AZ League Data Portal

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Introduction

The 2023 New Laws Report of the League of Arizona Cities and Towns is designed to guide those enactments of the first regular session of the 56th Arizona Legislature that have demonstrable impacts on municipalities. During the last regular session, 1,675 bills were introduced in the House and Senate. Of these, at least 52 enactments affect cities and towns and are summarized in the Report.  

Scope and Use  

This Report is intended only to identify and briefly summarize those new laws with significant impacts on Arizona municipalities. It does not describe every new provision or law in detail, but it provides a hyperlink to the information and the chaptered version of the law. For a fuller understanding of new laws, readers are encouraged to review the exact language of the new laws and their relevant legislative histories.  

Effective Dates  

Unless otherwise noted in this Report, the effective date of the new laws described in the Report is Oct. 30, 2023. This date – 90 days after the legislative session’s conclusion – is the general effective date for all enactments that are passed without an emergency clause or alternative effective date.  This Report identifies effective dates that vary from this general effective date. Where appropriate, it also includes other statutory dates, such as repeal dates, implementation dates, and deadlines.  

Disclaimers  

This Report, published as a service to League members, does not necessarily identify every law impacting municipalities. It is neither designed nor intended to provide legal advice or counsel. It should be relied upon only as a reference tool and not as a comprehensive guidance document. While this Report may highlight action items that cities and towns should consider, it does not substitute the independent judgments of your city or town manager, council, or attorney. 

Part 1: Courts, Civil and Criminal Justice, and Law Enforcement

HB2168 Good Samaritan; medical assistance 
(Chapter 26, emergency, signed 4/6/23) 

Continues provisions enacted via Laws 2018, Chapter 1, 1^st Special Session by five years from July 1, 2023 to July 1, 2028, including a provision allowing a person to not be charged or prosecuted for the possession or use of a controlled substance or drug paraphernalia if that evidence was obtained as a result of the person’s overdose and need for medical assistance. Contains an emergency clause. 

HB2478 aggravated assault; law enforcement employees 
(Chapter 159) 

Expands the list of aggravated assault victims to include an employee of a law enforcement agency engaged in official duties. 

HB2482 sexual assault kits; victim notification 
(Chapter 154) 

Transfers the Automated Crime Victim Notification System (System) and the associated Law Enforcement Crime Victim Notification Fund to the Arizona Criminal Justice Commission (ACJC). Establishes a 10-member Sexual Assault Kit Study Committee charged with examining the feasibility of providing crime victims with a tracking system for sexual assault forensic examination kits.   Committee members will include one police chief (or the police chief’s appointee).  Requires a report to the legislature by December 1, 2023. Requires the ACJC to include a partnership between at least two vendors for the purpose of expanding the System beginning in FY 2024 through FY 2026. 

HB2485 ambush; police; sentencing enhancement 
(Chapter 96) 

States that if a person is convicted of committing aggravated assault on a peace officer, the person will be sentenced to two additional years if the trier of fact determines there is any aggravating circumstance pertaining to lying in wait for the victim or ambushing the victim during the commission of any felony. This sentence is in addition to any applicable enhanced punishment and cannot be suspended until the underlying sentence is served. Outlines exceptions to this provision for sentence commutation, earned early release credits, and qualified personal leave. 

SB1068 police dogs; emergency treatment 
(Chapter 187) 

Requires each ambulance service to allow properly trained emergency medical care technicians (EMCTs) to provide emergency treatment to a police dog injured in the line of duty and to allow for the transport of the police dog by ground ambulance or other emergency medical services vehicle to a veterinary clinic or hospital equipped to provide emergency treatment to dogs. 

SB1148 law enforcement; video recordings; fee 
(Chapter 190) 

Allows municipalities, counties, and all other political subdivisions to establish a one-time fee for public records requests for a copy of a video recording, not to exceed $46 per video-hour. The reasonable cost of reviewing, transmitting, copying, and redacting the video, including other relevant information, may be factors considered when establishing the fee. Allows victims of crimes, their immediate family members, and the victim’s attorney to receive one copy of a video recording from the investigating law enforcement agency at no charge.  

