Ariz. Rev. Stat. § 44-1272 – Telephone seller; registration; business opportunities; late filing penalty

A. A seller shall file a verified registration statement with the secretary of state before the seller solicits any consumer from a location in this state or any consumer located in this state. Each principal of the seller shall sign the registration statement, have the signature notarized and file the statement with the secretary of state along with the annual registration fee prescribed by section 44-1275. The registration statement expires on June 30 of each year and shall be annually renewed by completing a new registration statement within thirty days before expiration and paying the annual registration fee. If a seller is delinquent in filing its annual registration statement, the secretary of state may assess a late filing penalty not to exceed one hundred dollars when the seller submits its annual registration statement. If a seller fails to renew its annual registration statement before September 30 of each year, the seller is unregistered.
B. If, before the expiration of a seller's annual registration, there is a change in any of the information required by subsection C of this section, within ten days of the change the seller shall file a supplemental statement with the secretary of state, except that a seller shall only update quarterly any changes in solicitors hired by the seller.
C. Each registration statement shall contain all of the following information:
1. 1. The true legal name of the seller.
2. 2. The name under which the seller is doing business or intends to do business.
3. 3. The seller's business form and state of organization.
4. 4. If the seller is a corporation or limited liability company, a copy of its articles of incorporation and bylaws and amendments to the bylaws. If the seller is a partnership or limited liability partnership, a copy of the partnership agreement. If the seller is operating under a fictitious business name, the location where the fictitious name has been registered.
5. 5. The complete street address of the physical location of the principal place of business of the seller, the complete street address of all other locations from which the seller will be conducting business and all telephone numbers for telephones at these locations.
6. 6. For each principal and manager, the true legal name, residence address, telephone number and date of birth and a clear and legible copy of the current driver license or valid government issued photo identification card. A seller is not required to submit the information required in this section for the seller's employees.
7. 7. For each manager, the address of the business location for which the manager is responsible.
8. 8. For each solicitor, the solicitor's true legal name, business address and telephone number and, for each principal and manager of a solicitor, the true legal name, residence address, telephone number and date of birth and a clear and legible copy of the current driver license or valid government issued photo identification card. A solicitor is not required to submit the information required in this section for the solicitor's employees.
9. 9. The name and address of the seller's agent in this state who is authorized to receive service of process in this state.
10. 10. A copy of the bond filed with the state treasurer pursuant to section 44-1274.
11. 11. Whether a principal or manager:
  1. (a) Has been convicted or pleaded no contest to a felony or misdemeanor involving moral turpitude or a violation of this article.
  2. (b) Has been held liable in a civil action, either by final judgment or by entry of a stipulated judgment, if the civil action alleged fraud, embezzlement, racketeering, fraudulent conversion or misappropriation of property or a violation of this article or the use of untrue or misleading representations in an attempt to sell or dispose of real or personal property or the use of unfair, unlawful or deceptive business practices.
  3. (c) Is subject to a currently effective injunction or restrictive order relating to a business activity as a result of an action brought by a public agency or department, including an action affecting a vocational license. The statement shall include the name of the court, the date of the conviction, the judgment, order or injunction and, if applicable, the name of the governmental agency that filed the action resulting in the conviction, judgment, order or injunction.
12. 12. A copy of any:
  1. (a) Script, outline or presentation the seller will require or suggest that a solicitor use, except that if the seller does not require or suggest a script, outline or presentation, a statement that no such document is required or suggested.
  2. (b) Sales information and literature provided by the seller to a solicitor or described by the seller for use by the solicitor, including scripts, outlines, presentations, information on how to conduct telephone sales, sample instructions, sample closings, product information and contest or premium award information.
  3. (c) Sales information and any other literature provided by the seller to a consumer in connection with any solicitation.
13. 13. If the seller is soliciting consumers to purchase a business opportunity or merchandise related to a business opportunity:
  1. (a) The business experience of the seller, including the length of time that the seller has sold the business opportunity being offered to consumers or sold any other business opportunity to consumers.
  2. (b) The names of all businesses for which each principal or manager previously sold business opportunities.
  3. (c) The dates that each principal or manager previously sold business opportunities.
14. 14. If a solicitation involves a business opportunity or merchandise related to a business opportunity:
  1. (a) A factual description of the business opportunity offered to be sold and of the merchandise, training and assistance that the seller will provide to the consumer.
  2. (b) A statement describing any goods, services, signs or fixtures relating to the establishment or the operation of the business opportunity that the consumer is required to purchase, lease or rent directly or indirectly from the seller.
D. If a seller expressly represents or implies to any consumer, directly or through a solicitor, that the consumer is or may be eligible to receive any premium, the seller shall submit with the registration statement another statement setting forth for each premium mentioned:
1. 1. A description of the premium.
2. 2. The value or worth of the premium and the basis for the valuation.
3. 3. All terms and conditions a consumer must satisfy in order to receive the premium.
4. 4. The odds of being able to receive the premium, and if the odds are not calculable in advance, the factors used in calculating the odds.
5. 5. If the consumer will receive fewer than all of the premiums described by the seller:
  1. (a) The manner in which the seller decides which premium the consumer will receive.
  2. (b) The odds of being able to receive each premium, and if the odds are not calculable in advance, the factors used in calculating the odds.
  3. (c) The name and address of each person who within the past twelve months has received the premium having the greatest value and the premium with the smallest odds of being received.
E. If the seller expressly represents or implies to any consumer, directly or through a solicitor, that the seller can or may be able to make a loan, arrange a loan, assist in arranging a loan or assist in providing information that may lead to obtaining a loan, the seller shall submit with the registration statement another statement setting forth:
1. 1. For the previous twenty-four months, the names and addresses of any person who lent money to:
  1. (a) Consumers who responded to the solicitations of the seller's predecessor or the seller's officers or owners or those persons having present management responsibilities or to companies with which they were associated.
  2. (b) The seller's predecessor or the seller's officers or owners or those persons having present management responsibilities or to those companies with which they were associated for them to lend to consumers who responded to solicitations.
2. 2. For the twelve months after the date of the registration, the names and addresses of all persons who informed the seller that they may be able to lend money to consumers solicited by the seller or to the seller for the seller to lend to consumers who respond to the seller's representations that the seller can make a loan, arrange a loan, assist in arranging a loan or assist in providing information that can lead to obtaining a loan.
3. 3. Copies of all contracts between the seller and lenders or prospective lenders who may lend money:
  1. (a) To the seller to lend to consumers who, in conjunction with the seller's business, respond to the seller's representations that the seller can make a loan, arrange a loan, assist in arranging a loan or assist in providing information that can lead to obtaining a loan.
  2. (b) Directly to consumers to whom the seller may represent that it can arrange or assist in providing information that can lead to obtaining a loan.
F. If any change is made to any script, outline, presentation, sales information or literature to be used by a seller during any solicitation, the seller shall submit the new or revised material before it is used.
G. Compliance with the registration and filing requirements of this article by a seller does not constitute an approval or endorsement by this state of the seller's registration documents or conduct.