The Arizona Department of Water Resources (ADWR) exceeded its authority under state law, the Maricopa County Superior Court ruled Monday.
The court determined in an under advisement ruling in this ongoing case that, again, ADWR lacked authority under state law to impose a new obligation on home developers to secure additional water supply.
The Home Builders Association of Central Arizona and Arizona Senate President Warren Petersen (R-LD14) have challenged this and other ADWR policies initiated at the behest of Gov. Katie Hobbs.
Maricopa County Superior Court Judge Scott Blaney said this additional requirement by ADWR went beyond what state law required. Per Blaney, the law only requires developers to show 100 years of continuous availability of water sufficient to satisfy water needs for the use proposed by the developer.
State law limited ADWR to two pathways: either developers could obtain a certificate of assured water supply from ADWR or they could obtain a commitment of service from a municipal provider such as a city, town, or private company with an ADWR assurance of water supply designation.
However, under a new rule pushed by the Hobbs administration, R12-15-710(H), ADWR limited developers to a third, new pathway for assured water supply designation. This pathway involved a newly created category of water availability ADWR called “New Alternative Water Supplies,” and required developers to secure an additional 25% of this new category beyond their proposed usage needs.
The ADWR changes under Hobbs resulted in what effectively became a housing moratorium. New building progress in the Valley ground to a halt.
Blaney ruled ADWR lacked the authority to create this third, new pathway. He declared that the plain language of the statute only requires a 100-year guarantee of water needs satisfaction.
“The Legislature created two paths to establish an assured water supply to develop a subdivision: obtain a certificate; or obtain a designation,” said Blaney. “Through the implementation of its moratorium and its nearly simultaneous promulgation of a rule that demands more water than the statute requires, ADWR has in effect attempted to rewrite the governing statute at the agency level.”
Blaney also rejected ADWR’s argument that this third pathway was a voluntary, alternative path out of several for developers. He sided with the developer’s assessment that ADWR had unlawfully restricted developers to a single pathway.
The court ruling on Monday blocked ADWR from enforcing the rule.
In April, the Maricopa County Superior Court struck down ADWR’s housing moratorium articulated in several rules pertaining to unmet water demand and depth-to-water limits.
Similar to this most recent ruling, Blaney found that ADWR sought to break necessary limitations on administrative agency powers and had unlawfully implemented two agency rules without following the Administrative Procedures Act.
AZ Free Newsreported last month that the ADWR-spurred housing moratorium may put taxpayers on the hook for more than $1 billion, due to ongoing and potential future builder compensation claims.
ADWR plans to appeal pending the final ruling.
When Hobbs took office, she formed a Water Policy Council to overhaul the state’s approach to groundwater management. Two committees were formed, one of which addressed assured water supply.
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Arizona Republican House and Senate leaders announced a compromise budget agreement with Democratic Governor Katie Hobbs on Tuesday and introduced a series of budget bills for consideration in both chambers.
According to a press release by the GOP Senate Caucus, the budget, totaling $18.29 billion, is designed to deliver approximately $1.45 billion in tax relief to Arizonans over a four-year period and to limit state spending growth to 3.05%. The agreed-upon budget also “rejects or modifies more than $3 billion in proposed executive tax increases, fees, and spending expansions over the next three years.”
The legislative GOP leadership and Gov. Hobbs have been embroiled in tense on-again-off-again negotiations since January, with Hobbs announcing a full moratorium on signing legislation, vetoing nearly all bills sent to her desk from April 13 until May 14, including a proposed Republican budget containing over $1 billion in tax relief.
🚨FOR IMMEDIATE RELEASE: Arizona Becomes Only State in the Nation to Deliver Historic Trump Tax Cuts As Part of Bipartisan FY 2027 Budget Agreement
“Arizona is leading the nation once again,” Senate President Warren Petersen (R-LD14) said in a statement. “For years, Arizona has built a reputation as one of the best places in America to live, work, raise a family, and start a business. This budget strengthens that foundation. Families are facing higher costs for groceries, childcare, housing, and everyday necessities, and we wanted to provide real relief. By adopting President Trump’s tax cuts at the state level, expanding tax relief for families, and protecting educational freedom, we’re helping Arizonans keep more of their hard-earned money while ensuring our state remains economically competitive.”
Looks like we have a deal on the budget. Arizona will be the first state in the nation to deliver the full Trump tax cuts! Proud of my colleagues in the House and Senate. Expecting to vote it out on Thursday. And this time, it will get signed.
