Provided by Capitol Consulting, LLC
After a tense 169-day session marked by a record number of vetoes, the Legislature adjourned Sine Die on Friday, June 27 at 1:20 p.m., narrowly avoiding a government shutdown. Lawmakers passed a total of 438 bills, 174 of which were vetoed by Governor Hobbs, who wielded her veto stamp more actively than ever. The Legislature introduced three separate budgets during the session. House Republicans proposed two of them independently of the Senate and Governor: a $17.3 billion budget and a continuation budget maintaining prior-year funding levels. Both were swiftly vetoed. Ultimately, the Legislature approved a $17.6 billion bipartisan budget, negotiated primarily by the Senate and Governor.
Budget
Arizona’s FY2026 state budget, totaling $17.6 billion, includes significant investments in public safety, transportation, education, and healthcare. The final budget was developed through a “member-driven” process, allowing each legislator to allocate a designated portion of funding. This approach typically leads to a greater number of smaller projects being funded, rather than concentrating resources on large-scale initiatives. This year, the areas receiving the most significant investments include childcare subsidies, the “Parents as Paid Caregivers” program for individuals with developmental disabilities, and the state’s contribution to employee health insurance costs. More details are outlined in the Governor’s press release on the budget.
Rule Changes
The Arizona Department of Health Services initiated rule changes for the funeral industry, and we have been engaged in the stakeholder and comment processes. The next step will be crematory-specific rules. You can find the drafts on the website.
HB2065 / SB1048
We collaborated closely with industry partners and the bill sponsor to amend HB2065, which initially proposed allowing a county medical examiner to oversee the final disposition of indigent deceased individuals at a county-owned and licensed crematory. While HB2065 ultimately failed to receive a hearing in the Senate, its language was later incorporated into SB1048. Despite advancing through much of the legislative process, the amended bill died in the final hours of the session.