ARIZONA HOUSE OF REPRESENTATIVES - Arizona Legislature



ARIZONA HOUSE OF REPRESENTATIVESFifty-third Legislature - First Regular SessionMAJORITY CAUCUS CALENDARFebruary 28, 2017Bill NumberShort TitleCommitteeDateActionCommittee on AppropriationsChairman:Don Shooter, LD13Vice Chairman:David Livingston, LD22Analyst:Jennifer ThomsenIntern:Marlee McCormickHB 2074appropriation; fairgrounds; preservation; historic buildingsSPONSOR:CLARK, LD24HOUSEAPPROP2/22DPA(12-0-0-2-0)(Abs: RIVERO,UGENTI-RITA)HB 2524nonprofit cooperative corporationsSPONSOR:BOWERS, LD25HOUSEAPPROP2/22DP(8-2-1-3-0)(No: FERNANDEZ,FRIESE; Abs: CLARK,RIVERO,UGENTI-RITA; Present: NORGAARD)HCR 2029signatures; initiative; referendum; legislative districtsSPONSOR:SHOOTER, LD13HOUSEAPPROP2/22DP(8-4-0-1-1)(No: ALSTON,CLARK,FERNANDEZ,FRIESE; Abs: RIVERO; Exc: CARDENAS)Committee on CommerceChairman:Jeff Weninger, LD17Vice Chairman:Jill Norgaard, LD18Analyst:Diana ClayIntern:James Garret MooneyHB 2234lottery; software applicationsSPONSOR:WENINGER, LD17HOUSECOM1/31DP(6-3-0-0-0)(No: ESPINOZA,EPSTEIN,CH?VEZ)Committee on EducationChairman:Paul Boyer, LD20Vice Chairman:Douglas Coleman, LD16Analyst:Aaron WondersIntern:Andrew BadertscherHB 2210college readiness; assessments (APPROP S/E: college-readiness exam; pilot program)SPONSOR:CARTER, LD15HOUSEED2/13DPA/SE(10-1-0-0-0)(No: NORGAARD)APPROP2/22DPA/SE(12-0-0-2-0)(Abs: RIVERO,UGENTI-RITA)Committee on Judiciary and Public SafetyChairman:Eddie Farnsworth, LD12Vice Chairman:Anthony T. Kern, LD20Analyst:Katy ProctorIntern:Sue LuntHB 2504public accommodation; disability; discrimination; sanctionsSPONSOR:SYMS, LD28HOUSEJPS2/15DPA(9-0-0-0-0)Committee on Military, Veterans and Regulatory AffairsChairman:Jay Lawrence, LD23Vice Chairman:Mark Finchem, LD11Analyst:Brittany GreenIntern:Maddison PowersHB 2342veterans' services; benefits counselors; appropriationSPONSOR:ANDRADE, LD29HOUSEMVRA2/6DP(7-2-0-0-0)(No: FINCHEM,KERN)APPROP2/22DP(12-1-0-1-0)(No: BOWERS; Abs: RIVERO)Committee on Ways and MeansChairman:Michelle B. Ugenti-Rita, LD23Vice Chairman:Vince Leach, LD11Analyst:Michael MaddenIntern:Edith LefevreHB 2492jobs; incentives; credits; grantsSPONSOR:WENINGER, LD17HOUSEWM2/15DPA(5-4-0-0-0)(No: BOLDING,CARDENAS,KERN,EPSTEIN)center-45775200ARIZONA HOUSE OF REPRESENTATIVESHB 2074: appropriation; fairgrounds; preservation; historic buildingsPRIME SPONSOR: Representative Clark, LD 24BILL STATUS: Caucus & COWAPPROP: DPA (12-0-0-2)AbstractRelating to an appropriation to the Exposition and State Fair Board.ProvisionsAppropriates $1,000,000 $200,000 from the GF in FY 2018 to the Exposition and State Fair Board (Board) for the preservation and renovation of historic buildings under the board's control ON THE ARIZONA OR NATIONAL REGISTER OF HISTORIC PLACES. (APPROP)REQUIRES THE BOARD TO CONSULT WITH THE STATE HISTORIC PRESERVATION OFFICER BEFORE SPENDING ANY APPROPRIATED MONIES. (Sec. 1) (APPROP)Current Lawcenter7982585? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NoteThe Exposition and State Fair Board is the custodian of the 96-acre State Fairgrounds and Memorial Coliseum properties. The board has exclusive custody and direction of all state fair property and must construct and maintain any necessary improvements (A.R.S § 3-1003).32575501524000Legend:Amendments – BOLD and Stricken (Committee)00Legend:Amendments – BOLD and Stricken (Committee)2362200-50679100ARIZONA HOUSE OF REPRESENTATIVESHB 2524: nonprofit cooperative corporationsPRIME SPONSOR: Representative Bowers, LD 25BILL STATUS: Caucus and COWright1563370Legend:Commission – Arizona Corporation CommissionAmendments – BOLD and Stricken (Committee)00Legend:Commission – Arizona Corporation CommissionAmendments – BOLD and Stricken (Committee)APPROP: DP 8-2-0-3-1AbstractRelating to nonprofit cooperative corporations. ProvisionsStipulates any rate, fare, toll, rental or charge increase by a public service corporation is presumed justified if affirmed by a vote of the board of directors of a member-owned nonprofit cooperative corporation. (Sec. 1)Requires the Commission to promptly adopt rules providing for simplified filing requirements and procedures for rate filings by member-owned nonprofit cooperative corporations. (Sec. 2)Exempts member-owned nonprofit cooperative corporations from: Regulations pertaining to the disposition of public service corporations and acquisition of capital stock from other public service corporations; and (Sec. 3)Regulations pertaining to issuance of stocks and bonds by public service corporations. (Sec. 4)Stipulates charges, rules and regulations set by a public service corporation are presumed just and reasonable if affirmed by vote of the board of directors of a member-owned non-profit cooperative corporation. (Sec. 5)Makes technical changes. (Sec. 1, 2, 3, 4)Current Lawcenterbottom? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NotePublic service corporations are prohibited from increasing any rate, fare toll, rental or charge, except on a showing before and a finding by the Commission that an increase is justifiable. (A.R.S. § 40-250). Additionally, public service corporation charges, rules and regulations are required to be just and reasonable (A.R.S. § 40-361). The Commission is directed to promptly adopt rules providing for simplified filing requirements and procedures for rate filings by utilities whose annual operating revenues do not exceed $250,000 (A.R.S. § 40-256). Telecommunication corporations whose retail telecommunications services are all classified as competitive by the Commission are exempt from regulations pertaining to disposition of public service corporations and acquisition of capital stock from other public service corporations (A.R.S. § 40-285). Additionally, foreign public service corporations providing communications service within Arizona are exempt from regulations pertaining to issuance of stocks and bonds by public service corporations (A.R.S. § 40-301). center-47989500ARIZONA HOUSE OF REPRESENTATIVESHCR 2029: signatures; initiative; referendum; legislative districtsPRIME SPONSOR: Representative Shooter, LD 13BILL STATUS: HYPERLINK "" \o "Bill Status Inquiry"Caucus and COW34334451543685Legend:SOS – Secretary of StateAmendments – BOLD and Stricken (Committee)00Legend:SOS – Secretary of StateAmendments – BOLD and Stricken (Committee)APPROP: DP 8-4-0-1-1 AbstractRelating to a referendum to the voters pertaining to initiatives and referendums.ProvisionsUpon voter approval:Restricts, for initiatives, the right to propose any statewide measure to 10% of the qualified electors from each of the legislative districts.Restricts, for initiatives, the right to propose any amendment to the Arizona Constitution to 15% of the qualified electors from each of the legislative districts.Restricts, for referendums proposed by the electorate, the right to propose a measure to the voters to 5% of the qualified electors from each legislative district. Directs the SOS to submit the proposition to the voters at the next general election.Current LawArticle IV, Part 1, Section 1 of the Arizona Constitution gives the Legislature the power to enact laws, and reserves to the people the power to initiate laws and constitutional amendments and to approve or disapprove laws passed by the Legislature.Under the initiative power, Arizona voters can suggest changes to the State Constitution or statutes by filing with the SOS a petition that sets forth the title and full text of the proposed measure. A number of registered voters equal to at least 10% of the total number of votes cast for all candidates for the office of Governor at the preceding general election must sign a petition to propose a statutory change. For a constitutional amendment, at least 15% of such electors must sign the petition for the measure to qualify for placement on the ballot. Persons who gather signatures on initiative petitions must be residents of Arizona and must be qualified to register to vote.The referendum power allows the people to voice their approval or disapproval of laws or parts of laws passed by the Legislature. To allow the referendum process to occur, the State Constitution provides that ordinary acts passed by the Legislature do not go into effect for 90 days after the close of the legislative session. Some laws, however, such as those that require earlier operation to preserve the public peace, health or safety or those that provide for the support and maintenance of state agencies, are not subject to the referendum power and take effect immediately. A number of registered voters equal to at least 5% of the total number of votes cast for all candidates for the office of Governor at the preceding general election must sign a referendum petition. Completed petitions must be filed with the SOS no later than 90 days after the adjournment of the session of the Legislature that passed the measure being referredcenter8010525? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note2362200-44077400ARIZONA HOUSE OF REPRESENTATIVESHB2234: lottery; software applicationsPRIME SPONSOR: Representative Weninger, LD 17BILL STATUS: Caucus and COWCOM: DP 6-3-0-032575501524000Legend:Commission – Arizona State Lottery CommissionDirector – Executive Director of the Arizona State Lottery CommissionAmendments – BOLD and Stricken (Committee)00Legend:Commission – Arizona State Lottery CommissionDirector – Executive Director of the Arizona State Lottery CommissionAmendments – BOLD and Stricken (Committee)AbstractRelating to lottery software applications. ProvisionsPermits the ordering of a lottery ticket through a software application where a paper lottery ticket is produced by a licensed lottery retailer. (Sec. 1)Classifies the ordering of a lottery ticket through a software application as regulated gambling. (Sec. 1)Defines software application. (Sec. 1)Current Lawcenter7982585? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NoteAny person in business exclusively as a lottery sales agent is prohibited from being issued a license to sell lottery tickets. Before issuing a license as a lottery sales agent, the Director is required to consider: 1) the financial responsibility and security of the person, and the nature of the person's business activity; 2) the person's background and reputation in the community; 3) the accessibility of the person's place of business and; 4) the accessibility of existing licensees to serve the public (A.R.S. § 5-562). It is not unlawful to participate in regulated gambling conducted in accordance with the statutes, rules or orders governing gambling (A.R.S. § 13-3302). The Commission or Director is prohibited from establishing or operating any online or electronic keno game (A.R.S. § 5-554). 2362835-44153900ARIZONA HOUSE OF REPRESENTATIVESHB 2210: college readiness; assessmentsPRIME SPONSOR: Representative Carter, LD 15BILL STATUS: Caucus & COWED: DPA/SE 10-1-0-0APPROP: DPA/SE 12-0-0-2AbstractRelating to a college-readiness examinations pilot program. ProvisionsRequires ADE to establish a one-year pilot program in School Year 2018 that allows selected public high schools to administer a nationally recognized college-readiness examination consisting of tests in English, reading, writing, mathematics and science to all 11th grade students. (Sec. 1) (APPROP)Directs school districts and charter schools to use monies for the distribution of the science portion of the state assessment, before using appropriated monies, APPROPRIATED FOR THE 11TH GRADE STATE ASSESSMENT to administer the college-readiness examination. (Sec. 1) (APPROP)Excludes public schools that receive nongovernmental DESIGNATED monies to provide nationally recognized college-readiness examinations from participation (Sec. 1) (APPROP)Permits students to opt out of the pilot program. (Sec. 1) (APPROP)Directs ADE to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives and Secretary of State summarizing the results of the pilot program on or after November 30, 2018. (Sec. 1)Repeals the program on January 1, 2019. (Sec. 1) Appropriates $300,000 in Fiscal Year 2018 from the GF to ADE to pay for any additional costs of administering the pilot program. (Sec. 2) (APPROP)CONTAINS AN INTENT CLAUSE. (Sec. 2) (APPROP)Current Lawcenter7982585? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NoteSBE is required to adopt and implement an Arizona instrument to measure standards test to measure student achievement in SBE adopted standards for reading, writing and mathematics. Any additional high school assessments adopted by SBE after November 24, 2009 are required to be designed to measure student college and career readiness (A.R.S. § 15-741). SBE must also adopt a menu of locally procured assessments to measure student achievement by school year 2018. Every local education agency that offers 9-12 instruction is permitted to select an assessment from the menu that is locally procured instead of the SBE adopted test to measure student achievement (A.R.S. § 15-742.02).32575501617345Legend:ADE – Arizona Department of EducationGF – General FundSBE – State Board of