Legislative Bill Monitoring
53rd Legislature - 2nd Regular Session, 2018 Thursday, Jul 19 2018 7:49 PM

BILL NUMBER/
SHORT TITLE
CUSTOM
SUMMARY
SPONSORS POSTED HEARINGS
& CALENDARS
LAST ACTION
H2002:
AUTOMOBILE THEFT AUTHORITY; APPROP  

Summary: The bill would allow the Automobile Theft Authority to retain the monies in its fund instead of being subject to legislative appropriation (i.e. swept).

League Position: SUPPORT - The League supports the Automobile Theft Authority’s mission of reducing auto theft and its grant program which provides funding to local police departments for equipment such as automated license plate readers.

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First sponsor: Rep. Livingston   5/16
VETOED message.
H2097 (Chapter 112):
PENSION FUNDING POLICIES; EMPLOYERS  

Summary: This bill will require every municipality in the Public Safety Personnel Retirement System (PSPRS) to establish an annual funding policy for paying off unfunded liability debt. The bill would also require the municipality to post this policy on their website.

League Position: SUPPORT - The League supports this bill because cities typically have some form of written or unwritten policy or strategy on how they are handling their pension debt and it would be reasonable public policy to notify the public of those strategies.

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First sponsor: Rep. Livingston   4/3
signed by governor. Chap. 112, Laws 2018.
H2116:
LIMITATIONS OF ACTIONS; DEDICATED PROPERTY  

Summary: This bill will limit a developer’s liability on a project that received a permit from a city or town to eight years from the date of substantial completion.

League Position: OPPOSE - This bill could subject cities and towns to liabilities they did not cause or have any control over for projects that receive a permit.

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First sponsor: Rep. Kern   2/27
referred to Senate jud.
H2126 (Chapter 231):
GOVERNMENT PROPERTY; ABATEMENT; SLUM; BLIGHT  

Summary: HB 2126 requires a municipality to reduce the size of their Central Business District to 2.5% of their total land area by September 1, 2018 and to review any area within its boundaries that has been designated as slum and blighted for over ten years and to renew or terminate the designation within one year of the effective date of the bill. Makes numerous other changes to the GPLET statutes. 

League Position: OPPOSE

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First sponsor: Rep. Leach   4/17
signed by governor. Chap. 231, Laws 2018.
H2166 (Chapter 265):
VEHICLE FEES: ALTERNATIVE FUEL VLT  

Summary: Would establish a new vehicle registration fee that would go entirely toward fully funding the Department of Public Safety. The fee would be set by the Director of the Arizona Department of Transportation and be paid at the time of registration just like VLT.

League Position: SUPPORT

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First sponsor: Rep. Campbell   4/25
signed by governor. Chap. 265, Laws 2018
H2182:
CAMPAIGN FINANCE; CANDIDATE COMMITTEE; TRANSFERS  

Summary: This bill allows a candidate committee for a municipal candidate to transfer contributions to that same candidate's committee for a statewide or legislative office.

League Position: SUPPORT - This is a League Resolution.

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First sponsor: Rep. Coleman   3/26
from Senate jud do pass.
H2207:
PUBLIC MEETINGS; AUDIOVISUAL RECORDINGS; POSTING  

Summary: This bill will require every meeting of a public body to be recorded using audiovisual equipment, posted online no later than five business days after the meeting and be retained on the public body’s website for five years. 

League Position: NEUTRAL - An amendment was adopted to the bill that makes this requirement not applicable to cities and towns. 

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First sponsor: Rep. Grantham   4/20
VETOED message.
H2208:
PROHIBITION; PHOTO RADAR  

Summary: Prohibits municipalities from using photo radar enforcement. 

League Position: OPPOSE

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First sponsor: Rep. Grantham   3/21
withdrawn from Senate trans-tech and further referred to Senate appro.
H2273:
PUBLIC EMPLOYEES; COMPENSATION CAP  

Summary: This bill limits the amount a public entity can pay an employee to two times the salary and benefits of the governor or eight times the salary and benefits of an elected official, whichever is lesser. 

