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| 1 | + | Senate Engrossed barbering and cosmetology fund; enforcement State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1117 AN ACT amending section 32-573, Arizona Revised Statutes; RELATING to barbering and cosmetology. (TEXT OF BILL BEGINS ON NEXT PAGE) | |
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| 3 | - | House Engrossed Senate Bill barbering and cosmetology fund; enforcement | |
| 4 | - | (now: political subdivision entity; benefits) | |
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| 11 | + | Senate Engrossed barbering and cosmetology fund; enforcement | |
| 5 | 12 | State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 | |
| 6 | 13 | SENATE BILL 1117 | |
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| 15 | + | Senate Engrossed | |
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| 10 | - | House Engrossed Senate Bill | |
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| 12 | 19 | barbering and cosmetology fund; enforcement | |
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| 14 | - | (now: political subdivision entity; benefits) | |
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| 16 | 29 | State of Arizona | |
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| 20 | 33 | Fifty-seventh Legislature | |
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| 22 | 35 | First Regular Session | |
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| 24 | 37 | 2025 | |
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| 26 | 45 | SENATE BILL 1117 | |
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| 28 | 55 | AN ACT | |
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| 30 | - | amending sections 11-951 and 11-981, Arizona Revised Statutes; RELATING to political subdivision entities. | |
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| 59 | + | amending section 32-573, Arizona Revised Statutes; RELATING to barbering and cosmetology. | |
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| 32 | 65 | (TEXT OF BILL BEGINS ON NEXT PAGE) | |
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| 34 | - | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 11-951, Arizona Revised Statutes, is amended to read: START_STATUTE11-951. Definition of public agency For the purposes of this article, "public agency" includes: 1. The federal government or any federal department or agency. , 2. Indian tribes. , 3. This state, or any other state. , 4. All departments, agencies, boards and commissions of this state or any other state. , 5. Counties. , 6. School districts. , 7. Fire districts. , 8. Cities. , 9. Towns. , 10. All municipal corporations. , and 11. Political subdivision entities as defined in section 38-711. 12. Any other political subdivisions of this state or any other state. END_STATUTE Sec. 2. Section 11-981, Arizona Revised Statutes, is amended to read: START_STATUTE11-981. Payment of benefits, losses and claims; establishment of trust funds; definition A. In addition to authority granted pursuant to other provisions of law or city charter, any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors may procure insurance from any insurer authorized by the director of the department of insurance and financial institutions or may establish a self-insurance program for the management and administration of a system for direct payment of benefits, losses or claims or any combination of insurance and direct payments, and including risk management consultation, to provide: 1. Health, accident, life or disability benefits for employees and officers of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors and their dependents. 2. Payment of any property loss sustained or lawful claim of liability or fortuitous loss made against the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors or its elected or appointed officials, employees or officers if such elected or appointed officials, employees or officers are acting within the scope of employment or authority. B. If any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors establishes a self-insurance program for the management and administration of a system for direct payment of benefits, losses or claims pursuant to subsection A, the governing body of such city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors shall place all funds monies into a trust fund for the purposes of this section in amounts as determined appropriate by the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors, except that any city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors establishing such a trust fund shall: 1. Designate a risk management consultant or insurance administrator licensed pursuant to title 20, chapter 2, article 3 or 9, and such license shall be verified by the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. 2. The trust shall be administered by at least five joint trustees, of whom not more than one may be a member of the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors and not more than one may be an employee of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. 3. The trustees of the trust must be bonded, a stop-loss provision must be incorporated in the trust agreement and an annual audit must be performed by an external auditor and a copy of the report kept on file in the offices of the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors for a period of not less than five years. 4. Not make any expenditure from the trust fund for any purpose not specified in this article. C. Expenditures during the fiscal year from the trust fund and monies in the trust fund at the close of the fiscal year shall not be subject to the provisions of title 42, chapter 17, article 3. D. In the event that such a trust fund is no longer used by the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors for the purposes herein set forth, it shall revert during that fiscal year to the general fund of such city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. E. The authority granted to a city, town, county, any special health care district organized pursuant to title 48, chapter 31, a political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors by this section is not subject to title 20, except that any health, life, accident or disability benefit plan shall conform to the benefits required by title 20. F. This section does not authorize any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors to procure insurance from any insurer not authorized by the director of the department of insurance and financial institutions. g. For the purposes of this section, "political Subdivision Entity" has the same meaning prescribed in section 38-711. END_STATUTE | |
