The Town Council is throwing its support behind a bill in the Arizona Legislature sponsored by Rep. John Kavanagh of Fountain Hills.

With a unanimous 7-0 vote on Feb. 2, the Council moved to have staff send a letter endorsing Kavanagh’s HB2481, which calls for local authority to be restored in regulating short-term rentals (STR).

In 2016 the legislature passed a law that preempted local jurisdiction in regulating STR. According to the League of Arizona Cities and Towns, that restriction “has resulted in the proliferation of short-term rentals in communities in Arizona and has impacted housing availability and quality of life across the state, but especially in communities close to tourism hubs.”

The Kavanagh bill returns some local control to municipalities and gives cities and towns the ability to license or register STRs. It also allows for local zoning restrictions for STRs.

The league is in support of the bill, as it restores authority to municipalities. The league will provide weekly updates related to its progress.

Councilman Mike Scharnow said local government has to deal with situations every year where the legislature attempts to preempt the authority of cities and towns.

Mayor Ginny Dickey said the Kavanagh bill is a reasonable way to approach the short-term rental issues, but agreed with Scharnow.

“Every level of government below the legislature is having to deal with these preemption bills,” Dickey said. “That includes the Corporation Commission, counties and local election officials.”

The council also asked staff to formally state its opposition to a couple of other bills making their way through the legislature.

One bill deals with reduction or repeal of the corporate income tax. Town Manager Grady Miller described this as “worrisome” due to the potential impact on state shared revenues received by cities and towns.

“Thirty-six percent of our general revenues come from state shared revenues,” Miller said. “We don’t have diverse revenue sources.”

The council agreed it should oppose the bill.

Also, SB1333 is a bill to address concerns about cutting law enforcement budgets in the fallout from BLM protests this past summer. The bill would allow the state to cut state shared revenues from communities that reduced policing budgets.

Miller noted that Fountain Hills uses a contract with the Maricopa County Sheriff’s Office and doesn’t control how MCSO budgets. Also, there is general opposition to the legislature trying to manipulate local budget priorities.

Dickey asked Vice Mayor David Spelich his position on this issue, as he has a law enforcement background. Spelich said he would oppose on the grounds that the legislature should not be trying to dictate local budget decisions.

The Town Council agenda will include a legislative update from the League of Arizona Cities and Towns for each meeting through the end of the legislative session. This is an opportunity for council members to voice their position on various legislative actions and possibly direct staff related to a consensus position.