Gov. Doug Ducey has signed legislation cutting state shared revenue from municipalities and counties that pass regulations like plastic bag bans that conflict with state law.
The Republican governor's action on Thursday came despite a plea for him to veto the bill from the organization representing all 91 Arizona cities and towns.
The letter the Arizona Cities and Towns sent to Ducey Thursday says Senate Bill 1487 minimizes the important role of local elected officials and calls it heavy-handed and intrusive.
Ducey spokeswoman Annie Dockendorff says the legislation ensures that everyone in the state is playing by the same rules.
The bill by Senate President Andy Biggs would penalize cities and towns after an attorney general's investigation.
The state sent nearly $1.1 billion to cities and towns last year.
