New Bill to Keep Cities, Town Sticking to State Law
By: Lorin McLain
The Arizona Senate’s leading member wants to make sure local governments stick to state laws. A bill introduced this week by Senate President Andy Biggs could keep any Arizona city or municipality from receiving state-shared revenue if they pass an ordinance or regulation that’s viewed as conflicting with state law.
The legislation comes right on the heels of Governor Doug Ducey’s inaugural State of the State address last month. He proposed withholding tax money from cities and towns that enact their own wage and employment laws. Ducey pledged to “use every constitutional power of the executive branch and leverage every legislative relationship to protect small businesses and the working men and women they employ, up to and including changing the distribution of state-shared revenue.”
Senate Bill 1487 would allow any member of the state legislature to order the attorney general to look into a suspected violation. If the local government was found guilty of such a violation and it was not addressed, the state treasurer could withhold state-shared funds until the issue was resolved. The sticking point of some local leaders is part of the law that redistributes money withheld from one government to another municipality, in proportion to its population. Arizona shares 15 percent of taxes collected on income, sales, and transportation with local governments. The money funds a substantial portion of their budgets.
The League of Arizona Cities and Towns Executive Director Ken Strobeck told the “Arizona Republic,” “We certainly do not like having shared revenue thrown around as a punishment. Strobeck says a problem with the bill is there are questionable legal implications. He argues it leaves thousands of people vulnerable to losing local services because of a decision made by the attorney general, without any argument presented to a judge or deliberating body.
The issue came to the forefront recently in Tempe when a city council initiative to ban plastic bags was shot down after the state legislature passed a bill preventing cities and counties from instituting a tax or ban on plastic bags or other containers. Supporters behind the legislation said it was to protect businesses statewide. A Tempe councilwoman filed a lawsuit to overturn the bill.