Gov. Hobbs Says She Wishes She Vetoed More Bills

Gov. Hobbs Says She Wishes She Vetoed More Bills

By Corinne Murdock |

Gov. Katie Hobbs says that her decision to not veto more bills represented her biggest missed opportunity this past legislative session.

In an interview with 12 News, Hobbs shared that her 143 vetoes weren’t enough in her eyes — a record-breaking total that far surpassed the 58 vetoes of the last female Democratic governor for the state, Janet Napolitano. Hobbs laughed, then clarified that vetoing for the sake of vetoing wasn’t her goal. 

“I didn’t come here to veto bills,” said Hobbs.

In April, Hobbs celebrated breaking Napolitano’s veto record after killing a bipartisan bill to legalize more homemade food sales.

With June came a slew of vetoes on Republican-led and bipartisan bills addressing hot-topic issues.

Hobbs vetoed a bill requiring all child sex offenders to register within the state’s online database. A loophole in state law only requires child sex offenders to register if they’re not considered a high risk of reoffending. Hobbs justified that those child sex offenders didn’t need to be registered because they weren’t the “most dangerous.” Lawmakers denounced Hobbs’ veto, arguing that it allowed predators to remain undetected in communities built on trust, such as schools and sports teams.

Similarly, Hobbs vetoed a bill banning sexually explicit materials from classrooms. The governor derided the legislation as an attempt to ban books.

The governor also vetoed a revision of Proposition 400, which would’ve allowed voters to vote separately for roads and transportation funding. Last week, a bipartisan majority passed a version of Proposition 400 that reunited the two funding questions.

Hobbs then vetoed bills barring state contracts and investments with organizations implementing social credit scoring, often called Environmental, Social, Governance (ESG) systems.

The governor also vetoed an election integrity measure prohibiting election officers, employees, or individuals overseeing elections operations from serving in the leadership of a political action committee. Hobbs claimed in the veto letter that there were too few of these cases to justify codification. 

Hobbs also vetoed a bill requiring public schools to provide single-access restrooms and changing facilities for transgender individuals. The governor said the protective measure was discriminatory against LGBTQ+ individuals. 

The governor also vetoed a bill requiring municipalities to require vagrants to remove their encampments. Hobbs said that the bill shouldn’t be allowed to take effect since it doesn’t address why the homeless decide to install unlawful encampments and offers the homeless no alternative to establishing the encampments.

In the preceding months, Hobbs vetoed several other key bills banning photo radar, prohibiting schools from using the incorrect pronouns to satisfy transgender perspectives, increasing punishments for those who make or distribute fentanyl to minors, increasing punishments for those who commit domestic violence against pregnant women, requiring employers to honor religious exemptions for vaccinations, prohibiting schools from teaching critical race theory, and prohibiting municipal taxes on rental or leased properties.

In the Sunday interview, Hobbs said that, despite the many vetoes and heightened political divisions, she has managed to push through significant legislation, citing the budget. Apart from the vetoes, the divisions are most evident in the fact that only a handful of her nominations have been approved.

Additionally, Hobbs took a jab at the state’s universalized school choice program. The governor said the Empowerment Scholarship Account (ESA) program was “unaccountable” and rife with “runaway spending.” Hobbs said that she would continue to look for ways to undermine the program, if not roll it back entirely.

The governor also advocated for greater action to counter alleged climate change. Local and federal Democratic leaders have appeared to have been moving in lockstep when it comes to characterizing the desert heat as a federal emergency, a classification that would come with increased funding for climate and social projects.

Hobbs also expressed confidence that a ballot measure expanding abortion access would come before voters next year.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Rental Tax Prohibition Bill Signed Into Law

Rental Tax Prohibition Bill Signed Into Law

By Daniel Stefanski |

One of the final pieces of the 2023 Arizona Legislative Session has been put into place.

On Tuesday, Governor Katie Hobbs signed SB 1131, which eliminates the rental tax for Arizona tenants.

According to Arizona Senate Republicans, “there are approximately 70 municipalities within our state charging this tax, while cities and towns continue to collect record revenues. From fiscal years 2019 to 2023, state-shared revenues from both sales and income taxes combined grew $733 million, or 59%. This increase is on top of any sales taxes or property taxes individually levied by each city. Between FY 2024 and FY 2025, those shared revenues are expected to grow by an additional $389 million.”

The Senate’s President, Warren Petersen, issued the following statement in conjunction with the announcement: “Charging a rental tax is bad tax policy. In fact, Arizona is one of only two states in the nation currently allowing this. While our first attempt at eliminating the tax passed out of the Legislature with solely Republican support and was eventually vetoed by the Governor, we’re grateful our Democrat colleagues came to the table with us and realized the real tangible relief this reform will provide.”

Senate Majority Whip Sine Kerr also released a statement explaining the need for the bill.

