Council activities that AeA is currently tracking in the Information Network include:

• Arizona Data Retention
  Bill originally required new ISPs toretain records of IP addresses for at least two years and prohibited ISPs from allocating an IP address to a user who is located outside the US. However, the original language was struck from the bill. Requires ISPs to take steps to preserve records in its posses...Read More
  
  
• Arizona R&D Tax Credit
  Increases the R&D tax credit to 22% in tax year 2009, and 24% in tax year 2010 and after, of excess qualified research expenses if the excess expenses are $2.5 million or less. Increases to $750,000 plus 13% in 2009, and $750,000 plus 15% thereafter, if the excess expenses are more than $2.5 millio...Read More
  
  
• Arizona R&D Tax Credit
  For the tax year beginning Jan 1, 2009, the credit against income tax liability (individual and corporate) for qualified research and development expenses is increased. If R&D expenses exceed the IRS minimum by $2.5 million or less, the credit is 22% (formerly 20%) of that amount. If R&D expe...Read More
  
  
• Arizona RFID
  Requires labeling of consumer items that have RFID tags to state presence of the tag and that the tag can transmit unique identification information to an independent reader both before and after purchase. Prohibits a business from linking an individual's nonpublic personal information with an RF...Read More
  
  

AeA Arizona 2007 Bill List

Click here for a current list of 2007 bills AeA is monitoring:  Bill List

AeA Arizona 2006 Legislative Wrap-Up

The Arizona Legislature adjourned on June 22, 2006 after 164 days of session and after considering 1,453 pieces of legislation – 438 of which were passed, 43 of which were vetoed by Governor Janet Napolitano.

In short, this was one of the most successful legislative sessions to date for AeA members doing business in Arizona.  The highlights were: major income and property tax cuts, new spending for education and a positive data security bill was signed into law, while a harmful data security was killed in legislative committee.

Business Tax Relief – SUCCESSFUL OUTCOME

The single biggest win of the session was the largest tax relief package in Arizona history – totaling $545 million. The package included a 10 percent income tax cut over two years and a three-year elimination of the state property tax. This provides tax relief over the next three years of nearly $1.5 billion.  Specifically, this equals $310 million in permanent income tax reductions over two years and suspension of the $215 million state property tax for at least the next three years.  This action will fuel Arizona’s already vibrant economy.  AeA actively supported this major tax cut package

Data Security – HB2351 – SUCCESSFUL OUTCOME

HB2351 would have created severe penalties and burdens on legitimate businesses that experienced a security breach.  Among other things, the bill would have created overly burdensome destruction of documents requirements for private entities; expanded the ability of the county attorney to issue subpoenas for certain business records; and provided minimum jail penalties for identity theft crimes.  AeA worked behind the scenes with legislators to stop this legislation.  The bill was successfully killed in committee.

Data Security – SB1338 – SUCCESSFUL OUTCOME

SB1338 requires a business conducting business in Arizona to notify state residents of a breach of their security system when personal information of the individuals has been compromised.  Of the two major pieces of legislation dealing with data security, this is the one AeA rallied behind and saw signed into law by the Governor.

 Education – SUCCESSFUL OUTCOME

A $141 million bump for state universities that allows Arizona State University to expand its Williams Gateway campus and helps the University of Arizona retain experienced faculty and Northern Arizona University update aging buildings.  An 11% increase – over a half-billion dollars -- for the K-12 education system.  This includes an additional $100 million this year to increase teachers’ salaries and $160 million doled out over the next two years to fully fund all-day kindergarten should local districts choose to do so. There is also $18 million to expand school choice for lower income, disabled and foster children.  AeA actively supported this important funding package.

R&D Tax Credits – HB2677 and SB1065 – UNSUCCESSFUL OUTCOME

While 2006 was originally viewed as our single best year yet to expand the current R&D tax credit program, the legislation unfortunately got left by the wayside as tax cuts, education and transportation spending became the priorities.  Both of our key R&D tax credit bills (H2677 and S1065) failed to make it the final mile, in spite of strong AeA support.   

Miscellaneous Successes

• A $345 million increase for highway and road construction throughout the state, an investment that is critical for a rapidly growing state.

• $474 million was deposited into the Rainy Day fund, bringing the balance to more than $630 million.

Click here for the list of Arizona Bills:  2006 Legislative Update

For more information, contact Stan Barnes (stan@copperstate.net) or Ian Calkins (ian@copperstate.net), Copper State Consulting Group (602-229-1010)

In addition to being the leading technology industry lobbying organization in Washington D.C. and Sacramento, AeA also has a presence across the country through its 18 council offices.  No other technology trade association has this reach to get you involved in issues at the local level, where many policy issues are emerging today.  Access a network of state government affairs specialists from member companies, local AeA staff, and AeA contract lobbyists today.

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