ARIZONA HOUSE OF REPRESENTATIVES
Fiftieth Legislature – Second Regular Session
Minutes of Meeting
House Hearing Room 1 -- 2:00 p.m.
Chairman Harper called the meeting to order at 2:41 p.m. and attendance was noted by the secretary.
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Mr. Chabin |
Mr. Gray R |
Mr. Olson |
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Mr. Farley |
Mrs. Lesko |
Mr. Vogt, Vice-Chairman |
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Mr. Gallego |
Mr. Mesnard |
Mr. Harper, Chairman |
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None |
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HB2151 – DP (9-0-0-0) |
HB2626 – DPA (6-3-0-0) |
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HB2177 – DISCUSSED AND HELD |
HB2651 – DP (9-0-0-0) |
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HB2178 – DISCUSSED AND HELD |
HB2702 – DP (8-1-0-0) |
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HB2335 – HELD |
HB2727 – DP (8-0-0-1) |
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HB2388 – DP (9-0-0-0) |
HCR2043 – DP (6-3-0-0) |
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HB2404 – DISCUSSED AND HELD |
SB1045 – DP (9-0-0-0) |
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HB2445 – DISCUSSED AND HELD |
SB1046 – DP (8-0-0-1) |
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HB2466 – DISCUSSED AND HELD |
SB1047 – DPA S/E (6-3-0-0) |
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HB2469 – DPA (7-2-0-0) |
SB1048 – DPA S/E (7-2-0-0) |
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HB2583 – HELD |
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CONSIDERATION OF BILLS
HB2335 - renewable energy equipment; valuation – HELD
Chairman Harper announced that HB2335 will be held.
HB2151 - voluntary classification settlement program – DO PASS
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HB2151 establishes the Voluntary Classification Settlement Program within the Arizona Department of Revenue (DOR) (Attachment 1).
Representative Tom Forese, sponsor, explained the background of the legislation which addresses Internal Revenue Service (IRS) issues of independent contractors and will make it easier for small businesses to operate. He stated that HB2150 is a companion bill to HB2151. He addressed questions from Mr. Gray and Mr. Farley about persons currently under investigation.
Farrell Quinlan, State Director, National Federation of Independent Business, stated his support for HB2151. He explained that, if someone is under audit, he or she cannot apply for this program.
Sean Laux, Legislative Liaison, Department of Revenue (DOR), stated his neutrality on HB2151. He answered Mr. Farley’s inquiry if this will bring in more revenue as taxpayers come forward, by clarifying that this bill will affect withholding. He added that DOR has a voluntary disclosure program, but that probably no additional revenue will be realized; there is a cost for DOR to run this program. He addressed a question from Mr. Chabin, stating that he could not say if this will enhance compliance by taxpayers.
Representative Forese reiterated that he is willing to work with DOR to resolve any issues and that this bill is intended to focus on small businesses.
Chairman Harper announced the names of those who signed up in support of HB2151 but did not speak:
Katie Whitchurch, Arizona Chamber of Commerce and Industry
Chairman Harper announced the names of those who signed up in opposition to HB2151 but did not speak:
Seth Apfel, representing self
Vice-Chairman Vogt moved that HB2151 do pass. The motion carried by a roll call vote of 9-0-0-0 (Attachment 2).
HB2445 - state capitol restoration; recapture districts – DISCUSSED AND HELD
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HB2445 establishes a tax increment financing plan for the formation of Economic Recapture Districts and State Capitol restoration using state transaction privilege tax (TPT) revenues and creates the State Capitol Centennial Restoration Trust Fund with monies deposited from increased TPT revenues generated from newly established Economic Recapture Districts (Attachment 3).
Representative David Gowan, sponsor, explained that this legislation will recapture funds from other regions of the state. He cited the example of buying back the Arizona Capitol buildings. He stressed that this is not a TIF (tax increment financing).
Barry Aarons, Lobbyist, Tucson Convention and Visitors Bureau, testified in support of HB2445 which will develop the tourism industry; he described the example of Yuma’s Welcome Center.
