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State Senate Finance and Commerce Committee Passes SB 1213

Introduction of SB 1213

The state Senate Finance and Commerce Committee on Monday passed SB 1213, a bill that aims to aid small businesses in communities with high wage mandates. The bill advocates for the establishment of a tax credit for employers to mitigate their increased labor costs. This credit would be funded by the state withholding a portion of the city or townÔÇÖs state shared revenues.

Details of the Bill

Sponsored by state Sen. Wendy Rogers, R-Flagstaff, the bill passed on a 4-3 party line vote. The bill aims to hold a city accountable for implementing a higher minimum wage than the state, as explained by Rogers. Currently, the statewide minimum wage stands at $14.35 per hour, while in Flagstaff, it is $17.40 per hour. The legislation extends a 5% tax credit to employers on the difference between their wage bill and what it would have been in a city that follows the state minimum wage. Additionally, the bill caps the amount of shared revenues that could be withheld from a city at $5 million annually.

Impacts and Opposition

Joe Galli, from the Greater Flagstaff Chamber of Commerce, highlighted the significant impact of the cityÔÇÖs higher minimum wage on local businesses. He emphasized how the bill provides an opportunity for businesses to reinvest the credit back into the local economy, thus leveling the playing field. However, State Senate Minority Leader Mitzi Epstein, D-Ahwatukee, opposed the bill, arguing that businesses should find cost savings in highly inflated C-level jobs to cover their increased labor costs.

Additional Considerations

The Census Bureau notes that the median household income in Flagstaff is $65,652. Labor unions have also expressed their opposition to the bill, citing prevailing wage ordinances in Phoenix and Tucson. The subject of a lawsuit, these ordinances peg labor rates for public works projects to rates set by the Department of Labor.

Supportive Organizations

Several chambers of commerce, including the Arizona Chamber of Commerce & Industry, the Greater Phoenix Chamber, and the West Valley Chamber of Commerce Alliance, have expressed support for establishing the tax credit.

How AI legalese decoder Can Help

AI legalese decoder can assist in deciphering the complex legal language used in the bill, making it more understandable for the general public and stakeholders. It can clarify the implications of the legislation for both employers and employees, facilitating informed decision-making. Moreover, the AI legalese decoder can streamline the interpretation of prevailing wage ordinances, aiding in understanding the potential impact of the bill on public works projects in different municipalities.

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