ISSUE 6 - February 17, 2012

Legislative Update

Today is the 40th day of the second regular session of Arizona's 50th Legislature. It is also the deadline for bills to be heard in committee in their house of origin. Next week, legislative action will largely move to the floors of the House and Senate, and committees will begin to consider bills that have been passed by the other body.

During the past week, amid celebrations of Arizona's Centennial, the Governor unveiled her state employee personnel reform package. The initiative, introduced in the House of Representatives as a 275-page strike-everything amendment to HB 2571, represents one of the Governor's highest legislative priorities. Among other things, the plan will: require most new state employees to be "at-will" (i.e., uncovered by civil service protections); eliminate personnel policies based on seniority; consolidate nine state personnel systems; and reduce the State Personnel Board's authority to modify disciplinary actions against state employees.

While the Senate is operating at full strength, there are currently two vacancies in the House. A House seat in District 4 has remained unoccupied since Senator Judy Burges vacated it upon her appointment to the Senate to complete the term of Senator Scott Bundgaard. The Maricopa County Board of Supervisors is expected to appoint a new Representative next week.

Also, Representative Richard Miranda, a state legislator since 1999, resigned suddenly on February 16. His successor to represent District 13 in the House will also be appointed by the Maricopa County Board of Supervisors.

Regulatory Tax Credit

On Wednesday, February 15, the House Commerce Committee considered and passed HB 2815 (employment; incentives; regulatory tax credit) by a 5-3 vote. The bill, regarded as the House leadership's "jobs package," includes a number of provisions intended to stimulate the economy. One section of the bill, however, represents one of the most strident anti-government provisions to be considered by the Legislature this session. It introduces a brand new concept of a "regulatory tax credit," which can be claimed by any person or organization purportedly aggrieved by an "excessive regulation."

Other provisions of the bill promote community college job training and provide for a phase-out of the state tax on capital gains. The capital gains provision carries a fiscal note estimating a loss to the state general fund of $62 million in FY 14 and a loss of $399 million by FY 20 when the tax cut is fully implemented. Fifteen percent of the loss would represent the reduction to Urban Revenue Sharing in any given year.

Regardless, it is the tax credit section that raises the greatest concern for cities and towns. Because the definitions of "regulation" and "excessive regulation" are so broad, virtually any city or town regulation could be the subject of a claim. For example, any regulation that deals with aesthetics - such as sign ordinances, neighborhood code standards, or visual blight - could be subject to a claim of excessive regulation. So would standards that address barking dogs, noise, home businesses, and virtually any other regulation that either prohibits or requires certain actions.

The amount of the tax credit against cities and towns is limited to $100,000 per year statewide, but there is no limit on the number of claims that could be filed. Also, the bill authorizes the State Treasurer to withhold the amount of a tax credit from the shared revenue payments due to the city. It includes a complicated process in which staff from the Department of Revenue would determine whether a regulation is "excessive," notwithstanding its enactment by an elected mayor and council. Furthermore, the provision provides for no judicial review of a departmental decision.

The regulatory tax credit scheme, an untested and unworkable brainchild of the Goldwater Institute, reinforces an anti-government stereotype that all regulation is harmful, rather than protective of property values, the community and its quality of life. Despite the committee vote, several Representatives expressed concerns with the tax credit provision of the bill. Please watch for updates from the League on this measure.

Consolidated Elections

On Thursday, February 16, the Senate Judiciary Committee passed HB 2826 (consolidated election dates; political subdivisions) by a very close vote of 5-4. This bill would consolidate all city and town elections to August and November of even-numbered years. The League opposes this measure, because it: reduces local control; will delay special elections (such as recalls, referenda and initiatives) for up to two years; and is dismissive of charter authority. The League will pursue opportunities to positively impact the legislation as it moves closer to floor action in the House.

Licensing and permitting

A strike-everything amendment to HB 2585 (s/e: government; time frames; appeal) was heard by the House Commerce Committee on Wednesday, February 15. The amendment revived legislation from last year that would require municipalities to act on license and permit applications within 45 days. Failure to do so would, in most cases, result in automatic approval of subject applications. The proposal was overtaken last year by deliberations on SB 1598 (cities; counties; regulatory review), a complex regulatory reform measure that was signed into law.

The League testified against HB 2585 during the committee hearing. Subsequent to the testimony, Rep. Bob Robson (R-Chandler) expressed serious concerns about the viability of issuing permits for large manufacturing facilities within such a short timeframe. The sponsor of the bill, Rep. Jim Weiers (R-Phoenix) then asked for the bill to be held.

Municipal Proceedings

The House Government Committee considered HB 2570 (political subdivisions; proceedings; governing bodies) on Tuesday, February 14. The bill provides that a municipal ordinance may not take effect until it has passed three public readings by a city council on three separate days. The League opposes the measure because it inappropriately grafts a state legislative process onto a dissimilar city council process. Unlike the Legislature, councils (which have much greater transparency and opportunity for public input than the Legislature) do not meet daily. The measure would slow down approval of zoning requests, special use permits and other municipal enactments.

Despite the League's opposition, the measure passed by a vote of 6-2. Nevertheless, the sponsor of the legislation, Rep. Justin Olson (R-Mesa), has agreed to consider more appropriate methods for ensuring proper notice of municipal actions.

Regulatory Reform

On Thursday, February 16, the Senate Committee on Border Security, Federalism and States' Sovereignty considered a strike-everything amendment to SB 1505 (s/e: municipal governments; rulemaking). The amendment would impose upon municipalities a regulatory process similar to that of the Administrative Procedures Act, which is utilized by the Federal Government for rulemaking. The League strongly opposes the measure due to its complexity and onerous bureaucratic requirements. Despite the League's testimony in opposition, the committee passed the measure by a vote of 6-1.

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, Rep. 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.

After being held in the House Committee on Government last Tuesday, February 7, the bill was not included on any committee agenda this past week. Because this is the last week to formally hear bills in their house of origin, the bill is unlikely to move forward.

Firearms

SB 1304 (firearms regulation; political subdivisions), sponsored by Senator Frank Antenori (R-Tucson), passed the Senate Judiciary Committee on Monday by a 5-2 vote. This bill repeals statutory language permitting a political subdivision to adopt an ordinance or rule restricting the discharge of firearms within one-fourth of a mile of an occupied structure. The League, an opponent of the measure, requested a stakeholders' meeting to discuss its concerns with the sponsor. The sponsor committed to convene such a meeting. In the meantime, the bill moves on to the Rules Committee.

A related measure, HB 2729 (state regulation of firearms), requires governmental entities to either allow guns into public establishments, or have armed certified officers and metal detection equipment at entrances. The measure, sponsored by Rep. David Gowan (R-Sierra Vista) applies to the State and its political subdivisions and preempts municipalities from having any firearms ordinance stricter than state law. The measure passed the House Committee on Military Affairs and Public Safety by a vote of 6-2 and proceeds to the Rules Committee.

Fireworks

On Wednesday, February 15, the House Committee on Military Affairs and Public Safety considered an amended version of HB 2361 (consumer fireworks; regulation). As amended, the bill: establishes a maximum penalty for the use of certain consumer fireworks; allows the imposition of fees on fireworks sellers; addresses signage issues; and restricts the sale and use of consumer fireworks in Coconino and Yavapai Counties. The measure, sponsored by Rep. Karen Fann (R-Prescott), passed by a vote of 8-0 and proceeds to the House Rules Committee.

Photo Radar

On Monday, February 13, the Senate Judiciary Committee considered a number of measures sponsored by Senator Frank Antenori (R-Tucson) designed to inhibit or discourage the use of photo radar across the state. One such bill, SB 1315 (photo enforcement; tickets; service), would change the service options for photo radar tickets to include personal service or certified mail. The bill failed by a vote of 2-5.

Another measure, SB 1316 (red light violations; photo radar), was held. The bill would require that a red light be illuminated for one full second before a photo enforcement system can activate.

The final photo radar measure considered by the committee was SCR 1029 (photo radar prohibition), which passed by a 4-1 vote. This is a ballot proposition that would eliminate all photo radar enforcement in the state. The League opposes the measure based on the diminution of local authority it would effect. SCR 1029, which does not require gubernatorial approval, 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. SB 1200 passed its third reading in the Senate by a vote of 21-9 and now proceeds to the House for further consideration.

Online Tax Remittance

After being held on the past three agendas of the House Committee on Ways and Means, HB 2466 (local sales tax; payments; DOR) was heard on Monday, February 13. The committee considered and unanimously passed a strike-everything amendment that provides for the creation of an online portal for taxpayers to pay municipal sales tax for all self-collecting cities. The amendment also authorizes the Arizona Department of Administration to solicit competitive bids for a public-private partnership for portal development. The League expresses its gratitude to Rep. Jeff Dial (R-Chandler) and Rep. Rick Gray (R-Sun City), the bill's sponsor, for their considerable work on this issue and their willingness to work closely and productively with the League.

Business Incentives

On Thursday, February 16, the Senate Finance Committee passed SB 1442 (prime contracting; manufacturing facilities; infrastructure) by a vote of 6-1. The measure allows municipalities and counties to recapture state transaction privilege taxes paid by qualified manufacturing facilities for public infrastructure necessary for those facilities. The League supports the measure as a tool for attracting manufacturing jobs to Arizona. The bill was amended in committee to make clarifying changes and to reduce the threshold for qualifying facilities in rural counties.

Pension Reform

On Tuesday, February 14, the House Employment and Regulatory Affairs Committee considered a strike-everything amendment to HB 2745 (defined contribution retirement systems) to make a change to the Alternate Contribution Rate (ACR) requirements of the Public Safety Personnel Retirement System (PSPRS). The change would preclude employers from paying the PSPRS ACR on a PSPRS-eligible position if the retired person was hired before the effective date of last year's pension reform bill, SB 1609 (retirement systems; plans; plan design) and the individual is enrolled in another state retirement system. This change will result in cost savings for some of Arizona's small cities and towns. The League thanks Rep. Justin Pierce (R-Mesa) for spearheading this effort and and Rep. Bob Robson (R-Chandler) for sponsoring the amendment. The measure passed unanimously and now moves on to the Rules Committee.

Highway Users Revenue Fund (HURF)

On Thursday, February 16, the House Transportation Committee considered HCR 2058 (HURF; monies; allowable uses). The bill would constitutionally protect HURF and Vehicle License Tax dollars from future sweeps and restrict their use to traditional highway and roadway purposes. The League has worked extensively with the bill sponsor, Rep. Vic Williams (R-Tucson), and provided testimony in favor of the bill. Additionally, more than 20 cities and towns formally registered their support. The bill passed committee with a unanimous vote of 7-0.

The bill is secondarily assigned to the House Appropriations Committee. 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.

Water Utilities

On Monday, February 13, the House Government Committee considered a strike-everything amendment to HB 2416 (s/e: water and wastewater; denial prohibited) that requires municipal water providers to grant services outside of their corporate boundaries if certain conditions are met. The League opposes the measure, sponsored by Rep. David Stevens (R-Sierra Vista), because of its negative impacts on local control, as well as its lack of protections for current customers and assured water supplies. The bill passed the House Government Committee by a vote of 5-4 and proceeds next to the House Rules Committee.

On Wednesday, the Senate Committee on Water, Land Use and Rural Development considered SB 1319 (corporation commission; municipal water; jurisdiction), sponsored by Senator Frank Antenori. The bill would invest the Corporation Commission with the authority to regulate municipal water providers. The measure, opposed by the League, failed by a vote of 1-4.

Legislator Profile - Representative Peggy Judd

Representative Peggy Judd
State Representative Peggy Judd is a small town girl with big city energy. Having spent her entire life applying that energy to the care of her family and the improvement of her community, she has brought her animated spirit and grinding horsepower to the Arizona Capitol, where she can make a difference on a larger scale.

A native of Willcox, Arizona (population 4,294), Representative Judd has resided in Cochise County since birth. To hear her speak of her beloved home and its rich surroundings, there is little reason to think that she'll ever leave.

"I love my world," the freshman representative enthuses. "I love the desert and the nighttime sky. I love the earth and trees and mountains. I love the cactus, the trains, the mines, the small hill towns, the smelters. I love everything about it."

Raised on a Willcox farm, Representative Judd is a true daughter of Arizona. Her ancestral roots, encoded with a colorful state history, wind through early Mormon settlements, include indomitable repatriates from Mexico and even connect with Winnie Ruth Judd, the infamous "trunk murderess" (convicted of murder in 1932 after fleeing Phoenix on a train to Los Angeles with two shipping trunks containing the remains of her victims).

