Arizona House of Representatives Committee on Rural Economic Development Report of Regular Meeting for February 5, 2026

Summary

The report of the regular meeting of the Arizona House of Representatives Committee on Rural Economic Development, Fifty-seventh Legislature, Second Regular Session, held Thursday, February 5, 2026. The committee convened at 9:03 A.M. and adjourned at 10:00 A.M., with Representative Martinez as Chairman and Representative Lopez as Vice-Chairman. The report records HB2804 (rural affordable housing; tax credits) passed 7-0-0-0, HB2388 (appropriation; commerce authority; nuclear; study) passed 6-1-0-0, and HB2926 held. Attachments include the agenda, a Request to Speak report listing registrants and comments on HB2388, a bill summary stating HB2388 appropriates an unspecified amount in FY 2027 to the Arizona Commerce Authority to study the economic benefits of small modular reactors and data centers, and a roll call vote sheet for HB 2388.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

COMMITTEE ON RURAL ECONOMIC DEVELOPMENT

Report of Regular Meeting
Thursday, February 5, 2026
House Hearing Room 4 -- 9:00 A.M.

CHIEF CLERKS OFF
Convened 9:03 A.M. ce

Recessed FEB 09 2026
Reconvened
Adjourned 10:00 A.M.

Members Present Members Not Present
Representative Blackman Representative Biasiucci
Representative Hernandez

Representative Peshlakai

Representative Volk

Representative Lopez, Vice-Chairman

Representative Martinez, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Committee Action
Bill Action Vote Attachments
HB2804 DP 7-0-0-0 45,6
HB2388 DP 6-1-0-0 7,8

HB2926 HELD [enti Chaban)

Veronica Graham, Committee Secretary
February 9, 2026

(Original attachments on file in the Office of the Chief Clerk; video archives available at http:/Avww.azleg.gov)

COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
February 5, 2026
REVISED - 2/02/26 REVISED - 2/02/26 REVISED - 2/02/26
Convened 4:05 4M

ARIZONA HOUSE OF REPRESENTATIVES ad\ourn ed }0:00 4M
Fifty-seventh Legislature - Second Regular Session

REGULAR MEETING AGENDA
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT

DATE Thursday, February 5, 2026 ROOM HHR4 TIME 9:00 A.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg.gov/videoplayer/?clientID=6361 162879&eventID=202602 1026

Members:
Representative Biasineci Representative Hernandez C Representative Lopez, Vice-Chairman
Representative Bliss Representative Peshlakai Representative Martinez, Chairman
Representative Blackman Representative Volk
Bills Short Title Strike Everything Title
HB2388 DP appropriation; commerce authority; nuclear; study
——— (Martinez)

b- |-()-CkED, APPROP, RULES

HB2804 p { rural affordable housing; tax credits
(Martinez)

q. 0 -() . (ep, APPROP, RULES
HB2926 \ | | housing; contractors; bonds; taxes
. (Bliss)

RED, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

VG
RA
ve
GH252026
02/02/2026

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 1 of 1
Attachment_2 _
Information Registered on the Request to Speak System

House Rural Economic Development (2/5/2026)

HB2388, appropriation; commerce authority; nuclear; study

Testified in support:
Alexis Monet Bacs, THE LIBRE INITIATIVE ARIZONA

Support:
Russell Smoldon, AZ MUNICIPAL POWER USERS ASSN

Neutral:
Mary Ganapol, representing self; Daniel Stormont, representing self

Oppose:

