ISSUE 5 - February 10, 2012

Legislative Update

Today is the 33rd day of the second regular session of Arizona's 50th Legislature. If the chambers adhere to the 100-day deadline established by rule, the session is one-third over. Next Friday, February 17, is the deadline established by leadership for bills to be heard in their house of origin.

Monday, February 6, was the deadline for introduction of bills in the House (the Senate deadline was a week earlier). This year, members of the House and Senate introduced a combined total of 1,507 bills, memorials and resolutions. This is eleven more measures than were introduced last year.

Representatives introduced a flurry of bills immediately prior to the bill introduction deadline. Among those with direct negative impacts on cities and towns are:

HB 2820 (comprehensive transaction privilege tax; services). Among other things, provides that, in fiscal year 2017-18, the Urban Revenue Sharing Fund shall consist of $424.4 million appropriated from the general fund and shall be increased by an unspecified percent in future years.

HB 2821 (universal regulatory tax credit) and HB 2815 (employment; incentives; regulatory tax credit). Establishes a credit against tax liability for the costs and expenses of "excessive regulation."

HB 2826 (consolidated election dates; political subdivisions). Mandates that local elections can no longer be held in March or May and may only be held in even-numbered years.

Highway Users Revenue Fund

Representative Vic Williams (R-Tucson), chairman of the House Transportation Committee, introduced a pair of bills designed to support the application of Highway Users Revenue Fund monies for their intended use. The League thanks Chairman Williams for his leadership on this issue and supports his efforts to protect against the diversion of HURF funds away from municipalities, counties and the State Highway Fund.

HB 2771 (HURF monies; accounting; appropriation) requires the Department of Transportation to account for HURF monies that have been diverted from municipalities, counties and the State Highway Fund; requires the Legislature to consider repayment of those funds; and appropriates $20 million as an initial repayment. HCR 2058 (HURF; monies; allowable uses) would constitutionally protect HURF and Vehicle License Tax dollars from future sweeps and restrict their use to traditional highway and roadway purposes.

Municipal Water Assessment

The Senate Appropriations Committee gave its unanimous approval to SB 1288 (municipal water fees; repeal; appropriation) on Tuesday, February 7. The vote was 11-0, with two members not voting. The bill, sponsored by Senator Gail Griffin (R-Hereford), repeals the authority of the Arizona Department of Water Resources (ADWR) to impose an assessment on municipalities to help fund departmental operations. For the coming fiscal year, the assessment is estimated to cost cities and towns approximately $6.5 million - about half of the ADWR's annual budget. SB 1288 returns the responsibility for ADWR funding to the state's general fund. The legislation will now become part of the budget negotiation process between the Legislature and the Office of the Governor.

The League testified in favor of the bill and provided committee members with a letter, signed by a broad group of stakeholders, supporting the use of the state general fund for agency operations. The committee's vice chairman, Senator Ron Gould (R-Lake Havasu City), noted that a very long list of cities and towns registered their support for the bill. The League thanks Senator Griffin for her continued championship of the measure and all of those who signed in to the Legislature's online system to support the bill's passage.

Permit Self-Certification

HB 2168 (building permits; self-certification process) provides that, "on receipt of any completed permit application, a municipality shall give the applicant the option of obtaining the issuance of the requested permit through a municipally directed permitting process or through self-certification." The bill further outlines standards for the establishment of the mandated self-certification program.

The League has worked extensively with the bill sponsor, Representative Jeff Dial (R-Chandler), to mitigate its effects on cities and towns. Working with affected parties, the League developed an amendment, acceptable to the sponsor, which would limit the bill's application to large cities and require implementation of self-certification pilot projects.

The legislation was scheduled for consideration by the House Committee on Government on Tuesday, February 7. Due to concerns raised by a professional association of architects, the bill was held for another week. The League will attend a limited stakeholder meeting on Thursday to attempt to help resolve outstanding issues. It is our understanding that the bill will be on the House Government Committee agenda for Tuesday, February 14.

Homeowners' Associations

On Thursday, February 9, the Senate Committee of the Whole debated and passed SB 1113 (homeowners' associations, public roadways). Sponsored by Senator Nancy Barto (R-Phoenix), this bill divests homeowners' associations (HOAs) of authority over roads that are dedicated to a governmental entity. The League opposes the measure because of the burdens it imposes on local law enforcement and financial resources. The bill will go on to be third read in the Senate.

