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AAR’s Legislative Action PlanA Budget Crisis, ADRE Legislation, Anti-Deficiency, Back Utility Bills and More
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Arizona REALTOR® Archives 2003 - 2010 Arizona REALTOR® Publication Information Log-In Note: The digital edition and some online articles require you to log in before viewing. Why? AAR password protects content that could help non-licensees close a real estate transaction without the benefit of a REALTOR®; risk management/legal articles; and some legislative information. Don’t yet have a log in? Create one here.  
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Winston Churchill once said, “The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.” There is no doubt that Arizona is facing difficult times. We lead the nation in state budget shortfalls, job loss per capita and foreclosures. However, with leadership, Arizona has the opportunity to emerge as a stronger, more vibrant state than we were before. Each of us has a responsibility in making that happen. We do so in our vote at the ballot, our contributions to candidates and the policies we move forward as an industry. Together we can achieve success for our industry, the state and ourselves. Focus on the Budget The budget will continue to be the “star” during the 2010 legislative session. Currently, the state still faces a mid-year gap of nearly $2 billion in fiscal year 2010 and an additional $3.5 billion deficit in fiscal year 2011. The legislature continues to work in special sessions to help alleviate the running deficit. However, Treasurer Dean Martin was forced to take out a $700 million line of credit for the first time since the Great Depression to cover the shortfall. Many believe that we simply cannot get out of the problem by cutting alone and are looking for ways to increase revenue. Budget contention has focused and will continue to focus on how to raise revenue. Governor Jan Brewer will continue to push for a 1-cent sales-tax increase to be voted on by the public this May. If the voters approve the sales tax increase, it is projected to raise just $1 billion, which will still leave a $1 billion deficit. Talk of broadening the tax base to include services continues to linger at the Capitol, and we expect to play defense as legislators examine every option for increasing revenue. Moving Our Industry Forward There were several changes in the political arena in 2009. Governor Brewer appointed Commissioner Judy Lowe to head up the Arizona Department of Real Estate. With a fresh face came new ideas that AAR has happily got behind and agreed to help move through the legislature. We will be supporting legislation that changes the licensure from four years back to two years and promotes education and professionalism within our industry. Rural Arizona has been dramatically affected by the line-extension policy at the Arizona Corporation Commission. AAR has worked for the past year to bring this issue to the forefront at the commission. We cannot wait any longer for them to take this issue seriously and readdress their policy, which has drastically decreased raw land value throughout the state. We will take the fight to the Capitol and introduce legislation to reinstate a line-extension policy. The state budget crisis has trickled down to county and local governments. Cities have begun to look for new ways to bring in revenue. They have begun to charge the REALTOR ® selling a foreclosed property with the back utility bills from the previous owner before they will turn on service at the property. AAR will introduce legislation that prohibits a city or town from collecting back utility fees from anyone other than the person who requested the service. On the anti-deficiency front, AAR was able to repeal and replace ARS§ 33-814 during the fourth special session in November—essentially returning the statute to its original status prior to the passage of SB 1271, which limited the anti-deficiency protection. As part of the repeal, we agreed to continue to work with the Arizona Bankers Association on language to address their issue of speculative builders. In their original testimony, they testified that SB 1271 was to address those individuals that bought raw land with the intent to build a “spec” home and then sell that home to a third party. A Time for Leadership Tension continues to be high among Republicans, Democrats and the governor as they all attempt to find solutions to lead Arizona out of our fiscal crisis while still maintaining their electability this coming cycle. Arizona is facing another budget year of unprecedented deficit, and many legislators are worried about the potential fallout this November. 2010 will be a year in which elected officials don’t want to get involved in controversial issues or make the hard decisions. It will also be a year in which legislative leaders are tested. It will take leadership from different business groups coming together to help solve this crisis. This is not a time to shy away from the fight but to stand as an association and advocate for or defend against policies affecting our industry. AAR has an aggressive legislative agenda. It evolved from your input, and the association’s staff and volunteer leaders will do our part to move it forward. We encourage you to do your part as well. Stay informed on public policy discussions by reading this magazine, following the Capitol Insider email updates or logging on to RALLiNOW.com.
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