SB1307 constables; salaries 
(Chapter 196) 

Requires a county Board of Supervisors to fix the salaries of constables to be elected for a period of four years at the regular June meeting preceding a general election. Increases the annual salary from $16,500 to $20,000 in precincts with an average of 100 or fewer documents served per year over the previous four years as reported on the constable standardized daily activity logs. For precincts with an average exceeding 100 documents, the salary is increased from $16,500 to $20,000 (5,000 or fewer registered voters), from $26,000 to $30,000 (more than 5,000 but fewer than 10,000 registered voters), from $29,437 to no more than $40,000 to $36,000 to no more than $45,000 (10,000 but fewer than 12,000 registered voters), from $36,100 to no more than $50,000 to $41,000 to no more than $56,000 (12,000 or more but fewer than 16,000 registered voters), and from $48,294 to no more than $67,000 to $55,000 to no more than $75,000 (16,000 or more registered voters). 

SB1369 certified peace officers; hiring reimbursement 
(Chapter 73) 

This law permits a law enforcement agency in this state or a city, town, county or political subdivision (Original Agency) that finances a peace officer’s certification and training to be reimbursed if the officer is later hired by another agency (Hiring Agency). The reimbursement percentage is dependent on how soon the officer leaves the Original Agency: 100% if within 12 months, 75% if after 12 but less than 24 months, and 50% if after 24 but less than 36 months. The Hiring Agency must cover all certification and training costs, such as travel, housing, and salary during training. Hiring Agencies are barred from considering potential reimbursement costs when hiring and cannot make officers pay these costs. The Original Agency can enforce collection of the reimbursement through civil methods. However, if a peace officer leaves the Original Agency and remains unemployed as an officer for a year or more before being hired by the Hiring Agency, the Original Agency is not entitled to reimbursement. 

Part 2: Campaigns, Elections and Recordkeeping

SB1006 municipal notices and ordinances; posting 
(Chapter 183) 

Exempts a city or town from the requirement to publish the exhibits of an ordinance if the words “exhibits on file” and the location where the ordinance can be located are printed at the bottom of the adopting ordinance. 

SB1273 early ballot delivery; instruction requirements 
(Chapter 119) 

Requires the counties to include, in the official instructions for voters on election day and the printed instructions to early voters, a specified statement concerning the unlawful handling and return of ballots. 

Part 3: Taxes, Budget, and Finance

HB2446 smart and safe fund; distribution 
(Chapter 35) 

Modifies the distribution formula from the Smart and Safe Fund (Fund) by adding Joint Powers Authorities to eligible entities receiving 31.4% of Fund monies in proportion to the number of enrolled members in the Public Safety Personnel Retirement System. Contains a retroactivity clause to January 1, 2021. 

HB2809 public infrastructure improvements; reimbursement 
(Chapter 181) 

Specifies that transaction privilege tax (TPT) revenues paid to a city, town, or county must not exceed the TPT collected from construction contracts benefiting manufacturing facilities. It amends the language to clarify that the amount paid is the lesser of 80% of the total cost of public infrastructure improvements or the total TPT collected from businesses. Additionally, the aggregate cap on payments made to cities, towns, and counties is raised from $100 million to $200 million. 

SB1131 residential leases; municipal tax exemption 
(Chapter 204) 

Prohibits cities and towns from taxing residential rental leases beginning Jan. 1, 2025. The measure will reduce revenues for the 75 cities and towns that tax residential rental properties by $230 million annually. Landlords must also stop charging tenants the amount of the repealed residential rental transaction privilege tax (TPT) beginning Jan. 1, 2025. Landlords bear the burden of proof in any legal disputes over charges, and this rent reduction requirement will be repealed on January 1, 2027. Simultaneously, the Arizona Department of Revenue (ADOR) is mandated to track revenues from remote sellers separately when depositing TPT revenues into the state General Fund. Municipalities are required to prioritize these revenues for public safety purposes before any other. By Sept. 30, 2024, ADOR must inform every residential rental TPT licensee about the upcoming tax repeal, either electronically or by first-class mail. The ADOR notification requirement will be repealed on Jan. 1, 2027. 

SB1189 municipal tax code commission; continuation 
(Chapter 192) 

Extends the Municipal Tax Code Commission from July 1, 2023 until July 1, 2027. 

SB1274 computer data centers; TPT; refund 
(Chapter 68) 

Directs a computer data center (CDC) to follow the standard tax refund process when claiming refunds for transaction privilege tax (TPT) or use tax. The measure comes into effect starting from January 1, 2022. The new law also provides an exemption for CDCs, allowing their refund claims to bypass the established aggregate refund cap. 

SB1720 general appropriations act; 2023-2024. 
(Chapter 133) 

The following appropriations were included in SB1720: 

• $12.2M for Fire Incident Management Fund 
• $23.6M for Rural Broadband Accelerated Match Fund, details available in SB1723 
• $5.0M for senior housing assistance 
• $5.0M for fire district grants 
• $32M for wildfire mitigation 
• $10M for statewide cybersecurity grants
• $8.0M for human trafficking reduction grants
• $150M for Housing Trust Fund
• $40M for Homeless Shelter & Services Fund, with an additional $20M supplemental appropriation for FY23, details in SB1728
• $5.0M for Mobile Home Relocation Fund
• $84.6K for municipal firefighter reimbursement administration
• $12.2M for local border support
• $1.0M for law enforcement recruitment and retention matching grants
• Multiple individual appropriations to cities and towns for a variety of specified purposes

SB1722 capital outlay; appropriations; 2023-2024. 
(Chapter 135) 

In SB1722, a notable appropriation includes:  

• $12.5M for the SMART Fund. Please see SB1735 for additional details. 

Part 4: General Government

HB2019 licensing; permitting; criteria; clarity 
(Chapter 86) 

Specifies that if a county or municipality requires a license or permit for a free speech, assembly activity, or an activity changing the use, appearance, or density of a structure or land, then such county or municipality shall specify the criteria for granting the license or permit, unless criteria are established by existing state or federal law. Provides a 60-day timeframe for municipalities and counties to approve or deny application submittals after they are deemed administratively complete unless another timeframe is specified by a municipal or county ordinance or state or federal law.  

HB2143 gray water; residential standards; rules 
(Chapter 105) 

Eliminates overriding language that restricted city, town, or county ordinances from limiting gray water use, if such use is authorized by the Arizona Department of Environmental Quality (ADEQ) for reclaimed water reuse. It grants ADEQ the authority to establish regulations setting minimum requirements for addressing public health and safety issues related to indoor use of residential gray water treatment systems, particularly for toilet flushing. The indoor use of gray water for toilet flushing is allowed under specific conditions until ADEQ establishes its regulations. These conditions include daily gray water usage of less than 400 gallons, certification to meet Standard 350 for residential gray water recycling issued by a National Sanitary Foundation and the American National Standards Institute, reasonable prevention of human contact with gray water, dedicated piping systems for treated gray water only, and the provision of gray water for toilet flushing only when the system is operating correctly. 

HB2166 DHS; licensure; group homes 
(Chapter 94) 

Requires a behavioral-supported group home operated by a service provider and under contract with the Arizona Department of Economic Security to be licensed by the Arizona Department of Health Services (ADHS) beginning July 1, 2024. Requires ADHS to license behavioral-supported group homes, valid for the period of accreditation, up to a maximum of three years. Authorizes inspections to verify facilities meet health and safety standards. Accredited healthcare institutions may bypass compliance inspections if the director receives their accreditation report, and the institution is accredited by a nonprofit organization approved by the U.S. Department of Health and Human Services.  

HB2223 liquor; licensing; processes; procedures 
(Chapter 25) 

Allows the Department of Liquor Licenses and Control (DLLC) to issue a temporary microbrewery festival license for product sampling and sales, contingent on location approval by the county or municipal body unless the proposed physical location is fully located within a licensed premise. Licensees with off-sale privileges delivering spirituous liquor must document each delivery and acquire recipient’s identification information. Starting in 2024, liquor licensees can pay luxury privilege taxes annually instead of monthly. Allows the Director of the DLLC to expedite an application for an extension of premises before the expiration of the 60-day period when the local governing body (or its designee) makes an advisory recommendation.   Licensed craft producers can consume and serve their products at off-sale retail locations. Makes various other changes to liquor statutes.

HB2373 permits; automated permitting platform 
(Chapter 33) 

Authorizes counties and municipalities to use a “qualified online automated permitting platform” to verify code compliance in order to issue solar energy device permits. Modifies the requirement for electrical diagrams to be either one-line or three-line, instead of both. Specifies that if a municipality or county chooses to use such platform for code compliance verification, a one-line or three-line electrical diagram is not required. 

