ACMA Legislative Report Winter 2018 Ken Strobeck League of Arizona Cities and Towns

Legislative Landscape-2018 Background of Sexual Harassment Allegations and Investigations Two New Senators: Sine Kerr replaces Steve Montenegro (LD13) Rick Gray replaces Debbie Lesko (LD21) Montenegro and Lesko resigned to run for CD8; Smith-CD1 Election year for Senate/House/Governor Bill Introduction Deadlines--Senate: Monday, January 29; House: Monday, Feb. 5 908 bills introduced this session so far Legislator (gleefully): “It’s gonna be a really bad year for cities!!”

Governor’s Budget; Cities and Towns Overview FY2018-19 GF spending up 3.2% to pre-recession levels; biggest increases in K-12 education, teacher salaries. Projected $5 million surplus. HURF Sweeps $99.4 million; transfers $30 million from ADOT Loan Fund. DOR Budget increase for additional TPT auditors and fraud detection analytics No change to $20 million assessment: cities, towns, counties, MAG & PAG 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 Preemptions HB2333, SB 1002: Home-based businesses; regulations; municipalities HB2371: Mobile Food Vendors; State Licensure. Public property, parking spaces, no spacing limits, no numerical limits, no indemnification SB1153, HB1093: Homes on half-acre with no fire flow; extension of sprinkler preemption SB1110, HB2208: Photo radar-Officer review; complete prohibition Statewide cable licensure: Licenses from SOS; limits street cuts, relo, undergrounding; PEG channels 1153:  Exempts single-family residential properties or single-family residential subdivisions from fire code requirements related to water or fire flow if all the following conditions are met: a)      The property is located outside Maricopa or Pima counties; b)      The lot size of the property is one-half acre or more; and c)      The current adjacent public water distribution system or private well does not meet water or fire flow requirements. Intent clause: It is the intent of the legislature to clarify that it is the responsibility of a municipality, not the landowner, to comply with requirements to provide fire flow for fire protection under a fire code adopted by the municipality. S Allen

City & Town Bills Finance HB2479: TPT, Digital Goods. Exempts software and other digital products from TPT; download vs. cloud HB2126, HB2330, HB2005: GPLET Reform; slum/blight definitions, CBD from 5% to 2.5% of area; schools tax deducted from shared revenue; 25-year lease limit HB2217: TPT exemption; adult diapers; baby formula; feminine hygiene products HB2387, SB1409: Spec Builder-virtual elimination; CST, Alteration back to Contracting, Handymen exempt from CST Mitchell comments re: 2217. Reminds him of Residential Rental tax elimination bill. In his opinion, nothing essential should be taxed. Cobb bill $75,000 appropriation for study of non-compliance

City & Town Bills Finance (continued) Notice of Claims; Liability SB1092: Extends claim time to 18 months (all others 12 months) for death of person being treated for mental illness. HB2116: Developer liability limited to eight years; then falls to city. (AZ Supreme Court case last year regarding Phoenix, developer and mesothelioma claim.) HB2386: Eliminates amount “for which the claim can be settled” and replaces with “payment in full of the amount included in the claim”

City & Town Bills General Government Public Safety Maybe: City Logos prohibited for use with private businesses, Service Line Warranty issue HB2207: AV recording of ALL public meetings; posted on website within 5 days, retained 5 years HB2334 Liquor Omnibus: Removes brawl or disturbance from Act of Violence definition; clerks ok for special events Public Safety HB2105: PTSD Full Presumption/treatment/ payment/open-ended Unknown: PSPRS Local Board consolidation

City & Town Bills Good Bills Good News (so far) SB1374: SB1487 Changes: city/town in legislator district; access to courts; response time to 30 days, 60 days to resolve; attorney fees SB1013: Zoning protests: Correction to last year’s bill that included the property being rezoned SB1382: Online Lodging Marketplace: TPT from ALL vendors, not just Air BnB HB2182: Campaign Finance, candidate committee transfers Good News (so far) No Guns in Public Buildings Bill A man is likely to mind his own business when it is worth minding. When it is not, he takes his mind off his own meaningless affairs by minding other people's business. Eric Hoffer, writer and social critic