Our 7th year, week 1
Typically, the first week of the legislative session is consumed with lots of pomp and ceremony, but very little in the way of substantive activity. That was not the case this week. Two major events happened that will have a substantial effect on Arizonans, especially in their wallets.
First, there was Hobbs’ veto of Senate Bill SB1106.
This is the bill that would have conformed the Arizona tax code to the federal tax code as modified by the One Beautiful Bill. These conformity bills are not anything new. States, including Arizona, routinely do this. Failure to do it would create a lot of havoc and uncertainty among tax payers. It would force individuals and businesses to keep two sets of books, one to meet the requirements of the federal code, and another to do the same for the state code. It is rare for governors to veto conformity bills and inflict such financial pain and suffering on the public, especially by governors that are seeking reelection, but that is exactly what our governor did.
In a news release, House Speaker Steve Montenegro had this to say:
“Yesterday, the Arizona House came together with the Senate to lower costs and improve affordability through tax relief for Arizonans. Governor Hobbs’ veto of our tax relief act is a failure of leadership that will create unnecessary confusion and disruption for millions of Arizona taxpayers.”
The full text of his remarks may be read HERE
The second major event of the week was Hobbs’ release, on Friday, of her proposed budget.
This budget proposal was not well received by Republican leaders in both the House and Senate. Their disappointment was illustrated by Speaker Montenegro’s remarks:
“Governor Hobbs’ budget is a fantasy built on fake revenues and hidden tax hikes. She can call them ‘revenue enhancements,’ but Arizona families will feel them as higher costs and higher taxes. This is a liberal, California-style budget that grows government, creates tax chaos, and gambles with taxpayer dollars. House Republicans will reject it and fight for a responsible, balanced budget that puts Arizona families first.”
Click HERE to read more responses to the governor’s budget proposal.
The governor released her budget proposal on Friday, but the official presentation will not happen until Tuesday, January 20, at 10:00 AM. As usual, the presentation will be made to a joint session of both the House and the Senate appropriation committees. Full details at https://www.azleg.gov/agendas/0120012139130.pdf
Even though most of the activity at the capitol revolved around the two previously mentioned events, there was still some time left for more conventional activity. This is the result of committee hearings involving bills that we are tracking:
| BILL # and SHORT TITLE | WHERE | DATE | RESULT |
| HB2142 – ADE; school safety; center; programs | House Education | 01/13/2026 | PASS |
| HB2131 – trafficking weapons or explosives | House Judiciary | 01/14/2026 | PASS |
| SB1006 – campaign finance; aggregate report; amount | Senate Judiciary and Elections | 01/14/2026 | PASS |
| SB1037 – voting; equipment; internet; custody; violation | Senate Judiciary and Elections | 01/14/2026 | PASS |
| SB1040 – voter registration rolls; internet access | Senate Judiciary and Elections | 01/14/2026 | PASS |
| SB1068 – disruption; educational institution; concealed weapon | Senate Judiciary and Elections | 01/14/2026 | PASS |
| SB1069 – prohibited weapons; muffling device; repeal | Senate Judiciary and Elections | 01/14/2026 | PASS |
| 1106 – internal revenue code; conformity; deductions | Senate Finance | 01/14/2026 | PASS |
| 2153 – internal revenue code; conformity; deductions | House Ways and Means | 01/14/2026 | PASS |
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