power; public utilities; securities; repeal

HB2540 - 572R - I Ver

REFERENCE TITLE:
power; public utilities; securities; repeal

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2540

Introduced by

Representative
Mathis

AN
ACT

repealing title 30, chapter 8, arizona
revised statutes; repealing title 40, chapter 3, Arizona Revised Statutes;
amending section 47-9109, Arizona Revised Statutes; relating to public
utilities.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Repeal

Title 30, chapter 8, Arizona Revised
Statutes and title 40, chapter 3, Arizona Revised Statutes, are repealed.

Sec. 2. Section 47-9109, Arizona Revised
Statutes, is amended to read:

START_STATUTE
47-9109.

Scope

A. Except as otherwise provided in subsections C and
D of this section, this chapter applies to:

1. A transaction, regardless of its form, that
creates a security interest in personal property or fixtures by contract;

2. An agricultural lien;

3. A sale of accounts, chattel paper, payment
intangibles or promissory notes;

4. A consignment;

5. A security interest arising under section 47-2401
or 47-2505, section 47-2711, subsection C or section 47-2A508,
subsection E, as provided in section 47-9110; and

6. A security interest arising under section 47-4210
or 47-5118.

B. The application of this article to a security
interest in a secured obligation is not affected by the fact that the
obligation is itself secured by a transaction or interest to which this chapter
does not apply.

C. This chapter does not apply to the extent that:

1. A statute, regulation or treaty of the United
States preempts this article;

2. A statute of a foreign country or a governmental
unit of a foreign country, other than a statute generally applicable to
security interests, expressly governs creation, perfection, priority or
enforcement of a security interest created by that country or governmental
unit; or

3. The rights of a transferee beneficiary or
nominated person under a letter of credit are independent and superior under
section 47-5114.

D. This chapter does not apply to:

1. A landlord's lien, other than an agricultural
lien;

2. A lien, other than an agricultural lien, given by
statute or other rule of law for services or materials, but section 47-9333
applies with respect to priority of the lien;

3. An assignment of a claim for wages, salary or
other compensation of an employee;

4. A sale of accounts, chattel paper, payment
intangibles or promissory notes as part of a sale of the business out of which
they arose;

5. An assignment of accounts, chattel paper, payment
intangibles or promissory notes that is for the purpose of collection only;

6. An assignment of a right to payment under a
contract to an assignee that is also obligated to perform under the contract;

7. An assignment of a single account, payment
intangible or promissory note to an assignee in full or partial satisfaction of
a preexisting indebtedness;

8. A transfer of an interest in or an assignment of
a claim under a policy of insurance, other than an assignment by or to a health
care provider of a health-care-insurance receivable and any
subsequent assignment of the right to payment, but sections 47-9315 and
47-9322 apply with respect to proceeds and priorities in proceeds;

9. An assignment of a right represented by a
judgment, other than a judgment taken on a right to payment that was
collateral;

10. A right of recoupment or setoff, but:

(a) Section 47-9340 applies with respect to
the effectiveness of rights of recoupment or setoff against deposit accounts;
and

(b) Section 47-9404 applies with respect to
defenses or claims of an account debtor;

11. The creation or transfer of an interest in or
lien on real property, including a lease or rents thereunder, except to the
extent that provision is made for:

(a) Liens on real property in sections 47-9203
and 47-9308;

(b) Fixtures in section 47-9334;

(c) Fixture filings in sections 47-9501, 47-9502,
47-9512, 47-9516 and 47-9519; and

(d) Security agreements covering personal and real
property in section 47-9604;

12. An assignment of a claim arising in tort, other
than a commercial tort claim, but sections 47-9315 and 47-9322
apply with respect to proceeds and priorities in proceeds;

13. An assignment of a deposit account in a consumer
transaction, but sections 47-9315 and 47-9322 apply with respect to
proceeds and priorities in proceeds;

14. A transfer, pledge, assignment, grant or similar
action by this state, another state or a governmental unit of this state or
another state;

15. A claim or right to receive compensation for
injuries or sickness as described in 26 United States Code section 104a(1) or
(2); or

16. A claim or right to receive benefits under a
special needs trust as described in 42 United States Code section 1396p(d)(4)
; or

17. A security interest that is
subject to section 30-1006 or 40-607
.
END_STATUTE