ARIZONA HOUSE OF REPRESENTATIVES
Forty-ninth Legislature – First Regular Session
Minutes of Meeting
House Hearing Room 1 -- 2:00 p.m.
Chairman Murphy called the meeting to order at 2:05 p.m. and attendance was noted by the secretary.
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Mr. Biggs |
Mr. Farley |
Mrs. Lesko, Vice-Chairman |
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Mr. Brown |
Ms. Reagan |
Mr. Murphy, Chairman |
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Mr. Chabin |
Mr. Yarbrough |
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None |
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HB2011 – DP (7-1-0-0) HB2368 – DP (8-0-0-0) HB2371 – DPA S/E (8-0-0-0) HB2372 – HELD |
HB2540 – DP (8-0-0-0) HB2583 – DPA S/E (7-0-0-1) HB2584 – DISCUSSED & HELD HCR2027 – DP (5-3-0-0) |
CONSIDERATION OF BILLS
HCR2027 - county expenditure limitation; population estimate – DO PASS
Vice-Chairman Lesko moved that HCR2027 do pass.
Matt Stone, Majority Research Intern, explained that HCR2027 will allow a county with a population of less than 175,000 to use an alternative population estimate for purposes of determining their expenditure limit (Attachment 1). The population estimate will include one-half of the number of persons who own second homes within the county that are not their primary residences.
Representative Nancy McLain, Sponsor, stated that she would have some individuals present testify for HCR2027 and that this bill is important to certain areas of Arizona, some of which are in her district.
Michael Townsend, Deputy County Manager, Coconino County, in support of HCR2027, stated that the primary driver for services for a local government is the increase in population, but the second homeowner population is not included even though it has an impact on the need for more services in Coconino County like snow removal, road maintenance, health services and law enforcement. This bill allows for the inclusion of these second homeowners in their population count. When asked why the voters are not asked to raise the expenditure limit, Mr. Townsend replied that the county does not want to use that authority but rather follow the intent of the original law.
In answer to a question from Mr. Yarbrough, Mr. Townsend responded that the County is trying to get some capacity at the local level to meet the expenditure limit.
Mr. Chabin asked if this bill would increase the tax cut. Mr. Townsend confirmed that it would not. Mr. Chabin stated that this bill could improve door-to-door services, will not increase taxes and could be expanded to include other counties.
Chairman Murphy announced the names of those who singed up in support of HCR2027 but did not speak:
Craig Sullivan, County Supervisors Association
Joanne Keene, Government Relations Director, Coconino County
Question was called on the motion that HCR2027 do pass. The motion carried by a roll call vote of 5-3-0-0 (Attachment 2).
HB2540 - tax assessment of retention basins – DO PASS
Vice-Chairman Lesko moved that HB2540 do pass.
Matt Stone, Majority Research Intern, stated that HB2540 will provide that all water retention basins for commercial and industrial areas will be valued at $500 per parcel (Attachment 3) and would also:
Mr. Biggs, Sponsor, stated that he is working with the Maricopa County Assessor, Keith Russell, to draw up language that meets everybody’s needs.
Chairman Murphy announced the names of those who signed up in support of HB2540 but did not speak:
Keith Russell, Maricopa County Assessor
Paul Petersen, Attorney/Assessor Representative, Maricopa County Assessor
Question was called on the motion that HB2540 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 4).
HB2583 - excess property tax payments; repayment – DPA S/E
Vice-Chairman Lesko moved that HB2583 do pass.
Vice-Chairman Lesko moved that the Murphy two-page strike-everything amendment dated 2/26/09 (Attachment 5) be adopted.
Kitty Decker, Majority Research Analyst, explained that the proposed Murphy two-page strike-everything amendment dated 2/26/09 (Attachment 5) to HB2583 (Attachment 6) permits a taxing jurisdiction of up to ten years to pay its proportional amount owed due to a judgment awarded to a taxpayer, if the amount exceeds $500,000. The bill contains an emergency clause.
Sheila Breen, Superintendent, Grand Canyon Unified School District, testified in support of the Murphy strike-everything amendment to HB2583. She stated that the School District is not disputing the amount owed but rather asking for more time to pay owed taxes.
Greg Bryan, representing self, in support of the Murphy strike-everything amendment, stated that he was a business owner in Tusayan and that significant judgments impact the businesses and the taxes that they have to pay, and he would appreciate being able to pay them over a number of years.
Vice-Chairman Lesko announced the names of those who signed up in support of HB2583 but did not speak:
Kevin DeMenna, Grand Canyon Unified School District
Clarinda Vail, representing self
John Thurston, representing self
Julie Forsythe, representing self
Bess Foster, representing self
Becky Shearer, representing self
Chris Thurston, representing self
Jennifer Thurston, representing self
Joanne Keene, Government Relations Director, Coconino County
Ryan DeMenna, Grand Canyon Unified School District
Craig Sullivan, County Supervisors Association
Question was called on the motion that the Murphy two-page strike-everything amendment dated 2/26/09 (Attachment 5) be adopted. The motion carried.
