by Ethan Faverino | Feb 17, 2026 | News
By Ethan Faverino |
The Arizona House of Natural Resources, Energy, and Water Committee held a special hearing on last week to examine the Arizona State Land Department (ASLD) and advance legislation aimed at its continuation, improved administration, and the siting of utility-scale wind and solar energy projects near residential communities.
In a sweeping action, lawmakers advanced all 16 bills on the agenda, demonstrating strong, unified momentum to reform persistent operational and cultural problems within the department.
HB 2426, which mandates the development and adoption of a required five-year disposition plan for state trust lands, was adopted as an amendment to HB 2150, the primary continuation bill for the ASLD.
Sponsored by Rep. Gail Griffin (R-LD19), HB 2150 repeals the department’s prior sunset date and continues its operation until July 1, 2030, with the repeal of related statutes effective January 1, 2031. The measure requires a two-year hearing, quarterly updates to the Legislature, and compliance with existing statutes mandating a five-year disposition plan under ARS § 37-331.03.
“The State Land Department is not a constitutional agency. The Legislature created the Department, and the Legislature can set guardrails to ensure the highest and best use of land,” stated Chairman Gail Griffin in a press release addressing the issues at the ASLD. “For years, the Department has failed to keep land and housing development moving with consistent long-term disposition planning and predictable decisions. That means less trust revenue for classrooms and fewer lots available for homes.”
ASLD manages approximately 9.2 million acres of state trust land, with a statutory mandate to prioritize the highest and best use to generate maximum revenue for 13 trust beneficiaries, primarily K-12 public schools.
However, recent audits—including the 2025 performance audit and sunset review by the Auditor General—along with multiple legislative hearings and recommendations from the Joint Committee of Reference, have highlighted persistent problems.
These include a lack of consistent long-term planning, unresolved pending applications without final decisions, unwritten regulatory processes and procedures, lost revenue opportunities, due-process concerns, and unnecessary strain on Arizona’s housing supply amid land scarcity and rising costs.
Effective management of state trust lands directly impacts housing affordability and education funding. The Department could immediately alleviate pressures by accelerating sales and leases of suitable parcels, increasing available land for residential development, and generating sustained revenue for schools without new taxes.
Yet reports indicate practices such as withholding land from public auction and canceling leases without replacement tenants, while the Hobbs administration is actively devaluing urban-adjacent land to favor utility-scale solar development near residential areas.
“This is not complicated,” added Griffin. “Arizona’s high-tech economy requires new affordable rooftops for workers, and Arizona’s schools depend on trust returns from the sale of available trust parcels. The Department can improve housing supply and education funding today by selling more land and ending the internal practices that keep projects stalled.”
The sunset review process provides the Legislature with significant leverage to enforce accountability and measurable change. During the hearing, committee members questioned the Governor’s appointed Land Commissioner on fundamental Department functions, processes, and documentation. Responses were often inadequate or nonexistent—raising concerns about leadership after three years in that role.
Senate Natural Resources Committee Vice Chairman Tim Dunn (R-LD25) echoed the call for reform. “The current administration didn’t create these problems, but it certainly inherited them. Now the burden is on the current commissioner to change the culture and redirect the agency in the right direction. The agency needs oversight, but the Department has an opportunity to make a meaningful difference for the state. A positive change could bring in millions of dollars of additional revenue for the trust.”
“Arizona House and Senate Republicans are unified in our understanding of the issues and of the breadth of changes that are needed,” added Senator Dunn. “Based on the clear recommendation of the Joint Committee of Reference, I think it’s safe to say that the Department will not be receiving a clean continuation, and that any continuation the Department receives will be contingent on significant improvements codified in law.”
HB 2426 requires the State Land Commissioner, within two years of the act’s effective date, to complete the five-year disposition plan, adopt written policies for updating it every five years, establish procedures for using the plan to guide public auctions, and submit copies to legislative leadership.
