Bill Tracking – January 30, 2014

Bill Summaries

H2001: INCOME TAX BRACKETS; INFLATION INDEX

For each tax year beginning with 2016, the Department of Revenue is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year.

First sponsor: Rep. Olson     

H2001:    INCOME TAX BRACKETS; INFLATION INDEX    1/26    from House ways-means do pass.

H2033: UNIVERSITY RESEARCH INFRASTRUCTURE PROJECTS; APPROPS            

Appropriates the following amounts to the Arizona Board of Regents in FY2017-18 through FY2047-48 from the general fund for the following universities for lease-purchase capital financing for “research infrastructure” (defined) projects: in FY2017-18, $27.2 million for Arizona State University, $10.2 million for Northern Arizona University, and $30.5 million for the University of Arizona; in FY2018-19 and in each FY after through FY2047-48, $29 million for ASU, $10.9 million for NAU, and $32.7 million for UofA. Lease-purchase financing agreements must be entered into before July 1, 2017 and are subject to specified requirements. State construction sales tax monies accruing to the state for these projects are continuously appropriated to each university. For each FY in which projects are financed and under construction, ABOR is required to submit a report to the Governor and the Legislature containing specified information about the projects.

First sponsor: Rep. Robson     

H2033:    UNIVERSITY RESEARCH INFRASTRUCTURE PROJECTS; APPROPS    1/22    referred to House gov-higher ed.

H2061: ONLINE TPT; INCOME TAX REDUCTION  

The Department of Revenue is required to determine the amount of additional revenue collected during the first full taxable year following the date the Dept begins collecting, as a result of a "qualifying federal law" (defined), transaction privilege and use taxes from out-of-state retailers on purchases made by Arizona residents. After the Dept makes this determination, the Dept is required to determine the amount that individual income taxes may be reduced in the following tax year in order to decrease individual income tax revenue by the amount of TPT collected. The Dept must certify these determinations to the Governor and the Legislature and must specify in the certification that the new tax rates take effect in the following tax year.

First sponsor: Rep. Mesnard     

H2061:    ONLINE TPT; INCOME TAX REDUCTION    1/26    from House ways-means do pass.

H2064: GRADUATION REQUIREMENT; CIVICS TEST            

Beginning in the 2016-17 school year, in order to graduate from high school or obtain a high school equivalency diploma, a student must correctly answer at least 60 of the 100 questions listed on a test identical to the civics portion of the naturalization test used by the U.S. Citizenship and Immigration Services. School governing boards are authorized to determine the method and manner in which to administer the civics test, and students may retake the test until obtaining a passing score. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Montenegro     

H2064:    GRADUATION REQUIREMENT; CIVICS TEST    1/15    Passed House 42-17. Substituted in Senate for identical S1029 and passed 19-10. Signed by governor. Chap 1, Laws 2015.

H2072: BALLOT MEASURES; PROP 105 DISCLOSURE            

For ballot propositions that make statutory changes, a statement that the measure “can never be changed” except by a 3/4 vote of the Legislature or be referring the change to the ballot must be included in the publicity pamphlet printed by the Secretary of State and included on any advertisement or literature to support or oppose the measure. Severability clause.

First sponsor: Rep. Ugenti     

H2072:    BALLOT MEASURES; PROP 105 DISCLOSURE    1/14    referred to House elect.

H2083: INCOME TAX REVISIONS            

Various changes relating to income taxes. For tax years beginning with 2016, the Department of Revenue is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year. A taxpayer is permitted to take an expense deduction for property placed in service in tax years beginning with 2014, in the amount of the difference between the expense amount allowed under the internal revenue code and the amount that would be allowed under the Internal Revenue Code if the maximum deduction allowed were $500,000 and the limitation were reduced by the amount that the cost of the property placed in service in the tax year exceeds $2 million. A taxpayer is also permitted to take an expense deduction for "qualified property" (defined) that is placed in service in tax years beginning with 2014, in the amount of an allowance equal to 50 percent of the adjusted basis of the qualified property remaining after the adjustment for the previous expense deduction and any other depreciation allowance under the Internal Revenue Code. Establishes additions to Arizona gross income to avoid a double deduction if a taxpayer uses these expensing provisions. The lists of additions to and subtractions from Arizona gross income are modified to delete obsolete calculations. More. Some provisions are retroactive to tax years beginning January 1, 2015.