Joan Murphy, representing self; Glenn Sollers, representing self; Jodi Paulsen, representing self; Dave Long,
representing self; Nick Collins, representing self; Judith Simons, representing self; Sandra Kravetz, representing
self; Rebecca Smith Gross, representing self; Frank Machek, representing self; Maria Salvucci, representing self;
Kevin Brown, representing self; Beverly Janowitz-Price, representing self; Jeanne Casteen, representing self; Laurie
Stoff, representing self; Alisa McMahon, representing self; Michael Fiflis, representing self; Christina Mollica,
representing self; Dianne Post, representing self; Carol Maas, representing self; Sherrilynn James, representing
self; jacqueline Johnson, representing self; Judy Whitehouse, representing self; Bettina Bickel, representing self;
Katherine Doman Sheydayi, representing self; Elizabeth Schauer, representing self; Gail Kamaras, representing self;
Charlie Silver, representing self; Barbara Hutchinson, representing self; Becky Sayler, representing self; Susan
Morris, representing self; Brent Gibbs, representing self; Brenda Nelson, representing self; Christine Keitges,
representing self; Sharon Lee, representing self; Linda Edwards, representing self; Kathy Fraser, representing self;
Jeri Dow, representing self; David Staricha, representing self; Janet Senf, representing self; Kathy Pyner,
representing self; Jocelyn Dustan, representing self; Penny Boone, representing self; Ralph Meredith, representing
self; Gayle Meredith, representing self; Valerie Policastro Edie, representing self; Margaret Adams , representing
self; Amy Etzkorn, representing self; Mariette Francis, representing self; Martha O'Connor, representing self;
Kathleen Dubbs, representing self; Rebecca Scotney, representing self; Katherine Warren, representing self; Mary-
Jeanne Fincher, representing self; Matthew Nelson, representing self; Francesca Pardes, representing self; William
S. James, representing self; Jo Ann Caruthers, representing self; Edna Weigel, representing self; Steve Gorman-
Hackstadt, representing self; Carolyn Watson, representing self; Rebecca Haynes, representing self; Mary Nelson,
representing self; Susan Phelps, representing self; Kristen Abrahamson, representing self; Bart James, representing
self; Bonnie Oakes, representing self; Cassandra Morano, representing self; Melinda lyer, representing self;
Kathryn Anderson, representing self; Charlotte Lis, representing self; Carol Fiore, representing self; William Yohey,
representing self; Sherry Massie, representing self; Susan McMillan, representing self; Barbara Larson,
representing self; Carol Garnett, representing self; Amy Pedotto, representing self; Jennifer Dawson, representing
self; Chris Ahearn, representing self; Patricia Edelen, representing self; Linda Block, representing self; Paula Van
Derven, representing self; Jean Meconi, representing self; Lynn DeMuth, representing self; Rivko Knox,
representing self; Pat Jayson, representing self; Roger Blain, representing self; Jacqueline deSa, representing self;
Libby Stortz, representing self; Alice Christianson, representing self; Theresa Paszktewicz, representing self;

Attachment A
Frederick James, representing self; Christopher Cerrato, representing self; Salie Travis, representing self; Eden
Winget, representing self; Devon Sloan, representing self; Pamela Chittenden, representing self; Marilyn Murov,
representing self; STACEY NORDWALL, representing self; Cheryl Benefield, representing self; ALICE BUCK,
representing self; Gina Gral, representing self; Karen Brown, representing self; Suzanne Zimmerman, representing
self; Leonora Midgley, representing self; Patrick Kenny, representing self; Lisa Voss, representing self; Lisa Maczura,
representing self; Angela Buer, representing self; Susan Matheson, representing self; Jerrold Borchardt,
representing self; Dianna DiMaggio, representing self; Valarie Bryant, representing self; George Ehrlich,
representing self; Nancy Hancock, representing self; Mona Nance, representing self; Sharon Ehrlich, representing
self; Terri Farneti, representing self; Carol Rohe, representing self; Ann Lebert, representing self; Barbara Jones,
representing self; Barbara Dompe, representing self; Patricia Brunner, representing self; Gary Townsend,
representing self; Lacy Bangert, representing self; Margaret Tinsley, representing self; Judy Wilkening, representing
self; Lois Ermak, representing self; Kristina Hakanson, representing self; Sarah Bihms LD29, representing self; Jan
Allen, representing self; Janet Lewis-Weaver, representing self; Mary Rose, representing self; Allison Jackson,
representing self; Christa Trexler, representing self; Mike Kunnecke, representing self; Ken Jones, representing self;
Sharon Arnst, representing self; Cynthia Wagner, representing self; Dieter Knecht, representing self; John
Cummings, representing self; Michael Brown, representing self; Shelly Gordon-Gray, representing self; Felisa Gilley,
representing self; JoAnn McCay, representing self; LINDA GANTVERG, representing self; Ashka Atodaria,
representing self; Allen Brown, representing self; William Bowius-Root, representing self; Kathleen Schanus-Gohl,
representing self; Melinda Bell, representing self; Jonathan Brechner, representing self; Eric Kadel, representing
self; Sandra Stark, representing self; Susan Ordway, representing self; Kathleen Woessner, representing self;
Rebecca Shook, representing self; Jillian Ryan, representing self; Loretta O'Connor, representing self; Leslie Stallcop,
representing self; Barbara Lucas, representing self; Sery Johnson, representing self; Helen Abrahamson,
representing self; Mary Keerins, representing self; Amy Gosla, representing self; Michael Abrahamson,
representing self; Vania Guevara, CHISPA ARIZONA, A PROGRAM OF LEAGUE OF CONSERVATION VOTERS, INC;
JOHN FIENE, representing self; Marin Lersch, representing self; Elissa Karn, representing self; Lisa Koenig,
representing self; Alicia Messing, representing self; Kristan Larson, representing self; Marcia Tingley, representing
self; Joanne Basta, representing self; Lance Shout, representing self; Greg Olszta, representing self; Marcella
Deluca, representing self; Nancy Noto, representing self; Nancy Ray, representing self; Nancee K Wood,
representing self; Nadya Laliberte, representing self; Joan Doherty, representing self; Garyh Rulapaugh,
representing self; RITA DEPUYDT, representing self; Aaron Essif, representing self; Monica Bills, representing self;
Kathryn Dorn, representing self; Jane Johnson, representing self; Harriet Williams, representing self; Roy L
Carrington Jr., representing self; Andrea Golfen, representing self; Jennifer Schrader, representing self; Susan
Bowen, representing self; Kat Ginzel, representing self; Sandy Bahr, Sierra Club - Grand Canyon Chapter

