ISSUE 10 - March 16, 2012

Legislative update

Today is the 68th day of the second regular session of Arizona's Centennial Legislature. It is also the deadline for committees (except appropriations) to conduct hearings on pending bills. New initiatives may yet be introduced in the form of strike-all amendments to bills considered by the appropriations committees of the House and Senate; otherwise, the universe of active legislation is fairly well known upon the expiration of today's deadline.

During the past week, representatives of the Legislature and Office of the Governor continued to pursue negotiations on a budget for the coming year. While the proceedings have remained confidential, some progress has been reported. Accordingly, the League is optimistic that the session will conclude by or near the 100-day deadline (falling this year on April 17) established by rule in the House and Senate.

Consolidated elections

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

On Thursday, March 8, the League participated in a stakeholder meeting regarding the legislation. The product of the meeting, hosted by the bill's sponsor, Rep. Michelle Ugenti (R-Scottsdale), was a proposed committee amendment that addressed many of the League's concerns.

The bill was heard by the Senate Judiciary Committee on Monday, March 12. The amendment was offered by the committee chairman, Senator Ron Gould (R-Lake Havasu City), on behalf of the bill's sponsor. The amendment, however, was defeated by voice vote, and the committee proceeded to approve the bill as introduced by a vote of 6-2.

The League remains adamantly opposed to the bill for a variety of reasons, including: state interference in a matter of purely local concern (particularly with respect to the elimination of spring elections for cities and towns); prospective ballot length and voter fatigue; increased costs and voter confusion; unnecessary and harmful delays for certain types of elections; and difficulties associated with all-mail ballots. The bill now proceeds to the Senate Rules Committee. In the meantime, city and town officials are encouraged to contact their senators to urge strong opposition to HB 2826.

Department of Water Resources funding

On Thursday, March 15, the House Committee on Agriculture and Water unanimously approved SB 1288 (municipal water fees; repeal; appropriation). The legislation repeals the statutory authority of the Arizona Department of Water Resources to impose an assessment on cities and towns to fund departmental operations. The bill further provides for funding of the agency through the State's general fund. The League testified in support of the bill, which is scheduled for a hearing before the House Appropriations Committee on Wednesday, March 21.

Regulatory tax credit

On Thursday, March 15, the Senate Finance Committee approved HB 2815 (employment; incentives; regulatory tax credit) by a vote of 4-2. The League testified in opposition to the regulatory tax credit section of the bill, emphasizing: the convoluted nature of the claims process; the additional administrative expenses imposed on state and local government; and the bill's great potential for unintended consequences. Testifying in support of that provision, a representative of the Goldwater Institute observed that only health, safety and fraud are properly within the purview of government regulation. Moreover, according to the witness, any rules regarding aesthetics, building appearance or design review are beyond the proper scope of government. Some business groups testified in support of another section of the bill that phases out the state's capital gains tax, which would result in a $62 million reduction in state revenues in 2014 and nearly $400 million by 2020. The bill now proceeds to the Senate Rules Committee for further consideration.

Water and wastewater

On Wednesday, March 13, the Senate Committee on Water, Land Use and Rural Development heard HB 2416 (water and wastewater; denial prohibited), which previously passed the House on reconsideration. The bill mandates that cities and towns in Pima County provide water service to areas outside of their corporate boundaries. The committee amended the bill to further limit its application to a particular case involving the City of Tucson. Despite the League's opposition to the bill, it passed by a vote of 4-2. It now proceeds to the Senate Rules Committee for further consideration.

Border warnings

HB 2586 (border warning; dissemination), sponsored by Rep. Peggy Judd (R-Willcox), requires the state director of homeland security to monitor "dangerous conditions in regard to illegal immigration activities" in the Arizona-Mexico border area and authorizes the director to disseminate such information to the public. The bill passed the House Committee of the Whole on March 2.

