Transcript Highlights:

• Existing ESA account holders will be grandfathered in.
• ESAs, on the other hand, are half of that.
• This is about all of ESAs. Why is that important? We've seen extensive abuse of the ESA funding.
• She repeatedly asked them to meet with her to set up the ESA audit process, and the ESA administrators
• , this is not a measure about ESAs.

Keywords: 1182, all

Transcript Highlights:

• ESAs, on the other hand, are half of that.
• This is about all of ESAs. Why is that important? We've seen extensive abuse of the ESA funding.
• Senator Hoffman, does that include the ESAs, though, sir? Would that include the ESAs, though, sir?
• She repeatedly asked them to meet with her to set up the ESA audit process, and the ESA administrators
• , this is not a measure about ESAs.

Summary: The Senate met, opened with prayer and the pledge, and then handled a series of messages and floor actions. The chamber transmitted a large group of Senate bills to the governor and Senate Concurrent Memorial 1004 to the Secretary of State. It also received House requests to return Senate Bills 1175 and 1198 for reconsideration, which were granted without objection. The Senate then moved into Committee of the Whole to consider several House concurrent resolutions. On H.C.R. 2001, a constitutional referral on election requirements, senators debated a Judiciary Committee amendment and a Hoffman floor amendment that would require voter ID, allow election-day tabulation of early ballots at polling places, and require legislative funding for implementation. Supporters said the measure would improve election security, voter confidence, and speed up results; opponents argued it was vague, could undermine mail voting, and lacked clear implementation details. The amendment was adopted, and after further debate the Committee of the Whole gave H.C.R. 2001 a do-pass recommendation by a 15-12 vote. Later, on third reading, the full Senate passed H.C.R. 2001 by a 16-12 vote and transmitted it to the House. The chamber also considered H.C.R. 2003, a referral on student athletics and biological sex. Senator Ortiz offered a floor amendment to replace the blanket ban approach with rules based on athletic ability and inclusion; supporters said it would preserve fairness while avoiding discrimination, while opponents said it would gut the measure and weaken protections for girls’ sports. The Ortiz amendment failed 11-16, and H.C.R. 2003 then received a do-pass recommendation in Committee of the Whole and later passed third reading. H.C.R. 2044, a referral on prohibiting preferential treatment and discrimination, also received a do-pass recommendation without recorded controversy. The Senate then adjourned after completing the remaining procedural motions and votes.

Transcript Highlights:

• Practices, private school tuition vouchers, education savings accounts (ESAs), and associated budget
• Tax credit ESAs, similar to ESAs, cover a wider range of approved educational expenses, though they are
• ESAs, and eleven states have individual tax credits and deductions.
• There are three states with tax credit ESA programs.
• With respect to ESA programs, some data around what program funds are being used for.

Transcript Highlights:

• There was a time where ESA moms, you know, I'm a former ESA mom, where ESA parents were able to move
• money from the ESA to the 529.
• Does the Treasurer keep track of ESA rollover to 529s? Mr.
• moms you know I'm a former ESA mom where ESA parents were able to move money from the ESA to the 529
• Does the Treasury keep track of ESA roll over the two 529s? Mr.

Bills: HB2011, HB2089, HB2090, HB2092, HB2477, HB2785

Keywords: individual income tax, subtraction, Arizona Revised Statutes, retirement benefits, adoption costs, charitable contributions, health insurance, premium payment, Arizona State Retirement System, contingent annuitant, long-term disability, benefits limitations, disability compensation, social security, retirement system, elected officials, ASRS, eligibility waiver, age 65, education savings