League Position: OPPOSE - The League opposes this bill because it would present an impediment to competitiveness when hiring the best talent for executive level positions like City Manager, City Planner, General Counsel, etc.

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First sponsor: Rep. Thorpe   2/7
from House fed-policy with amend #4105.
H2313 (Chapter 237):
SENTENCING; MONETARY OBLIGATIONS; FINE MITIGATION  

Summary: Judges are authorized to mitigate a fine that is not mandatory if the defendant demonstrates that the payment would work a hardship on the defendant or the defendant's immediate family. Additional changes related to surcharges, fines, etc.

League Position: SUPPORT - The League supports this change to state law that would give municipal judges more flexibility when setting and collecting fines. This approach has been shown to increase compliance and decrease unnecessary court proceedings.

First sponsor: Rep. E. Farnsworth   4/17
signed by governor. Chap. 237, Laws 2018.
H2325:
COUNTIES; MUNICIPAL LAND ACQUISITION; REPEAL  

Summary: This bill repeals the requirement that land located in a city or town that is proposed to be sold to a county must be a part of a management agreement between the city and county. 

League Position: OPPOSE

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First sponsor: Rep. Thorpe   2/7
from House local-intl do pass.
H2334 (Chapter 240):
LIQUOR OMNIBUS  

Summary: The liquor omnibus is an annual, sometimes biennial, bill that makes changes to Title 4 (alcoholic beverages) of Arizona Revised Statute, proposed by the beer, wine and liquor associations and vetted by the Arizona Department of Liquor License and Control, as well as the League and other stakeholders. The vast majority of the provisions deal with industry issues that have no significant impact on municipalities or our residents but some provisions that impact licensing and public safety are of particular interest to our members.

The League has been working collaboratively with the other liquor omnibus stakeholders to ensure that cities/towns retain their ability to protect their residents and quality of life and we are currently discussing further amendments to the bill to address municipal concerns. If you have specific questions about the bill or would like more information please contact Alex Vidal (e-mail).

League Position: NEUTRAL - The League is neutral on the bill while we work to ensure it does not negatively impact public safety or our members’ authority. However, this year’s the liquor omnibus includes a League Resolution to allow city/town clerks to approve special event licenses. If our concerns are fully addressed, we may ultimately sign in supporting the bill.

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First sponsor: Rep. Weninger   4/17
signed by governor. Chap. 240, Laws 2018.
H2371 (Chapter 286):
MOBILE FOOD VENDORS; STATE LICENSURE  

Summary: The bill establishes a state licensing scheme, minimum food safety regulations and inspection standards for food truck vendors to be administered by the Department of Health Services and county health departments. The bill as written, however, would upend many local regulations concerning, among others, the use of public property by allowing food truck vendors to conduct business on public property without a permit, fee or permission. It prohibits spacing distances from existing brick and mortar restaurants, allows unrestricted use of any legal parking spaces and prohibits the enforcement of ordinances that restrict the operation of food truck vendors at locations within a certain timeframe. 

League Position: NEUTRAL - The League continues to work with the sponsor and the industry to refine the language of the bill. A committee amendment addressed our concerns regarding unrestricted use of public property; put a timeframe for operation on private property; ensured the prohibition on spacing distances do not encroach on spacing distances required for building and fire codes and maintained the ability for a city or town to be named as an additional insured if they are operating on public property. 

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First sponsor: Rep. Payne   5/14
signed by governor. Chap. 286, Laws 2018.
H2386:
NOTICE OF CLAIM; REQUIREMENTS  

Summary: This bill alters the Notice of Claims statute from requiring strict compliance with the law to now requiring substantial compliance. Additionally, change in language implicitly says that a public entity is only released from any future claims if they pay the full amount requested by the claimant. 

