Next Friday, February 22, marks the deadline established by rule for legislation to be heard in committee in the house of origin. All
indications point to the Legislature holding to this deadline. As a result, the committee agendas for next week are laden with bills
for consideration. Although it appears that the deadline will be honored, it should be noted that the Appropriations Committees are
authorized to continue holding hearings. Additionally, committees may continue to meet to consider bills from the other chamber, hear
presentations, and even consider bills from house of origin, if granted permission by the president or speaker of the House.
Changes to Transaction Privilege Taxes (TPT)
HB 2657 (transaction privilege tax changes) was introduced this
week by Rep. Debbie Lesko (R-Glendale). This bill reflects some of the recommendations of the Governor's TPT Simplification Task Force.
It includes three issues that cities and towns oppose in their current form:
The bill has been scheduled to be heard next Monday, February 18, in the House Ways and Means Committee where the League will present
testimony on the bill. We encourage you to keep in contact with your delegation about this bill as it moves through the legislative
- Moving all cities and towns into the DOR collection program.
- Requiring that all audits be conducted by the DOR.
- Removing the construction contracting classification from both state statute and from the Model City Tax Code.
Revenue Allocation Districts
On Monday, February 11, the House Ways and Means Committee passed
HB 2456 (revenue allocation districts). The measure, sponsored by Rep. Phil
Lovas (R-Peoria), 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 bill was amended in order to make changes intended to address
concerns raised by Gov. Brewer in her veto letter of the same bill last year. The League supports the measure for its potential as an
economic development tool, which was the subject of a League resolution.
HB 2533 (local governments; public notices; website) passed out
of the House Technology and Infrastructure Committee on Thursday by a vote of 4-2. The League testified in support of the measure.
Sponsored by Rep. Warren Peterson (R - Gilbert) HB 2533 allows cities, towns and counties to provide public notice on their own
websites, instead of in a newspaper. If a city or town does not have a website, the League will host the posting. Once a year, the
municipality will have to publish in a newspaper the location of the public notice website.
This issue has been important to cities and towns for many years. We are thankful to Rep. Peterson and the bill's co-sponsors for this
effort. The bill now goes on to the House Government Committee where it will be heard next Tuesday.
On Thursday, February 14 the House Judiciary Committee passed
HB 2527 (elections; revisions) on a 4-2 vote. Among other
changes, the bill, sponsored by Rep. Michelle Ugenti (R- Scottsdale) authorizes municipalities to lengthen or shorten their terms in
order to transition to candidate elections in the fall of even years. The bill also modifies municipal incorporation statutes
accordingly. The League testified in favor of the bill, supporting these key changes to ensure the smoothest transition to a
consolidated election schedule. The bill next proceeds to the House Government Committee. We are working with the sponsor to
introduce an amendment to address the issue of expiring local expenditure limits. The League thanks the sponsor for introducing HB
2527 and her continued efforts on our behalf.
On Wednesday, February 13, the House Commerce Committee passed
HB 2185 (alarm businesses; alarm agents). As amended the bill
allows for alarm companies to provide local law enforcement the necessary information to respond to alarm calls. The bill also keeps in
place the background checks system for alarm agents. This bill is a clean-up measure to last year's HB 2748.
The League signed in support of the bill and has been able to provide input to the sponsor, Rep. Karen Fann (R - Prescott). We will
continue to work with Rep. Fann on this measure as it proceeds through the legislative process. Its next stop is the House Rules
Other Bills of Note
(All bills being actively monitored by the League can be found here.)
Bill Number - Short Title - Subject(s)
HB 2005: political subdivision entities; public access - transparency
HB 2347: city parcel tax; prohibition - finance
HB 2526: street light improvement districts - general government
HB 2544: city parcel tax; prohibition - finance
SB 1028: municipal TPT exemption; leases; LLC - finance
SB 1231: public buildings; construction; indemnity - general government
SB 1278: homeowners' associations; public roadways - HOA
Legislative Bulletin is published by the League of Arizona Cities and Towns.
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