All Comments:

Joan Murphy, Self: NO DATA CENTERS; Glenn Sollers, Self: Arizonans of all political affiliations are pushing back
hard against more data centers in our communities, not just because they use so much energy, but also for their
excessive land and water usage.; Jodi Paulsen, Self: if you want a nuclear powered data center, you pay for it and
the ongoing energy and water it requires. Where will this water come from anyway? We have none}; Judith Simons,
Self: Data centers require too much energy, excessive land & water, & are opposed by Arizonans of all political
affiliations.; Alisa McMahon, Self: A valid study must include benefits and costs. This bill would spend resources on
a one-sided study. That is wasteful and irresponsible. ignoring downsides of data centers and small modular
nuclear reactors would Jead to poor planning and decisions.; Michael Fiflis, Self: Data centers gobble up vast
amounts of water — we cannot afford that in our drought ravaged State - and huge amounts of electricity that
consumers will have to pay for. Don’t waste my tax dollars on this. Reject this special interest legislation.; Susan
Morris, Self: There is overwhelming evidence that these centers use too much water and power. NO}; Brenda
Nelson, Self: NO DATA CENTERS! OPPOSE; David Staricha, Self: We don't need more power hungry centers in
Arizona.; Penny Boone, Self: NO! Data centers are harmful to Az using too much power and water.; Valerie
Policastro Edie, Self: excessive water use; Martha O'Connor, Seif: Arizonans of all political affiliations are pushing
back hard against more data centers in our communities, not just because they use so much energy, but also for
their excessive land and water usage; Kathleen Dubbs, Self: Arizona does not need data centers!; Carolyn Watson,
Self: As a constiuent, I'm asking for a" no" vote on this bill. A study which appears biased already, pushing data
centers and small nuclear plants on communities isn't viable for our water supply. Communities at risk are
pushing back. Thank you; Rebecca Haynes, Self: Arizonans of all political affiliations are pushing back hard against
more data centers in our communities, not just because they use so much energy, but aiso for their excessive land
and water usage.; Kristen Abrahamson, Self: | do not want the chance of a biased study to bring these data centers
to Arizona. the excess of land, water and energy usage of data centers will pose a big danger to the state and its
people.; Carol Fiore, Self: You do know that data centers use excessive water and land, right? We the people do
not want them in our communities.; Carol Garnett, Self: Use tax money to help the people. Don't need to study
this as | am sure the corporations have already done so. The use of land, water and electricity is already known
and it does not benefit us.; Jennifer Dawson, Self: NO DATA CENTERS!! Dangerous and excessive use of water and
energy for very little result.; Chris Ahearn, Self: Please oppose. Data centers use excessive amount of water and
land usage. Environmentally, this compounds our current water troubles.The 7 state negotiations likely will
negatively hit our state. This bill makes it worse. Vote no. Thank you.; Patricia Edelen, Self: The majority of AZ
residents are opposing the development of more data centers - you can't drink data.; Jean Meconi, Self: The
corporations & individuals pushing data centers have wealth beyond our imaginations and don't need any financial
help from AZ taxpayers.; Pat Jayson, Self: Data Centers with "small nukes", are you kidding?; Roger Biain, Self: This
study is unneeded. The tech isn't ready for deployment yet, and also SMR's are just water boilers, and where will
that resource come from?; Jacqueline deSa, Self: Arizonans of all political affiliations are pushing back hard against
more data centers in our communities, not just because they use so much energy, but also for their excessive land
and water usage.; Alice Christianson, Self: Martinez is supporting nuclear and probably other data centers against
the wishes of AZ residents who are opposed to them because of excessive land and water usage. Protect our
citizens and our water.; Salie Travis, Self: | can assure the sponsors that even if the study on benefits of reactors
and data centers is a positive one, NO ONE wants them in our state. Their immense water use would be a major
issue. Strongly opposel; Pamela Chittenden, Self: Use excess energy, land and, more importantly, water!; Marilyn
Murov, Self: Does not specify how much state tax money for the study and data centers use way too much H20
and energy that we don't have; Karen Brown, Self: We need no studies to know that data centers are
overwhelmingly opposed by the public because they are wasteful of water and energy and cause prices for power
to spike. | strongly oppose this bill.; Patrick Kenny, Self: This bill uses public money to advance nuclear-powered
data centers despite widespread opposition from Arizonans. These facilities consume enormous energy, land, and