Also this week, the House Government Committee heard and passed HB 2030, another HOA and public roadway measure. The sponsor, Representative John Kavanagh (R-Fountain Hills), amended this version to permit an HOA to regulate the parking of passenger vehicles on public roadways if that HOA allows each member household to park two or more vehicles in its driveway. Despite the amendment, the League opposes the bill for the same reasons it opposes SB 1113. HB 2030 now proceeds to the House Rules Committee.

Heritage Fund

HCR 2047 (state parks heritage fund; restoration) unanimously passed the House Committee on Agriculture and Water on Thursday, February 9th. Sponsored by Representative Russ Jones (R-Yuma), the resolution would restore funding of the state parks heritage fund through Arizona lottery proceeds. If this legislation passes both the House and the Senate, it would be placed on the general ballot in November for the State's voters to decide its fate. Its next stop is the House Appropriations Committee.

Firearms

On Monday, February 6, the Senate Judiciary Committee heard two firearms measures. SB 1448 (misconduct involving weapons; public property), sponsored by Senator Steve Smith (R-Maricopa), provides that, unless access is controlled or restricted by the presence of a law enforcement officer or armed security guard, a person entering a public establishment or public event is not guilty of misconduct involving weapons if that person is carrying a firearm. Despite the League's opposition, the bill passed committee by a vote of 4-3.

The other measure, SB 1474 (weapons; university; college grounds) permits people to carry firearms on college campuses but provides for restricted access to buildings. The bill, sponsored by Senator Ron Gould (R-Lake Havasu City), requires colleges and universities to provide lockers in which gun carriers can store their weapons before entering campus facilities.

SB 1474, which is opposed by the League, passed the committee by a vote of 5-3. Both SB 1474 and SB 1148 will now proceed to the Senate Rules Committee.

Municipal Financing Mechanisms

The House Ways and Means Committee addressed two bills on Monday, February 6, that would authorize the use of alternative financing mechanisms in Arizona. The first measure, HB 2445 (state capitol restoration; recapture district) authorizes the formation of a State Capitol Centennial Restoration and Economic Recapture District that uses state transaction privilege tax (TPT) revenues to benefit the district as well as the restoration of the state Capitol. The League registered its support of the measure, which was discussed and subsequently held.

The second bill, HB 2469 (revenue allocation districts) passed out of committee on 7-2 vote. The measure, sponsored by Representative Rick Gray (R-Sun City), authorizes municipalities to form Revenue Allocation Districts, which can pledge increases in both property tax and TPT revenue to secure bonds issued to benefit the district. The League actively supports the measure, which now proceeds to the House Rules Committee.

Utility notice

HB 2350 (marijuana; transfer for value; presumption) passed the House Government Committee on Tuesday, February 7, with a strike-everything amendment that would require municipalities to provide one-year notice to utilities with respect to any public works projects of at least one-half mile in length. The League opposed the measure because of the burdens it imposes on efficiency and economic development. The League, however, is working productively with industry advocates and legislative sponsors to develop an amendment that would simply require electronic publication of capital improvement plans.

Regulatory reform

The House Committee on Commerce was scheduled to consider HB 2468 (regulations; entry; public service; limitations) on Wednesday, February 8. The measure requires "agencies" to review and limit business "entry regulations" and "public service restrictions." The League is concerned that the bill could have significant unintended consequences and negative impacts on cities and towns.

The bill's sponsor, Rep. Rick Gray (R-Sun City) requested that the bill be held, and it was withdrawn from the committee agenda. The League had previously prepared an amendment to clarify that the bill would not apply to municipalities.

Alarm system installation

On Wednesday, February 8, the Senate Committee on Government Reform heard SB 1306 (alarm system installation; contractors; municipalities). The bill outlaws municipal regulation or licensure of alarm system installation. It further provides that municipalities in violation of the law will be penalized through a withholding of state shared revenues.

Both the League and the Arizona Alarm Association testified in opposition to this measure. Despite this opposition, the bill was approved on a 4-2 vote, following a spirited exchange among committee members regarding the power of the state vis-à-vis local control.

Fireworks

The Senate Government Reform Committee considered SB 1364 (consumer fireworks; permitted regulation) on Wednesday, February 8. The bill, sponsored by Senate Majority Leader Andy Biggs (R-Gilbert), was amended and passed by the committee on a 5-2 vote. As amended, the legislation: prevents municipalities from adopting an ordinance with a penalty greater than a petty offense for a person using certain consumer fireworks; allows the imposition of fees on fireworks sellers; addresses signage issues; and restricts the sale and use of consumer fireworks in counties that have fewer than 500,000 population and large amounts of federal land (i.e., Coconino and Yavapai Counties). The bill will be next considered by the Senate Rules Committee.