Vice-Chairman Lesko moved that HB2583 as amended do pass. The motion carried by a roll call vote of 7-0-0-1 (Attachment 7).
HB2584 - national park support districts II – DISCUSSED & HELD
Vice-Chairman Lesko moved that HB2584 do pass.
Vice-Chairman Lesko moved that the Murphy six-line amendment dated 02/26/09 (Attachment 8) be adopted.
Kitty Decker, Majority Research Analyst, explained that HB2584 (Attachment 9) will eliminate the incorporation requirements for the community of Tusayan and instead authorize the establishment of a national park support district that is located within 10 miles of a national park or monument. She added that the Murphy six-line amendment dated 02/26/09 (Attachment 8) makes technical and conforming changes.
Kevin DeMenna, Tusayan Taxpayer's Alliance/Association, testified in support of HB2584, giving a brief history of the community’s efforts to become incorporated. He reviewed the Tusayan, Arizona – Gateway to Grand Canyon National Park Map/Handout (Attachment 10), explaining that there are approximately 17,000 people that pass through Tusayan every day. He suggested that this community no longer suffer without adequate infrastructure. This bill repeals the 500 person threshold for incorporation and allows the citizens to petition and then vote to create a sales tax district of up to 1,500 acres. The money earned from these taxes would be governed by an appointed board and distributed by grants to school districts, fire districts and, in the future, a hospital district. This legislation does not include zoning, police force or eminent domain. It will generate revenue and allow the citizens of Tusayan to improve their community.
Clarinda Vail, President, Grand Canyon Unified School District, testified in support of HB2584, stating that it will allow a sales tax to benefit school, fire, sanitary and other districts. This will help the taxpayers and the districts they pay into, as well as help solve the loss of funding problems. Tusayan is too small to incorporate but the National Park Service Support District, with a simple tax, makes much more sense than all the infrastructure needed for an incorporated town. This bill supports Coconino County, Grand Canyon, Tusayan and millions of tourists that pass through this community. She added that she wanted to correct Mr. DeMenna in advising the Committee that Tusayan has a Grand Canyon Community Health Center run by Northway Community Health in Grand Canyon.
Chris Thurston, representing self, in support of HB2584, stated that this bill will allow funding for school parks and water storage improvements, for example, without the overhead that incorporation would impose. Due to the small size of the community, the potential for conflicts of interest for board members, knowing that their jobs could be dependent on how they vote, raises issues.
Kathy Senseman, Corporate Public Affairs, Stilo, against HB2584 and the Murphy strike-everything amendment, testified that this is a local problem that demands community input and process to determine the correct vested interest. This bill is about benefitting a few landowners, two of which are opposed to the bill as written. The bill leaves out conflict of interest language regarding a board member having direct or indirect financial interest in decisions that are made. She suggested that the Auditor General participate in the auditing rather than a self-audit as this legislation suggests. She passed out a copy of a flyer “Watch Your Backs, Here Comes the Tax” (Attachment 11) that was funded by the same people who are supporting HB2584 today. These people opposed a single incorporation election six months ago because they said it would add taxes to the community. Now this same group is asking the legislature for a special taxing district that will potentially create the highest taxing community in the state.
Kevin McCarthy, President, Arizona Tax Research Association, in opposition to HB2584, stated that one of the Association’s biggest concerns is how difficult it is to comply with the sales tax in Arizona. There needs to be caution in determining how many people get to use the sales tax and in determining where local control starts and stops. Too often businesses pay the wrong jurisdictions or they do not pay enough taxes. Many areas of the state would rather tax tourists coming through their towns or tax the interstate highways. The passing of this bill will have many more entities, such as school districts and fire districts, asking for the same structure.
Elling Halvorson, representing self, against HB2584, testified that Tusayan is a very special community where residents who lose their jobs, lose their homes. He stated that the tax side of this bill is not good and that he believes the local people should govern themselves.
Al Montoya, Tusayan resident, representing self, against HB2584, stated that he believes this bill would hurt the community more than it would help it. This bill would only benefit a few individuals, the same individuals who make the policies and determinations for the community right now, not to benefit the community but to suit their own gain. He said that he wants to be able to talk to elected officials who actually live in Tusayan. If this bill passes, this company-owned town will never have the opportunity to be responsible for its own destiny.
Greg Bryan, Tusayan resident, representing self, testified against HB2584, stating that this bill takes away this community’s right to decide if or how it wants to grow. The proponents of this bill do not represent the general community of Tusayan but a small vested interest.
Jay Heiler, Tusayan Taxpayers Alliance, testified in favor of HB2584, explaining that this is a very small unique community located on the South rim of the Grand Canyon, Arizona’s single greatest tourism asset. He said that the question before the Legislature is: what is the best way to get to a resolution? He urged the Committee to keep the bill alive and look at what is really at stake. There is nothing constructive about maintaining the status quo.