Summary: The committee first heard House Bill 2785, a tax conformity measure that would update Arizona statutes to conform to the Internal Revenue Code as of January 1, 2026, including retroactive provisions for tax year 2025. The sponsor and supporters said the bill would align state law with tax forms already issued by the Department of Revenue, provide certainty to filers, and deliver about $440 million in tax relief through provisions such as no tax on tips and overtime, a larger standard deduction, and a $6,000 senior deduction. Opponents argued the bill would significantly reduce state revenue, disproportionately benefit higher-income taxpayers, and should be considered alongside a broader budget plan. After debate and an amendment addressing retroactivity and foreign dividends, the committee approved HB 2785 on a 5-4 vote. The committee then took up several Arizona State Retirement System and education savings bills. HB 2089 clarified the health insurance premium benefit subsidy for retirees and passed unanimously. HB 2090 changed the disability determination period for long-term disability benefits from 24 months within a five-year period to a straight 24-month period and passed 8-1. HB 2092 allowed employees over age 65 to waive ARS participation within 30 days of becoming eligible and also passed 8-1. HB 2477 conformed Arizona’s 529 education savings plan to federal law, including expanded uses and a permanent rollover to ABLE accounts and Roth IRAs; testimony supported the cleanup and simplification, but some members raised concerns about the Roth rollover and possible use of transferred ESA funds. HB 2477 passed 5-3 with one present vote, and the committee then adjourned.

Transcript Highlights:

• We are now up to 100,000 students on the ESA program.
• We are now up to 100,000 students on the ESA program.
• Who is going to be monitoring the ESA program?
• Who is going to be monitoring the ESA program?
• ...How we're going to oversee the ESA program?

Keywords: 1182, all

Summary: The House met with prayers, the Pledge of Allegiance, guest introductions, and a proclamation honoring Adrian Ace Stubbs Day. Members also recognized Doctor of the Day Dr. Victoria Tannenbaum and welcomed visitors for Lutheran Day at the Legislature, along with Judge Kaluli from Veterans Treatment Court. Attendance was recorded at 56 present, one absent, and three excused. The chamber then moved through communications, committee reports, and first readings before taking up a long third-reading calendar. The floor debate centered on a wide range of bills, especially water, education, elections, public utilities, labor, and criminal justice measures. Members discussed tax administration, groundwater and water-rights issues, superintendent contract transparency, mining reclamation, school employee disclosure, AI and digital privacy, sexual extortion, probation, veterans and military employment protections, adult protective services, salvage vehicles, real estate licensing, and several education-related appropriations for ESA administration. There were also resolutions and memorials on voting centers and precincts, student athletics, Route 66, and recognizing Judea and Samaria. Several members explained votes, with supporters emphasizing transparency, consumer protection, public safety, and administrative cleanup, while opponents raised concerns about privacy, cost, overreach, lack of accountability, and impacts on schools, elections, and local control. Most measures passed, often along party-line or near party-line votes, and several emergency measures were adopted with the required two-thirds vote. Notable votes included HB 2016, HB 2026, HB 2028, HB 2049, HB 2075, HB 2090, HB 2092, HB 2094, HB 2098, HB 2111, HB 2113, HB 2114, HB 2133, HB 2135, HB 2179, HB 2192, HB 2228, HB 2256, HB 2260, HB 2262, HB 2265, HB 2278, HB 2328, HB 2351, HB 2381, HB 2409, HB 2410, HB 2411, HB 2425, HB 2451, HB 2476, HB 2499, HB 2500, HB 2584, HB 2662, HB 2663, HB 2666, HB 2693, HB 2752, HB 2756, HB 2804, HB 2812, HB 2827, HB 2877, HB 2908, HB 2932, HB 2933, HB 2943, HB 2953, HB 2966, and HB 2985, along with HCM 2007 and HCRs 2003, 2016, and 2047 and HR 2002 and 2003. The House then moved into Committee of the Whole to begin consideration of HB 2174 and related amendments.

Transcript Highlights:

• in place, you'd prefer the ESA program?
• So my position is not that ESAs are better than this credit as they currently exist; it's that ESAs have
• in place, you'd prefer the ESA program.
• We do currently use ESA, and I think this is an interesting concept.
• We do currently use ESA, and I think this is an interesting concept.

