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The 2013 Hammer Awards

It’s the most wonderful time of the year; time to hand out some virtual hardware to the winners of the 4th annual Hammer Awards, Arizona Chamber of Commerce and Industry President and CEO Glenn Hamer’s look back at the wild and the wacky of the year in politics and anything else that’s on his mind.

State Leader of the Year: Gov. Jan Brewer

This one was a runaway. Not even close. The governor at the outset of the 2013 legislative session took on a set of issues that would make most elected officials wilt: Medicaid restoration and sales tax reform. She spearheaded highly effective campaigns on both issues, stood strong against a motivated opposition, and won the day in each case. Her accomplishments as governor are too numerous to mention, but she outdid herself this year, adding to her profoundly positive record for the state’s business environment for which the state will reap rewards for years to come. She’s building a legacy that will be tough to match.

National Politician of the Year: New Jersey Gov. Chris Christie

Are you a Republican interested in running for statewide or national office? Take a lesson from two-time Hammer Award winner Gov. Chris Christie. The governor worked hard in his first term to burnish his image as pragmatic problem solver, and it paid off in 2013 when he won re-election in a route. Buoyed by a bevy of must-see YouTube videos, Gov. Christie made deep inroads into segments of the electorate that have been leaving the GOP in droves. I have no idea whether a Christie presidential campaign in 2016 will be a winning one, but his opponents underestimate him at their own peril.

Legislators of the Year: Reps. Debbie Lesko and Heather Carter

Some legislators get drafted into a fight, others volunteer. Rep. Debbie Lesko and Rep. Heather Carter volunteered to champion the year’s most contentious policy issues, and for that they each win a Hammer.

Rep. Lesko expertly navigated the thorny issues surrounding the reform of the state’s byzantine sales tax system in the face of an opposition that was perfectly willing to run out the clock on the legislative session and stick with the status quo. Rep. Lesko teamed with the governor’s tax guru, Michael Hunter, and refused to the let the session end without real reform.

Courage is an overused term in politics, but Rep. Carter has it in spades, as demonstrated by standing shoulder to shoulder with Gov. Brewer in her campaign to restore the Proposition 204 AHCCCS population. Rep. Carter didn’t waiver and remained committed in her belief that backing the governor’s plan was the right move. She was right on the policy, and I’m confident she’ll be proven right on the politics.

Rising Star of the Year: Adam Deguire

Rep. Matt Salmon’s Chief of Staff Adam Deguire has quietly become a mover and shaker in western politics. The Brophy grad has hit his stride as Rep. Salmon’s top aide after guiding Salmon’s return to Congress in the 2012 elections. Adam has done stints at the Republican National Committee as a field rep, was a senior level campaign and transition team aide to New Mexico Gov. Susana Martinez in her 2010 run, and led the Hawaii GOP as its executive director. I always think it’s risky for a Hill office staff not to have ties back to the home state. Having Adam lead the staff and earn the frequent flyer miles between Phoenix and D.C. is a great move by Rep. Salmon, who will be well served by Adam’s commitment and loyalty.

Fighting the Good Fight: Sens. John McCain and Jeff Flake

I’m in the camp that firmly believes that we’re going to see a true immigration reform package land on the president’s desk in 2014. (For those keeping score, I was also confident that we were going to get a deal in 2013, but who knew that a government shutdown and an amateur hour website were going to crowd out every other issue.) But as we sit here on the cusp of a transformative shot of adrenaline for the American economy, let’s give a Hammer where a Hammer is due. We would not have gotten this far were it not for Sen. John McCain and Sen. Jeff Flake. Arizona is incredibly fortunate to have these men representing us in the world’s greatest deliberative body.

The Great Communicator: Matt Benson

Gov. Brewer has an outstanding team, including a few members who have won Hammers over the years. This year the governor’s former press secretary, Matt Benson, takes the honors for his outstanding work as the 9th Floor’s flack.

Issues like Medicaid restoration and TPT reform were incredibly complicated and they required their own public relations campaigns, but Matt communicated the governor’s positions on these and a host of other issues and acted as a liaison between the governor and her supporters, all while making it look easy. I should also note that there is no such thing as a day off for a gubernatorial press secretary, and Matt deserves a shout out for taking incoming fire from the fourth estate while he and his wife are still navigating the toddler years. Matt’s new firm, Veridus, is lucky to have this Hammer winner on board.

