Issue 23 - June 14, 2013

Legislative Overview

Yesterday was the 151st day of the First Regular Session of the 51st Legislature and the chambers completed their labors at 1:00 a.m. and adjourned sine die for the regular session. Activity and drama were both in abundance this week at the Capitol as the Governor convened a special session on Tuesday to specifically address the state budget and Medicaid. The call of the Governor can be found here. The House and Senate met on Tuesday, Wednesday and Thursday under the First Special Session to pass a budget substantially similar to budget plan that passed the Senate a few weeks ago, meaning the proposal sent to the Governor included Medicaid-related provisions. The special session adjourned on Thursday.

Changes to Transaction Privilege Taxes

On Thursday, the Senate passed HB 2111 (investments; public monies) on a 29-0 and the House on a 58-1 vote. The bill was amended on the floor with a Senator Yarbrough floor amendment that eliminates the prime contracting provisions except as it applies to service contractors. Additionally, the amendment ensures that municipalities will still be able to receive the taxpayer information they rely on and still play a role in DOR audits of multi-city businesses. The "hold harmless" provision contemplated by previously circulated floor amendments was not contained in the final adopted amendment, meaning that some cities and towns will not be required to subsidize others. These provisions do not take effect until 2015.

The League would like to thank the many representatives and senators that stood with cities and towns to ensure that tax simplification would not be enacted on the backs of municipalities.

Elections Changes and HOAs

SB 1454 (campaign finance; in-kind contributions; disclosures) was amended in the House of Representatives on June 13th to include most of the consolidated elections fixes that the League has pursued all session. Provisions to address incorporation elections, length of terms and alternative expenditure limitation were all added in the House via an amendment by Rep. Michelle Ugenti (R - Scottsdale). The section on term lengths only allows lengthening terms, not shortening them. There is also a provision affecting the ability of municipalities to require planned communities. We appreciate Rep. Ugenti's efforts and also the benevolence of Senator Kimberly Yee (R - Phoenix) for allowing the League's language to be attached to her bill. SB 1454 passed by vast majorities and is on its way to the Governor.

Other Bills of Note

(All bills being actively monitored by the League can be found here.)

Bill Number - Short Title - Subject(s)

HB 2562: public retirement systems; ineligible - pension

SB 1231: public buildings; construction; indemnity - general government

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