The budget reportedly incorporates full conformity with the tax cuts of the One, Big, Beautiful Bill Act passed in 2025, which included several of President Trump’s major federal tax provisions, including:
No tax on tips, no tax on overtime,
An increased standard deduction,
A new childcare deduction,
An enhanced child tax credit,
Expanded charitable giving deductions,
Property tax relief for disabled veterans.
In a statement to AZ Free News, Arizona House Speaker Steve Montenegro (R-LD29) said, “Republicans came into this session focused on affordability, responsible spending, public safety, school choice, and protecting taxpayers from new taxes and fees. This agreement reflects those priorities and shows what can be achieved through serious negotiations in divided government. The process still needs to play out, but this is a responsible budget agreement that moves Arizona in the right direction and puts families and taxpayers first.”
According to the Senate GOP Caucus, the budget agreement will also address the ongoing controversy of data center development in the state through the imposition of “a three-year moratorium on the issuance of new certificates for the data center sales tax exemption while explicitly allowing construction of new data centers to continue.”
In addition to implementing the $1.45 billion in tax relief, the budget will also include:
$112 million for corrections operations,
A 4% correctional officer stipend,
$23 million for victims of crime assistance,
$58 million for child safety operations, including foster care coaching and guardian contract costs,
$25.5 million for county support programs, probation services, coordinated reentry efforts, and sheriff assistance,
$10 million for wildfire suppression efforts,
$4.3 million for rural hospitals.
Reforms packaged with the FY2027 budget also include eligibility verification requirements for Medicaid and SNAP benefits, and protections for the Empowerment Scholarship Account program.
Governor Hobbs praised the bipartisan agreement, saying, “This bipartisan, balanced budget agreement will put Arizona first and deliver opportunity, security and freedom to communities throughout the state. With this agreement, we are delivering a $1.4 billion tax cut for working-class families, investing in job creation, education and water security while tightening our belts, and securing a moratorium on the data center tax exemption so we can develop a responsible path forward that protects our water future and lowers utility bills for Arizona families.”
She added, “This bipartisan compromise shows what we can do when we put common sense before political games and focus on delivering real results for our communities. It will put money back in the pockets of Arizona families and lower costs, make our communities safer, and protect the vital services that Arizonans rely on. In the coming days, I look forward to working with legislators in both parties to pass this bipartisan budget agreement that will make Arizona stronger, safer, and more prosperous.”
House and Senate versions of the budget bills will be considered during a Joint Senate & House Appropriations Committee hearing Wednesday, with final votes set for Thursday.
For generations, Arizona’s wide-open land has supported ranchers, farmers and the communities that helped build our great state.
Then, the climate activists came along.
Armed with nothing more than junk science from climate “experts” like Al Gore and Alexandria Ocasio-Cortez, they got busy imposing costly green energy mandates on states across the country—and Arizona’s political and corporate elites eagerly fell in line. Our state’s utilities committed themselves to achieving “Net Zero” emissions by 2050, a goal that will cost ratepayers billions of dollars while doing little to meaningfully impact the environment.
But higher utility bills are only part of the cost.
Not wanting to disappoint some of her largest campaign contributors, Arizona Governor Katie Hobbs has been quick to bend the knee to the Green New Scam time and time again. Now, these decisions are not only hitting families in the wallet, but they are transforming our state’s beautiful countryside into an industrial playground for massive, foreign-backed solar and wind developments.
Under Hobbs, the Arizona State Land Department has increasingly operated like a business partner for the solar industry instead of a steward of Arizona’s public lands. The agency now maintains detailed maps identifying the “best” locations for solar development across the state, effectively helping direct industrial solar companies toward Arizona’s most desirable land.
But surely, they must be doing the same for other industries?
The group seeking to end Arizona’s universal school choice program declared that it doesn’t have to disclose the percentage of out-of-state funds.
A complaint filed in April alleged the Protect Education, Accountability Now Committee (PEANC) falsely advertised that only 9% of contributions came from out of state.
PEANC’s ballot initiative, the Protect Education Act, would impose an income cap limiting enrollment in Arizona’s school choice program, Empowerment Scholarship Accounts, and eliminate funding rollover.
PEANC claimed in a response submitted on Friday and obtained by AZ Free News that Arizona law only requires the percentage of out-of-state contributors, not out-of-state contributions.