Chairman Harper announced the names of those who signed up in support of HB2445 but did not speak:
Rene Guillen, Legislative Associate, League of Arizona Cities and Towns
Brett Jones, Director of Government Affairs, Arizona Contractors Association (AZCA)
Chairman Harper announced the names of those who signed up in opposition to HB2445 but did not speak:
Steve Voeller, President, Arizona Free Enterprise Club
Seth Apfel, representing self
Kevin McCarthy, President, Arizona Tax Research Association
Chairman Harper announced the names of those who signed up as neutral on HB2445 but did not speak:
Sean Laux, Legislative Liaison, Department of Revenue
Chairman Harper announced that HB2445 will be held.
HCR2043 - tax increases; ballots; vote requirement – DO PASS
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HCR2043 proposes a constitutional amendment, subject to voter approval, to require that any ballot initiative, referendum or constitutional amendment providing for certain taxing authority receive a two-thirds affirmative vote in order to be enacted (Attachment 4).
Representative David Stevens, sponsor, assured the Members that he will strike the retroactivity clause in the bill. He addressed Mr. Farley’s question about the two-thirds vote, explaining that it would be two-thirds of the voters, not the electors and said he will correct that with an amendment.
Eric Emmert, East Valley Chambers of Commerce Alliance, stated his opposition to the bill, but stated that his objection was to the retroactivity, which will apparently be removed.
Todd Madeksza, Director of Legislative Affairs, The County Supervisors Association, testified in opposition to HCR2043. He stated that, in his opinion, this is a bad idea even with the proposed amendments.
Chairman Harper announced the names of those who signed up in opposition to HCR2043 but did not speak:
Tiffany Arenas, representing self
Cynthia Weiss, representing self
Seth Apfel, representing self
Charles Essigs, Government Relations, Arizona Association of School Business Officials
Janice Palmer, Governmental Relations Analyst, Arizona School Boards Association
Tom Finnerty, representing self
Lana Mook, Mayor, City of El Mirage
Chad Heinrich, Government Relations Coordinator, City of Tempe
Sandy Bahr, Conservation Director, Sierra Club - Grand Canyon Chapter
Martin Quezada, representing self
Jennifer Loredo, Arizona Education Association
Vice-Chairman Vogt moved that HCR2043 do pass. The motion carried by a roll call vote of 6-3-0-0 (Attachment 5).
SB1047 - tax credit; school tuition organizations – DO PASS AMENDED S/E
S/E: school tuition organizations; credits; administration
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that the Harper 34-page strike-everything amendment to SB1047 (Attachment 6) incorporates administrative and qualifying changes relating to the individual and corporate income tax credit programs for contributions made to qualifying school tuition organizations (STOs) (Attachment 7).
Mr. Chabin asked what the total effect on the General Fund will be; Mr. Gonzalez-Plumhoff replied that it will be $4 million.
Senator Rick Murphy, sponsor, explained that this bill provides administrative fixes for STOs and will alleviate the waiting lists that currently exist of students and families who wish to participate in the benefits of the STOs.
Mr. Chabin asked if this will benefit students in public or private schools. Senator Murphy replied that the new money will be available to students switching from public to private schools; the waiting list keeps students in public schools. Discussion ensued regarding corporate funds, income limits for families who wish to participate, and testing of STO students.
Mr. Farley expressed concern that ten percent of the STO monies are going for overhead, that testing requirements are being changed, and that the fingerprint requirement for teachers and staff is being removed. Senator Murphy explained the reasons for these changes.
