ISSUE 9 - March 9, 2012

Legislative Update

Today is the 61st day of the second regular session of Arizona's 50th Legislature. As legislators headed toward the back nine of the session, the pace of activity on the House and Senate floors reached a fevered pitch. With a deadline of Friday, March 16, for committees (excluding Appropriations) to hear bills, legislators rushed measures to their opposite chambers in the hopes of ultimately getting them to the Governor for signature. As of today, the House of Representatives has passed 255 bills, memorials and resolutions. The comparable figure for the Arizona Senate is 265.

During the past week, representatives of the legislative and executive branches engaged in negotiations on a budget for the coming year. Perhaps encouraged by this development, Senate President Steve Pierce (R-Prescott) reiterated his intention to adjourn the session within the 100-day deadline established by rule.

On Monday, March 5, Martin Quezada was sworn in as the newest member of the House of Representatives. Appointed to fill the Legislative District 13 seat vacated by former Rep. Richard Miranda, the 34-year-old Quezada, an Arizona native, previously worked as a researcher for the Arizona Legislature.

Liberty Charter

On Monday, March 5, the Senate Rules Committee considered and rejected SB 1064 (municipalities; local liberty charter). The bill, authored by the Goldwater Institute, purports to authorize municipalities and "unincorporated areas of a county" to adopt the provisions of a "Liberty Charter," the detailed provisions of which are included in the bill. The model charter imposes restrictive limitations on municipal authority with respect to procurement, eminent domain, personnel management, impact fees, land use regulation and a host of other powers.

The League opposes the bill on the basis of its procedural and constitutional infirmities. The Rules Committee, charged with the constitutionality and form of legislation, determined that the measure fails constitutional muster, effectively ending its journey through the legislative process this year.

Photo Radar

On Monday, March 5, the Senate considered and rejected SCR 1029 (photo radar prohibition) by a vote of 13-15. The measure was brought to the Senate floor for reconsideration the next day, and failed a second time by a vote of 14-15.

The resolution, which would have been 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. Following Tuesday's reconsideration vote, the sponsor of the bill, Senator Frank Antenori (R-Tucson), acknowledged that the measure is likely dead for the session.

Consolidated Elections

On Thursday, March 8, the League participated in a stakeholder meeting on HB 2826 (consolidated election dates; political subdivisions). The bill mandates that, with very narrow exceptions, all municipal elections must be held in the fall of even-numbered years. The bill passed the House by a slim margin on March 1.

Other participants in the stakeholder meeting, convened by the bill's sponsor, Rep. Michelle Ugenti (R-Scottsdale), included county recorders and elections officials, as well as representatives of the Office of the Secretary of State. Participants confronted a number of salient issues, including: treatment and definition of special elections; the impact of the bill on all-mail elections; and timing and frequency of ballot propositions.

The bill has been scheduled for consideration by the Senate Judiciary Committee on Monday, March 12. The League remains opposed to the bill, pending production of an amendment that satisfactorily addresses the collective concerns of cities and towns.

Regulatory tax credits

Following its passage by the House, HB 2815 (employment; incentives; regulatory tax credit) was dual-assigned in the Senate to both the Finance and Appropriations Committees. The bill, which contains provisions eliminating the state capital gains tax and authorizing job training initiatives, also establishes a state regulatory tax credit. The League strongly opposes this section of the bill.

Supporters of the regulatory tax credit program contend that it will have the effect of simply highlighting local regulations that may be problematic for local businesses. The League, however, understands that complaints about regulations are regularly and properly handled at the local level by city and town officials. Furthermore, it is the League's position that a convoluted appeals process that involves a state agency, additional state employees and claims on shared revenue, is completely unnecessary and should be removed from the bill. The bill is scheduled to be heard by the Senate Finance Committee on Thursday, March 15.

Administrative procedures

On Tuesday, March 6, the Senate passed SB 1505 (s/e: municipal governments; rulemaking) by a vote of 17-11. The bill would impose upon municipalities a regulatory process similar to that mandated by the Administrative Procedures Act, which is used by the Federal Government for rulemaking. The League opposes the measure due to its complexity and onerous bureaucratic requirements. The measure now proceeds to the House for further consideration.

Data quality

On Monday, March 5, the Senate failed to pass SB 1470 (rules; data quality) by a vote of 14-14. The bill was subsequently reconsidered by the Senate on March 8 and passed by a vote of 18-10. The measure imposes upon municipalities onerous bureaucratic standards for the development and dissemination of data pertaining to licensing decisions. The League is opposed to the measure, which now moves to the House.

Water and wastewater

On Thursday, March 1, HB 2416 (water and wastewater; denial prohibited) failed in the House by a vote of 28-20. On Wednesday, March 7, however, it passed on reconsideration by a vote of 32-26. This bill mandates that cities and towns in Pima County provide water service to areas outside of their corporate boundaries. The bill is now scheduled for a hearing before the Senate Committee on Water, Land Use and Rural Development on Wednesday, March 14. The League strongly opposes the bill because it threatens local autonomy and lacks protections for current customers and assured water supplies.