HB2375 state land transfer; Bullhead City 
(Chapter 63) 

Transfers an estimated 9.95 acres of state sovereign land from the State Land Department to Bullhead City. The designated use of this land is for public parks and recreational activities. Any sale, exchange, or barter of this land is prohibited. 

HB2381 mobile homes; recreational vehicles; fund 
(Chapter 16, emergency, 3/30/23) 

Increases the maximum amount of assistance a mobile homeowner may receive from the Mobile Home Relocation Fund (Fund) and increases the amount a landlord is required to pay into such Fund if there is a change in use that causes mobile home relocations. The Arizona Department of Housing (ADOH) is required, instead of allowed, to notify the county assessors to reinstate the assessments if the amount in the Fund is less than $6 million at the end of a fiscal year. Retroactive to April 16, 2022. Contains an emergency clause. 

HB2484 failure to return vehicle 
(Chapter 112) 

Repeals a criminal code statute related to failure to return a motor vehicle under a security interest. It establishes new conditions for returning such a vehicle, including the lapse of lien payments for over 90 days, receipt of a 90-day overdue notice from the second creditor, and failure to rectify the default within 30 days. An owner intentionally failing to return the vehicle or allow the second creditor to take it over will be in violation. Notices must detail the loan agreement number, vehicle information, business address, operational hours, and maximum penalties. The original contract must state the obligation to return the vehicle within 30 days of a default notice, with the owner keeping their address updated. Exceptions exist for physically incapacitated owners, unfit vehicles for return, or if the owner has a security interest related to buyer remedies or rejected goods. Secured creditors are liable for all expenses associated with law enforcement-led seizures. They can file an affidavit with the Arizona Department of Transportation (ADOT) for failure of vehicle return, leading to immediate suspension of the vehicle’s registration and license plate. ADOT is barred from transferring or re-registering the vehicle until recovery confirmation is received from the secured creditor. 

HB2547 zoning ordinances; property rights; costs 
(Chapter 85) 

Requires a municipal governing body to consider a housing impact statement prior to adopting any zoning ordinance or amendment. Requires the statement to include an estimated evaluation of the probable effect on the average cost of constructing housing for sale or rent within the zoning districts where the proposed zoning ordinance or amendment applies, a detailed explanation of any data or reference materials upon which the proposed zoning ordinance or amendment is predicated, and an overview of any alternative methods that are less expensive or less restrictive for achieving the objectives of the proposed zoning ordinance or amendment. 

HB2669 prohibition; biosolids; land application 
(Chapter 167) 

Requires the Arizona Department of Environmental Quality (ADEQ) to require any land application of a substance containing sewage or septage to comply with rules pertaining to the Clean Water Act including pathogen reduction requirements. States that a biosolid combined with a solid waste shall be regulated as a solid waste by ADEQ. 

HB2717 trauma counseling; 911 dispatchers 
(Chapter 109) 

Expands the traumatic event counseling program available to public safety employees, peace officers, and firefighters to include 911 dispatchers. 

SB1010 personal flotation devices; rowing; exception 
(Chapter 168) 

Exempts children ages 12 and under from a requirement to wear personal flotation devices while in rowing shells that are underway if such rowing shells are used for practice, training or rowing competitions. Requires specific conditions to apply, including that the rowing event is supervised by a coach certified by a nationally recognized rowing association and is in a launch near the rowing shell, the launch complies with the requirements of a nationally recognized rowing association and carries lifesaving equipment on board and the operator of the rowing shell has successfully passed a swimming test as certified by a nationally recognized rowing association. 

SB1051 census adjustment; population threshold 
(Chapter 4) 

Permits counties with a population of less than 500,000 (up from 400,000) and multijurisdictional areas of 50,000 to 100,000 people to voluntarily establish rural planning zones. It also raises the population threshold to 500,000 for counties transferring transportation excise tax revenues to the state treasurer. Furthermore, it increases the same population threshold in counties for the Arizona Department of Health Services to issue requests for proposal and proposed contracts for the Arizona Long-Term Care System (ALTCS). Population estimates are based on the latest figures from the Office of Economic Opportunity as opposed to data from the Arizona Department of Economic Security. 

