Arizona House of Representatives Committee on Commerce Meeting Minutes and Bill Analyses

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-sixth Legislature, Second Regular Session, held Tuesday, March 19, 2024 in House Hearing Room 3. The meeting convened at 2:08 P.M. and adjourned at 5:23 P.M., with Representative Wilmeth as Chairman and Representative Carbone as Vice-Chairman. The committee action table records SCR1040 (DPA/SE 6-3-0-1), SB1053 (DPA/SE 5-2-2-1), SB1506 (DP 6-3-0-1) and SB1162 (DPA/SE 8-1-0-1). Attachments include the agenda and a Request to Speak report listing registered support and opposition for each bill, including comments on a strike-everything amendment to SCR1040 on tipped workers' wages. The document closes with House amendments to S.B. 1162 on municipal housing needs assessment reports and the roll call vote on SB 1162.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session

COMMITTEE ON COMMERCE
Report of Regular Meeting
Tuesday, March 19, 2024
House Hearing Room 3 -- 2:00 P.M. OR UPON RECESS OR ADJOURNMENT OF FLOOR

Convened 2:08 P.M.

Recessed MINUTES RECEIVED

Reconvened CHIEF CLERK'S OFFICE

Adjourned 5:23 P.M. 3/2 1/ 2 /
Members Present Members Absent

Representative Aguilar

Representative Austin

Representative Carter

Representative Gress

Representative Heap

Representative Hendrix

Representative Lucking

Representative Ortiz

Representative Carbone, Vice-Chairman
Representative Wilmeth, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action

Bill Action Vote Attachments
SCR1i040 DPA/SE 6-3-0-1 4, 5, 6,7
SB1053. DPA/SE 5-2-2-1 8, 9, 10
SB1506 DP 6-3-0-1 11, 12
SB1162  DPA/SE 8-1-0-1 13, 14, 15

Susan Hughes, Committee Secyptary
March 21, 2024

(Original attachments on file in the Office of the Chief Clerk; video archives available at http://Awww.azleg.gov)

COMMITTEE ON COMMERCE
March 19, 2024
REVISED - 3/15/24 REVISED - 3/15/24 REVISED - 3/15/24

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session Cc ONVEN ed: A 10'70M

REGULAR MEETING AGENDA

ay Nt 5123 1M
COMMITTEE ON COMMERCE ft D3 OURNED p

DATE Tuesday, March 19, 2024 ROOM HHR3 TIME 2:00 P.M. or upon recess or
adjournment of Floor

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientiD=6361 162879&eventID=202403 1068

Members:
Representative Aguilar Representative Heap Representative Ortiz
Representative Austin Representative Hendrix Representative Carbone, Vice-Chairman
Representative Carter Representative Lucking Representative Wilmeth, Chairman

Representative Gress

Bills Short Title Strike Everything Title

2 SB1053 WZ ys) / s E metal theft study committee S/E: Arizona-Ireland trade commission

(Carroll)
34 COM, RULES
5tded |
4 *SBI162 yy) 3 £ telecommunications fund; report; posting S/E: residential zoning; housing; assessment;
. (Shamp) hearings
Rf Or

3 SB1506 p municipalities; housing; commercial

redevelopment; zoning

(Shamp: Carroll, Gowan, et al)
é
Gi 304 COM, RULES

} SCR1L040 y p A _ permanent school fund; distribution; uses S/E: tipped workers; wages
(Mesnard)
Gs 3.O+/ COM, RULES
* If first read and assigned
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
¥E
RA

BAB ROU

OV1L5/2024

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 1 of 1

Attachment 2
Information Registered on the Request to Speak System

House Commerce (3/19/2024)

S$B1042, cremation

SB1053, metal theft study committee

Support:
Steve Trussell, AZ ROCK PRODUCTS ASSN; Doris Mills, representing self; Mackenzie Shane, GREATER PHOENIX
CHAMBER OF COMMERCE

All Comments:
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE: Signing in supportive of the striker to $B1053

S$B1162, telecommunications fund: report; posting

Support:

Courtney Gilstrap LeVinus, Arizona Multihousing Association; Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS;
Julie Rees, ARIZONA HOUSING COALITION; Fred Miller, representing self; Courtney Coolidge, AZ CHAMBER OF
COMMERCE; Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Clark Princell, VALLEY
PARTNERSHIP; John Baumer, ARIZONA CHAPTER OF NAIOP

All Comments:

Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS: Supportive of the striker; Courtney Coolidge, AZ CHAMBER OF
COMMERCE: Support the strike everything amendment; Mackenzie Shane, GREATER PHOENIX CHAMBER OF
COMMERCE: Signing in supportive of the striker language to SB 1162; John Baumer, ARIZONA CHAPTER OF NAIOP:
Support the Rep. Gress strike-everything amendment.

SB1506, municipalities; housing; commercial redevelopment; zoning

Support:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Jake Hinman, ARIZONA NEIGHBORHOOD
PROJECT; Gaelle Esposito, ARIZONA NEIGHBORHOOD PROJECT; Harold Bergsma, representing self; Lynn Ludwig,
representing self; Teri Grunewald, representing self; Kristin Baumgartner, representing self; James L Simpson,
representing self; Mary Evelyn Simpson, representing self; Peter Asencio, representing self

Oppose:

Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS, PHOENIX, CITY OF; Mayor Ginny Dickey, representing self;
Jackie Rich, representing self; Kathy Pyner, representing self; Fred Miller, representing self; Catherine Kossler,

Attachment oa
representing self; Kay Bateman, representing self; Clark Princell, VALLEY PARTNERSHIP; John Baumer, ARIZONA
CHAPTER OF NAIOP; Robert Aldous, CASA GRANDE, CITY OF

All Comments:

Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ: support the bill; Mary Evelyn Simpson, Self:
Another adaptive housing bill to potentially help with the housing crisis. | would prefer to see this under local
jurisdiction not the state; Peter Asencio, Self: | am a PC, Husband & Father.; Mayor Ginny Dickey, Self: | agree with
the League's opposition to 1506. Thanks.; Jackie Rich, Self: This bill is drastic overreach. If 75% of commercial,
office, retail or parking is used for residential, where will those nonresidential uses be located? Also no clear
demand for this type of housing and it doesn't need to be affordable.; Kathy Pyner, Self: Micro management;
Catherine Kosster, Self: It forces unrealistic mandates, constrains development flexibility, erodes aesthetic
standards, overlooks parking & public infrastructure considerations, & threatens neighborhood harmony. Let's
maintain local zoning control!; Kay Bateman, Self: Keep Zoning Local

SCR1040, permanent school fund; distribution; uses

Support:

Dan Bogert, AZ RESTAURANT ASSOCIATION; jaime sarli, representing self; Sultan Stipho, representing self; Beth
Cochran, representing self; Don Isaacson, Arizona Licensed Beverage Association; Eric Emmert, Grossman
Properties; Joanne Johnson, representing self; Gary Johnson, representing self; Bill Blewster, representing self;
Randal Scott, representing self; Mark Logan, representing self; Theresa Logan, representing self; Corinne Haynes,
representing self; Marie Isaacson, AZ LICENSED BEVERAGE ASSN; Buffalo Rick Galeener, representing self; Susan
Bolt, representing self; Laura Magnus, EXPERIENCE SCOTTSDALE; Bridget Nelke, representing self; Gary Saxhaug,
representing self; Lynn Ludwig, representing self; Teri Grunewald, representing self; Kristin Baumgartner,
representing self; Carol Kliewer, representing self; Peter Asencio, representing self; Mike Gardner, AZ BEVERAGE
ASSOCIATION; Scott Chance, representing self; Pam Throw, representing self; Bev Miller, representing self;
Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE; Gary Zimmerman, representing self; Luis Acosta,
Arizona Restaurant Association; Jane Evans, representing self; Ryan Larson, representing self; Nicole LaSlavic,
ARIZONA LODGING AND TOURISM ASSOCIATION; Stephanie McQuaid, representing self; Maci Sarli, representing
self; Destiny mcquaid, representing self; Cole Turner, representing self; Natalya Streibich, representing self;
Samantha Klasinski, representing self; Liz Turner, representing self; Daryn Viser, representing self; Steve Chucri,
AZ RESTAURANT ASSOCIATION, Self; Courtney Coolidge, AZ CHAMBER OF COMMERCE; Marlene Leatherwood,
representing self

Neutral:
Shirley Dye, representing self

Oppose:

