End of Session Report ARIZONA PEST PROFESSIONALS ORGANIZATION

Transcription

1 2014 End of Session Report ARIZONA PEST PROFESSIONALS ORGANIZATION Prepared by: Capitol Consulting, LLC 818 N. 1 st Street Phoenix, AZ

2 P a g e 2 EXECUTIVE SUMMARY Dear AZPPO Members: Sine Die! On April 24, 2014, the 51st Arizona Legislature adjourned sine die at 1:46 AM after 101 days in session. By rule a session can last 100 days with provisions in place for extending it. As you recall, those provisions were put to the test last year with the uncomfortably long 151-day session. The 51st Legislature, 2nd Regular Session officially commenced January 13, A total of 1,205 bills were introduced by the legislature and of those, 276 have been signed by Governor Janice K. Brewer. The session began as usual with the governor announcing policy priorities for the year during the State of the State address. The governor s priorities were perhaps met with a little more attentiveness from the legislature after a rocky end to the 2013 session. As you may recall part of the Governor s ambitious 2013 agenda meant crossing political boundaries at the expense of the most conservative within the state s GOP. In 2013, the governor muscled her way to pass the Medicaid expansion. After weeks of stalled budget negotiations, the Governor called a Special Legislative Session in an effort to bypass House and Senate leadership and call Medicaid to question. The move sparked rumors of a legislative coup and drove a wedge straight through the Republican caucus, dividing the moderate and conservative members. During her final State of the State address in January, Governor Brewer focused on two priorities including a complete overhaul of the state s defunct child protective services and a proposal to create new incentives for manufactures to set up shop in Arizona. In December Governor Brewer formed the Child Advocate Response Examination Team or CARE Team to provide oversight for the investigation of the 6,554 uninvestigated child abuse cases and to examine the Arizona Child Protective Services (CPS) system to identify areas of concern. Following their recommendation, Governor Brewer, through an Executive Order, abolished CPS, removed it from the Department of Economic Security and replaced it with a stand-alone Cabinet-level agency that reports directly to her. In order to make the new agency permanent, the governor also requested that the legislature pass necessary statutory changes. Those changes were not passed and the legislature only funded $59 million of the $80 million that Governor Brewer requested for the agency. However the legislature did include language in the budget package that essentially committed to revisiting the issue, most likely in a Special Legislative Session once the CARE Team releases its next set of recommendations sometime in May. As far as her other policy priority that issue was met with a little less resistance. The Governor signed SB1413, a bill that eliminates sales tax on electricity purchased by manufacturers and smelting facilities. Though Governor Brewer insists the incentive is pivotal in attracting new manufacturers and retaining those already operating in Arizona, it is estimated that the incentive will cost the state around $17 million This year AZPPO chose to take more of a defensive posture as compared to last year s legislative agenda. As you recall, AZPPO was the impetus in passing SB1290, the bill that provided for the permanent transfer of

3 P a g e 3 administrative authority from the Office of Pest Management to the Arizona Department of Agriculture and made various changes to the pest management statutes. Since the statutory overhaul, the Department of Agriculture has been in the process of a rules update in order to implement the new law. It s typical after such a comprehensive statutory change that clean-up legislation is needed in order to clarify or make technical changes. We will have a better sense of those potential changes (if at all needed) once the rules are implemented. Two bills were introduced this year that would have had a direct impact on AZPPO members. HB2596 introduced by Representative Michelle Ugenti (R-Scottsdale), would have allowed a homeowner to choose to have the business licensee or certified applicator complete a termite action report form. Representative Ugenti indicated that the bill was the result of her home being treated for termites and subsequently appearing in the on-line report. Rep. Ugenti believed that the online reporting impacts home values and is not necessary for anyone who is not in the process of selling their home. The bill was ultimately amended via a strike-everything amendment, thus eliminating the proposal, in the House Government Committee. HB2437 (public committees; repeal; sunset) was signed by the governor on April 24, and will take effect on July 24, The bill repeals inactive statutory committees and provides sunset dates for active committees. Prior to the start of Session, legislative staff compiled a list of statutory committees that were inactive either because the committee fulfilled its statutory duty, the committee had membership vacancies or the committee had redundant duties. Initially the bill included the repeal of the Pest Management Advisory Board; however, we successfully amended the bill in the Senate Government and Environment Committee to preserve the Board Included in this report are legislative proposals that AZPPO monitored and engaged-in over the course of the Session and subsequent actions. Please do not hesitate to contact me with any questions you may have on this year s session or any of the AZPPO s government affairs programs. Very truly yours, Courtney LeVinus President Capitol Consulting, LLC

