"Arizona House of Representatives Committee on Rural Economic Development Report of Regular Meeting for February 12, 2026"
Summary
The Report of Regular Meeting of the Arizona House of Representatives Committee on Rural Economic Development, Fifty-seventh Legislature, Second Regular Session, for Thursday, February 12, 2026, chaired by Representative Martinez. The report records a presentation on modernization of the DeConcini Port of Entry and the committee's bill actions: HB2237 DP 4-2-0-1, HB2926 DPA 6-1-0-0, HB2113 DP 5-1-1-0, HB2824 DP 7-0-0-0 and HB2939 DP 7-0-0-0, with HB2950 held. Attachments include the revised meeting agenda and a Request to Speak report listing public positions and comments on HB2113, HB2824, HB2926 and HB2939. The report closes with a House fact sheet on HB 2939, which adds a qualified facilities tax credit amount for rural locations beginning January 1, 2027, and the roll call vote on that bill.
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
Report of Regular Meeting
Thursday, February 12, 2026
House Hearing Room 4 -- 9:00 A.M. RECEIVE
6 CHIEF CLERKS OFFICE
Convened 9:04 A.M.
Recessed FEB {§ 2026
Reconvened
Adjourned 9:57 A.M.
Members Present Members Not Present
Representative Biasiucci
Representative Blackman
Representative Hernandez
Representative Peshlakai
Representative Volk
Representative Lopez, Vice-Chairman
Representative Martinez, Chairman
Agenda
Original Agenda — Attachment |
Request to Speak
Report — Attachment 2
Committee Attendance
Report — Attachment 3
Presentations
Name Organization Attachments (Handouts)
Modernization of Josh Rubin, Chairman of the Greater 4
DeConcini Port of Entry Nogales Santa Cruz Port Authority
Committee Action
Bill Action Vote Attachments
HB2237 DP 4-2-0-1 5,6
HB2926 DPA 6-1-0-0 7,8,9
HB2113. DP 5-1-1-0 10,11,12
HB2824 DP 7-0-0-0 13,14
HB2939 DP 7-0-0-0 15,16
HB2950 HELD
February 16, 2026
eronica Graham, Committee Secretatly
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
February 12, 2026
(Original attachments on file in the Office of the Chief Clerk; video archives available at http://www.azleg.gov)
REVISED #2 - 2/06/26 REVISED #2 - 2/06/26
( vined 4.04
ARIZONA HOUSE OF REPRESENTATIVES wv
Fifty-seventh Legislature - Second Regular Session Ad) ouvn | Q ‘ B ¢-
REVISED #2 - 2/06/26
REGULAR MEETING AGENDA
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
DATE Thursday, February 12, 2026 ROOM HHR4 TIME 9:00 A.M.
Members of the public may access a livestream of the meeting here:
https://Awww.azleg.gov/videoplayer/2clientID=636 1 162879&eventID=202602 1073
Representative Lopez, Vice-Chairman
Members:
Representative Martinez, Chairman
Representative Biasiucci Representative Hernandez C
Representative Blackman Representative Peshlakai
Representative Bliss Representative Volk
© Presentation:
0 Modernization of the DeConcini Port of Entry, Josh Rubin, Chairman of the Greater Nogales
Santa Cruz County Port Authority
Bills Short Title Strike Everything Title
HB2113 iD ? public service corporation; rates; intervenor
(Martinez: Carter N, Hendrix, et al)
eae | -(JNREW w/d, RED, RULES
appropriation; Apache Junction; tourism;
*HB2237. Wi
pl recreation
uf , 2- 0- | (Blackman)
—————~ RED held 0-0-0-0-0, APPROP, RULES
HB2824 DP capital improvement; financing program
(Lopez: Liguori, Martinez, et al)
4 ()--OReD, RULES
housing; contractors; bonds; taxes
*HB2926 DPA bine
(0 ~ |- 0- RED held 0-0-0-0-0, RULES
qualified facilities; tax credit; amount
HB2939
DP (Martinez: Lopez, Shope)
( _()-0). QRED, RULES
Page 1 of 2
Attachment_4 |
Bills Short Title Strike Everything Title
HB2950 ty tourism improvement areas; municipalities;
counties
(Wilmeth: Diaz, Hernandez C, et al)
RED, RULES
On previous agenda
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
Rr
ve
0295/2026
Orterte
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.
Page 2 of 2
Information Registered on the Request to Speak System
House Rural Economic Development (2/12/2026)
HB2113, public service corporation; rates; intervenor
Support:
Onita Davis, representing self; Shirley Dye, representing self; Ed Davis, representing self; Darlene Younker,
representing self; Cathy Schwanke, representing self; Mike Sullivan, representing self; Vicki Bendau, representing
self; Shirley Lamonna, representing self; Patrick Smith, representing self; Randal Scott, representing self; Arthur
Fesler-Butts, representing self; Greg Kistler, representing self; Stephen Harris, representing self; Corinne Haynes,
representing self; Leslie White, representing self; Buffalo Rick Galeener, representing self; Ute Edge, representing
self; Susan Bolt, representing self; Linda Busam, representing self; William & Mary Jurica, representing self; Dianna
Gates, representing self; Bridget Nelke, representing self; Carole Challoner, representing self; Melanie Hutchings,
representing self; James McFadzean, representing self; Jana Reible, representing self; April Smith, representing
self; Jean Ferguson, representing self; Christi Sourk, representing self; Sue Unverricht, representing self; Cherie
Anello, representing self; Peter Anello, representing self; Pam Reinke, representing self; Mozelle Ault, representing
self; Charlyce Knight, representing self; Vicky D'Ascoli, representing self; Starr Costa, representing self; Carol
Kliewer, representing self; Thomas Simacek, representing self; Carol Stines, representing self; Donna Booth,
representing self; Levi Medina, representing self; Merl Nielsen, representing self; Kathryn Farkas, representing self;
karen enns, representing self; Jane Breakiron, representing self; Connie Wright, representing self; Jeffrey Luft,
representing self; Barb Hinderland, representing self; Mary Jamsa, representing self; Roy Scott Lassell, representing
self; Barton Anderson, representing self; Pam Throw, representing self; Sandee McKinlay, representing self;
Margaret Barnes, representing self; brenda simon, representing self; James Reggin, representing self; Douglas
Simon, representing self; Cornel Choskey, representing self; Patricia Keitel, representing self; Barbara Carter,
representing self; Bill Harenburg, representing self; Jane Evans, representing self; Laurel Lynn Scott, representing
self; Lydia Choskey, representing self; conrad tolson, representing self; Barbara Scott, representing self; Patricia
Phillips, representing self; Donalda Bond, representing self; James Roth, representing self; George Duffield,
representing self; Lynda Patrick-Hayes, LD1OSTRONGI, representing self; Clare Goldsberry, representing self; Shay
Cardell, representing self; Nancy Kolter, representing self; Lynda Brady, representing self; Dayle Hartgerink,
representing self; Ryan Larson, representing self; Anne Fesler-Butts, representing self; Steve Kolter, representing
self; Joelene Williamson, representing self; Valerie Berger, representing self; Gary Zimmerman, representing self;
Renee Yarbrough, representing self; Valerie Starr, representing self; Cheryl Pardini, representing self; Donald
Koeppen, representing self; LEE YARBROUGH, representing self; Peggy Lien, representing self
Neutral:
Cynthia Zwick, representing self
All Comments:
Shirley Dye, Self: | am assuming that a 100% increase is like doubling a rate like from 7% to 14%. If that is it, then |
think there needs to be some consideration about why such a big jump. Is it really necessary, Justifiable increase?
Rate payers understand?; Darlene Younker, Self: Utility rates are sky high already. The ratepayers have little to no
say about rate hikes. How dare they even consider a 100% or more increase? We taxpayers are already drowning
in taxes, fees, etc. Help us by voting YES.; Randal Scott, Self: Good; Arthur Fesler-Butts, Self: Retired vet, '07 ASU
Attachment_g
Honors Grad: Life member; NCOA, NRA, DAV, American Legion, ASU Alumni, AZCDL, Kiwanis member & 20+yrs PC |
urge you to support this Bill. RUCO should be intervening for all utilities customers from wrongful rate hikes.;
Dianna Gates, Self: All ratepayers should be protected!; Bridget Nelke, Self: | support this bill to bring more tools
for opposing utility rate increases; James McFadzean, Self: Good measure to minimize the incidence of huge rate
increases to residential consumers.; Sue Unverricht, Self: Intervene in any case where the rate increase is greater
than 100%. Defend rate payers please.; Mozelle Ault, Self: Need to intervene in smaller corporations as well; Starr
Costa, Self: Rate hicks, intervention in a public service corporation rates if the proposed rate increase to residential
customers is 100% or more, really should be 50% or more, but I'll settle for this if it's the best we can do to pass a
ceiling.; Mary Jamsa, Self: Transparency for all ratepayers should be the ultimate goal.; Roy Scott Lassell, Self: |
fully support this bill. It makes sense and expands and improves notification to the impacted pool.; Barton
Anderson, Self: All cities, including the smaller cities, should be equality protected by rate overseers.; James Roth,
Self: This bill would provide consumer protection to ratepayers in smaller utilities. Theses ratepayers need this
protection from large rate increases.; George Duffield, Self: | support this bill.; Lynda Brady, Self: Why only
intervene for the more populated sections of Arizona. We actually NEED people living in the rural areas. This also
screams of preferential, unfair treatment . Please vote YES, Thank You; Dayle Hartgerink, Self: RUCO should also
intervene with smaller utilities requesting rate increases LD28; Anne Fesler-Butts, Self: As a retired M.D., USAR LTC,
Life member: NCOA Aux, DAV, AZCDL, NRA, American Legion, Kiwanis member, | urge you to support this Bill. The
RUCO should be required to intervene for customers of smaller utilities to protect from wrongful rate hikes.;
Joelene Williamson, Self: | support because all taxpayers deserve RUCO intervention when their utility companies
request huge rate increases.; Gary Zimmerman, Self: Helps prevent extreme rate increases that are a financial
burden to citizens. If rates must increase - and they must - do it gradually and organically, rather than hiding it until
a necessary increase is so high it becomes burdensome.; Donald Koeppen, Self: Maybe reduce the 100% increase
to 75%. Controlling expenses is just part of good business!
HB2237, appropriation; Apache Junction; tourism; recreation
HB2824, capital improvement; financing program
Support:
Cole Libera, WALTON GLOBAL; Alex Hosmar, representing self; Michael Racy, Lobbyist, PIMA COUNTY; Marcus
Dell'Artino, The Chamber Of Southern Arizona; Courtney Gilstrap LeVinus, Arizona Multihousing Association; Tom
Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Kevin O'Reilly, representing self; Louis Woofenden, representing
self; Mike Gardner, AZ SOLAR ENERGY INDUSTRIES ASSOCIATION; Clark Princell, VALLEY PARTNERSHIP; John
Baumer, ARIZONA CHAPTER OF NAIOP
Oppose:
John Allen, representing self; Kevin McCarthy, ARIZONA TAX RESEARCH ASSOCIATION (ATRA)
All Comments:
Kevin O'Reilly, Self: This is excellent legislation that will help the state of Arizona.