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| 69 | + | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 32-573, Arizona Revised Statutes, is amended to read: START_STATUTE32-573. Procedure for disciplinary action; appeal A. The board on its own motion may investigate any information that appears to show the existence of any of the causes set forth in section 32-572. The board shall investigate the report of any person that appears to show the existence of any of the causes set forth in section 32-572. A person who reports pursuant to this section and who provides the information in good faith is not subject to liability for civil damages as a result. B. If, after completing its investigation, the board finds that the evidence is not of sufficient seriousness to merit direct action against a license or registration, it may take either of the following actions: 1. Dismiss if, in the opinion of the board, the evidence is without merit. 2. File a letter of concern if, in the opinion of the board, while there is insufficient evidence to support direct action against the license or registration there is sufficient evidence for the board to notify the licensee or registrant that continuation of the activities that led to the information or report being made to the board may result in action against the licensee's license or registrant's registration. C. If, in the opinion of the board, it appears the information or report is or may be true, the board shall request an informal interview with the licensee or registrant concerned. The interview shall be requested by the board in writing, stating the reasons for the interview and setting a date at least ten days after the date of the notice for conducting the interview. D. If, after an informal interview, the board finds that the evidence warrants suspension or revocation of a license or registration issued pursuant to this chapter, imposition of a civil penalty or public reproof or if the licensee or registrant under investigation refuses to attend the informal interview, a complaint shall be issued and formal proceedings shall be initiated. All proceedings pursuant to this subsection shall be conducted in accordance with title 41, chapter 6, article 10. E. A licensee or registrant who has been notified pursuant to subsection D of this section of charges pending against the licensee or registrant shall file with the board an answer in writing to the charges not more than thirty days after the licensee or registrant receives the complaint. If the licensee or registrant fails to answer in writing within this time, it is deemed an admission by the licensee or registrant of the acts charged in the complaint and the board may take disciplinary action allowed by this chapter without a hearing. F. If the board finds that the evidence is not of sufficient seriousness to merit suspension or revocation of a license or registration issued pursuant to this chapter, imposition of a civil penalty or public reproof, the board may take the following actions: 1. Dismiss if, in the opinion of the board, the evidence is without merit. 2. File a letter of concern if, in the opinion of the board, while there is insufficient evidence to support direct action against the license or registration there is sufficient evidence for the board to notify the licensee or registrant that continuation of the activities which led to the information or report being made to the board may result in action against the licensee's license or registrant's registration. 3. Impose probation requirements. G. If a licensee or registrant violates this chapter or a rule adopted pursuant to this chapter, the board may assess the licensee or registrant with the board's reasonable costs and expenses, including attorney fees, incurred in conducting the investigation and administrative hearing. All monies collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in a separate account in the barbering and cosmetology fund established by section 32-505. Notwithstanding section 35-143.01, the separate account monies are continuously APPROPRIATED to the board may only use these monies to defray its expenses in connection with the enforcement of this chapter, including investigation related investigation-related training and education, disciplinary investigations and all costs related to administrative hearings. Notwithstanding section 35-143.01 the separate account monies may be spent without legislative appropriation. H. Except as provided in section 41-1092.08, subsection H, final decisions of the board are subject to judicial review pursuant to title 12, chapter 7, article 6. END_STATUTE Sec. 2. Barbering and cosmetology fund; enforcement; intent The legislature intends that the appropriation made in Laws 2024, chapter 250, section 36, subsection B be considered ongoing funding in future years. | |
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| 36 | 71 | Be it enacted by the Legislature of the State of Arizona: | |
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| 38 | - | Section 1. Section | |
| 73 | + | Section 1. Section 32-573, Arizona Revised Statutes, is amended to read: | |
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| 40 | - | START_ | |
| 75 | + | START_STATUTE32-573. Procedure for disciplinary action; appeal | |
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| 77 | + | A. The board on its own motion may investigate any information that appears to show the existence of any of the causes set forth in section 32-572. The board shall investigate the report of any person that appears to show the existence of any of the causes set forth in section 32-572. A person who reports pursuant to this section and who provides the information in good faith is not subject to liability for civil damages as a result. | |
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| 79 | + | B. If, after completing its investigation, the board finds that the evidence is not of sufficient seriousness to merit direct action against a license or registration, it may take either of the following actions: | |
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| 81 | + | 1. Dismiss if, in the opinion of the board, the evidence is without merit. | |
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| 83 | + | 2. File a letter of concern if, in the opinion of the board, while there is insufficient evidence to support direct action against the license or registration there is sufficient evidence for the board to notify the licensee or registrant that continuation of the activities that led to the information or report being made to the board may result in action against the licensee's license or registrant's registration. | |
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| 85 | + | C. If, in the opinion of the board, it appears the information or report is or may be true, the board shall request an informal interview with the licensee or registrant concerned. The interview shall be requested by the board in writing, stating the reasons for the interview and setting a date at least ten days after the date of the notice for conducting the interview. | |
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| 87 | + | D. If, after an informal interview, the board finds that the evidence warrants suspension or revocation of a license or registration issued pursuant to this chapter, imposition of a civil penalty or public reproof or if the licensee or registrant under investigation refuses to attend the informal interview, a complaint shall be issued and formal proceedings shall be initiated. All proceedings pursuant to this subsection shall be conducted in accordance with title 41, chapter 6, article 10. | |
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| 89 | + | E. A licensee or registrant who has been notified pursuant to subsection D of this section of charges pending against the licensee or registrant shall file with the board an answer in writing to the charges not more than thirty days after the licensee or registrant receives the complaint. If the licensee or registrant fails to answer in writing within this time, it is deemed an admission by the licensee or registrant of the acts charged in the complaint and the board may take disciplinary action allowed by this chapter without a hearing. | |