Firearms

On Tuesday, March 6, the Senate passed SB 1304 (firearms regulation; political subdivisions) by a vote of 18-11. The 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 Senate adopted an amendment offered by the bill's sponsor, Senator Frank Antenori (R-Tucson), to incorporate Megan's Law, establishing parameters for criminal negligence for the use of a firearm within a municipality. The bill, opposed by the League for reasons of public safety and local control, has been transmitted to the House for possible further consideration.

Also on Tuesday, March 6, the House passed HB 2729 (state regulation of firearms) by a vote of 37-21. The bill, 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. It has been scheduled for consideration by the Senate Judiciary Committee on Monday, March 12.

Homeowners' associations

On Thursday, March 8, the House Judiciary Committee considered and defeated SB 1113 (homeowners' associations, public roadways.) by a vote of 2-6. Sponsored by Senator Nancy Barto (R-Phoenix), the legislation would divest homeowners' associations of their authority over roads that are dedicated to a governmental entity. The League opposes the measure because of the burdens it would impose on local law enforcement and financial resources.

Similar legislation, HB 2030 (homeowners' associations; public roadways), passed the House by a narrow margin on February 21. That bill, sponsored by Rep. John Kavanagh (R-Fountain Hills), is scheduled for a hearing before the Senate Committee on Veterans, Military and Government Affairs on Tuesday, March 13.

Independent Redistricting Commission

SB 1489 (redistricting commission; counties; cities; districts) passed the Senate on March 6 by a vote of 18-11. The legislation substantially expands the authority of the Independent Redistricting Committee (IRC) to determine political boundaries. Under the bill, the IRC would be empowered to draw district lines all political subdivisions in the state, including ward or district boundaries in cities. The League opposes this unwarranted expansion of IRC authority as a direct assault on a fundamental matter of local concern.

Consumer fireworks

On Tuesday, March 6, the House passed HB 2361 (s/e: regulations; consumer fireworks) by a vote of 46-14. Among other things, the legislation: prevents municipalities from adopting ordinances with penalties greater than a petty offense for a person using certain consumer fireworks; permits the imposition of fees on fireworks sellers; addresses certain signage issues; and permits restrictions on the sale and use of consumer fireworks in Coconino and Yavapai Counties.

Comparable legislation, SB 1364 (consumer fireworks; permitted regulation), passed the Senate on March 1. It has been assigned to the House Committee on Military Affairs and Public Safety for further consideration.

Pension reform

On Tuesday, March 6, the House unanimously passed HB 2745 (s/e: PSPRS; employer contributions). The bill changes the Alternate Contribution Rate (ACR) requirements of the Public Safety Personnel Retirement System (PSPRS). The change would preclude an employer from paying the PSPRS ACR on a PSPRS-eligible position if a person hired to fill that position: was hired before the effective date of last year's pension reform bill; previously retired from PSPRS; and 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 supports the bill, which proceeds to the Senate.

The House passed HB 2264 (ASRS; employee; employer contributions; rate) by a unanimous 60-0 vote on Monday, March 5. 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.

Council procedures

The House passed HB 2570 (political subdivisions; proceedings; governing bodies) on Tuesday, March 6, by a vote of 39-18. The effect of the bill was altered substantially by an amendment adopted by the Committee of the Whole. The amendment, offered by the bill's sponsor, Rep. Justin Olson (R-Mesa), provides that a municipal ordinance may not take effect until it has been posted in its final form for at least seven days. The bill also prescribes a process for the adoption of emergency ordinances and exempts certain other ordinances from the bill's enhanced notice requirements. The amendment was drafted with input from municipalities and represents great improvement over the original bill. The sponsor has agreed to continue to work with the League to fine-tune provisions of the bill.

Liquor regulation

On Wednesday, March 7, the Senate Committee on Commerce and Energy considered and passed HB 2606 (s/e: liquor omnibus) by a vote of 5-1. The bill's sponsor, Rep. J.D. Mesnard (R-Chandler), previously agreed to an amendment, adopted by the House, which 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 (CPI) for fee increases (as opposed to just the previous year's CPI). The bill now moves to the Senate Rules Committee for further consideration.

Alarm system installation

This past week, both SB 1306 (alarm system installation; contractors; municipalities) and HB 2748 (cities; alarm licenses; reciprocity) passed their respective houses 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 individual complies with certain requirements.

The bills' sponsors, Senator Frank Antenori (R-Tucson) and Rep. Amanda Reeve (R-Phoenix), respectively, have come to an agreement on replacement legislation that would provide for the establishment of a statewide system for criminal background checks of alarm installers. The League anticipates that one of the two bills will be amended to incorporate the agreement, and the other will become available as a vehicle for a different proposal. The League, a key stakeholder in negotiations, thanks the sponsors for their cooperation.

Public works notification

HB 2350 (s/e: cities; counties; regulations) passed the House on Monday, March 5, by a vote of 43-17. The bill requires a municipality to post its capital improvement plan (CIP) on its website. Under the legislation, a utility may also 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 changes negotiated with utility proponents, the League is neutral on the bill, which now proceeds to the Senate.

