ARIZONA HOUSE OF REPRESENTATIVES
Forty-ninth Legislature – First Regular Session
Minutes of Meeting
House Hearing Room 5 -- 9:00 a.m.
Chairman Reagan called the meeting to order at 9:07 a.m. and attendance was noted by the secretary.
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Ms. Cajero Bedford |
Mr. Konopnicki |
Mr. Hendrix, Vice-Chairman |
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Mr. Campbell CH |
Mr. Meza |
Ms. Reagan, Chairman |
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Mr. Crandall |
Mr. Pratt |
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None |
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Introduction of Members and Staff
Diana O’Dell, House Research Analyst, introduced Committee staff personnel.
Ms. O'Dell explained the adoption of the rules and alerted the Members to a change in amendment deadline, from 4:00 p.m. Tuesdays to 12:00 p.m. (noon) on Tuesdays.
Vice-Chairman Hendrix moved that the rules be adopted. The motion carried.
Appointment of Committee of Reference
Chairman Reagan announced that the Committee of Reference members would be:
Mr. Hendrix, Chairman
Mr. Campbell
Mr. Crandall
Mr. Meza
Ms. Reagan
CONSIDERATION OF BILLS
HB2080 - contractors; payment – HELD
Chairman Reagan announced that HB2080 would be held, and that Vice-Chairman Hendrix will be working on it over the next ten days.
HB2259 - local development fees; procedures - DO PASS
Vice-Chairman Hendrix moved that HB2259 do pass.
Brooke Olguin, Assistant Research Analyst, explained that HB2259 amends the procedures for the implementation of municipal and county development fees, prohibits new municipal development fees for 24 months after final approval of the development and prohibits counties from assessing development fees to schools, except for street, water and sewer utilities improvements (Attachment 1).
Representative Andy Biggs, Sponsor, explained various aspects of the proposed legislation on developers’ impact fees. He answered Members’ questions about what cities have done with impact fees, about the use of fees defined by geography or by purpose, and similarities of this bill to one which was vetoed in the 2008 Legislative Session.
Spencer Kamps, Deputy Director, Homebuilders’ Assoc. of Central Arizona, addressed the Committee in support of HB2259, stating that it had been agreed to by individual cities last year.
He explained that this bill:
- assures that impact fees that are assessed are used in that area
- assures that the fees are based on the cost of infrastructure enumerated in the infrastructure improvement plan (IIP)
- deals with the offset issues from revenue
- deals with the grandfathering issues
Chairman Reagan added that this bill is a starting point to help the homeowners and is not intended to harm the developers.
Stan Barnes, Southern Arizona Home Builders Association, addressed the Committee in support of this legislation. He answered Members’ questions regarding a possible differential impact on the more rural areas, stating that the same principles should apply and should be applied equally.
Courtney Gilstrap Levinus, Arizona Multihousing Association and Arizona Building Owners & Management Association, stated her support for the bill, adding that the original statutes were written in 1988 and must be revised, particularly in the area of development impact fees (Attachment 2).
David Johnson, Intergovernmental Affairs Analyst, Town of Buckeye, opposed the bill, particularly the portions dealing with grandfathering and forecasting. He stated that the developers’ fund is directed to infrastructure.
Mark Young, Intergovernmental Liaison, Town of Queen Creek, testified in opposition to HB2259, and specified that his concerns are in the grandfathering portion.
Rebecca Hecksel, Town of Gilbert, stated that she opposed the legislation last year and stands in opposition to it this year due largely to the impact fee structure. She stressed that development should pay for itself.
Cheyenne Walsh, Legislative Associate, League of Arizona Cities and Towns, testified in opposition to HB2259, stating that her concerns are due to the offset language and the grandfathering language (Attachment 3).
William Stiles, National Association of Industrial and Office Properties (NAIOP), stated his support for the legislation, stating that it clarifies the language and standardizes across cities.
