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  House Engrossed Senate Bill
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  State of Arizona
  Senate
  Forty-fifth Legislature
  Second Regular Session
  2002
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         CHAPTER 99
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      SENATE BILL 1164
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AN ACT

AMENDING SECTIONS 4-202, 5-107.01, 6-123, 20-142, 20-285, 20-289, 20-340.04, 32-921, 32-1122 AND 32-1722, ARIZONA REVISED STATUTES; AMENDING SECTION 32-2304, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1998, CHAPTER 142, SECTION 4; REPEALING SECTION 32-2304, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2000, CHAPTER 113, SECTION 128; AMENDING SECTIONS 44-1627, 44-1945, 44-3153, 44-3156 AND 44-3181, ARIZONA REVISED STATUTES; AMENDING TITLE 6, CHAPTER 1, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING SECTION 6-123.01; BLENDING MULTIPLE ENACTMENTS; RELATING TO FINGERPRINTING.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 4-202, Arizona Revised Statutes, is amended to read:

4-202. Qualifications of licensees; application; background information; prior convictions

A. Every spirituous liquor licensee, other than a club licensee, a corporation licensee, a limited liability company licensee or an out-of-state licensee, shall be a citizen of the United States and a bona fide resident of this state or a legal resident alien who is a bona fide resident of this state. If a partnership, each partner shall be a citizen of the United States and a bona fide resident of this state or a legal resident alien who is a bona fide resident of this state, except that for a limited partnership an individual general partner is required to meet the qualifications of an individual licensee, a corporate general partner is required to meet the qualifications of a corporate licensee and a limited partner is not required to be a bona fide resident of this state. If a corporation or limited liability company, it shall be a domestic corporation or a foreign corporation or a limited liability company which THAT has qualified to do business in this state. A person shall hold a club license, corporation license, limited liability company license, partnership license or out-of-state license through an agent who shall be a natural person and meet the qualifications for licensure, except that an agent for an out-of-state license as specified in section 4-209, subsection B, paragraph 2 need not be a resident of this state. For THE purposes of this subsection, "agent" means a person WHO IS designated by an applicant or licensee to receive communications from the department and to file documents and sign documents for filing with the department on behalf of the applicant or licensee.

B. A person shall file an application for a spirituous liquor license on a form prescribed by the director. The director shall require any applicant and may require any controlling person, other than a bank or licensed lending institution, to furnish background information and a complete, satisfactory TO SUBMIT A FULL set of fingerprints in a manner prescribed by the director TO THE DEPARTMENT. THE DEPARTMENT OF LIQUOR LICENSES AND CONTROL 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. If a license is issued or transferred when fees are waived pursuant to section 4-209, subsection I, no additional background check is required if the person has already completed a background investigation in connection with the continuing business.

C. Each applicant or licensee shall designate a person WHO SHALL BE responsible for managing the premises which. THE DESIGNATED PERSON may be the applicant or licensee. The manager shall be a natural person and SHALL meet all the requirements for licensure. The same person may be designated as the manager for more than one premises owned by the same licensee. Notice of a change in the manager shall be filed with the director within thirty days after such a change.

D. No license shall be issued to any person who, within one year prior to BEFORE application, has had a license revoked. No license shall be issued to or renewed for any person who, within five years prior to BEFORE application, has been convicted of a felony, or convicted of an offense in another state that would be a felony in this state. , provided that For a conviction of a corporation to be a basis for a denial under the provisions of this section, the limitations THAT ARE provided in section 4-210, subsection A, paragraph 8 shall apply. No corporation shall have its annual license issued or renewed unless it has on file with the department a list of its officers and directors and any stockholders who own ten per cent or more of the corporation.

E. The department OF LIQUOR LICENSES AND CONTROL shall receive criminal history record information from the department of public safety criminal identification section for applicants for employment with the department OF LIQUOR LICENSES AND CONTROL or for a license issued by the department OF LIQUOR LICENSES AND CONTROL.

F. The department shall not issue or renew a license for any person who on the request of the director fails to provide the department with complete financial disclosure statements indicating all financial holdings of the person or any other person in or relating to the license applied for, including all cosignatories on financial holdings, land, buildings, leases or other forms of indebtedness that the applicant has incurred or will incur.

Sec. 2. Section 5-107.01, Arizona Revised Statutes, is amended to read:

5-107.01. Necessity for permits for racing meetings; licenses for officials and other persons

A. A person, association or corporation shall not hold any racing meeting without having first obtained and having in full force and effect a permit THAT IS issued by the department.

B. No trainer, driver, jockey, apprentice jockey, horse owner, dog owner, greyhound racing kennel owner or operator, breeder of racing greyhounds, exercise boy, agent, jockey's agent, stable foreman, groom, valet, veterinarian, horseshoer, steward, stable watchman, starter, timer, judge, food and beverage concessionaire, manager or other person acting as a participant or official at any racing meeting including all employees of the pari-mutuel department and any other person or official the department deems proper shall participate in racing meetings without having first obtained and having in full force and effect a license or credentials THAT ARE issued by the department, pursuant to such rules as the commission shall make. Such THE DEPARTMENT SHALL NOT REVOKE A license shall not be revoked except for cause and after a hearing. For the purposes of this subsection, participate in a dog racing meeting includes breeding, raising, certifying as an Arizona bred and training a dog AND CERTIFYING AS AN ARIZONA BRED DOG.

C. Each person, association or corporation holding THAT HOLDS a permit or a license under this chapter shall comply with all rules and orders of the commission or department.

D. Any credential or license THAT IS issued by the department to a licensee shall be used only as prescribed by commission rule or order of the director. Use for purposes other than those prescribed is grounds for suspension or revocation or imposition of a civil penalty as provided in section 5-108.02, subsection E.

E. The department shall require ALL applicants for a permit or license to furnish SHALL SUBMIT TO THE DEPARTMENT A FULL SET OF fingerprints, and background information AND THE FEES THAT ARE REQUIRED pursuant to section 41-1750, subsection G. The department shall charge for fingerprints and background information THE DEPARTMENT OF RACING 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. THE APPLICANT SHALL PAY THE FINGERPRINT FEE AND COSTS OF THE BACKGROUND INVESTIGATION in an amount THAT IS determined by the department. For such purpose the department OF RACING and the department of public safety may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3. Such THE fees shall be credited pursuant to section 35-148.