Department of Water Resources Funding

On Monday, March 5, the House passed HB 2493 (department of water resources; funding) by a vote of 58-0. 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 in the Committee of the Whole, 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.

HB 2493 is scheduled for consideration by the Senate Committee on Water, Land Use and Rural Development on Wednesday, March 14. Conversely, SB 1288 will be heard by the House Committee on Agriculture and Water on Thursday, March 15.

Law enforcement

On Wednesday, March 7, the House Committee on Military Affairs and Public Safety passed SB 1212 (law enforcement officers; just cause) by a unanimous vote of 6-0. 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. The bill, which previously passed the Senate, proceeds to the House Appropriations Committee for further consideration.

Business incentives

On Wednesday, March 7, the House Committee on Commerce passed SB 1442 (prime contracting; manufacturing facilities; infrastructure) by a unanimous vote of 7-0. 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.

Legislator Profile - Representative Tom Forese

Representative Tom Forese
Representative Tom Forese first saw his future wife, Casey, at a pizza joint in the tony suburb of Saratoga, California. She was in town training with the National Synchronized Swimming Team. They began dating, and Forese became determined to make her his bride. "I told her that she'd either have to marry me or get a restraining order," he recalls. She proceeded to break up with him - not once, but three times. Eventually, however, she relented. "I'm a persistent guy," he notes.

Such persistence will serve Forese well in the Legislature, where he is serving his freshman term as a Representative of District 21. The East Valley district includes portions of Chandler, Mesa, Gilbert and Queen Creek.

As both a freshman and political neophyte, Forese acknowledges that he has much to learn. But whatever he might lack in experience, he more than makes up for in enthusiasm and energy. Blowing into a neighborhood bistro, he is flush with excitement. "I just found out that three high-tech businesses in my district are combining and going public!" he enthuses. His thrill is palpable. One almost feels he should be handing out cigars.

The representative's spirited reaction to this news reflects not only his personal investment in the success of his constituents, but also his passion for economic development. His pro-business ardor is what led him to run for office. And he comes by his love of capitalism honestly, if not genetically.

Forese's paternal grandfather entered the United States a penniless immigrant from Italy. He took his powerful work ethic to Pennsylvania, where he toiled in the steel mills. By the time he died, he owned property, operated his own store and had put eight children through college. He was a paragon of the American Dream who instilled both a love of the United States and an entrepreneurial spirit in his children. They in turn faithfully passed these traits to the next generation, of which Forese is a proud member.

Forese himself was born in Boston. His family moved around a bit, and he eventually landed in Cupertino, California, graduating from the same high school as the recently departed Stephen Jobs. Following high school, he entered college at BYU Idaho and undertook a life-changing LDS mission to the Philippines. "The poverty, hunger and disease were overwhelming," he recalls, adding that the experience served to sensitize him to the plight of the neediest elements of society.

Moving to Arizona to be close to his wife's family, Forese fully activated his entrepreneurial coding, founding businesses in high technology, public relations and marketing. Though he enjoyed success in his adopted state, he was troubled by what he perceived as a pervasive anti-business attitude. "My wife told me to stop complaining and do something about it," he remembers. So he took out petitions and announced his candidacy for the Legislature in 2010. He approached his first campaign for public office with zeal, tenacity and passion. His effort paid off, as he was the top vote-getter in both the primary and general elections.

In the House, Forese serves on the Committees on Appropriations and Government. He chairs the Committee on Higher Education, Innovation and Reform. These assignments provide him with excellent platforms from which to pursue his pro-business and economic development agendas.

Forese agrees that, in 2011, the Arizona Legislature pursued too many bills that sought to micromanage city operations. He also believes that legislators should ensure that the reforms they intend to impose on municipalities are first adopted at the state level. Moreover, he doesn't think that every local problem demands a state solution. "We don't need to legislate our way out of every problem we encounter," he opines.

Forese has plenty to keep him busy when the Legislature is out of session. In addition to work, he is an active and involved father to his four children, who clock in at the ages of 10, 8, 6 and 2. Attendees of public school, they receive supplemental lessons at home during their school breaks. "It's chaotic and wild - kind of like a world bazaar," says Forese of his family's child-rich home environment. "It's also a lot of fun."

Though he currently has little time to pursue adolescent dreams of rock-and-roll stardom, Forese has served as the lead guitarist and vocalist for Avenging Mars, a local band. Visit YouTube to check out the group's performance of original songs, including, "Space Needle," "Best Get Going," and "Stone Cold Killer."

A strong believer in the concept of the citizen-legislator, Forese views politics not as a career but as an opportunity to contribute to the development of the state. At the same time, he acknowledges that he could be in the arena for awhile, noting, "As long as I feel the drive and that I can make a difference, I'll have my hat in the ring." This pronouncement, coupled with the Representative's passion, work ethic and trademark persistence, could signal that Tom Forese will be a force in Arizona policy and politics for years to come.

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