First sponsor: Rep. Mesnard     

H2083:    INCOME TAX REVISIONS    1/26    from House ways-means with amend #4013.

H2131: TAX ADJUDICATIONS; ATTORNEY FEES            

The court is required, instead of permitted, to award fees and other expenses to any party other than the state or a county or municipality that prevails by an adjudication on the merits in an action brought by that party against the state or a county or municipality challenging the assessment or collection of taxes, or the denial of a tax refund. The definition of “fees and other expenses” is expanded to include contingent fees.

First sponsor: Rep. Mitchell     

H2131:    TAX ADJUDICATIONS; ATTORNEY FEES    1/27    referred to House jud.

H2183: PROP 105; DISCLOSURE; BALLOT MEASURES            

For ballot propositions that make statutory changes, a statement that the measure can never be changed except by a 3/4 vote of the Legislature or by referring the change to the ballot must be printed on the official ballot and included in the publicity pamphlet printed by the Secretary of State.

First sponsor: Rep. Boyer     

H2183:    PROP 105; DISCLOSURE; BALLOT MEASURES    1/22    referred to House elect.

            

H2213: INSPECTIONS; AUDITS; NOTICE; RIGHTS            

An agency inspector, auditor or regulator who enters any premises of a regulated person to conduct an inspection is required to inform each person who is interviewed during the inspection or audit that participation in an interview is voluntary (unless the person is legally compelled to participate), that the person may have an attorney present during the interview and that the person is allowed at least 24 hours to review and revise any written statement on which the person's signature is requested. The written information that must be provided to the person subject to inspection or audit is expanded to include a notice that if documents provided become a public record, the person may redact trade secrets and proprietary information, and the time limit for filing a compliance action arising from the inspection or audit.

First sponsor: Rep. Petersen     

H2213:    INSPECTIONS; AUDITS; NOTICE; RIGHTS    1/28    from House com with amend #4023.

H2217: JOB TRAINING FUND; VOCATIONAL RAHABILITATION            

The Arizona Commerce Authority is required to annually transfer $3 million from the Arizona Job Training Fund to the Department of Economic Security for the purpose of operating vocational rehabilitation services.

First sponsor: Rep. Mach     

H2251: CORPORATE TAX CREDITS; ANNUAL REPORT            

Beginning January 1, 2016, the Department of Revenue is required to annually report to the Governor and the Legislature specified information on corporate tax credits for any corporation that claims aggregate credits in any taxable year of $5,000 or more. The Dept is authorized to disclose confidential taxpayer information for this purpose.

First sponsor: Rep. Mitchell     

H2251:    CORPORATE TAX CREDITS; ANNUAL REPORT    1/28    referred to House ways-means.

H2320: FIREARMS; PERMIT HOLDERS; PUBLIC PLACES            

It is not considered misconduct involving weapons to carry a deadly weapon at a public establishment or event if the person possesses a valid concealed weapons permit. Does not apply to public establishments or events that have security personnel and electronic weapons screening devices and that require each person carrying a deadly weapon to leave it in possession of the security personnel while the person is in the establishment or event.

First sponsor: Rep. Barton     

H2320:    FIREARMS; PERMIT HOLDERS; PUBLIC PLACES    1/27    referred to House mil-pub.