Chairman Harper announced the names of those who signed up in support of SB1047 but did not speak:
Deborah Sheasby, Legal Counsel, Center for Arizona Policy
Ron Johnson, Arizona Catholic Conference
Sydney Hay, American Federation for Children
Jonathan Butcher, representing self
Victor Contreras, Hispanic Council for Reform and Opportunity
Chairman Harper announced the names of those who signed up in opposition to SB1047 but did not speak:
Mike Waters, representing self
Jerry Spreitzer, Arizona Federation of Teachers
Tiffany Arenas, representing self
Karen McClelland, representing self
Seth Apfel, representing self
Charles Essigs, Government Relations, Arizona Association of School Business Officials
Janice Palmer, Governmental Relations Analyst, Arizona School Boards Association
Sam Polito, Tucson Area School Districts
Serah Blain, Secular Coalition for Arizona
Anjali Abraham, Public Policy Director, American Civil Liberties Union of Arizona
Ed Casper, representing self
Jennifer Loredo, Arizona Education Association
Christina Martinez, United States Hispanic Leadership Institute, stated her support for SB1047 and her appreciation that it will increase educational options for students.
Vice-Chairman Vogt moved that SB1047 do pass.
Vice-Chairman Vogt moved that the Harper 34-page strike-everything amendment to SB1047 dated 2/2/12 (Attachment 6) be adopted. The motion carried.
Vice-Chairman Vogt moved that SB1047 as amended do pass. The motion carried by a roll call vote of 6-3-0-0 (Attachment 8).
HB2404 - voluntary additional school tax payments – DISCUSSED AND HELD
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HB2404 establishes individual and corporate income tax credits for property owners who elect to make voluntary payments in addition to the taxes levied by their respective school districts (Attachment 9).
Representative David Stevens, sponsor, explained that this legislation will have no fiscal impact on the school districts or the General Fund. He clarified the intent of the legislation.
Mr. Farley asked if this unfairly advantages districts in which the properties are worth more and thus interferes with the equalization effort. Representative Stevens answered in the negative, explaining that this does apply only to property owners but there is no impact on state revenue.
Chairman Harper announced the names of those who signed up in opposition to HB2404 but did not speak:
Seth Apfel, representing self
Chairman Harper announced the names of those who signed up as neutral on HB2404 but did not speak:
Sean Laux, Legislative Liaison, Department of Revenue
Chairman Harper announced that HB2404 will be held.
HB2626 - empowerment scholarship accounts; expansion – DO PASS AMENDED
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HB2626 expands eligibility for the Arizona Empowerment Scholarship Accounts program (Attachment 10).
Mr. Gonzalez-Plumhoff explained that the Lesko three-page amendment (Attachment 11) addresses curriculum, other criteria, and fund distribution.
Mrs. Lesko, sponsor, explained that this will expand the number of students who are eligible for the scholarships.
Christina Martinez, United States Hispanic Leadership Institute, spoke in favor of HB2626.
Victor Contreras, representing self, stated his support for the legislation and for the school choice movement. He stated his appreciation for the options for education that are provided.
Darita Pfeister, representing self, spoke in favor of HB2626, informing the Members that she has a son with disabilities who does not qualify for funds. Mrs. Lesko reiterated that school choice helps these students.
Chairman Harper announced the names of those who signed up in support of HB2626 but did not speak:
Deborah Sheasby, Legal Counsel, Center for Arizona Policy
Sydney Hay, American Federation for Children
Tim Keller, Executive Director, Institute for Justice
Deb Gullett, A Plus Arizona
Sarah Raybon, Arizona School Choice Trust
Ron Johnson, Arizona Catholic Conference
Chairman Harper announced the names of those who signed up in opposition to HB2626 but did not speak:
Jerry Spreitzer, Arizona Federation of Teachers
Mike Waters, representing self
Karen McClelland, representing self
Cynthia Weiss, representing self
Seth Apfel, representing self
Charles Essigs, Government Relations, Arizona Association of School Business Officials
Janice Palmer, Governmental Relations Analyst, Arizona School Boards Association
Martin Quezada, representing self
Sam Polito, Tucson Area School Districts
Serah Blain, Secular Coalition for Arizona
Jim Delton, representing self
Anjali Abraham, Public Policy Director, American Civil Liberties Union of Arizona
Ed Casper, representing self
Jennifer Loredo, Arizona Education Association
Chairman Harper announced the names of those who signed up as neutral on HB2626 but did not speak:
Jonathan Butcher, representing self
Carol Shippy, Arizona Families for Home Education
Staci Burk, Gilbert Unified School District
Chris Kotterman, Government Relations, Arizona Department of Education
Staci Burk, representing self
Mrs. Lesko moved that HB2626 do pass.