Spirituous liquors

On Wednesday, February 9, the House Commerce Committee considered HB 2606 (state liquor board members; compensation). The bill was used as the vehicle for a striker amendment (liquor omnibus), which passed the committee by a vote of 6-1. Among other things, the bill as amended: limits the amount of information required to be posted in connection with a license application; reduces hearing requirements; permits the Department of Liquor to regulate walk-up service windows at liquor stores; and prohibits a city or town from increasing fees on hospitality businesses in any year by an amount greater than the increase in consumer price index the previous year.

The League opposes the bill and testified in committee that a stakeholder meeting would be warranted to address outstanding concerns. The bill's sponsor, J.D. Mesnard (R-Chandler), agreed to convene such a meeting. In the meantime, HB 2606 proceeds to consideration by the House Appropriations Committee.

Independent Redistricting Commission

On Wednesday, February 8, the Senate Government Reform Committee passed two measures relating to the Independent Redistricting Commission (IRC), the voter-established body responsible for drawing legislative and congressional district boundaries. One of these bills is SB 1489 (redistricting commission; counties; cities; districts), sponsored by the committee's chairman, Senator Rick Murphy (R-Glendale). The measure extends IRC's boundary-drawing authority to county supervisor districts, municipal districts or wards, and other governmental jurisdictions. The measure next proceeds to the Senate Rules Committee.

The other IRC bill, SCR 1035 (repeal independent redistricting commission), is sponsored by Senate Majority Leader Andy Biggs (R-Gilbert). The measure would effectively repeal Proposition 106, the voter-approved initiative that established the IRC. The resolution passed committee with a technical amendment and now moves to the Senate Rules Committee. To become effective, the measure would ultimately require approval by the State's voters in a general election.

Budget Transparency

On Wednesday, February 8, the Senate Committee on Government Reform unanimously passed SB 1447 (municipal finance decisions; public meeting). The measure requires municipalities to hold at least one public meeting before approving a budget, bond election or alternative expenditure limitation election. The League believes that this bill is unnecessary due to existing statutory requirements. The bill now proceeds to the Senate Rules Committee.

Political Signs

SB 1200 (political signs; hazardous locations) stipulates that a government agency must notify the owner of a political sign in writing if a particular sign is deemed to create a hazardous condition. It further provides that, for purposes of calculating the time frame for permissible sign installation, a primary election begins on the day that early ballots are first mailed out to voters. The League worked closely with the bill's sponsor, Senator Sylvia Allen (R-Snowflake), who agreed to permit electronic notification to satisfy the "in writing" requirement of the bill. A floor amendment memorializing that agreement was adopted by the Committee of the Whole, which passed the bill by a voice vote. SB 1200 now proceeds to third reading in the Senate.

Legislator Profile - Representative Heather Carter

Representative Heather Carter
The late Archbishop Fulton J. Sheen once stated that the reason the Irish fight so often among themselves is that they're always assured of having a worthy opponent. With her flashing green eyes and shock-red hair, daughter of Ireland and Arizona Legislator Heather Carter is the very image of a feisty colleen who could teach an accomplished Irish street fighter a thing or two about getting the upper hand.

A winner of several political donnybrooks, Representative Carter fought her way to the top of the legislator effectiveness ratings during the first session of Arizona's fiftieth Legislature. By shepherding all four of her introduced bills through the House and Senate and successfully persuading the Governor to sign them into law, she scored a perfect 1.000 - quite an accomplishment for a freshman legislator who was, to some extent, learning her job on the run.

Representative Carter comes by her interest in politics naturally. A native of the mid-Atlantic region, she grew up just outside of Washington, D.C., where the local news is the world news and politics forms the wallpaper of everyday life. "Politics was always a part of our family's dinner conversations," the District 7 legislator recalls.

Her father, the family patriarch and an Air Force veteran, worked for Wang Laboratories selling mainframe computers to the federal government. One of the company's top district managers, he declined a major promotion because he wasn't interested in uprooting his family from Maryland to relocate in Atlanta. Besides, they had a great life in Montgomery County, about forty-five miles outside of Washington, D.C. The family enjoyed a spacious house on a sixteen-acre parcel of land that included a pool and horse arena amid lots of open countryside.

Eventually, the lure of the Sunbelt became too strong for Representative Carter's parents to resist. Arizona State University caught their collective eye when the Sun Devils registered an impressive victory in the school's first-ever Rose Bowl appearance in 1987. The family visited the Phoenix area the following summer, by which time the future representative had enrolled as a freshman at the University of Maryland. She was an active and well-adjusted young woman who showed horses, participated in student government and was a member of the college dance line.