H2331: WORKERS' COMPENSATION; FRAUDULENT CLAIMS; FORFEITURE            

For a person who forfeits all right to workers’ compensation because of knowingly making a false statement, a class 6 (lowest) felony, that forfeiture does not terminate on any subsequent designation of the offense as a misdemeanor. A claimant for workers’ compensation is required to personally sign any document that requests the claimant to report employment status or earnings to the insurance carrier or self-insured employer. The reporting document must contain a statement that is in substantially a specified form, which includes a statement that knowingly making a false statement to obtain compensation, benefits or payments is a class 6 felony and is subject to prison, fines, and forfeiture of benefits.

First sponsor: Rep. Fann     

H2331:    WORKERS' COMPENSATION; FRAUDULENT CLAIMS; FORFEITURE    1/27    referred to House ins.

H2333: TAX CREDIT; RESEARCH ACTIVITY; REFUND            

The maximum amount of income tax refunds for increased research activities that the Arizona Commerce Authority is authorized to approve each year is increased to $7.5 million in 2016, $10 million in 2017, $12.5 million in 2018 and $15 million in 2019 and after, increased from $5 million. During the first six months of a calendar year, the Authority cannot approve refunds exceeding 50 percent of the limit. During the second six months, the Authority may approve the remaining balance of the limit. Effective January 1, 2016.

First sponsor: Rep. Fann     

H2333:    TAX CREDIT; RESEARCH ACTIVITY; REFUND    1/20    referred to House ways-means.

H2334: UNFAIR CLAIM PROCESSING; PROCEDURE; PENALTIES            

A complaint of unfair workers’ compensation claim processing or bad faith must be filed with the Industrial Commission within 60 days after the action or omission alleged as the basis of the complaint occurred. For cases where the Commission finds that unfair claim processing or bad faith occurred, new benefit penalty amounts are established and are based on the specific findings of the claim. In determining the amount of the benefit penalty, the Commission is required to consider the extent of the proven harm to the employee and various other factors. The benefit penalty is the employee’s exclusive remedy for unfair claim processing or bad faith, with some exceptions. The process by which an employer or carrier that is ordered to pay a benefit penalty must pay the penalty is established. The maximum civil penalty the Commission may impose for an employer or carrier with a history or pattern of repeated unfair claim processing practices or bad faith is increased to $5,000, from $1,000.

First sponsor: Rep. Fann     

H2334:    UNFAIR CLAIM PROCESSING; PROCEDURE; PENALTIES    1/27    referred to House ins.

H2335: INSURANCE COMPLIANCE AUDIT PRIVILEGE            

Insurance compliance audit privilege is extended to any insurance compliance audit document, instead of only self-evaluative audit documents. An insurer that seeks protection for an insurance compliance audit must comply with all statutory requirements. Insurers may choose to perform a review or audit, or to have an audit or review conducted, that does not comply with the requirements, but that audit or review is not subject to the privilege protections of statute.

First sponsor: Rep. Fann     

H2335:    INSURANCE COMPLIANCE AUDIT PRIVILEGE    1/27    referred to House ins.

H2347: UNEMPLOYMENT INSURANCE; BASE-PERIOD NOTICES            

When an initial claim for unemployment benefits is filed, the Department of Economic Security is required to promptly notify the claimant’s most recent employer of the claim filing, and the notice must contain the claimant’s stated reason for separation from employment and state that the employer may protest payment to the claimant by returning the protest no later than 10 days after the date of the notice.

First sponsor: Rep. Fann     

H2347:    UNEMPLOYMENT INSURANCE; BASE-PERIOD NOTICES    1/28    referred to House ins.

H2412: RENEWABLE ENERGY CREDIT; REFUNDABLE; CAP            

The individual and corporate income tax credit for the production of electricity using renewable energy resources is capped in aggregate at $18 million for a calendar year, reduced from $20 million. If a taxpayer's credit exceeds taxes due, the taxpayer may elect to have 80 percent of the amount of the claim not used to offset taxes paid in the same manner as a refund.

