House of Representatives

HB 2669

Arizona fiscal policy commission

Sponsor: Representative May

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

HB 2669 would create a fiscal policy commission to recommend fiscal policy changes.

Current Status

HB 2669 was amended in the Ways and Means Committee to modify the composition of members on the Arizona Fiscal Policy Commission.

HB 2669 was amended in the Appropriations Committee to modify the composition and responsibilities of the Arizona Fiscal Policy Commission.

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, with the purpose of studying and making recommendations on fiscal and tax policy and laws, with the following members:

· 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

· At least three of these members must come from counties under 2 million population

· Not more than nine can be residents of counties of more than 2 million population

Amendments

· Allows director of DOR to appoint designee to serve in his place.

· Makes Senate Finance Chairman and House Ways and Means Chairman co-chairmen of the commission.

· Creates one representative from each of the following:

· Cities and Towns

· Counties

· School Districts

· Community Colleges

· Leaves four representatives from the business community:

· One appointed by the Senate President

· One appointed by the House Speaker

· Two appointed by the Governor

HB 2669 was amended in the Appropriations Committee as follows:

· Appoints the director of the Auditor General’s Office or the director’s designee to the Commission.

· Expands the Commission by increasing its membership as follows:

· Appoints six legislators from each house

· Doubles the number of county and municipal appointees

· Provides six representatives from the business community, two appointees each for the Governor, Speaker of the House and President of the Senate

· States that the chairman of the House of Representative’s Ways and Means Committee will call the first meeting to order, at which time, a chairman shall be elected from the members of the Commission.

· Requires the chairman to divide the commission in to two working groups: expenditure policy and tax policy.

· Specifies that the working group on expenditure policy will focus on integrating services, eliminating duplicative programs, and exploring ways of achieving savings through privatization.

· Requires the Commission to issue a joint comprehensive report and recommendations, including policy for both state tax structure and expenditure adjustments.

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· 45th Legislature

· Second Regular Session 2 April 4, 2002

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