HB2669 - 452R - House Bill Summary

House of Representatives

HB 2669

Arizona fiscal policy commission

Sponsor: Rep. May

X	Committee on Ways and Means
	Caucus and COW
	Third Read
	As Passed the House

HB 2669 would create an Arizona Fiscal Policy Commission to study and make recommendations regarding the fiscal policy of this state.

History

In June 2001, Arizona House of Representatives Speaker Jim Weiers appointed the House Ad Hoc Committee on Tax Policy for the New Economy. The Committee was directed to review Arizona’s tax policy on sales, income and property tax structures. The Committee met over the fall of 2001 and presented findings and recommendations to the Speaker in December 2001.

One of the findings of the Committee was that the state needed to develop a long-term tax policy vision. The Committee noted that abrupt changes in state tax policy create uncertainty and economic problems for business and individuals that rely on the implementation of the current tax structure. As a result, the Committee recommended that Arizona’s leaders need to perform an extensive examination of Arizona’s overall fiscal policy as it relates to its current tax structure and develop a comprehensive framework and timeline for implementation of a sound state tax policy for the new economy. HB 2669 would establish Arizona Fiscal Policy Commission to accomplish this recommendation.

Provisions

· Establishes an Arizona Fiscal Policy Commission for the purpose of studying and making recommendations on fiscal and tax policy and laws. The Commission is made up of the following:

· The director of the Department of Revenue

· The chairpersons of the Senate Committees on Finance and Appropriations

· The chairpersons of the House Committees on Ways and Means and Appropriations

· One Senator appointed by the President of the Senate

· One Representative appointed by the Speaker of the House

· A business community representative appointed by the Governor, with a minimum of five years of public sector finance experience, that is not an elected official, government employee, or lobbyist, to serve as chairperson of the commission

· Two persons to represent the business community appointed by the Governor

· Two persons to represent the business community appointed by the President of the Senate

· Two persons to represent the business community appointed by the Speaker of the House

· The Governor, Speaker of the House and President of the Senate will coordinate their appointments so that at least three of the members come from a county with less than 500,000 population and not more than nine members can be from Maricopa County. Members are not eligible for compensation or reimbursement of expenses.

· The Commission is required to study and make recommendations on the fiscal policy of this state, including specific consideration on expansion of state resources and economic development strategies. The study must also include fiscal policies relating to political subdivisions.

· The Commission may appoint advisory committees as necessary and technical assistance may be provided by the Governor’s Office of Strategic Planning and Budget, JLBC and Legislative Council.

· The Commission must develop a comprehensive report concerning any proposed changes to the tax structure and a strategy for transition for any recommendations regarding the changes. A status report is due by December 31, 2002 and a final report is due by November 1, 2003.

· The Commission repeals on January 1, 2004.

· ---------- DOCUMENT FOOTER ---------

· 45th Legislature