First sponsor: Rep. Stevens     

H2412:    RENEWABLE ENERGY CREDIT; REFUNDABLE; CAP    1/20    referred to House energy-env.

H2423: REAL ID ACT; DRIVER LICENSES            

A person is permitted to apply to the Department of Transportation for a driver license or nonoperating identification license that complies with the federal REAL ID Act of 2005 and that meets all of the requirements of the U.S. Department of Homeland Security (USDHS) for a REAL ID compliant credential. On receipt of a proper application, the Dept is required to issue a license that bears a USDHS approved marking reflecting that the license meets REAL ID requirements. Statute prohibiting the implementation of the federal REAL ID Act of 2005 is repealed.

First sponsor: Rep. Coleman     

H2443: TOURIST ATTRACTION SIGNAGE ON HIGHWAYS            

The Department of Transportation is prohibited from requiring the removal of a sign on state highways if the sign has been in place for at least 20 years and the sign identifies a tourist attraction in Arizona that meets specified qualifications. An attraction that has such a sign must contract for payment with the Dept, and the contract must have specified terms.

First sponsor: Rep. Montenegro     

H2443:    TOURIST ATTRACTION SIGNAGE ON HIGHWAYS    1/28    referred to House trans-inf.

H2474: POSTSECONDARY INSTITUTIONS; SEXUAL CONSENT POLICIES            

Each public and private college, university and community college in Arizona is required to adopt policies to define consent to sexual activity that contain specified provisions.

First sponsor: Rep. Mendez     

HCR2001: CONSTITUTIONAL AMENDMENTS; SIXTY PERCENT APPROVAL            

The 2016 general election ballot is to carry the question of whether to amend the state Constitution to require initiatives and referendums that propose amendments to the state Constitution to be approved by at least 60 percent of the voters for passage.

First sponsor: Rep. Lovas     

HCR2004: CLEAN ELECTIONS REPEAL; EDUCATION FUNDING            

The 2016 general election ballot is to carry the question of whether to amend state statute to repeal the Citizens Clean Elections Act except for the 10 percent surcharge on all civil and criminal fines and penalties collected by the courts (which is deposited in the Clean Elections Fund), and to require the State Treasurer to annually transfer the monies in the Clean Elections Fund to the Department of Education for an equitable per pupil distribution to school districts and charter schools for maintenance and operations.

First sponsor: Rep. Petersen     

HCR2016: PERSONAL PROPERTY TAX; EXEMPTION            

The 2016 general election ballot is to carry the question of whether to amend the state Constitution to prohibit the Legislature from levying a tax on the full cash value of the first $2.4 million of assessed cash value of personal property that is initially acquired during or after tax year 2016 and that is used for agricultural purposes or in trade or business. The Legislature is required to provide by law an increase to the full cash value of the first $2.4 million according to annual variations in a designated national inflation index.

First sponsor: Rep. Mesnard     

HCR2019: RIGHT TO WORK; REPEAL            

The 2016 general election ballot is to carry the question of whether to amend the state Constitution to repeal the right to work or employment without membership in labor organizations.

First sponsor: Rep. Mendez     

S1029: GRADUATION REQUIREMENT; CIVICS TEST            

Beginning in the 2016-17 school year, in order to graduate from high school or obtain a general equivalency diploma, a student must correctly answer at least 60 of the 100 questions listed on a test identical to the civics portion of the naturalization test used by the U.S. Citizenship and Immigration Services. School governing boards are authorized to determine the method and manner in which to administer the civics test, and students may retake the test until obtaining a passing score.

First sponsor: Sen. Yarbrough     

S1029:    GRADUATION REQUIREMENT; CIVICS TEST    1/15    See H2064.