SB1061 public officials; home addresses; confidentiality 
(Chapter 125) 

Adds election officers and public officials to the list of individuals authorized to request that the general public be prohibited from accessing public records containing a person’s personal identifying information that are maintained by the Arizona Department of Transportation (ADOT). Makes it a class 5 felony to knowingly make available on the internet the personal information of an election officer or public official and designates the knowing release of a public official’s personal information with malicious intent as a class 6 felony. States that law enforcement agencies or state and local government entities are not required to disclose a public official’s personal information. 

SB1103 administrative review; approvals; developments 
(Chapter 1) 

Empowers the legislative body of a municipality or county, by ordinance, to authorize administrative personnel to review and approve site plans, development plans, preliminary plats, land divisions, lot line adjustments, lot ties, plat amendments or final plats and design review plans based on objective standards without a public hearing. 

SB1188 regulation; permissible consumer fireworks 
(Chapter 161) 

Allows municipalities to prohibit permissible consumer fireworks on days other than December 26 through January 4. Previously, this timeframe was December 24 through January 3. 

SB1270 open meetings; capacity 
(Chapter 23) 

Requires schools, school boards, executive boards, and municipalities to provide sufficient seating to cater for the anticipated attendance at deliberations and proceedings of a public body. However, these entities are not forced to relocate a meeting beyond the largest regular meeting room available. Exempts meetings held via technological devices from agenda posting requirements. States that an agenda for any public meeting shall specify the time when the public will be allowed physical access to the meeting place. 

SB1315 emergency response; students with disabilities 
(Chapter 120) 

Mandates that school boards and county school superintendents include provisions in their emergency response plans on how schools and emergency responders will communicate and assist students with disabilities during an emergency. 

SB1432 assured water; small residential developments 
(Chapter 182, emergency, signed 6/19/23) 

Mandates that a city or town providing water via an intergovernmental agreement (IGA) with a standpipe district (District) must do so for no more than three years, using a standpipe for water hauling to residences outside the municipality’s water service area that lack sufficient water. Specific conditions include a maximum of 750 impacted residences, no other adequate water source within ten miles, reimbursement to the city or town for the costs, and ensuring that water availability for other areas is not reduced without consent. The District must enter into an IGA encompassing various aspects, including cost reimbursement and conservation measures. Property owners can choose whether to join a District, which must only provide water to its members. The District can levy a surcharge capped at 10% of a customer’s bill without unanimous board approval. By January 1, 2024, the director of the Arizona Department of Water Resources must submit a report regarding building permits in Active Management Areas and assured water supply certificates. Contains a repeal date of December 31, 2025, and includes an emergency clause. 

SB1650 auditor general; duties; access 
(Chapter 40) 

Requires officers of a state agency, board, commission, department, institution, program, advisory council, committee, or political subdivision to provide reasonable space for Auditor General staff and furnish records in the form and time prescribed. Makes it a class 2 misdemeanor to knowingly obstruct or mislead the Auditor General. Modifies the considerations for Committee of Reference (COR) during agency sunset reviews and changes the final sunset review report by each COR. 

Part 5: Transportation and Traffic Enforcement

HB2288 roundabouts; right-of-way; large vehicles 
(Chapter 107) 

Specifies that the operator of a vehicle or combination of vehicles with a total length of at least 40 feet or a total width of at least 10 feet may deviate from the lane in which the driver is operating to the extent necessary to approach and proceed through a roundabout. Allows an operator of a large vehicle to navigate the roundabout and mandates that other drivers yield if they have already entered the roundabout. Requires the Arizona Department of Transportation (ADOT) or a local jurisdiction to post a yield sign or a standard sign designed by ADOT conveying that large vehicles possess the right-of-way or that vehicles shall yield to a large vehicle in the roundabout. States that if two large vehicles approach simultaneously, then the one on the right shall yield to the one on the left. 

HB2298 planned community authority; public roadways 
(Chapter 84) 

Clarifies that for any planned community established after December 31, 2014, the homeowners’ association (HOA) loses the authority to regulate any roadway after the period of declarant control, regardless of provisions in community documents. For communities whose declarations were recorded before January 1, 2015, and which regulate roadways owned by a government entity, they may continue their existing regulations until either a membership vote is held on the matter by June 30, 2025, or if such vote fails or does not occur. If a vote fails or does not occur, the HOA will lose their authority to regulate public roadways and existing regulations will expire. One-way streets and privately owned roadways are exempt. 

