The latest activity at the State Legislature

March 26, 2024
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Legislature advances several bills during the last week of committees

It was a busy week at the Arizona Capitol, with a headline-grabbing floor speech on abortionthe sudden and scandal-driven resignation of Rep. Jevin Hodge (D-Tempe), a committee protest of immigration-related bills and the controversial veto of a long-debated bill on statewide housing standards.

The House voted to add a new felony for selling drugs in a homeless service zone, enhance the study of child fatalities, order electricity providers to consider electromagnetic pulses and require someone applying to work at a school to disclose some criminal convictions. 

House Republicans sent another question to the November ballot, asking voters to require life imprisonment for those convicted of child sex trafficking.

What’s Next?

House and Senate Appropriations Committees are the only committees scheduled to meet next week, as legislators turn their attention to final debate and votes on bills that have passed their assigned committee hearings.

There is still no evidence of serious budget talks between Governor Hobbs and Republican legislative leaders.

Budget update: revenues slightly above forecasts

The state brought in $835.2 million in taxes last month – almost 30% more than last February but just $19 million above economists’ revised forecasts. Most of the growth came from individual income taxes: fewer people got refunds this year because of new tax rates and withholding changes. Individual income tax payments dramatically dropped by almost 60% last month, though, preventing further growth in state revenues. 

This is the 12th consecutive month of reductions in individual income tax payments, but the nonpartisan Joint Legislative Budget Committee warns it’s too early in the tax season to tell if that decrease will be a trend for the rest of the fiscal year.

Corporate income taxes were 48.6% lower than last February and almost $10 million less than expected.

Sales taxes climbed just 1% in February because Arizonans shopped and ate in restaurants just a little more than they did in January, but sales taxes on contracting projects grew by a notable 8.4%.

With four months left in this fiscal year, the state has $25 million more than expected but still faces a budget deficit of almost $2 billion. Lawmakers will get more details on state revenues next month when the Finance Advisory Committee meets at the Capitol.

Higher education update 

Last week State Relations provided an update on legislation impacting higher education. Below is a list of the bills still moving through the legislature.

SB1043 - Genetic counselors; licensure (Representative Shope – Casa Grande) 

ABOR/UA Position – Support

Legislative Status – Awaiting vote on the House Floor  

SB1198 - disruption; educational institution; concealed weapon (Senator Rogers – Flagstaff) 

ABOR/UA Position – Oppose 

Legislative Status – Awaiting vote on the House Floor  

SB1304 - ABOR; postsecondary institutions; policies (Senator Kern – Phoenix West Valley)

ABOR/UA Position – Oppose 

Legislative Status – Awaiting vote on the House Floor  

SB1477 - political bias; grade challenge department (Senator Kern – Phoenix West Valley)

ABOR/UA Position – Oppose 

Legislative Status - Awaiting vote on the House Floor  

HB2178 - Universities; student fees; clubs; organizations (Senator Kolodin – Scottsdale) 

ABOR/UA Position – Neutral because the Sponsor Accepted an Amendment 

Legislative Status – Awaiting vote on the Senate Floor  

HB2735 - ABOR; course approval; accounting system (Representative Grantham – Phoenix East Valley) 

ABOR/UA Position – Neutral 

Legislative Status – Awaiting vote on the Senate Floor  

HCR2056 – Preferential treatment; discrimination; prohibition (Representative Montenegro)

ABOR/UA Position – Neutral because the Sponsor Accepted an Amendment 

Legislative Position – Awaiting vote on the Senate Floor