4 P a g e 4 CONTENTS EXECUTIVE SUMMARY... 2 CONTENTS... 4 LEGISLATIVE ST LEGISLATURE, 2 ND REGULAR SESSION... 5 Leadership... 5 Senate Members... 6 House of Representatives Members... 6 Statistics... 8 Session Highlights... 9 FY2015 STATE BUDGET... 9 CHAPTERED LEGISLATION HB2389: Transaction privilege tax changes HB2437: Public committees; repeal; sunset SB1108: Department of agriculture; fees SB1160: Registrar of contractors; discipline grounds FAILED LEGISLATION HB2596: Office of pest management; reports... 13

5 P a g e 5 LEGISLATIVE 51 ST LEGISLATURE, 2 ND REGULAR SESSION LEADERSHIP EXECUTIVE Janice K. Brewer SENATE PRESIDENT MAJORITY LEADER MAJORITY WHIP PRESIDENT PRO TEMPORE MINORITY LEADER MINORITY WHIP ASSISTANT MINORITY LEADER Senator Andy Biggs (R-Gilbert) Senator John McComish (R-Phoenix) Senator Adam Driggs (R-Phoenix) Senator Gail Griffin (R-Hereford) Senator Anna Tovar (D-Tolleson) Senator Steve Gallardo (D-Phoenix) Senator Lynne Pancrazi (D-Yuma) HOUSE OF REPRESENTATIVES SPEAKER OF THE HOUSE MAJORITY LEADER: MAJORITY WHIP SPEAKER PRO TEMPORE MINORITY LEADER MINORITY WHIP ASSISTANT MINORITY LEADER Representative Andrew Tobin (R-Paulden) Representative David Gowan (R-Sierra Vista) Representative Rick Gray (R-Sun City) Representative Javon J.D. Mesnard (R-Chandler) Representative Chad Campbell (D-Phoenix) Representative Eric Meyer (D-Phoenix) Representative Bruce Wheeler (D-Tucson)

6 P a g e 6 SENATE MEMBERS REPUBLICANS Senator, District, Residence, Occupation Steve Pierce, 1, Prescott, Rancher Kelli Ward, 5, Lake Havasu City, Physician Chester Crandell, 6, Heber, Rancher Al Melvin, 11, Tucson, Consultant Andy Biggs, 12, Gilbert, Attorney Don Shooter, 13, Yuma, Developer Gail Griffin, 14, Hereford, Real Estate Broker Nancy Barto, 15, Phoenix, Homemaker David Farnsworth, 16, Mesa, Steve Yarbrough, 17, Chandler, Attorney John McComish, 18, Ahwatukee, Senator Kimberly Yee, 20, Phoenix, Small business owner Rick Murphy, 21, Glendale, Realtor Judy Burges, 22, Sun City West, Retired Michele Reagan, 23, Scottsdale, Small business owner Bob Worsley, 25, Mesa, Small business owner Adam Driggs, 28, Phoenix, Attorney DEMOCRATS Senator, District, Residence, Occupation Andrea Dalessandro, 2, Sahuarita, Retired teacher, CPA Olivia Cajero Bedford, 3, Tucson, Senator Lynne Pancrazi, 4, Yuma, Teacher Carlyle Begay, 7, Ganado Barbara McGuire, 8, Kearny, School board member Steve Farley, 9, Tucson, Small business owner David Bradley, 10, Tucson, Health Care Administrator Anna Tovar, 19, Tolleson, Teacher Katie Hobbs, 24, Phoenix, Social Worker Ed Ableser, 26, Tempe, Mental health family counselor Leah Landrum Taylor, 27, Phoenix, Business owner Steve Gallardo, 29, Phoenix, Political consultant Robert Meza, 30, Phoenix, Business Development HOUSE OF REPRESENTATIVES MEMBERS REPUBLICANS Representative, District, Residence, Occupation Karen Fann, 1, Prescott, Small business owner Andy Tobin, 1, Paulden, Insurance Sonny Borrelli, 5, Lake Havasu City, Marine (ret.) Doris Goodale, 5, Kingman, Small business owner Brenda Barton, 6, Payson, Retired Bob Thorpe, 6, Flagstaff, Construction Frank Pratt, 8, Casa Grande, Small business owner T.J. Shope, 8, Coolidge, Shope's IGA Supermarket Ethan Orr, 9, Tucson, Executive Director DEMOCRATS Representative, District, Residence, Occupation Demion Clinco, 2, Tucson, CEO, Frontier Consulting Rosanna Gabaldón, 2, Sahuarita, Representative Sally Ann Gonzales, 3, Tucson, Program Director Macario Saldate IV, 3, Tucson, Professor Juan Carlos Escamilla, 4, San Luis, Marketing Lisa Otondo, 4, Yuma, Realtor Albert Hale, 7, St. Michaels, Attorney Jamescita Peshlakai, 7, Cameron, Nonprofit Victoria Steele, 9, Tucson, Licensed Counselor

