LEGISLATIVE UPDATE outages caused by recent storms produced a business focus on reliability of electricity. These bills attempt to modernize Arizona deregulation statutes, prevent selective customer acquisition, add consumer protections, and ensure reliability of the grid.
AAED’s legislative round-up
WORKFORCE DEVELOPMENT (HB 2122) Workforce challenges impact every industry. This bill would establish a continuing high school and workforce training program within the Arizona Department of Education to provide adult learners with alternative study services that lead to the issuance of a high school diploma and industryrecognized credentials.
DEVELOPER UNCERTAINTY (SB 1241) Inappropriate use of incentives for property development or business locates, violate the Gift Clause of the Arizona Constitution. However, incentives may be used if there is a public benefit. This bill reduces the amount of time someone can bring a lawsuit against a government entity for an alleged violation of the Gift Clause. The net effect will provide certainty for developers once a government approves the agreement.
T
he Arizona Legislature gaveled into session the second week of January. As lawmakers reach the informal halfway point in the session, the Arizona Association for Economic Development continues work on several bills that impact economic development, including:
ARTS COMMISSION CONTINUATION (HB 2051)
I-10 WIDENING (SB 1239) The section of I-10 between Casa Grande and Phoenix is only two lanes in each direction. This stretch of I-10 is not only dangerous but also impedes the efficient movement of goods and people between Arizona’s largest cities. This bill, a likely budget item, appropriates $400 million for the widening of one of Arizona’s key commerce corridors.
MARICOPA TRANSPORTATION PLAN (HB 2598/SB 1356) In 2005, Maricopa County voters reauthorized a half-cent sales tax for roads, highways, and transit in the Phoenix metro area. The plan and tax sunset in 2025. These bills would allow the county to put an extension of the tax and a new regional transportation plan on the ballot for voters to consider again. 22 | March-April 2022
Carrie Kelly AAED
BUSINESS PROPERTY TAX REDUCTION (SB 1093) Arizona property taxes on business are higher when compared to surrounding states. This places Arizona at a competitive disadvantage for business locates. This bill would reduce the Class 1 (commercial) property assessment ratio from 16.0% in 2025 to 15.5% in 2026 and 15.0% in 2027. This reduction continues the downward assessment ratio momentum passed in last year’s budget.
ELECTRIC RELIABILITY (HB 2101/SB 1048) While the Texas power grid is unique compared to the rest of the nation,
The Arizona Arts Commission provides a vital service to the state of Arizona. There is a flow of federal and state dollars to the largest cities and the smallest towns through grants from the commission. The commission provides a central point of contact for artists and the creative industry in Arizona, and they catalyze economic vitality through developing statewide and local strategies to support the arts and cultural sectors in Arizona. Over the last five years, the state invested $2.8 million, and the creative industries in Arizona contributed $10.87 billion to Arizona’s economy in 2019. This bill would provide funding to the Commission and allow them to continue their work. Carrie Kelly is the executive director of the Arizona Association for Economic Development.