F. The director may issue a temporary license to an owner, trainer, driver or jockey WHO IS duly licensed in another jurisdiction for special races or special circumstances for a period of not to exceed thirty days. THE DIRECTOR MAY ALLOW a trainer so licensed may be allowed by the director to complete an application for a temporary license for an owner if the owner is not immediately available to personally submit the application.

G. A licensed owner, lessee or trainer of a qualified horse who has applied to a permittee to be stabled at a track and WHO has not been granted a stall shall not be prohibited from bringing the horse on the race grounds for the purpose of entering the animal in races THAT ARE held by the permittee or for the purposes of qualifying to race solely for the reason that the animal is not being stabled at the track if the owner, lessee or trainer is in compliance with rules adopted by the commission. No dog racing permittee may prohibit a licensed owner or a licensed lessee of a qualified animal who has applied to be kenneled at the track and who has not been granted a kennel to enter the animal in races THAT ARE held by the permittee and to bring the animal on the track for purposes of qualifying to race or to race solely for the reason that the animal is not being kenneled at the track.

Sec. 3. Section 6-123, Arizona Revised Statutes, is amended to read:

6-123. Superintendent; powers

In addition to the other powers, express or implied, the superintendent may:

1. Exercise all powers THAT ARE necessary for the administration and enforcement of the laws and rules relating to financial institutions and enterprises.

2. In accordance with title 41, chapter 6, adopt rules THAT ARE necessary or appropriate to administer, enforce and accomplish the purposes of this title and adopt rules and issue orders limiting THAT LIMIT transactions between financial institutions or enterprises and the directors, officers or employees of the financial institutions or enterprises.

3. Require appropriate records, documents, information and reports from any financial institution or enterprise.

4. Submit to the department of public safety the name and fingerprints of any applicant, or licensee, ACTIVE MANAGER OR RESPONSIBLE INDIVIDUAL or the name AND FINGERPRINTS of any organizer, director or officer of any corporate applicant or licensee for:

(a) A banking permit.

(b) Permission to organize a savings and loan association or credit union.

(c) Any license.

(d) Any certificate.

(e) Authority to engage in interstate banking and branching in this state.

The department of public safety shall report the criminal record, if any, of such applicant, licensee or organizer, director or officer of such corporate applicant or licensee within ninety days of receipt of the request of the superintendent.

5. Employ appraisers to appraise any property THAT IS owned or held as security by any financial institution or enterprise. The reasonable expenses and compensation of such appraisers shall be paid by the financial institution or enterprise.

6. Hold membership in, pay dues to and attend the convention of the national and regional organizations of state officials occupying like offices or performing similar functions.

7. Cooperate with other regulatory agencies and professional associations to promote the efficient, safe and sound operation and regulation of interstate banking and branching activities, including the formulation of interstate examination policies and procedures and the drafting of model rules and agreements.

Sec. 4. Title 6, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 6-123.O1, to read:

6-123.O1. Fingerprint requirements; fees

A. BEFORE RECEIVING AND HOLDING A LICENSE, PERMIT, CERTIFICATE OR PERMISSION TO ORGANIZE A BANK, SAVINGS AND LOAN OR CREDIT UNION, THE SUPERINTENDENT MAY REQUIRE AN APPLICANT, LICENSEE, ACTIVE MANAGER OR RESPONSIBLE INDIVIDUAL OR AN ORGANIZER, DIRECTOR OR OFFICER OF ANY CORPORATE APPLICANT OR LICENSEE TO SUBMIT A FULL SET OF FINGERPRINTS AND FEES TO THE DEPARTMENT. THE STATE BANKING DEPARTMENT SHALL SUBMIT THE FINGERPRINTS AND FEES 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.

B. THE FEES THAT THE DEPARTMENT COLLECTS UNDER SUBSECTION A OF THIS SECTION SHALL BE CREDITED PURSUANT TO SECTION 35-148.

C. THE APPLICANT IS RESPONSIBLE FOR PROVIDING THE DEPARTMENT WITH READABLE FINGERPRINTS. THE APPLICANT SHALL PAY ANY COSTS THAT ARE ATTRIBUTABLE TO REFINGERPRINTING DUE TO THE UNREADABILITY OF ANY FINGERPRINTS AND ANY FEES THAT ARE REQUIRED FOR THE RESUBMISSION OF FINGERPRINTS.

D. THE DEPARTMENT MAY ISSUE A LICENSE OR CERTIFICATE OR GRANT PERMISSION TO ORGANIZE TO AN ORIGINAL APPLICANT BEFORE THE DEPARTMENT RECEIVES THE RESULTS OF A CRIMINAL RECORDS CHECK IF THERE IS NOT EVIDENCE OR REASONABLE SUSPICION THAT THE APPLICANT HAS A CRIMINAL HISTORY BACKGROUND THAT WOULD BE CAUSE FOR DENIAL OF A LICENSE, CERTIFICATE OR PERMISSION TO ORGANIZE. THE DEPARTMENT MAY SUSPEND THE LICENSE OR CERTIFICATE OR PERMISSION TO ORGANIZE IF A FINGERPRINT CARD IS RETURNED AS UNREADABLE AND THE APPLICANT FAILS TO SUBMIT NEW FINGERPRINTS WITHIN TEN DAYS AFTER BEING NOTIFIED BY THE DEPARTMENT THAT THE ORIGINAL CARD WAS UNREADABLE.

E. THE SUPERINTENDENT MAY REQUIRE A CURRENT LICENSEE, ORGANIZER, DIRECTOR, ACTIVE MANAGER, RESPONSIBLE INDIVIDUAL OR OFFICER OF ANY CORPORATE LICENSEE TO SUBMIT A FULL SET OF FINGERPRINTS TO THE DEPARTMENT. THE STATE BANKING DEPARTMENT SHALL SUBMIT THE FINGERPRINTS AND FEES 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.

F. THIS SECTION DOES NOT AFFECT THE DEPARTMENT'S AUTHORITY TO OTHERWISE ISSUE, DENY, CANCEL, TERMINATE, SUSPEND OR REVOKE A LICENSE.

