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Looking Ahead to this year's Elections
In the midterm elections, voters will cast their ballots for federal and state offices, including Congress, Arizona’s Governor, State Senators, and Representatives, Secretary of State, Mayors for Carefree and Cave Creek, and town council members for Carefree and Cave Creek. The Primary Election is currently scheduled for August 4, 2026, and the General Election is November 3, 2026. For upcoming election dates and deadlines, visit Calendar.Maricopa.Vote. And, it’s never too early to verify or update your voter registration status at BeBallotReady.Vote.
2120 - Bills Introduced
11 - Bills Vetoed
3 - Bills Signed
Arizona officials fight DOJ demand for voter data, citing privacy concerns
Key Points:
- Arizona Secretary of State Adrian Fontes faces a lawsuit over voter registration records
- DOJ demands access to nearly 5 million Arizonans’ voter registration records for “election protection.”
- A California judge recently dismissed a similar DOJ request as “unprecedented and illegal.”
Secretary of State Adrian Fontes is going to get some legal help in his battle with U.S. Attorney General Pam Bondi over the state’s voter registration records.
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Arizona GOP push to standardize state election dates
Key Points:
- Republican lawmakers seek to override local election laws
- Senate Committee approves measure for uniform election dates
- Tucson Mayor Regina Romero opposes state control over local elections
Republican state lawmakers are making yet another try to tell Tucson — and all the state’s charter cities — when to hold their elections.
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Republicans bring back Florida-style election measure
Key Points:
- House sponsor says measure would speed up election results
- It includes a voter ID provision
- The governor vetoed a similar proposal last year
House Republicans have approved a returning measure intended to reshape Arizona’s election process in the form of Florida’s.
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Arizona may become first state to ban lab-grown meat
Key Points:
- Arizona lawmaker proposes ban on lab-grown meat sales
- Violators could face 18 months in state prison
- Arizona may impose the country’s first outright ban on lab-grown meat
You can’t yet buy it in stores.
But a Benson lawmaker is moving to make sure that lab-grown meat is never, ever available in Arizona. Not at the grocery stores. And not at restaurants.
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Arizona lawmakers propose Swedish rounding system to address penny shortage
Key Points:
- US Mint stopped producing pennies due to economic reasons
- Stores run out of pennies, leading to exact change issues
- Merchants must post a notice about cash rounding at the point of sale
Penny for your thoughts?
If you’ve got three, better make that a nickel.
With pennies no longer in production, state lawmakers are moving to set new rules for what happens when the grocery, clothing store or mall outlet price tag ends in something other than a 5 or a 0.
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American Businesses at the Heart of Valentine’s Day
The National Retail Federation (NRF) estimates that 55% of consumers plan to celebrate Valentine’s Day in 2026, with an estimated $29.1 billion spent on the holiday, or about $199.78 per household. Both spending figures have surpassed previous records.
READ THE REPORT
Bills Restrict Local Government Revenues
Several bills targeting local government revenue sources were introduced this year in the legislature.
HB 4030 - Prohibits a municipality and a county from adopting, imposing or collecting increased fees, transaction privilege tax and utility rates, beginning July 1, 2026 through June 30, 2030.
HCR 2052 – Creates a ballot measure that prohibits, a municipality and a county from adopting, imposing or collecting increased fees, transaction privilege tax and utility rates, beginning July 1, 2026 through June 30, 2030.
SB 1745 – Caps at 2.5 percent, for cities and towns with a population of 550,000 persons or more, the transaction privilege tax (TPT) or excise tax rate that may be imposed on each TPT classification. Requires a city or town to submit any proposed increase in a TPT or excise tax to the voters and exempts a TPT or excise tax rate approved by voters from the tax rate cap. Requires the Attorney General (AG) to withhold state shared revenues from a city or town that violates the tax rate cap or voter approval requirements. This bill failed in the Senate this week.
Tourism Areas Bill Moves Forward
A bill that allows local governments to establish tourism areas moved forward this week in the legislative process. HB 2950 enables a governing body to approve the formation of a tourism improvement area. This opt-in bill would allow communities to limit a tourism area assessment to $5 or 5% per room sold per night on lodging business rooms in the tourism improvement area. The bill moved through the House Committee of the Whole on Thursday.
A staff summary of the bill can be found here.
Governor Vetos Second Conformity Bill
Governor Hobbs vetoed a second conformity bill that matches the tax forms released this year by the Arizona Department of Revenue last week. HB 2785 conforms Arizona tax statutes to the U.S. Internal Revenue Code (U.S. IRC) as of January 1, 2026, to reflect changes adopted by the U.S. Congress during 2025. The Governor suggested the Legislature send her a "Middle Class Tax Cut," which includes tax cuts on overtime pay, tips, and a standard deduction.
The Governor's veto letter can be found here
Credit Card Interest Rate Caps Threaten Americans, Small Businesses
Key Takeaways:
- A government-mandated interest rate cap would punish households and small businesses by limiting credit options and reducing access to affordable credit.
