The first Regular session of the 46th Arizona legislature was unlike any other. As the seventh longest in the history of the state, this session lasted longer than any in the last 10 years. Nearly one-half of the legislators were new to their office. Relations between the various political factions were as divisive as ever, but the relations between moderate and conservative Republicans deteriorated to the point that the different factions began meeting separately to plan their tactics on the budget and other major bills. It was not a pretty picture
However, despite being confronted with an incredible range of problems and a variety of substantial obstacles to success over the course of this 158-day ordeal, the Arizona legislature managed to produce a number of remarkable accomplishments. The triple-crown of a state budget without tax increases, funding for University research facilities, and funding for the expansion of the Phoenix Civic Plaza would be significant in any legislative session. In this one, it was just short of amazing.
With the passage of SB1062 – of critical importance to Arizona CPAs – it was also a good year for the Society at the Arizona legislature. Then, with the passage of SB 1348 relating to penalties as they apply to tax preparers, it turned out to be a great year.
The passage of Senate Bill 1062 (Omnibus Board of Accountancy) follows almost three years of planning and working with stakeholders. These efforts at laying the groundwork paid off in full in the 2003 session: the bill passed the State Senate with no opposition, and received only four “nay” votes out of 60 in the House of Representatives. This follows the decision in the previous year to withdraw the bill because of concerns over budget issues and the reception the bill would receive; what a difference a year of hard work and preparation makes! The bill included provisions relating to reciprocity, mandatory peer review, investigations, confidentiality and more.
The Society also pursued a change in the law governing penalties as they apply to tax preparers, in the form of Senate Bill 1348. This bill met with a similar reception, passing the Senate with no opposition, and passing the House of Representatives with only three “nay” votes.
The legislative leadership did an outstanding job of working with the members, and in sorting through the 908 bills that were introduced. By the time that final adjournment occurred on June 19 at 5:57 p.m., a total of 285 bills had been sent to the Governor, leaving behind another 623 that didn’t have the “right stuff.”
This session has the potential to be remembered as the beginning of a realignment of political power in the state, a basic change in the forces determining Arizona public policy. Without question, the arrival of Governor Janet Napolitano on the scene has changed the direction of state government, and has empowered Arizona Democrats. Moderate Republicans, although entirely excluded from legislative leadership positions, exerted substantially more influence than in the past. Whether or not this will persist beyond the next election year, or even into the next session, remains an open question.
Conclusion
Once again, the Society has realized the benefits of an active legislative effort. In 2004, with the passage of SB 1062, the laws governing the profession now more closely conform to national standards, and a number of other changes will enhance the ability of the State Board of Accountancy to fairly regulate Arizona CPAs. This was a good year.
DeMenna & Associates continues to enjoy our long-standing relationship with and the hard work of Cindie Hubiak, her staff and volunteers, specifically Larry Field and Ken Husband. Much of the success of the legislative agenda is the result of Cindie’s leadership. We look forward to many more successes with the Society in the future.
