Pub. 9 2019 Issue 2

22 www.azbankers.org Under the Copper Dome L AWMAKERS FORMALLY ADJOURNED SINE DIE AT 12:58 AM ON TUESDAY, MAY 28, 2019. AT 135 DAYS, THE 2019 REGULAR SESSION MARKS THE LONGEST OF GOV. DOUG DUCEY’S TENURE. IN TOTAL, 1,318 BILLS AND 100 MEMORIALS AND RESOLUTIONS WERE INTRODUCED THIS SESSION. 331 BILLS RECEIVED FINAL PASSAGE. THIS SESSION THE GOVERNOR SIGNED 320 BILLS INTO LAW AND VETOED 11. THE GENERAL EFFECTIVE DATE FOR ALL NON- EMERGENCY MEASURES IS AUG. 27, 2019; BILLS CONTAINING AN EMERGENCY CLAUSE TAKE EFFECT IMMEDIATELY UPON SIGNATURE. There’s nothing more critical to Arizona’s future than water. So, perhaps it’s appropriate the first major action taken by lawmakers and Governor Ducey this year was their bipartisan approval of the Drought Contingency Plan. Policymakers and water managers hope the plan will help stave off more severe future water shortages with - in the Colorado River Basin. Following approval of the DCP, not much else went quite as smooth - ly at the State Capitol. No surprise there. Following the 2018 elec - tion, the GOP clung to control of the House (31R-29D) and Senate (17R-13D) by the narrowest of margins. The result had Democrats feeling empowered and GOP legislative leaders struggling to navi - gate a new, more challenging political environment. The post-DCP harmony didn’t last long, as the Governor bucked his party with his veto of a GOP-backed tax conformity bill. Legisla - tive Republicans unanimously favored the legislation, which would have conformed Arizona’s income tax code to federal law while cutting rates to offset the loss of deductions resulting from President Trump’s tax plan. Gov. Ducey preferred that any extra revenue be used to bolster Arizona’s Rainy Day Fund – a backstop reserve in case of future economic downturns. Ultimately, the fight over conformity was resolved via the budget. So was the Wayfair dispute, which refers to the 2018 U.S. Supreme Court decision authorizing the collection of sales tax on retail purchases made via out-of-state sellers and marketplace facilitators (think: eBay). Yes, you’ll pay a bit more to buy online. Yes, brick- and-mortar Arizona retailers are relieved to finally compete on a fair playing field. Conforming to federal tax law and approving the Wayfair legisla- tion generates extra dollars for State coffers, which legislators offset with $325 million in income tax reductions. The cuts were a key sticking point between the parties as the budget became an all-GOP affair and was passed on party lines. In total, legislators backed an $11.8 billion spending plan for FY 2020 – a budget that adds more than half a billion dollars in added funds for K-12 education, including another 5 percent bump in