Sec. 5. Section 20-142, Arizona Revised Statutes, is amended to read:

20-142. Powers and duties of director; payment of examination and investigation costs; home health services

A. The director shall enforce the provisions of this title.

B. The director shall have powers and authority expressly conferred by or reasonably implied from the provisions of this title.

C. The director may conduct examinations and investigations of insurance matters, including examinations and investigations of adjusters, agents and brokers and any other persons WHO ARE regulated under this title, in addition to examinations and investigations expressly authorized, as the director deems proper in determining whether a person has violated any provision of this title or for the purpose of securing information useful in the lawful administration of any provision of this title. The examined party shall pay the cost of examinations THAT ARE conducted pursuant to this subsection except for examinations of adjusters, agents and brokers. The examined party shall pay the cost of examining adjusters, agents and brokers only if the party has violated any provision of this title. The state shall pay the cost of an investigation.

D. The director shall establish guidelines for insurers on home health services that shall be used by the director pursuant to sections 20-826, 20-1342, 20-1402 and 20-1404. The director may use home health services as defined in section 36-151. Guidelines shall include but not be limited to:

1. Home health services that are prescribed by a physician.

2. Home health services that are determined to cost less if provided in the home than the average length of in-hospital service for the same service.

3. Skilled professional care in the home that is comparable to skilled professional care provided in-hospital and that is reviewed and approved at thirty day intervals by a physician.

E. Pursuant to section 41-1750, subsection G, the director may receive criminal history record information, in connection with the issuance, renewal, suspension or revocation of a license or certificate of authority or the consideration of a merger or acquisition. The director may require the submission of A PERSON TO SUBMIT A FULL SET OF fingerprints of any person related to the issuance, renewal, suspension or revocation of a license or certificate of authority or the consideration of a merger or acquisition. The criminal identification section of TO THE DEPARTMENT. THE DEPARTMENT OF INSURANCE SHALL SUBMIT THE FINGERPRINTS TO the department of public safety shall provide such FOR THE PURPOSE OF OBTAINING A STATE AND FEDERAL criminal history record information to the director RECORDS CHECK pursuant to section 41-1750, subsection G AND PUBLIC LAW 92-544. THE DEPARTMENT OF PUBLIC SAFETY MAY EXCHANGE THIS FINGERPRINT DATA WITH THE FEDERAL BUREAU OF INVESTIGATION.

Sec. 6. Section 20-285, Arizona Revised Statutes, is amended to read:

20-285. Application for license

A. A person who applies for a resident insurance producer license shall apply to the director on a form prescribed by the director and shall declare under penalty of denial, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the knowledge and belief of the applicant or it's THE APPLICANT'S duly authorized representative. The applicant shall provide information concerning the applicant's identity, personal history, business record, experience in insurance and purposes for which the license is to be used and any other pertinent fact the director requires.

B. Before the director approves the application of the individual, the director shall find that THE INDIVIDUAL:

1. The individual Is at least eighteen years of age.

2. The individual Has not committed any act that is a ground for denial, suspension or revocation prescribed in section 20-295.

3. The individual Has paid the fees prescribed in section 20-167.

4. The individual Has successfully passed the examinations for the lines of authority for which the individual has applied.

5. The individual Will not use or does not intend to use the license principally for the purpose of procuring insurance that covers:

(a) The individual.

(b) The members of the individual's family or the individual's relatives to the second degree.

(c) The individual's property or insurable interests.

(d) The property or insurable interests of the individual's relatives to the second degree, employer or employees or a firm or corporation in which the individual owns a substantial interest or the employees of that firm or corporation.

(e) Property or insurable interests for which the individual or the individual's relatives to the second degree, employer, firm or corporation is the bailee, trustee or receiver.

C. For the purposes of subsection B, paragraph 5 of this section, a vendor's or lender's interest in property that is sold or is being sold under a contract or that is the security for any loan is not property or an insurable interest of that vendor or lender.

D. Before the director approves the application of a business entity, the director shall find that the business entity:

1. Has paid the fees prescribed in section 20-167.

2. Will be acting within the scope of its partnership agreement, articles of incorporation or other chartering documents when the business entity transacts business under the license.

3. Has designated an individually licensed insurance producer who is responsible for the business entity's compliance with the insurance laws of this state.

E. The application of a business entity shall also include the names of all members, officers and directors of the business entity. For any individual who is identified pursuant to this subsection and pursuant to subsection D, paragraph 3 of this section, the director may require the applicant to provide the information required for a license as an individual.

F. Before the director grants a license, the director may require the applicant to:

1. Provide any document that is reasonably necessary to verify the information that is contained in an application and other information including:

1. prior criminal records.

2. Fingerprinting or background information pursuant to section 41-1750, subsection G and any fingerprint processing fees SUBMIT A FULL SET OF FINGERPRINTS TO THE DEPARTMENT. THE DEPARTMENT OF INSURANCE 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.

G. A nonresident person who is licensed as an insurance producer in another state, who becomes a resident of this state and who continues to act as an insurance producer shall apply to become a resident licensee pursuant to this section within ninety days.

Sec. 7. Section 20-289, Arizona Revised Statutes, is amended to read:

20-289. Expiration; surrender; renewal

A. Any license that is issued pursuant to this article, other than a temporary license, continues in force until it expires or the director suspends, revokes or terminates the license. The license is also subject to renewal pursuant to this section.

B. A license that is issued pursuant to this article or a license that is issued pursuant to chapter 6, article 9 of this title expires biennially on the last day of the same month two years after the issuance or renewal of the license pursuant to this article.

C. The director may renew a license if the licensee files an application on a form approved by the director and pays the renewal fee prescribed in section 20-167 on or before the expiration date and, until July 1, 2004, if applicable, complies with the continuing education requirements prescribed in chapter 18 of this title.

D. Before renewing a license, the director may require the applicant to:

1. Provide all documents that are reasonably necessary to verify the information that is contained in the application and any other information including:

1. prior criminal records.

2. Fingerprinting or background information, pursuant to section 41-1750, subsection G and any fingerprint processing fees SUBMIT A FULL SET OF FINGERPRINTS TO THE DEPARTMENT. THE DEPARTMENT OF INSURANCE 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.