On Monday, March 12, the League, along with several southern Arizona city representatives, participated in a stakeholder meeting hosted by the bill's sponsor. Rep. Judd suggested an alternative approach to achieve her objective, but stakeholders prevailed upon her to abandon the effort altogether. As a consequence of the discussion, the bill will not move forward. The League thanks Rep. Judd for her time and responsiveness to constituent concerns.

Firearms

On Monday, March 12, the Senate Judiciary Committee passed HB 2729 (state regulation of firearms) by a vote of 6-2. The bill, opposed by the League, requires governmental entities to allow guns into public establishments, unless certified law enforcement officers or armed personnel and metal detection equipment are present 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 ordinances stricter than state law.

On Thursday, March 15, the House Committee on Military Affairs and Public Safety passed SB 1304 (firearms regulation; political subdivisions) by a vote of 5-2. 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. Pursuant to an amendment adopted by the Senate, the bill does establish parameters for criminal negligence for the use of a firearm within a municipality. The legislation proceeds to the House Rules Committee for further consideration.

Also on March 15, the House Judiciary Committee passed SB 1087 (firearms; state preemption) by a vote of 7-1. Sponsored by Senator Ron Gould (R-Lake Havasu City), the bill provides that local firearms ordinances can be no more restrictive than state law. The League opposes this preemptive measure, which now advances to the House Rules Committee.

Homeowners' associations

On Monday, March 12, the Senate Committee on Veterans, Military and Government Affairs passed HB 2030 (homeowners' associations; public roadways) by a vote of 4-2. Sponsored by Rep. John Kavanagh (R-Fountain Hills), the bill as amended restricts homeowners' associations from regulating parking on any roadways dedicated to a governmental entity if the HOA does not permit homeowners to have at least two vehicles parked in their driveways. The League opposes the measure because of its potential to shift costs of enforcement onto municipalities.

Sales tax collection

On Thursday, March 15, the Senate Finance Committee unanimously approved HB 2466 (NOW: Payment; local sales tax). The legislation provides for the creation of an online portal for the direct remittance of taxes by taxpayers in self-collecting cities. This initiative will be especially useful for taxpayers that have business in multiple jurisdictions. The League has been working cooperatively with the bill's sponsor, Rep. Rick Gray (R-Sun City), to establish the technological framework for the portal. The bill now proceeds to the Senate Rules Committee for further consideration.

Consumer fireworks

On Wednesday, March 14, the Senate Committee on Government Reform passed HB 2361 (NOW: regulations; consumer fireworks) by a vote of 6-0. 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.

On the same day, the House Committee on Military Affairs and Public Safety passed comparable legislation, SB 1364 (consumer fireworks; permitted regulation), by a vote of 7-2. The committee, however, adopted an amendment removing the authority of jurisdictions within Yavapai and Coconino Counties to regulate the sale of fireworks. SB 1364 now proceeds to the House Rules Committee, while HB 2361 moves to the Senate Rules Committee for further consideration.

Council Procedures

On Wednesday, March 14, the Senate Committee on Government Reform passed HB 2570 (political subdivisions; proceedings; governing bodies) by a vote of 4-2. The bill provides that a municipal ordinance may not take effect until it has been publicly 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 bill was amended in committee to stipulate that emergency ordinances expire 90 days after adoption instead of 60. Additionally, the amendment makes certain clarifying changes to last year's SB 1598 (cities; counties; regulatory review) regarding licensing timeframes and exempt permits and licenses. The League, which successfully negotiated with the sponsor for the inclusion of several improvements to the legislation, is neutral on the bill. The measure next proceeds to the Senate Committee of the Whole.

Liquor regulation

On Monday, March 12, the Senate Rules Committee approved HB 2606 (s/e: liquor omnibus). The bill was caucused by both the Senate majority and minority the following day.

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 Committee of the Whole for further consideration.

Animal cruelty

On Monday, March 12, the Senate Judiciary Committee passed HB 2780 (animal cruelty; ranching dogs) by a vote of 5-3. The bill provides an exemption from animal cruelty statutes for dogs involved in ranching and farming activities. The League testified against the bill, noting its objection to a provision that specifically prohibits cities and towns from enacting ordinances restricting activities involving such dogs. The League is working with the bill sponsor, Rep. Peggy Judd (R-Willcox), on an amendment that would remove the preemptive language.

