Arcadia News — award winning neighborhood news since 1993
April 2015
April 2015, page 7

Page 6 April 2015 By Alexis Glascock Beer, Apple and Uber are a few of the issues that the Arizona Legislature is grappling with this session. Beer involves the microbreweries’ efforts to increase their production; Apple will receive tax incentives for its new data control center in Mesa; and Uber has the green light for now to continue providing a ride-sharing service. Beer is among the most contentious issues facing the legislature this year. Craft breweries want to increase their production from 40,000 barrels per year without losing their restaurant and retail licenses. Under current law, a brewery cannot maintain a restaurant or shop once it crosses the current production threshold. Senator Kelli Ward introduced SB 1030 on behalf of microbreweries, such as Four Peaks in Tempe, to allow them to graduate from a microbrewery to a producer, and still maintain up to seven restaurants and retail locations. Conversely, Senator Steve Smith introduced SB 1437 on behalf of the wholesalers and distributors to change the entire structure of microbrewery liquor licenses for any new licenses granted after July 2015. Senator Smith, who argued that his bill would level the playing fi eld and make the law equal for all entities, decided to hold his bill in the Commerce and Workforce Development Committee without a vote, presumably because of the strong support for Senator Ward’s bill. Meanwhile, Senate President Andy Biggs may have reached an agreement between the two camps. At present, it appears that they have agreed to a compromise, which involves a new cumulative limit on microbrewery production of 200,000 barrels a year, regardless of the number of licenses held by a microbrewery company. So, the next time you order a beer, know that it is a spirited issue at the Capitol. Another hot topic currently in the legislature surrounds Apple’s plan for a new facility in Arizona that will manage the iCloud. Apple is housing a new data control center in the Mesa location of its former sapphire glass manufacturer, GT Advanced Technologies. Governor Doug Ducey announced in February that Apple is investing $2 billion in a new data center that will also function as a command center for monitoring Apple’s other data centers around the world. It is one of Apple’s largest investments to date, as they expect to create Beer, Apple and a green light for Uber in Arizona 600 engineering and construction jobs. Of those, 150 jobs are permanent positions at the Apple plant. To facilitate Apple’s success with this venture, the legislature passed a renewable energy tax credit and exemptions to cover the 1.3 million-square-foot data center. The bill is designed to expand an existing $5 million sales tax credit that was passed in 2014 to include international operational centers that make a capital investment of $1.25 billion, which would include the Apple facility. To obtain the sales tax credit, Apple will need to invest $100 million in renewable energy facilities and utilize a portion of that energy to power its data center in Mesa. The bill also exempts the new data center from paying sales tax on electricity or natural gas, which is a $1.3 million dollar savings to Apple. However, the governor and legislature anticipate a much greater positive economic impact from the job growth and increased overall tax revenue from building the facility. The bill passed the House and the Senate and was signed by the governor in March. On another note, do not worry about deleting the Uber app from your phone. Ride-sharing companies like Uber and Lyft are not on the legislative radar this session. Last session, Governor Brewer vetoed a law to establish a regulatory and insurance framework that would exempt Uber and Lyft from the laws that taxi companies follow, which subjected the ride- sharing drivers to citations of up to $1,800. In contrast, Governor Ducey recently directed the Arizona Department of Weights and Measures to suspend all enforcement against ride- sharing companies in the state, which effectively legalizes their services and eliminates the stringent fines. Nevertheless, stakeholder meetings are taking place and the issue could return in the form of a bill to formalize the exemptions for ride- sharing services in a statute. Under the current scenario, ride-sharing apps continue to prevail. — Alexis Glascock is Of Counsel, Government Affairs & Lobbying at Gallagher & Kennedy. For more information about Ms. Glascock, please visit www.gknet.com. 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