At the time of this update, 817 bills have been filed in the House and Senate. AZAGC is monitoring 254 bills. This report will highlight a few of the bills and issues currently being considered, and will be updated throughout the session. For more information on a bill or the chapter's legislative positions, contact AZAGC President David Martin.

Budget

A couple of weeks ago, Governor Ducey gave the legislature his budget. As you know, AZAGC has been a vociferous opponent to any transfers from the Highway User Revenue Fund (HURF). This year the governor has proposed the lowest transfer in years. He has also given the Arizona Department of Transportation (ADOT) authority to raise registration fees which should provide some relief to the general fund in underwriting the Arizona Department of Public Safety.

TPT

Since the tax simplification legislation became law on January 1, 2015, much confusion has ensued regarding its implementation. AZAGC has been working closely with the Arizona Builders Alliance to craft changes that will help our members during the bidding process. Many members wanted public works to remain under the old prime contracting statues. The current proposal does this. There is also a safe harbor provision to allow contractors some relief during these confusing times. David James of FNF Construction and Representative Karen Fann are working to ensure our interests are represented. Members have been sent the latest draft for review.

SB1090 neutrality agreement; apprenticeship agreement; prohibition

In 2011 the Arizona legislature passed and the governor signed SB1403 outlawing government-mandated project labor agreements (PLAs) in Arizona. A government-mandated project labor agreement is one in which the government requires contractors to negotiate a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. While Harmony/Neutrality/Labor Peace Agreements are not government-mandated PLAs, they do require a private-sector employer to essentially "negotiate" with unions if that employer wants to bid on contracts with a governmental entity. Senator Kavanagh has introduced SB1090 that will end this union activism among local governments.

HB2095 job order contracting; bond; waiver

Allows a contracting or purchasing agent to waive the statutory performance bond if the construction amount of the JOC service does not exceed $500,000, including change orders. This bill was introduced by Maricopa County and was briefly vetted through the APDM stakeholder process. According to Maricopa County this legislation will save them approximately $300,000 in bonding costs. The bill was held and it is expected to be heard next week once the APDM stakeholder group provides adequate input. Maricopa County has indicated that they are willing to drop the contract amount to $200,000.

Accelerate Arizona Unveiled by Arizona Chamber of Commerce

The house and senate transportation and infrastructure committees met jointly last week to hear testimony from a variety of interests regarding the importance of infrastructure in Arizona. One of those presentations was from the Arizona Chamber of Commerce where they unveiled their Accelerate Arizona Initiative. The chamber's effort in Accelerate Arizona is to educate business leaders and key policymakers on the importance of transportation to Arizona's economy and jobs. Additional presentations included an overview on the state transportation revenue, additional options for public private partnerships, the valley's transit system, freight movement and airports.

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