Alarm system installation

On Wednesday, March 14, the House Commerce Committee unanimously approved SB 1306 (NOW: alarm businesses; agents; regulation; licensing). On the same day, the Senate Committee on Government Reform passed HB 2748 (cities; alarm licenses; reciprocity) by a vote of 6-0.

Identical strike-everything amendments to the bills were passed in both committees. The "strikers" memorialize a compromise agreement among stakeholders that was brokered by the bills' sponsors, Senator Frank Antenori (R-Tucson) and Rep. Amanda Reeve (R-Phoenix), respectively.

The agreement provides for the establishment of a statewide certification requirement for alarm businesses and alarm agents, and it preempts further local regulation of alarm installation. Local government, however, may continue to regulate other aspects of alarms (such as false alarms) through ordinance. The League, a key stakeholder in negotiations, thanks the sponsors for their cooperation and leadership.

Street Assessments

On Thursday, March 15, the Senate Finance Committee passed a strike-everything amendment to HB 2151 (s/e: assessments; intergovernmental agreements). The amendment prohibits a municipality from assessing property for any street constructed or improved pursuant to an intergovernmental agreement between public bodies. The League opposes the measure, which would substantially restrict the ability of municipalities to reduce costs to the taxpayer through partnerships with other public entities. The bill now proceeds to the Senate Rules Committee for further consideration.

Government deposits

On Monday, March 12, the House Rules Committee unanimously approved 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, which now proceeds to the House Committee of the Whole.

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.

Revenue allocation districts

On Thursday, March 15, the Senate Finance Committee passed HB 2469 (revenue allocation districts) by a vote of 5-1. 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 strongly supports the measure, which now heads to the full Senate for further consideration.

Public works notification

On Wednesday, February 14, the Senate Committee on Government Reform passed HB 2350 (NOW: cities; counties; regulations) by a vote of 6-0. 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 or accelerated projects. The League is neutral on the bill because of its inclusion of changes negotiated with proponents. HB 2350 now proceeds to the Senate Rules Committee.

Emergency Response

On Thursday, March 15, the Senate Finance Committee passed HB 2094 (prepaid wireless E911 excise tax) by a vote of 5-1. 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 on all telecommunications services for this purpose. The tax, however, is currently collected only on monthly wired and wireless services. The League supports HB 2094, as a means to effect considerable improvement of Arizona's aging 9-1-1 system. The legislation now proceeds to the Senate Rules Committee.

Law enforcement

On Wednesday, March 14, the House Committee on Military Affairs and Public Safety passed SB 1186 (law enforcement officers; omnibus) by a vote of 7-0. Among other things, the measure, sponsored by Sen. Linda Gray (R-Phoenix), severely curtails the ability of law enforcement agencies to require fitness for duty examinations. The League opposes the bill as a costly impediment to the discipline of problematic officers.

Pension reform

On Thursday, March 15, the Senate Finance Committee unanimously approved HB 2745 (NOW: 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: 1) was hired before the effective date of last year's pension reform bill; 2) previously retired from PSPRS; and 3) is enrolled in another state retirement system. This change will result in cost savings for some of Arizona's cities and towns. The League supports the bill, which proceeds to the Senate Rules Committee.

Legislator Profile - Representative Steve Court

Representative Steve Court
Court is now in session. Steve Court, that is: sophomore state legislator from District 18 and the Majority Leader of the Arizona House of Representatives.

Considering that, prior to his first run for political in office in 2008, Court had never served as a precinct committeeman, attended a district meeting or worked on a political campaign, his rapid rise from retired citizen to senior House leader is nothing short of meteoric. Characteristic of his modest nature, however, Court attributes his entry into leadership to logistics. "In 2008, forty freshmen were elected to the Legislature," he notes. "The freshman class of 2010 numbers forty-two. There just aren't that many people with experience from which to choose."