7 P a g e 7 Adam Kwasman, 11, Oro Valley, Financial Consultant Steve Smith, 11, Maricopa, Talent Agency Director Eddie Farnsworth, 12, Gilbert, Executive Director Warren Petersen, 12, Gilbert, Real Estate Darin Mitchell, 13, Litchfield Park, Business owner Steve Montenegro, 13, Avondale, Representative David M. Gowan Sr., 14, Sierra Vista, Representative David W. Stevens, 14, Sierra Vista, Information Tech John Allen, 15, Scottsdale, Self-employed Heather Carter, 15, Cave Creek, Professor Doug Coleman, 16, Apache Junction, Educator Kelly Townsend, 16, Mesa, Doula coordinator Thomas Forese, 17, Gilbert, Director Javan "J.D." Mesnard, 17, Chandler, Professor Jeff Dial, 18, Chandler, Executive VP Bob Robson, 18, Chandler, Insurance Paul Boyer, 20, Phoenix, Professor Carl Seel, 20, Phoenix, Small business owner Rick Gray, 21, Sun City, Small business owner Debbie Lesko, 21, Peoria, Representative David Livingston, 22, Peoria, Financial Advisor Phil Lovas, 22, Peoria, Hotel Consultant John Kavanagh, 23, Fountain Hills, Retired Michelle Ugenti, 23, Scottsdale, Realtor Justin Olson, 25, Mesa, Tax analyst Justin Pierce, 25, Mesa, Attorney Kate Brophy McGee, 28, Phoenix, Representative Stefanie Mach, 10, Tucson, CEO, CM Concordia Bruce Wheeler, 10, Tucson, Energy Management Mark A. Cardenas, 19, Phoenix, Accountant Lupe Chavira Contreras, 19, Cashion, Law Lela Alston, 24, Phoenix, Teacher Chad Campbell, 24, Phoenix, Consultant Juan Mendez, 26, Tempe, Community Voice Mail Andrew Sherwood, 26, Tempe, Animal Trainer Catherine H. Miranda, 27, Phoenix, School board Norma A. Muñoz, 27, Phoenix, School board member Eric Meyer, 28, Paradise Valley, Physician Lydia Hernández, 29, Phoenix, School board member Martín J. Quezada, 29, Phoenix, Attorney Jonathan Larkin, 30, Glendale, Pharmacy Tech Debbie McCune Davis, 30, Phoenix, Program Director

8 P a g e 8 STATISTICS NUMBER OF REPUBLICAN SENATE MEMBERS: 17 NUMBER OF DEMOCRATIC SENATE MEMBERS: 13 NUMBER OF REPUBLICAN HOUSE MEMBERS: 36 NUMBER OF DEMOCRATIC HOUSE MEMBERS: 24 FIRST REGULAR SESSION START DATE: January 13, 2014 FIRST REGULAR SESSION SINE DIE (END): LENGTH OF REGULAR SESSION: April 24, 2014, 1:46 AM 101 days BILLS INTRODUCED: 1,205 BILLS PASSED BY THE LEGISLATURE: BILLS SIGNED BY THE GOVERNOR: BILLS VETOED BY THE GOVERNOR: 303 (25% of the total introduced) 276 (91% of the total passed by the Legislature) 24 (8% of the total passed) RESOLUTIONS INTRODUCED: 113 RESOLUTIONS PASSED: 34 (30% of the total introduced) GENERAL EFFECTIVE DATE: July 24, 2014 (unless enacted with emergency clause or alternative date)

