2. 2012 Legislative Update Arizona City-County Managers Association Friday, July 27, 2012 Ken Strobeck, Executive Director League of Arizona Cities and Towns

3. 50 th Legislature, 2 nd Regular Session: At a Glance Adjourned sine die on May 3, the 116 th day of session Last year adjourned sine die on April 20, the 100 th* day of session. Bill stats: – 1,395 bills introduced (45 more than last year; 162 more than 2010) – 387 bills passed (1 more than last year; 35 more than 2010) – 362 bills signed (5 more than last year) – 25 bills vetoed (4 less than last year) – 149 memorials and resolutions introduced (3 more than last year) – 49 memorials and resolutions passed (13 more than last year) Six new legislators. (Fontana, Lewis, Lovas, Lujan, Pierce J, Quezada), 3 resignations, 1 recall League tracked 382 bills with municipal impacts

4. FY 2013 Budget Success Eliminated the ADWR fee on municipalities – Savings of up to $7M annually – Same provisions as SB 1288 Eliminated the diversion of HURF monies to fund MVD – Restores $26.5M to cities and towns – Shifts the impact to the SHF Maintains the diversion of HURF monies to DPS – Impact of $36.5M to cities and towns – $775,000 increase in funding compared to FY12 E911 funding maintained – No sweep this year. 4 projects slated for funding.

5. League Losses HB 2469 – revenue allocation districts – Economic tool for municipalities – Vetoed by the Governor HB 2826 – consolidated election dates; political subdivisions – Move candidate elections to fall of even years – League, Counties vs. Goldwater Inst. and GOP SB 1442 – prime contracting; manufacturing facilities; infrastructure – “Intel Bill” originally supported by the League – Last minute changes impacted shared revenue

6. League Victories (Avoided) Impact Fees; no legislation this year! Regulatory Reform – HB 2468, HB 2585, SB 1470, SB 1505, SB1306 Photo Radar – SBs 1315, 16, 17, 18, SCR 1029, SCR 1031 Goldwater Bills – SB 1064, HB 2168, HB 2570, HB 2571 Many others – HB 2416, SB 1239, SB 1364, SB 1507

7. League Victories (Fixed and Vetoed) Fixed – HB 2123 – transaction privilege tax reform committee Committee to review TPT in Arizona Fix: Increased municipal representation and removed assumed results – Governor’s TPT Simplification Task Force – HB 2815 – employment; incentives; regulatory tax credit Makes changes to capital gains, net operating loss, tax credits Fix: Removed nonsensical regulatory tax credit – SB 1001/SCR 1001– military preservation; land exchanges Expands authority of land department to exchange state lands for the preservation of military installations; on 2012 ballot

8. League Victories (Fixed and Vetoed) Vetoed – HB 2557 – NOW: intersection; definition Provides a state definition of intersection in order to reduce photo radar citations. – HB 2729 – state regulation of firearms Provided a costly mandate in order to prohibit firearms in public buildings.

9. League Victories (Wins) HB 2094 – prepaid wireless E911 excise tax – Provides a viable mechanism for collecting on prepaid cell phones HB 2264 – ASRS; employee; employer contributions; rate – Reverts ASRS to a 50/50 split HB 2466 – NOW: payments; local sales tax – Establishes a web portal for non-program city tax remittance

10. League Victories (Wins) HB 2745 – NOW: PSPRS; employer contributions – Exempts certain positions from the PSPRS ACR. SB 1131 – transportation project advancement notes – Allows cities to use TPANs to accelerate transportation projects SB 1135 – government deposits – Allows municipalities to invest in federally insured savings deposit accounts

11. 51 st Legislature Key Uncontested Races: – LD12(S) – Senator Andy Biggs (majority leader) – LD19(H) – Rep. Anna Tovar (minority whip) Key Battles: – LD1(H) – Rep. Fann vs. Sen. Klein vs. Speaker Tobin – LD10(S) – Sen. Antenori vs. Bradley – LD13(S) – Sen. Nelson (withdrawn) vs. Sen. Shooter – LD16(S) – Sen. Crandall vs. Rep. Fillmore – LD23(R) – Rep. Kavanagh vs. Rep. Ugenti vs. Petersen – LD24(S) – Rep. Hobbs vs. Cheuvront – LD25(S) – Pearce vs. Worsley – LD26(S) – Sen. Lewis vs. Rep. Ableser – LD28(H) – Rep. Reeve vs. Rep. Brophy McGee vs. Rep. Meyer

12. Questions??? Contact Us League of Arizona Cities and Towns 1820 W. Washington St. Phoenix, AZ 85007 PH: (620) 258-5786 kstrobeck@azleague.org rguillen@azleague.org