Bills: HB2143, HB2273, HB2290, HB2373, HB2784, HB2794, HB4037

Keywords: public safety, retirement system, investments, trust fund, board of trustees, financial report, income tax rebate, Pinal County, taxpayer eligibility, state revenue, financial assistance, transaction privilege tax, business location, tangible personal property, shared vehicle, sourcing, income tax, veterans, donations, tax refunds

Summary: The House Ways and Means Committee first set aside House Bill 2794 at the sponsor’s request and then took up House Bill 2290, which would clarify Arizona transaction privilege tax sourcing rules for tangible personal property by specifying that an order is received at a seller’s business location and that server location does not control sourcing. The sponsor said the bill codifies existing, historic treatment and would provide certainty for taxpayers, while the League of Arizona Cities and Towns opposed it, arguing it would be a major departure from current practice, could shift revenue away from rural communities, and could create multiple tax rates for a single transaction. The Department of Revenue said it was neutral, acknowledged ongoing ambiguity and administrative complexity, and explained that a 2023 draft ruling had been based on a legal analysis but was never finalized. Several business and association witnesses supported the bill as necessary to prevent inconsistent audits and to preserve origin-based sourcing for in-state sellers. After extended debate, the committee passed HB 2290 on a 5-3 vote, with one member absent. The committee then heard House Bill 2373, which would add a space on the individual income tax return for taxpayers to voluntarily direct part of a refund to the Veterans Donations Fund or a veterans service organization fund. The sponsor and a representative of veterans advocacy groups described it as a simple, voluntary way to support veterans organizations and local projects. No opposition was raised, and the bill was approved unanimously by the members present, 8-0, with one absent. Finally, the committee considered House Bill 2143, a technical change to Public Safety Personnel Retirement System law that would limit the 5% ownership cap to publicly traded corporations. PSPRS representatives said the change would reduce compliance costs and avoid unnecessary workarounds while maintaining existing investment safeguards and diversification rules. Members discussed that ASRS does not have the same cap and that PSPRS already has broader limits on concentration risk. The bill was presented as an administrative cleanup measure, and discussion focused on clarifying that it would not increase investment risk.

Transcript Highlights:

• And then the other thing that I would note is the distinction here that someone who opts into the ESA
• When you make that decision to go to the ESA program, if you want to take classes, you have to enter
• It just would not be for the ESA families that...
• When you make that decision to go to the ESA program, if you want to take classes, you have to enter
• It just would not be for the ESA families that... Okay.

Bills: SF0014, SF0018

Keywords: literacy, education, reading assessment, intervention program, public school funding, department of education, K-12 education, part-time attendance, public schools, student enrollment, education funding, 916, all

Transcript Highlights:

• I think they're just ESAs, but anyway. What happens to existing public school?
• Okay, so you give no credit to the ESA program they implemented?
• We have a much smaller percentage going to ESAs and private schools.
• Our governor, Katie Hobbs, is an opponent of the ESA program.
• Vouchers or ESAs will... hurt our students.

Bills: HB3, HB3

Keywords: education savings account, educational expenses, certified educational assistance organization, school choice, funding, special education, tuition reimbursement, emergency communication, public safety, interoperability, Texas Interoperability Council, grant program, emergency communications, public safety radio, first responders, radio system, dispatch, 911, emergency management, Texas Division of Emergency Management

Transcript Highlights:

• If they feel the schools are failing them, in my head, ESAs popped up.
• This includes the Arizona ESA program.
• The Air Force sent us here to Arizona because Arizona had the ESA program, and at the time the ESA program
• I started in the legislature in 2022 when the ESA program passed.
• Sixty-five percent of Arizona voters rejected ESAs in 2018. You know what?

