Arizona business leaders have been rallying against the dangers of illegal trade, creating partnerships with national institutions and between the private and public sector to respond to this crisis. Illegal trade presents a continuing threat to Arizona’s economic prosperity and public safety, and leaders with diverse backgrounds have come together to find common solutions.

The smuggling of illegal and counterfeit goods is nothing new for our state. Because of our 370-mile-long border with Mexico, Arizona often sees the worst of these criminal activities., federal authorities seized more than $13 million in smuggled currency, third most in the nation.

The profits criminal organizations accumulate from smuggling at the border are an escalation in criminal activity. Because of this recycling of illegal funds, Arizona has the 13th highest rate of human trafficking in the country, with nearly 1,400 cases since 2007.

The burdens wrought by illegal trade can be devastating to commerce and public safety. Cigarette smuggling alone leads to $125 million every year in lost tax revenue. In 2021, nearly $1.3 billion was lost in retail thefts.

It’s not just money. Illegal trade puts lives at risk. Massive fentanyl seizures are commonplace. In recent weeks, a cache of fentanyl precursor chemicals was seized from a Tucson warehouse. Because of the scale and complexity of illegal trade, business leaders must create partnerships that mobilize community resources.

The Arizona Â鶹´«Ã½Ó³»­ of Commerce & Industry has been proud to support United to Safeguard America from Illegal Trade (USA-IT), a private-public partnership that protects Americans from black market criminals. Last December, the Â鶹´«Ã½Ó³»­ was recognized with the 2022 Award for Most Committed USA-IT Partner for its dedicated work on the frontlines of the illegal trade issue.

These partnerships build upon the work of business leaders, law enforcement, and policy experts to understand the many facets of illegal trade and to develop strategies to combat them.

This work is exceedingly important as Arizona prepares to welcome hundreds of thousands of out-of-state visitors to our state for the Waste Management Phoenix Open and Super Bowl LVII. These mega-events are economic drivers and present an unparalleled opportunity to showcase Arizona. And while we like to focus on the enormous potential to attract prospective business, we also must recognize the potential to attract bad actors.

It is not uncommon to see an uptick in illicit trade,, human trafficking, and related illegal activity during the Super Bowl. Fortunately, Arizona is not new to hosting major sporting events, and we’re confident our law enforcement, tourism sector, and broader business community are better prepared than ever to mitigate and address these issues. With their commitment and collaboration – and the vigilance of all residents and visitors – we can ensure another safe and successful Super Bowl experience for all.

At the Legislative Forecast Luncheon hosted by the Arizona Â鶹´«Ã½Ó³»­ last month, Arizona’s new Attorney General Kris Mayes shared her commitment to address this issue. The partnerships which are being made with state and federal officials, USA-IT, and the business community will be essential in taking on this challenge and in defending the security and economy of our state.

Mike Bailey is general counsel and director of legal reform programs for the Arizona Â鶹´«Ã½Ó³»­ of Commerce & Industry

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The quest for increased traffic safety on Phoenix streets took a hit last week when the Phoenix City Council opted to end its contract with the city’s intersection camera technology provider.

A to extend the contract with Glendale-based Redflex Traffic Systems for $800,000 failed by a 4-5 vote Wednesday, Nov. 20.

Arizona has the highest rate of red light running fatalities in the United States, by the AAA Foundation for Traffic Safety. The foundation was established by the American Automobile Association in 1947 as a charitable research organization with a mission to prevent traffic deaths and injuries by researching their causes and preventive strategies.

“Deaths caused by red light running are on the rise,� said Jessica Cicchino, vice president for research at the Insurance Institute for Highway Safety, in a earlier this year. “Cameras increase the odds that violators will get caught, and well-publicized camera programs discourage would-be violators from taking those odds. Camera enforcement is a proven way to reduce red light running and save lives.�

Barb Hoffman, executive director of the , said her group was disappointed with the Council’s vote.

“From research that we’ve seen, red-light-running cameras do reduce the amount of deadly crashes in intersections,� she said. “We do support the camera technology; we think it does save lives.�

Hoffman, who joined the Alliance in 2004 after her 14-year-old son Michael was killed by a red-light-runner in Mesa, said the Council is listening to a vocal minority that opposes the technology. 

“I think what happens a lot of the times is the people that are not law-abiding citizens, who run red lights and get their picture taken, are the most vocal because they’re angry they got caught,� she said. “They should realize they’re lucky they got caught doing that and not killing somebody. I have no patience for the people that complain to me about getting a ticket.�

Councilman Sal DiCiccio he voted against the proposal because he considers it a “continuous money grab� alongside other municipal services that have recently increased in price, including garbage removal and ride-share trips to the airport.

“There wouldn’t be any ‘money grab’ if nobody ran red lights,� Hoffman said. “If your picture’s not taken in the middle of the intersection, you’re not going to get a ticket in the mail, [and] you don’t have to pay a penny.�

The Associated Press that Councilman Michael Nowakowski said he voted against the extension because he was never provided with information on the extension that he had requested months before.

The City of Phoenix currently has stationary red-light cameras at 12 Valley intersections and a number of mobile speed enforcement units that can be placed in school zones and other closely watched areas, according to the AP.

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