E. Any license for which the director does not receive timely application for renewal and full payment of fees expires at midnight on the renewal date. During the six months after the expiration of a license under this section, a person who otherwise meets the qualifications for a license may renew an expired license by filing with the director a renewal application, the biennial license fee and an additional one hundred dollars as a late renewal fee. Any application THAT IS received during this six month period for the same license that expired under this section is deemed a renewal application. Any application THAT IS received after the six month period for the same license that expired under this section is deemed a new application.

F. On THE written request of a person who is licensed pursuant to this article, the director may accept the voluntary surrender of the person's authority to transact one or more lines of insurance or of the person's entire license. A person who surrenders an authority or a license under this subsection shall not reapply for the same authority or license for at least six months after the date of the surrender.

Sec. 8. Section 20-340.04, Arizona Revised Statutes, is amended to read:

20-340.04. Bail recovery agent prohibitions; criminal records checks

A. No person who has been convicted in any jurisdiction of THEFT, any felony or theft or any crime involving the carrying or illegal use or possession of a deadly weapon or dangerous instrument may act as a bail recovery agent.

B. A person shall submit a full set of fingerprints to the department before acting as a bail recovery agent and SHALL submit a new set of fingerprints on or before September 1 of every third year after initial identification by the bail bond agent in the report THAT IS filed with the director pursuant to section 13-3885, subsection C to allow the director to obtain. THE DEPARTMENT OF INSURANCE 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 fingerprint processing fee collected by the department shall be an amount that does not exceed the cost to the department THAT IS charged by the federal bureau of investigation for the fingerprint processing to obtain federal criminal history record information. The department of public safety is authorized to MAY exchange this fingerprint data with the federal bureau of investigation. The criminal investigation section of the department of public safety shall provide the criminal history record information to the director pursuant to section 41-1750.

C. Any person who acts as a bail recovery agent on behalf of any bail bond agent and any person who conducts any action relating to a bail recovery or apprehension must be identified by the bail bond agent in the report THAT IS filed with the director pursuant to section 13-3885, subsections C and D.

D. A bail bond agent may not employ a bail recovery agent who does not comply with this section and who has not been identified by the bail bond agent in the report THAT IS filed with the director pursuant to section 13-3885, subsection C. A bail bond agent who is not licensed in this state shall contract with a bail bond agent in this state to retain the services of a bail recovery agent in this state.

Sec. 9. Section 32-921, Arizona Revised Statutes, is amended to read:

32-921. Application for license; qualifications of applicant; fee; background investigations

A. A person who wishes to practice chiropractic in this state shall submit a written application to the board at least forty-five days before the next scheduled examinations on a form and in the manner prescribed by the board.

B. To be eligible for an examination and licensure, the applicant shall:

1. Be a person of good character and reputation.

2. Be a graduate of a chiropractic college that both:

(a) Is accredited by or has status with the council on chiropractic education or is accredited by an accrediting agency recognized by the U.S. department of education or the council on post secondary accreditation or has the equivalent of these standards as determined by the board.

(b) Teaches a resident course of four years of not less than nine months each year, or the equivalent of thirty-six months of continuous study, and that comprises not less than four thousand credit hours of resident study required to receive a degree of doctor of chiropractic (D.C.).

3. Be physically and mentally able to practice chiropractic skillfully and safely.

4. Have a certificate of attainment for part I and part II and a score of three hundred seventy-five or more on part III of the examination conducted by the national board of chiropractic examiners.

C. The board may refuse to give an examination to an applicant who either:

1. Fails to qualify for an examination under subsection B of this section.

2. Has engaged during the period of two years next preceding his THE PERSON'S application in conduct constituting grounds for sanction pursuant to section 32-924.

D. On making application, the applicant shall pay to the executive director of the board a nonrefundable fee of one hundred dollars. The board shall keep a register of all applicants and the result of each examination.

E. In order to determine an applicant's eligibility for examination and licensure, the board may obtain criminal history record information from REQUIRE THE APPLICANT TO SUBMIT A FULL SET OF FINGERPRINTS TO THE BOARD. THE BOARD 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. The board shall charge each applicant a fee THAT IS necessary to cover the cost of the investigation. The board shall forward this fee to the criminal identification section of the department of public safety.

Sec. 10. Section 32-1122, Arizona Revised Statutes, is amended to read:

32-1122. Qualifications for license; definition

A. A contractor's license shall be issued only by act of the registrar of contractors. The registrar shall:

1. Classify and qualify applicants for a license.

2. If necessary, change the license classification of a licensee in the case of a title reclassification, with or without a bond rider for the purpose of continuing liability on the bond.

3. Conduct such investigations as the registrar deems necessary.

4. Establish written examinations if deemed necessary to protect the health and safety of the public.

B. To obtain or renew a license under this chapter, the applicant shall:

1. Submit to the registrar of contractors a verified application on forms THAT ARE prescribed by the registrar of contractors and containing THAT CONTAIN the following information and shall advise the registrar of any change in such THE information within thirty days:

(a) A designation of the classification of license THAT IS sought by the applicant.

(b) If the applicant is an individual, the applicant's name and address.

(c) If the applicant is a partnership, the names and addresses of all partners with a designation of any limited partners.

(d) If the applicant is a corporation, an association or any other organization, the names and addresses of the president, vice-president, if any, secretary and treasurer or the names and addresses of the functional equivalent of such THESE officers, the directors and the owners of twenty-five per cent or more of the stock or beneficial interest.

(e) The name and address of the qualifying party.

(f) If the applicant is a corporation, evidence that the corporation is in good standing with the corporation commission.

(g) The address or location of the applicant's place of business and the mailing address if it is different from the applicant's place of business.

(h) The applicant's current privilege license number issued pursuant to section 42-5005.

(i) Proof that the applicant has complied with the statutes or rules governing workers' compensation insurance.

2. Submit the appropriate bond and fee required under this chapter.

C. To obtain a contractor's license under this chapter other than a residential contractor's license, the applicant shall submit a detailed statement of current financial condition containing information required by the registrar of contractors on a form furnished by or acceptable to the registrar of contractors. Notwithstanding any other law, a swimming pool contractor shall also submit a detailed statement of current financial condition as required by this subsection.