EducationAmendments – BOLD and Stricken (Committee)00Legend:ADE – Arizona Department of EducationGF – General FundSBE – State Board of EducationAmendments – BOLD and Stricken (Committee)2362200-17246800ARIZONA HOUSE OF REPRESENTATIVESHB 2504: public accommodation; disability; discrimination; sanctionsPRIME SPONSOR: Representative Syms, LD 28 32575501501775Legend:ADA – Americans with Disabilities ActAG – Attorney GeneralAmendments – BOLD and Stricken (Committee)00Legend:ADA – Americans with Disabilities ActAG – Attorney GeneralAmendments – BOLD and Stricken (Committee)BILL STATUS: Caucus & COWJPS: DPA 9-0-0-0AbstractRelating to litigation arising from violations of public accommodation and services requirements.ProvisionsLimits who can file a civil action for relief under the public accommodation and services enforcement statutes to a person who is aggrieved. (Sec 1)Requires the act or practice alleged to be in violation to adversely affect the aggrieved person. (Sec 1) Defines monetary damages and such other relief in reference to relief awarded by the court as:Reasonable out-of-pocket expenses;Medical bills; andPain and suffering. (Sec 2)Permits the court to additionally impose a sanction on a plaintiff or plaintiff's attorney if the court finds the action was brought for the primary purpose of obtaining a payment from the defendant due to the costs of defending the action in court. (Sec 2)Allows the court to consider the totality of the abusive litigation-related practices of the plaintiff and plaintiff's attorney. (Sec 2)Allows a portion of the sanction to be paid to the AG. (Sec 2)Requires the AG to use any sanctions received to:Educate about compliance obligations; andAward attorney fees to claimants who file a meritorious complaint with the AG and resolve the complaint without litigation. (Sec 2)STATES THAT IF A NOTICE IS SENT BY AN ATTORNEY REPRESENTING AN AGGRIEVED PERSON ALLEGING A VIOLATION PRIOR TO THE FILING OF A CIVIL ACTION, THE NOTICE MUST INCLUDE:THE DATE THE NOTICE IS SENT;THE APPLICABLE STATUTE;A DESCRIPTION OF EACH BARRIER AND ITS LOCATION;A REASONABLE PERIOD FOR RESPONSE, NOT LESS THAN 60 DAYS AFTER THE NOTICE IS SENT;A SPECIFIC STATEMENT (JPS)PROHIBITS THE FILING OF A CIVIL ACTION BEFORE THE PRESCRIBED RESPONSE TIME OUTLINED IN THE NOTICE, IF NOTICE IS SENT. (JPS)PROHIBITS INCLUDING A REQUEST OR DEMAND FOR MONEY OR AN OFFER OR AGREEMENT TO ACCEPT MONEY IN THE NOTICE. (JPS)ALLOWS THE COURT TO GIVE CONSIDERATION TO ANY PARTY WHO PROVIDES THE NOTICE WHEN DETERMINING THE AMOUNT OF A CIVIL PENALTY. (JPS)ESTABLISHES AN AFFIRMATIVE DEFENSE IN ANY CIVIL ACTION RELATED TO A VIOLATION IF THE DEFENDANT DEMONSTRATES:THE BARRIER HAS BEEN REMOVED IN A WAY THAT COMPLIES WITH THE ACCESSIBILITY REQUIREMENTS IN LAW;COMPLIANCE IS NOT READILY ACHIEVABLE OR CANNOT BE ACCOMPLISHED THROUGH ALTERNATIVE MEANS; ORTHE ALLEGED BARRIER DOES NOT VIOLATE ACCESSIBILITY REQUIREMENTS IN LAW. (JPS)Contains legislative findings and a severability clause (Sec 3,4)Current Lawcenter7982585? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NoteA.R.S. Title 41, Chapter 9, Article 8 outlines requirements for public accommodation and services. A.R.S. § 41-1492.02 states that no individual may be discriminated against on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages or accommodations of any place of public accommodation by any person who owns, leases to others or operates a place of public accommodation. This section outlines specific discriminatory acts and requirements for compliance. All public buildings and facilities are required to comply with the ADA (A.R.S. § 41-1492.01), building codes must reflect all standards and specifications as outlined in law (A.R.S. § 41-1492.03), new-build construction and existing facility changes must meet requirements (A.R.S. § 41-1492.04) and no individual may be discriminated against in the use of public transportation by a private entity (A.R.S. § 41-1492.05). Definitions for terms used in this Article, including public accommodation, disability and public entity are provided in A.R.S. § 41-1492. Enforcement of these requirements may be accomplished through civil action. A person who believes that a covered person or entity has engaged in or will engage in an illegal act or practice as outlined above may file a civil action for preventative or mandatory relief (A.R.S. § 