Mary Ann Graffagnino, representing self; Francisco "Hugo" Polanco, LIVING UNITED FOR CHANGE IN ARIZONA,
Carol Waymire, representing self; Lena Avalos, LIVING UNITED FOR CHANGE IN ARIZONA; Ben Scheel, Opportunity
Arizona; Morningstar Bloom, WORKER POWER; Tracy Gunderson, representing self; Meschelle Hornstein,
representing self; Holly Pablo, representing self; Dave Long, representing self; Steve Ramos, representing self;
Judith Simons, representing self; Janet Larkin, representing self; Steven Linder, representing self; marilyn duerbeck,
representing self; Maria Salvucci, representing self; Kevin Brown, representing self; Beverly Janowitz-Price,
representing self; Eve Shapiro, representing self; Laurie Stoff, representing self; Beatriz Urrea, representing self;
Claudia Bloom, representing self; Wes Oswald, representing self; Sallie Kladnik, representing self; Christina Mollica,
representing self; Dianne Post, representing self; Cynthia Couture, representing self; Carol Maas, representing self;
Sherrilynn James, representing self; Donita Ramos, representing self; Daniella Smith, Arizona Coalition For Working
Families; Darrell Boomgaarden, representing self; Katherine Doman Sheydayi, representing self; Gail Kamaras,
representing self; Charlie Silver, representing self; Barbara Oliver, representing self; Christine Whitley, representing
self; Becky Sayler, representing self; Sally Harvey, representing self; Alexei Sheydayl, representing self; Robin
LaVoie, representing self; Julie Golding, representing self; Christine Keitges, representing self; Jackie Rich,
representing self; David Myers, representing self; Monica Bills, representing self; Erica Hansen, representing self;
Christopher Fallon, representing self; Paisley Rossetti, representing self; Joseph Alexander, representing self; Susan
Cook, representing self; Nicole Fordey, representing self; Lisa Maczura, representing self; Karolyn Switzer,
representing self; Robert Fisher, representing self; Marilyn Murov, representing self; Penny Boone, representing
self; Bryan Lane, representing self; Jim Moran, representing self; Jennifer Dawson, representing self; Robert Larson,
representing self; Linda Paul, representing self; Jacqueline deSa, representing self; Nelson Morgan, representing
self; Libby Stortz, representing self; Steve Gorman-Hackstadt, representing self; Pamela Chittenden, representing
self; Kathleen Woessner, representing self; Linda Edwards, representing self; Diane McQueen, representing self;
Jan Perozeni Corbus, representing self; Pat Jayson, representing self; Barbara Larson, representing self; Sharon
Arnst, representing self; Matthew Nelson, representing self; Kelly Lake-Warnberg, representing self; Kathy Pyner,
representing self; AUCE BUCK, representing self; William S. James, representing self; Eileen Goldman, representing
self; Katharine Donahue, representing self; Sharon Ehrlich, representing self; Lawrence Peters, representing self;
Rebecca Haynes, representing self; Nancy Hancock, representing self; Loretta O'Connor, representing self; Valerie
Policastro Edie, representing self; GARY LEW OLIVER, representing self; Cynthia Wagner, representing self; Linda
Block, representing self; Gayle Meredith, representing self; Nataly Reed, representing self; Marilyn Rodriguez,
Rural Arizona Action (RAZA); Ralph Meredith, representing self; J Nicholas Prestera, representing self; Connie
Cockrell, representing self; Susan Heck, representing self; Margaret Adams , representing self; George Ehriich,
representing self; Margaret Tinsiey, representing self; Lois Hansen, representing self; Aaron Essif, representing self;
Mary Nelson, representing self; Carol Rohe, representing self; antoinette beiser, representing self; Christopher
Cerrato, representing self; Emily Norton, representing self; Jerrold Borchardt, representing self; Dawn Norton LD29,
representing self; Gary Rulapaugh, representing self; Chris Senko, representing self; Kathleen Dubbs, representing
self; leadawn anderton, representing self; Douglas Cain, representing self; Janie Smieszek, representing self; marcia
stewart, representing self; Janet Senf, representing self; Kathleen Schanus-Gohl, representing self; Kathleen Butler,
representing self; Jason Backman, representing self; LINDA GANTVERG, representing self; Anne Leota Hart,
representing self; jo Ann Caruthers, representing self; Nancee K Wood, representing self; Marcia Tingley,
representing self; Marilyn Coyle, representing self; Patricia Brunner, representing self; Patricia Edelen,
representing seif; Carol Garnett, representing self; Rebel Rice, representing self; Mary-Jeanne Fincher,
representing self; JOHN FIENE, representing self; Kirstin Woodburne, representing self; Murdock Holloway,
representing self; Roxanna Kearns, representing self; Stephen Coyle, representing self; Claire Bickel, representing
self; Barbara Rodman, representing self; Claudia Miller, representing self; Alice Patricia Price, representing self;
Donna Walkuski, representing self; Elissa Karn, representing self; Jeannette Scoufos, representing self; Evan Deaubl,
representing self; Lisa Koenig, representing self; Michael Levine, representing self; Elizabeth Brauer, representing
self; Kathy Fraser, representing self; Victor Peterson, representing self; Caroline Anderson, representing self;
Martha O'Connor, representing self; Bart James, representing self; Diane Klock, representing self; Joyce Howard,
representing self; Regina Pennington, representing self; Bonnie Oakes, representing self; Alicia Messing,
representing self; Lori Taniguchi, representing self; Barbara McGill, representing self; Nancy Santori, representing
self; Beth Ballmann, representing self; Eric Harris, representing self; Srinivas Manne, representing self; William
Bowlus-Root, representing self; Margaret Cordovano, representing self; Aaron Torrance, representing self;
Charlotte Lis, representing self; Salie Travis, representing self; Edna Weigel, representing self; Kathryn Dorn,
representing self; Gail Prestera, representing self; Kathleen Sauer, representing self; Roger Blain, representing self;
Carla Roberts, representing self; Fred Miller, representing self; Greg Olszta, representing self; Ginger Lane,
representing self; Crystal Bazarnic, representing self; Laurie Munn, representing self; Katherine Lathrop,
representing self; Frederick James, representing self; Mary Martiniak, representing self; Brenda Hughey,
representing self; Rachel Rulmyr, representing self; Michael Pyska, representing self; Sandra Adler, representing
self; Saher Afzal, representing self; Carolyn Watson, representing self; Teresa Gerschutz, representing self; Erin
McCamish, representing self; Andrea Luna Cervantes, representing self; Carmen Terrell, representing self

All Comments:

Bill Blewster, Self: This just reallocates funding where it belongs.; Randal Scott, Self: Go with this one; Laura
Magnus, EXPERIENCE SCOTTSDALE: Support with the striker amendment; Bridget Nelke, Self: | agree funds should
stay with permanent facilities; Peter Asencio, Self: | am a PC, Father, Husband.; Mike Gardner, AZ BEVERAGE
ASSOCIATION: Support the strike everything amendment.; Pam Throw, Self: permanent funds need to go to
permanent facilities; Bev Miller, Self: it makes sense to use “permanent funds” to be applied to “permanent”
facilities before using them elsewhere; Mackenzie Shane, GREATER PHOENIX CHAMBER OF COMMERCE: Signing in
supportive of the striker language on SCR1040; Gary Zimmerman, Self: Imposes proper priorities on school funds.;
Luis Acosta, Arizona Restaurant Association: N/A; Steve Chucri, AZ RESTAURANT ASSOCIATION, Self: In favor of the
strike everything amendment.; Courtney Coolidge, AZ CHAMBER OF COMMERCE: Support strike everything
amendment; Mary Ann Graffagnino, Self: This bill is so unfair. IT offers absolutely no protection for tipped workers.
Again, POWER AND MONEY AGAINST THE AVERAGE OR POOR PERSON; Francisco "Hugo" Polanco, LIVING UNITED
FOR CHANGE IN ARIZONA: Against the striker; Judith Simons, Self: | strongly oppose this striker as being grossly
unfair to restaurant wait staff in particular.; Laurie Stoff, Self: The striker added to this bill would set restaurant
workers wages UNDER the minimum wage; Beatriz Urrea, Self: This bill purports to protect tipped workers, when
in reality it will result in a decrease of their salaries. Please eliminate this bill!; Claudia Bloom, Self: The only ones
needing a sub-minimum hourly wage are wealthy Republican legislators.; Dianne Post, Self: NO to striker creating
sub minimum wages. | hardly need to say why this is so wrong.; Daniella Smith, Arizona Coalition For Working
Families: Against the striker being offered in House Commerce.; Darrell Boomgaarden, Self: Oppose Striker; Gail
Kamaras, Self: | oppose this striker bill as a hoax on tip wage workers. It does not protect, it scams.; Barbara Oliver,
Self: This bill comes from the lobbyists from restaurant industry. | am firmly against any lobbyist writing bills!
lronically, Th restaurant lobby calls this the “Tipped Workers Protection Act." IT IS NOTI; Christine Whitley, Self: |
vehemently oppose strikers that are not in the public interest. This would create a sub-mininum hourly wage for
tipped employees. This bill supports the restaurant industry and not Arizonans supplying the labor for them.; Robin
LaVoie, Self: | oppose the striker in this bill; Jackie Rich, Self: Give restaurant workers a livable wage so | can stop
tipping so much!!!!; David Myers, Self: Protect workers, not just businesses.; Monica Bills, Self: Protection my ***;
Susan Cook, Self: This is not a good plan for working people.; Lisa Maczura, Self: Opposing the striker. Everyone has
to eat and make rent. And the young people are voting more and more these days...; Karolyn Switzer, Self: This
striker is in no way a "protection" of tipped workers. Those workers deserve a base wage at the current statutory
minimum, not one based on tips. Tips should be an additional reward for for good service.; Penny Boone, Self: NO.
This is a cruel bill that creates more problems and solves none. NO!; Jennifer Dawson, Self: NO STRIKER!! Unfair to
restaurant employees.; Linda Paul, Self: | am opposed to the striker to create a sub minimum wage for tipped
workers. | resent having to tip people for providing service. Just give them a fair wage - don't expect customers to
pick up the slack!; Nelson Morgan, Self: | oppose the striker to make it legal to pay tipped workers less.; Pamela
Chittenden, Self: Protect workers; Pat Jayson, Self: exploits servers by denying them a livable minimum wage; Kelly
Lake-Warnberg, Self: Underpaid "tipped" employees deserve protection, too. REMOVE THE STRIKER to create a
sub-mininum hourly wage for tipped employees!; Kathy Pyner, Self: Renewing 123 is essential, however funding
distribution should be in the hands of locally elected school board members. State legislators can not possibly
understand the needs of each school district.; William S. James, Self: Sub minimum wage; Katharine Donahue, Self:
There is a minimum wage for a reason and remember it is a minimum wage - not enough probably to live on. If you
hustle and get a good tip, it shouldn't impact the basic wage.; Lawrence Peters, Self: Amending state constitution
must be reserved for most vital & universal reasons. Bill is done at behest of special interest group, lobbyists for
restaurant industry who oppose sick leave protections. Lawmakers should work for Arizonans betterment.;
Rebecca Haynes, Self: A ridiculously misnamed bill. And you wonder why people don't take these jobs?!; Loretta
O'Connor, Self: the STRIKER; Cynthia Wagner, Self: Object to striker. Really?! What absurdity.; Linda Block, Self:
This is not a protection bill for restaurant workers, but a move by the industry to take advantage of their workers.
It is difficult to fill positions now and this bill will make the issue worse.; Marilyn Rodriguez, Rural Arizona Action
(RAZA): Opposed to the wage theft striker; Susan Heck, Self: Striker to make a sub minimum wage is atrocious.,
Margaret Tinsley, Self: Vote no on the striker please. Tipped workers deserve more protection, not less.; Lois
Hansen, Self: restaurant workers dont get benefits or sick feave and now you want to restrict their hourly wages
too. not every tipped worker makes alot of money; Aaron Essif, Self: | oppose the striker regarding minimum wage
for tipped workers; Dawn Norton LD29, Self: | oppose SCR1040 as it seeks to undermine minimum wage
protections for tipped employees, aligning with industry lobbyists over workers’ financial security.; Chris Senko,
Self: Restaurant workers deserve a living wage.; Kathleen Dubbs, Self: This striker is so egregious there is very little
to be said about it. The title is totally ironic.; Janie Smieszek, Self: Wait staff work hard, they have a right to a
decent wage.; marcia stewart, Self: THis striker is NOT a protection for workers. This will add additional burdens to
the small business owners.; Jason Backman, Self: No to the striker; Anne Leota Hart, Self: | oppose the striker; Jo
Ann Caruthers, Self: No on striker.; Marcia Tingley, Self: Creating a sub-minimum hourly wage for tipped
employees is a terrible idea and will make it harder for restaurant employees to be able to afford much. Something
like should also NEVER be in the AZ Constitution.; Marilyn Coyle, Self: Pay tipped employees minimum hourly
wages...tips are not an hourly wage; Patricia Edelen, Self: Get rid of the striker that punishes restaurant workers
and uses the misnomer "protection" in it's title.; Carol Garnett, Self: Not an issue that should not be in the
Constitution never to be changed later when circumstances change. A gift to the restaurant industry and not the
workers.; Rebel Rice, Self: Against Striker - Tipped employees deserve better than this; Mary-Jeanne Fincher, Self:
The number of ballot referrals is out of control! We don't want a 2 or 3 card ballot!; JOHN FIENE, Self: Opposed to
this and the STRIKER, now called (unbelievably) Tip Workers Protection Act. Create a sub-minimum wage for
tipped employees, and call it that? SHAMEFUL! LD1 voter; Kirstin Woodburne, Self: | oppose the striker that would
amend the AZ Constitution to create a sub-minimum hourly wage for tipped employees. Stop making it harder for
restaurant workers to make a living!; Roxanna Kearns, Self: As the parent of two "tipped" food service employees |
know how hard they work. Paying them less than the minimum wage would treat them as subhuman. Oppose this
billl; Alice Patricia Price, Self: striker; Michael Levine, Self: Subject to a striker that would create a sub-mininum
hourly wage for tipped employees of up to 25% less than statutory minimum wage. The measure comes from
lobbyists for the restaurant industry.; Elizabeth Brauer, Self: | oppose the striker; Nancy Santori, Self: | believe all
workers should be paid a fair minimum wage by their employers whether they get tipped or not.; Beth Bailmann,
Self: | am against sub-minimum hourly wage for tipped employees which may replace this bill as a striker.; Srinivas
Manne, Self: My kids have worked restaurant jobs for long hours and got paid a subsistence wage, even counting
tips. This bill would strip wages even further by allowing restaurants to pay less than minimum wage. Why does
the bill's sponsor hate tipped workers?; Shirley Dye, Self: This should not be a concurrent resolution! !f you cannot
get a bill through the legislature as a bill it is not a good bill. | do support the distribution of Trust Land monies to
schools but many voters will not understand if you put it to a vote.; Margaret Cordovano, Self: | oppose the striker,
allowing tipped employees to be paid less than minimum wage.; Charlotte Lis, Self: No to less than minimum wage
for tipped workers; Salie Travis, Self: This proposal does NOT protect workers one bit. Opposel; Edna Weigel, Self:
oppose striker; Kathryn Dorn, Self: Please actually protect restaruant workers and other currently-tipped workers
by keeping their minimum wage equal to the statutory minimum wage (and raising that wage)!; Carla Roberts, Self:
Minimum wage is a Human Right! Give the people a livable wage - we aren't slaves.; Fred Miller, Self: Wildy
inaccurate title. | am a bartender and this is a terrible bill put up by the restaurant industry.; Crystal Bazarnic, Self:
Opposing the striker that would create a low minimum wage for employees who receive tips. Please don't do this
to people who are already struggling. Vote no. Thank you.; Rachel Rulmyr, Self: | oppose the language of the striker
to change the Arizona Constitution to create a sub minimum hourly wage for tipped employees. This is a ridiculous
Bill and should not be voted on to change the Arizona Constitution.; Erin McCamish, Self: All workers deserve a fair
wage. | am against the striker.; Carmen Terrell, Self: Peopte are trying to maintain and establish a living until
something else comes along. How would anyone like it if one is paid menial wages, knowing tips can be the
difference between having the rent paid or not. This is unfair to hardworking people.
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ARIZONA STATE LEGISLATURE

Fifty-sixth Legislature - Second Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Justin Wilmeth VICE-CHAIRMAN: _ Michael Carbone
DATE 03/19/24 124 124 [24 124
CONVENED gioyp m m m m m
RECESSED
RECONVENED
ADJOURNED 5-330
MEMBERS
Aguilar 4
Austin V4
Carter vA
Gress 4
Heap “
Hendrix VA
Lucking v
Ortiz ~
Carbone, Vice-Chairman /
Wilmeth, Chairman V4

V Present nee Absent exc Excused

Attachment 3
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature

Second Regular Session
Senate: ED DP 4-3-1-0 | 3'4 Read 16-12-2-0

SCR1040: permanent school fund; distribution; uses
S/E: tipped workers; wages
Sponsor: Senator Mesnard, LD 13
Committee on Commerce

Summary of the Strike-Everything Amendment to SCR 1040

Overview
Subject to voter approval, adds a new section to the State Constitution relating to wages of

tipped workers.

