The leader of one of Arizona’s influential organizations for small businesses is breathing a sigh of relief after navigating the first year of a divided government.
Last week, the Arizona State Director for the National Federation of Independent Business, Chad Heinrich, wrote an op-ed for the Arizona Daily Star, looking at the aftermath of the 56th Legislature in relation to how small business owners faired during the extended session.
Heinrich noted that “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 Governor Katie Hobbs’ veto.”
One of Henrich’s “good” bills was HB 2019, which was sponsored by Representative Travis Grantham. The NFIB-AZ Director stated that “small-business owners who are subject to licensing and permitting regulations at the local government level will benefit from the passage” of this legislation, which was given the nickname of “The Permit Freedom Act.” Henrich explained that “this bill puts in place three safeguards for permit applicants by requiring the local government to provide: 1. Clear criteria for whether a permit will be granted or denied, 2. An explicit deadline for when the government will decide whether to grant or deny the permit, and 3. A meaningful day in court for cases where the applicant thinks the government wrongly denied the permit.”
HB 2019 was signed by Hobbs on April 18, after passing out of the state house with significant bipartisan support.
The report card from Heinrich was not all favorable, however. He praised the “support from our member small-business owners” in helping to “quash several bills that would have been detrimental to small-business owners and their operations.” The two bills Henrich used to illustrate his point were HB 2290 and HB 2555.
According to Heinrich, HB 2290 “sought to impose additional healthcare mandates and thereby would have made healthcare coverage further out of reach for many small-business owners.” Henrich wrote that “small business owners owe a debt of thanks to leaders in the Senate for stepping up and holding firm against this detrimental legislation.”
The other bill on Henrich’s “bad” bills list, HB 2555, “would have mandated that businesses accept cash as form of payment.” Henrich opined that this policy would have “put many different types of businesses at risk – especially those that are located in areas of greater crime risk and those that do business through transactions of larger dollar amounts.” He again thanked the Senate for serving “as the final arbiter,” ensuring that this bill “did not receive a vote of the full Senate.”
In his op-ed, Heinrich also addressed tax increases on small business, highlighting “a few legal guardrails in place in Arizona” that make these actions challenging. He listed two of those guardrails – Prop 108 (passed in 1992) and Prop 132 (passed in 2022) – that give pause to tax increases, whether by the state legislature or the ballot box.
As he closed his op-ed, Henrich encouraged NFIB members to “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.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona businesses small and large are facing yet another challenge due to COVID-19.
FedEx announced a pause this week of its economy express freight services within the U.S. The reason? Too many staff members are unavailable for work as a result of the continuing spread of the Omicron-variant.
The shortages impact FedEx’s popular two-day and three-day freight services relied on by thousands of businesses every day. The effect is a further disruption in America’s manufacturing and retail supply chains which have derailed U.S. automakers and the aerospace industry for months.
Economy freight services are also vital for the delivery of medical equipment, commercial construction, and high-volume printing.
News of the FedEx decision comes just as the company is restarting international economy freight services shut down last month in response to staff shortages across its network.
Similar delivery impediments have hit UPS and the U.S. Postal Service, due in part to employee absences related to COVID-19 as well several extreme weather events across the country. As a result, delivery guarantees are currently suspended on some UPS domestic and worldwide services. In addition, some UPS customer facilities are closed.
“Severe weather conditions and the COVID-19 Omicron variant may impact operations and staffing in parts of the country,” according to a current UPS service alert. “Although we implement contingency plans to minimize service disruptions, delays to service may occur.”
Even regular residential and business mail delivery is being effected in some parts of the U.S.
“Postal Service Priority Mail® products and First-Class® packages may temporarily require more time to be delivered due to limited transportation availability as a result of the Coronavirus (COVID-19) pandemic,” according to the USPS website. “Priority Mail’s two-day and three-day service commitments will be extended to three days and four days, respectively.”
A new state program announced last week by Gov. Doug Ducey will provide up to $10,000 to assist small businesses impacted by Mother Nature and her aftermath, as well as those still reeling from the COVID-19 pandemic.
Ducey’s Aug. 20 announcement of his Back to Work Small Business Rehiring and Retention Program came the same day he toured flood-ravaged Gila Bend. But while the program is being heavily touted in areas hard hit by flooding and wildfires, the funds are also available to thousands of other Arizona small businesses.
And by small, the governor means between 5 and 50 employees for businesses impacted by flooding or wildfires, and between 5 and 25 for all others. In addition, the business must be owned and operated in Arizona, have an incorporation date before Jan. 1, 2020, and rent or lease a physical location in Arizona.
“We want to make sure they have the resources needed to grow and serve their customers, and our new Small Business Rehiring and Retention Program will do just that,” Ducey said of the funding for employee hiring / signing bonuses, relocation bonuses for employees moving to take an open position, and employee retention bonuses.
One of those small business owners is Lilly Hritz, proprietor of Lilly’s Tombstone Memories located on historic Allen Street in Tombstone. Hritz’s business was hit hard by the pandemic, which essentially wiped out nine months of tourism in 2020 and continued to keep many customers away during the traditionally busy first quarter of this year.
That drop off in revenues and available work hours has made it difficult to find and keep quality workers, Hritz told AZ Free News.
“I am excited to about Governor Ducey’s new program. It will make it easier for me to retain the staff I have and help me attract new employees as we prepare for the upcoming tourist season,” said Hritz. “And that will give me the peace of mind to refocus on our expansion plans which had to be put on hold when COVID hit.”
Ducey’s new program has also received bipartisan support among lawmakers, including praise from Rep. Jeff Weninger (R-LD17) and Rep. Aaron Lieberman (D-LD28).
“Effectively hiring and maintaining employees is crucial for the success of any business, but especially the smaller businesses,” said Weninger, himself a small business owner in Maricopa County. “This new program will help them continue to bounce back from the pandemic and extreme weather, and they’ll have the opportunity to expand operations.”
Lieberman is also a business owner, and said he was happy to work with Ducey’s office on the development of the program.
“Small businesses create jobs, support communities and serve Arizonans’ needs,” said Lieberman. “I’m thrilled to see the launch of the Small Business Rehiring and Retention Program and look forward to all it will do to foster small business growth and help Arizona workers.”