water. Arizona needs unbiased analysis—not taxpayer-funded advertising. OPPOSE.; Lisa Maczura, Self: The only
people who like data centers are the one's that get paid to build or maintain them. Not a winner in an election
year.; Angela Buer, Self: Committing AZ tax dollars to a biased study designed to promote nuclear-powered data
centers is wasteful. Arizonans across the political spectrum oppose more data centers due to their massive energy,
land, and water use. OPPOSE.; Patricia Brunner, Self: Arizonans overwhelmingly oppose data centers. WE don’t
need a study.; Gary Townsend, Self: We already know that who benefits is not the voters.; Margaret Tinsley, Self:
More data centers will not necessarily benefit Arizonans, especially given their excessive water use. And an
unspecified amount of money we don't have to study this? Not a good idea. Please vote no.; Sarah Bihms LD29,
Self: Studying “benefits” of nuclear data centers ignores real land and water costs. Communities have already said
no.; Cynthia Wagner, Self: Arizonans of all political affiliations are pushing back hard against more data centers in
our communities, not just because they use so much energy, but also for their excessive land and water usage. I'm
an AZ Voter; Daniel Stormont, Self: A third-party assessment of economic benefits from data centers would be
worthwhile; however, the study should also include potential economic losses, as well.; Michael Brown, Self:
Nuclear is dangerous and not needed in Arizona; JoAnn McCay, Self: Let's push back against more data centers -
they use too much water.; LINDA GANTVERG, Self: Figure out the water supply first and then we can consider data
centers if necessary; Allen Brown, Self: There is a pushback against large data centers in Arizona. They employ very
few people for such a large facility. They consume resources at such a high rate. | would wait for technology to
catch up with demand. Vote NO on HB2388.; Jonathan Brechner, Self: Nothing that helps data centers which suck
up our water should be supported.; Susan Ordway, Self: The excessive energy and water use required by these
data centers makes them very unpopular with most Arizonans. These are not something Arizona needs more of.;
Jillian Ryan, Self: Arizonans of all political affiliations are pushing back hard against more data centers in our
communities, not just because they use so much energy, but also for their excessive land and water usage.;
Barbara Lucas, Self: Arizonans of all political affiliations are pushing back hard against more data centers in our
communities, not just because they use so much energy, but also for their excessive land and water usage.; Helen
Abrahamson, Self: Data centers use up way too much water, a precious resource here in AZ; Mary Keerins, Self:
Arizonans of all political affiliations are pushing back hard against more data centers in our communities, not just
because they use so much energy, but also for their excessive tand and water usage.; JOHN FIENE, Seif: i am a fan
of safe nuclear energy, but where do you get the water to cool these auxiliary reactors? Oppose this bill and any
striker. LD1i voter; Alicia Messing, Self: Environmental impact statements are essential.; Kristan Larson, Self:
Protect our water resources!; Marcia Tingley, Self: Clearly promotes nuclear-powered data centers, while
Arizonans are opposing data centers in their communities, because of both energy & excessive land & water
usage.; Joanne Basta, Self: Combining data centers and nuclear power - both dangerous especially in our
regulatory environment.; Greg Olszta, Self: promotes nuclear-powered data centers. Arizonans of all political
affiliations are pushing back hard against more data centers in our communities, not just because they use so
much energy, but also for their excessive land and water usage.; Marcella Deluca, Self: The majority of Arizonans
do not want more data centers in our communities because of their excessive energy, land and water usage.;
Aaron Essif, Self: Arizonans of ALL political affiliations are pushing back against more data centers.; Kathryn Dorn,
Self: | can save you money on this: the current push to build a ridiculous number of data centers is driven largely by
tech companies' terror that if they don't keep demonstrating "growth," investors will flee and they'll collapse.
Meager economic benefit.; Jane Johnson, Self: This bill has an unspecified amount of $5 to study nuclear powered
data centers. Arizona is facing a water crisis. Data centers require enormous amounts of water and are causing our
utility rates to increase significantly costing the taxpayer.; Susan Bowen, Self: ARIZONIANS OF ALL POLITICAL
AFFILIATIONS ARE PUSHING BACK AGAINST MORE DATA CENTERS IN OUR COMMUNITIES, NOT JUST BECAUSE
THEY USE SO MUCH ENERGY BUT FOR THEIR EXCESSIVE LAND AND WATER USAGE; Al DATA CTRS SHOULD BE
REQUIRED TO BE POWERED BY SOLAR ONLY; Sandy Bahr, Sierra Club - Grand Canyon Chapter: Any study of data
centers and small modular nuclear reactors should look at the economic downside and harms to our communities,
not just any perceived benefits.

