Q1 (2024)

Business Advocacy Progress Report 

ISSUE: Fare Free Transit


POLICY PRIORITY:
Transportation, Infrastructure and Water; Crime and Public Safety
  

“Advocate for safer, more secure transit in Tucson, and for financial viability of the public transit system.”  

“Advocate for a sustainable SunTran funding solution that closes the budget shortfall gap for FY24, while keeping it as affordable and as safe as possible.” 

ISSUE: RTA Next


POLICY PRIORITY:
Transportation, Infrastructure and Water; Crime and Public Safety
  

“Ensure that the RTA (Regional Transportation Authority) Next benefits business over the next 20 years. Given that, strongly support and lead on RTA reauthorization ahead of 2025.” 

The Regional Transportation Authority of Pima County is developing a new 20-year plan to fund transportation improvements called RTA Next. This plan will replace the current plan ending in 2026 and will focus on improvements to roadways, transit, safety, economic vitality, environmental protection, and multi-modal pathways. A citizens' advisory committee and Technical Management Committee have worked with the RTA Board, the board is currently evaluating two draft proposals. The RTA Board may put the final plan to a public vote for approval. If approved, RTA Next would utilize over $2 billion in new RTA revenue over the next 20 years to fund these important transportation improvements. 

ACTION: In advance of an RTA draft being finalized Spring 2024 for public comment and review, Chamber Staff and the Public Policy Council have conducted the following informational meetings to prepare an informational and talking points sheet for members to advocate effectively later this year: (1) Public Policy Council (PPC) met with the Executive Director of Pima Association of Governments followed by (2) a discussion two weeks later during a PPC study session meeting with Chair of the RTA Board, Ted Maxwell. Additionally, (3) Chamber staff met with Tucson City Manager Ortega to discuss, among other items, RTA renewal. 

ISSUE: Prevailing Wage Requirement


POLICY PRIORITY:
Regulatory Policies  

“Oppose regulations and mandates that increase material and labor costs, impact housing affordability and put us at a competitive disadvantage for recruiting primary jobs.” 

In the ordinance adopted by the City of Tucson, firms/contractors engaging in public works projects under city contracts must demonstrate compliance with prevailing wage standards. Effective July 1, the ordinance applies to projects exceeding $2 million. Contractors must adhere to prevailing wage rates based on U.S. Department of Labor guidelines, as per the Davis-Bacon Act established over 90 years ago. The ordinance mandates timely weekly payments to workers, prohibits worker misclassification as independent contractors, and excludes voter-approved projects predating Jan. 1. Affordable housing projects and those conducted under job order contracts are also exempted.  

ACTION:  In January, the Chamber (with the affirmation of the Public Policy Council) requested the Council delay passage of the Ordinance until there was an opportunity for employer stakeholder input (which there was not prior), an appropriate public hearing (which was skipped) and to address several policy items of concern. Chamber staff voiced these concerns at Call to the Audience. Following Phoenix’s adoption of a Prevailing Wage ordinance, Goldwater Institute filed a lawsuit on behalf of several contractor and builder associations. The City of Tucson has since joined as a co-defendant. The Greater Phoenix Chamber spearheaded the submission of an amicus brief, and the Tucson Metro Chamber has joined, along with NAIOP, the Homebuilders Association of Central Arizona, and the Arizona Lodging and Tourism Association. The Southern Arizona Homebuilders Association and the Arizona Chamber are also considering joining.  

ISSUE: Outdoor Lighting Code Update


POLICY PRIORITY:
Regulatory Policies  

“Oppose regulations and mandates that increase material and labor costs, impact housing affordability and put us at a competitive disadvantage for recruiting primary jobs.” 

The update was initiated pre- Covid-19 by Pima County to address electronic message boards,  
which were not covered in the Pima County Sign Code Ordinance update. Code in its current draft accounts for a significant reduction in the lumens and color allowed by the 2012 Ordinance in response to new LED technology. This has created concerns about the impact of safety, economic competitiveness, and additional retrofitting costs to existing and new businesses and development. 

ACTION: Chamber staff has been attending Outdoor Lighting Code Committee Meetings in-person. The Chamber has provided several comments to the Committee regarding the importance of the preservation and ability of Tucson and its economy to continue to grow, business retention and attraction, and public safety. Most current drafts have been shared with membership at large and sent to targeted members. Staff have met with the new Business Representative appointed to the Committee and shared other open committee positions with membership in multiple outreaches. Staff will be updated by Law Enforcement partners following a meeting with Chief Kasmar and City/County staff on the 13th. The Chamber held a Public Policy Council Study Session on March 15th with an update from PPC members, and Chamber Board member, Priscilla Storm with Diamond Ventures. The Public comment period opens until April 12th, The Chamber will work to compile comments. Next Outdoor Lighting Code Committee Meeting to be held in the last week of April, next steps to be discussed. City and County looking to have ordinance adopted this year. 

ISSUE: Joint Consolidated Code
Committee Building Code Updates


POLICY PRIORITY:
Regulatory Policies

“Oppose regulations and mandates that increase material and labor costs, impact housing affordability and put us at a competitive disadvantage for recruiting primary jobs.” 

The Tucson-Pima County Joint Code Committee consolidates the Building, Electrical, Plumbing, and Mechanical Code Committees. Its purpose is to review and propose amendments to various codes, including the Building Code, Residential Code, Electrical Code, and more. Additionally, it serves as a standing committee between code reviews. Currently, the Joint Committee is focused on updating local building codes to align with the latest international standards. Meetings are held monthly, exclusively in person. The committee is in its discussion stages and will not be formally adopting amendments to the code yet. Several potential amendments have been on our radar around updates which would add costs to developers amid a housing affordability crisis, and updates which would potentially increase the burden on restaurant operators. 

ACTION:  The Chamber will be bringing in member(s) of the committee to discuss proposed amendments in May/June once the energy code has been released and reviewed by the committee. 

ISSUE: City of Tucson PDSD Performance


POLICY PRIORITY:
Regulatory Policies

“Ensure the impacts of fee and rate increases, such as for Planning and Development Services, Commercial Water Rates, Park Tucson, etc. do not disproportionately or inappropriately impact businesses.” 

“Advocate for full funding and staffing for the City of Tucson’s and Pima County’s Planning and Development Services Department (in ways that do not burden business), based on demonstrated success in improving/meeting industry expectations for time/service delivery.” 

A well-functioning Planning and Development Services Department is essential for managing growth, addressing housing shortages, and fostering economic vitality in a growing city. By balancing the needs of residents, businesses, and the environment, the department plays a pivotal role in shaping Tucson’s future trajectory. PDSD has not increased development review fees since 2010, but is proposing a 7% fee increase over two years, broken up into (2) 3.5% annual increases in 2024 and 2025. The increases would impact development review fees for the Department of Transportation and Mobility and Tucson Fire. PDSD is promoting that the fee increase would provide for more staffing to more quickly process development. 

ACTION: Tucson Metro Chamber staff are engaging in working groups and information sessions around Plan Tucson regulatory implementation, permit turnarounds, fee increases, adequate service levels and investments. Specifically, the Chamber has participated in information sessions around the upcoming phased, two-time 3.5 % fee increases. The Chamber has also worked to help compile feedback for the Year-One review of the city’s EV ordinance. 

ISSUE: Impact Fee Increases


POLICY PRIORITY:
Regulatory Policies  

“Ensure that impact fee policies and development fee structures are based on state statutes and are fair and reasonable to the fee payer.” 

Impact fees are one-time charges imposed on new developments to cover the costs of infrastructure necessary to support growth. Funds collected from impact fees are allocated to various service areas such as parks and recreation, police, fire, and streets, with the aim of enhancing capacity and infrastructure. The City Manager's Office is currently updating these impact fees, with the final figures and data pending from a consulting firm. The last update was in 2020, effective from July 1, 2021. The update is required by state statute to ensure that fees accurately reflect the costs associated with growth-related infrastructure improvements and that funds are appropriately allocated to support the demands of new development. Draft reports on the fee update are expected to be released in the summer of 2024, with public hearings scheduled from spring 2024 to spring 2025. The Study and subsequent Ordinance will establish the new fee structure, ensuring alignment with current development needs and financial considerations. The City Manager's Office will present an update on the March 19 agenda of the M&C Study session. 

ACTION:  Chamber staff will actively participate in stakeholder meetings in person, remaining engaged throughout the process. They will carefully consider any concerns raised by members and provide feedback to City Manager Staff accordingly. 

ISSUE: Raise the Wage AZ (One Fair Wage Initiative)


POLICY PRIORITY:
Regulatory Policies  

“Monitor and take action on the One Fair Wage Initiative.” 

“Oppose regulations and mandates that increase material and labor costs, impact housing affordability and put us at a competitive disadvantage for recruiting primary jobs.”

ACTION: The Chamber and TRAC are monitoring and planning for a counter-messaging campaign to promote among member businesses and the community. 

ISSUE: HB 2042 (Sale, Preparation; Cottage Food)


POLICY PRIORITY:
A Diversified Economy  

“Monitor expected return of legislation that will expand the foods that meet the cottage food exemption if they meet certain requirements.” 

HB2042 would liberalize current cottage food provisions in the state to allow for sale of time-and-temperature-controlled foods, such as tamales and other meat products, while having very little oversight or regulation for health purposes. The Tucson Restaurant Advisory Council (TRAC) and the Chamber collaborated during the last session to ensure a similar bill was met with a veto at the Governor's desk. However, the Governor indicated that if her concerns were addressed in the current session, she would sign it into law. The bill, in its current form, addresses the Governor's concerns (which are more related to definition of a home kitchen, and to mobile delivery). TRAC's concerns primarily revolve around the disparity in regulations between home kitchens and restaurants in other states, and overall public health concerns. These concerns include the ease of regulations on home kitchens compared to other states, which do not permit the sale of time temperature-controlled foods in this manner and often require initial inspections of the preparation space. Furthermore, there is a concern about equity, as restaurants face more stringent and costly codes and regulations impacting their bottom line. The Health Departments will not engage until after the legislation has passed. 

ACTION:  Chamber Staff has remained very active in tracking this legislation and managing the politics and policy around it. TRAC has agreed to monitor the legislation and members are predicting a potential legal challenge or using its passage as leverage for future discussions on easing the burden for operators. 

ISSUE: Plan Tucson Update


POLICY PRIORITY:
Regulatory Policy 

“Monitor Plan Tucson, Pima Prospers and Tucson Resilient Together plan development and execution to ensure they align with Guiding Principles.” 

Plan Tucson is the city's official blueprint for the future, created and approved by its residents. It serves as a roadmap, guiding development and growth in a way that reflects the diverse character and aspirations of the community. Through rounds of feedback, Plan Tucson intentionally knits together the broad array of experiences that define the city, ensuring that every voice is heard and considered. The community can contribute to the plan's update and ensure it continues to reflect the evolving needs and desires of the community. 

ACTION:  Tucson Metro Chamber held a policy focused event called “Issues with a Twist” in July on Plan Tucson Update featuring new Director of Tucson PDSD for an update on the plan development. Staff have been engaging in several working groups focusing on Transportation, Mobility and Access, Land Use, Housing, Neighborhoods and Design, and Economic Vitality. In fall of 2024, the preliminary draft of the General Plan Update will be released with opportunities for comment, from there it will be refined based on community feedback into a final draft for adoption by Spring ‘25. 

ISSUE: Tucson Resilient Together


POLICY PRIORITY:
Regulatory Policy 

“Monitor Plan Tucson, Pima Prospers and Tucson Resilient Together plan development and execution to ensure they align with Guiding Principles.” 

The City of Tucson’s Climate and adaptation Plan adopted in March of 2023. 

ACTION:  Staff monitoring for regulative implementation. Specifically the effectiveness and efficiency of policy rollouts of the plan such as the adoption of the EV ordinance requiring EV infrastructure in new development, Storm to Shade programs, and the rollout of the Resilient Southwest Buidling Code Initiative through receipt of the $3.5M RECI grant funding allowing the City of Tucson and partnering jurisdictions, organizations, and consulting agencies to draft a SW specific building code. This collaborative is currently in the process of Establishing Advisory bodies, (technical and community based) and inviting organizations to participate. The Chamber is on the list for staff to extend invitations to participate in these bodies. 

ISSUE: Prosperity Initiative


POLICY PRIORITY:
A Diversified Economy; Workforce Development; Transportation, Infrastructure and Water 

Numerous Guiding Principles and Areas of Influence across these Priorities are reflected 

The Prosperity Initiative is an intergovernmental effort to develop wealthier communities across Pima County through policies that reduce generational poverty and improve opportunity. It is led by Pima County and the City of Tucson, along with Marana, Oro Valley, Sahuarita, South Tucson, and the Tucson Indian Center. See here for more about the 13 priorities. 