I Miss You, Man Award: David Cavazos

Phoenix is the best run big city in America. That’s in large part due to the dynamic Mayor Greg Stanton and a city council of professionals. But Phoenix this year bade farewell to its terrific city manager, David Cavazos. David was able to move effectively between different political factions in order to do what was right for the city. Having led efforts that ranged from attracting new investment to downtown Phoenix to spearheading trade missions to Mexico, he leaves big shoes to fill here. I don’t envy the search committee on this one.

A testament to David and Phoenix’s work is the appointment of Ed Zuercher as acting city manager. David left a great team behind as evidenced by Ed, a consummate professional, stepping into the top job.

An Apple a Day Award: Sandra Watson

I continue to be impressed by Arizona Commerce Authority CEO Sandra Watson’s talents. She’s taken the economic development toolbox assembled by the governor and Legislature and built something significant here. Constructing the deal that brought Apple to Mesa was a master stroke.

I can tell you from having traveled to Taiwan with the governor right after the deal was announced that bringing one of the most recognized brands to Arizona was a worldwide story. I did not expect dozens of Taiwanese reporters and businesspeople to pepper our delegation with questions about what makes Arizona so attractive to high-tech manufacturers. Sandra’s work is rippling around the glove, and for that she deserves a Hammer.

The Youngest Elder Statesman Award: Jaime Molera

The business community in 2013 rallied around Gov. Brewer’s health care restoration plan, but the campaign didn’t start to gel until Jaime Molera took on the role of a sort of campaign chairman. Jaime had the credibility and talent to bring together a host of lobbyists from across the health care and business community and assemble a dynamite team of political operatives to get the deal done. I hesitate to call a young man like Jaime an elder statesman, but the results leave little doubt that he was the right man for the job. Arizona owes a debt of gratitude to Jaime for stepping into the breach.

I would be remiss if I did not also acknowledge the work of Anne DeGraw, Jaime’s colleague at the firm of Molera-Alvarez, and Brittney Kauffman at the Arizona Chamber, both of whom ran the statewide campaign’s day-to-day affairs. Though he didn’t need it, they made Jaime look good.

The Mariano Rivera Best Closer Award: Jim Norton

On the last night of a legislative session, you can practically hear “Enter Sandman” echoing throughout the Capitol. This is the time that Chamber lobbyist and R&R Partners big shot Jim Norton shines.  When it comes to closing a deal, he’s the Mariano Rivera of lobbyists. He’s the best in the business, and I am incredibly fortunate not only to have him as the Chamber’s advocate at the Capitol, but to call him a friend.

He’s also a pretty good dancer. Give the man a Hammer.

The Legislative Branch Foreign Service Award: Speaker Andy Tobin and
his Mexico City trade delegation

Arizona in very recent history has had its share of missteps when it comes to our relationship with Mexico, which is why Arizona House Speaker Andy Tobin and the seven legislators who traveled to Mexico City with him this year all deserve Hammers for hitting the reset button south of the border.

The speaker was joined by Rep. Tom Forese, Rep. Catherine Miranda, Rep. T.J. Shope, Rep. Karen Fann, Rep. Juan Carlos Escamilla and Rep. Lydia Hernandez. The bipartisan delegation was received warmly by everyone we met from Mexico’s executive and legislative branches, with everyone appreciating the genuine effort made by the bipartisan Arizona delegation to make clear that we view the Arizona-Mexico relationship as a special one characterized by friendship and trust.

Also deserving recognition are Phoenix Mayor Greg Stanton and Tucson Mayor Jonathan Rothschild, who led their own delegation to Mexico City this year. Both the mayors’ and the speaker’s trips drove home the potential benefits that could be gained by putting down deeper roots and elevating our presence in Mexico’s political and financial capital.

The Next Great Buddy Cop Tandem: Luis Gonzalez and me

I had the pleasure earlier this year of traveling to Guadalajara, Mexico with a delegation led by Mayor Stanton. As a big baseball fan, I was thrilled when I found out Luis Gonzalez was joining our group as a representative of the Diamondbacks.

By the time trip was over, I had been able to give Luis my keen insights on the improper use of closers, the proper execution of a suicide squeeze play, hidden ball tricks and when to pitch out against left-handed batters. I got the feeling there was some real chemistry there, the kind that a Hollywood screenwriter might want to tap into for the next buddy cop hit. I sense box office gold.

Most Versatile Player Award: Steve Macias

One of the reasons I love my job is because I get to work with an absolutely first class board of directors. The boards of the Chamber and the Arizona Manufacturers Council are comprised of some of the most outstanding leaders in their industries across the state.