Mrs. Lesko moved that the Lesko three-page amendment dated 02/02/2012 (Attachment 11) be adopted. The motion carried.
Mrs. Lesko moved that HB2626 as amended do pass. The motion carried by a roll call vote of 6-3-0-0 (Attachment 12).
HB2727 - public school tax refund checkoff – DO PASS
Stuart Luther, House Majority Intern, explained that HB2727 allows a taxpayer to voluntarily contribute any amount of their individual income tax refund for state aid to public schools (Attachment 13).
Representative Heather Carter, sponsor, explained that HB2727 will allow taxpayers to contribute to state aid to public schools.
Vice-Chairman Vogt moved that HB2727 do pass. The motion carried by a roll call vote of 8-0-0-1 (Attachment 14).
SB1048 - school tuition organizations; credits; administration – DO PASS AMENDED S/E
S/E: elections; omnibus
Magdalena Jorquez,
House Majority Research Analyst, Judiciary Committee, explained that the Harper
eight-page strike-everything amendment to SB1048 (Attachment 15) is an
emergency measure that makes changes to the form and content of election
ballots and specifies criteria for the filing of nominating papers and
petitions for legislative and congressional candidates for elections in 2012
(Attachment 16). She explained that the listing of the Presidential and
Vice-Presidential candidates will be placed after the electors on the ballot.
Chairman Harper explained that
this is an addition to a bill last year which added the
Vice-Presidential candidates’ names on Arizona’s ballots.
Jen Sweeney, Government
Affairs Director, Arizona Association of Counties, appeared as neutral on
SB1048, explaining that she has concerns about the ballot formatting: whether
the names will be, in relation to the columns of electors, "directly
centered", "to the left", or
"next to".
Mr. Farley asked why the electors’ names are on the ballot in the first place. Ms. Sweeney stated that her agency has tried to get the names removed. Chairman Harper commented that the language is a work in progress among the Secretary of State, the County Supervisors, various elections departments and the Governor.
Chairman Harper announced the names of those who signed up in opposition to HB2727 but did not speak:
Karen Osborne, Maricopa County Elections
Seth Apfel, representing self
Charles Essigs, Arizona Association of School Business Officials
Janice Palmer, Governmental Relations Analyst, Arizona School Boards Association
Helen Purcell, Maricopa County Recorder
Anjali Abraham, Public Policy Director, American Civil Liberties Union of Arizona
Chairman Harper announced the names of those who signed up in support of HB2727 but did not speak:
Deborah Sheasby, Legal Counsel, Center for Arizona Policy
Vice-Chairman Vogt moved that SB1048 do pass.
Vice-Chairman Vogt moved that the Harper eight-page strike-everything amendment to SB1048 dated 2/2/12 (Attachment 15) be adopted. The motion carried.
Vice-Chairman Vogt moved that SB1048 as amended do pass. The motion carried by a roll call vote of 7-2-0-0 (Attachment 17).
HB2388 - college savings plans; tax subtraction - DO PASS
TJ Drogaris, House Majority Intern, explained that HB2388 extends the Arizona tax benefits for a college savings plan for five years (Attachment 18).
Chairman Harper announced the names of those who signed up in support of HB2388 but did not speak:
Norman Moore, Independent College and Universities of Arizona, University of Phoenix
Christine Thompson, Arizona Board of Regents
Don Isaacson, Independent Colleges and Universities of Arizona
Katie Whitchurch, Arizona Chamber of Commerce and Industry
Gregory Harris, representing self
John Mangum, Arizona Private School Association
Vice-Chairman Vogt moved that HB2388 do pass. The motion carried by a roll call vote of 9-0-0-0 (Attachment 19).
HB2177 - technical correction; energy standards – DISCUSSED AND HELD – S/E
S/E: in rem lawsuits; property tax
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that the Harper 25-line strike-everything amendment to HB2177 (Attachment 20) allows property owners whose real property is the subject of an action in rem (against or about a thing) to petition the applicable taxing jurisdiction to waive the taxes due, pending the resolution of ownership (Attachment 21).
