ISSUE 8 - March 2, 2012

Legislative Update

Today is the 54th day of the second regular session of Arizona's 50th Legislature. While there was little apparent progress on the state budget (the subject of significant differences between the Governor and the Legislature) during the past week, the pace of legislative activity was torrid on the House and Senate floors. The House worked furiously to complete floor consideration of bills that originated in that chamber; likewise with the Senate. Reflecting House leadership's concentrated effort to clear bills, a rare Friday session was held today, March 2.

As bills pass one chamber, they are transmitted to the other for consideration. The deadline for committee hearings on bills that have passed the opposite house is Friday, March 16.

Regulatory Tax Credits

On Thursday, March 1, the House of Representatives gave its approval to an amended version of HB 2815 (employment; incentives; regulatory tax credit) by a vote of 39-18. There was extensive debate on the bill, primarily focused on its "regulatory tax credit" section, which now allows a business entity (not an individual) to claim a tax credit for a regulation that it contends costs more than the benefit. The tax credit section applies to cities and towns as well as the state government, counties and special taxing districts. The League strongly opposes the regulatory tax credit section of the bill as a complex and unnecessary intrusion into local government matters.

The bill's sponsor, Rep. J.D. Mesnard (R-Chandler), proposed an extensive floor amendment that substantially changed many of the original provisions of the regulatory tax credit section. The tax credit itself is still in place, however, and claims for a tax credit would still go to a state agency, the Governor's Regulatory Review Council (GRRC), for adjudication. Ironically, if GRRC finds the claim has some validity, it is returned to the city or town where it originated for the council to take action. If the city or town council rejects the claim, it dies.

The League contends that this convoluted system, which empowers a state agency to rule on matters under local jurisdiction, is completely inappropriate, if not unconstitutional. Furthermore, the city or town that has the regulation in place could take action on its own to amend, repeal or sustain it, if requested by a local resident or business without the involvement of a state agency.

The League will continue to oppose the bill as it moves to the Senate.

Consolidated Elections

HB 2826 (consolidated election dates; political subdivisions) passed by a narrow vote of 31-24 in the House on Thursday, March 1. The legislation requires all cities and towns to conduct their primary and general elections on fall election dates (August and November) in even-numbered years. The League is strongly opposed to the bill as an unwarranted infringement on a fundamental matter of local control. Furthermore, enactment of the bill would result in a host of negative impacts on: all-mail ballot elections; ballot size and length; special elections; and the cost, conduct and management of elections. The League will continue to actively oppose the bill as it moves to the Senate.

Highway User Revenue Fund

On Thursday, March 1, House Transportation Chairman Vic Williams (R-Tucson) held an informational hearing on HB 2771 (HURF monies; accounting; appropriation). The bill creates a ledger to account for past diversions of HURF money and includes a current year $20 million appropriation to cities, towns and counties. It also prescribes a payback system for the delivery of previously diverted monies when the Legislature deems there are sufficient funds to do so. Mayor Tom Schoaf of Litchfield Park testified on behalf of the League, detailing the importance of HURF dollars to municipalities and challenging the description of the transfer of money to the state general fund as a "sweep." It should be labeled a "re-allocation" of local funds, he told the committee. Mayor John Salem of Kingman also attended. The League is hopeful that its HURF-related concerns are addressed in the context of this year's budget negotiations.

Regulatory Reform

On Thursday, March 1, SB 1505 (s/e: municipal governments; rulemaking) passed out of the Senate Committee of the Whole. The strike-everything amendment was further amended to reorganize the bill and make additional changes. In its final form, SB 1505 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 opposes the measure due to its complexity and onerous bureaucratic requirements. The measure now moves to third read.

Department of Water Resources Funding

On Friday, March 2, the House Committee of the Whole 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 specific charge of the committee established by the bill is to, "study and consider user fees, formulas for renewal fees, formulas for user fees and governance models in determining an ongoing funding source for the department of water resources." During consideration of the measure on the House floor, an amendment was adopted to accelerate the deadline for issuance of a statutorily required report by one year, to June 30, 2012.

The League is neutral on the bill, preferring the approach of SB 1288 (municipal water fees; repeal; appropriation). That legislation 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. It has been assigned to the Committee on Agriculture and Water and the Committee on Appropriations in the House.