The bill’s legislative findings highlight years of inaction, noting the department’s failure since 2016 to produce the required plans and the fact that all five positions on the advisory Urban Land Planning Oversight Committee have remained vacant since 2018.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 15, 2026 | News
By Ethan Faverino |
Governor Katie Hobbs has vetoed a Republican bill, HB 2785, which would have brought Arizona’s income tax law into full conformity with the federal Internal Revenue Code as reflected in the tax forms already issued by Hobbs’ Department of Revenue for the 2025 tax year.
The legislation, passed on February 11, 2026, aimed to protect Arizona taxpayers from uncertainty, the need for amended returns, potential penalties, and mid-season rule changes during the ongoing filing season.
By aligning state statute with the guidance taxpayers are currently following, HB 2785 would have prevented widespread disruption and costly refiles for Arizonans.
The action comes after Governor Hobbs vetoed an earlier Republican tax conformity package that included targeted relief measures—such as no tax on tips or overtime, deductions for seniors, and replacements for the federal SALT deduction with expanded child tax credits and childcare expense deductions.
Following the first veto, the Governor’s administration issued tax forms assuming full federal conformity (including provisions like deductions for qualified tips, overtime pay, certain vehicle loan interest, and additional charitable contributions for standard deduction filers), while repeatedly declining to clarify her position or support changes.
Department of Revenue testimony highlighted the risks of reversing course now, potentially forcing up to one-third of filers to submit paper-only amended returns, incur additional filing costs, and face unexpected tax liabilities months later.
In a press release, House Speaker Steve Montenegro stated, “Arizona taxpayers did exactly what the government told them to do, and the Governor left them exposed. Her Department of Revenue issued tax forms, told people not to delay filing, and testified that changing course would cause massive disruption. Then the Governor vetoed the Legislature’s solution and refused to explain what comes next.”
“That is the opposite of leadership,” added Montenegro. “The House and Senate acted because families, seniors, and small businesses should not be forced to pay penalties, refile returns, or owe unexpected taxes because the executive branch could not get its act together.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 14, 2026 | Economy, News
By Ethan Faverino |
The latest survey from the National Federation of Independent Business (NFIB) reveals that small business optimism in the U.S. dipped slightly at the start of 2026. The Small Business Optimism Index declined by just 0.2 points in January to 99.3, yet it remains above the 52-year average of 98.
Among the index’s 10 key components, 7 declined, while only 3 improved. The positive standout shift came in expectations for real sales volumes, which jumped by 6 points, with a net 16% of owners now anticipating stronger sales in the coming quarter.
However, uncertainty notably climbed, as the Uncertainty Index increased by 7 points to 91. Much of this rise stemmed from more owners expressing doubt about whether the current environment favors business expansion.
“While GDP is rising, small businesses are still waiting for noticeable economic growth,” stated NFIB Chief Economist Bill Dunkelberg. “Despite this, more owners are reporting better business health and anticipating higher sales.”
In Arizona and similar regions, a cautious mood persists, with many business owners hesitant to pursue expansion. NFIB Arizona State Director Chad Heinrich noted that ongoing tax-related uncertainties are adding to these concerns, while NFIB data shows taxes are the leading problem for 18% of business owners.
“The optimism index remains stable, but small business owners remain cautious about the future and whether it’s a good time to expand their operations,” explained Heinrich. “The limbo Main Street Arizonans find themselves in this tax season only exacerbates their uncertainty. Small business owners need tax conformity from policymakers now.”
A new addition to this month’s report, the Small Business Employment Index, registered 101.6 in January—down nearly a point from December but still 1.5 points above its historical average of 100 and marginally higher than the 2025 average. This suggests the labor market for small businesses remains relatively balanced.
According to the NFIB Monthly Jobs Report, overall business conditions showed improvement in owners’ self-assessments, with 14% now rating their operations as excellent (up 5 points) and fewer classifying them as only fair (down 7 points to 27%).
Investment activity picked up as 60% of owners reported capital expenditures over the past six months—the highest share since late 2023—mostly directed toward new equipment.
On the labor front, challenges eased somewhat, with businesses citing labor quality as their top issue; the share fell for the third straight month to 16%, and unfilled job openings dropped to 31% (still above the long-run norm).