Representative Jeff Dial, sponsor, explained that an owner does not have the use of property when the government is tying up the property for any reason. He stated that this bill will allow the owner to waive taxes during this period.
James Mayhew, representing self, testified in support of HB2177. He explained that 24 years ago he purchased property on the Colorado River which the government held up for an accretion issue (when a body of water moves, resulting in a gain or loss of the owned land). He has been unable to lease or sell the land for all of these years, yet is responsible for property taxes on the land.
Mr. Mayhew addressed Members’ questions:
· the property is vacant but adjacent owners downstream have been able to build successfully
· there are no court costs outstanding because the title company has backed up his position
Jen Sweeney, Government Affairs Director, Arizona Association of Counties, testified as neutral on HB2177. She explained that 6 of 54 owners in this lawsuit owe past due base taxes which, without penalties or interest, total $258,800. She stated that Mohave County is working to find a solution that will benefit all parties involved, which may include giving a rebate to those who have already paid their taxes. She reminded the Members of the ad valorem system, which states that taxes must be paid regardless of the prevailing market; penalties and interest can be abated by the government, but the base tax amount typically cannot. She addressed Members’ questions, stressing the importance of making this language very narrow so that large property owners cannot just shut down property in order to waive taxes owed.
Chairman Harper announced the names of those who signed up in support of HB2177 but did not speak:
Seth Apfel, representing self
Chairman Harper announced that HB2177 will be held.
HB2178 - technical correction; prepaid legal insurance – DISCUSSED AND HELD – S/E
S/E: property taxes; refund; forgiveness
Representative Jeff Dial, sponsor, stated that this bill is specific to Mr. Mayhew’s situation (explained in HB2177 above).
James Mayhew, representing self, stated his support for HB2178, explaining that those of the 54 property owners (explained in HB2177 above) who paid taxes are small property owners who have lived there for 60 years or more, some of whom have died since the litigation began.
Chairman Harper announced the names of those who signed up in support of HB2178 but did not speak:
Seth Apfel, representing self
Chairman Harper announced that HB2178 will be held.
HB2702 - sanitary districts; projects; revenues – DO PASS
TJ Drogaris, House Majority Intern, explained that HB2702 stipulates how a Sanitary District may obligate its revenues and allows certain Districts to enter into and perform a financial assistance loan repayment agreement without voter approval (Attachment 22).
Mrs. Lesko asked if this will need voter approval; Mr. Drogaris answered in the affirmative.
Representative Russ Jones, appearing for Representative Nancy McLain, sponsor, explained that this bill will affect parts of La Paz County and will allow sanitary districts to do what water districts already have authority to do.
JR Pooler, District Manager, Buckskin Sanitary District, spoke in favor of HB2702, explaining that Buckskin Sanitary District has no way to raise revenue for badly-needed infrastructure. He explained that the Arizona Department of Environmental Quality (ADEQ) regulates his District and has assigned it to eliminate septic tanks along the Colorado River in La Paz County. He explained that the cost of the infrastructure will be assessed back to property owners who benefit from the improvements. Discussion ensued.
In response to a question from Mr. Olson, Representative Jones stated that this bill will contain an emergency clause for an effective date of July 2012.
Chairman Harper announced the names of those who signed up in support of HB2702 but did not speak:
Mark Reader, Stone & Youngberg
Jay Ziemann, Assistant Director, Arizona State Parks Board
Vice-Chairman Vogt moved that HB2702 do pass. The motion carried by a roll call vote of 8-1-0-0 (Attachment 23).
SB1046 - corporate tax allocation; sales factor – DO PASS
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that SB1046 allows multistate service providers to elect to base in-state sales on market sales, rather than the state where the income-producing activity occurred (Attachment 24).
Senator Rick Murphy, sponsor, informed the Members that SB1046 will phase in over a few years and will mesh with other tax policy changes implemented last year.
