Weekly Legislative Reports

Governor Ducey followed up on his State of the State address by releasing his FY 20-2021 budget detailing his proposals for the session last Friday. The Governor believes his proposal is fiscally conservative, balanced, and supportive of Arizona’s priorities: K-12 education, child safety, public safety, infrastructure, and workforce development. This week, Governor Ducey’s staff presented his budget to the joint House and Senate Appropriations Committees in an almost three hour hearing to start the short/MLK holiday week. In addition to the Governor’s budget, Senate Republicans also released their budget framework last Friday, aligning closely with Governor Ducey’s. Two of the biggest discrepancies in the Senate Republican’s framework are a $75M ongoing tax cut and a $50M one time tax reduction, but the details of both proposals were not included and simply stated that they would be further discussed during the legislative session.

The 54th Arizona Legislature, 2nd Regular Session, officially began Monday, January 13 with Governor Doug Ducey delivering his sixth State of the State address to the Legislature. The Governor focused on the State’s strong economy bolstered by its pro business climate in which Ducey and legislators continue to find ways to eliminate burdensome regulations and reduce the size of government. Some other key highlights from the Governor’s speech focused on improving the lives of veterans, requiring insurance companies to treat mental health services in the same way as an annual physical, and investing in infrastructure (mostly transportation-related) and education. Bills began to be introduced, including a few of interest to AzTA members.

Today, the Forty-fourth Legislature’s Second Regular Session commenced and Republican Governor Doug Ducey delivered his State of the State address. Beginning his speech, Governor Ducey touted the State’s strong economy in which Arizona household incomes have hit record levels while crime rates throughout the state have declined. Noting that over 70% of adult Arizonans were born elsewhere, he said people are flocking to Arizona due to the open and friendly business environment that Ducey and legislative leadership have helped foster by reducing burdensome regulations over the previous legislative sessions. He said the rest of the country is looking at Arizona as a leader in deregulation, like the universal recognition occupational licensing bill that passed last session, allowing licensed professionals across the United States to bring their skills to Arizona to work.

The 54th Arizona Legislature, First Regular Session, concluded its business by adjourning sine die at 12:58 a.m. on Tuesday, May 28. The session lasted 135 days, quite a bit longer than in recent years, and produced 1,318 bills, 261 of which have so far been signed into law by Governor Doug Ducey (as of 5/29). Currently, the Governor has vetoed seven bills. By law, the Governor has 10 days after adjournment to take action on all passed legislation.

Budget negotiations continued at the Arizona Legislature this week, meaning that action on remaining non-budget bills (about 250 remain) was quite slow, with normally no more than a relative handful of bills being heard on either floor on any given day. Negotiations continue between the Legislature and Governor Ducey, with reportedly little progress being made on key issues, including how much the State should put into its “rainy day fund.”

The Arizona Legislature is moving at a deliberate pace while budget negotiations continue in both chambers. Most of the action right now is on the Senate or House floor, where about 300 bills remain in the process, needing to be approved by one or both houses before proceeding to the Governor.