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2. ACMA Legislative Report Winter 2015 Ken Strobeck League of Arizona Cities and Towns 2

3. Legislative Landscape New Governor; New Speaker; Veteran President Party makeup: – House: Republicans 36-24 – Senate: Republicans 17-13 Senate Bill Deadline: Monday, Feb. 2 House Bill Deadline: Monday, Feb. 9 Bill pace—slightly slower than recent years. New life for bad ideas. 3

4. Governor’s Budget; Cities and Towns DOR Operations – 76 cents per resident of non-program cities ($2.9 million) for temporary staff to implement collection system (temp). – $8.2 million from TPT shared revenue for DOR operations (collections). All cities and towns (permanent). – $2 million for additional collectors; city portion, approx. $500,000 (permanent). Assumes additional $6.5 million in city revenue collections. 4

5. Governor’s Budget; Cities and Towns (cont.) HURF – Reduces sweep from $89 million to $54 million and holds. – Add $7 to Vehicle Registration Fee for DPS operations ($15 total=$65 million). – Existing $8 plus new $7 no longer count toward HURF distribution (reduce $35 million for existing $8). Eliminate $1 million GF appropriation to WIFA Water Supply Development Fund. Sweep $15 million out of State Aviation Fund (current balance is $37.5 million). 5

6. City & Town Bills-Bad HB2254: Eliminates Residential Rental Tax – $87 million per year revenue loss (4-year phaseout) Revenue Reductions – HB2061: Income tax reduction to offset online sales – HB2264: School purchase exemption – HB2328: Sporting event host facility payment – HB2358: Crop duster exemption* – HB2381: Aircraft and equipment exemption – HB2383: Land value exemption – HB2156: Indian reservation TPT – SB1133: TPT refunds from DOR not vendor 6

7. City & Town Bills-Bad (cont.) HB2212: Employee Accountability; Exceeding Regulations – Still negotiating; notice required. SB1072: Local Planning; Residential Housing – Preempts inclusionary zoning (which doesn’t exist) HB2320: Firearms; Public Places – No prohibition without screening, security, etc. Preemptions – Long List 7

8. City & Town Bills-Good SB1446/HB2590: TPT Reform; Contractors HB2543: Municipal Elections; Calculations HB2324: IGAs; Indemnity SB1108: Task Force; Gas Tax Replacement SB1183: Improvement Districts; Enhanced Municipal Services Districts Other Issues – PSPRS Reform Task Force 8

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