History
In 2016, voters approved The Fair Wages and Healthy Families Act (Proposition 206) which

established statutory law governing the requirements for a state minimum wage.

Pursuant to A.R.S. § 23-363, employers are required to pay employees a minimum wage. The
minimum wage is annually increased based on the cost of living which is measured by the
percentage increase as of August of the immediately preceding year over the level as of
August of the previous year of the consumer price index (all urban consumers, U.S. city
average for all items) as published by the U.S. Department of Labor, with the amount of the
minimum wage increase rounded to the nearest multiple of five cents.

Employers are permitted to pay an employee who customarily and regularly receives tips or
gratuities from patrons or others a wage up to $8 per hour less than the minimum wage
provided the employer can establish by its records of charged tips or by the employee's
declaration for Federal Insurance Contributions Act purposes that for each week, when
adding tips received to wages paid, the employee received not less than the minimum wage
for all hours worked. Compliance must be determined by averaging tips received by the
employee over the course of the employer's payroll period or any other period selected by the
employer that complies with regulations adopted by the Industrial Commission of Arizona.

According to the Industrial Commission of Arizona, the current state minimum wage is
$14.35 per hour.

Provisions

1. Allows an employer, for any employee who customarily and regularly receives tips or
gratuities from patrons or others, to pay a wage up to 25% per hour less than the
statutorily set minimum wage provided the employer can establish by the employer's
records of charged tips or gratuities or by the employee's declaration for Federal
Insurance Contributions Act purposes that for each week, when adding tips or gratuities

0 Prop 105 (45 votes) [1 Prop 108 (40 votes) (© Emergency (40 votes) O Fiscal Note

SCR 1040
Initials PB Page 1 Commerce

Attachment 7
received to wages paid, the employee received not less than the minimum wage plus $2
for all hours worked.

2. Asserts that compliance is determined by averaging tips or gratuities received by the
employee over the course of the employer's payroll period or any other period selected by
the employer that complies with laws enacted by the Legislature.

Cities this act as the "Tipped Workers Protection Act."

4. Requires the Secretary of State to submit this proposition to the voters at the next general
election.

SCR 1040
Initials PB Page 2 Commerce
Fifty-sixth Legislature Commerce
Second Regular Session S.C.R. 1040

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.C.R. 1040

(Reference to Senate engrossed resolution)

1 Strike everything after the resolving clause and insert:

2 "1. Article XVIII, Constitution of Arizona, is proposed to be
3 amended by adding section 11 as follows if approved by the voters and on
4 proclamation of the Governor:

5 11. Tipped workers; wages

6 SECTION 11. FOR ANY EMPLOYEE WHO CUSTOMARILY AND REGULARLY RECEIVES
7 TIPS OR GRATUITIES FROM PATRONS OR OTHERS, THE EMPLOYER MAY PAY A WAGE UP
8 TO TWENTY-FIVE PERCENT PER HOUR LESS THAN THE MINIMUM WAGE ESTABLISHED BY
9 STATUTE IF THE EMPLOYER CAN ESTABLISH BY THE EMPLOYER'S RECORDS OF CHARGED
10 TIPS OR GRATUITIES OR BY THE EMPLOYEE’S DECLARATION FOR FEDERAL INSURANCE
nial CONTRIBUTIONS ACT PURPOSES THAT FOR EACH WEEK, WHEN ADDING TIPS OR
12 GRATUITIES RECEIVED TO WAGES PAID, THE EMPLOYEE RECEIVED NOT LESS THAN THE
13 MINIMUM WAGE PLUS $2 FOR ALL HOURS WORKED. COMPLIANCE WITH THIS SECTION IS
14 DETERMINED BY AVERAGING TIPS OR GRATUITIES RECEIVED BY THE EMPLOYEE OVER
15 THE COURSE OF THE EMPLOYER’S PAYROLL PERIOD OR ANY OTHER PERIOD SELECTED BY
16 THE EMPLOYER THAT COMPLIES WITH LAWS ENACTED BY THE LEGISLATURE.

17 Sec. 2. Short title

18 This act may be cited as the “Tipped Workers Protection Act".

19 2. The Secretary of State shall submit this proposition to the
20 voters at the next general election as provided by article XxXI,
21 Constitution of Arizona."

22 Amend title to conform

JUSTIN WILMETH
SCRIO4OWILMETH SE.docx
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12:39 PM
H: PB/1s

Attachment S
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON

Commerce

DATE

March 19, 2024

BILL NO.

SCR 1040

motion: DPA / SE

PASS

NAY

PRESENT

ABSENT

Aguilar

a

Austin

Carter

Gress

Heap

Hendrix

SISK

Lucking

Ortiz

Carbone, Vice-Chairman

'| Wilmeth, Chairman

WILMETH, Chairman
HAEL CARBONE, Vice-Chairman

OES

3

O

/

/ COMMITTEE SECRE(ARY

ATTACHMENT 6
+ Tipe will decrease. A 2016 Census Bureau study showed that as the base wage for tipped -
workers increased, our tips decreased. This is laid bare in a Bureau of Labor Statistics study
that found tipped workers are making less even as their base wage goes up.

+ Kitchen workers will suffer the most. With tipped workers being given a raise that they are
not asking for, how long will a kitehen employee have to wait for their annual raise? Will they
ever see one?

+ Amonumental shift towards quick service restaurants/counter service. In the seven states
without a tip credit, you may see restaurants opening, but it's important to note that few of
them are full-service restaurants. Ultimately, getting rid of the tip credit will eliminate our
jobs entirely.

+ Automation. All over the country we're seeing more iPads at dining tables—a move like this
eliminates 80-90 percent of waitstaff. Without a tip credit, more restaurants will turn to
automation to keep costs down, meaning countless jobs will be lost.

+ Service charges will be implemented. Unlike tips, service charges are property of the
business—not tipped workers. Those monies can be given out in any way that the business
sees fit, and may not be given out as gratuities at all.

On top of how COVID-19 has ravaged our industry over the last year, eliminating the tipped wage
system could be the final nail in the coffin for a large swath of our industry, and would ultimately be
irresponsible legislation, This ia not a broken syatem in need of fixing, and we, tipped workers, are
not asking to be saved.

Attachment /
sums
2)

omy,
INO

Restaurant Workers Say NO to Eliminating the Tip Credit

What is the tip credit, and why does it

“It’s important to recognize that when matter?

we hear minimum wage bills, we

don’t hear minimum wage workers Federal law and most states allow tipped workers to

saying ‘we don’t want this.” But in be paid a lower minimum wage, as long as they earn at

this instance, it is in fact, the tipped least the full minimum wage when tips are included.

workers who are saying exactly that. (The difference between the tipped wage and the full

They want to keep the tip credit.” minimum wage is called the “tip credit.”) If tips plus
the tipped wage does not equal at least the current

—Chairman of the Washington, ine : :
DC City Council minimum wage, then businesses are legally required

to make up that amount. Under this current model,
most servers and bartenders make well above the
minimum wage when their tips are included.

Tipped workers prefer the current tipped wage system, and have fought to
preserve it

When the tip credit was eliminated in Maine and Washington, D.C., restaurant workers came out in
droves to testify. After hearing from tipped workers, legislators in both places voted in a bipartisan
way to reinstate the tip credit and restore the tipped wage system.

In many other states that have tried to eliminate the tip credit, including New York, Virginia,
Maryland, Massachusetts, and New Mexico, legislators have listened to the workers who would be
most intimately impacted by tip credit elimination, often included in legislation that’s meant to
increase the minimum wage.

We are real tipped workers, not big money lobbyists

It’s critical that legislators listen to tipped workers, facts, math, and common sense instead of relying
on an anti-tipping “narrative” that’s being pushed forward by big money lobbyists like “One Fair
Wage” (OFW). What OFW and its sister organization the Restaurant Opportunities Center (ROC) lack
in true worker representation and facts, they certainly make up for in big money donors.

Unintended Consequences of Eliminating the Tip Credit:

+ Entry level jobe will be the first to go. Positions like bussers, food runners, expos, and
barbacks will no longer exist. As a result, servers & bartenders will be spread too thin to
deliver the quality of service that we strive for.