D. To obtain or renew a license under this chapter, each person shall be of good character and reputation. Lack of good character and reputation may be established by showing that a person has engaged in contracting without a license or committed any act which THAT, if committed or done by any licensed contractor, would be grounds for suspension or revocation of a contractor's license or by showing that the person was named on a contractor's license that was suspended or revoked in another state.

E. To obtain a license under this chapter, a person shall not have had a license refused or revoked, within one year prior to BEFORE the person's application, or shall not have engaged in the contracting business, nor shall the person have submitted a bid without first having been licensed within one year prior to BEFORE the person's application, nor shall a person act as a contractor between the filing of the application and actual issuance of the license. The registrar may find any of those actions or circumstances to be excusable if there was reasonable doubt as to the need for licensure or the actions of the applicant did not result in an unremedied hardship or danger or loss to the public. A person who has been criminally convicted of contracting without a license is not eligible to obtain a license under this chapter for one year after the date of the last conviction.

F. Prior to issuance of BEFORE a license IS ISSUED, the qualifying party shall:

1. Have had a minimum of four years' practical or management trade experience, at least two of which must have been within the last ten years, dealing specifically with the type of construction, or its equivalent, for which the applicant is applying for a license. Technical training in an accredited college or university or in a manufacturer's accredited training program may be substituted for a portion of such experience, but in no case may credited technical training exceed two years of the required four years' experience. The registrar of contractors may reduce the four years' practical or management experience requirement if in the registrar's opinion it has been conclusively shown by custom and usage in the particular industry or craft involved that the four year requirement is excessive. The registrar may waive the work experience documentation and verification or the examination requirement if the records reflect that the qualifying party is currently or has previously been a qualifying party for a licensee in this state in the same classification within the preceding five years.

2. Successfully show, by written examination, if required, qualification in the kind of work for which the applicant proposes to contract, the applicant's general knowledge of the building, safety, health and lien laws of the state, administrative principles of the contracting business and the rules adopted by the registrar of contractors pursuant to this chapter, demonstrate knowledge and understanding of construction plans and specifications applicable to the particular industry or craft and of the standards of construction work and techniques and practices in the particular industry or craft and demonstrate a general understanding of other related construction trades, in addition to such ANY other matters as may be deemed appropriate by the registrar to determine that the qualifying party meets the requirements of this chapter. The registrar shall maintain multiple versions of examinations for each type of license which THAT requires an examination.

G. No license shall be issued to a minor, to any partnership in which one of the partners is a minor, or to any corporation in which a corporate officer is a minor.

H. BEFORE RECEIVING, RENEWING AND HOLDING A LICENSE PURSUANT TO THIS CHAPTER, THE REGISTRAR MAY REQUIRE A LICENSE APPLICANT OR LICENSEE TO SUBMIT TO THE REGISTRAR A FULL SET OF FINGERPRINTS AND THE FEES REQUIRED IN SECTION 41-1750. THE REGISTRAR SHALL SUBMIT THE FINGERPRINTS AND FEES 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.

Sec. 11. Section 32-1722, Arizona Revised Statutes, is amended to read:

32-1722. Qualifications of applicant; applications

A. A person of good moral character, desiring WHO DESIRES to engage in the practice of the profession of optometry, shall file with the board not less than thirty days before the date on which an examination is to be held a verified application with the required application fee that includes:

1. The applicant's name, age and address.

2. Documentation of graduation from a university or college teaching THAT TEACHES the profession of optometry and THAT IS accredited by a nationally accepted accrediting body on optometric education.

3. Documentation of satisfactory completion of an equivalent course of study THAT IS approved by the board in didactic education, pharmacology and clinical training in the examination, diagnosis and treatment of conditions of the human eye and its adnexa that either:

(a) Meets the contemporary educational requirements at colleges of optometry in the United States.

(b) Totals at least one hundred twenty hours.

4. Documentation of the successful passage of a written examination as prescribed by the board.

5. Background information on a form prescribed by the attorney general for the purpose of conducting an investigation into the existence of prior arrests and convictions. THE APPLICANT SHALL SUBMIT A FULL SET OF FINGERPRINTS TO THE BOARD. THE BOARD 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.

6. Disclosure of any investigation conducted or pending by an optometric regulatory board in another jurisdiction in the United States.

B. On receipt of an application in proper form and containing the information prescribed in subsection A of this section, the board may have an investigation made of INVESTIGATE the applicant's character, ability and experience.

C. For the purposes of an investigation THAT IS conducted pursuant to subsection B of this section, the board may subpoena witnesses, administer oaths and take testimony with respect to the character of the applicant or to any matter affecting the application at a hearing held after sufficient notice has been given.

D. If the board finds that the applicant has passed the examination provided for under section 32-1723 or 32-1724 and that the applicant's character, ability and experience are satisfactory, the board shall issue a license.

Sec. 12. Section 32-2304, Arizona Revised Statutes, as amended by Laws 1998, chapter 142, section 4, is amended to read:

32-2304. Powers and duties; executive director

A. The commission shall:

1. Adopt rules which THAT are necessary or proper for the administration of this chapter, including administrative provisions and health and safety provisions for the use, storage and application of pesticides and devices used in structural pest control.

2. Adopt rules governing pretreatment.

3. Administer and enforce this chapter and rules adopted pursuant to this chapter.

4. Maintain a record of its acts and proceedings, including the issuance, refusal, renewal, suspension or revocation of licenses, registrations, qualifications and certificates.

5. At least thirty days before adoption of a rule, form or policy, mail a copy of notice of a proposed rule, form or policy adoption, including the text of the proposed rule, form or policy, to each business licensee who has made a request to the commission, except that if the commission finds that adoption of a rule is necessary for immediate preservation of the public peace, health and safety and that notice is impractical, unnecessary or contrary to public interest it may adopt a rule without prior notice. Within thirty days after the adoption of a statute by the legislature or certification of a rule by the attorney general, the commission shall notify all business licensees in writing.