League Position: OPPOSE The League opposes this bill because it makes it easier to sue public entities by taking us from a law that is currently clear and concise with substantial case law backing it up to one that is ambiguous and will require future case law to establish judicial precedent.\

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First sponsor: Rep. Rivero   2/12
retained on House COW calendar.
H2387:
MUNICIPAL TPT; SPECULATIVE BUILDERS  

Summary: This bill requires cities and towns to allow a deduction from the selling price of new construction subject to speculative builder tax for any in-place leases, other intangibles, or personal property, provided the amount is stated on the recorded affidavit of value. The deduction is limited to no more than the amount that would reduce the selling price to the amount considered taxable at the State level. New construction is taxed by the State against the developer’s Contracting Arm based on the construction cost plus a reasonable profit (usually 5%) when the structure is transferred to the developer’s Marketing Arm. City and town tax is based on the selling price by the Marketing Arm to the unrelated third-party buyer. This would effectively reduce the taxable measure of the Marketing Arm to be equal to the measure of the Contracting Arm. 

League Position: OPPOSE - The League believes this proposed language is overly broad and could result in the complete elimination of the Speculative Builder tax classification. The issue of an in-place lease deduction has been agreed to by most cities and towns over the past decade, using various valuation methods essentially crafted on a case-by-case basis. Long before introduction of this bill, cities and towns began working on adding an exemption to the Speculative Builder classification that will provide a uniform method to value in-place leases and remove them from the taxable measure and we intend to continue that effort. 

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First sponsor: Rep. Rivero   2/15
from House ways-means do pass.
H2479:
TPT; DIGITAL GOODS & SERVICES  

Summary: This bill draws the line between pre-written software and “specified digital goods” (books, music, movies, etc.) that are “transferred electronically” meaning wholly downloaded or saved in some manner by the user and thus are considered taxable, versus the exact same products that are “remotely accessed” over the Internet (“in the cloud”) without downloading a complete copy and thus are defined as exempt “specified digital services.” The bill creates eight new exemptions for transactions long deemed taxable that are currently producing State and local revenues. Under the bill, in all cases where a transaction is deemed taxable, it will now fall under the Retail classification, even if the true nature of that transaction is a rental or lease. This creates additional problems by switching a large portion of the taxability from TPT to Use tax. This removes the seller’s “nexus” or direct liability to pay the tax. Also, Use tax does not apply in any county and is not universally imposed by all cities and towns, causing additional direct local revenue losses. This bill takes revenues out of the Retail and TPP Rental classifications that go into the shared revenue distribution base. Those revenues are moved to Use tax which is not shared with counties, cities and towns. 

League Position: OPPOSE

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First sponsor: Rep. Ugenti-Rita   5/1
Senate appro held.
H2500:
REAL ESTATE SIGNS; CITIES; COUNTIES  

Summary: This bill prohibits counties, cities and towns from banning a real property owner or the owner's agent from displaying a sign on the property and/or in an area within a public or private right-of-way, advertising that the property is for sale or rent, an open house, the owner or agent's name and contact information, and directions to the property. 

League Position: OPPOSE - Cities and towns receive numerous complaints about temporary signage from citizens and therefore are very wary about the proliferation of signage in the right of way.

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First sponsor: Rep. Grantham   3/8
from Senate gov do pass.
H2514:
HURF DISTRIBUTION; CITIES; TOWNS; COUNTIES  

Summary: This bill changes the formula for how HURF funds would be distributed by, before calculation of individual shares, the state would take an $18M to be allocated to counties of a population below 215,000 and cities of a population below 7,500.

League Position: OPPOSE - The League opposes this bill because we do not believe how HURF money is split is the issue but rather the issue is there is not enough money in HURF on an annual basis and some of the money in HURF is being swept each year and not distributed to cities, towns, counties, and state highways. Additionally, we do not believe it is useful to pit rural cities vs. urban cities and rural counties vs. urban counties.

 

First sponsor: Rep. Cook   3/29
from Senate appro do pass.
H2532 (Chapter 314):
OCCUPATIONAL REGULATION; MUNICIPALITIES; COUNTIES; PROHIBITION  

Summary: A strike everything amendment has been proposed which establishes a “sunrise” procedure that would be required when a city or town enacts any new occupational licenses and a “sunset” procedure for periodically reviewing existing local occupational licenses.

League Position: NEUTRAL - The League anticipates some amendments to the striker that would make it acceptable. 

