ACMA Legislative Report Winter 2017 Ken Strobeck League of Arizona Cities and Towns

Legislative Landscape New leadership: House: Speaker J.D. Mesnard, Chandler (LD17) Senate: President Steve Yarbrough, Chandler (LD17) Freshmen: 23 House; 1 Senate Senate Bill Deadline: Monday, January 30; Senate bills in Senate Committees: Feb. 17 House Bill Deadline: Friday, Feb. 10; House bills in House Committees: Feb. 17 Fewer bills than 2016 session so far

Governor’s Budget; Cities and Towns Prioritizes K-12 Education Adds $114 million. $9.8 billion budget; estimate $11 million balance. Medicaid uncertainty HURF Sweeps $96 million Universities $30 million for bonding for capital projects from state TPT recapture, including $6.5 million of shared revenue for operations and student aid. DOR No change to assessment for collection services The balance is insufficient to address:  Proposition 206 minimum wage requirement  Continuation of “ongoing” one-time initiatives  Affordable Care Act repeal and other fiscal challenges  Revenue forecast uncertainties  $289 M in Executive spending and tax initiatives DOR auditor layoffs may impact collections

City & Town Bills Immigration/Sanctuary Cities General Government HB 2086: Municipal ID card prohibition; lose shared revenue HB2121: No sanctuary cities; officials liable for any crime committed by unlawful alien General Government HB 2179: Review and reapprove all IGAs; 8-year limit HB 2143: Road maintenance bid out; 25k threshold; lose shared revenue

City & Town Bills Firearms Finance Elections SB1243: firearms permitted in public buildings Finance HB2213: GPLET Reform; numerous changes; school tax, slum/blight definitions; restricts grandfathering HB 2212: Identify all federal funds; develop plan to operate without them Elections HB2317: Require party labels for council candidates

City & Town Bills Small cell Public Safety Construction Sales Tax SB1214: Cox; HB2365: Verizon. Both involve ROW use and fees Public Safety Cancer/Cardiac Presumptions HB2340: Staffing requirements Construction Sales Tax SB1487 Litigation HB2257: SB1487 “Fixes” SB1210: SB1487 Expansion HB 2365 as it pertains to smallcell equipment deployment in rights-of-way. The bill allows smallcell equipment to be permitted in the right-of-way, while cities will have the authority to require stealth and concealment of equipment and the bill excludes certain structures in the right-of-way “by right.” The bill was to be heard in Senate Government this week; however, a striker amendment to fix some language was not posted in time, and due to Senate rules for striker amendment posting, the bill will not receive a hearing this week. The bill is expected to be heard on February 8th. Since we have been able to compromise on many of the major issues in this bill, the League will be in support. 2365 The League has several concerns about this bill. It has been drafted in Title 11 rather than Title 9, but has applicability to cities and towns. HB2365 pre-empts smallcell agreements, prescribes a $20 flat collocation fee, and allows placement of equipment by right. If both SB 1214 and this bill pass, there will be two different and conflicting regulatory schemes which could cause problems for cities and towns because they are required to be nondiscriminatory and treat all companies equally. The proposal calls for expanding the number of cancers that are presumed to arise out of or in the course of employment as a firefighter. Adding presumptions for 12 additional cancer types under worker’s compensation is expected to significantly increase costs and liabilities. CITY OR TOWN THAT HAS A POPULATION OF FIVE HUNDRED THOUSAND OR MORE PERSONS SHALL PROVIDE A MINIMUM OF TWO AND ONE‑HALF PEACE OFFICERS FOR EVERY ONE THOUSAND PERSONS. Pool non-discretionary, rate for discretionary. All plans different rates. Employee contribution fixed; employer floats Tucson gun destruction ordinance; Supreme Court oral arguments February 28. 2257 changes several provisions from “shall” to “may” Smith’s S1210 (state law; violations; political subdivisions) would extend the threat of losing any county or state money to practically all political subdivisions, which are broadly defined as “any agency, board, commission or political subdivision of this state that has a governing body,” whether they’re comprised of elected or appointed members. The implications are nearly endless, as it appears to apply to anything from the Corp Comm to a local school board to even the Central Arizona Project.

City & Town Bills SB1025: Absolute Immunity PSPRS Tier III: Pooling and contribution HB2017: Bond notice Worst case scenario AND most likely scenario SB1211: ADOT Omnibus ADOT authority for NEPA process SB1025: Absolute Immunity Roadway liability HB2177: EDRA Economic development property tax reimbursement HB2017-similar to last year. Did not pass SB1211 – ADOT Omnibus  Among other things, this bill allows ADOT to assume authority over the National Environmental Policy Act (NEPA) process for federally funded projects. ADOT says this should streamline the process and save time and money for cities and towns. We will register in support of this bill. SB1025 - public entities; absolute immunity; defenses  SB1025 is the result of a lawsuit in which the League filed an amicus brief regarding liability for road and highway conditions. This would grant immunity to public entities who met minimum standards for transportation facilities. The League supports this bill.  This is a League resolution for a new economic development tool, – economic development reimbursement authority (EDRA). This will allow municipalities to reimburse developers for infrastructure costs with the increased property taxes based on the increased value the project will develop. This has been similarly done with sales tax revenue. Arizona is the only state that does NOT have this type of mechanism to attract development.