41-1492.08). The AG is required to investigate alleged violations and if the AG determines reasonable cause exists, the AG must seek a conciliation agreement for up to 30 days. If no agreement can be reached, the AG will file a civil action. A.R.S. § 41-1492.09 grants the court several options to address violations, including granting equitable relief and awarding monetary damages that do not include punitive damages. If the AG brought the action, the court may also impose a civil penalty of $5,000 for a first violation and $10,000 for any subsequent violation. The court is required to consider good faith attempts and efforts to comply by an entity in assessing penalties. The prevailing party may also recover reasonable attorney fees (does not apply if the AG is the prevailing party).2362835-44183800ARIZONA HOUSE OF REPRESENTATIVESHB 2342: veterans' services; benefits counselors; appropriationPRIME SPONSOR: Representative Andrade, LD 29BILL STATUS: Caucus and COWMVRA: DP (7-2-0-0)APPROP: DP (12-1-0-1)right1523365Legend:GF- General FundFY- Fiscal YearFTE- Full-time EquivalentADVS –Arizona Department of Veterans' ServicesAmendments – BOLD and Stricken (Committee)00Legend:GF- General FundFY- Fiscal YearFTE- Full-time EquivalentADVS –Arizona Department of Veterans' ServicesAmendments – BOLD and Stricken (Committee)AbstractRelating to an appropriation to the Arizona Department of Veterans' Services.ProvisionsAppropriates $500,000 from the GF in FY 2018 to ADVS to hire 10 FTE Veteran Benefits Counselors. (Sec. 1)Current Lawcenter7982585? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal NoteNot currently addressed in statute.Additional InformationVeteran Benefits Counselors from ADVS provide information, counseling and assistance to veterans, their dependents and survivors in matters of federal and state benefits earned by honorable service in the U.S. Armed Forces. (Arizona Department of Veterans' Services)2362200-49313400ARIZONA HOUSE OF REPRESENTATIVESHB 2492: jobs; incentives; credits; grants32569151584960Legend:ACA – Arizona Commerce AuthorityADOR – Arizona Department of RevenueFund – Job Creation FundR&D – Research and DevelopmentTPT – Transaction Privilege TaxAmendments – BOLD and Stricken (Committee)00Legend:ACA – Arizona Commerce AuthorityADOR – Arizona Department of RevenueFund – Job Creation FundR&D – Research and DevelopmentTPT – Transaction Privilege TaxAmendments – BOLD and Stricken (Committee)PRIME SPONSOR: Representative Weninger, LD 17BILL STATUS: Caucus and COWWM: DPA (5-4-0-0)AbstractRelating to tax credits, exemptions and grants for R&D and job creation.ProvisionsR&D Tax Credit (Sec. 1,4,10,11)Allows a taxpayer to forego R&D credit carry forward and instead convert a portion of the unused balance of the credit to:offset their TPT liability for enhancement projects in the state; orreceive reimbursements for infrastructure improvements and other capital expenditures associated with enhancement projects.Limits the amount that may be converted to 50% of the tax credit amount requested.The remaining 50% of the unused credit is waived upon approval of the conversion.Stipulates that a taxpayer must employ 2,000 employees in Arizona to be eligible for the conversion.Continues the current R&D tax credit amount in TY 2018 and beyond.The current rates are set to decrease in TY 2018.Directs the ACA to receive and evaluate applications for R&D credit conversion.Prohibits the conversion of expired tax credits and conversion of more than $2,500,000 each year per applicant.Specifies that the oldest unused credit carry forward is to be used first.Prescribes format requirements for the ACA conversion application.Requires the applicant to pay a nonrefundable processing fee along with the application, in an amount to be determined by the ACA. (WM)Directs the ACA to process and evaluate each application and within 30 days, notify the applicant of:approval for conversion and respective issuance of a conversion certificate; orThe applicant must present the certificate to ADOR for conversion of the full amount as a lump sum.failure to qualify, along with specific reasons for failure.Clarifies that failure to qualify doesn't preclude a subsequent application.Caps the aggregate amount of credit that may be converted each FY at $10,000,000.Conversions are granted on a first-come, first-served basis in order