The section of Arizona law at issue (A.R.S. § 16-925) states the following:
“In addition to the disclosure required by subsection A of this section, a political action committee that makes an expenditure for an advertisement shall include a disclosure stating: […] The aggregate percentage of out-of-state contributors as calculated at the time the advertisement was produced for publication, display, delivery or broadcast. The disclosure shall state ‘paid for by _____’ as prescribed by subsection A of this section, followed by ‘with _____% from out-of-state contributors’ with the blank to be filled by the aggregate percentage prescribed by this paragraph.”
Counsel for PEANC argued in its response letter that, while nearly $4.5 million of its $4.6 million in net contributions did come from Washington, D.C. labor organizations, only 9% of all contributors to PEANC were from out of state.
“This text requires disclosure of the aggregate percentage of out-of-state contributors — i.e., based on contributor counts — not dollar amounts or ‘aggregate funding,’ and that percentage is calculated ‘at the time the advertisement was produced,’” stated PEANC’s counsel, Barton Mendez Soto. “The word ‘contributors’ refers to the people or entities making contributions, not the dollar amounts of their contributions.”
PEANC’s counsel said their interpretation accurately reflected what they dubbed the “contributors-percentage metric” represented by the statute.
The complainant, Jack Pannell, filed his complaint with the secretary of state after he observed a disclaimer on the bottom of PEANC’s website claiming that out-of-state contributors accounted only for 9% of total funding.
An archived version of the site captured in early February reflected an out-of-state contributions disclosure that totaled 50%.
Major Arizona-native donors to the PEANC came nowhere near the millions posted to PEANC’s finance reports; these donors include Arizonans For Quality Education (AFQE), $50,000; Nita and Phil Francis, $25,000; and the Arizona Education Association, $10,000.
Approximately 99% of AFQE’s funding has been tied to “shadow sponsors,” meaning unnamed corporations and LLCs. The remaining funds, less than half of a percent, came from an individual named Christopher “Chris” Kotterman on behalf of the Friends of ASBA, an affiliate of the Arizona School Boards Association.
Kotterman has served as Gov. Katie Hobbs’ senior policy advisor since late 2024.
The Protect Education Act would need about 256,000 signatures to make the ballot. The petition-filing deadline is July 2.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Senate Republicans have advanced legislation aimed at strengthening private property rights and streamlining the removal of unlawful occupants from homes and residential properties.
Senate Bill 1426, sponsored by Senator Wendy Rogers (R-LD7), passed the legislature on May 26, 2026, and is now headed to the Governor’s desk.
The legislation strengthens Arizona’s forcible entry and detainer statutes by creating a clearer, faster process for property owners to reclaim their homes from squatters. SB 1426 defines specific conditions under which a person is considered an unauthorized occupant — including individuals who are not current or former tenants, immediate family members, or parties to any verbal or written agreements to occupy the property. It also established criteria for situations involving forcible entry into residential homes not open to the public.
Key provisions of the bill include:
Allowing courts to issue a writ of restitution immediately upon judgement in qualifying cases involving unauthorized occupants.
Directing the Arizona Supreme Court to adopt rules for the expeditious resolution of these claims.
Preserving all existing protections and remedies under the Arizona’s Residential Landlord and Tenant Act.
“Private property rights are not a suggestion; they are a cornerstone of our freedoms,” stated Senator Rogers. “If someone breaks into your home, moves into your property, and refuses to leave, the law should stand with the homeowner, not the unlawful occupant. That’s just common sense.”
Hats off to ALL the law enforcement, constables, sheriffs and our astute Senate legal policy advisor Brooke Huppenthal who got this DONE… protecting Arizonans! A wonderfully collaborative effort. 🔥 https://t.co/PGfb34MacE
Rogers emphasized that the bill resulted from extensive collaboration with stakeholders, lawmakers, and law enforcement. “This bill has been years in the making,” added Rogers. “The overwhelming support we’ve received, including from members of law enforcement who deal with these situations firsthand, shows just how badly these reforms are needed. Arizonans shouldn’t have to spend months fighting to reclaim property they already own. SB 1426 cuts through the red tape, closes loopholes that have been exploited for too long, and puts homeowners back where they belong—in control of their property. I’m proud to see this legislation finally reach the governor’s desk and hopeful she will sign it into law so Arizona families can receive the protections they deserve.”
The bill amends Arizona Revised Statutes sections 12-1171 and 12-1173. Among other updates, it expands the definition of forcible detainer to include unauthorized persons who refuse to leave a residential property after reasonable request from the owner or authorized agent, provided multiple safeguards are met.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