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First sponsor: Rep. Payne   5/16
signed by governor. Chap. 314, Laws 2018.
H2562:
CRIME; EMERGENCY SERVICES; SUMMARIES; WEBSITES  

Summary: The bill would require cities and towns to post summary crime data as well as response times for police, fire and EMS calls. 

League Position: NEUTRAL – The League has been working with the sponsor and other stakeholders to ensure the final bill does not create an undue burden on our police and fire departments. 

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First sponsor: Rep. Grantham   3/15
from Senate gov with amend #4794.
H2604 (Chapter 247):
CONSOLIDATED ELECTIONS; VOTER TURNOUT  

Summary: Requires cities and towns to comply with consolidated election date requirements and hold all elections in the even-numbered cycle if the percentage of eligible voters who voted is less than 75% of the statewide average of the percentage of eligible voters in even-numbered years for all cities and towns. 

League Position: OPPOSE 

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First sponsor: Rep. Mesnard   4/17
signed by governor. Chap. 247, Laws 2018.
H2625:
MUNICIPAL SEALS; RESTRICTED USE  

Summary: This bill requires that in order to use, display or employ a copy or other resemblance of the municipal seal, a person must obtain approval from the municipal governing body. The municipal governing body may grant approval to any person showing good cause for the use of the municipal seal for a proper purpose, and may adopt rules for the use of the municipal seal. The municipal governing body is required to issue a cease and desist order to any person who is in violation of these requirements. Failure to comply with the cease and desist order is a class 3 misdemeanor. 

League Position: OPPOSE 

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First sponsor: Rep. Clodfelter   2/14
House local-intl held.
S1002:
HOME-BASED BUSINESSES; REGULATIONS; MUNICIPALITIES  

Summary: This bill restricts a city or town from having an ordinance that prevents certain home-based business operations. 

League Position: OPPOSE 

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First sponsor: Sen. D. Farnsworth   1/30
from Senate com-pub safety with amend #4042.
S1014:
MUNICIPAL ZONING: REZONING PROTESTS  

Summary: Allows either the property being rezoned or the neighboring properties to file a protest.

League Position: SUPPORT: This bill fixes a drafting error that occurred in last year’s HB 2116. As passed, that bill included properties being rezoned in the calculation for formal protests by surrounding properties. This resulted in situations where neighboring properties could not file a formal protest on a rezoning because the property being rezoned had to be included as part of the petition. 

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First sponsor: Sen. Kavanagh   4/4
House COW approved with amend #4637. FAILED to pass House 9-50.
S1054 (Chapter 210):
ASRS; NONPARTICIPATING EMPLOYERS  

Summary: This bill provides protections for all employers in ASRS in the event the legislature allows any employer to remove themselves from ASRS. 

League Position: SUPPORT - The League supports this bill because we believe no employer should have to subsidize the departure of any other employer from the retirement system through paying the departing employer’s unfunded liabilities. In recent years Arizona State University has talked about a long term objective of getting out of the ASRS as a cost-saving measure. With that in mind, the ASRS is attempting to protect 574 employers from having to absorb the liabilities of the universities.

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First sponsor: Sen. Fann   4/12
signed by governor. Chap. 210, Laws 2018.
S1093:
MANDATED FIRE SPRINKLERS; PROHIBITION; APPLICABILITY  

Summary: This bill further limits the exemption from fire sprinkler prohibitions to any municipality requiring fire sprinklers for ALL single-family detached residences and residential buildings prior to November 15, 2017. 

League Position: OPPOSE - This bill does not solve any problem and instead will create problems for cities and towns that require by ordinance fire sprinklers for residential structures that were grandfathered in 2009. 

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First sponsor: Sen. Griffin   3/14
House local-int FAILED 3-4.
S1146:
VEHICLE FEES; ALTERNATIVE FUEL VLT  

Summary: This bill is identical to HB 2166 and would establish a new vehicle registration fee that would go entirely toward fully funding the Department of Public Safety. The fee would be set by the Director of the Arizona Department of Transportation and be paid at the time of registration just like VLT.

