State Issues

We provide exclusive updates, briefing and action alerts to our members on what’s happening the Arizona State Legislature. Join today to ensure you are well informed on the political issues that affect the industry and your business.

Senate Bill 1406: S1406: PUBLIC ACCOMMODATION; SERVICES; CIVIL ACTION

SB1406 modifies the litigation process and establishes a “notice and cure” period within the state Americans with Disabilities Act (Arizona ADA) law in an effort to end the drive-by lawsuits that have plagued Arizona’s lodging and tourism industry and the business community in general for the past couple of years. This bill was signed into law by Governor Ducey on April 18, 2017 and was an incredible victory for our industry and the business community at large.

SB1406, among other provisions:

  • Requires an aggrieved person to submit a written notice and affidavit for an alleged violation at a facility operated by a private entity
  • Allows a private entity a cure period of 30 or 60 days to remedy a violation, depending on the type of violation
  • Allows a court to stay an action filed pursuant to the Arizona ADA, or impose sanctions on a plaintiff if the court determines system abuse

House Bill 2322: FRANCHISES, MARK OWNERS; EMPLOYMENT RELATIONSHIPS

HB2322 clarifies that: a franchisor is not an employer or co-employer of a franchisee, unless otherwise agreed upon; and the owner of a trademark is not an employer or co-employer of either a licensee or an employee of a licensee, unless otherwise agreed upon. Governor Ducey has signed HB2322.

House Bill 2047: LIQUOR, SERVING AGE, REDUCTION

HB2047 reduces the minimum age requirement, to 18 from 19, for handling, manufacturing, selling or disposing of spirituous liquors. Governor Ducey has signed HB2047.

S1406: PUBLIC ACCOMMODATION; SERVICES; CIVIL ACTION was approved in House COW (4/13) with a floor amendment that does the following (among other things):

  • Expands the notice and cure provision beyond parking lot violations
  • For technical or structural violations that do not require a permit: 30 days to cure.
  • For non-technical or structural violations that require a permit: 30 days for the private entity to notify the aggrieved party or the party’s attorney of the corrective plan and submit permit for approval. Work must be completed within 60 days.
  • For non-technical or structural violations that require a permit: Tolls the period of time after the submission of the completed application to the governmental entity until the final determination is provided to the private entity.
    • This time is excluded from the calculation of the 60-day period.
    • Any delay caused by the entity before the determination is not tolled.
  • The aggrieved party must submit an affidavit stating that they have read the complaint and agree with the allegations, and that they have not been promised anything of value for filing a civil action.
  • The notice directed to the business that is in violation cannot demand a specific amount of money, but it can offer to engage in settlement negotiations in lieu of litigation.
  • Makes clear that websites are not covered under the Arizonans with Disabilities Act.
  • The bill as amended passed House Third Read (3/14) by a vote of 38-20.Speaker Mesnard explained that this bill as amended strikes a balance between concerns of the business community and disability community. However, some Democratic members believed the cure period to be unfair to the disability community.