6. Hire inspectors as needed, considering recommendations of the executive director.

7. On receipt of a complaint or initiation of a complaint by the commission, notify the business licensee and qualifying party in writing of the complaint against the business licensee by the close of business on the second business day after the day on which the commission received or initiated the complaint.

8. On the request of any party, issue subpoenas for the taking of depositions, the production of documents and things and the entry on land for inspection and measuring, surveying, photographing, testing or sampling the property or any designated object or operation on the property relevant to the complaint.

9. List any complaint it plans to discuss at a public meeting in the agenda for the meeting.

10. Make certified applicator and qualifying party study materials available, at the commission's actual costs, to any interested person.

11. Conduct or contract to conduct certified applicator and qualifying party tests at locations throughout this state. If the commission contracts for these tests, the contracts may provide for specific examination fees or a reasonable range of fees determined by the commission to be paid directly to the contractor by the applicant.

12. Require a business licensee to provide written notice immediately following a pest control treatment in or around residential structures of one or two units to the person requesting the treatment or to the person's designated agent. The notice shall include the specific chemical by trade name used in the treatment.

13. Require a business licensee performing THAT PERFORMS pest control treatments on an ongoing basis to locations other than residential structures of one or two units to provide written notice in accordance with commission standards to the person who requested the treatments or the person's designated agent. Notice shall be given before the first application of the chemical and whenever new or additional chemicals are to be used or immediately after each treatment. If the treatments are performed in the interior of residential units, the licensee shall leave a similar notice in the interior of each treated unit immediately after each treatment.

14. Within thirty days of completion of a pretreatment project, initial termite corrective treatment project or wood infestation report, require the business licensee to file with the commission, in a form approved by the commission, all data required by the commission. The data shall include:

(a) The name of the individual who performed the work.

(b) The address or location of the work or project.

(c) The type and the date of the work.

(d) The name of the pest control company.

(e) The name of the qualifying party.

(f) The certified applicator certificate numbers.

(g) Any other information THAT IS required by the commission.

15. Within one hundred eighty days of completion of an initial pretreatment project, require the business licensee to file a supplemental termite action report in a form provided by the commission indicating the completion of the final grade treatment or to request in writing a waiver that indicates why the treatment has not been completed and when it will be completed.

16. Refer all pretreatment cases involving alleged criminal fraud to the criminal fraud division of the attorney general's office and refer any case determined by the commission DETERMINES to contain information relating to a possible felony to the proper law enforcement agency.

17. Maintain a computer system which records the following information on pretreatment projects, initial termite corrective projects, preventative termite treatments and wood infestation reports:

(a) The name of the individual who performed the work.

(b) The address or location of the work or project.

(c) The name of the pest control company.

(d) The name of the qualifying party.

(e) The certified applicator certificate numbers.

(f) The nature and date of the work performed.

(g) Any other information THAT IS required by the commission.

18. Refer all cases for initial hearing to a hearing officer AN ADMINISTRATIVE LAW JUDGE.

19. Establish an office and branch offices it deems necessary to carry out the purposes of this chapter.

20. Employ an executive director and other permanent or temporary personnel, including hearing officers, it deems necessary to carry out the purposes of this chapter and designate their duties.

21. Investigate violations of this chapter and rules adopted pursuant to this chapter.

22. Adopt minimum standards for pesticide applications.

23. Adopt minimum standards for certified applicators.

24. Adopt rules regarding continuing education.

25. Require a business licensee, qualifying party, certified applicator or registered employee to permit a commission inspector to be present on a jobsite in connection with a contemporaneous pest control treatment for the purpose of taking chemical samples, soil samples or any other samples for purposes of testing the type and quantity of chemicals used.

26. Deny a license to any person WHO IS subject to a previous revocation of the person's license for a period of ten years from the time of revocation.

27. Adopt by rule a nonexclusive list of acts and omissions that constitute de minimis violations.

B. The commission may:

1. Compel attendance of witnesses, administer oaths or affirmations and take testimony concerning all matters coming within its jurisdiction.

2. Receive criminal history record information from the department of public safety and other law enforcement agencies during investigations.

2. REQUIRE A PERSON WHO SEEKS A LICENSE, CERTIFICATION OR REGISTRATION PURSUANT TO THIS CHAPTER TO SUBMIT TO THE COMMISSION A FULL SET OF FINGERPRINTS AND THE FEES REQUIRED BY SECTION 41-1750. THE COMMISSION SHALL SUBMIT THE FINGERPRINTS AND FEES 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.

3. Enter into intergovernmental agreements.

4. With at least twenty-four hours' notice, request specific records from a business licensee, qualifying party or certified applicator at the person's place of business during normal business hours.

5. Adopt rules setting forth procedures for providing notice to business licensees of requests for records and methods of compliance for business licensees. The rules may:

(a) Specify that the qualifying party or certified applicator in charge of the office is responsible for complying with record requests by the commission.

(b) Provide that a failure to timely comply with a records request may be excused on a showing of good cause by the business licensee.

6. Charge to the holder of a business license the actual cost of providing mailed copies of rules, forms or policies THAT ARE proposed for adoption.

7. Require a business licensee that undergoes a change of name or ownership status or that sells all or a part of the business to:

(a) Report to the commission within ten business days the status of all warranties THAT ARE issued by the licensee.

(b) Notify within ten business days all persons who hold warranties THAT ARE issued by the licensee regarding the change.

8. Hire independent contractors to conduct inspections and take chemical samples, soil samples or any other samples for purposes of testing the type and quantity of chemicals THAT ARE used in connection with pest control treatment.

9. Issue advisory notices for de minimis violations.

10. Notify a business licensee, qualifying party or certified applicator of all requests for review of the business licensee's, qualifying party's or certified applicator's records within ten business days of the request.

11. Maintain a ratio of at least one inspector to every two hundred industry members, including qualifying parties and registered employees, and the commission shall maintain a ratio of at least one inspection supervisor for every eight inspectors. Inspectors shall be certified pursuant to article 4 of this chapter in all categories within their scope of work within their probationary period. Inspectors shall attend and complete an investigative training class THAT IS prescribed by the commission within their probationary period.