Summary: The House convened, completed roll call, approved the journal, and took up several Senate bills and one Senate concurrent resolution through motions to reconsider, return bills for reconsideration, and refer measures to additional Committee of the Whole sessions for further amendment. Early actions included returning SB 1175 and SB 1198 to the Senate for reconsideration, rescinding passage of SB 1336 so it could be reconsidered, and referring SB 1111 and SB 152 to an additional COW. The House also recognized Representative Travers for a personal privilege statement honoring National Women Veterans Recognition Day and recorded attendance. In Committee of the Whole, members adopted floor amendments and recommended passage for SB 1511, SB 1552, SB 1198, SB 1110, SB 1618, SB 1431, and SCR 1004, with some debate on SB 1110’s home-confinement/reentry program, SB 1618’s Military Affairs Commission changes, and SB 1431’s city and town authority over residential project standards and streetscapes. The House later adopted the COW reports and moved the measures to engrossing or third reading as appropriate. SB 1336 and SB 1519 were also advanced from committee, while SB 1004 was reconsidered and ultimately failed on reconsideration. On third or final reading, the House passed SB 1127, SB 1180, SB 1428, SB 1198, SB 1336, SB 1511, SCR 1004, SB 1552, HB 2104, HB 2105, HB 2114, HB 2311, HB 2729, and HB 4117. SB 1687, SB 1004, SB 1519, and SB 1502 failed. Members explained votes on several measures, including support for tax administration clarity in SB 1180, objections and support for the May primary proposal in SB 1687, concerns about sex offender monitoring in SB 1004, support for the Arizona Beef Council in SB 1198, and debate over the photo enforcement referral in SCR 1004. The session also included recesses for caucuses, lunch, and dinner, plus a brief technical outage of the live stream.

Transcript Highlights:

• industry expertise from an ESA perspective to really make this happen in that, even within that 12 to
• It's going to provide that ESA expertise and help us actually write the program in a way that's going
• But we're not ESA experts, so we're not going to pretend to be either.
• There are things that we don't know because we're not ESA experts by any means.
• I mean, what do these breakdowns cost of what the ESA kid would receive for each one of these levels?

Bills: HB1329

Keywords: government spending database, public expenditure transparency, open data, government transparency, school district spending, state spending, local government finance, education finance, budget database, expenditure reporting, salary transparency, benefits data, public records, Legislative Management study, North Dakota, school board training, superintendent, principal, business manager, higher education spending

Summary: The Education Division met with all members present and first took up House Bill 1329, which would create a transparency database and website for school spending information. Senator Schaible offered Amendment 0204 to turn the bill into a study, citing concerns that the proposal would impose major data-collection burdens on 168 school districts, require new data standards and privacy protections, and likely cost far more than the $500,000 in the bill. Several members supported transparency but agreed the implementation costs and technical feasibility were unclear. The committee adopted the amendment 4-1, then passed HB 1329 as amended on a 5-0 vote, with Senator Shively to carry the bill. The committee then discussed House Bill 1540, the education savings account/voucher bill. Representatives from the Bank of North Dakota and the Department of Public Instruction explained that they had not been consulted on the original drafting and outlined needed administrative changes, including clarifying the Bank as administrator, using a third-party program manager, involving DPI in rulemaking, adding audit and appeal procedures, and adjusting language on eligible purchases and school disqualification. They also said the current timeline was likely too aggressive to launch by the 2026-27 school year and estimated the program would require about 15 months to implement, with a fiscal note now around $5.1 million. Members also discussed policy-related amendments on means testing and application timing. Senator Shively proposed a 300% of poverty-level means test and a sign-up period to reduce costs and limit open-ended enrollment, while Senator Axman proposed a tiered approach that would keep all students technically eligible but phase in funding levels by income, preserving access for students who qualify for other federal supports. DPI said it could not currently disaggregate some data by family income and that the appeal process and procurement timeline still needed work. The committee did not move HB 1540 out that morning and instead recessed to continue discussion later after members had time to review the administrative and fiscal issues separately from the means-testing proposals.

