Legislative Overview

Today marks the 33rd day of the 2016 session. The Legislature was in high gear this week, with long committee and floor sessions. There is one more week for bills to be heard in their chamber of origin.

All deadlines have passed for bill introduction. To date there have been 1219 bills introduced, with 105 memorials and resolutions. This is an increase of approximately 5% over last year's totals. There are 694 House bills and 525 Senate bills. So far, only a single bill has been signed: HB2468 (internet crimes against children; appropriation).

PSPRS

The package of bills that reform the Public Safety Personnel Retirement System (PSPRS), SB1428, SB1429 and SCR1019, passed out of a special meeting of the House Insurance Committee on Thursday by votes of 7-1 each. The League testified in support of the package as the best solution for reforming the state pension system for public safety personnel. Cities and towns have the most members in the system and have the largest unfunded liability. The bills create a new Tier 3 for future employees-those hired after July 1, 2017 - and include a question that should appear on the May 17th special election ballot that changes the Permanent Benefit Increase (PBI) to an annual COLA for existing employees and retirees. The bills passed out of the full House on Thursday. SB1428 was amended on the House floor and will likely have final action in the Senate on Monday.

Photo Radar

On Tuesday, HB2122, technical correction; technical registration board had a strike-everything amendment related to photo enforcement and driver's license suspension. Sponsored by Representative J.D. Mesnard (R - Chandler), the bill would prohibit a license suspension for a failure to appear in court violation on a photo enforcement ticket. The League was opposed as removing the suspension would essentially take the enforcement out of the photo radar system. The bill passed the House Transportation and Infrastructure Committee by a vote of 5-3 and now moves on to the House Rules Committee.

Sanctuary Cities

HB2223, prohibited money transfers; information sharing, passed the House Government and Higher Education Committee on Thursday by a vote of 6-3. The bill is sponsored by Representative Jay Lawrence (R - Scottsdale) and would penalize cities and towns that do not follow federal immigration law by withholding shared revenue. The League testified that there are no sanctuary cities in Arizona and was therefore neutral. The bill proceeds to the House Rules Committee.

Property Tax

Sponsored by Representative J.D. Mesnard (R - Chandler) HB2538, municipal bonds; tax levy was heard in the House Ways and Means committee on Monday of this week. The League signed in favor of the bill because it allows a city's or town's secondary property tax levy to include enough funds to be used for early defeasance of existing debt as well as to correct prior year shortages in the levy. Currently cities and towns can only levy enough to pay for principal and interest on the bonds. The bill passed unanimously and proceeds to the House Rules Committee.

Publicity Pamphlets

HB2570, local government bonds; ballot statement was heard in the House Ways and Means committee on Monday of this week. The League testified in opposition to the bill, which is sponsored by Representative John Allen (R - Scottsdale). The League opposed the language in the bill that requires publicity pamphlets to include the costs of a bond for a homeowner over the lifetime of that bond. That language makes it impossible for municipalities to calculate for a variety of reasons, including property valuations changing. While members of the committee expressed concerns with the bill, it was voted out unanimously. The measure now goes to the House Rules Committee. The League will seek amendments when the bill goes to the floor of the House.

Utilities

HB2486, telecommunications utilities; relocation; reimbursement was heard in the House Appropriations Committee on Wednesday of this week. Sponsored by Representative Justin Olson (R - Mesa) the bill concerns reimbursement of telecommunication utilities' relocation costs that are related to bond funded infrastructure projects. The League agreed to be neutral after the telecommunications industry made significant changes to similar legislation that they ran last year. The bill passed out of Committee unanimously, and goes on to the House Rules Committee.

Residential Rental

HB2026, municipal tax exemption, residential lease, sponsored by Representative Darin Mitchell (R - Litchfield Park), passed the House Ways and Means Committee by a vote of 5-4. The bill contains a strike everything amendment that would prohibit municipalities from charging residential rental tax on individuals who own three or fewer single family homes within one city. Before testimony in the committee the sponsor announced that he will sponsor a floor amendment to limit the tax exemption to the first two single family homes owned by an individual. The League opposed the bill, as the sponsor indicated his eventual goals is to eliminate the residential rental tax altogether. The bill now goes to House Rules Committee.

Legislative Bill Monitoring

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

HB2391: municipalities; water rates; requirements

HB2026: municipal tax exemptions; residential lease

HB2538: municipal bonds; tax levy

HB2570: local government bonds' ballot statement

HB2122: S/E: photo radar; driver license suspension

HB2486: telecommunications utilities; relocation; reimbursement

HB2233: public buildings; applicable fire codes

HB2223: prohibited money transfers; information sharing

Legislative Bulletin is published by the League of Arizona Cities and Towns.
Forward your comments or suggestions to league@azleague.org.