Bulletin: AZ2019001

Dear Associates:

The Arizona Legislature adjourned its marathon 2019 regular session sine die May 28, 2019, after 135 days in session. This year, the Legislature introduced 1,318 bills, sent 332 bills to the Governor's desk, 321 were signed into law, and 11 were vetoed.
The following is a summary of legislation of interest to the title industry, as provided by the Arizona House of Representatives, House Research Staff that was passed during the 2019 legislative session.

BILLS THAT PASSED

SB1008 (Insurance; prohibited inducements; exceptions) [Chapter 12]
Allows an insurer to offer or provide certain ancillary products or services in connection with an insurance transaction that are intended to minimize or prevent claims-related losses or expenses or harm to the public. Asserts these products or services are exempt from statutes related to prohibited inducements or rebates. Amends ARS Sections 20-450, 20-451 and 20-452.
Effective: August 27, 2019

SB1030 (remote online notarization; registration) [Chapter 56]
Outlines the process for remote online notarization and requires the Secretary of State to adopt rules regarding remote online notarization. Allows a notary public to perform remote online notarizations for individuals who are physically in this state, outside of this state but not the United States or outside of the United States if certain conditions apply. Amends ARS Sections 41-319, 41-330, Title 41, Chapter 2, by adding Article 4; Amends Section 44-7011.
Effective: July 1, 2020

SB1218 (beneficiary deeds; separate property; nonlapse) [Chapter 19]
Adds clarification to beneficiary deeds regarding conveyance of real property and grantee beneficiaries. Specifies the interest in real property conveyed by a beneficiary deed is the separate property of the named grantee beneficiary and is not community property, unless otherwise stated in the beneficiary deed. Stipulates a beneficiary deed is void and not applicable to statute relating to substitute gifts of wills if there are no grantee beneficiaries named in the beneficiary deed who survive the owner, unless provided otherwise in the beneficiary deed. Amends ARS Section 33-405.
Effective: August 27, 2019

SB1304 (mechanics liens; notice; applicability) [Chapter 187]
Requires an updated 20-day preliminary notice be given when the actual estimated total price of a project exceeds 30%, rather than 20% of the total price in any prior original preliminary notice. Amends ARS 33-992.01.
Effective: August 27, 2019

SB1309 (renewal of judgments; applicability) [Chapter 20]
Provides that the 10-year limitations period to request or issue a writ of execution or renewal for a judgment applies only to judgments entered after August 2, 2013, or judgements entered before August 3, 2013, and renewed before August 2, 2018. Amends ARS Sections 12-1551, 12-1611, 12-1612 and 12-1613.
Effective: August 27, 2019

SB1531 (HOAs; costs; assessments) [Chapter 200]
Requires condominium and planned community associations to provide delinquent members with a written notice before collection of the delinquent monies. Stipulates that a lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within six years after the full amount of the assessment becomes due. Amends ARS Sections 33-1256 and 33-1807.
Effective: August 27, 2019

HB2443 (property disclosure affidavit; adjudication claim) [Chapter 103]
Requires property affidavit disclosure forms to include if the property or water used on the property is the subject of an adjudication to determine the use and relative priority of water rights. Specifies that a map of adjudicated areas can be found on the Arizona Department of Water Resources website. Amends ARS Section 33-422.
Effective: August 27, 2019

HB2230 (writ of garnishment; certified mail) [Chapter 29]
Allows a judgment creditor to serve a writ of garnishment by certified mail. Amends ARS Sections 12-1574 and 12-1577.
Effective: August 27, 2019

HB2756 (revenue; budget reconciliation; 2019-2020.) [Chapter 43]
Requires licensed escrow agents to file an information return, using the same form and format of the return filed with the internal revenue service, to the Department of Revenue (DOR) by March 31 for the sale of real property in this state that are closed by December 31 of the prior year. Amends ARS by adding Section 43-312.

Effective: August 27, 2019

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