Legislative Overview

Today is the 68th day of session. Most committees had lengthy agendas and floor sessions were also packed. This was the last week for all committees except for Appropriations to hear bills. Other committees may hear presentations or executive nominations in the weeks to come.

To date Governor Ducey has signed 46 bills.

Penalizing Cities

SB1487, state law; local violations; penalties, withholds shared revenue from cities and towns that are found by the Attorney General to have violated state law. Governor Ducey signed the bill at approximately 3 p.m. on Thursday after it passed out of the House on Wednesday by a 32-28 vote. The League and several Mayors had asked for a veto. The League has been strongly opposed to the bill as an attack on local authority and a bypassing of the constitutional protections of due process.

Census

HB2483, municipal population estimates; use, sponsored by Representative Justin Olson (R - Mesa) passed the Senate Appropriations Committee this week by a unanimous vote. It allows for cities and towns to use the U.S. Census Bureau's population estimates on a yearly basis to keep up with changes in growth. This measure was the result of cities and towns working together to reach a successful resolution. The bill now goes to the Rules Committee.

Online Homesharing

SB1350, online homesharing administration; definitions, allows for a city, town, or other taxing jurisdiction to levy a transaction privilege, sales, use or similar tax/fee on the business of operating a online lodging marketplace such as Airbnb. The bill also prohibits municipalities from banning this type of short-term housing rental; it is sponsored by Senator Debbie Lesko (R - Peoria). The League is continuing to engage in negotiations with the proponents in order to reach a reasonable compromise on these issues, therefore the League is officially neutral. The bill passed the House Ways and Means Committee by a vote of 8-1, and now goes to the Rules Committee.

Regulation Restrictions

The Senate Government Committee passed HB2517, businesses; professions; regulation restrictions, by a 4-3 vote. This bill is sponsored by Rep. Warren Peterson (R - Gilbert). It would limit municipalities, counties and state agencies from adopting any regulation that applies to business except for purposes of public health, safety and welfare. Additionally, these governmental entities would have to review all of their existing regulations and eliminate or modify any that do not meet this restriction and make a report to the legislature. The bill also establishes a private right of action, allowing any person to sue the municipality if they believed they were not in compliance. The League opposed this bill. It will now go to the Rules Committee.

Drones

SB1449, unmanned aircraft; prohibited operations, passed the House Judiciary Committee this week by a vote of 6-0. Sponsored by Senator John Kavanagh (R - Fountain Hills), the bill prescribes various regulations associated with unmanned aircraft, or drones. The Judiciary Chair, Representative Eddie Farnsworth, successfully sponsored a committee amendment designed to streamline the bill and added that he would work with stakeholders to further refine the measure. The League opposes the bill as it is preemptive. It now goes to the Rules Committee.

Recovery Home Regulation

HB2107, substance abuse recovery homes, passed the Senate Health and Human Services Committee by a unanimous vote. Rep. Noel Campbell (R - Prescott) the sponsor of the bill, is seeking to provide some regulation on the substance abuse recovery home industry. There was a strike everything amendment in the Health Committee to further develop the bill. It now goes to the Rules Committee.

Community Facilities Districts

HB2568; community facilities districts; formation; governance, sponsored by Speaker of the House David Gowan (R - Sierra Vista) states that a community facilities district may be formed without the approval of the local jurisdiction if the land involved is 600 acres or more, and all the landowners sign the formation petition. It also specifies that the governing board will be made up of five members-two appointed by the local government, two appointed by the landowners and one from a list the landowners will supply to the local government. As amended in the Senate Government Committee, it provides indemnification for the local government, but does not allow for the land to be held for security, nor does it allow for the landowners' financial ability for repayment to be revealed. The League opposes the measure. HB2568 passed the Senate Government Committee by a vote of 5-1, and now proceeds to the Rules Committee.

Legislative Bill Monitoring

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

SB1487: state law; local violations; penalties

HB2483: municipal population estimates; use

SB1350: online lodging; administration; definitions

HB2517: businesses; professions; regulation restrictions

SB1449: prohibited operations; unmanned aircraft

HB2107: substance abuse recovery homes

HB2568: community facilities districts; formation; governance

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