2012 Legislative Update

Arizona City-County Managers AssociationFriday, July 27, 2012

Ken Strobeck, Executive DirectorLeague of Arizona Cities and Towns

50th Legislature, 2nd Regular Session:At a Glance

• Adjourned sine die on May 3, the 116th day of session• Last year adjourned sine die on April 20, the 100th* day of session.• Bill stats:

– 1,395 bills introduced (45 more than last year; 162 more than 2010)– 387 bills passed (1 more than last year; 35 more than 2010)– 362 bills signed (5 more than last year)– 25 bills vetoed (4 less than last year)– 149 memorials and resolutions introduced (3 more than last year)– 49 memorials and resolutions passed (13 more than last year)

• Six new legislators. (Fontana, Lewis, Lovas, Lujan, Pierce J, Quezada), 3 resignations, 1 recall

• League tracked 382 bills with municipal impacts

FY 2013 Budget Success• Eliminated the ADWR fee on municipalities

– Savings of up to $7M annually– Same provisions as SB 1288

• Eliminated the diversion of HURF monies to fund MVD– Restores $26.5M to cities and towns– Shifts the impact to the SHF

• Maintains the diversion of HURF monies to DPS – Impact of $36.5M to cities and towns– $775,000 increase in funding compared to FY12

• E911 funding maintained– No sweep this year. 4 projects slated for funding.

League Losses

• HB 2469 – revenue allocation districts– Economic tool for municipalities– Vetoed by the Governor

• HB 2826 – consolidated election dates; political subdivisions– Move candidate elections to fall of even years– League, Counties vs. Goldwater Inst. and GOP

• SB 1442 – prime contracting; manufacturing facilities; infrastructure– “Intel Bill” originally supported by the League– Last minute changes impacted shared revenue

League Victories (Avoided)

• Impact Fees; no legislation this year!• Regulatory Reform– HB 2468, HB 2585, SB 1470, SB 1505, SB1306

• Photo Radar– SBs 1315, 16, 17, 18, SCR 1029, SCR 1031

• Goldwater Bills– SB 1064, HB 2168, HB 2570, HB 2571

• Many others– HB 2416, SB 1239, SB 1364, SB 1507

League Victories (Fixed and Vetoed)• Fixed

– HB 2123 – transaction privilege tax reform committee• Committee to review TPT in Arizona• Fix: Increased municipal representation and removed assumed results

– Governor’s TPT Simplification Task Force– HB 2815 – employment; incentives; regulatory tax credit

• Makes changes to capital gains, net operating loss, tax credits• Fix: Removed nonsensical regulatory tax credit

– SB 1001/SCR 1001– military preservation; land exchanges• Expands authority of land department to exchange state lands for the preservation of military installations; on 2012 ballot

League Victories (Fixed and Vetoed)

•Vetoed– HB 2557 – NOW: intersection; definition

• Provides a state definition of intersection in order to reduce photo radar citations.

– HB 2729 – state regulation of firearms • Provided a costly mandate in order to prohibit firearms in public buildings.

League Victories (Wins)• HB 2094 – prepaid wireless E911 excise tax– Provides a viable mechanism for collecting on prepaid

cell phones

• HB 2264 – ASRS; employee; employer contributions; rate– Reverts ASRS to a 50/50 split

• HB 2466 – NOW: payments; local sales tax– Establishes a web portal for non-program city

tax remittance

League Victories (Wins)

• HB 2745 – NOW: PSPRS; employer contributions– Exempts certain positions from the PSPRS ACR.

• SB 1131 – transportation project advancement notes– Allows cities to use TPANs to accelerate transportation

projects

• SB 1135 – government deposits– Allows municipalities to invest in federally

insured savings deposit accounts

51st Legislature• Key Uncontested Races:

– LD12(S) – Senator Andy Biggs (majority leader)– LD19(H) – Rep. Anna Tovar (minority whip)

• Key Battles:– LD1(H) – Rep. Fann vs. Sen. Klein vs. Speaker Tobin– LD10(S) – Sen. Antenori vs. Bradley– LD13(S) – Sen. Nelson (withdrawn) vs. Sen. Shooter– LD16(S) – Sen. Crandall vs. Rep. Fillmore– LD23(R) – Rep. Kavanagh vs. Rep. Ugenti vs. Petersen– LD24(S) – Rep. Hobbs vs. Cheuvront– LD25(S) – Pearce vs. Worsley– LD26(S) – Sen. Lewis vs. Rep. Ableser– LD28(H) – Rep. Reeve vs. Rep. Brophy McGee

vs. Rep. Meyer

Questions???

Contact UsLeague of Arizona Cities and Towns

1820 W. Washington St.Phoenix, AZ 85007PH: (620) 258-5786

kstrobeck@azleague.orgrguillen@azleague.org