Chairman Reagan inquired if the grandfathering would prevent studies from being conducted; Mr. Stiles replied in the negative.
Mr. Campbell asked who will pay for services rendered if the revenue falls short, stating that this bill will tie the hands of the cities.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
Gibson McKay, Robson Communities
Jeff Sandquist, NAIOP
Sherry Gillespie, Government Relations Manager, Arizona Restaurant Association
Michelle Ahlmer, Executive Director, Arizona Retailers Assoc.
Person(s) recognized by the Chair who signed up in opposition to the legislation but did not speak:
John Schell, Lobbyist, City of Peoria
Bryan Ginter, representing self
Charlie Cassens, ICA Manager, Lake Havasu City
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter
Jerene Watson, Director, Community Initiatives Dept., Town of Oro Valley
Katie Decker, Legislative Liaison, Town of Fountain Hills
Connie Tucker, Management Analyst, City of Prescott
Connie Scoggins, Asst City Attorney, City of Yuma
Steve Moore, City of Yuma
Jacqueline Walker, Intergov, City of Kingman
Karen Peters, Lobbyist, City of Phoenix
Pat Dennis, IGA, City of El Mirage
Shirley Gunther, Government Relations Officer, City of Avondale
Paul Jepson, Assistant to the City Manager, City of Maricopa
Mark Mayer, Designated Lobbyist, Scenic Arizona
Michael Celaya, Intergovernmental Relations Director, City of Surprise
Romina Korkes, Intergovernmental Programs Manager, City of Goodyear
Patrice Kraus, Intergovernmental Affairs Coordinator, City of Chandler
Question was called on the motion that HB2259 do pass. The motion carried by a roll call vote of 7-1-0-0 (Attachment 4).
HB2091 - charitable organizations; solicitations; disclosures - DO PASS
Brooke Olguin, Assistant Research Analyst, explained that HB2091 will require charitable organizations to disclose the percentage of money derived from the sale of donated items as well as the percentage of the items that remain in Arizona to benefit the charity (Attachment 5).
Vice-Chairman Hendrix moved that HB2091 do pass.
Chairman Reagan, Sponsor, explained that she had discovered that in some cases donated items were being sold and only a small portion of the proceeds were returned to the charity selected by the donor.
Stuart Goodman, Goodwill Industries of Central Arizona, stated his support for the bill, which will address the influx of for-profit entities into the charitable market.
Jim Stone, Swift Charities, testified in support of HB2091, explaining that he has seen at least three for-profit companies come into town and use the names of local non-profits.
Jim Holland, Goodwill Industries of Central Arizona, stated his support for the legislation and added that, in these economic times, donating goods is more likely to occur than donating cash. He stated that the state gives up many dollars in tax deductions for these donations, although the donor may not know where his or her donation is actually going.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
Brian Hassett, President, Big Brothers Big Sisters
Marc Ashton, CEO, Foundation for Blind Children
Molly Greene, Lobbyist, Salt River Project
Tim O’Neal, Goodwill Industries of Central Arizona
Tom Finnerty, Society of St. Vincent de Paul
Rob Dalager, representing self
Person(s) recognized by the Chair who signed up in opposition to the legislation but did not speak:
Bryan Ginter, representing self
Question was called on the motion that HB2091 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 6).
HB2043 - corporations and LLC omnibus - DO PASS
Mr. Konopnicki moved that HB2043 do pass.
Diana O’Dell, House Research Analyst, explained that HB2043 makes changes to statutes to conform the regulations for corporations and limited liability companies (Attachment 7).
Mr. Konopnicki, Sponsor, explained that this bill is intended to clean up earlier legislation.
Leah Chacon, Arizona Corporation Commission, testified in favor of HB2043, which will improve consistency among the non-profit, corporation, and LLC statutes.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
John Fearing, Executive Director, Arizona Newspapers Association
Bryan Ginter, representing self
John Moody, Attorney - Jennings Strouss & Salmon PLC, Arizona Newspapers Association
Person(s) recognized by the Chair who signed up as neutral on the legislation but did not speak:
Tom Jones, CEO, Grand Canyon State Electric Cooperative Assn.