C. Each completed form for a pretreatment project, initial termite corrective treatment project or wood infestation report shall be accompanied by a fee. The initial fee is eight dollars. The commission may adjust the fee upward or downward to a level THAT IS calculated to produce sufficient revenue to carry out the functions prescribed under this section. The commission may assess a penalty of not to exceed one hundred dollars per form for failing to submit the required form and fee within thirty days.

D. The executive director shall serve at the pleasure of the commission. Compensation for the executive director and employees shall be determined pursuant to section 38-611.

E. Subject to the limitations of section 41-2544, the executive director may enter into agreements for the purpose of enabling the commission to accept payment for fees imposed under this chapter by alternative payment methods, including credit cards, charge cards, debit cards and electronic funds transfers. Before the monies are transferred to the executive director pursuant to section 32-2305, the person collecting the fees shall deduct any amount charged or withheld by a company providing the alternative payment method under an agreement with the commission.

F. In the enforcement of this article, the commission or any of its duly authorized agents may enter with the authority of a warrant issued by a court of competent jurisdiction at reasonable times on any private or public property on which pesticides are located or are reasonably believed to be located to be used for purposes related to structural pest control. The owner, managing agent or occupant of the property shall permit entry for the purpose of inspecting and investigating conditions relating to the use, storage, application and disposal of pesticides.

G. The commission shall not delegate to its staff the powers and duties listed under:

1. Subsection A, paragraphs 1, 2, 3, 15, 17, 19, 21, 22, 23, 25 and 26 of this section.

2. Subsection B, paragraphs 3, 5 and 8 of this section.

Sec. 13. Repeal

Section 32-2304, Arizona Revised Statutes, as amended by Laws 2000, chapter 113, section 128, is repealed.

Sec. 14. Section 44-1627, Arizona Revised Statutes, is amended to read:

44-1627. Licensing; requirements

A. A person shall not act as a pawnbroker until licensed by the sheriff of the county in which the person regularly conducts business.

B. A pawnbroker shall obtain a separate license for each pawnshop owned by that pawnbroker.

C. A pawnbroker license may not be sold or transferred without the approval of the sheriff and OR the sheriff's designee.

D. A pawnbroker shall not conduct business at a location other than a licensed location except for firearms transactions that are permitted by a federally licensed firearms dealer at an organized gun show.

E. Every pawnbroker shall be a bona fide resident of this state. If a partnership, each partner shall be a bona fide resident of this state. If a corporation, it shall be a domestic corporation or a foreign corporation which has qualified to do business in this state. The corporation shall hold its pawnbroker license through an agent.

F. The sheriff or the sheriff's designee shall require any person, other than a bank or licensed lending institution, having any interest, directly or indirectly, in a pawnshop to furnish a complete satisfactory SUBMIT A FULL set of fingerprints, together with the applicable fingerprint processing fee, TO THE SHERIFF. THE SHERIFF 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. THE SHERIFF SHALL FORWARD THE FEE TO THE DEPARTMENT OF PUBLIC SAFETY.

G. A corporation shall own the entire equitable interest in its license through an agent if the agent is otherwise qualified to hold a pawnbroker license. The agent is subject to the penalties prescribed for any violation of law relating to pawnbrokers. On the death, resignation or discharge of an agent of a corporation holding a pawnbroker license, the corporation shall promptly assign the license to another qualified agent selected by the corporation.

H. The sheriff shall not issue a license to a person who, within one year before the application, has violated any provision of a previously issued pawnbroker license or has had a license revoked. The sheriff shall not issue to or renew a license of a person who, within five years before the application, has been convicted of a felony involving trafficking in stolen property, fraudulent schemes, forgery, theft, extortion or conspiracy to defraud or a felony involving moral turpitude. The sheriff shall not issue to or renew a license of a corporation unless it has on file with the sheriff of the county in which the license is issued a list of its officers and directors and any stockholders who own ten per cent or more of the corporation. The sheriff shall not issue to or renew a license of a corporation if any of its officers or directors or any stockholder who owns ten per cent or more of the corporation has within five years been convicted of a felony involving trafficking in stolen property, fraudulent schemes, forgery, theft, extortion or conspiracy to defraud or a felony involving moral turpitude.

I. The sheriff shall not issue a license to a person or corporation that has knowingly made any false statements or material misrepresentations in the license application.

J. A person shall not use the word "pawn", "pawnshop" or "pawnbroker" in its business name, on any sign or in any advertisement unless the person is licensed as a pawnbroker pursuant to this article.

Sec. 15. Section 44-1945, Arizona Revised Statutes, is amended to read:

44-1945. Application for registration as salesman; filing; contents; exemptions

A. Application ANY INDIVIDUAL MAY APPLY for registration as a salesman may be made by any individual. An application for registration as a salesman shall be signed by the applicant and by the registered dealer employing or intending to employ the applicant, and shall be duly verified by oath. The application accompanied by the registration fee prescribed by section 44-1861, subsection A shall be filed with the commission and shall include the following, together with other information the commission prescribes:

1. Name, residence ADDRESS and business address of the applicant.

2. Name of the dealer employing or intending to employ the applicant.

3. Age and education of the applicant.

4. The nature of employment and name and address of each employer of the applicant for the ten years immediately preceding the date of application.

5. A statement showing whether the applicant has been registered as a dealer in or salesman of securities under laws of other states or as a broker or dealer under the securities exchange act of 1934 and whether or not such registration has been denied, cancelled, suspended or revoked and, if so, a complete statement of the facts with respect thereto TO THE DENIAL, CANCELLATION, SUSPENSION OR REVOCATION.

6. A statement showing whether the applicant has, within the past ten years, been convicted of or charged with a felony or misdemeanor of which fraud is an essential element, or a felony or misdemeanor involving the purchase or sale of securities and, if so, a complete statement of the facts with respect thereto TO THE CONVICTION.

7. A statement showing whether the applicant has been enjoined or restrained by a court of competent jurisdiction in connection with the purchase or sale of securities and, if so, a complete statement of the facts with respect thereto TO THE ENJOINDER.

8. IF THE APPLICANT'S FINGERPRINTS ARE NOT ON FILE WITH THE DIVISION, THE CRD SYSTEM OR THE INVESTMENT ADVISER REGISTRATION DEPOSITORY OPERATED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS, A FULL SET OF FINGERPRINTS. THE COMMISSION 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.