HB2804, rural affordable housing; tax credits

Testified in support:
Kristina Sabetta, representing self; Rebecca Daggett, representing self; Reid Butler, representing self; Chris Hite,
representing self

Testified as opposed:
Aimee Yentes, AZ FREE ENTERPRISE CLUB
Support:

Joe Galli, Flagstaff Chamber of Commerce, Greater Flagstaff Chamber Of Commerce; Brandy Petrone, KEYS TO
CHANGE; Robyn Prud'homme-Bauer, representing self; Tom Dorn, TOWN OF PAYSON; Susan Morris, representing
self; Christian Solorio, representing self; Jess Knudson, LAKE HAVASU CITY; kathy bashor, ARIZONA PEER AND
FAMILY COALITION; Courtney Coolidge, AZ CHAMBER OF COMMERCE; Leslie Stallcop, representing self; Lorene
Anderson, representing self; Bahney Dedolph, representing self; Robin Davis, representing self; Clark Princell,
VALLEY PARTNERSHIP; Robert Aldous, CASA GRANDE, CITY OF; Ethan Knowiden, representing self; Jennifer Moore,
representing self; Steve Kaiser, ARIZONA HOUSING COALITION; Sally Evans, representing self; Armando Esparza,
representing self; Leigh Marino, City Of Cottonwood; Courtney Gilstrap LeVinus, Arizona Multihousing Association;
Jeremy Browning, ARIZONA HOUSING COALITION; Brian Murray, City Of Flagstaff; Tom Farley, Arizona Association
Of Realtors; Khara House, representing self

Oppose:

Dwight Kadar, representing self; Andrea Kadar, representing self; Andres Aguerrette, representing self; Anna
Morrison, representing self; Cathy Schwanke, representing self; Janelle Solomon, representing self; Randal Scott,
representing self; Elizabeth King, representing self; C D Tavares, representing self; Kristine Nelson, representing
self; Arthur Fesler-Butts, representing self; Jeanne Tavares, representing self; Patricia Gerrodette, representing
self; Bonnie Kistler, representing self; Rachel Bauer, representing self; Charles Gonzalez, representing self; Stephen
Harris, representing self; Leslie White, representing self; Pamela Peake Election Printing & Supp - Owner,
representing self; William & Mary Jurica, representing self; Maryclare Abatecola, representing self; Susie Luhrs,
representing self; Dianna Gates, representing self; Carole Challoner, representing self; Randy Brown, representing
self; Sydney Brown, representing self; James McFadzean, representing self; Brenda Marts, representing self; Jean
Ferguson, representing self; Christi Sourk, representing self; Barbara Jennings, representing self; Cara Kretz,
representing self; Janet Louchheim, representing self; K Webster, representing self; Lorraine S, representing self;
Thomas Reiner, representing self; Jane Waypa, representing self; Karen Chaney, representing self; Steve Hetsler,
representing self; Colleen Ryan, representing self; Peter Asencio, representing self; Stanley Hicks, representing self;
Carolyn Davidson, representing self; Merl Nielsen, representing self; Daniel Spencer, representing self; Kathryn
Farkas, representing self; Jean Rice, representing self; louise liggett, representing self; karen enns, representing
self; Jeffrey Luft, representing self; Bonnie Lund, representing self; Carrie Cox, representing self; Mary Jamsa,
representing self; Roy Scott Lassell, representing self; Kathryn Clark, representing self; Doris Mills, representing
self; Bill Harenburg, representing self; brenda simon, representing self; Douglas Simon, representing self; conrad
toison, representing self; Joelene Williamson, representing self; Dayle Hartgerink, representing self; Brent
Michelson, representing seif; Kim Gordon, representing seif; Barbara Scott, representing self; Sandee McKinlay,
representing self; Chery! Pardini, representing self; Nancy Barrett, representing seif; Suzanne Murray,
representing self; Helen Fong, representing self; eileen acosta, representing self; Julia Pitula, representing self;
Sindy Reich, representing self; Patricia Phillips, representing self; Donalda Bond, representing self; Clare
Goldsberry, representing self; Anne Girdler, representing self; Shuron Harvey, representing self; Tony Dudzinski,
representing self; Dennis Pullaro, representing self; Anne White, representing self; Chandrasekhar Doniparthi,
representing self; Margaret Barnes, representing self; Katherine Cabianca, representing self; Barton Anderson,
representing self; Janice Weinmann-Danis, representing self; Brad Danis, representing self; Kati Danis, representing
self; Karen Sherrell, representing self; Anne Fesler-Butts, representing self; Dimitrios Gockel, representing self

All Comments:

Reid Butler, Self: | am a long-time Arizona affordable housing developer. | am attending he Committee today with
the Arizona MultiHousing Association (Chair of the AMA Developer SubCommittee). | have developed affordable
housing in Miami, Arizona.; Susan Morris, Self: Civilized countries and states provide rental assistance to the needy.
Let's do that, tool; Robin Davis, Self: This tax credit needs to be brought back. Representative Martinez did a great
job of wording this to avoid fraud. Rural Arizonans seem to get lost in the shuffle anymore in favor of cities. Many
rural people need this tax credit.; Tom Farley, Arizona Association Of Realtors: Changed from not speaking to if
necessary.; Khara House, Self: As a long-time housing advocate, | recognize that communities need practical tools
to close real affordability gaps, especially in smaller and rural areas. | support this bill: it supports stable housing,
workforce retention, and community wellbeing.; Andrea Kadar, Self: This tax credit scheme is rife with fraud. Last
year, extending the program was a top priority for Hobbs as the program was set to expire. The extension was
killed, making Arizona the first state; Randal Scott, Self: No go on this one; Arthur Fesler-Butts, Self: As a retired
vet, '07 ASU Honors Grad: Life Member; NCOA, NRA, ASU Alumni, AZCDL, DAV, American Legion, a member of
Kiwanis & 20+yrs PC, urge you to oppose this Bill. This is a bias pure and simple and we need to rid our State of its
practice.; Patricia Gerrodette, Self: Sounds really good, with the right words. But looks suspiciously like yet another
way to provide a tax CREDIT, not even deduction, to people with investment $$ and to remove income from an AZ
treasury already struggling.; Stephen Harris, Self: This tax credit scheme is rife with fraud. {n 2025 this was program
was top priority for Hobbs to extend, was killed, making Arizona the first state to let its LIHTC program be repealed.
This bill would bring it back; Lesfie White, Self: VOTE NOI This is ripe with FRAUD. Leslie White PC Oregon District
LDS; Susie Luhrs, Self: What happened with previous budgets?; Randy Brown, Self: It's dead and gone. We don't
need to reanimate this zombie and have it wasting tax $. Government isn't the answer, IT'S THE PROBLEM! This
issue is buried. No need to dig it up.; Sydney Brown, Self: Why would we bring back fraud? Wouldn’t it be better to
cut fraud further?; James McFadzean, Self: Tax credit schemes are rife with fraud. Tax credit program was a
priority for Hobbs last year but the extension was killed. This bill is an attempt to bring it back. NO way.; Peter
Asencio, Self: | am a PC LD1.; Daniel Spencer, Self: Please, no new taxes.; Kathryn Farkas, Self: | don't agree with
handouts to developers.; karen enns, Self: As | understand this bill, it would hand out money to developers only,
and not help ordinary buyers.; Jeffrey Luft, Self: Another bad idea. Stay out of my pocket, Now!ll; Bonnie Lund,
Self: Get rid of the fraud.; Mary Jamsa, Self: This tax credit scheme is rife with fraud. | do not support this bill.; Roy
Scott Lasseli, Self: { do not support this bill. [t is not appropriate and enables another level of fraud and waste.;
Kathryn Clark, Self: The affordable housing tax credits expired last year and was repealed. This should not be
supported going forward, please vote NO.; brenda simon, Self: Affordable housing seems to play out as tax-payers
getting the bill. Enough.; conrad tolson, Self: This could be open to fraud; Joelene Williamson, Self: oppose. no
subsidizing developers!; Dayle Hartgerink, Self: Oppose. This is just an opportunity to subsidize land developers
LD28 PC; Nancy Barrett, Self: | do not support this; Suzanne Murray, Self: Vote no on this bill which would create
Housing tax credits that would be susceptible to fraud; Donalda Bond, Self: Stop the FRAUD & abuse of our tax
dollars; Tony Dudzinski, Self: Please vote NO on this bill . Thank you ..; Barton Anderson, Self: Because I'ma
Republican.; Anne Fesler-Butts, Self: As retired M.D., USAR LTC: Life member; NCOA Aux, DAV, American Legion,
NRA, AZCDL a member of Kiwanis, | urge you to oppose this Bill.; Dimitrios Gockel, Self: 1am against this bill of the
Rural affordable housing tax credits. Because more needs to be done. Water must be protected, and we do not
have enough water to protect all of Arizonians.

HB2926, housing; contractors; bonds; taxes

Support:
Steve Kaiser, HABITAT FOR HUMANITY OF CENTRAL ARIZONA; Janet Larkin, representing self

Oppose:
Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS; Robert Wisler, APACHE JUNCTION, CITY OF; Robert Aldous,
CASA GRANDE, CITY OF
All Comments:
Janet Larkin, Self: Affordable housing is so important to not putting out more people on the street. We can do this!
PLEASE: COMPLETE THIS FORM: FOR THE: ‘PUBLIC RECORD

HOUSE OF REPRESENTATIVES
Please PRINT Clear!