SB1097 truck routes; designation 
(Chapter 30) 

The Arizona Department of Transportation (ADOT) or a local government may limit or ban the operation of legally sized vehicles on major arterial streets connecting multiple local jurisdictions, provided a test drive or vehicle template demonstrates a safety concern. This applies to ordinances and resolutions adopted post-January 1, 2020. If a highway lacked a “truck restriction” before annexation by a local government, it cannot be included in a restriction post-January 1, 2020. Local governments must amend or repeal any ordinances inconsistent with this act within 90 days after its effective date, otherwise they will be invalidated. 

SB1102 transportation excise tax; Maricopa County 
(Chapter 203) 

The Maricopa County Transportation Tax, otherwise known as Prop. 400, is a proposed levy that, if approved by voters in a countywide election, will be implemented starting January 1, 2026, for a term of 20 years. This tax would be up to 10% of the 1990 state TPT rate, 10% of the jet fuel excise tax rate, and 10% of the use tax rate for electricity or natural gas consumers. The revenues from this tax will be allocated as follows: 40.5% for the state highway system, 22.5% for arterial streets and regional transportation infrastructure, and 37% to the Public Transportation Fund. No more than 5% of the tax revenues can be used for regional transportation infrastructure and these allocations cannot be reduced. The funds cannot be used for any rail system extensions, influencing election outcomes, or projects that reduce existing lane miles unless certain conditions are met, including approval from a third-party engineering study, public input, and no increased vehicle congestion or travel times. The Maricopa County Regional Public Transportation Authority will be reestablished if the tax is approved. A countywide election for the tax’s continuation will occur between Jan. 1, 2022, and Jan. 1, 2024, and at least one year before the existing tax would be discontinued, on Jan. 1, 2025. Publicity for this ballot will include a summary of the tax, its uses, and arguments for and against the measure. Arguments can be submitted to the Maricopa County Elections Director. 

SB1206 commercial vehicles; penalty; civil; criminal 
(Chapter 126) 

Establishes out-of-service (OOS) order violations for drivers, motor carriers, shippers, and manufacturers. Outlines a penalty structure that makes it a class 2 misdemeanor for a first offense, class 1 misdemeanor for a second offense, and a class 6 felony for any subsequent offenses. Adds shipper or manufacturer to a prohibition requiring a driver to operate a commercial vehicle that is subject to an OOS order until all repairs are completed or who is subject to an OOS order until the reason is remedied. Requires a court to impose a civil penalty of at least $2,750 nor more than $25,000 on a shipper or manufacturer that violates an OOS order or permits a driver to violate or fail to comply with an OOS order. Adds language subjecting shippers and manufacturers to disqualification of a commercial driver’s license. 

SB1340 toll roads; conversion; prohibition 
(Chapter 129) 

Prohibits county boards of supervisors from approving applications to convert publicly funded or maintained streets or highways into toll roads, except for public-interest airports. The Arizona Department of Transportation (ADOT) is also prohibited from entering into any agreement to convert an existing publicly funded or maintained road into a toll road. This prohibition extends to implementing general purpose toll lanes, high occupancy toll lanes, variable rate tolling, or any combination thereof, as well as mechanisms informing drivers about upcoming toll facilities and payment options.

Part 6: Labor, Employment, Retirement and Benefits

HB2008 ASRS; contribution prepayment 
(Chapter 46) 

Permits employers to elect a short-term investment rate of return. Strikes a requirement for employers that elect an amortization schedule for their prepaid contributions if such employer enters into a contribution prepayment program with the Arizona State Retirement System. 

HB2009 ASRS; retirement application; changes 
(Chapter 47) 

Permits members to modify information in their retirement application within a 60-day period following their official retirement date. 

HB2015 retirement plans; plan election; rehire 
(Chapter 48) 

Allows a Tier 3 Corrections Officer Retirement Plan (CORP) or Public Safety Personnel Retirement System (PSPRS) member, upon re-employment by a new or previous employer, to make a new benefit plan election within a 90-day window. This applies to those who are either hired by a new employer or are rehired by their former employer following a bona fide termination of employment that lasted for at least six months, provided there was no prearranged agreement for reemployment. 

