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Legislative UpdateToday is the 47th day of the second regular session of Arizona's Centennial Legislature. Nearing the halfway mark of the 100-day session deadline established by House and Senate rule, the pace of legislative activity in the Committees of the Whole and on Third Reading calendars accelerated considerably during the past week.News from the Capitol this week was dominated by consideration of a legislative budget that was prepared and presented jointly by the House and Senate. The $8.66 billion budget proposes total spending that is $106 million less than last year and nearly $200 million less than the governor proposed in her budget. Introduced in the Legislature late on Monday (Presidents' Day), the budget was subject to hearings of the Appropriations Committees at 8:00 a.m. the next morning. It was approved by those committees largely on a party-line vote. While the budget establishes a conservative marker, there seems to be universal consensus and understanding that it does not represent the Legislature's final budgetary effort for the year. Rather, it is expected that passage of the budget (or at least its introduction and consideration by committee) will trigger serious negotiations between the legislative and executive branches of government. In other news, Phil Lovas, a Peoria Republican, was sworn in on Tuesday, February 21, as the newest member of the House. Lovas was named by the Maricopa County Board of Supervisors to fill the District 4 seat vacated when former Rep. Judy Burges (R-Sun City West) was appointed to the District 4 Senate seat. With the appointment of Lovas, a 43-year-old hotel developer, there remains but one vacancy in the House of Representatives: the District 13 seat formerly occupied by Rep. Richard Miranda (D-Tolleson) until his sudden resignation on February 16. His successor will also be appointed by the Maricopa County Board of Supervisors. Impacts of Legislative Budget on MunicipalitiesDespite widespread support for returning funding responsibility for the Arizona Department of Water Resources (ADWR) to the state's general fund, the legislative budget continues the imposition of an assessment on cities and towns to fund departmental operations. The budget assumes a municipal contribution of $6.25 million to ADWR, the same level as last year.The budget includes an overall shift of $87 million of Highway User Revenue Fund dollars to the Motor Vehicles Division. Of this amount, approximately $26 million is diverted from cities and towns. This funding shift happened for the first time last year at about the same level. In addition, the budget shifts $95 million (including $29 million from city and towns) in HURF dollars to the Department of Public Safety. This compares to $36 million diverted from cities and towns last year. The League is disappointed that these items, funding state agencies with local revenues, are included in the initial legislative budget. Nevertheless, bills providing for the elimination of the ADWR assessment continue to move through the legislative process, and several members have spoken out publicly against the continued transfer of HURF dollars. They have also explained that the proposed budget requires a number of changes to move toward enactment. In the meantime, we encourage city and town officials to contact members of their delegation to insist that those budget items be corrected before the final budget is approved. The League is pleased to report that the legislative budget does not sweep any 9-1-1 funds. Moreover, it proposes no changes to shared revenue distribution. Regulatory Tax CreditsOn Monday, February 20, the House Rules Committee approved HB 2815 (employment; incentives; regulatory tax credit) by a unanimous vote. The bill was cleared in caucus the next day and awaits consideration by the Committee of the Whole.A particular provision of HB 2815, establishing a tax credit for the costs of "excessive regulation," is highly objectionable. It provides that an individual who feels aggrieved by excessive regulation may apply to the Department of Revenue for a credit against his state taxes. The regulating jurisdiction would in turn compensate the state through withheld shared revenues. This untested and unworkable provision represents individualism run amok, ignoring that popularly elected municipal officials enact ordinances to establish common rules for the good of the community - rules that protect property values, establish sanitary standards, and promote aesthetic considerations. City and town officials are encouraged to express their objections to regulatory tax credits to their state legislators. Department of Water Resources AssessmentOn Wednesday, February 22, the House Appropriations Committee considered and unanimously passed HB 2493 (department of water resources; funding). The legislation, sponsored by Rep. Russ Jones (R-Yuma) establishes a joint legislative study committee to determine alternative funding mechanisms for the Arizona Department of Water Resources (ADWR). Furthermore, it repeals the statutory authority of ADWR to impose an assessment on municipalities in two years. The bill previously passed the House Committee on Agriculture and Water and now proceeds to the Rules Committee.SB 1288 (municipal water fees; repeal; appropriation) repeals the ADWR assessment authority immediately upon the bill's effective date and provides for funding of the agency through the State's general fund. The bill, sponsored by Senator Gail Griffin (R-Hereford), passed the Senate on Third Read by a vote of 30-0 on February 16. Preferring the approach of SB 1288, but appreciating the sentiment of HB 2493, the League registered its neutrality on the latter during Wednesday's hearing. Final decisions with respect to the assessment are expected to result from future budget negotiations between the legislative and executive branches. Homeowners' Associations (HOA)On Tuesday, February 21, the House Committee on Government passed SB 1239 (planned communities; zoning; requirements) by a vote of 6-2. The measure prohibits municipalities from requiring a homeowners' association (HOA) as part of a subdivision regulation or zoning ordinance. The League opposes the measure because of its potential to increase the financial burden on taxpayers who do not reside in subject developments. SB 1239 includes language permitting counties to require HOAs to provide for the maintenance of community-owned property. The