HB2926, housing; contractors; bonds; taxes
Support:
Steve Kaiser, HABITAT FOR HUMANITY OF CENTRAL ARIZONA; Carol Maas, representing self
Oppose:
Luke Smith, SAHUARITA, TOWN OF
HB2939, qualified facilities; tax credit; amount
Support:
Michael Cruz, ATIEVA USA, INC. DBA LUCID MOTORS, LUCID USA, INC; Robert Aldous, CASA GRANDE, CITY OF;
Brian Murray, LUCID USA, INC
Oppose:
Onita Davis, representing self; Shirley Dye, representing self; Darlene Younker, representing self; Cathy Schwanke,
representing self; Mike Sullivan, representing self; Vicki Bendau, representing self; Shirley Lamonna, representing
self; Randal Scott, representing self; Elizabeth King, representing self; C D Tavares, representing self; Arthur Fesler-
Butts, representing self; Michael Steffens, representing self; Jeanne Tavares, representing self; Bonnie Kistler,
representing self; Greg Kistler, representing self; Deanna Schreckler, representing self; Stephen Harris,
representing self; Corinne Haynes, representing self; Leslie White, representing self; Buffalo Rick Galeener,
representing self; Ute Edge, representing self; Susan Bolt, representing self; Jeffrey Scott Christopher, representing
self; Linda Busam, representing self; William & Mary Jurica, representing self; Debbie Joy, representing self;
Dianna Gates, representing self; Bridget Nelke, representing self; Carole Challoner, representing self; Randy Brown,
representing self; Sydney Brown, representing self; Melanie Hutchings, representing self; James McFadzean,
representing self; Jana Reible, representing self; April Smith, representing self; Jean Ferguson, representing self;
Christi Sourk, representing self; Jamie Alford, representing self; Sue Unverricht, representing self; Carmela Barna,
representing self; Cherie Anello, representing self; Peter Anello, representing self; K Webster, representing self;
Lisa Stuessel, representing self; Lorraine S, representing self; Pam Reinke, representing self; Thomas Reiner,
representing self; Jane Waypa, representing self; Mozelle Ault, representing self; Charlyce Knight, representing
self; Vicky D'Ascoli, representing self; Earl Taylor, representing self; Starr Costa, representing self; Carol Kliewer,
representing self; Colleen Ryan, representing self; Thomas Simacek, representing self; Donna Booth, representing
self; Roy Scott Lassell, representing self; Bill Harenburg, representing self; Jane Evans, representing self; Sarah
Rowse, representing self; patricia wheeler, representing self; Laurel Lynn Scott, representing self; Connie Wright,
representing self; Lydia Choskey, representing self; Jeffrey Luft, representing self; Cornel Choskey, representing
self; conrad tolson, representing self; Barbara Scott, representing self; MARY PRIEBE, representing self; Jean Rice,
representing self; Barbara Carter, representing self; Shuron Harvey, representing self; Patricia Phillips, representing
self; Lorene Anderson, representing self; James Reggin, representing self; Ronald Pardini, representing self; Kate
Cusumano, representing self; Steve Kolter, representing self; Carolyn Davidson, representing self; eileen acosta,
representing self; Sandee McKinlay, representing self; Daniel Spencer, representing self; Donalda Bond,
representing self; Danielle Ramos, representing self; James Roth, representing self; Anne Girdler, representing self;
Bonnie Lund, representing self; George Duffield, representing self; Patricia Keitel, representing self; Barton
Anderson, representing self; Lynda Patrick-Hayes, LD1OSTRONGI, representing self; Clare Goldsberry, representing
self; Eric Lovelis, representing self; Dennis Liles, representing self; Shay Cardell, representing self; Katherine
Cabianca, representing self; Mary Jamsa, representing self; Lynda Brady, representing self; Chandrasekhar
Doniparthi, representing self; Dayle Hartgerink, representing self; Anne Fesler-Butts, representing self; Ryan Larson,
representing self; Merl Nielsen, representing self; Helen Fong, representing self; Joelene Williamson, representing
self; Gary Zimmerman, representing self; Margaret Barnes, representing self; Renee Yarbrough, representing self;
Roberta Ravella, representing self; Valerie Starr, representing self; Barb Hinderland, representing self; Cheryl
Pardini, representing self; Jenny Hallstrom, representing self; Kathryn Farkas, representing self; Tony Dudzinski,
representing self; brenda simon, representing self; Douglas Simon, representing self; Doris Mills, representing self;
karen enns, representing self; Donald Koeppen, representing self; Marlene Leatherwood, representing self; louise
liggett, representing self; Wayne Sapp, representing self; LEE YARBROUGH, representing self; Leo Brown,
representing self
All Comments:
Shirley Dye, Self: No more corporate give a ways from tax payers. A company or industry should get their own
investors to support the construction and start up costs. Taxpayers struggle already with their own issues to
survive.; Darlene Younker, Self: NO! NO! NO! This bill is shocking. Greed in the rawest form. Giving tax incentives
to companies that relocate here and provide jobs is fine BUT a quarter million for ONE job. ONE job!! NO! A
thousand times NO!; Randal Scott, Self: Nope; Arthur Fesler-Butts, Self: Retired vet, '07 ASU Honors Grad; Life
member: NCOA, DAV, ASU Alumni, NRA, AZCDL, American Legion, Kiwanis member & 20+yrs PC, | urge you to
oppose this Bill. Unconstitutional tax credit. Must be repealed and not extended.; Stephen Harris, Self: say no to
unconstitutional tax credits! This program should be repealed, not expanded; Linda Busam, Self: Say no to
unconstitutional tax credits! This program should be repealed, not expanded.; Dianna Gates, Self: No tax credits!
They are unconstitutional. This program should be repealed not expanded.; Bridget Nelke, Self: | OPPOSE THIS BILL
TAX CREDITS INCREASE COSTS TO TAXPAYERS; Randy Brown, Self: If AZ would just STOP handing out credits and
subsidies like they were "FREE", we wouldn't have a budget issue. Limit state spending to REAL issues, not partisan
handouts.; Sydney Brown, Self: | say no to unconstitutional tax credits! This program definitely should be repealed,
certainly not expanded.; James McFadzean, Self: Bad bill. Unneeded corporate welfare at its worse.; April Smith,
Self: | am against unconstitutional tax credits. This program should be repealed and not extended.; Sue Unverricht,
Self: Refundable tax credits are simply a gift to politically connected contractors. Unconstitutional; Lisa Stuessel,
Self: Vote NO!; Mozelle Ault, Self: NO tax credits; Roy Scott Lassell, Self: | do not support this bill. This program
should be repealed, not expanded. This is a bad bill for AZ citizens.; Sarah Rowse, Self: Appears to be
unconstitutional; patricia wheeler, Self: | oppose unconstitutional taxes; Laurel Lynn Scott, Self: Giveaway Fools;
conrad tolson, Self: This is corporate welfare. Tax payers should not have to subsidize; Barbara Carter, Self:
Unconstitutional; James Roth, Self: Vote no to unconstitutional tax credits! This program should be repealed, not
expanded.; Bonnie Lund, Self: An unconstitutional refundable tax credit.; George Duffield, Self: This is a bad bill!;
Patricia Keitel, Self: say no to unconstitutional tax credits! This program should be repealed, not expanded.; Barton
Anderson, Self: | say no to unconstitutional tax credits! This program should be repealed, not expanded.; Mary
Jamsa, Self: Say no to unconstitutional tax credits! This program should be repealed, not expanded.; Lynda Brady,
Self: Good Day! This is an unconstitutional tax credit. Please consider repealing and not expanding a BAD IDEA.
Thank You; Dayle Hartgerink, Self: NO to unconstitutional tax credits! Repeal thi proram, don't expand it! LD28;
Anne Fesler-Butts, Self: As a retired M.D., USAR LTC, Life member: NCOA Aux, DAV, NRA, AZCDL, American Legion,
member of Kiwanis, | urge you to oppose this Bill. This is an unconstitutional tax credit but not for the regular tax
payer. Must be repealed not expanded.; Joelene Williamson, Self: | do not support. Reject unconstitutional tax
credits. Scrap this program instead of growing it.; Gary Zimmerman, Self: Not necessary. Allow our market
capitalism system to function. This encourages waste to obtain favorable tax treatment.; Margaret Barnes, Self:
No to unconstitutional tax credits.; Kathryn Farkas, Self: Say no to unconstitutional taxes. This program should be
repealed, not expanded; Tony Dudzinski, Self: Please vote no on HB2939. Thank you.; Douglas Simon, Self: Repeal
the tax credit.; karen enns, Self: From what | have seen in the past, It seems to me to give certain facilities tax
credits is another opening for more waste and fraud. Please vote no,; Donald Koeppen, Self: Where do these
stupid proposals come from? Repeal it, say no please.; louise liggett, Self: CHOMP-CHOMP-CHOMP. Another stinky
UNCONSTITUTIONAL TAX FOR Pacman!
HB2950, tourism improvement areas; municipalities; counties
Support:
Kim Sabow, Arizona Lodging & Tourism Association; Eric Paschal, representing self; Andrew Chippindall,
representing self; Marcus Carney, representing self; Ron Price, representing self; Jane Vukovich, representing self;
Michael Racy, Lobbyist, PIMA COUNTY; Jason Baran, SR. Govt Relations Rep, SALT RIVER PROJECT (SRP); James
Hamilton, NASCAR; Todd Baughman, ARIZONA LODGING AND TOURISM ASSOCIATION; Marcus Dell'Artino, Phoenix
Suns; Dana Paschke, VISIT PHOENIX; Donna Davis, representing self; Steve Barclay, BEER & WINE DISTRIBUTORS OF
ARIZONA; Dan Bogert, AZ RESTAURANT ASSOCIATION; Lauren King, ARIZONA WINE GROWERS ASSOCIATION
(AWGA); Mike Huckins, GREATER PHOENIX CHAMBER OF COMMERCE; Maegan Johnson , PHOENIX, CITY OF; Neil
Giuliano, GREATER PHOENIX LEADERSHIP INC; Stephanie Pressler, representing self; Amilyn Pierce, AZ
DIAMONDBACKS; Laura Magnus, EXPERIENCE SCOTTSDALE, VISIT MESA; Michael Hutchinson, EAST VALLEY
PARTNERSHIP; John Holdsworth, representing self; Rachel Pearson, representing self; Eric Kerr, representing self;
Carol Stines, representing self; Bridget Binsbacher, representing self; Karl Shaddock, ORO VALLEY, TOWN OF;
Patrick McDaniel, PHOENIX COMMUNITY ALLIANCE; Clark Princell, VALLEY PARTNERSHIP; John Raeder, BUCKEYE,
CITY OF; Steve Kaiser, VISIT MESA; Tim Beaubien, Arizona Association Of Realtors; Michael Martin, representing
self; Dennis Kavanaugh, representing self; Leigh Marino, City Of Cottonwood; John Maxwell, representing self;
Michael Pearson, representing self; Anna Mineer, representing self; Ronen Aviram, representing self; Gracie Noel,
representing self; Steven Totten, representing self; Raquel Bigman, representing self; Ashley Akright Colon,
representing self; Lily Presson, representing self; Chris Robertson, representing self; Sarai Case, representing self;
Maria Delgado, representing self; Lorne Edwards, representing self; Tiffany Nelson-Thorne, representing self;
Monica Lerch, representing self; Kelli Blubaum, representing self; Erika Pumphrey, representing self; Tracy Kossel,
representing self; Christina LaPorte, representing self; MacKenzie Brower, representing self; Alleson Dunaway,
representing self; Michelle Myers, representing self; Adam Haught, representing self; Lorenzo Gonzalez,
representing self; Daniel Pressler, representing self; Liz Adriano, representing self; Maureen Cox, representing self;
Rachel Sacco, representing self; Gigi Fitzgerald, representing self; Win Holden, representing self; Kathryn Carlton,
representing self; Diane Regan, representing self; Samuel Richard, Arizona Citizens For The Arts; Deanne Boynton
Grupp, representing self; Angelica Petrov, representing self; Donn Oswald, representing self; Heather Oswald,
representing self; Sarah Doyle, representing self; Brian Horner, representing self; Michael Chirichillo, representing
self; Lauren Jobe, representing self; Paul Gray, representing self; Erica Rietmann, representing self; Stefanie Boe,
representing self; Richard Romane, representing self; Ada Walker, representing self; Alyssa Flink, representing self;
Megan Tully, representing self; Rebecca Kedzie, representing self; Amy Nicole, representing self; Brice Erausquin,
representing self
Oppose:
Roy Scott Lassell, representing self; Sue Unverricht, representing self; Cathy Schwanke, representing self; Leslie
White, representing self; Jane Evans, representing self; patricia wheeler, representing self; Patrick Smith,
representing self; Mozelle Ault, representing self; Connie Wright, representing self; Jeffrey Luft, representing self;
Lydia Choskey, representing self; Cornel Choskey, representing self; Thomas Simacek, representing self; conrad
tolson, representing self; Randal Scott, representing self; Thomas Reiner, representing self; Elizabeth King,
representing self; Jean Rice, representing self; Shuron Harvey, representing self; Patricia Phillips, representing self;
James Reggin, representing self; Lorene Anderson, representing self; Kate Cusumano, representing self; Jane
Waypa, representing self; Earl Taylor, representing self; Carolyn Davidson, representing self; Sandee McKinlay,
representing self; eileen acosta, representing self; Daniel Spencer, representing self; Bonnie Kistler, representing
self; Greg Kistler, representing self; Debbie Joy, representing self; K Webster, representing self; Donalda Bond,
representing self; Pam Throw, representing self; Carmela Barna, representing self; Pam Reinke, representing self;
Colleen Ryan, representing self; Randy Brown, representing self; Danielle Ramos, representing self; Bonnie Lund,
representing self; Linda Busam, representing self; C D Tavares, representing self; Jeanne Tavares, representing self;
George Duffield, representing self; Patricia Keitel, representing self; Carole Challoner, representing self; Jean
Ferguson, representing self; Barton Anderson, representing self; Cherie Anello, representing self; Peter Anello,
representing self; Lynda Patrick-Hayes, LD10STRONGI, representing self; Eric Lovelis, representing self; Dianna
Gates, representing self; Mary Jamsa, representing self; Sydney Brown, representing self; Ute Edge, representing
self; Stephen Harris, representing self; Jeffrey Scott Christopher, representing self; Corinne Haynes, representing
self; Arthur Fesler-Butts, representing self; Jane Breakiron, representing self; Jana Reible, representing self; Susan
Bolt, representing self; Merl Nielsen, representing self; Joelene Williamson, representing self; Michael Steffens,
representing self; Margaret Barnes, representing self; William & Mary Jurica, representing self; April Smith,
representing self; Christi Sourk, representing self; Jamie Alford, representing self; Lisa Stuessel, representing self;
Nada Dee, representing self; James McFadzean, representing self; Cheryl Pardini, representing self; Bridget Nelke,
representing self; Kathryn Farkas, representing self; brenda simon, representing self; Douglas Simon, representing
self; Lorraine S, representing self; karen enns, representing self; Kevin McCarthy, ARIZONA TAX RESEARCH
ASSOCIATION (ATRA); Donna Booth, representing self; Doris Mills, representing self; Carol Kliewer, representing
self; Donald Koeppen, representing self; louise liggett, representing self; Joe Galli, Flagstaff Chamber of Commerce,
Greater Flagstaff Chamber Of Commerce; Wayne Sapp, representing self; Vicky D'Ascoli, representing self; Aimee
Yentes, AZ FREE ENTERPRISE CLUB; Bill Harenburg, representing self; Sarah Rowse, representing self; Darla
Gonzalez, representing self; Laurel Lynn Scott, representing self; Barbara Scott, representing self; MARY PRIEBE,
representing self; Barbara Carter, representing self; Ronald Pardini, representing self; Steve Kolter, representing
self; Anne Girdler, representing self; Clare Goldsberry, representing self; Shay Cardell, representing self; Katherine
Cabianca, representing self; Lynda Brady, representing self; Chandrasekhar Doniparthi, representing self; Dayle
Hartgerink, representing self; Anne Fesler-Butts, representing self; Helen Fong, representing self; Renee Yarbrough,
representing self; Roberta Ravella, representing self; Jenny Hallstrom, representing self; Tony Dudzinski,
representing self; Vickie Parks, representing self; Marlene Leatherwood, representing self; LEE YARBROUGH,
representing self; Leo Brown, representing self
All Comments:
Eric Paschal, Self: TIAs have been successful in 25 states and 220 destinations, all without burdening local
taxpayers.; Andrew Chippindall, Self: As General Manager of Mountain Shadows Resort located in Paradise Valley |
am very much in favor of this bill. It is vital for our Tourism Community. Andrew Chippindall Mountain Shadows
General Manager; Ron Price, Self: request opportunity to speak; Jane Vukovich, Self: This Bill is vitally important to
the tourism industry in Phoenix. We have a unique and wonderful destination to share with our visitors and
meeting attendees we need the funds to remain front and center when they are deciding where to go.; Donna
Davis, Self: Looks like a great way to market our state which could generate more tax revenue!; Stephanie Pressler,
Self: TIAs are proven to increase hotel room demand, boost revenue, and drive millions in additional economic
impact — all without burdening local taxpayers. By voting YES, you are ensuring continued economic growth for
communities across the state.; Rachel Pearson, Self: This is a critical bill for the tourism industry, one of the largest
industries in the state generating new revenue for the economy. Please vote YES!; Carol Stines, Self: Why do
politicians loves taxes?! Pass this to stop more taxes.; Bridget Binsbacher, Self: On behalf of the Cactus League
Baseball Association, we support HB2950.; Michael Martin, Self: | am in support of the TIA legislation. It will
provide rural and urban communities a funding structure that can be used, if desired, to increase local funding for
tourism marketing efforts. This will help our communities to compete for business.; Dennis Kavanaugh, Self: | am
the current chair for the Visit Mesa Board of Directors and also a former Vice Mayor of the City of Mesa; Anna
Mineer, Self: Please support this bill. It is incredibly important to our tourism industry.; Ronen Aviram, Self: This is
a crucial form of legislation to allow our state to compete for tourism vs 23 states that already possess this tool.