Question was called on the motion that HB2043 do pass. The motion carried by a roll call vote of 7-0-0-1 (Attachment 8).
HB2173 - notification; complaint; registrar of contractors - DO PASS
Vice-Chairman Hendrix moved that HB2173 do pass.
Diana O’Dell, House Research Analyst, explained that HB2173 clarifies the timeframe for filing a written complaint with the Arizona Registrar of Contractors (Attachment 9).
Representative Frank Antenori, Sponsor, explained that this bill passed unanimously through this committee last year and is intended to marry up the wording between Title 12 and Title 32, stating that the start of the contract or warranty period is after the close of escrow.
Scot Mussi, Home Builders Association of Central Arizona, testified in favor of HB2173, and added that the Registrar of Contractors is neutral on this legislation.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
Spencer Kamps, Home Builders Association of Central Arizona
Bryan Ginter, representing self
Person(s) recognized by the Chair who signed up as neutral on the legislation but did not speak:
R Mike Michaels, representing self
Question was called on the motion that HB2173 do pass. The motion carried by a roll call vote of 7-0-0-1 (Attachment 10).
HB2240 - rule making; state agencies; moratorium - DO PASS AMENDED
Vice-Chairman Hendrix moved that HB2240 do pass.
Diana O’Dell, House Research Analyst, explained that HB2240 is an Emergency measure placing a moratorium on rule making activity that results in monetary or regulatory cost increases (Attachment 11).
Vice-Chairman Hendrix moved that the fifteen-line Konopnicki amendment dated 2/3/09(Attachment 12) be adopted.
Representative Andy Tobin, Sponsor, explained to the Members that this is a simple moratorium on fees until July of 2010, and is intended to put an end to cost increases.
Mr. Konopnicki suggested that the Committee extend the deadline to 2012 or provide for an automatic renewal.
Mr. Campbell asked for clarification as to what constitutes an "imminent threat" and what will be the impact on the ability of agencies to set fees when that contradicts their oath of office.
Allison Bell, Arizona Chamber of Commerce & Industry, testified in support of the bill, stating that it is time to suspend any new rules until the economy starts to recover. She introduced David Kimball to further address this legislation.
David Kimball, Attorney, Gallagher & Kennedy, solicited questions from the Members. He explained that this bill is intended to be limited in scope and applied to any new rule-making. He addressed questions about pollution and air quality issues, explaining that in some cases the monitoring equipment is at fault. He stated that the meaning of "imminent threat" might not mean "imminent"; discussion ensued.
Marcus Osborn, Arizona Manufacturers Council, spoke in favor of HB2240 and answered Members’ questions about "imminent threat" in health care and exceptions that might apply.
Leah Chacon, Arizona Corporation Commission, testified in opposition to HB2240, because it does not provide an exemption for the Corporation Commission, which she said is recognized as the "fourth branch of government". She stated that this moratorium on rule-making would force the Commission to violate its oath.
Mr. Tobin stated his hope that the Commission would reconsider its opposition. Mr. Crandall took issue with the statement that the Commission is the "fourth branch of government". Mr. Campbell asked about protecting the public exemptions.
Ms. Chacon clarified that the Courts have recognized the Commission as the "fourth branch of government", differentiating it from other state agencies.