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| 91 | + | F. If the board finds that the evidence is not of sufficient seriousness to merit suspension or revocation of a license or registration issued pursuant to this chapter, imposition of a civil penalty or public reproof, the board may take the following actions: | |
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| 93 | + | 1. Dismiss if, in the opinion of the board, the evidence is without merit. | |
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| 95 | + | 2. File a letter of concern if, in the opinion of the board, while there is insufficient evidence to support direct action against the license or registration there is sufficient evidence for the board to notify the licensee or registrant that continuation of the activities which led to the information or report being made to the board may result in action against the licensee's license or registrant's registration. | |
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| 97 | + | 3. Impose probation requirements. | |
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| 99 | + | G. If a licensee or registrant violates this chapter or a rule adopted pursuant to this chapter, the board may assess the licensee or registrant with the board's reasonable costs and expenses, including attorney fees, incurred in conducting the investigation and administrative hearing. All monies collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in a separate account in the barbering and cosmetology fund established by section 32-505. Notwithstanding section 35-143.01, the separate account monies are continuously APPROPRIATED to the board may only use these monies to defray its expenses in connection with the enforcement of this chapter, including investigation related investigation-related training and education, disciplinary investigations and all costs related to administrative hearings. Notwithstanding section 35-143.01 the separate account monies may be spent without legislative appropriation. | |
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| 66 | - | ||
| 101 | + | H. Except as provided in section 41-1092.08, subsection H, final decisions of the board are subject to judicial review pursuant to title 12, chapter 7, article 6. END_STATUTE | |
| 67 | 102 | ||
| 68 | - | Sec. 2. | |
| 103 | + | Sec. 2. Barbering and cosmetology fund; enforcement; intent | |
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| 70 | - | START_STATUTE11-981. Payment of benefits, losses and claims; establishment of trust funds; definition | |
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| 72 | - | A. In addition to authority granted pursuant to other provisions of law or city charter, any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors may procure insurance from any insurer authorized by the director of the department of insurance and financial institutions or may establish a self-insurance program for the management and administration of a system for direct payment of benefits, losses or claims or any combination of insurance and direct payments, and including risk management consultation, to provide: | |
| 73 | - | ||
| 74 | - | 1. Health, accident, life or disability benefits for employees and officers of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors and their dependents. | |
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| 76 | - | 2. Payment of any property loss sustained or lawful claim of liability or fortuitous loss made against the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors or its elected or appointed officials, employees or officers if such elected or appointed officials, employees or officers are acting within the scope of employment or authority. | |
| 77 | - | ||
| 78 | - | B. If any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors establishes a self-insurance program for the management and administration of a system for direct payment of benefits, losses or claims pursuant to subsection A, the governing body of such city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors shall place all funds monies into a trust fund for the purposes of this section in amounts as determined appropriate by the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors, except that any city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors establishing such a trust fund shall: | |
| 79 | - | ||
| 80 | - | 1. Designate a risk management consultant or insurance administrator licensed pursuant to title 20, chapter 2, article 3 or 9, and such license shall be verified by the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. | |
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| 82 | - | 2. The trust shall be administered by at least five joint trustees, of whom not more than one may be a member of the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors and not more than one may be an employee of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. | |
| 83 | - | ||
| 84 | - | 3. The trustees of the trust must be bonded, a stop-loss provision must be incorporated in the trust agreement and an annual audit must be performed by an external auditor and a copy of the report kept on file in the offices of the governing body of the city, town, county, any special health care district organized pursuant to title 48, chapter 31 or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors for a period of not less than five years. | |
| 85 | - | ||
| 86 | - | 4. Not make any expenditure from the trust fund for any purpose not specified in this article. | |
| 87 | - | ||
| 88 | - | C. Expenditures during the fiscal year from the trust fund and monies in the trust fund at the close of the fiscal year shall not be subject to the provisions of title 42, chapter 17, article 3. | |
| 89 | - | ||
| 90 | - | D. In the event that such a trust fund is no longer used by the city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors for the purposes herein set forth, it shall revert during that fiscal year to the general fund of such city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors. | |
| 91 | - | ||
| 92 | - | E. The authority granted to a city, town, county, any special health care district organized pursuant to title 48, chapter 31, a political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors by this section is not subject to title 20, except that any health, life, accident or disability benefit plan shall conform to the benefits required by title 20. | |
| 93 | - | ||
| 94 | - | F. This section does not authorize any city, town, county, any special health care district organized pursuant to title 48, chapter 31, political subdivision entity or other political subdivision that is located in a county with a population of more than one million persons and whose governing body is composed of members of a county board of supervisors to procure insurance from any insurer not authorized by the director of the department of insurance and financial institutions. | |
| 95 | - | ||
| 96 | - | g. For the purposes of this section, "political Subdivision Entity" has the same meaning prescribed in section 38-711. END_STATUTE | |
| 105 | + | The legislature intends that the appropriation made in Laws 2024, chapter 250, section 36, subsection B be considered ongoing funding in future years. |