Arizona State Legislation Update – Feb. 5, 2020

Arizona State Capitol - Mario Recchia

A lot of bills have been dropped and are making their way through the legislative process. Here are a few recent additions to the legislative calendar:

SB 1145 – Temporary Irrigation Efficiency Projects Fund
Adds Phoenix AMA to qualified irrigation district. Qualified irrigation district must have delivered only CAP surface water in 2017.

SB 1201 – Building Permits; Electrical Outlet Capacity
Mandates cities, towns, counties may not issue a building permit for a residential, single family structure unless it has a 208/240 Volt – 50 AMP Circuit dedicated to charge an electric vehicle.

Questions you may wish to consider/ask an expert: What is neighborhood rated for at current transformer? What is cost to bring up additional electric (SRP/APS, etc.)? What is eventual impact on workforce housing cost? ? Affects on those building their own home or adding on?

SB 1202 – Electric vehicle outlet program
Owners of single family or multi-family residential will be reimbursed the cost of installing high voltage electric outlet for purpose of charging an electric vehicle.

SB 1203 – Electric vehicle charging station pilot program appropriation
Allocates $500,000 to start electric vehicle charging station program. Stations will be at ASU,
U of A, NAU and the legislature parking areas.

SB 1206 – Agriculture workforce program; interns appropriation
Establishes appropriation to reimburse food producing agriculture for cost of interns.

SB 1212 – board licensure; certification residents
Allows resident and spouse of active duty military of this state to receive license or certification in field in which they are already licensed or certified by another state for at least one year.

SB 1213 – Appropriation; Actuarial study reinsurance feasibility
Allocates funds to Dept. of Insurance to conduct actuarial study on feasibility of establishing a reinsurance program under the section 1332 state innovation waiver program of ACA.

SB 1215 – Teachers Academy; counselors’ social workers
Allocates funds to add social workers and counselors to Arizona Teachers program reimbursement of education costs.

SB 1222 – Building permits; utilities restrictions prohibitions
Prohibits cities, towns and counties from denying a building permit base on projects utility provider.

Questions you may want to ask: Does a city have the right to remain in control of the utility companies that services it? When does city responsibility overstep and prevent property owners from their property right? What happens if a property owner chooses a utility that does not service the area? What does “authorized” mean?

SB 1223 – Appropriation; rural broadband grants
Appropriates $10,000,000 to ACA for rural broadband grants.

SB 1229 – securities; exempt transactions
Adds transactions sum of aggregate offering price and sales does not exceed $50,000,000.

SB 1237 – Veterans; income tax subtraction increase
Exempts veterans pension benefits from income tax.

SB 1251 – Water Infrastructure finance authority; appropriation
Allocates $30,000,000 to water infrastructure financing authority

SB 1255 – Independent activities; neglect prohibition
Adds walking, running, biking to school, traveling to commercial or recreation facilities, playing outdoors, remaining unattended in a vehicle or home alone as permissible parent decisions.

SB 1256 – Toll roads; conversion prohibition
Prohibits conversion of existing publicly funded or maintained streets and highways to toll roads.

SB 1258 – Energy Measuring; containers prohibition repeal
Repeals ARS 9-500.36: Prohibits locals from requiring owner, operator, tenant of business – commercial or multi-family property to measure and report energy usage and consumption including benchmarking and energy efficient audits, metering.
Repeals ARS 9-500.38: Prohibits locals from imposing taxes and fees on auxiliary containers and regulating sale or use of auxiliary containers.

SB 1261 – Prohibition; pesticides
Prohibits use or sale of: Clothianidin, Imidacloprid, Thiametoxam, Chlorpyrifos

SB 1262 – Predator control devices: prohibition chemicals
Prohibits sale or use of: sodium fluoroacetate and sodium cyanide in predator control devices.

SB 1268 – Health Care Insurance; hearing aids
Mandates State establish minimum coverage rates for hearing aids at least 100% coverage of reasonable and customary hearing aids and establish an approved list of audiologists’ insurers must use. Provides and evidence of coverage must include hearing aids, disability policies – blanket disability policies – and health benefit plans must include hearing aids.

SB 1274 – Professional regulatory boards; composition
Changes statutory membership of Arizona Board of Technical Registration, Board of Barbers, Cosmetology, Accountancy, Funeral Directors and Embalmers, Massage Therapy. Generally, reduces or eliminates professional members to boards and increases public members.

SB 1279 – Contracts; licensure requirements exemption exclusion
Requires private post-secondary education person to be subject to state licensing, certification, registration or other authorization.

SB 1280 – Pensions; unfunded liability expenditure limits
Requires cities, towns and counties to consider unfunded pension liabilities as long term contractual obligations.

SB 1282 – Environmental quality: task force
Mandates Department of Environmental Quality, the Dept. of Administration ensures all state agencies, board and commissions implement environmental justice policies and ensure review of policies periodically to ensure program implementation and information meet the needs of low income and minority communities and address disproportionate exposure to environmental hazards.

Establishes an environmental justice advisory council of 15 people with 5 members from grassroots organizations. The Director of the agency will convene a multi department environmental justice task force with senior management members from the Governor’s office, Attorney General, Dept Health Services, Az Dept of Agriculture, ADOT, Dept of Education.

Any person may submit a petition to the task force asserting adverse exposure to environmental health risks. The task force action plan must be implemented by communities

SB 1284 – Students; Community college grants
Beginning Aug 1, 2020, community college districts must administer Az Works grants for students enrolled in career and technical education programs. In order to qualify students must submit a FAFSA and have a parental federal adjusted gross income of $60,000.

SB 1285 – Insurance coverage; prosthetics orthotics
Mandates prosthetics and orthotic coverage and reimbursement rate criteria for health insurance.