Protect Tips in Arizona

Outside special interest groups are gathering signatures to pass a voter initiative in November 2024 that will raise
the minimum wage for tipped and non-tipped employees and eliminate the tip credit that is so important to
restaurant servers and tipped workers, Arizona’s restaurant and hospitality industry, Arizona Restaurant
Association members, the dining public, local communities and Arizona’s economic vitality.

What is a Tip Credit?

in Arizona, restaurants may pay tipped employees $3 less than the nominal minimum wage (currently $14.35).
Tipped employees are still legally guaranteed to earn the full minimum wage, and the vast majority earn
substantially more through our tipping system. According to the National Restaurant Association, tipped
employees earn between $19 and $41 per hour, with the average being $27 per hour. When employers take the $3
tip credit, they have more revenue to invest in the business and hire more staff.

How would the elimination of the tip credit impact the restaurant business?

With historic inflation over the past few years, in addition to soaring food costs and wage rates, rising credit card
fees and supply chain issues, many restaurants are already struggling to survive. This measure would further
cripple the restaurant industry, which already operates on thin margins.

If passed, this measure will increase labor expenses for tipped employes by nearly 60% while giving zero benefit to
tipped employees. Additionally, it could force restaurant operators to reduce or cut employee benefits and
insurance, decrease their workforce, raise prices charged to guests or close their doors altogether. Eliminating the
tipped wage would be especially harmful to smail and independent Arizona restaurant operators, their employees,
and to those in Arizona’s smaller cities and towns.

What has happened in jurisdictions that have eliminated the tip credit?

Similar measures have passed in seven states and territories, including California, Guam, Minnesota, Montana,
Nevada, Oregon and Washington, and larger cities such as Chicago and Washington D.C. The negative impacts
have been immediate and felt by both operators and employees.

We see a massive spike in service charges, operators shifting to counter service, decreased hours, laid off workers,
and huge price increases for customers. Most worrisome for employees is that these jurisdictions see tower tip
percentages, resulting in lower hourly earnings for our tipped employees. A National Restaurant Association
survey of 1,000 D.C.-area adults found more than half are dining out less because of higher prices and when they
do, are more reluctant to leave an additional tip for their server due to higher prices or mandatory service charges.

“It’s important to recognize that when we hear minimum wage bills, we don’t hear
minimum wage workers saying ‘we don’t want this.’ But, in this instance, it is in fact,
the tipped workers who are saying exactly that. They want to keep the tip credit.”

- Chairman of the Washington, DC City Council (hearing on
elimination of the tip credit)

What is the Strike Everything Amendment to SCR 1040?

A proposed amendment to SCR 1040 will be heard in the Arizona House Commerce Committee on Tuesday,
February 19, 2024, at 2:00PM. The amendment will give voters the opportunity to protect the tip credit while
increasing the guaranteed base wage to servers. By giving the tip credit constitutional protection, SCR 1040 will
protect the tipping system in Arizona and wit help us fight back against the attempt to eliminate the tip credit and

tipping in Arizona.
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session
Senate: FICO DP 6-0-1-0 | 3'4 Read 22-6-2-0

SB 1053: metal theft study committee
S/E: Arizona-Ireland trade commission
Sponsor: Senator Carroll, LD 28
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1053

Overview
Creates the Arizona-Ireland Trade Commission.

History
The Arizona Commerce Authority's (ACA) mission is to provide private sector leadership in

growing and diversifying the economy of Arizona, creating high quality employment in
Arizona through expansion, attraction and retention of businesses and marketing Arizona
for the purpose of expansion, attraction and retention of businesses (A.R.S. § 41-1502).

Statute outlines the responsibilities of the ACA which include to establish and supervise the
operations of full-time or part-time offices in other states and foreign countries for the
purpose of expanding direct investment and export trade opportunities for businesses and
industries in this state if, based on objective research, the authority determines that the
effort would be beneficial to the economy of this state (A.R.S. § 41-1504).

Provisions

1. Establishes, within the ACA, the 9-member Arizona-Ireland Trade Commission
(Commission) which consists of four members who are appointed by the Legislature and
five members who are appointed by the Governor. (Sec. 1)

2. Requires the appointments to be made by December 31, 2024. (Sec. 1)

3. Specifies members serve 4-year terms and vacancies must be filled in the same manner
as the initial appointment. (Sec. 1)

4, Authorizes members of the Commission to receive compensation and reimbursement of
expenses as provided by statute. (Sec. 1)

5, Allows the Commission to accept gifts, grants, donations, monies from fundraising
activities, bequests and other forms of voluntary contributions to carry out the
Commission's purposes. (Sec. 1)

6. Directs the Commission to:
a) advance bilateral trade and investment between Arizona and Ireland;
b) initiate joint action on policy issues of mutual interest between Arizona and Ireland;
c) promote business and academic exchanges between Arizona and Ireland;

] Prop 105 (45 votes) [ Prop 108 (40 votes) [© Emergency (40 votes) [ Fiscal Note

SB 1053
Initials PB Page 1 Commerce

Attachment_8_
ad) encourage mutual economic support between Arizona and Ireland;
e) encourage mutual investment in the infrastructure of Arizona and Ireland; and
f) meet at least annually and at the call of the member-elected chairperson. (Sec. 1)

7. Instructs the Commission, by December 31, 2025, and each year thereafter, to submit an
annual findings, results and recommendations report to the Governor and Legislature
and provide a copy of the report to the Secretary of State. (Sec. 1)

SB 1053
Initials PB Page 2 Commerce
Fifty-sixth Legislature Commerce
Second Regular Session S:B. 1053

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1053

(Reference to Senate engrossed bill)

1 Strike everything after the enacting clause and insert:

2 "Section 1. Title 41, chapter 10, article 1, Arizona Revised
3 Statutes, is amended by adding section 41-1527, to read:

4 41-1527. Arizona-Ireland trade commission; membership; duties;

5 annual report

6 A. THE ARIZONA-IRELAND TRADE COMMISSION IS ESTABLISHED IN THE
7 AUTHORITY. THE COMMISSION MEMBERSHIP CONSISTS OF:

8 1. TWO MEMBERS WHO HAVE KNOWLEDGE OF OR ANY INVOLVEMENT IN
9 ORGANIZATIONS THAT PROMOTE IRISH AFFAIRS OR WHO HAVE INTEREST IN THE
10 WELL-BEING OF TRADE RELATIONS BETWEEN THIS STATE AND IRELAND. THE
11 PRESIDENT OF THE SENATE SHALL APPOINT THESE MEMBERS.

12 2. TWO MEMBERS WHO HAVE KNOWLEDGE OF OR ANY INVOLVEMENT IN
13 ORGANIZATIONS THAT PROMOTE IRISH AFFAIRS OR WHO HAVE INTEREST IN THE
14 WELL-BEING OF TRADE RELATIONS BETWEEN THIS STATE AND IRELAND. THE SPEAKER
15 OF THE HOUSE OF REPRESENTATIVES SHALL APPOINT THESE MEMBERS.

16 3. FIVE MEMBERS WHO ARE APPOINTED BY THE GOVERNOR, INCLUDING:

lef. (a) AT LEAST ONE MEMBER FROM A_ PUBLIC INSTITUTION OF HIGHER
18 EDUCATION.

19 (b) THE CHIEF EXECUTIVE OFFICER OR THE CHIEF EXECUTIVE OFFICER'S
20 DESIGNEE.

21 (c) AT LEAST TWO MEMBERS OF THE PUBLIC WHO ARE FROM DIFFERENT
22 POLITICAL PARTIES AND WHO REPRESENT IRISH-AMERICAN COMMUNITIES OR INTERESTS
23 IN THIS STATE.
24 B. ALL APPOINTMENTS SHALL BE MADE NOT LATER THAN DECEMBER 31, 2024,
25 AND SHALL BE FOR A TERM OF FOUR YEARS. ALL VACANCIES SHALL BE FILLED IN

Attachment 1

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House Amendments to S.B. 1053

THE SAME MANNER AS THE INITIAL APPOINTMENT. APPOINTED MEMBERS OF THE
COMMISSION SHALL RECEIVE COMPENSATION AS DETERMINED PURSUANT TO SECTION 38-
611 FOR EACH DAY ACTUALLY SPENT IN THE PERFORMANCE OF OFFICIAL DUTIES AND
ARE ELIGIBLE FOR REIMBURSEMENT OF EXPENSES PURSUANT TO TITLE 38, CHAPTER 4,
ARTICLE 2.

C. THE COMMISSION MAY ACCEPT GIFTS, GRANTS, DONATIONS, MONIES FROM
FUNDRAISING ACTIVITIES, BEQUESTS AND OTHER FORMS OF VOLUNTARY CONTRIBUTIONS
TO CARRY OUT THE PURPOSES OF THE COMMISSION.