Transcript Highlights:

• Madam Chair, Representative Hernandez, it would allow military children who are receiving ESAs or any
• Madam Chair, Micheline, let's say this military child that's receiving the ESA account moves to Florida
• I mean, like I've mentioned before, the accounts of both of us who have these older ESA accounts, it's
• And so it would just... ...of those of us who had these older ESA accounts, it's just sitting there.
• in a pretext and use military families to arrive at a place that will enable and continue to allow ESA

Keywords: 1182, all

Transcript Highlights:

• HB 4052, ESAs. HB 4058, voting ranking. HB 4051, technical correction, seller. HB 4052, ESAs.
• This includes the Arizona ESA program.
• The Air Force sent us here to Arizona because Arizona had the ESA program, and at the time the ESA program
• The voters in Arizona want us to do something about ESAs.
• I started in the legislature in 2022 when the ESA program passed.

Keywords: 1182, all

Transcript Highlights:

• I know Representative Simacek wants to talk about ESAs.
• If we want to talk about charters and ESAs...
• If we want to talk about charters and ESAs, that’s just not in this bill.
• We're not talking about ESAs.
• And by the way, ESA students are held to that formula as well.

Keywords: 1182, all

Summary: The committee heard and advanced several education-related bills. HB 2318 would impose term limits on school district governing board members in districts with at least 250 students, with a four-year break before a former member could run again; the sponsor said it was meant to bring in new ideas after problems in a district, while opponents argued voters should decide and raised concerns about the timing of the change. It passed on a 6-5 vote. HB 2312 would allow certain federally recognized patriotic youth groups to address students during school hours and require equal access for such groups; supporters framed it as a way to expand youth opportunities, while opponents objected to use of instructional time. It also received a due pass recommendation on a 6-5 vote. HB 2320 would require school districts to hire an independent municipal advisor before calling a bond election and, if successful, for each bond issue. The sponsor argued this would lower underwriting fees and save taxpayers money, citing data showing lower average fees when advisors were used; testimony from the Arizona Tax Research Association and a school accountability group supported the bill, while members raised questions about costs if a bond fails and about how public information is presented. The bill passed 7-3 with two present votes. HB 2376 would prohibit districts from buying or leasing school property when an operating charter or private school is on the site, aimed at preventing a district from using a purchase to manipulate enrollment counts and trigger state construction funding; members debated whether the underlying allegation was hearsay, but the bill passed 7-5. HB 2378 would tighten conflict-of-interest rules for the School Facilities Oversight Board by barring the architect and engineer members from having school-construction business. The sponsor said it was prompted by a reported conflict involving Tolleson Union and a board chair’s firm; some members supported the ethics rationale while others said the bill did not address broader issues, and it passed 8-4. HB 2379 would require school district governing board members to complete biennial training on duties and responsibilities, with county superintendents required to offer the training and ADE as a backstop; the committee adopted an amendment making county training mandatory and allowing intergovernmental agreements, and the bill passed 7-5 after debate over unfunded mandates, whether ASBA should be included, and whether charter boards should also be covered. Finally, HB 2380 would require board and subcommittee meetings to be held in-district, keep meeting materials online for five years, and require prior approval for out-of-state travel or later ratification with possible reimbursement; rural school representatives warned it could hinder regional collaboration and create administrative burdens, and discussion continued on how to preserve executive-session confidentiality and public access.

Transcript Highlights:

• million and 12 FTEs to ADE in fiscal year 27 to administer the ESA program.
• House Bill 2500, supplemental appropriation, ESA administration...
• 12 FTEs in the current fiscal year, fiscal year 26, to ADE to administer the ESA program.
• Leader: Is the fraud rate in the ESA program 20%? Can we learn that this week?
• Leader: Is the fraud rate in the ESA program 20%? Can we learn that this week?

