AZ Legislative Update 7-02-2021

On Wednesday, the 2021 legislative session wound to a close after 171 days full of high-stakes political feuds, unlikely partnerships, and unusual limitations on public involvement.

It was a year unlike any other at the Arizona Capitol, unpredictable to the end, and not everyone agrees on how it went. Governor Ducey says it was “one of the most successful legislative sessions in recent memory.” Legislative Democrats say it was “a missed opportunity.” Most lawmakers and advocates are just glad it’s over.

In the final days of the session, lawmakers passed almost 40 bills – including the last two pieces of the state budget proposal that had divided House and Senate Republicans last week. A compromise on education policies in the budget brought some changes to the Empowerment Scholarship Account (ESA) program but excluded mandatory civics education on Communism.

Governor Ducey signed the budget shortly before the start of the new fiscal year, which began on July 1. (Click here for details on what’s in the $12.8 billion budget and tax cut package.)

The final budget bills, and many other policies considered this week, sparked debate and passed by a small margin – including limits to the content of government employee training programs, a ban on sending early ballots to voters who didn’t request them, and a new tax option for small businesses that impacts the Proposition 208 education funding stream. Legislative Republicans overcame Democrats’ objections to send two measures to the ballot next year: One will ask voters to give the legislature more authority over voter-approved funding if courts rule the initiative that created it is unconstitutional, and another will ask voters to limit citizen initiatives to just one subject.

Some bills, though, drew bipartisan or even unanimous support – including proposals to sever rapists’ parental rights, fund research on the medical use of marijuana, ensure the State Emergency Council has a seat at the table during statewide emergencies, and require students in 7th-12th grades to learn about the Holocaust and other genocides.

A bipartisan coalition voted to increase daily payments to lawmakers outside Maricopa County to offset costs associated with travel and housing near the Capitol, despite objections from some legislators who believe only voters should increase legislative pay.

Other proposals failed in the rush to the finish line of the legislative process. The House voted down changes to the process of issuing an arrest warrant, a redistribution of the Victims’ Rights Enforcement Fund, and a call for a convention of the states on actions of the federal government. Senators failed to pass changes to election law, increased penalties for damaging monuments, a new tax break for car dealers, and a Constitutional limit on the Governor’s authority during an emergency.

Bipartisan opposition prevented votes on bills to reduce the Arizona Corporation Commission’s authority over renewable energy policy and a proposal to allow loaded guns in cars on school grounds. House Speaker Rusty Bowers (R-Mesa) quietly blocked an attempt to override Governor Ducey’s earlier veto of a technical corrections bill.

Both the House and Senate ended the session by repealing the emergency rules they adopted at the start of the session, ending the option for legislators to vote remotely and fully reopening the buildings to the public.

Priority Bills

This week, the House voted 31-28 in favor of SB 1572 (schools; early literacy), which creates new literacy assessment and teacher training programs. The Senate voted 17-12 in favor of the bill and sent it to the Governor.

The House and Senate voted on party-lines to approve SB 1783 (small businesses; alternate income tax), which creates an alternate income tax for small businesses that would minimize their individual income tax liability under Proposition 208 and result in reduced revenues for education, and sent the bill to the Governor.

What’s Next?

The legislative session may be over, but policymaking will continue through the rest of the year. This year’s new laws created a variety of study committees and task forces charged with studying potential policy changes for next year. The Finance Advisory Committee will meet this summer and this fall to update lawmakers on the state’s economy. State agencies will adopt rules to implement the statutory changes enacted this year. And at the Capitol, lawmakers will be hard at work crafting the bills they plan to introduce next year when the whole process starts again.

Arizona’s New Laws

Legislators introduced a staggering 1,774 bills this year. Less than 27% of those passed the House and Senate, and so far, Governor Ducey has signed 412 of them. He has ten days to act on another 61 bills on his desk.

Unless the legislature specifically included a date for new laws to go into effect, they will become law on September 29, 2021 – 90 days after the end of the 2021 session.

Governor Repeals Some COVID-19 Executive Orders

This morning, Governor Ducey issued an Executive Order that aligns his earlier COVID-19 Executive Orders with new laws the legislature passed this year. It immediately ends on-the-job training for caregivers in assisted living facilities, waived co-pays for COVID-19 vaccinations (the co-pay waiver is now federal law), and a deferral of licensing renewals and continuing education requirements for professional licenses. (Deferrals granted under the Executive Order will continue.) It also waives an Executive Order that governed school operations in the last academic year.

The Executive Order also schedules the repeal of more COVID-19 Executive Orders:

• On July 9, Executive Orders to expand pharmacists’ authority to provide medication refills, allow restaurants to sell groceries, and defer driver’s license renewals will be rescinded.
• On September 29, when new statutes that ban mask mandates become law, Executive Orders that prohibit the closure of essential services, limit business occupancy and attendance at sporting events, limit local government mask mandates and vaccine requirements, address school mask requirements, and ban university COVID-19 mitigation mandates will be rescinded.

The Governor will repeal his Enhanced Surveillance Advisories after the Department of Health Services establishes rules to continue collection of relevant information from hospitals and health care organizations. That repeal will also end a requirement that insurers reimburse out-of-network providers for flu and COVID-19 vaccines.

The Governor did not repeal his COVID-19 emergency declaration.

In the Elections

Businessman Steve Gaynor (R) and Representative Aaron Lieberman (D) joined the crowded race for Governor. Advertising executive Beau Lane (R) jumped into the race for Secretary of State. Senator David Livingston (R) wants to be the next State Treasurer.

The Senate’s recount of Maricopa County’s 2020 ballots is done, but its investigation of the ballots continues in a building without air-conditioning at the State Fairgrounds. Maricopa County said it won’t reuse the vote-counting machines that were part of the ballot recount. The Cyber Ninjas are going to court over their records on the recount of Maricopa County’s 2020 ballot. Some Republican lawmakers want the U.S. Department of Justice to stay out of state election oversight.

In the Courts

The Arizona Supreme Court affirmed legislative immunity, but with limits. The U.S. Supreme Court upheld Arizona’s voting laws. Governor Ducey and other Republican governors don’t want more seats on the U.S. Supreme Court. The Maricopa County Superior Court wants to know what you think about its judicial candidates.

In the News

The Arizona Department of Health Services has a five-year Health Improvement Plan. Governor Ducey wasn’t invited to the White House discussion on wildfires in western states. The First Lady visited an Arizona vaccination site.

On the Bright Side…

Gwen finally got her dream job.