This is vital for the long term success of leveling the playing field in the tourism industry with no cost to AZ
residents.; Ashley Akright Colon, Self: We need this tool as a state to build a resilient tourism community. Tourism
is a large economic driver that supports jobs and drives small businesses.; Lily Presson, Self: A TIA would be a
massive win for Phoenicians! Phoenix needs this to properly compete among other top destinations.; Chris
Robertson, Self: This bill will allow Arizona to continue attracting important conventions, special events and
meetings to our cities.; Lorne Edwards, Self: | am in support of this enabling legislation that helps us create a
sustainable mechanism that would allow Greater Phoenix and all of Arizona to compete, strengthen our economy
and create good paying jobs for alf our residents; Roy Scott Lassell, Self: | do not support this bill. We do not need
or want added useless taxes.; Sue Unverricht, Self: Unconstitutional tax on hotels and bad policy.; Mozelle Ault,
Self: No more taxes. Unconstitutional!; Connie Wright, Self: Unconstitutional; Jeffrey Luft, Self: Slush fund folly.
Stop this nonsense now!},,; Randal Scott, Self: No good; Sandee McKinlay, Self: No more unconstitutional taxes on
consumers.; Randy Brown, Self: if a business wants to promote tourism in its area, there is nothing stopping it from
writing checks. They DON'T need to be writing those checks with OTHER PEOPLES MONEY! This is unneeded
garbage legislation and needs to STOP being reintroduced.; Bonnie Lund, Self: This tax is unconstitutional.; Linda
Busam, Self: | say no to unconstitutional taxes!; George Duffield, Self: This bill comes up every year and is bad for
AZ. Defeat it!; Patricia Keitel, Self: say no to unconstitutional taxes!; Barton Anderson, Self: No unconstitutional
taxes; Eric Lovelis, Self: Forcing business owners to "join" an association and pay a tax to promote tourism is
absurd. Who sets the rates? What if they can't or won't pay? Don't we already have a state tourism board? If
passed, | foresee a lawsuit as this is unconstitutional.; Dianna Gates, Self: Say no to unconstitutional taxes!; Mary
Jamsa, Self: Say no to unconstitutional taxes!; Sydney Brown, Self: This unconstitutional tax legislation needs to
STOP being re-introduced! Defeat itl; Stephen Harris, Self: So no to this unconstitutional tax!; Jeffrey Scott
Christopher, Seif: Establishes an unconstitutional tax.; Arthur Fesler-Butts, Self: Retired vet, '07 ASU Honors Grad:
Life member; NCOA, NRA, American Legion, AZCDL, DAV, ASU Alumni, Kiwanis member, 20+yrs PC, | urge you
oppose this bill. This is an unconstitutional tax.; Joelene Williamson, Self: | do not support. Defend the Constitution
— oppose illegal taxes.; April Smith, Self: Please stop with the unconstitutional taxes.; Lisa Stuessel, Self: We must
follow the constitution, this does NOT! VOTE NOI; James McFadzean, Self: This bill would establish an
unconstitutional tax.; Bridget Nelke, Self: | OPPOSE THIS BILL VOTE NO; Kathryn Farkas, Self: Say no to
unconstitutional taxes.; karen enns, Self: Seems to me that this is an area that private businesses should be doing
and not funded by the taxpayer. As ail things governmental, there would be waste of our money due to fraud and
ineptness of government. Please vote no.; Donald Koeppen, Self: This is not fair and not constitutional!; Lorenzo
Gonzalez, Self: Tourism is the new backbone of Arizona, replacing agriculture. Working in hospitality, 1 get to talk to
tourists who rave about our state with some considering moving here. Lets Nothing beats our tax revenue being
supplemented by tourists!; Liz Adriano, Self: Having this Arizona TIA legislation passed is critical to my small
business. | rely on business travelers coming to Arizona for my experiential neuroscience based wellness company
to thrive. We are losing business to other states using TIA strategy.; louise liggett, Self: Where is PACMAN when
you need him. Chomp up the UNCONSTITUTIONAL TAXES.; Matireen Cox, Self: This bill is crucial to the tourism
industry and the economy of Greater Phoenix! | urge you to pass this bill!; Gigi Fitzgerald, Self: 100% support this
bill and the city of Phoenix needs to increase tourisum.; Donn Oswald, Self: Please provide us with the resources to
help fuel the Arizona tourism economic engine.; Stefanie Boe, Self: DISCOVER MARANA supports this important
legislation.; Richard Romane, Self: Approving this bill would be beneficial the JW Camelback Inn, all hotels and
resorts in the state, and would help us compete with other states that have similar funding. Thank you; Amy
Nicole, Self: This will strengthen our community; | strongly support.; Brice Erausquin, Self: Our destination
desperately needs this funding mechanism in order to remain competitive within the tourism industry.; Sarah
Rowse, Self: Appears to be unconstitutional; Darla Gonzalez, Self: This is an unconstitutional tax on hotels.; Laure!
Lynn Scott, Self: How do you sleep at night?; Barbara Carter, Self: Unconstitutional; Clare Goldsberry, Self: This tax
on hotels is unconstitutional and would mean hotels would be supporting their competition!; Lynda Brady, Self: Sir,
this is clearly unconstitutional! | request a NO vote. Thank You; Dayle Hartgerink, Self: NO to unconstitutional
taxes! LD28; Anne Fesler-Butts, Self: As a retired M.D., USAR LTC, Life member: NCOA Aux, NRA, DAV, AZCDL.
American Legion, member of Kiwanis, | urge you to oppose this bill. It is an unconstitutional tax.; Renee Yarbrough,
Self: This bill is unconstitutional; Tony Dudzinski, Self: Please vote note on HB2950, Thank you.
COMPLETE FORM FOR PUBLIC RECORD
STATE OF ARIZONA
HOUSE OF REPRESENTATIVES
REQUEST TO SPEAK
Committeeon_ (KE? Date: O2, 1H Bill Number: IBD
Name: Shane hers | w support O) Oppose U Neutral | Need to Speak: Wes OQ) No
(ei
Representing: alton b-lo boul Registered Lobbyist O Yes (1 No
Address: 8BOD N. Gaxnen Comer [4 City/State: Seattocdle AZ Zip Code: BESO 58
Email Address: shddher'y (¥ wedton: LOW Phone Number: A 3. Y5O 4721
Comments:
*SPEAKING TIME DETERMINED BY THE CHAIRMAN*
ARIZONA STATE LEGISLATURE
Fifty-seventh Legislature - Second Regular Session
COMMITTEE ATTENDANCE RECORD
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
CHAIRMAN: Teresa Martinez VICE-CHAIRMAN: | Chris Lopez
DATE 02/12/26
CONVENED G: 04
RECESSED
RECONVENED
ADJOURNED G: 54
MEMBERS PRESENT NOT PRESENT
Biasiucci Va
Blackman wa
Hernandez C wa
Peshlakai Ve
Volk wa ;
Lopez, Vice-Chairman wa
Martinez, Chairman a
TOTAL rp
Attachment__3 _
Attachment_4
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ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2237: appropriation; Apache Junction; tourism; recreation
Sponsor: Representative Blackman, LD 7
Committee on Rural Economic Development
Overview
Appropriates $4,500,000 from the state General Fund (GF) in Fiscal Year (FY) 2027 to the
State Treasurer to distribute to the City of Apache Junction to fund the development and
construction of enhancements to Superstition trails and a visitor gateway.
History
The Office of the State Treasurer Arizona is responsible for the banking and investment
management duties for the state, provides investment services to local governments, and
exclusively manages the Permanent Land Endowment.
Provisions
1. Appropriates $4,500,000 from the state General Fund (GF) in Fiscal Year (FY) 2027 to
the State Treasurer to distribute to the City of Apache Junction for development and
construction of enhancements to Superstition trails and a visitor gateway.
O Prop 105 (45 votes) O Prop 108 (40 votes) 0 Emergency (40 votes) Fiscal Note
Initials PB HB 2237
1/26/2026 Page 1 Rural Economic Development
Attachment_5 _
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2237
DATE February 12, 2026 MOTION: DP _
PASS AYE NAY PRESENT | ABSENT
Biasiucci /. VA
Blackman JS
Hernandez C VS /
Peshlakai Sy
Volk y| wv
Lopez, Vice-Chairman JS 5
Martinez, Chairman WA
{i eTo Ty |
APPROVED: | yo COMMITTEE Chala
SFERESA MARTINEZ, Chairman
CHRIS LOPEZ, Vice-Chairman
ATTACHMENT. C
ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2926: housing; contractors; bonds; taxes
Sponsor: Representative Bliss, LD 1
Committee on Rural Economic Development
Overview
Directs each municipality to administer a workforce housing project expedited plan and
permitting process, certified by the Arizona Department of Housing (ADOH), and authorizes
the Registrar of Contractors (ROC) to waive the license examination for qualified applicants
in rural areas. Creates a tax exemption for workforce housing builders.
History
ADOH and the Arizona Finance Authority (AFA) were established in 2001 to fulfill separate
duties in addressing housing stock and affordability. ADOH administers several programs
and establishes policies and procedures to address housing issues of low- and moderate-
income families, populations with special needs, housing affordability, and decaying housing
stock,
Alternatively, AFA serves as the bonding authority and supports affordable housing
programs. It is governed by a 7-member board of directors, appointed by the Governor to 7-
year terms. AFA's main responsibilities include: 1) administering funds or property from
federal agencies or others; 2) enter into agreements, contract with, or act as guarantor with
any federal, state, or local government agency in connection with its responsibilities related
to housing; and 3) inspect housing facility financed through its resources (Arizona State
Library).