Mr. Konopnicki stated his hope that the Commission would respond to this time of economic crisis and voluntarily comply with this legislation.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak: Farrell Quinlan, West Valley Chambers of Commerce Alliance
Bas Aja, Arizona Cattlemen’s Association
Spencer Kamps, Home Builders Association of Central Arizona
Todd Sanders, VP of Public Affairs - Greater Phoenix Chamber of Commerce
Michelle Bolton, National Federation of Independent Business
Charles Bassett, Blue Cross Blue Shield of Arizona
David Maurer, Prescott Chamber of Commerce, Prescott Chamber of Commerce
Paul Parisi, VP Governmental Affairs, Tucson Metropolitan Chamber of Commerce
Michelle Ahlmer, Executive Director, Arizona Retailers Association
Lori+ Lustig, Southern AZ Chamber of Commerce Alliance
Lorna Romero, Arizona Chamber of Commerce & Industry
Kevin McCarthy, President, Arizona Tax Research Association
Mike Williams, Scottsdale Hospitality Group, Distilled Spirit Council of the US
Courtney Gilstrap Levinus, Central Arizona Chamber Coalition
Dale Wiebusch, Legislative Associate, League of Arizona Cities and Towns
Jason Bagley, Government Affairs Manager, Intel Corporation
Lyn White, Manager Government Relations, Freeport McMoRan Copper & Gold
Steve Barclay, Lobbyist, CIGNA HealthCare of Arizona
Philip Bashaw, Arizona Farm Bureau Federation, Arizona Farm Bureau
Rip Wilson, WalMart Stores, Inc, Sunrise Water Co., & TTX Co.
Person(s) recognized by the Chair who signed up in opposition to the legislation but did not speak:
Bryan Ginter, representing self
Seth Apfel, Volunteer, representing self
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter
Mark Mayer, Designated Lobbyist, Scenic Arizona
Question was called on the motion that the fifteen-line Konopnicki amendment dated 2/3/09 (Attachment 12) be adopted. The motion carried.
Vice-Chairman Hendrix moved that HB2240 as amended do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 13).
HB2210 - professional offices; records; protocols - DO PASS
Vice-Chairman Hendrix moved that HB2210 do pass.
Maureen Howell, House Majority Intern, explained that HB2210 establishes requirements for maintaining patient records by business entities that employ certain health professionals (Attachment 14).
Barry Aarons, Lobbyist, Arizona Association of Chiropractic, addressed the Committee in support of the legislation, explaining that last year’s bill addressed the dental profession’s need, and this bill will address the needs of the chiropractic profession.
Elaine Letarte, Arizona Osteopathic Board, stated her opposition to the bill, explaining that she has two concerns:
1 - the requirements for records are not the same as for an individual professional licensee
2 - dental professionals are all regulated by the same Board, whereas osteopathic professionals are regulated by a variety of Boards.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
Bryan Ginter, representing self
Susie Stevens, Lobbyist, Arizona Psychological Association & Arizona Physical Therapy Association
Kristin Greene, Associate Director, Arizona Board of Chiropractic Examiners
Person(s) recognized by the Chair who signed up as neutral on the legislation but did not speak:
C Springer, AZ Homeopathic/Integrated Medicine Examiners
Question was called on the motion that HB2210 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 15).
HB2290 - health spa contracts; military members - DO PASS
Vice-Chairman Hendrix moved that HB2290 do pass.
Maureen Howell, House Majority Intern, explained that HB2290 allows an active duty member of the U.S. military or the member’s legally designated representative to cancel or suspend a health spa contract within 90 days of receiving notice of active duty deployment outside of Arizona (Attachment 16).
Representative Ed Ableser, Sponsor, explained that this bill failed last year, but that he is trying again to allow military personnel to cancel a contract due to deployment.
Person(s) recognized by the Chair who signed up in support of the legislation but did not speak:
Bryan Ginter, representing self
Andrew Carlson, Arizona Department of Emergency and Military Affairs
Edward Flinn, Director, Arizona Department of Emergency and Military Affairs
Question was called on the motion that HB2290 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 17).
Without objection, the meeting adjourned at 11:43 a.m.
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___________________________________ Jane Dooley, Committee Secretary February 11, 2009 |
(Original minutes, attachments and audio on file in the Chief Clerk’s Office: video archives available at http://www.azleg.gov).
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COMMITTEE ON COMMERCE
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February 4, 2009
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