9 P a g e 9 SESSION HIGHLIGHTS Defeated HB2596 that would have allowed homeowners to choose whether or not a licensee or certified applicator completes a termite action report form. Amended HB2437 to remove the provision to repeal the Pest Management Advisory Board. FY2015 STATE BUDGET Governor Jan Brewer signed the $9.23 billion FY2015 State Budget in April, signaling a spending increase from the $8.8 billion FY2014 budget. The legislature did not include the entire appropriation that Governor Brewer had requested for child welfare, but they did include budget language that essentially committed the legislature (via a Special Session) to revisit more funding once the child safety reform working group completes its process. The process is expected to wrap-up in May. In order to preserve the those necessary resources, Governor Brewer exercised her line-item veto power cutting approximately $4.7 million for law enforcement in Colorado City, certain teacher training, public technical high schools, a northern Arizona airstrip and funding for the state s ombudsman. The ombudsman is an independent arm of the legislature that investigates allegations involving state agencies. Governor Brewer did suggest that the ombudsman could be revisited during the special session. Initially the budget negotiations hit a roadblock with the House and Senate at odds over appropriations for several departments including the child protective services, university and district charter school funding. The two chambers reached a budget compromise after forming a conference committee consisting of members of both parties and both chambers. The deal essentially split the $35 - $54 million spending difference between the House and Senate proposals. Democrats opposed the compromise after seeking additional spending for FY2015. FY2015 BUDGET EXPENDITURES Expenditures FY2015 Budget Change from FY2014 Department of Administration $32,469,600 $20,775,300 ADOA Automation Projects Fund $35,500,000 $17,100,000 AHCCCS $1,274,393,500 $(60,539,900) Attorney General $23,464,600 $1,000,000 Commerce Authority $31,800,000 $300,000 Community Colleges $71,979,300 $2,470,600 Department of Corrections $996,912,200 $25,168,300 County Funding $7,650,500 $500,000 Department of Economic Security $791,646,600 $101,533,700 Department of Education $3,799,388,100 $178,556,900 Department of Environmental Quality $7,000,000 $7,000,000 Department of Health Services $613,163,100 $62,516,700 Judiciary $110,377,000 $536,000

10 P a g e 10 Department of Juvenile Corrections $43,822,700 $43,822,700 State Land Department $12,515,700 $170,300 Department of Public Safety $89,321,400 $37,760,600 Public Safety Personnel Retirement System $5,000,000 $5,000,000 Department of Revenue $48,125,300 $1,100,000 School Facilities Board $189,357,800 $(3,823,600) Office of Tourism $9,102,600 $2,000,000 Universities $766,669,000 $31,151,700 Department of Water Resources $13,326,400 $1,000,000 All Other Budgets $169,271,100 $11,106,600 Civic Center Payment $20,449,000 $20,449,000 Asset Sale/Lease-Back Debt Service $84,123,700 $3,900 Lease-Purchase/Rent $(192,500) $(192,500) Retirement Adjustment $409,100 $409,100 **Source: Joint Legislative Budget Committee. CHAPTERED LEGISLATION HB2389: TRANSACTION PRIVILEGE TAX CHANGES SPONSOR(S): Rep. Debbie Lesko (R-Peoria) AZPPO POSITION: Support SUMMARY: Makes changes to statutes governing transaction privilege tax (TPT) in order to implement recent TPT legislation. Licensing Amends provisions so that the state administers all TPT licensing processes: o requires a person engaging or continuing in business to annually apply for a license; o stipulates a license is valid for only the calendar year in which it is issued; o requires licenses to be renewed January 1. Maintains the current $12 TPT licensing fee and stipulates that there is no fee for license renewal. Sets the municipal TPT licensing fee at up to $50 and renewal fee at up to $50. Contracting Imposes a penalty of up to $25 for failure to timely renew a municipal TPT license. Provides that a taxpayer who operates in multiple locations or under multiple names must obtain a TPT and municipal TPT license for each location. Provides that a taxpayer who operates in multiple locations or under multiple names and files a consolidated tax return is required to pay only one municipal TPT renewal fee for each jurisdiction. Provides that a taxpayer who operates in multiple locations or under multiple names and does not file a consolidated tax return is required to pay a license renewal fee for each location in each jurisdiction.