League proposes that similar permission be granted to cities and towns.HOA Parking and Road EnforcementOn Thursday, February 23, the Senate passed SB 1113 (homeowners' associations, public roadways) by a vote of 18-11. Sponsored by Senator Nancy Barto (R-Phoenix), this bill divests homeowners' associations of their 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 legislation proceeds to the House of Representatives for further consideration. During Senate floor consideration of the measure, Senator Barto announced that the bill would be amended in the House to exempt large communities governed by HOAs. Transaction Privilege Tax Reform CommitteeOn Thursday, February 23, the Senate Committee on Finance unanimously passed HB 2123 (transaction privilege tax reform committee). The bill establishes a 12-member committee to study various issues related to the future of sales and income taxes in Arizona.The bill, which previously passed the House by a vote of 57-0, requires the study committee to report its findings and recommendations by October 31, 2012. The bill was amended in the House to include two city and town representatives as members of the study committee. Revenue Allocation DistrictsOn Thursday, February 23, HB 2469 (revenue allocation districts) passed the House of Representatives by a vote of 44-13. The measure, sponsored by Rep. Rick Gray (R-Sun City), authorizes municipalities to form Revenue Allocation Districts, which can pledge increases in both property tax and sales tax revenue to secure bonds issued to benefit the district. The League actively supports the measure, which now heads to the Senate for further consideration.Government TransparencyOn Thursday, February 23, HB 2621 (local government budgets; posting; contents) passed the House of Representatives by a vote of 56-1. The legislation makes a number of changes to the statutes governing local government budget processes.The League previously expressed concern about a provision that would prohibit municipalities without websites from using the League website to comply with the law. The bill's sponsor, Rep. Debbie Lesko (R-Glendale), introduced an amendment to the bill in Committee of the Whole to reverse the proposed prohibition. The amendment was adopted by voice vote. Government DepositsOn Monday, February 20, the House Committee on Banking and Insurance unanimously passed SB 1135 (government deposits). The bill, sponsored by Senator John McComish (R-Phoenix), previously passed the Senate by a vote of 29-0. The League supports the measure.The bill authorizes municipalities to invest surplus funds and other monies not used for operating costs into federally insured savings deposit accounts through Insured Cash Sweep (ICS). ICS is a deposit placement service that allows for a depositor's funds to be swept from a transaction or checking account into savings accounts (interest-bearing money market accounts). ICS allocates the funds to accounts in banks throughout the country in amounts less than the Federal Deposit Insurance Corporation (FDIC) insurance maximum of $250,000 so that both principal and interest are eligible for FDIC insurance. Law Enforcement OfficersEarlier this week, the House Committee on Employment and Regulatory Affairs decided to hold SB 1212 (law enforcement officers; just cause). Sponsored by Senator Andy Biggs (R-Gilbert), the bill mandates that the same "just cause" process required for the termination of law enforcement officers be applied to demotions and suspensions lasting longer than 40 hours. The League opposes the measure because it limits the authority of municipalities to discipline problematic officers.Traffic EnforcementOn Tuesday, February 21, the Senate Appropriations Committee passed SB 1313 (intersection; definition) by a vote of 9-3. The measure, sponsored by Senator Frank Antenori (R-Tucson), modifies the definition of intersection for those intersections that are managed by traffic control signals. The League opposes the bill as an encroachment on local authority. The legislation now proceeds to the Senate Rules Committee.State Retirement ContributionsThe House Appropriations Committee held a special meeting on Thursday February 23, and considered HB 2264 (ASRS; employee; employer contributions; rate). The bill, sponsored by Rep. Bob Robson (R-Chandler), provides for a 50/50 split between employers and employees with respect to contributions to the Arizona State Retirement System (ASRS). The measure effectively repeals the portion of last year's SB 1614 that moved ASRS to a 47/53 split between employers and employees, respectively. HB 2264 passed out of committee on a 10-1 vote and was amended to make various technical changes.Legislator Profile - Representative Kimberly Yee Representative Yee has a manner that is, in person, as easy, relaxed and charming as it appears on a local morning television show. She has appeared on this show on several occaions to share her innovative craft and project ideas. Her television colleagues have described her as a "creative crafts guru" and the "most creative person in the world." Given the enormous challenges faced by the State of Arizona, the Legislature can certainly use the creativity and fresh ideas that Yee brings to the enterprise of lawmaking. Of her many accomplishments, Yee is especially proud to be the first Asian-American woman ever elected to the Arizona Legislature. Accordingly, she feels a special responsibility toward the state's Asian-American community. Given the hardships endured by her forebears in pursuit of the American Dream, it is a responsibility she does not take lightly. Yee treasures the sacrifices made by her ancestors who traveled to America from China in search of a better life. Both of her grandparents were hard-working, small business owners who worked tirelessly around the clock, raising their families in a new land of opportunity. Yee derives much of her empathetic and caring nature from her mother, who taught in public schools for 38 years. Working in underprivileged school districts, her students would sometimes call her "Mom," because she was the most maternal and stable presence in their lives. "Fridays were hard for some of these kids, because they knew they wouldn't see their 'mom' for two days," Yee recalls. Every summer, the future representative would sort through her clothes to create a pile of hand-me-downs to contribute to her mother's extended family of needy children. The experience sensitized Representative Yee to the