1. 2013 Legislative Overview League of Arizona Cities and Towns

2. Session at a Glance Adjourned sine die on June 14 (151 st day) General Effective Date: September 13 1,158 bills introduced 282 bills sent to the Governor 256 bills signed 26 vetoes Budget/Medicaid challenges

3. Consolidated Elections Clean-Up History: HB 2826 Tumultuous path (HB 2527/HB 2536/HB 2305/HB 2518/SB 1454) Provisions – Incorporation – Length of Terms – Home Rule – Many other provisions Implementation

4. Sales Tax Reform Where it started (HB 2657 - Lesko) – No more self-collecting cities – No more local auditing – No more construction sales tax Where it ended (HB 2111 -Lesko) – Online portal for everyone – DOR oversees all audits, some local authority retained – Only service contractors move to retail TPT

5. Municipal Issues: Offense HB 2443: cities; counties; regulatory review (Olson) HB 2562: public retirement systems; ineligible employees (Robson)

6. Municipal Issues: Defense SB 1210: municipalities; municipal policies; shared revenues (Burges) SB 1321/ HB 2404: building codes; residential energy efficiency (Griffin) HB 2554: firearm regulation; state preemption (Kavanagh) HB 2331: bonding; taxation; expenditures; district limitations (Montenegro)

7. Municipal Issues: Draws HB 2324 : NOW: TPT exemption; leases; affiliated companies (Farnsworth) HB 2347: tax levy; bond costs; public investments (Lesko) HB 2477: photo radar on state highways (Lesko) SB 1231: public buildings; construction; indemnity (Reagan) SB 1278: homeowners' associations; public roadways (Barto) HB 2259 (orthodontic devices; transaction privilege tax)

8. Municipal Issues: Losses HB 2455: unclaimed property; firearms; disposition (Barton) HB 2456: revenue allocation districts (Lovas)

9. Municipal Issues: Vetoes SB 1178: NOW: exercise of religion; protection (Yarbrough) SB 1371: municipal elections; ballot; disclosure (Griffin) HB 2578: licensing; accountability; penalties; exceeding regulation (Petersen)

10. What’s Next? Implementation assistance – HB 2111: NOW: transaction privilege tax changes – HB 2443: cities; counties; regulatory review – HB 2562: public retirement systems; ineligible employees – SB 1454: elections; campaign finance; HOAs Annual Conference 51 st Legislature, Second Regular Session

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