Matt Beckler, Apollo Group Inc., expressed his support for SB1046.
Chairman Harper stated that tax policy must comply with Prop 108; once policy is enacted by a simple majority, it takes a two-thirds vote to repeal it.
Chairman Harper announced the names of those who signed up in support of SB1046 but did not speak:
Rip Wilson, Apollo Group Inc.
Kevin McCarthy, President, Arizona Tax Research Association
Michelle Bolton, Greater Phoenix Chamber of Commerce
Marcus Dell'Artino, Apollo Group Inc.
Gretchen Conger, Government Relations, Arizona Chamber of Commerce and Industry
Rob Dalager, representing self
Russell Smoldon, Salt River Project
Susan Anable, Government Relations, Cox Communications
Ellen Poole, representing self
Eric Emmert, Arizona Association for Economic Development
Tom Dorn, East Valley Chambers of Commerce Alliance
Ken Quartemain, Arizona Technology Council
Vice-Chairman Vogt moved that SB1046 do pass. The motion carried by a roll call vote of 8-0-0-1 (Attachment 25).
HB2651 - road enhancement improvement districts – DO PASS
TJ Drogaris, House Majority Intern, explained that HB2651 allows an alternative form of government for Road Enhancement Improvement Districts (Attachment 26).
Todd Madeksza, Director of Legislative Affairs, County Supervisors Association, stated his support for HB2651, explaining that it will allow neighborhoods to elect a board to clean up their area. He addressed Mr. Gray’s question about a population designation, explaining that this is not a big district in Yavapai County, but a population designation could be worked out.
Mr. Chabin asked if these will be neighborhoods; Mr. Madeksza replied that these are neighborhoods, not vast tracts of undeveloped land.
Chairman Harper announced the names of those who signed up in support of HB2651 but did not speak:
Jen Sweeney, Government Affairs Director, Arizona Association of Counties
Tom Dorn, Lobbyist, Arizona Planning Association
Vice-Chairman Vogt moved that HB2651 do pass. The motion carried by a roll call vote of 9-0-0-0 (Attachment 27).
SB1045 - tax correction act; 2012 – DO PASS
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that SB1045 corrects errors, obsolete language and blending problems within Arizona Revised Statutes which govern state tax laws (Attachment 28).
Senator Steve Yarbrough, sponsor, explained that this is an annual bill to correct tax statutes.
Chairman Harper announced the names of those who signed up in support of SB1045 but did not speak:
Sean Laux, Legislative Liaison, Department of Revenue
Michelle Bolton, Greater Phoenix Chamber of Commerce
Jen Sweeney, Government Affairs Director, Arizona Association of Counties
Chairman Harper announced the names of those who signed up as neutral on SB1045 but did not speak:
Seth Apfel, representing self
John Mangum, Altria Group Inc.
Vice-Chairman Vogt moved that SB1045 do pass. The motion carried by a roll call vote of 9-0-0-0 (Attachment 29).
THE MEETING RECESSED AT 5:46 P.M. TO THE SOUND OF THE GAVEL.
THE MEETING RECONVENED AT 6:01 P.M. All Members were present.
HB2466 - local sales tax; payments; DOR – DISCUSSED AND HELD – S/E
S/E: payments; local sales tax
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that the Gray two-page strike-everything amendment to HB2466 (Attachment 30) creates an online portal for taxpayers to pay municipal transaction privilege tax (TPT) and affiliated use taxes (Attachment 31). He added that the online portal will be maintained by the Department of Administration (DOA).
Vice-Chairman Vogt inquired about the choice of DOA to maintain the website, rather than the Department of Revenue (DOR).
Mr. Gray, sponsor, explained that DOR does not have the technology and infrastructure to do the task. He stressed that a DOA online portal will simplify the process that business owners and vendors must follow to file their TPTs.
Chairman Harper asked if the portal will be procured by competitive bid; he added that Service Arizona was not put out to bid. Mr. Gray stated that he wants a competitive bidding process and will add language to clarify.