League Position: SUPPORT 

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First sponsor: Sen. Worsley   4/23
see H2166.
S1153:
FIRE FLOW REQUIREMENTS; RURAL APPLICABILITY  

Summary: This bill exempts single-family residential properties or subdivisions outside of Pima and Maricopa Counties with lot dimensions equal to or greater than 1/2 acre in size from fire flow or fire protection requirements of an adopted fire code if the adjacent water provider or private well does not meet fire flow requirements. 

League Position: OPPOSE - This bill will put firefighters in danger by requiring fire protection services in areas without sufficient water for fire suppression and will shift the financial burden for providing infrastructure to taxpayers that have no personal or public interest in developments.

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First sponsor: Sen. S. Allen   1/29
Senate nat res-energy held.
S1252:
PRIVATE PROPERTY RIGHTS; LIMITATION  

Summary: Prop. 207 (Private Property Rights Protection Act, est. 2006) entitles property owners to compensation if their property value has been diminished by a city/town action and they file a claim in court within 3 years. This bill, as amended in committee, would toll the period during which a property owner has filed a notice of claim with a city/town and is awaiting a response (up to 90 days) and makes the notice of claim an exhaustion requirement. The bill was brought by the Goldwater Institute after one individual’s Prop. 207 claim was denied by the courts after the owner failed to file a claim within the 3 year period.

League Position: OPPOSE – The League opposes changes to Prop. 207  that arise from individual property owners’ circumstances after their claims have been fully litigated. Prop. 207 was established by the voters over a decade ago and should be altered only for good cause and with involvement from all stakeholders.

First sponsor: Sen. Kavanagh   2/8
from Senate gov do pass.
S1262:
RETIREMENT; ASSUMED RATE OF RETURN  

Summary: This bill would force the PSPRS Board to lower the assumed rate of return for the PSPRS, CORP, and EORP plans to the three year average of the 20-year treasury yield plus 200 basis points. 

League Position: OPPOSE - The League opposes this bill because expert analysis, data, and facts do not support that expected returns will be around 4.7% over the next 20 years. The Office of the Auditor General, Gabriel Roeder Smith (actuary), and NEPC (New England Pension Consultants)have all suggested that the PSPRS assumed rate of return of 7.4% is not unreasonable. Over the past 35 years the PSPRS realized rate of return has exceeded 9% further substantiating the 7.4% assumed rate of return. In addition to not being supported by expert analysis, data, and facts a reduction in the assumed rate of return from 7.4% to 4.7% would result in an increase of $300 million per year in contributions for cities and towns. 

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First sponsor: Sen. Petersen   3/6
Senate COW approved with floor amend #4712.
S1281 (Chapter 187):
STREET LIGHTING IMPROVEMENT DISTRICTS; CONSOLIDATION  

Summary: SB 1281 will allow the consolidation of two or more SLIDs that have contiguous boundaries, with the consent of the majority of property owners, and allow the addition of new territory into an existing SLID, under certain conditions.

League Position: SUPPORT -
This is a League resolution. 

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First sponsor: Sen. Kavanagh   4/11
signed by governor. Chap. 187, Laws 2018.
S1296 (Chapter 339):
GOVERNMENT COMMUNICATIONS; EMERGENCY RESPONSE INTERPRETERS  

The state, counties and municipalities are each required to take reasonable steps to ensure that its communications with persons with disabilities, including online communications and emergency communications, are equally as effective as its communications with persons without disabilities. The state, counties and municipalities are each required to provide auxiliary aids and services when needed to communicate effectively with persons with communication disabilities. The state, counties and municipalities are each required to establish a protocol to take reasonable steps to secure a licensed interpreter to interpret emergency communications that are presented live to the media for broadcast or delivered through a live online communication, including an official government statement or press conference relating to an emergency situation. Does not prevent the state, a county or a municipality from communicating to the public during an emergency situation if an interpreter is unavailable. AS PASSED SENATE.

First sponsor: Sen. Bowie   5/16
signed by governor. Chap. 339, Laws 2018.
S1382 (Chapter 189):
TPT; ONLINE LODGING MARKETPLACE; REGISTRATION  

Summary: Requires all online lodging marketplaces to register with the Arizona Department of Revenue (DOR) for state and local tax collection and remittance purposes.