- Capping credit card interest rates sounds helpful, but it would actually make banks lend less, so many small businesses and low-income families would lose access to credit cards.
- If credit cards dry up, small businesses will struggle to cover urgent costs and will be pushed into more expensive and riskier loan options.
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Arizona and other Colorado River basin states miss the latest deadline on water use deal
A Feb. 14 deadline came and went without Arizona and the other Colorado River basin states coming to terms on a new operating agreement amid historic drought conditions.
One day before the missed deadline, Central Arizona Project (CAP) President Terry Goddard told KTAR News 92.3 FM’s Arizona’s Morning News the ongoing dry spell represents “the longest continuous reduction in precipitation” on the Colorado River watershed in roughly 1,000 years.
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Where Arizona ranks among states for adding new residents
Arizona ranked 4th in net domestic migration in 2024, gaining 55,505 new residents, according to an analysis from the Economic and Business Research Center (EBRC), which focuses on applied economic research and community education for Arizona.
In 2024, over 7 million Americans changed their state of residence, according to the 2024 1-year American Community Survey (ACS). This substantial movement reflects ongoing demographic shifts reshaping the nation’s population distribution.
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Arizona bill to crack down on problem short-term rentals clears House committee
An Arizona bill that would help crack down on issues at short-term rentals cleared the House Commerce Committee on Wednesday.
House Bill 2429 would help update and clarify what local governments can do regarding vacation and short-term rentals.
Specifically, it sets up overnight occupancy standards, meaning that no more than two adults per sleeping area plus up to two additional persons may stay at the rental.
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What the Supreme Court Decision on Tariffs Means for Small Business
U.S. Chamber of Commerce Chief Policy Officer Neil Bradley breaks down the recent Supreme Court tariff decision and what it could mean for your business.
Last week’s long-awaited Supreme Court tariff ruling, which struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), has significant ramifications for the U.S. economy and small businesses, in particular.
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What Small Businesses Need to Know After Supreme Court's Ruling
The U.S. Supreme Court’s tariff decision has opened the door for many U.S. small businesses to seek refunds.
Helping your small business members determine whether their business qualifies—and understanding what steps to take next—can be challenging.
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What the Recent SCOTUS Decision on Tariffs Means for Small Business
Following the SCOTUS tariff ruling, NSBA continues to advocate for common sense, small-business policies providing clarity and stability, and we are closely monitoring developments to ensure small-business voices remain front and center as the effects from the decision evolve.
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Arizona's Sen. Gallego introduces bill aiming to speed up nuclear energy construction
Arizona Democratic Sen. Ruben Gallego has introduced a bill that looks to make it easier to develop nuclear power plants.
It’s one of the latest moves signaling that nuclear energy has gotten a new look in recent years.
The goal of Gallego’s bill is to encourage developing new nuclear plants by reducing the risk of projects going over budget and taking too long to build.
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Advanced nuclear reactors can recycle spent nuclear fuel
One of the concerns around nuclear energy is waste. Conventional reactors extract only a portion of the energy in their fuel, leaving behind radioactive material that can last for thousands of years. Because this spent fuel cannot be reused without additional processing, it continues to accumulate.
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After the State of the Union: What Business Needs Next
With the President’s State of the Union address now delivered, the U.S. Chamber is reinforcing a clear benchmark: sustained 3% economic growth driven by free enterprise, competitive taxes, and smart, predictable regulation.
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A Grand Slam for Arizona’s Economy
Over the six-week Cactus League season, spring training will bring an estimated 1.8 million spectators to Arizona and generate up to $1 billion in gross economic output statewide, according to a new CSI report.
READ THE REPORT
Arizona Budgets and Local Surpluses
Rapid revenue growth over the past several years fueled major budget expansion at both the state and local level. Cities and towns saw billions in additional revenues and growing cash reserves, yet many are now pursuing local tax increases as spending growth catches up to revenue growth.
READ THE REPORT
Electricity demand spurs states to find a way to meet the moment
Key Points:
- States are seeking to meet surging electricity demand driven by data centers
- Policy solutions include boosting solar projects and streamlining energy project permitting
- States are also considering nuclear power as a long-term solution
States are casting a wide net in their efforts to meet a surging electricity demand being driven by the burgeoning data center infrastructure necessary for artificial intelligence.
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Proposals would ban cities from raising utility taxes for 4 years
Key Points:
- GOP bill would pause the ability for cities and towns to raise taxes or utility fees until June 30, 2030
- The measure could go to voters on the November ballot
- If passed, bill would allow increases with a 60% marginal approval in a local election
House Republicans are trying to enact a statewide four-year moratorium on tax rate increases at the municipal and county levels.
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The Arizona Commerce Authority offers a wide range of programming to support small businesses around the state, including the Small Business Checklist – a free, interactive tool to help guide business owners to launch, operate and scale. Below are tips, funding opportunities and events taking place this month to help take your business to the next level.
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