SB 1287 – Medicare supplement insurance: guaranteed availability
Every insurer that offers medicare supplemental insurance must provide guaranteed availability. Cannot decline to offer coverage to or deny coverage by imposing preexisting condition exclusions or charge an additional premium.

SB 1289 – Pesticides: restricted sale and use
Exempts: certified applicators, farmers, vets, pet care products to mitigate fleas, mites, ticks, heartworm, personal care products to mitigate lice and bedbugs, indoor pest control to mitigate insects indoors.

SB 1291 – Emergency assistance: falls liability
Relieves someone who acted at the direction of emergency worker or to prevent further injury to a person who has fallen not liable for civil damages as a result of any action or omission of action.

SB 1292 – Financial Literacy: State Treasurer fund
Requires State Treasurer to promote and raise awareness of financial literacy and establishes a fund.

SB 1300 – Mobile polling places; compliance
Mandates that portable polling places comply with all the requirements of permanent building polling places.

SB 1301 – Water banking; storage credits subcontractors
Long term storage credits distributed to subcontractors may not be sold. Subcontractor must pay fees and costs of recovery of the long-term storage credits.

SB 1305 – Personal delivery devices
Allows personal delivery devices and places liability and responsibility on the business entity. Sets rules of operation, equipment, local authority regulations, insurance.

SB 1306 – Limitations of actions: payments acknowledgement
Stipulates that when an action for debt has accrued and any payment is made, the limitation period begins new from date of last payment.

SB 1307 – Fire Districts; amendments
Mandates that expiration of fire district board member’s term the seat is declared vacant. If election fails to fill the seat, then office is appointed by district board within 90 days. If District board fails to fill seat, vacancy will be filled by board of supervisors.

SB 1320 – Housing Trust Fund: unclaimed property
50% of monies collected from sale of unclaimed property must be deposited to Housing Trust fund with 40% of that amount being used for development of housing in rural areas.

SB 1330 – Mechanics and materialmen’s liens: interest
Allows interest to be charge on amounts owned to contractor.

SB 1337 – Homeowner’s associations: solar; water devices
HOAs cannot prevent homeowner from installing solar or water saving devices.

SB 1339 – Polystyrene foam food packaging: prohibition
As of 1/1/2022 food establishments may not serve food or beverages in polystyrene containers. Food packagers may not use polystyrene containers.

SB 1341 – Office of New Americans
Establishes Office of New Americans. Responds to requests for information from state agencies the media, immigration serving organizations and the public regarding immigration issues. Stipulates members of the board including one member from a Chamber of Commerce. Serves as advisory on immigrant matters. Creates ad hoc committees and conducts research.

SB 1342 – Elections; polling places standards
Mandates voting officials minimize voting wait times, ensure access to voting locations and provide safe and secure voting for all persons. Election officials must meet once a year to develop procedures for: no voter waits more than one-hour, appropriate number of voting locations, adequate staffing, and other procedures these officials already conduct.

SB 1343 – Affordable Housing Tax Assessment
Initial appraised value of community land trust property in the year property is classified as affordable housing is the initial investment basis. Tax assessor valuation may not exceed sum of the market value of community land trust property and initial investment basis.

SB 1345 – Repeal; Right to work
Repeals workers choice to join labor union

SB 1346 – Employment; employee work scheduling
Stipulates multiple changes to employee work scheduling including employer good faith estimate of shift and weekly hours. Mandates process in writing for worker to request schedule changes. Employer must grant employee request unless “bona fide” business reason is proven. Employer must compensate employee for each employer requested work schedule change that occurs after 14 days. Employer owes employee additional compensation if: employer adds hours to work shift, changes date or start/end date of shift, employees shift is reduced, canceling a shift. Employer cannot schedule a worker to work another shift less than 10 hours after the original shift.

Employers must offer additional work hours to existing employees first rather than temp employees or other external applicant pools. Must post the position at the same time to internal and external applicants. Applicants have 2 calendar days to accept or reject the additional hours. Employer should offer additional training for employees to progress. Several detailed items limiting what an employer may do.

SB 1347 – DOR; administrative rulings procedures
Provides for public comment before agency adopts a rule and timelines. Provides that within 30 days of receiving a private tax ruling a tax payer may request a meeting to discuss the ruling. Taxpayer must be provided a copy of private tax ruling.

SB 1348 – Tax corrections act of 2020
Several changes to Az Income Tax Law. Repeals several income tax exemptions/additions related to agriculture, family and entity transfers, American Recovery and Reinvestment Act 2009. Applies retroactively to taxable years from 12/31/17 forward.

SB 1254 – Call center relocation; notice penalty
Call centers wishing to relocate out of the state must notice DES at least 120 days before the relocation. Penalty for non-notice is $10,000/day. Call center re-location list must be maintained. Call centers contracted by state must be able to do all the work in the state. May not work with a call center outside Az.

SB 1354 – Public retirement systems; prefunding plan
Provides for prefunding of retirement plans and instruction to invest in equity securities.

SB 1361 – weapons; misconduct firearm storage
Adds storing a firearm without using a lock & key or trigger lock or other securely locked box a violation. Provides penalties ranging from misdemeanor to class 2 felony.

SB 1460 – Electric cooperative; broadband service
Provides for cooperatives to access privately owner property to establish an easement, which can expand, and provide “just compensation” through valuation of property immediately before and immediately after the access. Property owner must sue for compensation within 18 months after the date the cooperative provides notice of expanded use. Rental value of property to cooperative is not acceptable to help establish value. Established easement runs with the land.

SB 1364 – Corporate Income Tax; minimum
Provides minimum income tax for businesses of 50 or more employees go to $1,000/year