Alarm Systems

This past week, both SB 1306 (alarm system installation; contractors; municipalities) and HB 2748 (cities; alarm licenses; reciprocity) passed the Committee of the Whole in their respective bodies of origin. SB 1306 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. The heart of HB 2748 is a reciprocity provision that entitles a person already licensed as an alarm installer in one Arizona municipality to obtain an alarm installation license from another if the person complies with certain requirements.

The League is participating in stakeholder meetings on issues addressed in both bills. It appears that the product of these meetings will be an agreement on a statewide licensing process similar to that contemplated by last year's SB 1277 (alarm business; alarm agents), and the removal of penalties involving state shared revenue. Language to memorialize such an agreement is under development.

Online Sales Tax Collection

HB 2466 (payment; local sales tax) passed by a vote of 56-0 in the House on the third read of the bill. The measure requires cities and towns that collect their own sales taxes to provide an electronic "portal" for the remittance of taxes online. The procurement of a vendor to provide this service will be managed by the Department of Administration.

The League supports the initiative of a "one-stop" shop for businesses (especially those that conduct business in multiple jurisdictions), permitting them to pay taxes to all of the self-collecting cities using one electronic form. The League is working with a variety of vendors in preparation for the bill's prospective implementation.

Water and Wastewater Delivery

HB 2416 (water and wastewater; denial prohibited) passed the House Committee of the Whole on Wednesday, February 29, but failed on its third reading the next day by a vote of 28- 30. As amended, the bill requires municipalities in Pima County to provide water service to areas outside of their corporate boundaries.

Following the bill's defeat on the floor, the legislation's sponsor, Rep. David Stevens (R-Sierra Vista), made a successful motion to have the bill reconsidered for a new vote on March 7. The League strongly opposes the bill as a severe threat to local autonomy, and also because of its lack of protections for current customers and assured water supplies.

Business Incentives

On Thursday, March 1, the Senate passed SB 1442 (prime contracting; manufacturing facilities; infrastructure) by a vote of 28-2. 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 of the Whole to further reduce the threshold for qualifying facilities in rural counties from $20 million to $10 million.

State Retirement Contributions

On Thursday, March 1, HB 2264 (ASRS; employee; employer contributions; rate) was discussed in Caucus. 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.

Pension Reform

HB 2745 (defined contribution retirement systems) was passed by the House Rules Committee on Tuesday, February 28. The bill, including a strike-everything amendment adopted in the House Employment and Regulatory Affairs Committee, makes 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.

Liquor

HB 2606 (s/e: liquor omnibus) passed the House by a vote of 47-9 on Thursday, March 1. The bill's sponsor, Rep. J.D. Mesnard, agreed to entertain amendments to address League concerns. One such successful amendment, offered by Rep. Debbie McCune Davis (D-Phoenix), permits the State Liquor Board to consider municipal tax delinquencies in liquor license suspension and revocation proceedings. The amendment further permits a city or town to use the average of the last five years of the Consumer Price Index for fee increases (as opposed to just the previous year's CPI). Rep. Mesnard has also agreed to work with the League on other outstanding concerns as the bill is considered in the Senate.

Emergency Response

On Tuesday, February 28, the House passed HB 2094 (prepaid wireless E911 excise tax) by a vote of 55-0. The bill, sponsored by Rep. Bob Robson (R-Chandler), levies a tax of .8 percent on the retail sale of prepaid cell phone services to assist governmental entities with the maintenance, operation and capital costs associated with the 9-1-1 system. Arizona currently levies a tax of 20 cents for this purpose only on monthly wired and wireless services. The League supports HB 2094, as it will improve Arizona's aging 9-1-1 system. The legislation now proceeds to the Senate.

Firearms

HB 2729 (state regulation of firearms), opposed by the League, requires governmental entities to allow guns into public establishments, unless armed personnel and metal detection equipment are installed at their entrances. The measure, sponsored by Rep. David Gowan (R-Sierra Vista), applies to the state and all political subdivisions and preempts municipalities from having any firearms ordinance stricter than state law. On Friday, March 2, the bill passed the House Committee of the Whole by voice vote.

Another bill opposed by the League, SB 1448 (misconduct involving weapons; public property), 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. The bill, sponsored by Senator Steve Smith (R-Maricopa), passed the Senate by a vote of 18-12 on Wednesday, February 29 and proceeds to the House for further consideration.

