporation but is secondary or incidental to the officer's or employee's duties relating to the management or operation of the corporation. END_STATUTE

Sec. 31. Section 41-4038, Arizona Revised Statutes, is amended to read:

START_STATUTE41-4038. Rehearing

A. Any party may apply for a rehearing by filing with the director a motion pursuant to chapter 6, article 10 of this title.

B. The filing of a motion for rehearing shall suspend the operation of the administrative law judge's action, except for an action which that upholds a cease and desist order, and permits the licensee or the person who was issued a citation to continue to do business pending denial or granting of the petition. If the motion is granted, the administrative law judge's action is suspended pending the decision of the director upon on the rehearing.

C. In the order granting or denying a rehearing, the director shall include a statement of the particular grounds and reasons for the director's action on the petition and shall promptly mail a copy of the order to the parties who have appeared in support of or in opposition to the petition for rehearing. If a rehearing is granted, the administrative law judge shall set the matter for further hearing on due notice to the parties. After submission of the matter upon on rehearing, the administrative law judge shall render a decision in writing and give notice of the decision in the same manner as of a decision rendered upon on an original hearing.

D. A rehearing may be granted for any of the following reasons materially affecting the moving party's rights:

1. Irregularity in the proceedings before the director, or any order or abuse of discretion which that deprived the moving party of a fair hearing.

2. Misconduct by the director, the director's employees or the administrative law judge.

3. Accident or surprise that could not have been prevented by ordinary prudence.

4. Newly discovered material evidence that could not with reasonable diligence have been discovered and produced at the original hearing.

5. Excessive or insufficient penalties.

6. Error in the admission or rejection of evidence or other errors of law occurring at the hearing.

7. That the decision is not justified by the evidence or is contrary to law.

E. If an order denying a rehearing or a decision given upon on a rehearing results in immediate suspension or revocation of a license, then the operation of such order or decision shall be suspended until ten days after service of notice of the suspension or revocation.

F. In a rehearing pursuant to this section, a corporation may be represented by a corporate officer or employee who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized the officer or employee to represent it.

Sec. 32. Section 41-4062, Arizona Revised Statutes, is amended to read:

START_STATUTE41-4062. Hearing; rights and procedures; definitions

A. A person that is subject to title 33, chapter 11 or a party to a rental agreement entered into pursuant to title 33, chapter 11 may petition the department for a hearing concerning violations of the Arizona mobile home parks residential landlord and tenant act by filing a petition with the department and paying a nonrefundable filing fee in an amount to be established by the director. All monies collected shall be deposited in the Arizona department of housing program fund established by section 41-3957 and are not refundable.

B. The petition shall be in writing on a form approved by the department, list the complaints, be signed by or on behalf of the persons filing and include their addresses, state that a hearing is desired and be filed with the department.

C. On receipt of the petition and the filing fee, the department shall mail to the named respondent by certified mail a copy of the petition along with notice that a response showing cause, if any, why the petition should be dismissed is required within twenty days after mailing of the petition.

D. After receiving the response, the director or the director's designee shall promptly review the petition for hearing and, if justified, refer the petition to the office of administrative hearings. The director may dismiss a petition for hearing if it appears to the director's satisfaction that the disputed issue or issues have been resolved by the parties.

E. Failure of the respondent to answer is deemed an admission of the allegations made in the petition, and the director shall issue a default decision.

F. Informal disposition may be made of any contested case.

G. Either party or the party's authorized agent may inspect any file of the department that pertains to the hearing if the authorization is filed in writing with the department.

1. The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.

I. For the purposes of this section:

1. "Department" means the Arizona department of housing.

2. "Director" means the director of the department. END_STATUTE

Sec. 33. Section 41-4065, Arizona Revised Statutes, is amended to read:

START_STATUTE41-4065. Rehearing; appeal; definition

A. A person aggrieved by a decision of the administrative law judge may apply for a rehearing by filing with the director a petition in writing pursuant to section 41-1092.09. Within ten days after filing such the petition, the director shall serve notice of the request on the other party by mailing a copy of the petition in the manner prescribed in section 41-4062 for notice of hearing.

D. In a rehearing conducted pursuant to this section, a corporation may be represented by a corporate officer or employee who is not a member of the licensed attorney in this state bar if:

1. The corporation has specifically authorized such officer or employee to represent it.

E. For the purposes of this section, "director" means the director of the Arizona department of housing. END_STATUTE

Sec. 34. Section 42-16153, Arizona Revised Statutes, is amended to read:

START_STATUTE42-16153. Members

A. The state board of equalization consists of:

1. Ten members who are appointed by the board of supervisors of each county with a population of more than five hundred thousand persons according to the most recent United States decennial census.

2. Ten members who are appointed by the governor from each county with a population of more than five hundred thousand persons according to the most recent United States decennial census.

3. An additional member who is appointed by the governor, who is designated as chairman and who serves in a full-time capacity.

B. Other than the chairman, members of the state board of equalization shall be selected on the basis of their work experience and other qualifications in at least one of the following categories:

1. Experience in at least three of the preceding eight years in property valuation, property tax appeals or appraising real property.

2. A certified general appraiser under section 32-3612.

3. A property valuation hearing officer or member of the state board of equalization, or any predecessor to the board, for at least three of the preceding eight years.

4. A member of the licensed attorney in this state bar of Arizona with at least three years of experience in property valuation or condemnation practice.

5. Experience in at least three of the preceding eight years as a real estate broker.

C. Members who are appointed by the county board of supervisors serve at the pleasure of the county board for terms that expire at the same time as the elective term of the county supervisors. Members who are appointed by the governor serve a term of five years. Members may be reappointed.

D. Except as provided in section 42-16154, subsection A, members of the state board are eligible to receive:

1. Not more than three hundred dollars $300 per day for time spent in performing official duties, prorated for partial days spent on official duty.

2. Reimbursement for travel and other expenses as provided by law for other state officers.

E. Members who are appointed by a county shall be paid by the county. Members who are appointed by the governor shall be paid by the state.

F. A member of the state board of equalization shall not:

1. Hold any other public office under the laws of this state or a political subdivision of this state except a position on a board or commission that does not regularly interact with the state board of equalization.

2. Be a candidate for an elective office under the laws of this or any other state.

3. Hold any position of trust nor provide or engage in any occupation or business that would conflict with the duties of a member of the board.

4. Other than the chairman, have been employed by a county assessor or county attorney or by the department of revenue or the department of law within two years before appointment.

G. The governor may remove any member of the state board who was not appointed by a county board of supervisors for any of the following reasons:

1. Cause.

2. Failure to carry out the duties and responsibilities of the position.

3. Failure to follow the rules of the board.

4. Failure to follow the directions of the chairman as provided by law. END_STATUTE

Sec. 35. Section 44-1813, Arizona Revised Statutes, is amended to read:

START_STATUTE44-1813. Employment of personnel; criminal records check

A. The director, with the approval of the commission, may employ from time to time examiners, investigators who are commissioned peace officers, clerical employees and other officers and employees necessary for the administration of this chapter, and regulatory officers and employees who are members of the attorneys licensed in this state bar of Arizona who shall be paid at the same rate as the rate established by the department of administration for attorneys, and who shall perform the duties the director requires.

B. The director may obtain criminal history record information regarding applicants for employment for the purpose of hiring personnel. Before making a final offer of employment, the director shall require the preferred applicants to submit a full set of fingerprints. The director shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

C. The director shall not disclose information obtained pursuant to subsection B of this section except to the director's or the commission's staff solely for the purpose of the director's employment of the applicant. END_STATUTE