Keywords: 1182, all

Summary: The caucus reviewed a long calendar of House bills across education, health, water, land, housing, labor, public safety, and taxation. Several measures dealt with artificial intelligence, including bills on AI disclosures for minors, AI-assisted divorce arbitration, an Arizona AI education program, AI privilege protections, and a required AI course in schools. Other topics included ESA administration funding, a prohibition on public money for certain foreign-controlled genetic sequencing devices, towing regulations, DUI and ignition interlock changes, health facility and nursing facility complaint timelines, internationally trained physicians, nurse anesthetist reimbursement, pharmacy penalties, childhood cancer research, cybersecurity encryption, school mental health instruction repeal, superintendent performance pay, adoption disclosures in student health settings, anti-Semitism in schools, and a range of water, land, and housing bills. Members frequently raised concerns about local control, unfunded mandates, constitutional issues, and the scope of state intervention. Several bills drew criticism for affecting school curriculum, public education, reproductive rights, protest activity, or tribal communities. Others were supported as technical fixes, consumer protections, or funding measures. The caucus also discussed a series of bills related to the Mexican gray wolf, state land management, solar and wind siting, groundwater transport, and rural development, with some members objecting that the proposals would undermine federal protections or tribal interests. A number of bills were pulled from consent for further discussion, including HB 2020, HB 2957, HCR 2044, HB 2352, HB 2667, HB 2906, HB 2093, HB 2386, HB 2481, HB 2830, HB 2076, HB 2411, HB 2136, HB 2665, and HB 2904. The meeting ended with an announcement of the Latino Caucus guest presentation and an emotional tribute to Reverend Jesse Jackson, followed by presentation of an Affordability Award to Representatives Lorena Austin and Stephanie Simacek for work on economic justice and working families. The caucus then adjourned.

Transcript Highlights:

• Members, I just want to lift up that back in the day you could take your ESA...
• I have several ESA mom friends that did that, and after a certain time period, because this is for if
• I have concerns with the 529 account being even partially funded with ESA funds and then transferring
• committee if they had any information on whether it was trackable for them to identify where these ESA
• Yeah, there's no data on that, but I can assure you that there are people who definitely transfer ESA

Keywords: 1182, all

Transcript Highlights:

• Members, I just want to lift up that back in the day you could take your ESA dollars and transfer a certain
• I have several ESA mom friends that did that.
• I have concerns with the 529 account being even partially funded with ESA funds and then transferring
• Yeah, there's no data on that, but I can assure you that there are people who do definitely transfer ESA
• Yeah, there's no data on that, but I can assure you that there are people who definitely transfer ESA

Summary: The caucus reviewed several bills on its calendar, mostly focused on Senate amendments and whether sponsors intended to concur. HB 2114 would alter Motorcycle Safety Fund distributions and motorcycle registration rules, including a Senate change requiring at least one registered owner to be licensed in Arizona; the sponsor intended to concur. HB 2729 would continue several boards and agencies, including the Board of Nursing, Board of Occupational Therapy Examiners, Board of Physician Assistance, Department of Economic Security, and Board of Pharmacy; the sponsor also intended to concur. Members discussed two agriculture property inspection bills, HB 2104 and HB 2105. HB 2104 would change rules for agricultural property classification and inspections, while HB 2105 would add notice and reporting requirements for inspections; both had Senate amendments that changed inspection timing and exemptions. Some members raised concerns about county assessors’ workload, opposition from county organizations, and possible inequities and insurance or disaster-related consequences for agricultural property owners. HB 2477, the Arizona Education Savings Plan bill, drew the most discussion. The Senate amendment combined the 529-related provisions with several treasurer-related restrictions and investment rules, and members questioned the policy implications of allowing 529 funds to roll into Roth IRAs. HB 4117 would create or expand criminal penalties for interfering with religious worship, and some members expressed concern about civil liberties and equality issues, while the sponsor intended to concur. HB 2311 would require AI service disclosures to minors and, after substantial Senate amendments, to all account holders in some cases; members asked about effects on schools and government systems, and some noted concerns about the expanded scope and AG enforcement limits. The caucus also heard SCR 1004, which would prohibit photo enforcement traffic programs after December 31 subject to voter approval, though existing programs could continue under certain conditions; law enforcement concerns were noted. SB 1110 would establish a home confinement and electronic monitoring program in the Department of Corrections. SB 1618 would revise the Military Affairs Commission’s membership and duties, but one member objected to adding defense-industry representation and warned about military-industrial-complex influence. The meeting ended with the chair noting that only the bills that had gone through rules were on the agenda and adjourned the caucus.