One of these leaders is Steve Macias, the chairman of the AMC. Steve is the consummate champion for manufacturing in Arizona. As the president of Pivot Manufacturing, Steve knows the shop floor firsthand, which makes him such an effective advocate for this critical sector of Arizona’s economy.

Steve does it all for the Chamber. In addition to chairing the AMC, he’s always willing to serve as a master of ceremonies or moderator, and he’s an outstanding writer, providing insight through his occasional Made in Arizona columns. And the guy’s got a biting wit. He deserves a Hammer.

The Milton Friedman Rock Star of the Year Award: Bono

U2 frontman Bono has long been a champion of foreign and charitable aid to Africa as a means to alleviate poverty across the continent.  But in a speech at Georgetown this year, he said, “Aid is just a stopgap. Commerce [and] entrepreneurial capitalism take more people out of poverty than aid. We need Africa to become an economic powerhouse.”

Bono, your Chamber membership form and PAC solicitation are in the mail along with your Hammer.

Book of the Year: Immigration Wars: Forging an American Solution
 
Former Fla. Gov. Jeb Bush and Goldwater Institute legal beagle Clint Bolick win the Hammer for their book Immigration Wars.

The book is an excellent piece of work, full of real, actionable solutions on the immigration front that could find themselves into the House’s immigration package.

Citizen Advocates of the Year: Linda Stanfield and Craig Barrett

One of them owns a plumbing franchise; the other is the former CEO of one of the world’s most respected tech companies. But both of them win a Hammer for stepping into the arena of public advocacy.

Linda Stanfield runs Benjamin Franklin Plumbing in Arizona. She was the public face for TPT reform this year, testifying in committee hearings, appearing in campaign videos and standing alongside the governor at press conferences and, deservedly, at bill signing ceremonies. We need more Linda the Plumbers shaping policy in Arizona.

Craig Barrett heads Gov. Brewer’s Arizona Ready Education Council. He’s also the former CEO of Intel. If he wanted to, he could spend his days on a beach sipping mai tais, but instead he’s devoting his energy to ensuring that Arizona has an absolutely world-class education system, with high standards and expectations, accountable principals and teachers, engaged parents and students ready to learn.

Supreme Court Decision of the Year: Campaign contribution limits (award accepted by Rep. J.D. Mesnard)

Since it might seem unseemly to bestow state Supreme Court justices with the acclaim and notoriety that comes with a highly valued Hammer award, I’ll recognize state Rep. J.D. Mesnard, the architect of legislation that ushered in the modern era of political free speech in Arizona in a law recently upheld by the state’s highest court.

Also deserving recognition are attorney Mike Liburdi, who successfully argued in favor of the new contribution limits and Andy Gordon who, on behalf of the business community, filed an amicus brief that argued for the removal of aggregate limits on a candidate’s ability to accept PAC donations. Hammers all around!

Chairman of the Board: Rep. Tom Forese

Who needs a Hammer when you’ve got a gavel? Give Rep. Tom Forese a Hammer Award for expertly using his position as state House Commerce Committee chairman to hold informational hearings on topics that matter for Arizona’s economy. I was able to participate in his hearing on the state’s aerospace industry and the mining industry this year, and both were filled with outstanding content. There are true industry leaders in Arizona, and Rep. Forese deserves kudos for urging them share their knowledge with lawmakers.

From all of us at the Arizona Chamber, we wish you all the best this holiday season and in 2014.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry. The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans.

law

Frutkin Law Firm Continues to Grow

The Frutkin Law Firm has added James Arrowood to its growing roster of attorneys. This is the third attorney hired by the firm in the past year. Arrowood brings extensive experience in business law, dispute resolution, and business negotiations to the firm.

As a Senior Counsel Attorney at The Frutkin Law Firm, Arrowood focuses his practice in the areas of conflict resolution and litigation, real estate, strategic financial and tax planning, and business law. He has also developed an emerging practice related to the special legal and financial needs of successful medical professionals and groups.

Before joining the firm, Arrowood served as counsel at one of the largest law firms in the world and as in-house counsel at several companies. As a result of his experience, he gained a wide breadth of business and legal knowledge, including an appreciation for business considerations in light of legal issues. Arrowood also spent a year living in London, England where he studied international law and interned in the House of Lords (England’s equivalent of our Supreme Court/Senate at the time). After law school, Arrowood worked as a litigator for a large firm in Philadelphia and then continued on to Washington D.C., New York, and Los Angeles before making Arizona his home base in 2010.

