A.R.S. § 44-171: Business License Exemption

44-171. Exemption from licensure, certification, registration or other authorization to act

A. Notwithstanding any other law, if the requirements prescribed by subsection B of this section are met, a person is exempt from state law relating to licensure, certification, registration or other authorization to act under the following:

1. Title 6, not including title 6, chapter 9, except that a party is not exempt from the requirements prescribed in section 6-114, 6-632, 6-635 or 6-637.

2. Title 9.

3. Title 10.

4. Title 11.

5. Title 23.

6. Title 32, chapter 9 or 46.

7. This title, except that this paragraph does not apply to a sales finance company that is licensed pursuant to chapter 2.1 of this title or a party that is subject to chapter 9, article 6 of this title.

B. Subsection A of this section applies only if all of the following apply:

1. The person is a party to a contract between two or more private parties.

2. The subject of the contract is substantially delivered by electronic means.

3. The contract specifies the laws from which the person is exempt.

4. The subject of the contract is lawful.

5. The exemption does not materially affect a third party.

6. The exemption does not clearly harm or damage public health or safety.

7. The subject of the contract does not exceed $6,000 per transaction between any two parties and $150,000 in total aggregate profit in the previous calendar year for all parties related to the services provided in the contract.

C. A person is not guilty of failure to procure or exhibit a business license pursuant to section 13-3706 if the person is exempt from the business license requirement under this section.

D. If a state agency notifies a person described in subsection A of this section that the person is in violation of a state law relating to licensure, certification, registration or other authorization to act, within six months after receiving the notice the person shall do either of the following:

1. Become licensed, certified or registered or receive another authorization to act, as applicable.

2. Amend the contract described in subsection B of this section to exempt the person from the state law relating to licensure, certification, registration or other authorization to act.

E. If the total aggregate profit related to services provided in a contract pursuant to subsection B of this section exceeds $150,000, the parties may agree to amend the contract to comply with state law relating to licensure, certification, registration or other authorization to act, as applicable. After exceeding $150,000 in total aggregate profit, the parties have until July 1 of the following calendar year to amend the contract or become licensed, certified or registered or to receive another authorization to act before the state agency may commence or take disciplinary action against any party to the contract.

F. If a state agency notifies a party to a contract of a violation of a state law pursuant to subsection D of this section, the state agency may not commence or take disciplinary action against the party during either of the following time periods:

1. The six-month period in which the party is working either to become licensed, certified or registered or to receive another authorization to act, as applicable, or to amend the contract to exempt the party from the state law relating to licensure, certification or registration or the other authorization to act.

2. The time period after the party has submitted an application to become licensed, certified or registered or to receive another authorization to act and before the state agency has approved or denied the application.

G. A violation of this section is an unlawful practice pursuant to section 44-1522. The attorney general may investigate and take appropriate action as prescribed by chapter 10, article 7 of this title.