D. THE COMMISSION SHALL:

1. ANNUALLY ELECT A CHAIRPERSON AND VICE CHAIRPERSON FROM AMONG ITS
MEMBERS.

2. MEET AT LEAST ANNUALLY AND AT THE CALL OF THE CHAIRPERSON.

3. ADVANCE BILATERAL TRADE AND INVESTMENT BETWEEN THIS STATE AND
IRELAND.

4. INITIATE JOINT ACTION ON POLICY ISSUES OF MUTUAL INTEREST BETWEEN
THIS STATE AND TRELAND.

5. PROMOTE BUSINESS AND ACADEMIC EXCHANGES BETWEEN THIS STATE AND
IRELAND.

6. ENCOURAGE MUTUAL ECONOMIC SUPPORT BETWEEN THIS STATE AND IRELAND.

7. ENCOURAGE MUTUAL INVESTMENT IN THE INFRASTRUCTURE OF THIS STATE
AND IRELAND.

8. ON OR BEFORE DECEMBER 31, 2025 AND EACH YEAR THEREAFTER, SUBMIT
AN ANNUAL REPORT CONTAINING THE COMMISSION'S FINDINGS, RESULTS AND
RECOMMENDATIONS TO THE GOVERNOR, THE PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE HOUSE OF REPRESENTATIVES AND PROVIDE A COPY OF THIS REPORT
TO THE SECRETARY OF STATE."

Amend title to conform

JUSTIN WILMETH

1053WILMETH. docx
03/13/2024
09:04 AM

H:

PB/Is
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON

Commerce

BILL NO.

SB 1053

DATE March 19, 2024 moTION: DPA /SE
PASS AYE NAY PRESENT | ABSENT
Aguilar Ve
Austin VA
Carter \
Gress v
Heap v
Hendrix VA
Lucking /
Ortiz vA
Carbone, Vice-Chairman v
Wilmeth, Chairman VA
5S | A A |

et

wornee WILMETH, Chairman
Worace CARBONE, Vice-Chairman

Aun Hwyho

” COMMITTEE SECRE(ARY

ATTACHMENT. | O
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature

Second Regular Session

Senate: FICO DP 4-3-0-0 | 3*4 Read 17-13-0-0

SB 1506: municipalities; housing; commercial redevelopment; zoning
Sponsor: Senator Shamp, LD 29
Committee on Commerce

Overview
Requires certain municipalities to allow residential or mixed use on a portion of its land zoned
for commercial, office, retail or parking use. Outlines development standards for residential

or mixed use projects.

History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and

promote the public health, safety, convenience and general welfare. A municipality may: 1)
regulate the use of buildings, structures and land between agriculture residence, industry
and business; 2) regulate the location, height, bulk, number of stories and size of buildings
and structures, the size and use of lots, yards, courts and other open spaces, the percentage
of a lot that may be occupied by a building or structure, access to incident solar energy and
the intensity of land use; 3) establish requirements for off-street parking and loading; 4)
establish and maintain building setback lines; and 5) establish floodplain and age-specific
community zoning districts and districts of historical significance (A.R.S. § 9-462.01).

Provisions
1. Stipulates certain municipalities must adopt regulations that allow, as a permitted use,
residential or mixed use on at least 75% of municipal land that is zoned for commercial,

office, retail or parking use. (Sec. 1)

2. Outlines restrictions that a municipality may impose, with regards to a maximum height,
length and width, a minimum building separation and setbacks, on:
a) new structures being developed into a residential use or mixed use project; and
b) structures being converted to residential use or mixed use through an adaptive reuse
project. (Sec. 1)

8. Allows a municipality, for a commercial redevelopment area, to impose specified
restrictions relating to:
a) a maximum lot size;
b) parking space specifications; and
c) requirements for the location of and access to public rights-of-ways, sidewalks and
parks. (Sec. 1)

4. Prohibits a municipality, for a commercial redevelopment area, from adopting or
enforcing any code, ordinance, regulation or other requirements that require:
a) zoning restrictions related to density beyond those allowed by statute;
b) screening, walls or fences; or

O Prop 105 (45 votes) 1 Prop 108 (40 votes) O Emergency (40 votes) O Fiscal Note

SB 1506
Initials PB Page 1 Commerce
Attachment_1|
c) a shared feature or amenity requiring an association to maintain the shared feature
or amenity, unless necessary for stormwater management. (Sec. 1)

5. Specifies the specified development regulations do not supersede applicable building
codes, fire codes or public health and safety regulations. (Sec. 1)

6. Stipulates residential housing must be allowed on all land zoned for office, retail, parking
or other commercial use without limitations beginning January 2, 2025, if the
municipality fails to adopt the specified development regulations by January 1, 2025.
(Sec. 1)

7. Defines pertinent terms. (Sec. 1)

SB 1506
Initials PB Page 2 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Commerce BILL NO. SB 1506
DATE March 19, 2024 MOTION: _.DP
PASS AYE NAY PRESENT | ABSENT
Aguilar VA
Austin V4
Carter VA
Gress J
Heap VA
Hendrix VA
Lucking vA
Ortiz v
Carbone, Vice-Chairman /
Wilmeth, Chairman V4
b | 3 0 |
APPROVED; COMMITTEE SECRETARY

(>

Z JUSTIN WIEMETH, Chairman
ICHAEL CARBONE, Vice-Chairman

ATTACHMENT!
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature

Second Regular Session
Senate: TTMC DP 4-2-1-0 | 3*4 Read 24-4-2-0

SB 1162: telecommunications fund; report; posting
S/E: residential zoning; housing; assessment; hearings
Sponsor: Senator Shamp, LD 29
Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1162

Overview
Establishes requirements relating to zoning ordinances and a housing needs assessment.

History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and

promote the public health, safety and general welfare and outlines zoning guidelines and
requirements. Municipalities must adopt, by ordinance, a citizen review process that applies
to all rezoning and specific plan applications that require a public hearing (A.R.S. §§ 9-462.01

and 9-462.03).

If a municipality has a planning commission or a hearing officer, the commission or officer
must hold a public hearing on any zoning ordinance. If 20% or more of the owners of the
property within the zoning area of the affected property file a written protest against a
proposed amendment, the change can only become effective by a favorable vote of three-
fourths of all members of the governing body. If any members of the governing body are
unable to vote on such a question, then the required number of votes for passage of the
question is three-fourths of the remaining membership of the governing body, provided that
such required number of votes cannot be less than a majority of the full membership of the
legally established governing body (A.R.S. § 9-462.04).

Municipalities are statutory required to have in place an overall time frame for issuing
licenses during which the municipality will either grant or deny each type of license that it
issues. The overall time frame for each license type must separately state the administrative
completeness review and the substantive review time frame. The municipality must issue a
notice of administrative completeness or deficiencies to a license applicant within the
administrative completeness review time frame. If the municipality determines that an
application for a license is not administratively complete, the municipality must include a
comprehensive list of the specific deficiencies in the notice to the applicant. If the
municipality does not issue a notice of administrative completeness or deficiencies within the
time frame, the application for the license is deemed administratively complete. If the
municipality issues a timely notice of deficiencies, an application is not complete until all
requested information has been received by the municipality (A.R.S. § 9-835).

[J Prop 165 (45 votes) 1 Prop 108 (40 votes) (1 Emergency (40 votes) O Fiscal Note

SB 1162
Initials PB Page 1 Commerce

Attachment |
Provisions

10.
11.

12.

13.

14.