B. By rule or order, the commission may provide limited registration requirements for any salesman or class of salesmen or exempt any salesman or class of salesmen from registration under this article if the commission determines that registration is not necessary to protect the public interest due to the special characteristics of the securities or transactions in which the salesman or class of salesmen is involved.

C. Any salesman effecting transactions in this state limited solely to those transactions described in sections 15(h)(2) and (3) of the securities exchange act of 1934 is exempt from registration under this article.

Sec. 16. Section 44-3153, Arizona Revised Statutes, is amended to read:

44-3153. Application for licensure as investment adviser; notice filings by federal covered advisers

A. Any person may apply for licensure as an investment adviser. THE APPLICANT SHALL SIGN an application for licensure shall be signed by the applicant.

B. An application for licensure as an investment adviser shall be filed with the commission through the IARD. If the IARD does not provide for receipt of a filing, the filing may be made with the commission by mail or any other method that is reasonably acceptable to the commission.

C. An application for licensure shall contain the following, together with other information the commission prescribes:

1. A completed uniform application for investment adviser registration under the investment advisers act of 1940 together with other forms designated by the director.

2. Proof of compliance with written examination requirements.

3. Financial reports as required by the commission.

4. A notarized affidavit of any officer, director, partner, member, trustee or manager of the applicant that states:

(a) That a review of the records of the investment adviser has been conducted.

(b) Whether any investment adviser activity has been conducted with residents of this state before licensure as an investment adviser.

5. If the applicant intends to have a branch office in this state, the address and name of a contact individual at that branch office.

6. IF THE APPLICANT IS AN INDIVIDUAL AND THE APPLICANT'S FINGERPRINTS ARE NOT ON FILE WITH THE DIVISION, THE CRD SYSTEM OR THE IARD, A FULL SET OF FINGERPRINTS. THE COMMISSION 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.

D. An application for licensure as an investment adviser shall be accompanied by payment of the licensure fee prescribed in section 44-3181.

E. A federal covered adviser may transact business in this state as an investment adviser if the federal covered adviser makes a notice filing with the commission through the IARD. If the IARD does not provide for receipt of a filing, the filing may be made with the commission by mail or any other method that is reasonably acceptable to the commission.

F. The notice filing shall consist of all of the following:

1. Copies of those documents that are filed with the SEC and that the commission requires to be filed.

2. A consent to service of process.

3. A notice filing fee as prescribed in section 44-3181.

G. A notice filing is effective on compliance with the requirements of subsection E of this section and remains effective until December 31 unless it is renewed before that time by filing with the commission any renewal documents prescribed by the commission along with the notice filing fee prescribed in section 44-3181.

H. A federal covered adviser may terminate a notice filing by notifying the commission of that termination through the IARD. If the IARD does not provide for receipt of a filing, the filing may be made with the commission by mail or any other method that is reasonably acceptable to the commission.

Sec. 17. Section 44-3156, Arizona Revised Statutes, is amended to read:

44-3156. Application for licensure as investment adviser representative

A. Any individual may apply for licensure as an investment adviser representative. An application for licensure as an investment adviser representative shall be signed by the applicant and by the licensed or federal covered adviser employing or intending to employ the applicant.

B. An application for licensure as an investment adviser representative shall be filed with the commission through the IARD. If the IARD does not provide for receipt of a filing, the filing may be made with the commission by mail or any other reasonable method that is acceptable to the commission.

C. An application for licensure shall include the following, together with other information the commission prescribes:

1. A completed form U-4 or any other form as the director may designate. An applicant that has a current form U-4 filed with this state may submit a brief written request for licensure with the commission.

2. Proof of compliance with written examination requirements.

3. IF THE APPLICANT'S FINGERPRINTS ARE NOT ON FILE WITH THE DIVISION, THE CRD SYSTEM OR THE IARD, A FULL SET OF FINGERPRINTS. THE COMMISSION 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.

D. An application for licensure as an investment adviser representative shall be accompanied by payment of the licensure fee prescribed in section 44-3181.

Sec. 18. Section 44-3181, Arizona Revised Statutes, is amended to read:

44-3181. Fees; penalties; abandonment

A. The annual nonrefundable license fee for each licensed investment adviser and investment adviser representative and the annual nonrefundable notice filing fee for each federal covered adviser shall be paid to the commission on or before the last working day of December. The annual nonrefundable license fee for each investment adviser and the annual nonrefundable notice filing fee prescribed in section 44-3153, subsection F are two hundred fifty dollars and the annual nonrefundable license fee for each investment adviser representative is forty dollars.

B. An investment adviser that fails to timely renew an annual investment adviser or investment adviser representative license or notice filing shall pay a penalty of twenty-five dollars per business day until the appropriate documents and fee are filed, up to a maximum of forty business days. Failure to timely renew is not a violation of section 44-3151 if the license or notice filing fee and penalty are paid within forty business days. Failure to renew within forty business days may result in additional sanctions as provided in this chapter.

C. The transfer fee for an investment adviser representative transferring that investment adviser representative's license from one investment adviser to another investment adviser is forty dollars.

D. All applications, withdrawals, terminations, transfers, renewals or other filings with the IARD shall be on the forms required by the IARD and shall be accompanied by any reasonable costs charged by the IARD for processing the filings. Any person WHO IS required to pay a fee pursuant to this section may transmit the fee to the commission through the IARD.

E. The commission shall retain any notice filing or licensure fees THAT ARE collected in connection with abandoned applications or notice filings. A notice filing or an application for licensure is deemed abandoned if both:

1. The notice filing or application has been on file with the commission for at least six months or the applicant or notice filer has failed to respond to a request for information for at least two months after the date of the request.

2. The applicant or notice filer has failed to respond to the commission's notice of warning of abandonment within sixty calendar days after the date of the warning.

F. THE FEE FOR SUBMITTING FINGERPRINTS IS THE FEE THAT IS REQUIRED BY THE FEDERAL GOVERNMENT AND THE DEPARTMENT OF PUBLIC SAFETY.

Sec. 19. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.

APPROVED BY THE GOVERNOR APRIL 29, 2002.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 30, 2002.