Bills: HB4336, HB1818, HB3194, HB3538, HB3682, HB3762, HB3793, HB3930, HB3931, HB3934, HB4124, HB4200, HB4410, HB4457, HB4473, HB3884, HB1912

Keywords: interventional pain management, pain management clinic, chronic pain, acute pain, spinal injections, epidural steroid injection, peripheral nerve block, nerve ablation, spinal cord stimulator, intrathecal infusion pump, endoscopic diskectomy, fluoroscopy, physician supervision, allopathic physician, osteopathic physician, CRNA, certified registered nurse anesthetist, nurse anesthetist, freestanding pain management facility, medical licensure

Bills: HB4336, HB1818, HB3194, HB3538, HB3682, HB3762, HB3793, HB3930, HB3931, HB3934, HB4124, HB4200, HB4410, HB4457, HB4473, HB3884, HB1912

Keywords: interventional pain management, pain management clinic, chronic pain, acute pain, spinal injections, epidural steroid injection, peripheral nerve block, nerve ablation, spinal cord stimulator, intrathecal infusion pump, endoscopic diskectomy, fluoroscopy, physician supervision, allopathic physician, osteopathic physician, CRNA, certified registered nurse anesthetist, nurse anesthetist, freestanding pain management facility, medical licensure

Transcript Highlights:

• SB 1687, ESA return monies administrative costs. SB 1689, home equity revolving loan lenders.
• SB 1691, ESA assessment standards accreditation. SB 1692, ESA tutor safety rules.
• SB 1698, ESA children with disabilities evaluations.
• SB 1703, ESA parental notification waiver rights. SB 1704, ESA student disabilities requirements.
• reporting requirements education SB 17 03 essay's parental notification wave rights education SB 17 04 ESA

Keywords: 1182, all

Summary: The Senate convened with prayer, the Pledge of Allegiance, roll call, and approval of the prior journal. Members then recognized several guest groups in the gallery, including the Arizona Dental Hygienists Association, deaf and hard-of-hearing advocacy organizations, the Arizona Society of Anesthesiologists, the Doctor of the Day, and Native vote advocates. The chamber also observed a moment of silence for two DPS officers killed earlier that morning. A long list of bills was introduced and read for first reading, with many measures covering education, elections, health, public safety, tribal affairs, housing, taxation, and government administration. The Senate also received committee referrals and standing committee reports. In Committee of the Whole, SB 1425, relating to elections and July primary cure provisions, was considered, amended, and recommended do pass. The Senate adopted the committee report and then substituted HB 2022 for SB 1425 because the bills were identical. HB 2022 was then read on third reading and passed with the emergency clause by a vote of 27 ayes, 1 no, and 2 not voting. Supporters said the bill was a bipartisan effort to move the primary earlier, improve ballot return timing, and require observers in every county; one senator cited tribal voting challenges and provisional ballot rejection rates as reasons for supporting the measure, while another voted no over concerns about the emergency clause. The Senate also adopted proclamations recognizing Taekwondo Day in Arizona and American Heart Month 2026, then recessed and later reconvened to introduce additional bills, announce upcoming committee meetings, and adjourn until February 9, 2026.

Transcript Highlights:

• You know, we're certainly not going to be jettisoning ESA students. So...
• We're certainly not going to be jettisoning ESA students.
• Is the ESA program...? Mr. Chairman, point of order, point of order, point of order.
• There's not an ESA supplemental request, but Mr.... It's not an ESA supplemental request, but Mr.
• Yeah, to the point of the ESA supplementals, there is no ESA line item.

Keywords: 1182, all

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.