What do new laws mean for Arizona business?

Although the legislature adjourned in early May, the fruits of their labor are becoming law today. Known as the general effective date, all bills without an emergency clause that are passed by the legislature and signed by the Governor become law 90 days after the legislature wraps up the session. Approximately 346 laws are going on the books, and many will have a direct impact on businesses in Arizona.

“Arizona is showing up on national top 10 lists for things like job growth, startups, and overall business environment,” Arizona Chamber of Commerce and Industry spokesperson Garrick Taylor said. “You don’t make that kind of progress without pro-business policies in place that encourage economic growth. Credit to the Legislature and Gov. Ducey for working diligently to ensure we stay open for business.”

Here are the highlights:  

Food Tax Fairness: H.B. 2484 (Rep. Shope)
A coalition of business community groups ranging from retailers to beverage makers worked with  Rep. T.J. Shope to pass a law that ensures that certain types of food aren’t taxed at a discriminatory rate. Whether retailers are selling a six-pack of bottled water or soda, the two products should be taxed at the same rate.

Data Security: H.B. 2154 (Rep. Shope)
The new law updates the state’s data breach statutes with definitions that include unique biometric data and electronic signatures, characteristics that can be used in identity theft.  Simultaneously the bill strengthens protections for consumers and adds notification requirements for those who fall victim to data breaches.  

FinTech Sandbox: H.B. 2434 (Rep. Weninger)
Within a regulatory sandbox, a business is afforded fewer barriers to enter a market in exchange for limited access to the market. From the date of approval, the business can remain in the sandbox for two years with the possibility for a one-year extension after careful assessment from the Arizona Attorney General’s office.

Blockchain and Cryptocurrency laws: H.B. 2601, H.B. 2602 and H.B. 2603 (Rep. Weninger)
A series of laws will update Arizona statutes to incorporate blockchain and expand crowdfunding technologies for financial services. The laws make changes to the Arizona intrastate crowdfunding exemption statutes to include virtual coin offerings, provide clarity to an individual’s rights to blockchain technology and expand the applicability of blockchain technology for corporate transactions.

Arizona Commerce Authority reauthorization: H.B. 2167 (Rep. Weninger)
The Arizona Commerce Authority, the state’s economic development agency, has been renewed for another six years to focus on business development and attraction efforts. By law state agencies must receive legislative reauthorization.