Court was born in Winchester, Massachusetts, and raised in Wakefield, a scenic town 10 miles north of Boston that was first settled in 1638. His mother's family, of Canadian and German descent, immigrated to the United States from Canada. His father's ancestors came to America from England during colonial times. Court, who still has family in New England, can boast of relatives who fought in the Revolutionary War.

Upon his graduation from high school, Court entered college at the Lowell Technological Institute, an academic gem that has since been absorbed into the University of Massachusetts system. Lacking a passion for science and engineering, he settled on accounting as his major after his first year. During his collegiate career, Court concentrated on his studies but did find time to participate as a member of the Lowell crew team, plying the waters of Greater Boston in a four-man boat.

Court also joined a local fraternity, Omicron Pi. Although it was not part of a national network, the parochial organization fostered an especially strong brotherhood that ultimately had a great impact on Court's future. Following graduation, for example, he joined with a fraternity brother to try their hand at homebuilding. They constructed a single house on spec just as the residential housing market tanked. "That project didn't work out so well," Court recalls.

Other fraternity brothers, however, had an idea whose promise helped shape the contours of Court's adult life. They had moved to Arizona to work for Motorola, which was at the time the Valley's largest employer. They encouraged Brother Court to join them. He did, and the decision led to a 20-year career as an accountant with the electronics giant.

"I drove through snowstorms to get here," Court remembers. "It was great to arrive at a place where the summer was bearable and winter was non-existent." Sitting outside as his first summer as an Arizonan approached, Court recognized that something elemental to the season was missing. "There weren't any mosquitoes to slap at," he laughs.

The decision to relocate to Arizona led not only to a new job but to the altar as well. Having converted to the Mormon faith as a young adult, he met his wife Susan, a native Arizonan, at an LDS church on the campus of Arizona State University. They celebrated their 33rd anniversary in August.

The union has been a fruitful one. The couple has produced four children, three of whom attended Westwood High like their mother (the fourth attended Mountain View). Moreover, all four graduated from college, are married and are producing children of their own. The Courts have 11 grandchildren - so far.

After his successful tenure at Motorola, Court yielded to his entrepreneurial urges and purchased a Chem-Dry carpet and upholstery cleaning business from his brother-in-law. Court found that running the business was hard work, as he endured the transition from white collar executive to small businessman who did it all - including the gritty labor of carpet sanitation. He stuck with it, though, earning a decent living from the franchise for 10 years, after which period he decided to sell the business to his eldest son and retire.

Enjoying retirement in idle repose, however, was out of the question - especially as his wife continued (and continues) to work as a full-time attorney with the Mesa law firm of Jackson White. That's where politics came in.

A persuasive friend encouraged Court to run for the House in 2008. There were two open seats in legislative district 18, so the enterprising retiree boldly announced his candidacy and went to work. He won that first election on the force of his message, reputation and ability.

As a legislator, Court enjoys the policy-making aspects of his work far more than the associated politics. Given his background in finance and accountancy, he is especially drawn to budget and tax policy.

In the letter accompanying her veto of SB 1322 (managed competition; city services), Governor Brewer wrote: "I am becoming increasingly concerned that many bills introduced this session micromanage decisions best made at the local level. What happened to the conservative belief that the most effective, responsible and responsive government is government closest to the people?" Asked for his reaction to the Governor's comments, Majority Leader Court does not mince words: "I agree with the Governor 100 percent." Surely that explains why he was recognized with a Friend of Cities award at the League's annual conference in 2011.

Following the 2011 legislative session, Court made a determined effort to lose weight. Shedding pounds at a clip of four a week, he lost 30 in the first two months of his diet. He then proceeded to cast off another 35, mainly by watching calories. (He also credits colleague Representative Tom Forese for sharing a useful calorie-tracking mobile phone application.)

If the majority leader of the Arizona House can impose the same kind of discipline on the lower chamber that he has with respect to his own diet, then Arizonans will doubtless enjoy more effective and efficient legislative machinery. And they just might find that they have a leader who is worth his (diminished) weight in gold.

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