Arrowood graduated from the law school at University of Notre Dame in 2002 after he earned dual Bachelor of Arts degrees from University of California, Irvine in 1999. He has bar admissions in Arizona, California, and New Jersey, as well as affiliations with the 9th Circuit, California District Courts, District Court for Arizona, Eastern District Court for Pennsylvania, and United States Tax Court.

The Frutkin Law Firm now consists of ten attorneys with decades of experience in the core areas of business law, bankruptcy, estate and tax planning, and civil litigation. For more information on The Frutkin Law Firm and practices areas, visit www.frutkinlaw.com.

real estate - expanding to california

Shine coming off the Golden State

The Tax Foundation in its 2013 State Business Tax Climate Index tells us something most of already know: California has high taxes. Really high.

In its state-by-state rankings, California checks in at 48, duking it out with New Jersey and New York at the bottom of the barrel. Breaking out the ranking in its component parts, California comes in at 45 for corporate taxes and 49 for individual tax rate.

The hits keep on coming. The California Taxpayers Association reports that California has the highest statewide sales tax in the nation and the country’s second-highest gasoline tax.

So it doesn’t take an economic development wizard to figure out that California’s pain could be Arizona’s gain. After all, while our governor and Legislature have been reforming Arizona’s tax code to make it friendlier to business, California has been going in the opposite direction.

As the Arizona Commerce Authority made clear last week in a presentation by ACA CEO Sandra Watson before the House Committee on Commerce, our state’s job creation authority is well aware that our proximity to California and our fertile jobs environment can drive job growth here at home.

But as Watson said in her testimony, “the opportunity in California goes way beyond a tax discussion.” The state’s California strategy is about opening doors to the world’s ninth largest economy and taking advantage of the opportunities our nearness to that market allows.

The ACA has set up offices in Santa Clara and Santa Monica where it has two executives working full-time as market representatives, spreading the word about what Arizona has to offer for firms exploring expansion, while also helping Arizona take advantage of the benefits our proximity to California has to offer, such as improved supply chain access.

As Chamber board member Pete Bolton of Newmark Grubb Knight Frank said at the same hearing, the tremendous growth in warehousing seen in the West Valley can be attributed to logistics. The area, according to Bolton is “zoned properly and that’s where the trucks come from. You get on I-8 and mostly I-10, it is a very serious line of trucks coming from the ports. The ports in Los Angeles distribute a huge amount of the products that we all consume.”

Sharing a border with California is advantageous to our other neighbors as well.  Currently, Texas and Mexico are tied for the 14th largest economies in the world and they, too, enjoy the access to California that Arizona provides. Arizona is well positioned to easily ship goods to market, while companies looking to hire California talent can set up shop in Arizona and have easy access to that talent pool.

As Watson pointed out, “Businesses generally don’t pay attention to a state border when they’re looking at access to markets. They’re going to ship their goods in and out, [and] they’re going to access the talent in those markets.”

Arizona is making tremendous strides in emerging technology and aerospace and defense. Having a flag planted in California, home to venture capital firms looking to invest in the next big thing, means opening doors for Arizona firms looking to be that next big thing. Beyond just access to capital, locating in Arizona means Arizona companies can enjoy the benefits of California without the high cost of doing business next door.

But the ACA’s strategy in California is more than just one state versus another or one region’s economic dynamism versus another’s. This is about global competition. By hanging a shingle in California, the ACA has access to the many multinational firms that call California home and is more easily able to interface with them to help Arizona companies reach customers around the world, especially since the world’s fastest-growing economies all have consulate offices in California.

Currently, the ACA has been in touch with over 200 potential leads and partners through their offices in California. Of those leads, more than 40 are truly qualified and are currently being pursued. The ACA is hopeful that more of those leads will become solid partnerships and that Arizona will continue to grow our presence within California. Greater Phoenix Economic Council President and CEO Barry Broome nailed it when he said, “California’s economy and Arizona’s economy are intertwined.”

But I close with a note of caution. For all that Arizona is doing right and California is doing wrong, let’s remember that the Golden State is our next door neighbor. While we’ve got the manicured lawn, our neighbor’s yard is overgrown with weeds and there’s a car up on blocks. It’s an eyesore and bringing down the value of the whole block.

The U.S. Chamber of Commerce is so concerned about the direction California’s taken that it’s launched the California Comeback, a policy initiative designed to help advance California’s recovery. A state with as much to offer as California is too important not only to Arizona but to the entire country to allow it to fail.

Admittedly, Arizona has much to gain by California’s struggles; we’re an escape hatch from their high taxes and stiff regulations. But we have so much more to gain when California makes a full recovery.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry. The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans.