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AFCCA Updates
We are still in the early weeks of session, with more bill introductions anticipated before the final bill introduction deadlines begin in early February. We are actively monitoring all new developments at the legislature to ensure that you have timely information and updates. Next week brings another full slate of bill activity and committee hearings, we will continue to keep you updated as your tracked bills continue to move through the legislative process!
HB 2181 (death certificates; funeral establishments; timeline) sponsored by Representative Julie WIlloughby (R, Chandler) will be heard in Commerce committee next Tuesday afternoon. As written, the bill would extend the deadline for death certificates from 7 days to 21 days. However, we anticipate an amendment to bring the deadline down from 21 days to 14 days.
HB 2184 (fetal death; funeral homes) sponsored by Representative Julie Willoughby (R, Chandler) will be heard in Health and Human Services committee next Monday afternoon. This bill extends the seven-day fetal death certificate filing requirement to fetal deaths that occur at or before 20 weeks gestation.
You can track the status of these bills on your live interactive tracking link found here –Skywolf AI– this link will automatically update as the bills move through the process. As always please do not hesitate to let me know if you would like to make any additions or removals from your bill tracking list.
Arizona Legislative Session Weekly Report – Week Three
The third week of the legislative session was characterized by a significant surge in activity as every committee is now in full swing, vetting an extensive slate of bills on each agenda and moving them through the process. This marks a critical transition from introductory remarks to substantive debate, with lawmakers focusing on the technical merits and potential impacts of pending legislation. The week also saw the session’s first successful floor actions, as bills were third-read out of the House and transmitted to the Senate. These measures now await their committee assignments in the upper chamber, signaling that we have hit the point in the session where the legislative pipeline is full and flowing between both chambers.
The atmosphere at the Capitol this week was particularly high-energy as both the House and the Senate barrel towards their respective bill introduction deadlines. This late-stage rush to file has put the state on a historic trajectory, with legislative staff preparing for a total bill count of over 1000 bills introduced in the House alone for the first time ever in Arizona history. This means this session we will see the first ever HB4001. The Senate has only introduced approximately 635 bills as of this afternoon, however their major bill introduction deadline is not until next week. Historically, Arizona bills have been numbered HB2001-HB2999, and SB1001-1999, however we have never actually surpassed the 999 bills in either chamber that would need to be introduced to trigger an HB4001 or SB3001. With 978 bills introduced in the House so far, and their final bill deadline still a week away, there is no avoiding an HB4001, even if House members stopped filing bills, budget bill introductions would push them over the 1000 bill mark.
This record-breaking volume of legislation underscores lawmakers’ ambitions for this session, and suggests that the coming weeks will see historic levels of legislation flowing through committees, caucuses, on the floor, and between the chambers.
Tensions were also on the rise this past week with anti- ICE protest activity increasing to almost daily at the Capitol. Protestors banged on the doors of the House and the Senate Wednesday afternoon until being escorted to the sidewalks by security.
Budget negotiations are beginning their first stages, with much of the discussion still focused on tax conformity to H.R.1. The discussions have marked an uneven start to negotiations that are expected to continue behind closed doors in the months ahead.
The Financial Advisory Committee (FAC) announced this week that the projected cash balance is positive in each year after accounting for statutory funding formula growth, signally that state revenue forecasts have improved. JLBC economists now forecast a cash balance of at least $577 million in each of the next three fiscal years, which will serve as the framework for this year’s budget planning. In comparison, it was estimated that $67M would be available in JLBC’s October update, but revenue growth has shown to be much higher than expected. However, conforming state income tax laws to 2025 federal tax law changes remains one of the major issues still not funded in the FY27 budget, and it remains challenging to interpret revenue impact of income tax returns amid this uncertainty.
Adding to this uncertainty, the Department of Revenue’s Tax Year 2025 income tax forms assume conformity with the federal tax changes enacted under H.R.1. However, neither the Governor’s budget proposal nor the vetoed SB 1106 aligns with the assumptions reflected in those forms, further complicating efforts to evaluate revenue impacts and forecast collections.
Traditional economic indicators over the last three years have consistently pointed toward a recession. So far, that downturn has yet to occur, and indicators are no longer signalling a recession, puzzling economists. Investment in AI and datacenters have been huge contributors to GDP growth over the past few years, most likely contributing to the “softer landing” we are now projecting.
Nonpartisan economists also highlighted their concerns over a slowed growth in our labor force, due in part to an aging working population, and an administration focused on less international immigration and harsher immigration enforcement. Looking ahead, economists caution that as economic growth accelerates in the coming years, labor constraints could present significant challenges.
By the Numbers:
Days of Session: 18
Bills Introduced: 1619
Memorials and Resolutions Introduced: 114
Bills Passed: 1
Bills Signed: 0
Bills Vetoed: 1
Memorials and Resolutions Transmitted to the Secretary of State: 2
Key Dates:
Opening Day: January 12th, 2026
Senate Bill Introduction Deadline: February 2nd, 2026
House Bill Introduction Deadline: February 9th, 2026
Crossover week: February 16th to February 20th
Final week of committees: March 23rd to March 27th
100th day of session: April 21st, 2026
Budget Deadline (constitutionally required): July 1st, 2026