State Capitol News
4:55 am
Fri March 7, 2014

Newspapers in Arizona to Keep Incorporation Revenue, For Now

Newspapers are not going to lose a government-mandated source of revenue, at least not this year. Arizona Public Radio’s Howard Fischer explains.

Credit ieanea.org

Current law requires new corporations to publish their articles of incorporation three times in a newspaper. There are similar publication requirement for other changes in corporate structure. Rep. John Kavanagh said the mandate is both outdated and no longer necessary. He said the Arizona Corporation Commission already makes the same information available on its website. His measure to eliminate the requirement drew fire from newspaper owners and publishers who said there is a need for independent verification that there has been a public notice. But, Kavanagh said there also were arguments that legislators should keep the publication requirements, even with Internet access, to keep smaller newspapers alive.

“If we use that philosophy, we would require every auto manufacturer to put a buggy whip in the trunk because we would not want those buggy whip manufacturers to go out of business with the advent of the automobile. This is an anti-business favor to newspapers,” Kavanagh said.

But, Kavanagh was unable to gain the support of a majority of House colleagues when the measure came up for a vote Thursday, even after saying the requirement costs businesses $12 million a year.