Fireworks

SB 1364 (consumer fireworks; permitted regulation), sponsored by Senate Majority Leader Andy Biggs (R-Gilbert), passed the Senate by a vote of 24-6 on Thursday, March 1. The legislation includes provisions to: prevent municipalities from adopting an ordinance with a penalty greater than a petty offense for a person using certain consumer fireworks; permit the imposition of fees on fireworks sellers; address certain signage issues; and restrict the sale and use of consumer fireworks in Coconino and Yavapai Counties.

Comparable legislation, HB 2361 (s/e: regulations; consumer fireworks), has been moving through the House. Sponsored by Rep. Karen Fann (R-Prescott), the bill was retained on the House Committee of the Whole calendar on Friday, March 2.

Public Works Notification

HB 2350 (s/e: public works project; notice) passed out of the House Committee of the Whole on Friday, March 2. The strike-everything amendment was amended to incorporate an agreement between the League and proponents of the measure. As amended, HB 2350 requires municipalities to post their capital improvement plans (CIP) on their websites. Additionally, a utility may request that it receive copies of the CIP, along with information on any new public works projects that would have appeared in the CIP or projects in the CIP that have an accelerated start date. With the amendment, the League is neutral on the bill and would like to thank the proponents for their willingness to address our concerns.

Photo Radar

SCR 1029 (photo radar prohibition), sponsored by Senator Frank Antenori (R-Tucson), passed the Senate Committee of the Whole on Thursday, March 1, and will be third read on Monday, March 5. This measure, which would be referred to the state's voters if passed by the House and Senate, eliminates photo radar use for all law enforcement purposes, including recordation of red light and school zone infractions. The League opposes the bill on the basis that enforcement of local traffic laws is a matter best left to municipal government.

Legislator Profile - Representative Bob Robson

Representative Bob Robson
"Do not let loyalty and faithfulness forsake you; bind them around your neck, write them on the tablet of your heart." Proverbs 3:3.

Representative Bob Robson is nothing if not loyal. Indeed, loyalty is a fundamental propellant of his brilliant journey through life. His decisions and actions are largely guided by deep and abiding loyalty to family, to friends, and to country. It is a feature in his character that has served him well - as a kid learning the ropes of life in New York City; as a respected security professional; as a successful academic; and, currently, as a popular elected official.

Robson is living proof of the proposition that you can take the kid out of New York, but you'll never take New York out of the kid. Born in Brooklyn and raised in Queens, Robson is proud of his gritty urban upbringing. A product of the New York public school system, he easily and quickly rattles off the city schools of his youth: "P.S. 89; P.S. 150; Woodside Junior High; Long Island City High School, in an industrial area near the 59th Street Bridge." Though he was a conscientious and successful student, Robson was educated as much on the streets of New York as he was in the classroom. He fondly remembers his youth as a streetwise youngster spending hours with his pals playing softball on concrete. ("The bruises didn't hurt as much [as those caused by baseballs], but they were a lot bigger.")

Robson was born into a family of public safety professionals, including: a grandfather who worked for the NYPD for 40 years; a stepfather who was in the Secret Service and served on two presidential security details; and various cousins, uncles and in-laws who dedicated their lives to police work and security. Consequently, Robson inherited both a strong sense of justice and a passionate interest in criminal issues. Accordingly, he earned a Bachelor of Science Degree and a Master of Arts Degree in Criminal Justice from John Jay College in New York.

Putting his academic knowledge to practical use, Robson worked in a variety of security jobs in New York and elsewhere. Among other things, he provided private security to the infamous billionaire and hotel magnate, Leona Helmsley, popularly known as the "Queen of Mean." Although Robson has enough inside dope about Helmsley to publish a series of tell-all books, the disclosure of secrets is not his style. Instead, he exhibits tight-lipped loyalty to his former client and declines to dish - even though Helmsley died in 2007 (leaving $12 million to her dog, "Trouble").

"Patriotism is just loyalty to friends, people, families." Robert Santos.

By and by, Robson's aging parents relocated to Arizona due to critical health issues. It was then that Robson chose to become an Arizonan too. The decision was easy. "You only have one family," he (loyally) observes.

Ominously, Robson executed his move to Arizona on Friday, April 13, 1980. Lacking connections in his new home state, he had to start all over and reinvented himself as an insurance agent. "I went from one CPL to another," he recalls. "I was in criminal procedure law and moved to comprehensive personal liability."

One thing that Robson did bring with him to Arizona was his lifelong love of politics. As a youth of 13, he worked on Richard Nixon's first winning presidential campaign, and he re-upped at age 17 for the re-election effort. Consequently, he was invited to both of Nixon's inaugurations. He also got to know members of Nixon's palace guard, including Herb Klein and Ron Ziegler (who, at 29, became the youngest White House press secretary in history). As a teenager, Robson also worked for Nelson Rockefeller, the longtime governor of New York who later served as Vice President under Gerald Ford.

Immediately upon his arrival in Arizona, Robson got involved in his new community and jumped headlong into civic affairs. A member of Kiwanis since the age of nineteen, he joined a local chapter of the international service organization. He also volunteered for the Salvation Army (and served as its chairman for five years), helped found the Chandler Boys and Girls Club, chaired the Chandler Charter Review Committee, and later received an appointment to serve on the Planning and Zoning Commission of the City of Chandler. He was elected to the city council in 1992, where his peers selected him to serve as vice mayor.

Robson served on the Chandler City Council for eight years, at a time when the city held the distinction of being the fastest growing community in the United States. He sunk his teeth deep into the job ("council meetings would regularly last until two or three in the morning," he remembers) and helped tackle the complex challenges attendant to explosive municipal growth. The experience invested him with a perspective on cities and towns nearly unique among state legislators.

As a former councilman, Robson is sometimes frustrated that his colleagues don't have a greater understanding of the role - or appreciation for the importance - of cities and towns. "I am truly perplexed that people [in the Legislature] don't have a better understanding of which services are rendered by cities and which are the responsibilities of the State," Robson observes. "There needs to be more recognition of the authority of cities to do their jobs without our interference."

"Loyalty is still the same, whether it win or lose the game; true as a dial to the sun, although it be not shined upon." Samuel Butler

Robson returned to the Arizona House to represent Legislative District 20 after a two-year hiatus. His previous service of eight years in the House (six of which he spent in leadership positions) makes him one of the most experienced legislators at the Capitol. Indeed, he holds the Arizona record for length of service as Speaker Pro Tem, having served in that position under two different Speakers of the House.

Robson's colleagues are happy he's back - largely because he has a record of introducing at least some creature comforts to an institution in which they are noticeably absent. He arranged for the installation of the second floor Coke machine and serves as a bottomless source of ice cream sandwiches for his fellow representatives. "I suggested to [former Speaker] Weiers that we get a soft-serve ice cream dispenser for the penthouse," he laughs. "Instead, I got a freezer in my office that I stock with frozen treats from Costco. The good will they buy is worth their weight in fructose."

Representative Robson has a profile and a presence that is hard to miss at the Arizona Capitol. With his booming voice, towering frame, razor-sharp intellect, engaging manner, and signature Diet Coke, one gets the impression that he would be at ease with royalty and the downtrodden alike. Coupling a broad scope of interests with profound empathy, he has an uncanny ability to connect with people from all walks of life.

The Honorable Boyd Dunn, former Chandler mayor and League president, worked shoulder-to-shoulder with Robson when the two served together on the Chandler City Council. Dunn continues to admire his former colleague for his intelligence, work ethic, affability and hearty appetite for life.

Dunn recounts that the two traveled together to New York on city business: "I felt I was with the mayor of Gotham. Bob seemed to know everyone, from doormen to federal judges, as personal friends. And it was the same thing when we traveled to Washington, D.C. During a visit there, we had a private meeting with Sandra Day O'Connor, and Bob proceeded to have an intimate discussion with the Justice about John Jay, a founding father of the United States and the first chief justice of the U.S. Supreme Court."

When Robson is not legislating, writing insurance policies, peddling ice cream, or educating Supreme Court justices, he is teaching a course at ASU to undergraduates on the topic of police accountability. "It's a course grounded in real-world experience," he says. "I'm not a professor who gets his knowledge from a textbook." Otherwise, he is spending time with his wife Dawna and helping raise his two sons.

American author Napolean Hill, one of the great writers on personal success, once observed: "Lack of loyalty is one of the major causes of failure in every walk of life." If the obverse is true, then Representative Bob Robson should expect nothing less than a rich and fulfilling lifetime of success.

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