ACTION:  The Tucson Chamber was a part of reviewing the development of a number of the priorities, and, along with peer organizations like the Pima County Small Business Commission, voiced approval for it moving forward when it went before the Pima County Board of Supervisors. Because it is a values document that leaves it to each jurisdiction to implement it as it so sees fit, and doesn’t have current tax or budget implications at the County-level, Chamber Staff are closely watching how the Initiative gets implemented to make sure it does not harm or obstruct business or create new taxation, etc.

ISSUE: Arizona Commerce Authority renewal


POLICY PRIORITY:
A Diversified Economy

“Work with regional Economic Development Organizations, education and other partners to ensure and improve on the Five Pillars of Economic Competitiveness: Workforce and Talent, Quality of Place, Infrastructure, Economic and Business Climate, and Regional Government and Institutions.” 

 “Create an economic environment where entrepreneurs, small business, and large industry alike can thrive, in order to have a range of wages and jobs that attract and retain talent.” 

At the beginning of the 2024 legislative session, multiple legislators, including Southern Arizona Senator Justine Wadsack, voiced a desire to end the Arizona Commerce Authority and not renew it at all.  

ACTION:  The Tucson Chamber was a part of a delegation that met with Senator Wadsack to discourage this endeavor and championed a letter from the Chamber Alliance of Southern Arizona (which Tucson Chamber CEO Michael Guymon leads) to lawmakers encouraging them to not end the Arizona Commerce Authority. This advocacy was fruitful and now the main point of discussion is decreasing the renewal period from the typical timeframe of 8 years, to 4.  

ISSUE: Pima Community College Governing Board discussion to change ‘meet & confer’ policies


POLICY PRIORITY:
Education

Oppose any policy that removes the universities and community colleges authority to oversee and manage campus operations.” 

The Tucson Metro Chamber learned of the Pima Community College Governing Board’s potential changes to BP 1.25 - Personnel Governance and Policy for College Employees. Changes to this policy that would place personnel matters into the hands of the Governing Board and, in our opinion, goes against Higher Learning Council (HLC) policy specifically related to their Criteria for Accreditation. Criterion 2. Integrity: Ethical and Responsible Conduct Section C.5. states, “The governing board delegates day-to-day management of the institution to the institution’s administration and expects the institution’s faculty to oversee academic matters.” We argue that boards of directors typically refrain from direct involvement in employee matters to maintain a clear separation of governance and operational responsibilities. 

ACTION: The Tucson Metro Chamber sent a letter to the PCC Governing Board on December 14, 2023 asking them to not to change Personnel Governance and Policy for College Employees in a way that it would place employee management and personnel matters into the hands of the Governing Board. The Board at this point has yet to make that change but we are monitoring this issue closely. 

 

ISSUE: Workforce Advocacy – Health Sciences, Construction, Mining


POLICY PRIORITY:
Workforce Development; 

Focus the Chamber’s Workforce Development efforts on Tucson’s anchor industries, such as: Aerospace, Defense and Space Exploration; Mining; and Health Sciences. Additionally, explore opportunities for Chamber engagement in the expanding green technology sector, and maintain involvement in the manufacturing industry in Southern Arizona. "

The workforce challenges in the Tucson business community must be addressed, particularly in the next 5-10 years. Mining, Construction, Healthcare and Health Science are industries that are experiencing additional obstacles. Whether it’s a tight labor market, high-stress positions and/or negative branding, the challenges are many. Additionally, barriers to a healthy, vibrant workforce persist. From unattainable housing to unreliable transportation options to a lack of access to affordable and quality childcare, without intentional intervention these challenges will continue to hinder the workforce community. 

  ACTION:  To address workforce needs in the above industries, the Chamber's Workforce Advocacy Team revamped, reimagined and relaunched its roundtables this quarter. The Mining & Construction and Health Science & Healthcare industries, key to Southern Arizona’s economy, are facing increasingly demanding workforce needs over the next 5-10. We engaged industry leaders, educational partners, and other business partners to build strategies to ensure we have a future-ready workforce for the next decade and more! Additionally, the Workforce Advocacy Team has focused on improving access to affordable and quality childcare. Examining what other states have done to make quality childcare accessible, combined with the work of The Children’s Equity Project (ASU), we are taking our first steps in bringing together a coalition of community stakeholders to address this critical need.