Zoning Ordinance Amendment
Instructs a municipality, by January 1, 2025, to adopt an amendment to the zoning
ordinance that requires the determination of whether a zoning application is
administratively complete within 30 after receiving the application. (Sec. 2)

Stipulates the municipality that determines the application is not administratively
complete must follow the statutory procedures relating to administrative completeness
until the application is administratively complete. (Sec. 2)

Instructs a municipality to determine whether a resubmitted application is
administratively complete within 15 days after receiving the resubmitted application.
(Sec. 2)

Requires the municipality to approve or deny the application within 180 days after
determining that the application is administratively complete. (Sec. 2)

Provides reasons for which a municipality may extend the time frame to approve or deny
the request beyond 180 days. (Sec. 2)

Specifies the requirements for a zoning ordinance amendment do not apply to:

a) land that is designated as a district of historical significance;

b) an area that is designated as historic on the national register of historic places; or
c) planned area developments. (Sec. 2)

Housing Needs Assessment; Annual Report
Instructs a municipality, beginning January 1, 2025, and every five years thereafter, to
publish a housing needs assessment. (Sec. 8)

Outlines information that must be included in the housing needs assessment. (Sec. 3)

Instructs a municipality, beginning January 1, 2025, and every year thereafter, to submit

an annual report to the Arizona Department of Housing which accounts for the total

number of:

a) proposed residential housing units submitted to the municipality;

b) net new residential housing units submitted to the municipality; and

c) new residential housing units that are entitled, platted, permitted and have received
a certificate of occupancy. (Sec. 3)

Outlines information that must be included in the annual report. (Sec. 3)

Requires a municipality that has previously conducted a housing needs assessment report
to amend the report to include the required information as outlined. (Sec. 3)

Adds that the Arizona Department of Housing must submit the compiled reports relating
to residential housing units to the Governor and the Legislature. (Sec. 3)

Specifies a municipality is not obligated to fulfill the projections in the housing needs
assessment, (Sec. 3)

Exempts a municipality that is located on tribal land or has a population of less than
30,000 persons from the housing needs assessment and annual reporting requirements.
(Sec. 3)

SB 1162

Initials PB Page 2 Commerce
Miscellaneous
15. Specifies the property for which property owners within a zoning area may file a protest
against a proposed zoning amendment excludes government owned property. (Sec. 1)

SB 1162
Initials PB Page 3 Commerce
wo Oo nN DOD oO fF WO DY KF

me DMS Me DMB DB LNB KF KF KF KF KF KF RF RP KS
an F&F wow ne KF OD HO ON DTD Oo FSF WO MH KF CO

Fifty-sixth Legislature Commerce
Second Regular Session S.B. 1162

PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1162

(Reference to Senate engrossed bill)

Strike everything after the enacting clause and insert:

"Section 1. Section 9-462.04, Arizona Revised Statutes, is amended
to read:

9-462.04. Public hearing required; definition

A. If the municipality has a planning commission or a_ hearing
officer, the planning commission or hearing officer shall hold a public
hearing on any zoning ordinance. Notice of the time and place of the
hearing including a general explanation of the matter to be considered and
including a general description of the area affected shall be given at
least fifteen days before the hearing in the following manner:

1. The notice shall be published at least once in a newspaper of
general circulation published or circulated in the municipality, or if
there is none, it shall be posted on the affected property in such a
manner as to be legible from the public right-of-way and in at least ten
public places in the municipality. A posted notice shall be printed so
that the following are visible from a distance of one hundred feet: the
word "zoning", the present zoning district classification, the proposed
zoning district classification and the date and time of the hearing.

2. In proceedings involving rezoning of land that abuts other
municipalities or unincorporated areas of the county or a combination of a
municipality and an unincorporated area, copies of the notice of public
hearing shall be transmitted to the planning agency of the governmental
unit abutting such land. In proceedings involving rezoning of land that
is located within the territory in the vicinity of a military airport or

ancillary military facility as defined in section 28-8461, the

acciite® i
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House Amendments to S.B. 1162

municipality shall send copies of the notice of public hearing by first
class mail to the military airport. In addition to notice by publication,
a municipality may give notice of the hearing in any other manner that the
municipality deems necessary or desirable.

3. In proceedings that are not initiated by the property owner
involving rezoning of land that may change the zoning classification,
notice by first class mail shall be sent to each real property owner, as
shown on the last assessment of the property, of the area to be rezoned
and all property owners, as shown on the last assessment of the property,
within three hundred feet of the property to be rezoned.

4, In proceedings involving one or more of the following proposed
changes or related series of changes in the standards governing land uses,
notice shall be provided in the manner prescribed by paragraph 5 of this
subsection:

(a) A ten percent or more increase or decrease in the number of
square feet or units that may be developed.

(b) A ten percent or more increase or reduction in the allowable
height of buildings.

(c) An increase or reduction in the allowable number of stories of
buildings.

(d) A ten percent or more increase or decrease in setback or open
Space requirements.

(e) An increase or reduction in permitted uses.

5. In proceedings governed by paragraph 4 of this subsection, the
municipality shall provide notice to real property owners pursuant to at
least one of the following notification procedures:

(a) Notice shall be sent by first class mail to each real property
owner, as shown on the last assessment, whose real property is directly
governed by the changes.

(b) If the municipality issues utility bills or other mass mailings
that periodically include notices or other informational or advertising
materials, the municipality shall include notice of the changes with such

utility bills or other mailings.
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House Amendments to S.B. 1162

(c) The municipality shail publish the changes before the first
hearing on such changes in a newspaper of general circulation in the
municipality. The changes shall be published in a “display ad" covering
not less than one-eighth of a full page.

6. If notice is provided pursuant to paragraph 5, subdivision (b)
or (c) of this subsection, the municipality shall also send notice by
first class mail to persons who register their names and addresses with
the municipality as being interested in receiving such notice. The
municipality may charge a fee not to exceed $5 per year for providing this
service and may adopt procedures to implement this paragraph.

7. Notwithstanding the notice requirements in paragraph 4 of this
subsection, the failure of any person or entity to receive notice does not
constitute grounds for any court to invalidate the actions of a
municipality for which the notice was given.

B. If the matter to be considered applies to territory in a high
noise or accident potential zone as defined in section 28-8461, the notice
prescribed in subsection A of this section shall include a_ general
statement that the matter applies to property located in the high noise or
accident potential zone.

C. After the hearing, the planning commission or hearing officer
shall render a decision in the form of a written recommendation to the
governing body. The recommendation shall include the reasons for the
recommendation and be transmitted to the governing body in the form and
manner prescribed by the governing body.

D. If the planning commission or hearing officer has held a public
hearing, the governing body may adopt the recommendations of the planning
commission or hearing officer without holding a second public hearing if
there is no objection, request for public hearing or other protest. The
governing body shall hold a public hearing if requested by the party
aggrieved or any member of the public or of the governing body, or, in any
case, if a public hearing has not been held by the planning commission or
hearing officer. The governing body may consider the testimony of any

party aggrieved when making its decision. In municipalities with
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House Amendments to S.B. 1162

territory in the vicinity of a military airport or ancillary military
facility as defined in section 28-8461, the governing body shall hold a
public hearing if, after notice is transmitted to the military airport
pursuant to subsection A of this section and before the public hearing,
the military airport provides comments or analysis concerning the
compatibility of the proposed rezoning with the high noise or accident
potential generated by military airport or ancillary military facility
operations that may have an adverse impact on public health and safety,
and the governing body shall consider and analyze the comments or analysis
before making a final determination. Notice of the time and place of the
hearing shall be given in the time and manner provided for the giving of
notice of the hearing by the planning commission as specified in
subsection A of this section. A municipality may give additional notice
of the hearing in any other manner as the municipality deems necessary or
desirable. For the purposes of this subsection, “party aggrieved" means
any property owner within the notification area prescribed by subsection
A, paragraph 3 of this section.

E. A municipality may enact an ordinance authorizing county zoning
to continue in effect until municipal zoning is applied to land previously
zoned by the county and annexed by the municipality, but not longer than
six months after the annexation.

F. A municipality is not required to adopt a general plan before
the adoption of a zoning ordinance.

G. If there is no planning commission or hearing officer, the
governing body of the municipality shall perform the functions assigned to
the planning commission or hearing officer.

H. If the owners of twenty percent or more of the property by area
and number of lots, tracts and condominium units within the zoning area of
the affected property, EXCLUDING GOVERNMENT OWNED PROPERTY, file a protest
in writing against a proposed amendment, the change shall not become
effective except by the favorable vote of three-fourths of all members of
the governing body of the municipality. If any members of the governing

body are unable to vote on such a question because of a conflict of
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House Amendments to S.B. 1162

interest, then the required number of votes for passage of the question
shall be three-fourths of the remaining membership of the governing body,
provided that such required number of votes shall not be less than a
majority of the full membership of the legally established governing body.
For the purposes of this subsection, the vote shal] be rounded to the
nearest whole number. A protest filed pursuant to this subsection shall
be signed by the property owners, EXCLUDING GOVERNMENT OWNED PROPERTY,
opposing the proposed amendment and filed in the office of the clerk of
the municipality not later than 12:00 noon one business day before the
date on which the governing body will vote on the proposed amendment or on
an earlier time and date established by the governing body.

I. In applying an open space element or a growth element of a
general plan, a parcel of land shall not be rezoned for open space,
recreation, conservation or agriculture unless the owner of the land
consents to the rezoning in writing.