S1067: UNIVERSITY RESEARCH INFRASTRUCTURE PROJECTS; APPROP            

Appropriates the following amounts to the Arizona Board of Regents in FY2017-18 through FY2047-48 from the general fund for the following universities for lease-purchase capital financing for “research infrastructure” (defined) projects: in FY2017-18, $27.2 million for Arizona State University, $10.2 million for Northern Arizona University, and $30.5 million for the University of Arizona; in FY2018-19 and in each FY after through FY2047-48, $29 million for ASU, $10.9 million for NAU, and $32.7 million for UofA. Lease-purchase financing agreements must be entered into before July 1, 2017 and are subject to specified requirements. State construction sales tax monies accruing to the state for these projects are continuously appropriated to each university. For each FY in which projects are financed and under construction, ABOR is required to submit a report to the Governor and the Legislature containing specified information about the projects.

First sponsor: Sen. Dial     

S1067:    UNIVERSITY RESEARCH INFRASTRUCTURE PROJECTS; APPROP    1/20    referred to Senate educ, appro, fin.

S1075: INSURANCE; UNFAIR CLAIM SETTLEMENT PRACTICES            

The Director of the Department of Insurance is required to take enforcement action whenever there is a violation of unfair claim settlement practices statutes.

First sponsor: Sen. Barto     

S1088: INCOME TAX BRACKETS; INFLATION INDEX            

For each tax year beginning with 2016, the Department of Revenue is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year.

First sponsor: Sen. Lesko     

S1088:    INCOME TAX BRACKETS; INFLATION INDEX    1/28    from Senate fin do pass.

S1133: TPT; MUNICIPALITIES; CUSTOMER REFUND CLAIMS            

A customer who paid to a “vendor” (defined) an amount equal to a transaction privilege tax that was passed on by the vendor to the customer or who paid a use tax to a vendor is permitted to file a claim for a refund of the tax if the vendor assigns to the customer its right to claim an amount equal to any tax and interest that the vendor could otherwise claim. The process for customers to file claims under these provisions is specified. If a vendor fails or refuses to assign its right to a claim within 60 days of the customer’s written request or if the vendor is no longer in business, the customer may provide the Department of Revenue or municipal tax collector with a statement explaining the efforts made to obtain an assignment from the vendor, which must contain specified information. The Dept or tax collector must attempt to notify the vendor of the claim and continue processing the claim. On paying or crediting monies to the customer pursuant to the claim, the Dept or tax collector must amend the vendor’s returns or account to reflect the amount paid or credited. The Dept or tax collector may disallow a claim filed by a customer if the Dept already paid or credited a refund arising from the same transaction. The Dept or tax collector is required to notify the customer and the vendor of any disallowed claim.

First sponsor: Sen. Lesko     

S1133:    TPT; MUNICIPALITIES; CUSTOMER REFUND CLAIMS    1/22    referred to Senate fin.

S1285: JOB TRAINING; STIPENDS; STEM; INTERNSHIPS            

The Arizona Job Training Program is required to provide internship opportunities for students and educators in science, technology, engineering and mathematics fields. Applicants for internship opportunities with businesses in the science, technology, engineering and mathematics fields are permitted to apply each fiscal year for up to $5,000 from the Arizona Job Training Fund for each high school and undergraduate student and up to $8,000 from the Fund for each graduate student or educator. A minimum of 50 percent of the monies remaining in the Fund after the statutorily required appropriations are made must be used to provide internship stipends.

First sponsor: Sen. Yee     

S1285:    JOB TRAINING; STIPENDS; STEM; INTERNSHIPS    1/29    referred to Senate com-work dev.

S1308: RETURN TO WORK PROGRAM            

The Department of Economic Security is required to establish a return to work program to provide a supervised training opportunity to individuals for 20 to 32 hours per week for up to 6 weeks through employers that volunteer to participate in the program. Individuals participating in the program continue to receive unemployment compensation. Establishes requirements for employers and individuals participating in the program. The Dept is prohibited from spending monies on the program unless authorized by legislative appropriation. The program ends July 1, 2025.

First sponsor: Sen. Cajero Bedford