of application date.If unused balance remains below the cap at the end of the year, the balance rolls over to add to the conversion cap in the following year.Job Creation Fund Grants (Sec. 1,9)Allows an Arizona basic enterprise to qualify for a grant from the Fund, not exceeding 3.5% of the applicant's qualifying payroll in the calendar year the grant was made.Specifies that any monies awarded from the Fund are at the discretion of the Chief Executive Officer. (WM)Limits the total number of grants that may be awarded to the available balance in the Fund.Requires applicants to file an application with the ACA and prescribes format requirements for the application form.Specifies the following eligibility criteria for a grant:The applicant must add at least 50 qualified full-time jobs within 36 months after the date of application submittal.The applicant must qualify as an Arizona basic enterprise. Directs the ACA, upon receiving a completed application, to:deny the grant if the applicant doesn't meet eligibility requirements; orif approved, collect a nonrefundable processing fee to be determined by the ACA and issue a certification letter stating that the applicant is preapproved for participation in a job creation payroll refund. (WM)Stipulates that it is the Legislature's intent that the collected fee be no more than 2% of the highest possible amount of incentive that a business may qualify for. (WM)Stipulates that, upon satisfaction of eligibility requirements, the applicant must file a request for postapproval, including documentation to validate the satisfaction of the minimum requirements.Allows a business that receives postapproval to claim a grant for 10 calendar years, starting with the year the postapproval was issued.Prohibits the business from receiving a grant in any year that the business fails to maintain minimum eligibility requirements. However, this doesn’t preclude the business from receiving monies in future years when the eligibility requirements are met.Stipulates that any period of two consecutive years of ineligibility automatically disqualifies the business from receiving grants, but does not prevent the business from reapplying in the future.Describes the grant calculation schedule for each business over the 10 years of the grant.Directs each business to report and certify specified employment and payroll information to the ACA between January 2nd and February 15th of the year immediately following each year any grant money is claimed.Requires each business to include, with the information required above, a sworn statement or certification, signed by an officer of the business, under penalty of perjury attesting the information reported is true and correct.If any information of the information provided is materially false, the business is ineligible for grant monies and is subject to recovery of grant monies awarded in the preceding year.Requires the ACA, upon verification of all reported information from a business, to issue:a letter to the business stating the amount of award monies to be granted for the year; andpayment of the award monies to the business.Authorizes the ACA to make site visits to a business to further document and clarify reported information.Directs the ACA to prescribe any additional necessary reporting requirements by rule.Establishes the Fund, consisting of withholding tax revenues allocated from the Job Creation Withholdings Clearing Account, gifts, grants, donations and any other amounts dedicated to the Fund by law.Requires the Chief Executive Officer of the ACA to administer the Fund.Allows monies credited to the Fund to be deposited in the state Treasury or in a bank or other depository.Requires, upon notice from the Chief Executive Officer, the state Treasurer to invest and divest monies in the Fund as provided by statute. Monies earned from investment are credited to the Fund.Exempts the Fund from laws relating to the lapsing of appropriations. (WM)Requires the Job Creation Withholdings Clearing Account to hold $24,500,000 for each FY after FY 2017.Requires the state Treasurer to deposit $3,000,000 each year from the Job Creation Withholdings Clearing Account to the Fund.TPT/Use Tax/Municipal Tax Exemption (5,6,7)Exempts 45% of the gross proceeds of sales or gross income derived from the sale of supplies used directly in manufacturing, processing