Vice-Chairman Lesko announced the names of those who signed up in opposition to HB2584 but did not speak:
Clayann Cook, representing self
John Rueter, representing self
Sheryl Strobeck, representing self
Ron Ober, Grand Canyon Exchange
Doug Cole, Lobbyist, Elling Halvorson
Todd Baughman, Grand Canyon Exchange
Steve Voeller, President, Arizona Free Enterprise Club
Tom De Paolo, representing self
John Rueter, representing self
Vice-Chairman Lesko announced the names of those who signed up in support of HB2584 but did not speak:
John Thurston, representing self
Sheila Breen, Superintendent, Grand Canyon Unified School District
Julie Forsythe, representing self
Bess Foster, representing self
Michael Haener, Director of Legislative Affairs, Tusayan Taxpayers Association
Becky Shearer, representing self
Jennifer Thurston, representing self
Ryan DeMenna, Tusayan Taxpayer Association
Chairman Murphy announced that he would hold HB2584 at the Sponsor’s request.
Vice-Chairman Lesko withdrew the motion to adopt the Murphy six-line amendment dated 02/26/09 (Attachment 8).
Vice-Chairman Lesko withdrew the motion that HB2584 do pass.
HB2011 - provisional community college districts; bonding – DO PASS
Vice-Chairman Lesko moved that HB2011 do pass.
Kitty Decker, Majority Research Analyst, summarized HB2011, stating that it allows a provisional community college district to issue bonds, subject to voter approval, for capital outlay purposes. She explained that it would stipulate that the total amount of bonds issued cannot exceed an unspecified percent of the taxable property in the county where the provisional community college district is located (Attachment 12).
Mike Gardner, Gila Community College, testified in support of HB2011, stating that this provisional college is highly successful and running out of room. This request would allow the college to continue to operate in an efficient manner and construct buildings to continue to educate the growing student population.
Chairman Murphy announced the names of those who signed up in support of HB2011 but did not speak:
Mark Barnes, Arizona Community College Presidents' Council
Chairman Murphy announced the names of those who signed up in opposition to HB2011 but did not speak:
Margaret White, Administrator, Advisory Council on Developmental Disabilities, Serving Maricopa County
Question was called on the motion that HB2011 do pass. The motion carried by a roll call vote of 7-1-0-0 (Attachment 13).
HB2371 - tax credit; coal consumption – DO PASS AMENDED S/E
S/E: utilities; confidential information
Vice-Chairman Lesko moved that HB2371 do pass.
Vice-Chairman Lesko moved that the Murphy eight-page strike-everything amendment dated 02/25/09 (Attachment 14) be adopted.
Matt Stone, Majority Research Intern, explained that the Murphy strike-everything amendment to HB2371 (Attachment 15) allows the Department of Revenue to provide names and addresses of qualifying hospitals and healthcare organizations that are exempt from transaction privilege tax under the utility classification.
Penny Allee Taylor, Specialist/Government Affairs, Southwest Gas, stated that she is in favor of the Murphy strike-everything amendment to HB2371. She said it is straight forward and will save time and effort for the Department of Revenue, the utility company and the health care organization. It improves the process.
Vice-Chairman Lesko announced the names of those who signed up in support of HB2371 but did not speak:
Russell Smoldon, Lobbyist, Salt River Project
Laurie Lange Liles, Senior Vice President, Public Affairs, Arizona Hospital and Healthcare Association
Jennifer Schuldt, Senior Research Analyst, Arizona Tax Research Association
Gabriel Rushing, Public Affairs & Economic Development Representative, Greater Phoenix Chamber of Commerce
Question was called on the motion that the Murphy eight-page strike-everything amendment dated 02/25/09 (Attachment 14) be adopted. The motion carried.
Vice-Chairman Lesko moved that HB2371 as amended do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 16).
HB2368 - property valuation; equalization calendar – DO PASS
Chairman Murphy announced that the Murphy five-page strike-everything amendment to the bill, will not be heard.
Vice-Chairman Lesko moved that HB2368 do pass.
Kitty Decker, Majority Research Analyst, explained that HB2368 provides more time for the County Assessor to submit values to the Department of Revenue (DOR) for equalization reviews (Attachment 17).
Chairman Murphy stated that HB2368 was originally introduced to him by the DOR to help the County Assessor’s Office. Mrs. Lesko asked if this bill was opposed by the Maricopa County Assessor’s Office. Chairman Murphy said that DOR has some concerns but they would be addressed before the bill went to Committee of the Whole.
Question was called on the motion that HB2368 do pass. The motion carried by a roll call vote of 8-0-0-0 (Attachment 18).
HB2372 - tax credit; pollution control equipment – HELD
Chairman Murphy announced that HB2372 would be held.
Without objection, the meeting adjourned at 3:30 p.m.
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Sarah Griffith, Committee Secretary
March 23, 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 WAYS AND MEANS
2
March 2, 2009
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