Inflationary pressures linger, however, as 26% of owners reported raising prices in January, and 32% plan increases in the next few months.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 12, 2026 | News
By Ethan Faverino |
State Representative Teresa Martinez (R-LD16) recognized Pinal County Sheriff’s Office (PCSO) Deputies Gregory Sanders and Jacob Montoya on the floor of the Arizona House for their courageous actions in rescuing an 8-year-old boy from a suspected human trafficking and smuggling operation in January.
In a formal legislative proclamation read before members of the House, Rep. Martinez honored the deputies for their quick thinking, professionalism, and unwavering commitment during a multi-agency traffic stop that led to the child’s safe recovery and the arrest of a suspect.
“These deputies trusted their training, asked the right questions, and refused to ignore what didn’t add up,” stated Martinez. “Because of their professionalism and courage, a child was removed from danger and protected. This is the kind of work Pinal County deputies do every day to keep our communities safe.”
According to PCSO, the incident began on January 7, when a multi-agency task force, including officers from Cochise County and federal partners, conducted a traffic stop on a vehicle with Mexican license plates in Cochise County. The driver, a Mexican citizen, was transporting two young children: her biological daughter and an unrelated 8-year-old boy.
During a subsequent search of the vehicle for narcotics, federal partners flagged suspicions of child trafficking linked to cartel activity. The vehicle was temporarily seized, and the woman obtained a motel room in Eloy, Arizona. PCSO deputies were called to make contact.
Upon questioning, deputies observed inconsistencies in the woman’s story. The boy appeared coached in his responses and was unable to correctly identify the woman as his guardian. Deputies separated the child from the suspect, confirmed that he was unharmed, and learned the woman had provided a false name for the boy.
She ultimately admitted to being paid $500 to transport the 8-year-old across the border for unknown individuals, with no knowledge of his family or destination.
Body camera footage released by the Pinal County Sheriff’s Office captured the interaction, including the moment the suspect confessed to the payment and the boy’s visible relief and comfort once separated from her, allowing him to speak freely without coercion.
Cochise County deputies assisted in Eloy, and federal agents took custody of the boy to facilitate family reunification efforts. The suspect was placed in federal custody, facing potential charges, while the investigation continues to determine the full intentions of the traffickers.
Following the proclamation, Rep. Martinez praised the Pinal County Sheriff’s Office and all involved agencies for their collaborative efforts in combating human trafficking and protecting vulnerable children.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 8, 2026 | Economy, News
By Ethan Faverino |
Arizona House Republicans on the Natural Resources, Energy, and Water Committee have taken action to address skyrocketing gas prices and utility bills, passing a sweeping package of bills designed to lower fuel costs, enhance energy reliability, and defend ratepayers.
Under the leadership of Chairman Gail Griffin (R-LD19), the measures align with the House Republican Majority Plan’s core priorities of unleashing economic prosperity, promoting government efficiency, and protecting individual rights and liberties.
The legislation, which advanced on a party-line vote with Democrats in opposition, targets the challenges faced by Arizona families, particularly in Maricopa and Pinal Counties, where severe summer fuel blend requirements have driven up prices at the pump. By prioritizing affordability and reliable power, these bills aim to ease the financial burden on households amid rising energy demand.
“The cost of living for Arizona families, including gas and electricity, continues to increase, and Republicans are acting,” stated Chairman Griffin. “This package puts affordability first by lowering fuel costs, protecting ratepayers from higher utility bills, and making sure Arizona has dependable power as demand grows. The Majority Plan is clear: government should work to ease the cost burden on families, not make them worse.”
Bills Tackling High Gas Prices
- HB 2145 (Rep. Griffin): Amends motor fuel statutes to empower the President of the Senate and Speaker of the House to jointly request EPA fuel waivers during shortages if the Governor does not act, providing a defense against price surges.