Tom Belshe, Deputy Director, League of Arizona Cities and Towns, stated his support for HB2466, which will provide one interface for businesses filing multiple TPTs from multiple cities.
Sean Laux, Legislative Liaison, Department of Revenue, appeared as neutral. He informed the Members that this affects non-program cities and that state TPT and program cities TPT will still have to be filed using the current method.
Chairman Harper announced the names of those who signed up in support of HB2466 but did not speak:
Farrell Quinlan, State Director, National Federation of Independent Business
Chad Heinrich, Government Relations Coordinator, City of Tempe
Courtney Gilstrap LeVinus, Arizona Multihousing Association
Donna Davis, Arizona Small Business Association
Lee Miller, Lobbyist, Arizona Small Business Association
Chairman Harper announced that HB2466 will be held.
HB2469 - revenue allocation districts – DO PASS AMENDED
Daniel Gonzalez-Plumhoff, House Majority Research Analyst, explained that HB2469 authorizes the creation of a new special taxing district, referred to as a Revenue Allocation District, to fund economic development-related projects within the boundaries of the municipality in which it resides from incremental increases in property and transaction privilege taxes (TPT) over fixed base amounts (Attachment 32).
Mr. Gonzalez-Plumhoff explained that the Gray two-page amendment (Attachment 33) adds clarifying language relating to a district’s formation.
Mr. Gray, sponsor, stressed that this bill is a public/private partnership bill for cities.
Michelle Rider, WESTMARC, testified in support of HB2469, explaining that a mechanism is needed to plan and finance infrastructure that is needed for quality projects, rather than relying on developers who will develop an area however they wish.
Eric Emmert, East Valley Chambers of Commerce Alliance, stated his support for this legislation that will provide an economic development mechanism.
Steve Kemp, City Attorney, City of Peoria, testified in support of HB2469, stating that it is designed to address the concerns of the Legislature and to assist cities in economic development. In response to Mrs. Lesko’s question, Mr. Kemp cited the instance of when infrastructure may not be appropriate for a semiconductor company or a medical building, or when the city wants to put an office building on an area that previously was a parking lot.
Chairman Harper announced the names of those who signed up in support of HB2469 but did not speak:
Nick Simonetta, Government Affairs Consultant, City of Peoria
Richard Hubbard, Valley Partnership
Chad Heinrich, Government Relations Coordinator, City of Tempe
Rene Guillen, Legislative Associate, League of Arizona Cities and Towns
Mary Ann Miller, Tempe Chamber of Commerce
Deanna Kupcik, Buckeye Valley Chamber of Commerce
Mike Dvorak, Peoria Chamber of Commerce
Brett Jones, Arizona Contractors Association (AZCA)
Joseph Brehm, Management Intern, City of Prescott
Scott Butler, City of Mesa
Heather Bernacki, Arizona Association for Economic Development
Tom Dorn, Arizona Planning Association
Patrice Kraus, Intergovernmental Affairs Coordinator, City of Chandler
Michael Celaya, Intergovernmental Relations Director, City of Surprise
Brent Stoddard, Director of Intergovernmental Programs, City of Glendale
Joe Galli, Flagstaff Chamber of Commerce
Shirley Gunther, Intergovernmental Affairs Manager, City of Avondale
Chairman Harper announced the names of those who signed up as neutral on HB2469 but did not speak:
Sean Laux, Legislative Liaison, Department of Revenue
Vice-Chairman Vogt moved that HB2469 do pass.
Vice-Chairman Vogt moved that the Gray two-page amendment dated 1/31/12 (Attachment 33) be adopted. The motion carried.
Vice-Chairman Vogt moved that HB2469 as amended do pass. The motion carried by a roll call vote of 7-2-0-0 (Attachment 34).
HB2583 - tax credit; teachers; school supplies - HELD
Chairman Harper announced that HB2583 will be held.
Without objection, the meeting adjourned at 6:32 p.m.
__________________________________________
Jane Dooley, Committee Secretary
February 23, 2012
(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)
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COMMITTEE ON WAYS AND MEANS
14
February 6, 2012
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