“Rental prices aren’t going down anytime soon, and Arizona tenants are agonizing over just how much more expensive it is now to rent an apartment or house than ever before. For Metro Phoenix, June of this year saw the second-highest monthly total of evictions since the 2008 Great Recession. According to Maricopa County records, landlords filed to evict nearly 7000 times last month,” said Senator Kerr. “We needed to act promptly. This bill will provide some help, and I’m proud the Majority Caucus spearheaded this change in tax policy.”

The Republicans’ press release noted that the new policy will “take effect on January 1, 2025…at the request of Democrats (to) allow cities and towns the leeway they desire to adapt to this tax reform.”

As Petersen referenced, the governor vetoed an earlier version of the rental tax prohibition back in February. Hobbs gave two reasons for her action, stating, “First this bill lacks any enforceable mechanism to ensure relief will be provided to renters. As noted by the legislature’s own attorney, provisions in the bill that purport to require that tax savings be passed on to renters face challenges under both the state and federal constitutions. If we are going to promise relief to renters, it’s important that we are able to ensure they actually receive it.”

The League of Arizona Cities & Towns – as well as several cities and towns across the state – opposed the updated bill, which was eventually signed by Hobbs, as it progressed through the state legislature. The Senate first passed the bill on March 2, then the House on May 15. The Senate then concurred with the amended proposal on June 13. SB 1131 was not transmitted to Governor Hobbs until July 31 – the same day that the Legislature approved the negotiated Prop 400 plan.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Lawmakers’ Reaction To Passage Of Prop 400 Mixed

Lawmakers’ Reaction To Passage Of Prop 400 Mixed

By Daniel Stefanksi |

Reaction was mixed to the news that the Arizona Legislature passed a Prop 400 compromise on Monday, after an agreement was forged with the Governor’s Office.

Republican Senate President Warren Petersen claimed victory after his chamber gave the proposal the green light, calling it “the most conservative transportation plan in our state’s history.” Petersen added, “The guardrails, taxpayer protections and funding allocations in the text of this bill reflect the priorities of voters, to reinvest their tax dollars in the transportation modes they use most.”

Democrat Governor Katie Hobbs was diplomatic in her statement, saying, “Today, bipartisan leaders invested in the future of Arizona families, businesses, and communities. The passage of the Prop 400 ballot measure will secure the economic future of our state and create hundreds of thousands of good-paying jobs for Arizonans. I am glad we were able to put politics aside and do what is right for Arizona.”

Some legislative Democrats took the legislation’s approval to point political fingers at their Republican counterparts. Senate Democratic Leader Mitzi Epstein wrote, “As is customary, Republicans have waited until the very last minute to pass widely popular legislation that invests in the daily lives of Arizonans….Our state should not have had to wait until July 31st to see this measure, which has had legislative support since the start of session, get sent to the ballot. However, with the support of Arizonans cities and towns, I am proud to join my Democratic colleagues in delivering the key votes needed to send the extension of the regional transportation tax back to the voters of Maricopa County.”

Members of the Arizona Freedom Caucus were adamantly opposed to the bill since the weekend, when they appeared to have read a draft of the legislation. After Prop 400 passed, the Freedom Caucus tweeted, “Legislative conservatives near unanimously opposed this horrible bill. Conservative watchdog groups unanimously opposed it. The bill may have been better than the communists at @MAGregion’s horrific plan, but that’s a ludicrously low bar for success. This bill was antithetical to conservatism.”

Freshman Republican Representative Austin Smith, who has become one of the leading voices in the Arizona Freedom Caucus this legislative session, was one of the most-outspoken members against the bill since the weekend. He explained his vote on Twitter, posting, “I voted NO on the prop 400 transporation excise tax for Maricopa County. Taxpayer dollars are not ours to dish out haphazardly – especially to the tune of 20 BILLION dollars with potential consequences that ruin valley transportation.”

Some legislative Republicans, including Representative Jacqueline Parker, were already thinking about messaging against the ballot measure in hopes that voters could stop the plan from becoming finalized. Parker tweeted, “Now it’s up to the voters in Maricopa county to read the 47 page bill & see if it’s worth $20 Billion. I recommend looking at provisions on pages: 8, 15, 16, 18, 21, 22, 34, & 35, which absolutely allow plenty of leeway for cities to implement their road diet, & transit expansion.”

The breakthrough on the Prop 400 compromise took place after Governor Hobbs vetoed a Republican proposal in June. At that time, Hobbs stated, “I just vetoed the partisan Prop 400 bill that fails to adequately support Arizona’s economic growth and does nothing to attract new business or create good-paying jobs.”

In May, the governor created unrest over ongoing negotiations, allegedly sending out a tweet that highlighted her fight with Republicans at the Legislature at the same time she was meeting with Senate President Warren Petersen.

Petersen, one of the most conservative members in the state legislature, championed the importance of the bill, asserting that officials had “secured a good, responsible product for the citizens of Arizona to consider in 2024, giving voters the option to enhance critical infrastructure that our entire state relies upon.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.