or fabricating operations or in a clean room environment from TPT, use tax and municipal tax.Defines supplies as tangible personal property, other than machinery or equipment, that meets one of the following conditions:Is attached to machinery or equipment and requires regular replacement due to consumption or deterioration;Is used in conjunction with machinery or equipment and is specially designed for use in manufacturing specific products or in processing or fabricating operations and may be used interchangeably and intermittently on a particular machine or piece of equipment. This does not include hand tools;Comes into physical contact with other tangible personal property used in manufacturing, processing or fabricating and is used to assist with or maintain necessary conditions, including cutting fluids, oils, coolants, lubricants and other similar items; orIs used solely to maintain the integrity of the product or to maintain unique environmental conditions. This excludes property used for worker comfort or safety.Specifies that this exemption expires on January 1 of the year following the calendar year in which the aggregate amount exempted by all taxpayers throughout the year exceeds $6,000,000.Accelerated Depreciation (Sec. 8)Allows for accelerated depreciation of class six personal property, classified during or after TY 2018, that was acquired during or after TY 2017.Quality Jobs Tax Credit (Sec. 2) (WM)Continues the Quality Jobs Tax Credit indefinitely. Modifies requirements for eligibility as follows:Minimum Capital InvestmentMinimum Number of New JobsPercent of County Median WageUrban Location$5,000,00025100%$2,500,00025125%$1,000,00025150%$500,00025200%Rural Location$1,000,0005100%$500,0005125%$100,0005150%MiscellaneousDefines terms. (Sec. 1,5,6,7)Contains an effective date of January 1, 2018. (Sec. 12)Makes enactment of TPT and use tax provisions conditional upon the enactment of SB 1010. (Sec. 13)Makes technical and conforming changes. (Sec. 2,4,5,6,8,10,11) (WM)Current LawThe R&D Tax Credit Program provides a corporate or individual income tax credit for qualified research expenses. The credit is based on the amount of the taxpayer’s qualifying research expenses in Arizona and is directly tied to the federal credits for the purpose of determining qualified R&D expenses under the credit provisions. For TY 2011 through TY 2017, the credit is equal to 24% of the first $2.5 million in qualifying expenses, plus 15% of the amount exceeding $2.5 million. In TY 2018 and beyond the credit is equal to 20% of the first $2.5 million in qualifying expenses, plus 11% of the amount exceeding $2.5 million. Additional credit is available if a taxpayer makes basic research payments during the TY to a state university. The tax credit is nonrefundable, but a qualifying taxpayer that employs less than 150 full-time employees worldwide may submit an application for a refund to the Arizona Commerce Authority (A.R.S. §§ 41-1507, 43-1074.01 & 43-1168). Laws 2011, Second Special Session, Chapter 1 established the Quality Jobs Tax Credit, providing a tax credit to employers that make a minimum capital investment and create a minimum number of new qualified jobs in the state. Qualified taxpayers receive a tax credit of $3,000 annually for the first three years of a new employee’s time of employment. The credit may be taken as an insurance premium tax credit, or individual or corporate income tax credit (A.R.S. §§ 20-224.03, 41-1525, 43-1074 & 43-1161).Additional InformationTPT is imposed on a vendor for the privilege of conducting business in Arizona. Under this tax, the seller is responsible for remitting to the state the entire amount of tax due based on the gross proceeds or gross income of the business. While the tax is commonly passed on to the consumer at the point of sale, it is ultimately the seller’s responsibility to remit the tax.Use tax is assessed on items purchased in other states and brought into Arizona for storage, use, or consumption and for which no tax or a tax at a lesser rate has been paid in another state.? Use tax is imposed on all transactions in which TPT was notleftbottom? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note00? Prop 105 (45 votes) ? Prop 108 (40 votes) ? Emergency (40 votes)? Fiscal Note. ................
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