LEGISLATION ISSUES
Fri, Nov 20
Volume I / Issue XVI November 20, 2009 4th Special Legislative Session Update
The introduced version of SB 1004: ANTI-DEFICIENCY STATUTES, PROPERTY AMENDMENTS included the repeal and replacement of ARS§ 33-814 with an additional subsection (H) that would not provide deficiency protection for speculative construction projects. This proposed addition to the statute was compromise language agreed to by both the Arizona Bankers Association and AAR. However, there was some concern by the Homebuilders of Central Arizona that the language would not provide the protection to their buyers. We attempted to continue to negotiate to come up with language aimed at “spec builders” but ran out of time.
Senator Pamela Gorman felt that the underlining repeal of SB 1271 should be the priority, as did AAR, so she offered an amendment to SB 1004 that stripped the compromise speculative builder language from the bill leaving in place just a straight repeal and replacement of ARS§ 33-814, essentially returning the statute to its original status prior to the passage of SB 1271. With this fix, Arizona will continue to operate as a deed of trust state with the protections that have been in existence since 1971.
Tom Farley provided testimony for AAR in both the House and Senate Appropriations’ Committees on why the legislature needed to pass a repeal of SB 1271 as a priority. Both committees supported AAR’s position with unanimous votes.
Meghaen Duger and Tom Farley continue to lobby in support of the legislation while the Senate moves the legislation through the process first. The Arizona State Senate passed SB 1004 by a vote of 26-1-3 early this afternoon. SB 1004 is awaiting transmittal to the House of Representatives for a final vote now expected for Monday afternoon. AAR is getting very close to having the legislation on the Governor’s desk.
Unfortunately, the Senate was unable to pass two budget bills needed to help manage the nearly $3 billion deficit in fiscal year 2010. Republican Senator Thayer Verschoor could not be located for the vote, leaving the Senate one vote shy of the needed 16 votes. The Senate adjourned until Monday at 1PM and the House quickly followed suit thereafter. Republican leadership is expected to continue to work through the weekend to get the necessary votes needed for the budget.
Without the efforts of Governor Jan Brewer, Speaker Kirk Adams, President Bob Burns as well as the leadership teams of both the Republicans and Democrats, we would not have been placed in the Special Session call nor had the opportunity to address this issue and ensure that the repeal of SB 1271 stands.
It was clear by the overwhelming support of both the Republican and Democrat Caucuses that this issue has become important to them and that they have listened to their constituents and our members to come to a speedy resolution.
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