League Position: SUPPORT

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First sponsor: Sen. Kavanagh   4/11
signed by governor. Chap. 189, Laws 2018.
S1392:
TPT; DIGITAL GOODS & SERVICES  

Summary: This bill draws the line between pre-written software and “specified digital goods” (books, music, movies, etc.) that are “transferred electronically” meaning wholly downloaded or saved in some manner by the user and thus are considered taxable, versus the exact same products that are “remotely accessed” over the Internet (“in the cloud”) without downloading a complete copy and thus are defined as exempt “specified digital services.” The bill creates eight new exemptions for transactions long deemed taxable that are currently producing State and local revenues. Under the bill, in all cases where a transaction is deemed taxable, it will now fall under the Retail classification, even if the true nature of that transaction is a rental or lease. This creates additional problems by switching a large portion of the taxability from TPT to Use tax. This removes the seller’s “nexus” or direct liability to pay the tax. Also, Use tax does not apply in any county and is not universally imposed by all cities and towns, causing additional direct local revenue losses. This bill takes revenues out of the Retail and TPP Rental classifications that go into the shared revenue distribution base. Those revenues are moved to Use tax which is not shared with counties, cities and towns. 

League Position: OPPOSE

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First sponsor: Sen. D. Farnsworth   3/1
retained on Senate COW calendar.
S1409 (Chapter 341):
TPT; PRIME CONTRACTING; ALTERATION; REPLACEMENT  

Summary: This bill removes alterations from the list of activities that are exempt from the prime contracting classification; specifies that the prime contracting classification does not apply to any work performed by a person that is not required to be licensed with the Registrar of Contractors under the handyman exemption; alters the definition of replacement to include a single system or multiple systems of like function; becomes effective on January 1, 2019; provides that any contract entered into prior to the effective date is to be taxed under the law in place at that time. 

League Position: SUPPORT - The League worked closely with the contracting industry to address its concerns regarding the challenges created by the many changes to the Contracting classification placed in statute over the past four years, particularly the issue of determining the place where the tax applies under the new MRRA scheme. In particular, taxpayers have expressed significant problems consistently applying the law to Alteration projects, both among competing companies and even among different project managers within the same company. This compromise solution provides greater clarity and much needed relief that is expected to result in greater compliance and reduced audit risk for the affected taxpayers. 

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First sponsor: Sen. Fann   5/16
signed by governor. Chap. 341, Laws 2018.
S1455 (Chapter 224):
CIVIL TRAFFIC VIOLATIONS; PROCEDURES; PENALTIES  

Summary: The bill mostly makes clarifying changes to the statutes governing minor traffic issues such as parking in a handicap space without a placard and driving in the left turn lane. The bill also specifies that when a citation is changed in any way it must be voided and reissued.

League Position: NEUTRAL – The League is working with the sponsor to amend the bill to ensure that tickets with minor corrections (name spelling, address off by one digit) are not required to be voided and reissued.

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First sponsor: Sen. Petersen   4/12
signed by governor. Chap. 224, Laws 2018.
S1465 (Chapter 194):
SOBER LIVING HOMES; LICENSURE  

Summary: The bill establishes a state-wide licensing system for sober living homes under the Arizona Department of Health Services.

League Position: SUPPORT - The League strongly supports a state-wide approach to the licensing of sober living homes and has been involved in discussions on this issue since last interim. A resolution was adopted at last year’s annual conference to address this issue through state and/or federal legislation and this bill does exactly that. 

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First sponsor: Sen. Brophy McGee   4/11
signed by governor. Chap. 194, Laws 2018.
S1499 (Chapter 108):
COMMUNITY FACILITIES DISTRICTS; DIRECTORS  

Summary: An emergency measure that makes conforming changes necessary because of a drafting error in legislation passed in the 2017 session. Additionally, allows a community facilities district (CFD) to provide for the designation of subsequent board members upon term expiration or vacancy.

League Position: SUPPORT

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First sponsor: Sen. Smith   3/29
signed by governor. Chap. 108, Laws 2018.