11 P a g e 11 Revises language pertaining to TPT exemption certificates required for certain contractors. Changes the contractor exemption provision from a deduction to an exemption. Administration Allows DOR to accept credit cards for all payments, not just tax payments. Repeals A.R.S , the municipal TPT refund statute, and provides procedures to address refund requests related to returns filed prior to January 1, Allows for e-signatures on all returns, statements, and other filed tax documents regardless of whether the document complies with current electronic and digital signature statutory requirements. Requires a taxpayer who operates in multiple locations or under multiple names to e-file tax returns. Provides that hearings under the Model City Tax Code for non-program cities relating to liabilities established before January 1, 2015 must be heard by the municipal hearing office. Requires DOR, as of October 1, 2014, to mail a single notice to each license holder that includes all license renewals for TPT and municipal TPT. HB2437: PUBLIC COMMITTEES; REPEAL; SUNSET SPONSOR(S): Rep. David Gowan (R-Sierra Vista) AZPPO POSITION: Neutral SUMMARY: Repeals inactive statutory committees, provides sunset dates for active committees and makes various changes to active statutory committees. Statutory Committees; Repeal Repeals the following statutory committees: o State Commission on Civic Education and Civic Engagement o State Agency Fee Commission o Joint Legislative Oversight Committee on Residual Contamination of Drug Properties o Community Notifications Guidelines Committee o Probate Advisory Panel o Task Force for Retraining Disabled Military Veterans o Child Support Committee o Domestic Relations Committee o Joint Legislative Committee on Adoption Promotion o Performance Based Incentives Oversight Committee o Joint Legislative Committee on Transportation between Sonora, Mexico and Arizona o Joint Legislative Committee on Federal Mandates o Arizona Aerospace and Defense Commission o Commission on Privatization, Efficiency and Competition o Joint Legislative Committee on K-12 School District Receivership o Arizona Housing Commission Statutory Committees; Sunset Dates

12 P a g e 12 Provides sunset dates for the following statutory committees: o Data Governance Commission: July 1, 2020 o State Emergency Council: July 1, 2021 o School Bus Advisory Council: July 1, 2024 o Regional Planning Agency Transportation Policy Committee: July 1, 2024 o Multistate Highway Transportation Agreement Cooperating Committee: July 1, 2019 o Debt Oversight Commission: July 1, 2026 o Joint Committee on Capital Review: July 1, 2026 o Joint Legislative Audit Committee: July 1, 2018 o Legislative Government Mall Commission: July 1, 2025 o Rural Business Development Advisory Council: July 1, 2021 o Arizona Peace Officers Memorial Board: July 1, 2019 o Senior Advisory Committee: July 1, 2019 o Joint Legislative Income Tax Credit Review Committee: July 1, 2022 o Oversight Council on Driving or Operating under the Influence Abatement: July 1, o Arizona s participation in the Education Commission of the States: July 1, o Compliance Advisory Panel: July 1, 2017 o Tobacco Revenue Use Spending and Tracking Commission: July 1, 2021 o Joint Border Security Advisory Committee: July 1, 2020 NOTES: The bill initially included the repeal of the Pest Management Advisory Board. However we successfully amended the bill in the Senate Committee of the Whole to remove this provision and thus preserving the Board. SB1108: DEPARTMENT OF AGRICULTURE; FEES SPONSOR(S): Sen. Don Shooter (R-Yuma) AZPPO POSITION: No position SUMMARY: States that notwithstanding any other law, the Director of the Arizona Department of Agriculture (AZDA), with the assistance of AZDA Advisory Council, may increase or decrease the pesticide registration fee established in statute until June 30, Requires any additional revenue generated by increasing the fee to be deposited in the Pesticide Trust Fund. Specifies that the fee may not be reduced below $100. Exempts AZDA from rulemaking requirements for the purpose of increasing or decreasing fees pursuant to this Act until July 1, SB1160: REGISTRAR OF CONTRACTORS; DISCIPLINE GROUNDS SPONSOR(S): Sen. Gail Griffin (R-Hereford), Sen. David Farnsworth (R-Mesa) AZPPO POSITION: No position SUMMARY: Requires the Registrar to temporarily suspend or permanently revoke a license upon notice by the Department of Revenue that a licensee s tax related debt has become final and that person neglects to pay or refuses to pay the tax debt.

13 P a g e 13 FAILED LEGISLATION HB2596: OFFICE OF PEST MANAGEMENT; REPORTS SPONSOR(S): Rep. Michelle Ugenti (R-Scottsdale) AZPPO POSITION: Oppose SUMMARY: Allows a person who requests pretreatment, new-construction treatment, final grade treatment, initial corrective treatment or a wood-destroying insect inspection report to request the business licensee or certified applicator to complete a termite action report form. NOTES: Representative Ugenti indicated that the bill was the result of her home being treated for termites and subsequently appearing in the on-line report. Rep. Ugenti believes that the online reporting impacts home values and is not necessary for anyone who is not in the process of selling their home. The bill was ultimately amended via a strike-everything amendment in the House Government Committee.