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2. ACMA Legislative Report Winter 2016 Ken Strobeck League of Arizona Cities and Towns 2

3. Legislative Landscape Budget shortfall evaporated; projected cash balance of $499 million New members: – House: Celeste Plumlee for Andrew Sherwood; Matt Kopec for Victoria Steele – Senate: Sherwood for Ableser; Sue Donahue for Kelli Ward Senate Bill Deadline: Monday, Feb. 1 House Bill Deadline: Monday, Feb. 8 New intensity for anti-city legislation 3

4. Governor’s Budget; Cities and Towns DOR Operations – 76 cents per resident of non-program cities ($2.8 million) for temporary staff to implement collection system (temp). – $10.9 million per capita for DOR collections operations. All cities and towns (permanent). HURF – No changes: Adds $30 million, sweeps $89 million No sweeps from WIFA or State Aviation 4

5. Shared Revenue and Charter Cities State of the State: Opposition to local minimum wage ordinances, mandatory sick leave ordinances Senate President; SB1487: Opposition to resistance to state law on plastic bags and other statutes – Any one or more members of the legislature initiate a complaint – Attorney General investigation; finding of violation of law or Constitution – Solution: withhold shared revenue – Send SSR to other cooperating cities (or counties) – Take Special Action to Supreme Court (highest priority case) and city posts bond equal to previous six months of revenue sharing funds – Restore SSR when offending ordinances are repealed 5

6. City & Town Bills-Bad HB2026: Eliminates Residential Rental Tax – $73 million per year revenue loss; only cities over 100,000 population (for now) HB 2267: Prime Contracting TPT Revisions – Point of sale retail, with 2% fund distributed HB2517: Justify all “entry” regulations – Right to earn a living bill Photo Enforcement – SB1241: no photo radar on state highways – HB2540: end all photo enforcement – SCR1010: referral to ban all photo enforcement 6

7. City & Town Bills-Bad (cont.) Firearms – SB1266: no local firearm ordinances in conflict with state law – SB1266: firearms permitted in public buildings Sanctuary Cities – SB1377: maximum sentences for illegals – SB1378: Sanctuary Cities Prohibition Act Plastic Bags, Energy Reporting – Repeal and Replace with two bills HB2440: Municipal Improvement Districts; election 7

8. City & Town Bills-Bad (cont.) OTHER ISSUES Tax Reductions: Income Tax, other exemptions TPT Reform Implementation 8

9. City & Town Bills-Good SB1428; SB1429; SCR1019: PSPRS Reform – Includes many features of the League Task Force “Yardstick” including 50-50 contribution; governance changes; disability boards and pooling unresolved – HB2512: No expenditure limitation violation for unfunded liability payments HB2483: Annual population adjustment for SSR HB2107: Substance Abuse Recovery Homes SB1282: Public Records; unduly burdensome requests 9

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