The House Ways and Means Committee voted to return House Bill 2722, commonly described by its sponsor as the "Taxpayer Protection Act," with a due-pass recommendation after hearing testimony both in favor and in respectful opposition.
Representative Carter, the bill sponsor, said the bill codifies the Arizona Supreme Court's approach to the state constitution's gift clause and clarifies judicial procedures to challenge public expenditures that effectively transfer public resources to private parties. "We have seen abuses of that in the past," Carter said, and the bill is intended to reflect existing case law.
Greg Blackie of the Arizona Free Enterprise Club supported the measure, saying it would reduce repeated litigation and ensure governmental entities apply a consistent test before directing public resources to private projects. "What HB 27 22 does is it simply ensures that all governmental entities know that the gift clause does apply before they provide a public expenditure to a private entity," Blackie said.
Representatives of public-safety unions asked for stakeholder meetings and raised concerns about potential unintended consequences for pensions, release time, and cooperative programs. Joe Clore of the Arizona Police Association and Brian Willingham of the United Phoenix Firefighters Association urged more time for consultation and for precise drafting to avoid interfering with compensation, pension or cooperative community programs.
Representative Carter and committee members acknowledged the unions' concerns and encouraged further stakeholder discussions. After debate, the committee voted 5–4 to return the bill with a due-pass recommendation.