Time’s a Tickin’

Today marks the 75th day of the legislative session. To date, 44 bills have been sent to the governor for her signature or veto, 24 bills have been signed and 7 memorials or resolutions have passed. Each year the legislature aims to complete all action and have a budget sent to the governor by the 100th day of session; however, it is the opinion of most that this legislative session will last well past the 100-day goal. The reason for the anticipated draw-out of session can be directly linked to two issues: Medicaid expansion and Transaction Privilege Tax (TPT) reform, both of which the governor is pushing to be completed this legislative session.

Governor Jan Brewer unveiled her Medicaid expansion package on March 12. The plan would expand Medicaid coverage to include anyone earning up to 133 percent of the federal poverty level (or just less than $15,000 a year) and impose a tax on hospitals to get the state’s share of the expansion under the federal Affordable Care Act, which would trigger billions in federal matching funds. As expected, the plan has received skepticism from many within the Republican Party, prompting leadership in both chambers to not put the proposal up for a vote without the majority of their GOP lawmakers in support. The details of the plan continue to be worked out between the legislature and the executive.

Mid-February Governor Brewer also released her Transaction Privilege Tax reform. The simplification plan, HB 2676 Transaction Privilege Tax Changes, was introduced by Representative Debbie Lesko. The bill was assigned to the House Ways and Means Committee and the House Appropriations Committee. Though the bill was approved by the House Ways and Means Committee, the Chairman of the House Appropriations Committee refused to hear the bill as long as cities and towns concerns remained. As a result, the legislation was amended onto HB 2111 with a “strike everything” amendment in the Senate Finance Committee. The bill passed the Senate Finance Committee and earlier this week passed the Senate Appropriations Committee. Concerns continue to remain from the cities and towns, but stakeholder meetings continue in an effort to alleviate their concerns.

With these two major issues being “hashed-out,” Governor Brewer has requested the House and the Senate slow down the pace of passing bills until she receives decisions on both of her priority pieces of legislation. Though lawmakers continue to approve bills, they have kept most of the controversial bills at bay. If past history is an indicator of the future, once agreements sufficient to the governor have been made and approved on both proposals, there will be an influx in the passage of bills and shortly thereafter the legislature will sine die.

HOA Legislation – Update

Late last week, HB 2371 Homeowners’ Associations Omnibus, which establishes protections for homeowners and tenants against continued abuses by HOAs to over-regulate, interfere in contractual relationships, require sensitive personal information be provided and unjustly assess costly fees on the property owner passed out of the Senate Government and Environment Committee. This past Wednesday, the bill was approved by the Senate Rules Committee. The next stop for the bill will be the Senate Republican and Democratic Caucuses. Look for future Capitol Insiders for updates on the progress of this bill and the legislature.

— NICOLE LASLAVIC, AAR Vice President of Government Affairs

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