- HB 2400 (Reps. Willoughby, R-LD13, and Biasiucci, R-LD30): Implements a seasonal suspension of the state’s 18-cent gas tax from May through September in Maricopa and Pinal Counties. The bill ensures local governments are reimbursed for lost highway revenue through allocations from the Arizona Highway User Revenue Fund, including $27.588 million to counties, $39.93 million to cities and towns, and $5.082 million to larger municipalities. It also includes an emergency clause for immediate implementation and exempts the Department of Transportation from rulemaking for one year.
- HB 2696 (Rep. Willoughby): Directs the Arizona Commerce Authority to prioritize reducing fuel and gas prices as its primary objective for two years, expiring December 31, 2029. The authority must collaborate with the oil and gas industry to study repealing the cleaner-burning gasoline blend, building new pipelines, establishing a strategic reserve, and exploring in-state refineries, including reviving a proposed facility in Yuma County. Status updates will be provided to legislative committees, with a final report due by October 1, 2026.
- HB 2955 (Rep. Willoughby): Amends motor fuel standards to end the expensive summer fuel blend in populous counties, subject to EPA waiver under the Clean Air Act. It allows for gasoline compliant with ASTM D4814 and vapor pressure limits, addressing supply shortages and enabling lower-cost alternatives.
- HCM 2008 (Rep. Willoughby): A concurrent memorial urging Congress and the EPA to eliminate the federal gas tax on Arizona’s cleaner-burning gasoline in Maricopa and Pinal Counties from May to September or grant the EPA administrator emergency waiver authority for costlier blends. This recognizes Arizona’s progress toward National Ambient Air Quality Standards while highlighting the undue tax burden on specialized fuels.
Supporting these efforts are additional bills to promote long-term solutions:
- HB 2014 (Rep. Fink, R-LD27): Requires the Department of Environmental Quality (ADEQ) and Arizona Department of Agriculture to conduct air emissions modeling and feasibility studies on alternative gasoline blends, including federal reformulated, California phase 3, and conventional options. Reports must be published by September 30, 2027, with $100,000 appropriations each for modeling and studies.
- HB 2401 (Willoughby and Biasiucci): Mandates biennial reviews by ADEQ of fuel formulations available under federal standards, assessing air quality impacts in regulated areas, and submitting recommendations to the Department of Agriculture, the Governor, the President of the Senate, the Speaker of the House, and the Secretary of State by December 31 of each review year.
- HB 2428 (Griffin): Authorizes voluntary mobile emissions reduction credit programs, permitting emissions credits for nonroad engines under Clean Air Act guidelines, with permits issued by ADEQ for up to 20 years, supported by chambers of commerce, utilities, and Maricopa County.
“Today we heard from organizations with the time and resources to lobby against affordable prices for Arizona families, but not from the families paying more at the pump,” explained Majority Whip Julie Willoughby. “Working families cannot take time off to come to the Capitol and ask for relief; that is why we are here to help be their voices.”
“Eighteen cents a gallon may sound small to some, but it matters to families trying to make ends meet,” Willoughby added. “I will do everything in my power to deliver relief now while we continue working to fix the fuel blend and supply problems. Families need lower prices, not excuses.”
Bills Ensuring Energy Reliability and Ratepayer Protections
- HB 2331 (Reps. Marshall, R-LD7 and Heap, R-LD10): Renames and expands energy reliability statutes to require public power entities and service corporations to prioritize domestically produced fuels, minimize foreign reliance, and evaluate resources for affordability, reliability, and cleanliness. Defines “clean energy” to include low-emission sources like nuclear and natural gas, with reliable sources needing at least 50% capacity factor and rapid ramp-up capabilities. The bill emphasizes hydrocarbons and finds domestic sourcing essential for public health and safety.
- HB 2756 (Reps. Griffin and Blackman, R-LD7): Adds provisions for public power entities and electric corporations to report quarterly on new extra-high load factor customers, including interconnection requests and completions. These customers must be factored into load growth projections. The Arizona Corporation Commission (ACC) is directed to adopt rules on contracts, minimum billing, and pre-execution reviews to protect other ratepayers, excluding member-owned cooperatives. Requires cost-of-service studies within 180 days and an ACC workshop within 90 days to assess impacts on residential bills and potential new customer classes.
These bills now advance for further legislative consideration.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