The oldest of six children, Representative Judd has fond memories of her childhood on the farm. It was during her formative years that she developed a zealous work ethic, became actively involved in her church, and began a lifetime of service to others.

She was in high school when she met her future husband and boon companion, Kit. More interested in Kit's kid brother Alan, the teenaged Peggy would loiter around the auto shop where the two brothers worked. Annoyed by the frequent and distracting presence of Peggy, Alan told Kit, "She can't keep hanging around here. You've got to do something."

So Kit did something. He took Peggy out on a date (picking her up in his 1975 Mustang to see Disney's The Black Hole), married her and fathered her five children. He remains her best friend, closest confidante and trusted adviser.

Representative Judd's passion for her world is reflected in the energy she has expended in making it a better place. Ambitious, curious, and interested in everything, she has a habit of signing up for causes and projects that will positively impact her fellows and her tribe. She has cut salt cedar in Aravaipa Canyon. She bakes pies by the score during the holidays. She has even served as president of Rex Allen Days, Inc., organizer of the iconic four-day western festival celebrating the life and times of the singing "Arizona Cowboy," who was born outside of Willcox at Mud Springs Canyon.

Representative Judd is particularly effective when she sinks her teeth into a big project that involves lots of people and requires both leadership and attention to organizational detail. Providing inspiration and infusing other volunteers with courage, she will not rest until an undertaking in which she is involved is completed. With a profound sense of responsibility, she fears that everything will fall apart if she takes a break or looks the other way. So it was that she was a veritable force of nature in the reconstruction of her city's major park. She employed her architectural training to perform design work. She worked feverishly with the Parks and Recreation Commission to organize about twenty stakeholder meetings, collecting donations and acquiring important community input. She made presentations and met with multiple clubs and businesses. She attended to every possible detail. The legacy of her commitment is a multi-use facility that will serve her community for generations to come.

Representative Judd's movement toward the Legislature was a natural byproduct of her native empathy, community activism and get-it-done attitude. Her interest in politics flared when she was serving as a sounding board for a dear friend who, discouraged by the country's direction, was venting despairingly about the state of the union and the nation's increasing tilt toward socialism. Knowing that dejected chatter was an insufficient response to her friend's concerns, Rep. Judd volunteered, "Well, let's do something about it."

What she did was organize a tea party of disaffected yet patriotic citizens in Cochise County. The response was overwhelming, and people came from miles around to participate. Representative Judd found herself summarily immersed in a conservative political movement. She befriended a new universe of politically involved individuals and helped organize their civic activities. Recognizing her leadership abilities, these denizens of rural Arizona encouraged her to run for office. Attracted to the prospect, Representative Judd pondered a potential run for the Legislature in 2012, figuring that she would be sufficiently experienced and knowledgeable by then to make a credible bid for public office.

Representative Judd's timetable, however, was accelerated on Mother's Day weekend, 2010. Her adult son picked her up and drove her to California for a spell of rest and relaxation. ("It was the best Mother's Day ever," she fondly recalls.) She was sitting on the beach when, interrupting her reverie, former Representative Gail Griffin (who was planning her own campaign for Senate), called with an important news flash. One of the two Republican candidates for the House from District 25 had dropped out of the race. "We need you to run," implored Griffin.

"Everything looks and sounds better when you're on the beach," muses Representative Judd. Consequently, the vacationing firebrand answered, "Why not?" and her political career was launched. Cake-walking through the uncontested primary, the future representative knew within two weeks of the general election that she would win. She had thrown herself completely into the race, "traveling everywhere and meeting everybody," and she felt the political wind at her back. In the end, she was the top vote-getter in the District 25 House race.

District 25 includes an unusual number of incorporated communities (a dozen in all), including Tombstone, Bisbee, Nogales and Sierra Vista. As a freshman lawmaker, Representative Judd feels that the Legislature has gotten "way off the track" by interfering with municipal prerogatives. "City and town councils know their communities better than we do, and we should leave as much up to them as possible," Representative Judd wisely opines.

Representative Judd's political ambition is to do the best job she can on behalf of her constituents and to do everything within her power to make the state a better place. With a growing cohort of grandchildren - eight and counting - it has become her mission to ensure that they inherit a world that they can love as much as she does. That's a tall order. But if it's a matter of energy, organization and faith, then Representative Judd is the right person for the job.

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