Arizona Legislative Session Adjourns with Some Wins and No Losses for Small Business

August 22, 2023

Arizona Legislative Session Adjourns with Some Wins and No Losses for Small Business

The 56^th Arizona State Legislature adjourned its First Regular session sine die at 5:15pm Monday, July 31, 2023. While several of the bills introduced this past session would have impacted small businesses—some good, some bad—a few did not make it across the finish line in the legislature and others fell victim to the Governor Hobbs’ veto. This legislative session made the record book as the longest session in state history, at 204 days. However, the session included multiple breaks during which no legislative business was conducted. Legislators introduced 1,675 bills, 205 were signed into law and a record number of 143 were vetoed by the Governor. Small Business Victory: Regulatory Relief Advanced By The Legislature & Signed Into Law With support from our member small business owners who voluntarily engage in contacting their local state representatives, NFIB was able to work with lawmakers and send a regulatory reform bill to the Governor’s desk for signature.

House Bill 2019, known as the “Permit Freedom Act” and sponsored by Rep. Travis Grantham, will benefit small business owners who are subject to licensing and permitting regulations at the local government level. This bill puts in place three safeguards for permit applicants by requiring the local government to provide:

- clear criteria for whether a permit will be granted or denied;
- an explicit deadline for when the government will decide whether to grant or deny the permit, and;
- a meaningful day in court for cases where the applicant thinks the government wrongly denied the permit.

In short, this bill will ensure that basic procedural protections are followed to prevent the government from unfairly delaying or restricting access to permits of all kinds. The Governor signed the pro-small business bill into law in April 2023. Small Business Victory: Costly Mandates Defeated With support from our member small business owners who voluntarily engage in contacting their local state representatives, NFIB was able to quash several bills that would have been detrimental to small business owners and their operations.

House Bill 2290, sponsored by Rep. David Cook, sought to increase health care mandates and thereby would have made health care coverage further out-of-reach for many small business owners. Thankfully this bill was defeated with the help of many small business owners who contacted lawmakers to share their distaste for the costly mandates that Rep. Cook was proposing. Fortifying NFIB’s advocacy effort was NFIB member small business owner Cliff Wixson, who authored this column to detail how this policy would harm his small business and his employees health care. Small business owners owe a debt of thanks to leaders in the State Senate for stepping up and holding firm against this detrimental legislation.

House Bill 2555, sponsored by Rep. Joseph Chaplik, would have mandated that businesses accept cash as a form of payment. While this type of mandate might appear to have popular appeal upon first look, it comes with potentially harmful consequences for small business owners, especially those who are located in areas of greater crime risk and those who do business through transactions of larger dollar amounts. In either case, these businesses are at a greater risk of theft if the would-be assailant knows that there is a state law requiring cash be used in any business. Thankfully, the State Senate served as the final arbiter and although the bill was heard in committee, it did not receive a vote of the full Senate.

Small Business Victory: No New Tax Hikes Thankfully in Arizona, there are a few legal guardrails in place that make increasing taxes on small businesses challenging.

In the legislature, thanks to a 1992 constitutional amendment that NFIB helped champion (Prop 108), any tax increase proposed requires a two-thirds vote of each legislative chamber to pass.

In 2022, Arizona voters approved Prop 132 which requires a 60% vote for ballot measures to approve tax increases.

With these guardrails in place to prevent tax increases, NFIB members must continue to focus on supporting those who vote with small business on issues that matter within the legislative branch while also keeping close watch on the regulatory environment which is largely governed through the executive branch. Key Takeaway: Stay Engaged With Your Representatives & Elect Pro-Small Business Lawmakers All in all, small businesses in Arizona saw some wins this legislative session and most thankfully warded off some harmful proposals through our direct advocacy at the Capitol in Phoenix with the help of our members who actively reach out and voice their concerns with lawmakers. Each year NFIB hosts a Day at the Capitol open exclusively to NFIB members and our state lawmakers. This year’s reception saw record attendance. Included below are a few photos from the event. Keep watch for the 2024 Small Business Day which will be scheduled soon. Finally, NFIB makes it easy for you to keep up legislation that will impact your business at the state or federal level, and how you can get involved. For more information, download the NFIB Engage App by visiting www.nfib.com/app/. We hope you can attend the 2024 Small Business Day and participate in our efforts to inform lawmakers on issues important to small businesses in Arizona!