needs of the less fortunate and led to her strong advocacy of educational justice. "All children deserve equal educational opportunities," Representative Yee asserts. "Your access to a good education shouldn't be determined by where you come from or what neighborhood you live in." Growing up in the same district she currently represents, Yee gravitated toward politics at Greenway High School, from which she graduated in 1992. Though she served as class president during most of her high school career, she became focused on "adult" politics largely because of her service as the art director and editorial cartoonist for the Demon Dispatch, Greenway's school paper. At the time, the school principal was regularly censoring stories and preventing her cartoons and other students' news articles from being published. A student of government who was interested in First Amendment rights, the young opinion leader questioned why free speech was so restrained on campus. At the time, an elected official learned of censorship at the Demon Dispatch and sponsored legislation to protect freedom of speech rights for high school and college students. The elected official contacted Yee, and in due course, she found herself testifying before the Senate Committee on Education in support of student speech rights legislation sponsored by the lawmaker. The bill was reported with a do-pass recommendation on the day she testified, and the eighteen-year-old Yee was hooked. Following her graduation from high school, Yee enrolled at Pepperdine University, where she received dual undergraduate degrees in english and political science. She continued her postgraduate education at Arizona State University, where she received a master's degree in public administration. At Pepperdine, Yee showed that she had indeed inherited the work ethic of her forebears. Demonstrating initiative and industriousness, she worked: as an assistant curator at the campus art museum; for the student paper; as a resident advisor; and as an off-campus nanny. In her senior year, she was awarded a prestigious fellowship to the California Executive Fellowship Program and served in the Office of the State Superintendent of Public Instruction, specializing in childcare, preschool development and K-12 education. Her success in the position led to her appointment as a policy advisor to California's State Board of Education under Governor Pete Wilson. At the tender age of 23, she was the youngest Administration official to be administered the oath of office. Following her service to Governor Wilson, Yee returned home to Arizona to serve as senior staff to the Senate Committee on Education - the very committee before which she had testified as a high school senior. From 1998 to 2003, she helped draft many of Arizona's laws to improve and advance the state's public education system. In 2004, the Terminator called and Yee took another turn through the public policy revolving door between Arizona and California. Governor Arnold Schwarzenegger appointed Yee to serve as Deputy Cabinet Secretary for Education and Consumer Affairs, Labor, and Workforce Development for the State of California. Although she was too busy to be distracted by star-gazing, opportunities to rub elbows with the rich and famous were legion. "It seemed that every celebrity you could imagine wanted to spend time with the Governor. I met Jesse Jackson, Clint Eastwood, Danny DeVito - really, too many stars to recall. Rob Lowe spent an entire day shadowing Governor Schwarzenegger, preparing for his role on West Wing." As much as she may have enjoyed spending more time with the visiting screen idols, Yee had more important matters to attend to - like California's budget crisis. Accordingly, she helped conceive and organize the state's first ever garage sale. "I learned that the state had an enormous amount of surplus property stored in warehouses. Some of it was seized property, but the warehouses were also filled with boxes and boxes of unused office supplies that agencies had purchased in year-end spending sprees to keep their baselines elevated. By selling off these items, we'd get some return on the expense, and we'd save on future warehousing fees." The statewide garage sale was a sensation. It was advertised worldwide and garnered mountains of earned media. The Arnold even donated a movie jacket. Lines formed the night before the sale in Sacramento, and buyers had to park miles away. Of course, the sale didn't solve California's budget woes, but the outside-the-box event did sensitize people to the urgency of the budget problem and demonstrated that the state was leaving no stone unturned in its effort to deal with the situation. Following her service to Governor Schwarzenegger, Yee returned to Arizona where she served then-Treasurer Dean Martin as Director of Communications and Government Affairs. She also dove headlong into state politics as Chairman of the Legislative District 10 Republican Committee. On August 2, 2010, she was appointed to serve the remaining term of Representative Doug Quelland, who was removed from office for campaign finance irregularities. The following November, she won the seat in her own right as the top vote-getter among all District 10 general election candidates. As a legislator, Representative Yee continues to focus on educational issues as the vice chairwoman of the Committee on Education. She also serves on the Committee on Health and Human Services and the Committee on Employment and Regulatory Affairs. Representing the cities of Glendale and Phoenix, Yee describes herself as, "a huge advocate for local government and local control." She respects those of her colleagues who have local government experience and cites League award winners Steve Urie and Karen Fann as valuable resources on whom she relies for guidance and information regarding municipal issues. The many years Yee spent working for elected officials and crafting public policy proposals have provided her a unique foundation to bring to the job as a member of the Arizona Legislature. And, as seen in her own hand-painted artwork displayed in her office, Yee brings to the job an ability to create vibrant colors on what began as a blank canvas. These are fitting preparations for her service at the Legislature, which benefits as much from her abiding grace as her notable creativity. |
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Legislative Bulletin is published by the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org. |