HB2028 PSPRS; contribution rates 
(Chapter 102, emergency, 5/1/23) 

Reduces the contribution rate for members of the Public Safety Personnel Retirement System from 11.65% to 7.65% beginning in FY 2024. States that any amount of the member’s contribution exceeding 7.65% and accumulated between July 1, 2011 through June 30, 2020 may be applied to the calculation of employer contributions. Retroactive to July 1, 2023. Contains an emergency clause.  

HB2029 ASRS; supplemental deferral plan; participation 
(Chapter 52) 

Authorizes a political subdivision or a political subdivision entity not participating in the Arizona State Retirement System (ASRS) from electing to allow its employees to participate in a supplemental employee deferral plan overseen by ASRS entering into an agreement with ASRS. 

HB2431 workers’ compensation; firefighters; rate deviation 
(Chapter 149) 

Enacts session law limiting commercial workers’ compensation insurers (Insurer) to collect additional premiums only if a fire district can receive reimbursements under the federal American Rescue Plan Act of 2021 before July 1, 2023. Sets the maximum amount at $800,000 for the additional premium each Insurer can collect. 

SB1164 workers’ compensation; fraud investigations; adjudications 
(Chapter 191) 

Requires the Industrial Commission of Arizona (Commission) to establish a Fraud Unit (Unit) to investigate fraudulent activities, statements or representations made in connection with workers’ compensation claims. Requires the Commission to adopt rules establishing a process for receiving complaints and conducting investigations. Allows the Unit to investigate allegations of fraud either based on a complaint or the Unit’s own motion. States that any allegation involving unfair claim processing practices or bad faith by an employer, insurance carrier or claims processing representative. Clarifies, as enacted via HB2431, the aggregate amount of the additional premium each commercial workers’ compensation insurer may charge and collect from all fire districts insured at $800,000. 

SB1173 public retirement systems; plan election 
(Chapter 6) 

Modifies the Public Safety Personnel Retirement System (PSPRS) and the Corrections Officer Retirement Plan (CORP) by specifying that employees hired or rehired from July 1, 2017, their participation in PSPRS or CORP commences on their hiring or rehiring date. Additionally, the penalty for late contributions to the PSPRS board by both employer and employee will now be compounded annually instead of daily. Probation or surveillance officers hired on or after July 1, 2018, are granted the option to participate either in the CORP or the PSPRS defined contribution plan. The timeline following a member’s retirement during which they must pay an alternate contribution rate is reduced from 12 to 6 months. Finally, the requirement for the PSPRS Board to use a total asset amount, composed of the sum of assets in the prefunding plan and the defined benefit pension, in the calculation of the unfunded pension liability and the annual actuarial required contribution amount for the annual employer valuation report was stricken. 

Part 7: Ballot Referrals

H.C.R. 2039 governor; emergency powers 
(Transmitted to the Secretary of State, 06/13/2023) 

Terminates any emergency powers given to the governor during a state of emergency 30 days post proclamation. This requires consent from the voters at the next general election in order to become effective. If a petition with signatures from a minimum of one-third of the House and Senate is presented, it mandates the governor to convene a special session. This does not apply to powers given during a state of war emergency or an emergency triggered by a flood or fire. Restricts, during a special session meant for ending or modifying the emergency powers given to the governor, the topics the legislature can consider to those related to the emergency powers bestowed upon the governor during a state of emergency. If the legislature does not prolong the governor’s emergency powers, it prevents the governor from declaring a new state of emergency based on the same circumstances that led to the original proclamation of the state of emergency. 

H.C.R. 2033 primary elections; eligible candidates 
(Transmitted to the Secretary of State, 03/28/2023) 

Specifies the direct primary election law enacted by the legislature supersedes any contrary or inconsistent provision of any charter, law, ordinance, rule, resolution or policy of any city. Provides that the direct primary election for partisan offices shall be conducted in a manner so that each political party has qualified for representation on the ballot shall be permitted to nominate for each office a number of candidates equal to the number of positions to be filled for that office in the ensuing general election. Stipulates that all otherwise eligible candidates who are so nominated shall be placed on the ballot in the next ensuing general election. Directs the Secretary of State to submit the proposition to the voters at the next general election.