Furthermore, the AFA must authorize any corporation that seeks to act as an authority in
the issuance of bonds and is responsible for overseeing the greater Arizona development
authority. Bonds are issued mainly by the Arizona Industrial Development Authority (IDA),
with uses for bonds ranging from residential rental to manufacturing and infrastructure
projects (Title 41, Chapter 53; Title 35, Chapter 5, Art. 1 & 2 A.R.S).
Prime contractors are those who supervise, perform or coordinate the modification of any
modification of any building, highway, road, railroad, excavation, manufactured building or
other structure, project, development or improvement, including the contracting, if any, with
any subcontractors or specialty contractors and who is responsible for the completion of the
contract (A.R.S § 42-5075).
Provisions
Workforce Housing Authorization
1. Requires municipalities to allow a workforce housing builder to commence vertical
construction on any residential structure as part of a workforce housing project
G Prop 106 (45 votes) O Prop 108 (40 votes) 0 Emergency (40 votes) Fiscal Note
Initials HB 2926
2/2/2026 Page 1 Rural Economie Development
Attachment %
concurrently with the completion of the horizontal improvements to the project if all
specified conditions are fulfilled. (Sec. 1)
2. Prohibits, if essential infrastructure utility services are operational, a municipality from
withholding necessary building permits or certificates of occupancy for workforce housing
projects solely due to the associated horizontal construction being incomplete. (Sec. 1)
3. Directs municipalities to establish and maintain a workforce housing project expedited
plan review and permitting process that is certified by ADOH within 12 months of the
effective date. (Sec. 1)
4, Outlines the minimum information and objectives required to be included in
municipalities’ workforce housing project expedited plan review and permitting process.
(Sec. 1)
5. Allows municipalities to enter into agreements with ADOH to coordinate certification and
permit tracking. (Sec. 1)
6. Defines workforce housing builder and workforce housing. (Sec. 1)
Rural Area Contractors Licensure
7. Outlines specified eligibility requirements that, if all are met by an applicant, allow the
ROC to waive the examination requirements and issue a license to the applicant. (Sec. 2)
8. Directs the ROC to approve or deny an application for a license within 60 days after
receiving the completed application. (Sec. 2)
9, Prohibits a licensee from performing any work that is not in a rural area of Arizona. (Sec.
2)
10. Specifies the license expires on December 31, 2029. (Sec. 2)
11. Instructs the ROC to adopt rules to implement the licensure requirements. (Sec. 2)
12. Defines rural area. (Sec. 2)
IDA Bond Issuance
13. Lowers the minimum population threshold, from 7% to 3% of the total state population,
that a governing body of a county or municipality must have in order to issue bonds to
finance a qualified project. (Sec. 3)
14. Expands one of the types of qualified projects that may be financed through a bond
issuance from an IDA, to include all residential rental projects instead of solely
multifamily residential rental projects. (Sec. 3)
Deparimental Rules Establishment
15, Directs ADOH to establish a process to certify workforce housing builders and maintain
a public registry of certified workforce housing builders (public registry). (Sec. 4)
16. Directs ADOH and the Arizona Department of Revenue (DOR) to adopt rules and
prescribe forms and procedures as necessary for the workforce housing builders
certification process and public registry. (Sec. 4)
17. Directs ADOH and DOR to collaborate in adopting rules as necessary to avoid the
duplication and inconsistencies of rules, (Sec. 4)
Initials HB 2926
2/2/2026 Page 2 Rural Economic Development
18. Grants ADOH exclusive authority over issues related to certification of workforce housing
builders and the development of a public registry, and grants DOR exclusive authority
over the administration of tax relief. (Sec. 4)
19. Authorizes ADOH to enter into agreements with a municipality to coordinate certification
and permit tracking for workforce housing projects. (Sec. 4)
Tax Exemption
20, Exempts the gross proceeds of sales or gross income attributable to the development of
workforce housing projects from the prime contracting classification tax if the contractor
is classified as a workforce housing builder, regardless of whether services are provided
sequential to or concurrent with prime contracting activities that are subject to tax. (Sec.
5)
Miscellaneous
21, Contain legislative findings. (Sec. 6)
22. Establishes the effective date of this act to be 12 months after the general effective date.
(Sec. 7)
23. Cites the act as the Workforce Housing Incentive Act. (Sec. 8)
24, Makes technical and conforming changes. (Sec. 3, 4, 5)
Initials HB 2926
2/2/2026 Page 3 Rural Economic Development
Fifty-seventh Legislature Rural Economic Development
Second Regular Session H.B. 2926
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2926
(Reference to printed bill)
Amendment instruction key:
[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
(Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
[GREEN-STREKECUT-F- BRACKETS] indicates new text removed from statute
or previously enacted session law.
(Green—str+kevutrtrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<fireerstr+kevut—itr-carets>> indicates a section removed from the bill.
The bill as proposed to be amended is reprinted as follows:
Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes,
is amended by adding section 9-461.21, to read:
9-461.21. Workforce housing projects; residential structures;
an _revie nd rmittin rocess; definitions
[ARO TFS TAN BEN GAN — OTHER CARE A -THON EE EP ALE SHATE HELGE TA
ONO HWM
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H of Verbals
Vit draw!
Analysts Initials
House Amendments to H.B. 2926
OMONDTNHPWNH FE
PPP WWWWWWWWWWDMYDNYDNMDN DD DYDD DKF RP RFP RP RB BPP Ree
NF OO ANAAHPWNHRF TWO OANA TAHPWNHYEF OW ANA TABRWNHHO
43
€-] [A.] EACH MUNICIPALITY [SHAtt] [MAY] ESTABLISH AND MAINTAIN A
WORKFORCE HOUSING PROJECT EXPEDITED PLAN REVIEW AND PERMITTING PROCESS
(THAT —ES—CERTEF EER BFE ART ZON A BEPAR THEN T— OF THOUS TOT E
MON FAS —APFER-THE-EF FECT HVE BATE OF —THTS—SECT HON]. THE WORKFORCE HOUSING
PROJECT EXPEDITED PLAN REVIEW AND PERMITTING PROCESS SHALL INCLUDE [AT
TEAST] ALL OF THE FOLLOWING:
1. A DEDICATED POINT OF CONTACT FOR AFFORDABLE HOUSING APPLICANTS.
2. INITIAL PLAN REVIEW WITHIN TWENTY BUSINESS DAYS AFTER THE
SUBMISSION OF THE PLAN APPLICATION.
3. ([PREORTFS—SEHEBULENG—OF] INSPECTIONS [BEING GIVEN PRIORITY
SCHEDULING OR BEING SCHEDULED WITHIN SEVENTY-TWO HOURS].
[4-—REBUCEB-OR-BEFERREB-PEAN-REVTEN-FEES—
B-] ([B.] A MUNICIPALITY MAY ENTER INTO AGREEMENTS WITH THE ARIZONA
DEPARTMENT OF HOUSING TO COORDINATE CERTIFICATION AND PERMIT TRACKING.
[&-] (C.] FOR THE PURPOSES OF THIS SECTION:
[27] [1.] "WORKFORCE HOUSING" MEANS NEW DWELLING UNITS THAT ARE:
(a) FOR SALE OR RENT AT A SALES OR RENTAL PRICE THAT IS AFFORDABLE
TO HOUSEHOLDS EARNING NOT MORE THAN ONE HUNDRED (7HENFY] CELFTY] PERCENT
OF THE AREA MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT.
(b) SUBJECT TO A RECORDED AFFORDABILITY COVENANT OR OTHER BINDING
RESTRICTION THAT ENSURES THAT THE SALES OR RENTAL PRICE OF THE DWELLING
UNIT IS AFFORDABLE AS PRESCRIBED IN SUBDIVISION (a) OF THIS PARAGRAPH FOR
AT LEAST TWENTY YEARS.
(t-] ([2.] “WORKFORCE HOUSING [®UTEBER] [PROJECT]" MEANS A
RESIDENTIAL [€ONFRACTOR—-THAT—TSTCICENSEB- PURSUANT _TOTTTEE 32 CHAPTER 16
AND] [PROJECT] THAT DOES ALL OF THE FOLLOWING:
(a) CONSTRUCTS NEW DWELLING UNITS FOR SALE OR RENT AT A SALES OR
RENTAL PRICE THAT IS AFFORDABLE TO HOUSEHOLDS EARNING NOT MORE THAN ONE
HUNDRED (THENTY] CELFTY] PERCENT OF THE AREA MEDIAN INCOME AS DETERMINED
BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
(b) RECORDS AN AFFORDABILITY COVENANT OR OTHER BINDING RESTRICTION
THAT ENSURES THAT THE SALES OR RENTAL PRICE OF THE DWELLING UNIT IS
AFFORDABLE AS PRESCRIBED IN SUBDIVISION (a) OF THIS PARAGRAPH FOR AT LEAST
TWENTY YEARS FOR WORKFORCE HOUSING RENTAL PROJECTS OR INITIAL SALE PRICE
AFFORDABILITY FOR OWNERSHIP UNITS.
[CFS CERTEFT EB BY TFHE ARIZONA BEPAR THEN T—OF-THOUSTNE-PURSUANT TO
SECTTON-41-3953- ]
[(c) OFFERS ONE HUNDRED PERCENT OF THE NEW DWELLT ITS_IN THE
PROJECT FOR SALE OR RENT AT A SALES OR RENTAL PRICE THAT IS AFFORDABLE TO
HOUSEHOLDS EARNING NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF THE AREA
MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT. J
House Amendments to H.B. 2926
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House Amendments to H.B. 2926
ONO WD FE
Sec. 2. Section 35-726, Arizona Revised Statutes, is amended to
read:
35-726. Approval of general plan before issuing bonds: fee;
exceptions; definition
A. Bonds shall not be issued by a corporation for—tte—purpuse—vf
firratrcttrg_:«TO) «6FINANCE single family dwelling units pursuant to section
35-706, subsection A, paragraph 11 or 12 without approval of a general
plan by its governing body. The corporation shall submit TO THE GOVERNING
BODY a general plan for each respective series of bonds to~?ts—governing
boty. The general plan shall briefly describe:
1. The amount of the proposed bonds.
2. The maximum term of the bonds.
3. The maximum interest rate on the bonds.
4. The need for the bond issue.
5. The terms and conditions for originating or purchasing mortgage
loans or making loans to lenders.
6. The area in which the single family dwelling units to be
financed may be located.
7. The proposed fees, charges and expenditures to be paid for
originators, servicers, trustees, custodians, mortgage administrators and
others.
8. All. insurance requirements with respect to mortgage loans,
mortgaged property, mortgagors, originators, servicers and trustees.
9. The anticipated date of issuance of the bonds.
B. The governing body shall review general plans submitted by
corporations pursuant to subsection A of this section. In reviewing the
plans the governing body shall consider:
1. Whether the amount of the mortgage monies proposed to be made
available is reasonably related to the demand for the mortgage monies.
2. Whether the terms of the general plan are justifiable in the
context of the transaction and in the context of similar transactions.
3. Whether the fees, costs and expenditures as set forth in the
general plan are reasonably related to the services provided.
4. For projects of owner-occupied single family dwelling units to
be occupied by persons of low and moderate income and financed pursuant to
section 35-706, subsection A, paragraphs 11 and 12, whether the proposed
mortgage monies to be made available will fulfill a public purpose by
providing housing for persons of low and moderate income or by encouraging
single family developments in all participating jurisdictions, including
such jurisdictions’ slum or blighted areas as defined in section 36-1471.
C. The governing body shall approve or disapprove the general plan
not later than thirty days after receipt of the plan. If the governing
body does not act on the general plan within thirty days after the date of
receipt, the general plan shall be deemed approved. If a general plan is
approved, the corporation may issue the series of bonds covered by the
general plan with a total principal amount, maximum term and maximum
interest rate mo NOT greater than that which is set forth in the general
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plan. The origination and servicing fees pertaining to mortgage loans to
be financed in accordance with the general plan shall not exceed those
proposed in the general plan. The corporation may vary other items in the
general plan on a finding that the variation is minor and that the
variations will not impair the security for the bonds or substantially
increase the cost of financing the single family dwelling units and the
findings of the corporation shall be conclusive.
D. The governing body may charge any corporation submitting a
general plan for review a fee of not to—exceed-ter—thousanttotters MORE
THAN $10,000 together with reimbursement of its actual costs and expenses
incurred in reviewing the general plan.
E. Except for a corporation THAT IS approved by the Arizona finance
authority or a governing body of a county or a municipality having a
population of more than severr THREE percent of the total state population,
a corporation shall not issue bonds, other than refunding bonds the
proceeds of which are used exclusively to refund a prior bond issue, to
finance a muttrfamity residential rental project, sanitarium, clinic,
medical hotel, rest home, nursing home, skilled nursing facility or life
care facility as prescribed in section 20-1801, unless the department
approves the project. The department, with or without a hearing, shall
review the project and consider at least the following factors:
1. The demand for and feasibility of the project in the area set
forth in the application to the corporation.
2. The terms and conditions of the proposed bonds.
3. The proposed use of bond proceeds.
4. The benefit to the public if the project provides rental housing
for persons of low and moderate income or encourages rental housing in
slum or blighted areas as defined in section 36-1471.
5. If the project consists of a nursing home, or a life care
facility as prescribed in section 20-1801, the benefit to the public of
the project, including the proposed rent, fees and other charges of the
project in relation to the level of services to be offered.
F. Subsection E of this section does not apply to bonds issued to
finance:
1. A sanitarium, clinic, medical hotel, rest home, nursing home,
skilled nursing facility, or life care facility as prescribed in section
20-1801, if the facility is to be owned and operated by this state or a
political subdivision or agency of this state.
2. A nursing home, rest home, skilled nursing facility, life care
facility or senior residential facility providing on-site medical and
support services if the facility is owned and operated by a nonprofit
organization that is exempt from taxation under section 501(c)(3) of the
United States internal revenue code.
G. Except for a corporation that is exempt under subsection E of
this section, the department with or without a hearing shall approve or
disapprove the project not later than thirty days after receipt of the
request for approval. If the project is approved the corporation may
House Amendments to H.B. 2926
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issue the bonds described in the approval request with the total principal
amount, maximum term and maximum interest rate mo NOT greater than as set
forth in the request. The department shall charge each applicant
submitting a project approval request pursuant to this subsection a fee of
not to—exceed—five—thousand—tottars MORE THAN $5,000 together with
reimbursement of its actual costs and expenses incurred in reviewing the
project. The department shall remit the fees to the state treasurer for
deposit in the Arizona department of housing program fund established by
section 41-3957.
H. For the purposes of this section, "department" means the Arizona
department of housing.
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Sec. 3. Section 42-5075, Arizona Revised Statutes, is amended to
read:
42-5075. Prime contracting classification: exemptions:
definitions
A. The prime contracting classification is comprised of the
business of prime contracting and the business of manufactured building
dealer. Sales for resale to another manufactured building dealer are not
subject to tax. Sales for resale do not include sales to a lessor of
manufactured buildings. The sale of a used manufactured building is not
taxable under this chapter. The prime contracting classification does not
include any work or operation performed by a person that is not required
to be licensed by the registrar of contractors pursuant to section
32-1121.
B. The tax base for the prime contracting classification is
sixty-five percent of the gross proceeds of sales or gross income derived
from the business. The following amounts shall be deducted from the gross
proceeds of sales or gross income before computing the tax base:
1. The sales price of land, which shall not exceed the fair market
value.
2. Sales and installation of groundwater measuring devices required
under section 45-604 and groundwater monitoring wells required by law,
including monitoring wells installed for acquiring information for a
permit required by law.
3. The sales price of furniture, furnishings, fixtures, appliances
and attachments that are not incorporated as component parts of or
attached to a manufactured building or the setup site. The sale of such
items may be subject to the taxes imposed by article 1 of this chapter
separately and distinctly from the sale of the manufactured building.
4. The gross proceeds of sales or gross income received from a
contract entered into for the modification of any building, highway, road,
railroad, excavation, manufactured building or other structure, project,
development or improvement located in a military reuse zone for providing
aviation or aerospace services or for a manufacturer, assembler or
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fabricator of aviation or aerospace products within an active military
reuse zone after the zone is initially established or renewed under
section 42-1301. To be eligible to qualify for this deduction, before
beginning work under the contract, the prime contractor must have applied
for a letter of qualification from the department of revenue.
5. The gross proceeds of sales or gross income derived from a
contract to construct a qualified environmental technology manufacturing,
producing or processing facility, as described in section 41-1514.02, and
from subsequent construction and installation contracts that begin within
ten years after the start of initial construction. To qualify for this
deduction, before beginning work under the contract, the prime contractor
must obtain a letter of qualification from the department of revenue.
This paragraph shall apply for ten full consecutive calendar or fiscal
years after the start of initial construction.
6. The gross proceeds of sales or gross income from a contract to
provide for one or more of the following actions, or a contract for site
preparation, constructing, furnishing or installing machinery, equipment
or other tangible personal property, including structures necessary to
protect exempt incorporated materials or installed machinery or equipment,
and tangible personal property incorporated into the project, to perform
one or more of the following actions in response to a release or suspected
release of a hazardous substance, pollutant or contaminant from a facility
to the environment, unless the release was authorized by a permit issued
by a governmental authority:
(a) Actions to monitor, assess and evaluate such a release or a
suspected release.
(b) Excavation, removal and transportation of contaminated soil and
its treatment or disposal.
(c) Treatment of contaminated soil by vapor extraction, chemical or
physical stabilization, soil washing or biological treatment to reduce the
concentration, toxicity or mobility of a contaminant.
(d)} Pumping and treatment or in situ treatment of contaminated
groundwater or surface water to reduce the concentration or toxicity of a
contaminant.
(e) The installation of structures, such as cutoff walls or caps,
to contain contaminants present in groundwater or soil and prevent them
from reaching a location where they could threaten human health or welfare
or the environment.
This paragraph does not include asbestos removal or the construction or
use of ancillary structures such as maintenance sheds, offices or storage
facilities for unattached equipment, pollution control equipment,
facilities or other control items required or to be used by a person to
prevent or control contamination before it reaches the environment.
7. The gross proceeds of sales or gross income that is derived from
a contract for the installation, assembly, repair or maintenance of
machinery, equipment or other tangible personal property that is either
deducted from the tax base of the retail classification under section
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42-5061, subsection B or that is exempt from use tax under section
42-5159, subsection B and that has independent functional utility,
pursuant to the following provisions:
(a) The deduction provided in this paragraph includes the gross
proceeds of sales or gross income derived from all of the following:
(7) Any activity performed on machinery, equipment or other
tangible personal property with independent functional utility.
(ii) Any activity performed on any tangible personal property
relating to machinery, equipment or other tangible personal property with
independent functional utility in furtherance of any of the purposes
provided for under subdivision (d) of this paragraph.
(iii) Any activity that is related to the activities described in
items (i) and (ii) of this subdivision, including inspecting the
installation of or testing the machinery, equipment or other tangible
personal property.
(b) The deduction provided in this paragraph does not include gross
proceeds of sales or gross income from the portion of any contracting
activity that consists of the development of, or modification to, real
property in order to facilitate the installation, assembly, repair,
maintenance or removal of machinery, equipment or other tangible personal
property that is either deducted from the tax base of the retail
classification under section 42-5061, subsection B or exempt from use tax
under section 42-5159, subsection B.
{c) The deduction provided in this paragraph shall be determined
without regard to the size or useful life of the machinery, equipment or
other tangible personal property.
(d) For the purposes of this paragraph, “independent functional
utility" means that the machinery, equipment or other tangible personal
property can independently perform its function without attachment to real
property, other than attachment for any of the following purposes:
(7) Assembling the machinery, equipment or other tangible personal
property.
(ii) Connecting items of machinery, equipment or other tangible
personal property to each other.
(iii) Connecting the machinery, equipment or other’ tangible
personal property, whether as an individual item or as a system of items,
to water, power, gas, communication or other services.
(iv) Stabilizing or protecting the machinery, equipment or other
tangible personal property during operation by bolting, burying or
performing other similar nonpermanent connections to either real property
or real property improvements.
8. The gross proceeds of sales or gross income attributable to the
purchase of machinery, equipment or other tangible personal property that
is exempt from or deductible from transaction privilege and use tax under:
(a) Section 42-5061, subsection A, paragraph 25, 29 or 58.
(b) Section 42-5061, subsection B.
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(c) Section 42-5159, subsection A, paragraph 13, subdivision (a),
(b), (c), (d), Ce), (fF), (3), (kK), (m) or (n) or paragraph 55.
(d) Section 42-5159, subsection B.
9. The gross proceeds of sales or gross income received from a
contract for the construction of an environmentally controlled facility
for the raising of poultry for the production of eggs and the sorting,
cooling and packaging of eggs.
10. The gross proceeds of sales or gross income that is derived
from a contract entered into with a person who is engaged in the
commercial production of livestock, livestock products or agricultural,
horticultural, viticultural or floricultural crops or products in this
state for the modification of any building, highway, road, excavation,
manufactured building or other structure, project, development or
improvement used directly and primarily to prevent, monitor, control or
reduce air, water or land pollution.
11. The gross proceeds of sales or gross income that is derived
from the installation, assembly, repair or maintenance of clean rooms that
are deducted from the tax base of the retail classification pursuant to
section 42-5061, subsection B, paragraph 17.
12. For taxable periods beginning from and after June 30, 2001, the
gross proceeds of sales or gross income derived from a contract entered
into for the construction of a residential apartment housing facility that
qualifies for a federal housing subsidy for low-income persons over
sixty-two years of age and that is owned by a nonprofit charitable
organization that has qualified under section 501(c)(3) of the internal
revenue code.
13. For taxable periods beginning from and after December 31, 1996
and ending before January 1, 2017, the gross proceeds of sales or gross
income derived from a contract to provide and install a solar energy
device. The contractor shall register with the department as a solar
energy contractor. By registering, the contractor acknowledges that it
will make its books and records relating to sales of solar energy devices
available to the department for examination.
14. The gross proceeds of sales or gross income derived from a
contract entered into for the construction of a launch site, as defined in
14 Code of Federal Regulations section 401.5.
15. The gross proceeds of sales or gross income derived from a
contract entered into for the construction of a domestic violence shelter
that is owned and operated by a nonprofit charitable organization that has
qualified under section 501(c)(3) of the internal revenue code.
16. The gross proceeds of sales or gross income derived from
contracts to perform postconstruction treatment of real property for
termite and general pest control, including wood-destroying organisms.
17. The gross proceeds of sales or gross income received from
contracts entered into before July 1, 2006 for constructing a state
university research infrastructure project if the project has been
reviewed by the joint committee on capital review before the university
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enters into the construction contract for the project. For the purposes
of this paragraph, “research infrastructure” has the same meaning
prescribed in section 15-1670.
18. The gross proceeds of sales or gross income received from a
contract for the construction of any building, or other structure,
project, development or improvement owned by a qualified business under
section 41-1516 for harvesting or processing qualifying forest products
removed from qualifying projects as defined in section 41-1516 if actual
construction begins before January 1, 2024. To qualify for this
deduction, the prime contractor must obtain a letter of qualification from
the Arizona commerce authority before beginning work under the contract.
19. Any amount of the gross proceeds of sales or gross income
attributable to development fees that are incurred in relation to a
contract for construction, development or improvement of real property and
that are paid by a prime contractor or subcontractor. For the purposes of
this paragraph:
(a) The attributable amount shal} not exceed the value of the
development fees actually imposed.
(b) The attributable amount is equal to the total amount of
development fees paid by the prime contractor or subcontractor, and the
total development fees credited in exchange for the construction of,
contribution to or dedication of real property for providing public
infrastructure, public safety or other public services necessary to the
development. The real property must be the subject of the development
fees,
(c) “Development fees" means fees imposed to offset capital costs
of providing public infrastructure, public safety or other public services
to a development and authorized pursuant to section 9-463.05, section
11-1102 or title 48 regardiess of the jurisdiction to which the fees are
paid.
20. The gross proceeds of sales or gross income derived from a
contract entered into for the construction of a mixed waste processing
facility that is located on a municipal solid waste landfill and that is
constructed for the purpose of recycling solid waste or _ producing
renewable energy from landfill waste. For the purposes of this paragraph:
(a) "Mixed waste processing facility" means a solid waste facility
that is owned, operated or used for the treatment, processing or disposal
of solid waste, recyclable solid waste, very small quantity generator
waste or household hazardous waste. For the purposes of this subdivision,
"very small quantity generator waste", “household hazardous waste" and
“solid waste facility" have the same meanings prescribed in section
49-701, except that solid waste facility does include a site that stores,
treats or processes paper, glass, wood, cardboard, household textiles,
scrap metal, plastic, vegetative waste, aluminum, steel or _ other
recyclable material.
(b) “Municipal solid waste landfill" has the same meaning
prescribed in section 49-701.
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(c) "Recycling" means collecting, separating, cleansing, treating
and reconstituting recyclable solid waste that would otherwise become
solid waste, but does not include incineration or other similar processes.
(d) “Renewable energy" means usable energy, including electricity,
fuels, gas and heat, produced through the conversion of energy provided by
sunlight, water, wind, geothermal, heat, biomass, biogas, landfill gas or
another nonfossil renewable resource.
21. The gross proceeds of sales or gross income derived from a
contract to install containment structures. For the purposes of this
paragraph, “containment structure” means a structure that prevents,
monitors, controls or reduces noxious or harmful discharge into the
environment.
C. Entitlement to the deduction pursuant to subsection B, paragraph
7 of this section is subject to the following provisions:
1. <A prime contractor may establish entitlement to the deduction by
both:
(a) Marking the invoice for the transaction to indicate that the
gross proceeds of sales or gross income derived from the transaction was
deducted from the base.
(b)} Obtaining a certificate executed by the purchaser indicating
the name and address of the purchaser, the precise nature of the business
of the purchaser, the purpose for which the purchase was made, the
necessary facts to establish the deductibility of the property under
section 42-5061, subsection B, and a certification that the person
executing the certificate is authorized to do so on behalf of the
purchaser, The certificate may be disregarded if the prime contractor has
reason to believe that the information contained in the certificate is not
accurate or complete.
2. A person who does not comply with paragraph 1 of this subsection
may establish entitlement to the deduction by presenting facts necessary
to support the entitlement, but the burden of proof is on that person.
3. The department may prescribe a form for the certificate
described in paragraph 1, subdivision (b) of this subsection. The
department may also adopt rules that describe the transactions with
respect to which a person is not entitled to rely solely on the
information contained in the certificate provided in paragraph 1,
subdivision (b) of this subsection but must instead obtain such additional
information as required in order to be entitled to the deduction.
4. If a prime contractor is entitled to a deduction by complying
with paragraph 1 of this subsection, the department may require the
purchaser who caused the execution of the certificate to establish the
accuracy and completeness of the information required to be contained in
the certificate that would entitie the prime contractor to the deduction.
If the purchaser cannot establish the accuracy and completeness of the
information, the purchaser is liable in an amount equal to any tax,
penalty and interest that the prime contractor would have been required to
pay under article 1 of this chapter if the prime contractor had not
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complied with paragraph 1 of this subsection. Payment of the amount under
this paragraph exempts the purchaser from liability for any tax imposed
under article 4 of this chapter. The amount shall be treated as a
transaction privilege tax to the purchaser and as tax revenues collected
from the prime contractor in order to designate the distribution base for
purposes of section 42-5029.
D. Subcontractors or others who perform modification activities are
not subject to tax if they can demonstrate that the job was within the
control of a prime contractor or contractors or a dealership of
manufactured buildings and that the prime contractor or dealership is
liable for the tax on the gross income, gross proceeds of sales or gross
receipts attributable to the job and from which the subcontractors or
others were paid.
E. Amounts received by a contractor for a project are excluded from
the contractor's gross proceeds of sales or gross income derived from the
business if the person who hired the contractor executes and provides a
certificate to the contractor stating that the person providing the
certificate is a prime contractor and is liable for the tax under article
1 of this chapter. The department shall prescribe the form of the
certificate. If the contractor has reason to believe that the information
contained on the certificate is erroneous or incomplete, the department
may disregard the certificate, If the person who provides the certificate
is not liable for the tax as a prime contractor, that person is
nevertheless deemed to be the prime contractor in lieu of the contractor
and is subject to the tax under this section on the gross receipts or
gross proceeds received by the contractor.
F. Every person engaging or continuing in this state in the
business of prime contracting or dealership of manufactured buildings
shall present to the purchaser of such prime contracting or manufactured
building a written receipt of the gross income or gross proceeds of sales
from such activity and shall separately state the taxes to be paid
pursuant to this section.
G. For the purposes of section 42-5032.01, the department shall
separately account for revenues collected under the prime contracting
classification from any prime contractor engaged in the preparation or
construction of a multipurpose facility, and related infrastructure, that
js owned, operated or leased by the tourism and sports authority pursuant
to title 5, chapter 8.
H. For the purposes of section 42-5032.02, from and after
September 30, 2013, the department shall separately account for revenues
reported and collected under the prime contracting classification from any
prime contractor engaged in the construction of any buildings and
associated improvements that are for the benefit of a manufacturing
facility. For the purposes of this subsection, "associated improvements"
and "manufacturing facility” have the same meanings prescribed in section
42-5032.02.
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IT. For the purposes of section 42-5032.03 and subject to section
48-4238, beginning October 1, 2025 and each month thereafter through
December 31, 2055, the department shall separately account for revenues
reported and collected under the prime contracting classification from any
prime contractor engaged in the construction of any buildings and
associated improvements that are for the benefit of a major league
baseball facility or an adjacent building that is owned by a county
Stadium district pursuant to title 48, chapter 26 and operated by the
county stadium district or the professional baseball franchise
organization that occupies the major league baseball facility or adjacent
building. For the purposes of this subsection, “adjacent building" and
“major league baseball facility" have the same meanings prescribed in
section 48-4201.
J. The gross proceeds of sales or gross income derived from a
contract for lawn maintenance services is not subject to tax under this
section if the contract does not include landscaping activities. Lawn
maintenance service is a service pursuant to section 42-5061, subsection
A, paragraph 1, and includes lawn mowing and edging, weeding, repairing
sprinkler heads or drip irrigation heads, seasonal replacement of flowers,
refreshing gravel, lawn dethatching, seeding winter lawns, leaf and debris
collection and removal, tree or shrub pruning or clipping, garden and
gravel raking and applying pesticides, as defined in section 3-361, and
fertilizer materials, as defined in section 3-262.
K. Except as provided in subsection P of this section, the gross
proceeds of sales or gross income derived from landscaping activities is
subject to tax under this section. Landscaping includes installing lawns,
grading or leveling ground, installing gravel or boulders, planting trees
and other plants, felling trees, removing or mulching tree stumps,
removing other imbedded plants, building irrigation berms, installing
railroad ties and installing underground sprinkler or watering systems.
L. The portion of gross proceeds of sales or gross income
attributable to the actual direct costs of providing architectural or
engineering services that are incorporated in a contract is not subject to
tax under this section. For the purposes of this subsection, “direct
costs" means the portion of the actual costs that are directly expended in
providing architectural or engineering services.
M. Qperating a landfill or a solid waste disposal facility is not
subject to taxation under this section, including filling, compacting and
creating vehicle access to and from cell sites within the landfill.
Constructing roads to a landfill or solid waste disposal facility and
constructing cells within a landfill] or solid waste disposal facility may
be deemed prime contracting under this section.
N. The following apply in determining the taxable situs of sales of
manufactured buildings:
1. For sales in this state where the manufactured building dealer
contracts to deliver the building to a setup site or to perform the setup
in this state, the taxable situs is the setup site.
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2. For sales in this state where the manufactured building dealer
does not contract to deliver the building to a setup site or does not
perform the setup, the taxable situs is the location of the dealership
where the building is delivered to the buyer.
3. For sales in this state where the manufactured building dealer
contracts to deliver the building to a setup site that is outside this
state, the situs is outside this state and the transaction is excluded
from tax.
0. The gross proceeds of sales or gross income attributable to a
written contract for design phase services or professional services,
executed before modification begins and with terms, conditions and pricing
of all of these services separately stated in the contract from those for
construction phase services, is not subject to tax under this section,
regardless of whether the services are provided sequential to or
concurrent with prime contracting activities that are subject to tax under
this section. This subsection does not include the gross proceeds of
sales or gross income attributable to construction phase services. For
the purposes of this subsection:
1. "Construction phase services" means services for the execution
and completion of any modification, including the following:
(a) Administration or supervision of any modification performed on
the project, including team management and coordination, scheduling, cost
controls, submittal process management, field management, safety program,
close-out process and warranty period services.
(b) Administration or supervision of any modification performed
pursuant to a punch list. For the purposes of this subdivision, “punch
list" means minor items of modification work performed after substantial
completion and before final completion of the project.
(c) Administration or supervision of any modification performed
pursuant to change orders. for the purposes of this subdivision, "change
order” means a written instrument issued after execution of a contract for
modification work, providing for all of the following:
(i) The scope of a change in the modification work, contract for
modification work or other contract documents.
(ii) The amount of an adjustment, if any, to the guaranteed maximum
price as set in the contract for modification work. For the purposes of
this item, “guaranteed maximum price” means the amount guaranteed to be
the maximum amount due to a prime contractor for the performance of all
modification work for the project.
(iii) The extent of an adjustment, if any, to the contract time of
performance set forth in the contract.
(d) Administration or supervision of any modification performed
pursuant to change directives. For the purposes of this subdivision,
“change directive" means a written order directing a change in
modification work before agreement on an adjustment of the guaranteed
maximum price or contract time.
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(e) Inspection to determine the dates of substantial completion or
final completion.
(f)} Preparation of any manuals, warranties, as-built drawings,
spares or other items the prime contractor must furnish pursuant to the
contract for modification work. For the purposes of this subdivision,
“as-built drawing" means a drawing that indicates field changes made to
adapt to field conditions, field changes resulting from change orders or
buried and concealed installation of piping, conduit and utility services.
(g) Preparation of status reports after modification work has begun
detailing the progress of work performed, including preparation of any of
the following:
(i) Master schedule updates.
(11) Modification work cash flow projection updates.
(iii) Site reports made on a periodic basis.
(iv) Identification of discrepancies, conflicts or ambiguities in
modification work documents that require resolution.
(v) Identification of any health and safety issues that have arisen
in connection with the modification work.
(h) Preparation of daily logs of modification work, including
documentation of personnel, weather conditions and on-site occurrences.
(i) Preparation of any submittals or shop drawings used by the
prime contractor to illustrate details of the modification work performed.
(j) Administration or supervision of any other activities for which
a prime contractor receives a certificate for payment or certificate for
final payment based on the progress of modification work performed on the
project.
2. "Design phase services" means services for developing and
completing a design for a project that are not construction phase
services, including the following:
(a) Evaluating surveys, reports, test results or any other
information on-site conditions for the project, including physical
characteristics, legal limitations and utility locations for the site.
(b) Evaluating any criteria or programming objectives for the
project to ascertain requirements for the project, such as_ physical
requirements affecting cost or projected utilization of the project.
(c) Preparing drawings and specifications for architectural program
documents, schematic design documents, design development documents,
modification work documents or documents that identify the scope of or
materials for the project.
(d) Preparing an initial schedule for the project, excluding the
preparation of updates to the master schedule after modification work has
begun.
(e) Preparing preliminary estimates of costs of modification work
before completion of the final design of the project, including an
estimate or schedule of values for any of the following:
(i) Labor, materials, machinery and equipment, tools, water, heat,
utilities, transportation and other facilities and services used in the
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House Amendments to H.B. 2926
Onan PW NH =
execution and completion of modification work, regardless of whether they
are temporary or permanent or whether they are incorporated in the
modifications.
(ii) The cost of labor and materials to be furnished by the owner
of the real property.
(iii) The cost of any equipment of the owner of the real property
to be assigned by the owner to the prime contractor.
(iv) The cost of any labor for installation of equipment separately
provided by the owner of the real property that has been designed,
specified, selected or specifically provided for in any design document
for the project.
(v) Any fee paid by the owner of the real property to the prime
contractor pursuant to the contract for modification work.
(vi) Any bond and insurance premiums.
(vii) Any applicable taxes.
(viii) Any contingency fees for the prime contractor that may be
used before final completion of the project.
(f) Reviewing and evaluating cost estimates and project documents
to prepare recommendations on site use, site improvements, selection of
materials, building systems and equipment, modification feasibility,
availability of materials and labor, local modification activity as
related to schedules and time requirements for modification work.
(g) Preparing the plan and procedures for selection of
subcontractors, including any prequalification of subcontractor
candidates.
3. "Professional services” means architect services, engineer
services, geologist services, land surveying services or landscape
architect services that are within the scope of those services as provided
in title 32, chapter 1 and for which gross proceeds of sales or gross
income has not otherwise been deducted under subsection L of this section.
P. The gross proceeds of sales or gross income derived from a
contract with the owner of real property or improvements to real property
for the maintenance, repair, replacement or alteration of existing
property is not subject to tax under this section if the contract does not
include modification activities, except as specified in this subsection.
The gross proceeds of sales or gross income derived from a de minimis
amount of modification activity does not subject the contract or any part
of the contract to tax under this section. For the purposes of this
subsection:
1. Tangible personal property that is incorporated or fabricated
into a project described in this subsection may be subject to the amount
prescribed in section 42-5008.01.
2. Each contract is independent of any other contract, except that
any change order that directly relates to the scope of work of the
original contract shall be treated the same as the original contract under
this chapter, regardless of the amount of modification activities included
in the change order. If a change order does not directly relate to the
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House Amendments to H.B. 2926
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scope of work of the original contract, the change order shall be treated
as a new contract, with the tax treatment of any subsequent change order
to follow the tax treatment of the contract to which the scope of work of
the subsequent change order directly relates.
Q. Notwithstanding subsection P of this section, a contract that
primarily involves surface or subsurface improvements to land and that is
subject to title 28, chapter 19, 20 or 22 or title 34, chapter 2 or 6 is
taxable under this section, even if the contract also includes vertical
improvements. Agencies that are subject to procurement processes under
those provisions shall include in the request for proposals a notice to
bidders when those projects are subject to this section. This subsection
does not apply to contracts with:
1. Community facilities districts; fire districts, county
television improvement districts, community park maintenance districts,
cotton pest control districts, hospital districts, pest abatement
districts, health service districts, agricultural improvement districts,
county free library districts, county jail districts, county stadium
districts, special health care districts, public. health’ services
districts, theme park districts or revitalization districts.
2. Any special taxing district not specified in paragraph 1 of this
subsection if the district does not substantially engage in the
modification, maintenance, repair, replacement or alteration of surface or
subsurface improvements to land.
R. THE GROSS PROCEEDS OF SALES OR GROSS INCOME ATTRIBUTABLE TO THE
DEVELOPMENT OF WORKFORCE HOUSING PROJECTS [AS DEFINED IN SECTION 9-461.21]
IF THE WORKFORCE HOUSING [8UFEBER—AS—BEFHTER—FHt—SECTTON—9-46t-24t]
[PROJECT] IS NOT SUBJECT TO [THE STATE'S PORTION OF THE PRIME CONTRACTING
SALES] TAX UNDER THIS SECTION, REGARDLESS OF WHETHER THE SERVICES ARE
PROVIDED SEQUENTIAL TO OR CONCURRENT WITH PRIME CONTRACTING ACTIVITIES
THAT ARE SUBJECT TO TAX UNDER THIS SECTION.
Rr S. Notwithstanding subsection S- T, paragraph 10 of this
section, a person owning real property who enters into a contract for sale
of the real property, who is responsible to the new owner of the property
for modifications made to the property in the period subsequent to the
transfer of title and who receives a consideration for the modifications
is considered a prime contractor solely for purposes of taxing the gross
proceeds of sale or gross income received for the modifications made
subsequent to the transfer of title. The original owner's gross proceeds
of sale or gross income received for the modifications shall be determined
according to the following methodology:
1. If any part of the contract for sale of the property specifies
amounts to be paid to the original owner for the modifications to be made
in the period subsequent to the transfer of title, the amounts are
included in the original owner's gross proceeds of sale or gross income
under this section. Proceeds from the sale of the property that are
received after transfer of title and that are unrelated to the
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House Amendments to H.B. 2926
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modifications made subsequent to the transfer of title are not considered
gross proceeds of sale or gross income from the modifications.
2. if the original owner enters into an agreement separate from the
contract for sale of the real property providing for amounts to be paid to
the original owner for the modifications to be made in the period
subsequent to the transfer of title to the property, the amounts are
included in the original owner's gross proceeds of sale or gross income
received for the modifications made subsequent to the transfer of title.
3. If the original owner is responsible to the new owner for
modifications made to the property in the period subsequent to the
transfer of title and derives any gross proceeds of sale or gross income
from the project subsequent to the transfer of title other than a delayed
disbursement from escrow unrelated to the modifications, it is presumed
that the amounts are received for the modifications made subsequent to the
transfer of title unless the contrary is established by the owner through
its books, records and papers kept in the regular course of business.
4. The tax base of the original owner is computed in the same
manner as a prime contractor under this section.
Sv dT. For the purposes of this section:
1. "Alteration" means an activity or action that causes a direct
physical change to existing property. For the purposes of this paragraph:
(a) For existing property that is properly classified as class two
property under section 42-12002, paragraph 1, subdivision (c) or paragraph
2, subdivision (c) and that is used for residential purposes, class three
property under section 42-12003 or class four property under section
42-12004, this paragraph does not apply if the contract amount is more
than twenty-five percent of the most recent full cash value established
under chapter 13, article 2 of this title as of the date of any bid for
the work or the date of the contract, whichever value is higher.
(b) For all existing property other than existing property
described in subdivision (a) of this paragraph, this paragraph does not
apply if the contract amount is more than $750,000.
(c) Project elements may not be artificially separated from a
contract to cause a project to qualify as an alteration. The department
has the burden of proof that project elements have been artificially
separated from a contract.
(d) If a project for which the owner and the person performing the
work reasonably believed, at the inception of the contract, would be
treated as an alteration under this paragraph and, on completion of the
project, the project exceeded the applicable threshold described in either
subdivision (a) or (b) of this paragraph by not more than twenty-five
percent of the applicable threshold for any reason, the work performed
under the contract qualifies as an alteration.
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House Amendments to H.B. 2926
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(e) A change order that directly relates to the scope of work of
the original contract shall be treated as part of the original contract,
and the contract amount shal] include any amount attributable to a change
order that directly relates to the scope of work of the original contract.
(f) Alteration does not include maintenance, repair or replacement.
2. "Contracting" means engaging in business as a contractor.
3. "Contractor" is synonymous with the term "builder" and means any
person or organization that undertakes to or offers to undertake to, or
purports to have the capacity to undertake to, or submits a bid to, or
does personally or by or through others, modify any building, highway,
road, railroad, excavation, manufactured pbuilding or other structure,
project, development or improvement, or to do any part of such a project,
including the erection of scaffolding or other structure or works in
connection with such a project, and includes subcontractors and specialty
contractors. For all purposes of taxation or deduction, this definition
shall govern without regard to whether or not such a contractor is acting
in fulfillment of a contract.
4. “Manufactured building" means a manufactured home, mobile home
or factory-built building, as defined in section 41-4001.
5. “Manufactured building dealer" means a dealer who either:
(a) Is licensed pursuant to title 41, chapter 37, article 4 and who
sells manufactured buildings to the final consumer.
(b) Supervises, performs or coordinates the excavation = and
completion of site improvements or the setup of a manufactured building,
including the contracting, if any, with any subcontractor or specialty
contractor for the completion of the contract.
6. “Modification” means construction, grading and leveling ground,
wreckage or demolition. Modification does not include:
(a) Any project described in subsection P of this section.
(b) Any wreckage or demolition of existing property, or any other
activity that is a necessary component of a project described in
subsection P of this section.
(c) Any mobilization or demobilization related to a _ project
described in subsection P of this section, such as the erection or removal
of temporary facilities to be used by those persons working on the
project.
7. “Modify" means to make a modification or cause a modification to
be made.
8. “Owner” means the person that holds title to the real property
or improvements to real property that is the subject of the work, as well
as an agent of the title holder and any person with the authority to
perform or authorize work on the real property or improvements, including
a tenant and a property manager. For the purposes of subsection P of this
section, a person who is hired by a general contractor that is hired by an
owner, or a subcontractor of a general contractor that is hired by an
owner, is considered to be hired by the owner.
~23-
House Amendments to H.B. 2926
OONODTHRWNH HE
9. “Prime contracting" means engaging in business as a_ prime
contractor.
10. "Prime contractor" means a contractor who supervises, performs
or coordinates the modification of any building, highway, road, railroad,
excavation, manufactured building or other structure, project, development
or improvement, including the contracting, if any, with any subcontractors
or specialty contractors and who is responsible for the completion of the
contract. Except as provided in subsections E and R~ S of this section, a
person who owns real property, who engages one or more contractors to
modify that real property and who does not itself modify that real
property is not a prime contractor within the meaning of this paragraph
regardless of the existence of a contract for sale or the subsequent sale
of that real property.
11. "Replacement" means the removal from service of one component
or system of existing property or tangible personal property installed in
existing property, including machinery or equipment, and the installation
of a new component or system or new tangible personal property, including
machinery or equipment, that provides the same, a similar or an upgraded
design or functionality, regardless of the contract amount and regardless
of whether the existing component or system or existing tangible personal
property is physically removed from the existing property.
12. "Sale of a used manufactured building" does not include a lease
of a used manufactured building.
Sec. 4. Legislative findings
A. The legislature finds that:
1. Arizona faces an acute shortage of attainable and workforce
housing across income levels.
2. The cost and timing of housing production are significantly
affected by state and local fees, taxation and approval delays.
3. Providing targeted tax relief and streamlined processes for
builders of affordable housing will directly increase the number of units
produced and lower costs for Arizona families.
B. The legislature intends to incentivize the production of
affordable housing by:
1. Exempting qualifying affordable housing builders from the
states" prime contracting sales tax.
2. Allowing qualified builders to begin vertical construction and
home sales while horizontal infrastructure work continues under approved
plans.
3. Requiring cities and towns to implement expedited permitting for
affordable housing projects and creating a pathway for more contractors in
rural Arizona.
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House Amendments to H.B. 2926
Sec. 5. Effective date
(Secttors] [Section] 9-461.21 [amt—32-++30], Arizona Revised
Statutes, as added by this act, and sections 35-726[(7—44+-3953] and
42-5075, Arizona Revised Statutes, as amended by this act, are effective
twelve months from and after the general effective date.
Sec. 6. Short title
This act may be cited as the "Workforce Housing Incentive Act".
SOO WDM FE
8 Enroll and engross to conform
9 Amend title to conform
CHRIS LOPEZ
2926LOPEZ.docx
02/10/2026
4:18 PM
C2 (LAT
130RANQFM
-25-
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2926
DATE February 12, 2026 MOTION: PA
PASS AYE/ NAY PRESENT | ABSENT
Biasiucci Vv /
Blackman ;
Hernandez C V/ ;
Peshlakai naVA
Volk J /
Lopez, Vice-Chairman Fi
Martinez, Chairman WA
—
C ‘
APPROVED: a
TERESA MARTINEZ, Chairma
CHRIS LOPEZ, Vice-Chairmah
ATTACHMENT. |
ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2113: public service corporation; rates; intervenor
Sponsor: Representative Martinez, LD 16
Committee on Rural Economic Development
Overview
Instructs the Director of the Residential Utility Consumer Office (Director) to intervene in a
public service corporation rate case if the proposed rate increase to residential customers is
100% or more.
History
The Residential Utility Consumer Office (RUCQ) represents the interests of residential
utility consumers in regulatory proceedings involving public service corporations before the
Arizona Corporation Commission (ACC). The Director may prepare and present briefs,
arguments, proposed rates or orders and intervene or appear on behalf of residential utility
consumers before hearing officers and the ACC as a party in interest and also participate as
a party in interest in proceedings relating to rate making or rate design and involving public
service corporations, as long as the proceedings do not involve a member-owned nonprofit
cooperative corporation (A.R.S. § 40-464).
Provisions
1, Requires the Director to intervene in a public service corporation rate case if the impact
of the public service corporation's proposed rate increase to residential customers is 100%
or more. (Sec. 1)
2. Makes technical changes. (Sec. 1)
OD Prop 105 (45 votes) OC Prop 108 (40 votes) O Emergency (40 votes) ( Fiscal Note
Initials PB HB 2113
2/6/2026 Page 1 Rural Economic Development
Attachment_jo_
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2113
DATE February 12, 2026 MOTION: »D p
PASS AYE, NAY PRESENT | ABSENT
Biasiucci WA ,
Blackman wa
Hernandez C S/S ;
Peshlakai ~~ y,
Volk yy. ww
Lopez, Vice-Chairman V4
Martinez, Chairman Wa
5 | | O
|
——) Vroge) Qoham
APPROVED: Sa COMMITTEE SECRETARY
__- TERESA MARTINEZ, Chairman...
CHRIS LOPEZ, Vice-Chairman
ATTACHMENT. | |
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ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2824: capital improvement; financing program
Sponsor: Representative Lopez, LD 16
Committee on Rural Economic Development
Overview
Enables a governing body to adopt a resolution or ordinance to establish a C-Pace Program
(Program) which provides commercial property assessed capital expenditure financing for
eligible improvements.
History
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and
promote the public health, safety and general welfare and outlines zoning guidelines and
requirements. Municipalities must adopt, by ordinance, a citizen review process that applies
to all rezoning and specific plan applications that require a public hearing (A.R.S. §§ 9-462.01
and 9-462.08).
Provisions
C-Pace Program Establishment
1. Authorizes a local government to allow the construction, installation or modification of
critical capital expenditure improvements on qualifying property by establishing a C-Pace
Program. (Sec. 1, 2)
2. Prohibits a local government from entering into a financing agreement for the direct
financing of a qualifying improvement. (Sec. 1, 2)
3. Grants counties the ability to levy and collect non-ad valorem assessments, in addition to
taxes. (Sec. 2)
4, Allows a governing body to adopt a resolution or ordinance to establish a Program. (Sec.
3)
5. Requires a governing body to hold a public hearing to consider a Program's establishment,
prior to adopting a resolution or ordinance that establishes a Program. (Sec. 3)
6. Outlines the contents that are required to be included in a resolution or ordinance that
establishes a Program. (Sec. 3)
7. Allows a Program to be amended in accordance with the resolution or ordinance that
established the Program. (Sec. 3)
Intergovernmental Agreements
8. Stipulates that an authorized local government may to enter into an intergovernmental
agreement with another authorized local government to administer a program (Sec. 3)
1 Prop 105 (45 votes) C1] Prop 108 (40 votes) © Emergency (40 votes) ( Fiscal Note
Initials HB 2824
2/9/2026 Page 1 Rural Economic Development
Attachment 3
10.
11.
12.
13.
14,
15.
16.
17,
18.
19.
20,
21.
22.
23.
Exempts any intergovernmental agreement entered into by an authorized local
government from the Arizona Procurement Code. (Sec. 3)
Special Assessment Agreements
Authorizes local program authorities to enter special assessment agreements with
property owners to secure special assessment financing provided the property owner
submits a project application to the program administrator on a form prescribed by the
program guidebook. (Sec. 3)
Outlines the contents of the project application. (Sec. 3)
Requires the local program authority receive consent and certification from specified
parties prior to entering a special assessment agreement. (Sec. 3)
Directs capital providers to provide and directly disburse special assessment financing to
fund qualifying improvements subject to a financing agreement. (Sec. 3)
Requires a financing agreement to specify that the local government is not:
a. liable for the debt of the property owner;
b. a third-party obligor; and
c. pledging or lending credit to the property owner or the capital provider. (Sec. 3)
Specifies that a capital provider does not have any right or cause of action against the
local government for nonpayment of the special assessment financing and to look solely
to the property owner for recourse. (Sec. 3)
Establishes costs that may be included into the special assessment financing principal
amount. (Sec. 3)
Allows a financing agreement to authorize the property owner to directly purchase
through lease, power purchase agreement or other service contract, the related equipment
and materials for installing or modifying a qualified improvement or contract. (Sec. 3)
Caps the program administrative fees that a local program authority or program
administrator may charge a property owner at the lesser of:
a. 1% of the principal amount of the special assessment financing; or
b. $50,000. (Sec. 3)
Imposition of Special Assessment
Instructs the local program authority, upon entering into a special assessment
agreement, to record a notice of special assessment lien on the subject property in the
recorder's office of the county in which the property is located. (Sec. 3)
Outlines specified information that the recording of the notice of special assessment lien
is required to include. (Sec. 3)
Establishes that a special assessment lien is effective from the date that the special
assessment is imposed until the date it is paid in full. (See. 3)
Grants special assessment liens priority superior to all liens, claims and titles, excluding
general property taxes and prior special assessments. (Sec. 3)
Maintains that a special assessment lien is bound to the property and not its current
owner, and that if the special assessment lien, any lien for taxes or other assessments or
Initials HB 2824
2/9/2026 Page 2 Rural Economic Development
24,
25,
26.
27.
28.
29.
30.
31,
32.
33.
34.
35.
the property is foreclosed, the portion of the special assessment lien that has not become
due, does not suddenly become due upon foreclosure. (Sec. 3)
Requires the local program authority to execute and record a notice of assignment of
special assessment lien from the local government to the applicable capital provider on
the subject property, at the same time the special assessment lien is recorded. (Sec. 3)
Outlines the information required to be provided in the notice of assignment of special
assessment lien. (Sec. 3)
Grants the applicable capital provider the possession of the same delegable powers and
rights at law or in equity as the local government, but only regarding:
a. the precedence and priority of the special assessment lien;
b. the proceeds of special assessment installments; and
c. the accrual of penalties and fees related to the special assessment. (Sec. 3)
Asserts that the assignee of a special assessment enforced by the local government, has
the right to enforce the special assessment and special assessment lien regarding
foreclosure. (Sec. 3)
Instructs the applicable capital provider to notify the local program authority when the
underlying special assessment financing is complete to allow the local program authority
to record a release of the special assessment lien by the local government. (Sec. 3)
Collection of Special Assessment Installments
Requires special assessments to be collected in installments pursuant to the terms of the
special assessment agreement and outlines the manner that installments are to be billed
and collected. (Sec. 3)
Authorizes a local program authority that is billing and collecting special assessment
installments, to collect a delinquent special assessment installment, in the event of a
nonpayment and within one year after the installment became delinquent. (Sec. 3)
Authorizes the capital provider to initiate a suit for foreclosure against the property
owner following one year after the date of delinquency of an unpaid special assessment
installment, if the local program authority fails to collect the delinquent installment or
has executed a notice of delegation of authority to the capital provider. (Sec. 3)
Delinquent Installments
Directs the local program authority to prepare, within 20 days after the date of
delinquency, a list containing specified information of the special assessments on which
any installment is delinquent. (Sec. 3)
Requires the local program authority to notify the property owner, unless all
delinquencies due are paid, 10 days prior to the public auction sale of the qualifying
property on which the special assessment is a lien. (Sec. 3)
Prohibits the time of the sale from being less than 10 days after the notice is mailed to
the property owner and requires the public auction to take place in front of the office of
the local program authority or at a place otherwise designated in the notice. (Sec. 3)
Permits the delinquent special assessment installment and associated penalties of any
qualifying property to be paid for by any party that has an interest in the qualifying
property, prior to its sale in auction. (Sec. 3)
Initials HB 2824
2/9/2026 Page 3 Rural Economic Development
36.
37.
38.
39.
40.
41,
42.
43.
44.
45,
46.
47.
48,
Requires the local program authority to note in the record the date, names, and the
amount associated with the qualifying property's sale that took place prior to its auction.
(Sec. 8)
Notice to Lien Claimants
Instructs local program authorities to obtain a record search showing the names and
addresses of all lien claimants on, and other persons with interest in, all properties or
parcels with delinquent special assessment installments, before the date of the sale. (Sec.
3)
Allows the cost of a record search to be added to the special assessment and deems it to
be a portion of the delinquent special assessment installment. (Sec. 3)
Provides the information that must be included in the notice of sale that is required to be
mailed, at least 10 days before the sale date, to the property owner and to each of the lien
claimants and other persons with an interest as shown by the record search. (Sec. 3)
Prohibits a final sale from being held unless the local program authority notifies all lien
claimants and other persons with an interest found in the records search by mail before
the sale date. (Sec. 3)
Sale Procedure
Directs the local program authority to begin the sale of the delinquent special assessment
installment of the advertised property no sooner than 10 a.m. on the date set for the sale
and allows the authority to postpone or continue the sale from day to day until all the
property is sold. (Sec. 3)
Requires each property to be sold separately if they are separately assessed. (Sec. 3)
Provides a sale procedure for qualifying properties for sale that do not have a purchaser.
(Sec. 3)
Mandates the local program authority to remit all proceeds of a sale of the qualifying
property or purchase of a deed related to a delinquent special assessment installment to
the applicable capital provider, except for the actual and reasonable costs incurred to
enforce a delinquent special installment. (Sec. 3)
Requires the local program authority to duplicate the certificate of sale after making the
sale, with specified descriptions and information of the sale of the qualifying property for
a delinquent special assessment installment, to file one copy within the authority's office
while delivering the other to the purchaser. (Sec. 3)
Transfers ownership of the lien of the delinquent special assessment installment to the
purchaser when the local program authority files the copy of the certificate and is only
divested by a redemption of the qualifying property. (Sec. 3)
Prohibits the transfer of ownership and condition for divestment from extinguishing or
changing the lien for the remaining special assessment installments. (Sec. 3)
Redemption
Permits redemption to be made by any party with an interest in the qualifying property
prior to the execution and delivery of a deed for the property by paying to the local
program authority the sale price of the qualifying property with an additional:
a, 5% if paid within 3 months from the date of the sale;
Initials HB 2824
2/9/2026 Page 4 Rural Economic Development
b. 10% if paid within 6 months;
ce. 12% if paid within 9 months;
d. 15% if paid within 12 months; or
e. 20% if paid at any time after 12 months from the date of the sale. (Sec. 3)
49, Directs the local program authority to note the redemption on their filed duplicate
certificate and deposit the amount paid with the capital provider, who is required to credit
the purchaser named in the certificate of sale with the amount paid and pay the sum to
the purchaser on the surrender of the certificate of sale. (Sec. 3)
50. Instructs the local program authority to execute a deed to the qualifying property sold to
the purchaser after 12 months from the date of sale, which is to recite the matters
contained in the certificate of sale and that a person has not redeemed the property and
can only receive $1 in fees to make the deed. (Sec. 3)
51. Lists the required process for notifying the appropriate parties that the qualifying
property has been sold for a delinquent special assessment installment, and directs the
purchaser begin the process at least 30 days before applying for a deed. (Sec. 3)
52. Requires the applicant for the deed to file an affidavit with the local program authority
showing that notice of the application has been given, and that if the mailed notice was
returned to the sender, that due diligence was used to find the owner. (Sec. 3)
53. Specifies that a $10 payment for the service of notice and creation of the affidavit is
required to be paid by the person making the redemption to the purchaser if redemption
is made after the affidavit is filed and more than a year past the sale date. (Sec. 3)
54. Qualifies the deed of the local program authority as prima facie evidence that all
proceedings prior to the issuance of the deed and the information provided within the
deed is factual. (Sec. 3)
55. Outlines the information required to be conveyed to the purchaser through the deed of
the local program authority. (Sec. 3)
56. Asserts that an affidavit of the person required to mail, publish or post notices of sale of
a delinquent installment, is prima facie evidence of the mailing, and lists the information
required to be included in the affidavit. (Sec. 3)
57. Prohibits a person's failure to receive a mailed notice from affecting the validity of any
notice that was mailed, and the failure to mail a notice to one or more person from
affecting the validity of notices already mailed. (Sec. 3)
58. Makes the costs of mailing and publishing a valid incidental expense. (Sec. 3)
59. Specifies a notice served on:
a. a married person is deemed a notice on the person's spouse;
b. Guardians and administrators constitute notice to heirs and wards; and
c. An attorney-in-fact constitutes notice to the attorney's principal. (Sec. 3)
Miscellaneous
60. Defines pertinent terms. (Sec. 1, 2, 3)
Initials HB 2824
2/9/2026 Page 5 Rural Economic Development
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2824
DATE February 12, 2026 MOTION: \ ) \
PASS AYE NAY PRESENT | ABSENT
Biasiucci L
Blackman
Hernandez C
Peshlakai
Volk
Lopez, Vice-Chairman
Martinez, Chairman
ANNAN
OV
aaa
a
APPROVED:
sous
Tol 2
“COMMITTEE SECRETARY
ae
a
K a a 7 7
TERESA MARTINEZ, Chairman
CHRIS LOPEZ, Vice-Chairman
ATTACHMENT. | |
ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2939: qualified facilities; tax credit; amount
Sponsor: Representative Martinez, LD 16
Committee on Rural Economic Development
Overview
Includes an additional amount of the Qualified Facility tax credit (QFTC) that a taxpayer
may receive for investments in a qualified facility.
History
The QFTC promotes the location and expansion of headquarters or manufacturing facilities,
including manufacturing-related research and development in Arizona. The program
provides a refundable income tax credit to taxpayers who are expanding or locating a
Qualified Facility in Arizona.
To qualify for the QFTC, a taxpayer must invest in a new qualified facility in Arizona or
expand an existing qualified facility in Arizona and produce new full-time employment
positions where the job duties are performed at the location of the qualifying investment.
Only capital investments in a qualified facility that are made within 36 months before
submitting an application for preapproval are included in the computation of the Credit.
The QFTC must be preapproved by the ACA and is equal to 10% of the lesser of: 1) the amount
the applicant has projected in total qualifying investment in the qualified facility; or 2) either
$200,000 for each net new full-time employment position projected by the applicant that has
job duties associated with a qualified facility, if the total qualifying investment is less than
$2,000,000,000; or $300,000 for each net new full-time employment position projected by the
applicant that has job duties associated with a qualified facility, if the total qualifying
investment is $2,000,000,000 or more. The QFTC must be claimed in five equal annual
installments in five consecutive taxable years.
Statute defines rural location as a location that is within the boundaries of tribal lands or a
city or town with a population of less than 50,000 persons or a county with a population of
less than 800,000 persons (A.R.S §§ 41-1512, 48-1083.08, 43-1164.04),
Provisions
1. Adds an additional QFTC amount that a taxpayer can qualify for based on the amount of
the total qualifying investment, to be 10% of $250,000 for each net new full-time
employment position projected by the applicant that has job duties associated with a
qualified facility that is in a rural location, if the total qualifying investment is
$2,000,000,000 or more. (Sec. 1, 2, 3)
2. Applies the new credit amount to taxable years beginning January 1, 2027. (Sec. 4)
1 Prop 105 (45 votes) O Prop 108 (40 votes) O Emergency (40 votes) CI Fiscal Note
Initials PB HB 2939
2/6/2026 Page 1 Rural Economic Development
Attachment_{5
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2939
DATE February 12, 2026 MOTION: D ?
PASS AYE /| NAY PRESENT | ABSENT
Biasiucci Vv,
Blackman v y,
Hernandez C WA ,
Peshlakai WA y
Volk VF
Lopez, Vice-Chairman VS x
Martinez, Chairman WA _
la
APPROVED:
COMMITTEE SECRETARY
2ESA MARTINEZ, |
CHRIS LOPEZ, Vice-Chairma
ATTACHMENT__/ (C
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