J. Notwithstanding section 19-142, subsection B, a decision by the
governing body involving rezoning of land that is not owned by the
municipality and that changes the zoning classification of such land may
not be enacted aS an emergency measure and the change shall not be
effective for at least thirty days after final approval of the change in
classification by the governing body.

K. For the purposes of this section, "zoning area" means both of
the following:

1. The area within one hundred fifty feet, including all
rights-of-way, of the affected property subject to the proposed amendment
or change.

2. The area of the proposed amendment or change.

Sec. 2. Title 9, chapter 4, article 6.1, Arizona Revised Statutes,
is amended by adding section 9-462.10, to read:

9-462.10. Residential zoning: amendment; applications;

deadline: extensions: applicability
A. ON OR BEFORE JANUARY 1, 2025, A MUNICIPALITY SHALL ADOPT AN

AMENDMENT TO THE MUNICIPALITY'S ZONING ORDINANCE THAT REQUIRES THE
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House Amendments to S.B. 1162

MUNICIPALITY TO DETERMINE WHETHER A ZONING APPLICATION IS ADMINISTRATIVELY
COMPLETE WITHIN THIRTY DAYS AFTER RECEIVING THE APPLICATION. IF THE
MUNICIPALITY DETERMINES THAT THE APPLICATION IS NOT ADMINISTRATIVELY
COMPLETE, THE MUNICIPALITY SHALL FOLLOW THE PROCEDURES PRESCRIBED IN
SECTION 9-835, SUBSECTION E UNTIL THE APPLICATION IS ADMINISTRATIVELY
COMPLETE. THE MUNICIPALITY SHALL DETERMINE WHETHER A RESUBMITTED
APPLICATION IS ADMINISTRATIVELY COMPLETE WITHIN FIFTEEN DAYS AFTER
RECEIVING THE RESUBMITTED APPLICATION. AFTER DETERMINING THAT THE
APPLICATION IS ADMINISTRATIVELY COMPLETE, THE MUNICIPALITY SHALL APPROVE OR
DENY THE APPLICATION WITHIN ONE HUNDRED EIGHTY DAYS.

B. NOTWITHSTANDING SUBSECTION A OF THIS SECTION, THE MUNICIPALITY
MAY EXTEND THE TIME FRAME TO APPROVE OR DENY THE REQUEST BEYOND ONE HUNDRED
EIGHTY DAYS FOR EITHER OF THE FOLLOWING REASONS:

1. FOR EXTENUATING CIRCUMSTANCES, THE MUNICIPALITY MAY GRANT A
ONETIME EXTENSION OF NOT MORE THAN THIRTY DAYS.

2. IF AN APPLICANT REQUESTS AN EXTENSION, THE MUNICIPALITY MAY GRANT
EXTENSIONS OF THIRTY DAYS FOR EACH EXTENSION GRANTED.

C. THIS SECTION DOES NOT APPLY TO LAND THAT IS DESIGNATED AS A
DISTRICT OF HISTORICAL SIGNIFICANCE PURSUANT TO SECTION 9-462.01,
SUBSECTION A, PARAGRAPH 10 OR AN AREA THAT IS DESIGNATED AS HISTORIC ON THE
NATIONAL REGISTER OF HISTORIC PLACES OR PLANNED AREA DEVELOPMENTS.

Sec. 3. Title 9, chapter 4, article 6.4, Arizona Revised Statutes,
is amended by adding section 9-469, to read:

9-469. Municipal housing needs assessment: annual report:

applicability

A. BEGINNING JANUARY 1, 2025 AND EVERY FIVE YEARS THEREAFTER, A
MUNICIPALITY SHALL PUBLISH A HOUSING NEEDS ASSESSMENT THAT INCLUDES THE
FOLLOWING:

1. THE TOTAL POPULATION GROWTH PROJECTED FOR THE SUBSEQUENT
FIVE-YEAR PERIOD.

2. THE TOTAL JOB GROWTH PROJECTED FOR THE SUBSEQUENT FIVE-YEAR
PERIOD.

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House Amendments to S.B. 1162

3. THE TOTAL AMOUNT OF RESIDENTIALLY ZONED LAND WITH DETAIL ON LAND
ZONED AS SINGLE-FAMILY AND MULTIFAMILY.

4, THE TOTAL NEED FOR ADDITIONAL RESIDENTIAL HOUSING UNITS FOR RENT
AND FOR SALE IN THE MUNICIPALITY TO MEET:

(a) ANY DEFICIENCIES IN HOUSING THE EXISTING POPULATION.

(b) ANY DEFICIENCIES IN HOUSING THE EXISTING WORKFORCE.

(c) POPULATION GROWTH PROJECTIONS.

(d) JOB GROWTH PROJECTIONS.

(e) HOUSING NEEDS ACROSS ALL VARIOUS INCOME LEVELS.

B. BEGINNING JANUARY 1, 2025 AND EVERY YEAR THEREAFTER, EACH
MUNICIPALITY SHALL SUBMIT AN ANNUAL REPORT TO THE ARIZONA DEPARTMENT OF
HOUSING ACCOUNTING FOR THE TOTAL NUMBER OF PROPOSED RESIDENTIAL HOUSING
UNITS SUBMITTED TO THE MUNICIPALITY, THE TOTAL NUMBER OF NET NEW
RESIDENTIAL HOUSING UNITS SUBMITTED TO THE MUNICIPALITY AND THE TOTAL
NUMBER OF NEW RESIDENTIAL HOUSING UNITS THAT ARE ENTITLED, HAVE BEEN
PLATTED, HAVE BEEN ISSUED A BUILDING PERMIT AND HAVE RECEIVED A CERTIFICATE
OF OCCUPANCY BY THE MUNICIPALITY. THE ANNUAL REPORT SHALL INCLUDE ALL OF
THE FOLLOWING:

1. THE NUMBER OF HOUSING DEVELOPMENT APPLICATIONS RECEIVED IN THE
PRIOR YEAR.

2. THE NUMBER OF LOTS AND MULTIFAMILY UNITS INCLUDED IN ALL
DEVELOPMENT APPLICATIONS IN THE PRIOR YEAR.

3. THE NUMBER OF LOTS AND MULTIFAMILY UNITS APPROVED AND DISAPPROVED
OR OTHERWISE NOT APPROVED IN THE PRIOR YEAR.

4, A THRESHOLD PERCENTAGE REQUIREMENT OF MULTIFAMILY ZONED LAND
VERSUS SINGLE-FAMILY ZONED LAND NEEDED TO MEET POPULATION DEMAND IN EACH
MUNICIPALITY.

5. THE STATUS AND PROGRESS IN MEETING THE MUNICIPALITY'S HOUSING
NEEDS.

6. A PLAN THAT SPECIFIES HOW THE MUNICIPALITY INTENDS TO SATISFY THE
IDENTIFIED NEED FOR ADDITIONAL HOUSING UNITS WITHIN THE MUNICIPALITY.
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House Amendments to S.B. 1162

C. A MUNICIPALITY THAT HAS CONDUCTED A HOUSING NEEDS ASSESSMENT
REPORT AS OF JANUARY 1, 2021 SHALL AMEND ALL EXISTING REPORTS TO INCLUDE
THE INFORMATION REQUIRED IN SUBSECTION A OF THIS SECTION.

D. THE ARIZONA DEPARTMENT OF HOUSING SHALL COMPILE THE REPORTS
RECEIVED PURSUANT TO SUBSECTION B OF THIS SECTION AND SUBMIT THE REPORTS TO
THE GOVERNOR, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES.

E. THIS SECTION DOES NOT REQUIRE A MUNICIPALITY TO FULFILL THE
PROJECTIONS IN THE HOUSING NEEDS ASSESSMENT REQUIRED BY SUBSECTION A OF
THIS SECTION.

F. THIS SECTION DOES NOT APPLY TO A MUNICIPALITY THAT IS LOCATED ON
TRIBAL LAND OR A NMUNICIPALITY WITH A POPULATION OF LESS THAN THIRTY
THOUSAND PERSONS.“

Amend title to conform

MATT GRESS

1162GRESS.docx
03/15/2024
02:29 PM

H: PB/1s
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - Second Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. SB 1162

DATE March 19. 2024 motion: DPA / SE.

PASS AYE NAY PRESENT | ABSENT

Aguilar /

Austin

Carter

Gress

Heap

Hendrix

SSisysiS

Lucking

Ortiz VA

Carbone, Vice-Chairman

Wilmeth, Chairman

| O |

QS

fivcim Hrhow

APPROVEDS fZ GOMMITTEE SECRETARY

J N WILMETEf, Chairman
MI L CARBONE, Vice-Chairman

ATTACHMENT. /9

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