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HomeMy WebLinkAboutCouncil Presentation 12-03-2019 - Town of Marana_2019 Legislative UpdateTown of Marana 2019 Legislative Update 2019-2020 LEGISLATURE 31 Republicans – 29 Democrats •19 True New Representatives •1 Former Legislator •5 Switching from Senate Senate = 30 Members House = 60 Members 17 Republicans – 13 Democrats •1 True New Senator •2 Former Legislators •11 Switching from the House It takes 31 votes to pass a bill 2019-2020 LEGISLATURE Razor-thin margin between Republicans and Democrats Least number of Republicans in the House since 1961 Heavy committee activity: 12 in Senate & 18 in House Session at a Glance 135-Day Legislative Session Adjourned Sine Die on May 28 at 12:58 a.m. Bills Introduced 1,318 803 R – 403 D Bills Passed 331 323 R – 8 D Bills Signed 320 312 R – 8 D Bills Vetoed 11 11 R – 0 D Bills Dead 987 480 R – 395 D FY2020 State Budget The $11.8 billion approved state budget plan represents a significant increase of $1.4 billion over the FY 2019 budget. Top priorities included: Infrastructure Projects $1 billion balance in rainy day fund Education Funding Housing Funding One-time investments FY2020 State Budget 2020 State Budget Highlights $11.8 billion state budget – key expenditures made in education and infrastructure $542M deposited into the state rainy-day fund to reach a balance of $1B $165M for an additional 5% teach pay raise, the next step of the 20X2020 plan $136M to restore funding for school additional assistance $130M to ADOT over the next three years for the expansion of I-17 between Anthem and Black Canyon City $20M to the School Safety Program, expands eligibility to include counselors and social workers in addition to SROs $18M distribution to cities and towns for street and highway projects – requires ADOT to distribute an equal amount for monies to be used only for street and high projects, including construction and maintenance ($197,802 per city) $15M one-time appropriation for Housing Trust Fund $15M to Water Quality Assurance Revolving Fund $10M one-time deposit to the State Aviation Fund $3M for rural broadband Directs ADOA to establish an expenditure plan for 911 comms Key Legislation Tax Conformity Within the first several weeks of session, Gov. Doug Ducey was at odds with Republican legislators who disagreed with his position for simple tax conformity Legislative R leadership and Gov. were at odds on the issue Hot Issues Wayfair (HB2702) Coalition of cities, retailers, shopping centers Authority for state to collect TPT from online sale transactions from out-of-state sellers Moves retail from Municipal City Tax Code into statute Agreement on five year legislative moratorium on Municipal City Tax Code Drought Contingency Plan At the eleventh hour, Gov. Doug Ducey signed legislation authorizing Arizona’s participation in the Drought Contingency Plan (DCP), the state’s most significant water legislation in 40 years ADOT Fee Two -year phaseout of the $32 Public Safety Registration Fee Hot Issues Occupational Licensing (HB2569) Gov. Doug Ducey signed legislation making Arizona the first state in the country to accept out-of -state occupational licenses. Top policy priority announced in the governor’s State of the State address Texting While Driving (HB2318) On April 22, Arizona became the 48th state to ban texting and the 18th to ban hand-held phone use while driving Delay on citation, violators won't get penalized before January 2021 Peer -to-Peer Regulations Establish a regulatory framework for the P2P car sharing industry Competing bills became a turf battle between the traditional car rental business model v. the industry disruptors (SB1305, HB2559) Issues included: taxation; insurance coverage, public safety concerns, consumer protections, and the ability to conduct business on airport property What Didn’t Happen Digital Goods (SB1460) Established exemptions for SaaS, cloud storage, prewritten software accessed remotely. Large estimated fiscal impact to the state between $33M to $120M Vaping Preemption Raise purchase age to 21 and preempts local regulations on sale and use of tobacco products Competing legislation to regulate vaping products similar to tobacco products also failed HB2005 traffic survival school; required completion HB2027 online lodging marketplace; local taxation HB2109 county transportation excise tax HB2113 diaper changing station HB2672 short term rentals; party houses SB1154 primary date; first August Tuesday SB1231 public safety; residency requirements Key Legislation – SIGNED HB2043 municipal judges; retention election HB2026 public resources; influencing elections HB2115 landlord tenant preemption HB2365 affordable housing tax credits HB2319 repeals HURF sweep authorization HB2536 gas tax increased HB2428 no-water urinals in public buildings HB2587 photo radar ; speed studies SB1285 construction contracts; public works; payment Key Legislation – FAILED 2020 Forecast Education Funding & Reforms Workforce Development Infrastructure Investments New Disruptive Technologies Peer-to-peer Regulatory Framework Affordable Housing Short term Rentals Reforms PSPRS Governance Public Safety Workers Compensation Vaping Regulations Legislative Forecast Arizona economy is performing well and growing while in the midst of implementing significant income and sales tax changes. Current revenue estimates do not assume a recession through 2023. Expect $170 million in available ongoing revenue in FY2021 Projected $475 million for one-time available funds in FY2021 The baseline budget backs out over $100 million in recurring one-time spending from 2020 Source: JLBC Finance Advisory Committee 10/10/19 Fiscal Forecast for FY2021 Options presented by JLBC for one-time spending: SFB Building Repairs Grants $63M University Spending $35M Community College Rural Funding $14M Housing Trust Fund Deposit $15M Local Transportation Funding $18M Source: JLBC Finance Advisory Committee 10/10/19 Fiscal Forecast for FY2021 TRIADVOCATES Julie Rees, Principal Julie@Triadvocates.com Lourdes Peña, Public Affairs Advisor Lourdes@Triadvocates.com