ASA Advocacy Brief for March 25

This week will be a busy week for Legislators as both House and Senate committees work to advance bills before the March 29th deadline. So far this session there have been 1,289 bills posted, with 38 bills passed by the Legislature and the Governor signing eight and vetoing one to date. After this Friday’s deadline, the number of inactive or “dead” bills is expected to increase significantly. As we wait for word on the next steps for SB1271, here is an update from our lobbyist team at DeMenna Public Affairs on some of the active bills still working:

HB 2146: CONTRACTS; LICENSURE REQUIREMENTS; WAIVER; APPLICABILITY

In a contract between two or more private parties, the parties are authorized to agree to waive any state, county or municipal laws relating to licensure, certification, registration or other authorization if a list of specified conditions applies. Some exceptions, including for health professions and any regulated practice of law. Status: Introduced; Assigned to House Commerce, Regulatory Affairs; Held in Commerce; Passed Commerce Amended 5-4-0; Passed Regulatory Affairs Amended 4-3-0; Passed Rules; Passed COW; Passed House 32-28; Assigned to Senate Judiciary; Passed Judiciary 4-3-0.

SB 1285: CONSTRUCTION CONTRACTS; PUBLIC WORKS; PAYMENTS

Various changes to statutes relating to public construction contracts. Several sections of statute governing void provisions in public construction contracts are repealed and replaced. The Arizona Department of Transportation (ADOT) or owner of a public building or project is authorized to decline to certify and approve an estimate or portion of a billing or estimate for a list of specified reasons, and to retain 5 percent of all estimates as a guarantee for complete performance of the contract. Establishes a process for the contractor to obtain final payment on final completion of the work. Performance by a contractor, subcontractor or material supplier in accordance with the provisions of a construction contract entitles the contractor, subcontractor or material supplier to payment from the party with whom the contractor, subcontractor or material supplier contracts. A contractor or subcontractor is permitted to suspend performance under a construction contract or terminate a construction contract if ADOT or the building or project owner fails to make timely payment of the amount certified and approved. Status: Introduced; Assigned to Senate Government; Passed Government 7-0-0; Passed Rules; Passed COW Amended; Passed Senate 30-0; Assigned to House Commerce; Passed Commerce Amended 9-0-0; Passed Rules; Retained in COW.

SB 1367: RECONSTRUCTION CONTRACTING; LOCAL TAX; EXEMPTION

The list of items that municipalities and special taxing districts are prohibited from levying a transaction privilege or use tax on is expanded to include gross proceeds of sales or gross income derived from “reconstruction contracting” (defined), unless the “gross building area” (defined) increases by more than 25 percent in the 24 month period before the sale of the real property and the property is sold within 24 months after substantial completion. If a tax is assessed on reconstruction contracting, the speculative builder is authorized to exclude from gross income the “prior value” (defined) allowed for reconstruction contracting in determining taxable gross income. A formula for determining the prior value is specified. Status: Introduced; Assigned to Senate Finance; Passed Finance Amended 9-1-0; Passed Rules; Passed COW Amended; Passed Senate 23-7; Assigned to House Judiciary.

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