Then her parents dropped the bomb: "We are selling everything, bought a house in Phoenix, and moving in June. You're welcome to join us."

After she recovered from her shock, Representative Carter chose to go west. In the fall of 1988, she enrolled as a student at Arizona State University and concurrently registered to vote as a new resident of Arizona. "First it was, 'Fear the Turtle' [as a University of Maryland Terrapin]. The next thing I knew it was, 'Fear the Fork,'" the representative recalls with a laugh.

Following her graduation with a degree in communication, she multi-tasked her way through young adulthood, earning post-graduate degrees from both ASU and NAU and working in a series of demanding and interesting jobs. Among other things, she was a real estate agent, pharmaceutical sales representative, account executive for KOOL-FM radio and account executive for the Phoenix Suns.

It was during her time in the world of professional sports that she met her husband of seventeen years, Jay Carter (whose brother, ASU Hall of Fame inductee Kendall, set an NCAA freshman record with 19 pitching victories in 1981). "Jay came in to buy Rattlers tickets," Representative Carter fondly recalls. The two courted throughout the Phoenix Suns Western Conference championship season of 1993. A particularly memorable date involved traveling together to Los Angeles to see the Suns defeat the Lakers in a playoff game. Demonstrating unrestrained team spirit, Representative Carter boarded their California-bound plane awash in purple and orange paint and toting hand-made signs in support of the visiting team. An image of the rabid fan was captured by a photographer and memorialized on the front page of the Arizona Republic and at the center of the team's annual yearbook.

Of her many non-legislative jobs, the most rewarding was her five-year engagement as a public school teacher. "Nothing prepared me better for politics than teaching middle school," Representative Carter reflects. She rose to the many challenges presented to an urban teacher, succeeding where others had failed. Many of her students still keep in touch; several credit her with being their best teacher ever and helping them find a better track for their lives.

As successful as she was as a teacher, Representative Carter found herself chronically frustrated by an institutionally inherent resistance to change and innovation. "Innovators in the public schools consistently run into policy brick walls," she observes. "We need smart people with entrepreneurial ideas making policy at the state level."

Possessing those attributes herself, she was persuaded by friends to run for the Legislature in 2010. With a solid message, a keen understanding of the campaign process and good name identification, she ran in the Republican primary against seven other candidates for two open seats. Following an energetic campaign by the buoyant and positive candidate, Representative Carter emerged as a victor from her primary and went on to become the top vote-getter in the the District 7 House general election.

With the mentality of a knowledge-hungry student, Representative Carter approaches her job at the Legislature with passion and vigor. "I always do my homework," she asserts. "When I started this job, I had never even heard of fiscal notes. Now I own them," she jokes.

"I work at 150 miles per hour," the representative confesses. She reads and responds to every message she receives at seven different email accounts. She also works for her alma mater, Arizona State, serving as a clinical associate professor in the Mary Lou Fulton Teachers College and teaching courses on computer literacy and education policy.

As furiously as Representative Carter works, she does know when to turn it off and make time for herself and her family. She does her level best to avoid outside breakfasts, dinners and weekend events. "You need boundaries," she observes. "You need to protect family time. This job will swallow you whole if you let it." She acknowledges that the job of a legislator carries enormous responsibility but explains that there is great danger in permitting it to consume one's life: "You are a better legislator if you lead a balanced life. Without balance, you lose perspective."

Helping her keep that balanced perspective is her nine-year-old daughter, Jacey, who has inherited her mother's passion for excellence. A natural horsewoman, Jacey is currently knee-deep in basketball, playing on a competitive girls basketball team and training with an NBA-credentialed professional coach. Representative Carter is also visibly proud of her husband, an entrepreneurial genius who has been recognized as one of the top realtors in the state.

Representing Carefree, Cave Creek and portions of Scottsdale and Phoenix, Representative Carter espouses an appreciation for the prerogatives of cities and towns, and she neither shares nor understands the anti-city attitude harbored by some of her colleagues. Moreover, she is an ardent supporter of Arizona's system of state shared revenue.

Expounding further on the pugilistic nature of the Irish, Bishop Sheen commented, "The more a man loves, the more a man fights for what he loves. They love God and country ... and so they fight for them." Motivated as she is by principled and enduring values, Representative Heather Carter is a sure bet to score many more public policy knock-outs and to ultimately take home a championship belt from the boxing ring that is life.

Legislative Bulletin is published by the League of Arizona Cities and Towns.
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