\
Committee on Kua Exe Wt) 2 Yay sls y Bill Number 2p 4

Date: Zz zs x, / Zh. paSupport - [1 Oppose 4 Neutral
Name bo, AlN Swanton Need to Speak? rat es ODINo

Representing Gastha Dur = 4B inp mn mM Are you a registered lobbyist? My) ,
Complete Addr

ess

E-mail Address btwpicton po gplonun lin. Phone Number a> 16 f- 4089

Comments:

FT VE-MINUTE SPEAKING LIMIT#**
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 02/05/26
CONVENED 4:03 AVY)
RECESSED
RECONVENED
ADJOURNED lo! 0O am
MEMBERS PRESENT NOT PRESENT
Blackman wa
Bliss Va
Hernandez C wa
Peshlakai va
Volk Lo
Lopez, Vice-Chairman a
Martinez, Chairman a
TOTAL Cf

Attachment_.3
ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2804: rural affordable housing; tax credits
Sponsor: Representative Martinez, LD 16
Committee on Rural Economic Development

Overview
iistablishes the Rural Development and Housing Tax Credit.

History

Individual income tax is levied on an Arizona resident's taxable income at a single tax rate
of 2.5 percent. Corporate income tax is levied on a corporation 's taxable income at 4.9 percent.
The calculation of Arizona individual income tax begins with the federal adjusted gross
income and the corporate income tax begins with federal taxable income, which are then
subject to various additions, subtractions and deductions. Statute also authorizes various tax

credits that reduce a taxpayer's income tax liability (A.R.S. Title 43, Chapters 10 and 11).

Provisions
Rural Development and Housing Tax Credit

1. Establishes the rural development and housing tax credit administered by the Arizona
Department of Housing. (Sec. 3)

2. Instructs ADOH to allocate tax credits for projects that:
a. are wholly located within a county with a population of less than 800,000 persons;
b. qualify for the federal low-income housing tax credit; and
c. are placed in service after June 30, 2027 in an amount that the department
determines is necessary for the economic feasibility of the qualified project. (sec. 3)

3. Specifies the credit is allowed in the first six taxable years during the federal credit
period. (sec. 3)

4. Requires ADOH to:
a. allocate tax credits according to the department's current qualified allocation plan;
b. prescribe forms, procedures and criteria for applying, evaluating and qualifying for
the credit; and
c. issue an eligibility statement for each qualified project that identifies the qualified
project, the allocation year and the amount of the credits allocated to the project. (Sec.
3)

5. Directs ADOH, for calendar years 2026 through 2036, to allocate a total of $2,000,000 of
tax credits in any calendar year according to the date of the allocation of the credit. (Sec.
3)

O Prop 105 (45 votes) (] Prop 108 (40 votes) O Emergency (40 votes) ( Fiscal Note

Initials HB 2804
2/2/2026 Page 1 Rural Economic Development

Attachment, 4
6. Prohibits a credit allocated in calendar year 2026 from being claimed until the federal
fiscal year beginning October 1, 2027. (Sec. 3)

7. Specifies an approved amount applies against the dollar limit for the year in which the
application is submitted. (Sec. 3)

8. Directs any unused balances that are under the dollar limit be reallocated in the following
year. (Sec. 3)

9. Stipulates a taxpayer that owns an interest in an investment in a qualified project that
receives an eligibility statement from ADOH is allowed a tax credit provided the taxpayer
acquires the interest before filing a tax return claiming the tax credit. (sec. 3)

10. requires the taxpayer to apply the credit against the taxpayer's insurance premium or
income tax liability. (sec. 1)

11. Instructs ADOH, with DIFI and ADOR, to adopt rules and publish and prescribe forms
and procedures as necessary to administer the tax credit. (Sec. 3)

12. Requires ADOH, by July 30 of each year, to hold a public hearing to solicit and accept
public comments relating to the amount of the credit to be used for qualified projects and
other rural development and housing tax credit issues. (Sec. 3)

18. Instructs ADOH to submit a report that addresses whether the credits produced a
significant number of additional affordable housing units and that analyzes the economic
impact of the credits on Arizona. (Sec. 3)

14, Repeal the rural development and housing tax credit January 1, 2037. (Sec. 4)

Miscellaneous

15. Stipulates a taxpayer is allowed a credit against the premium tax liability, individual
income tax or corporation income tax provided the ADOH issues an eligibility statement
for a qualified project. (Sec. 1, 6, 8)

16. Specifies the amount of the tax credit. (Sec. 1, 6, 8)

17. Requires the taxpayer, to claim the credit, to submit the eligibility statement provided by
ADOH to the respective agency with the taxpayer's tax return. (Sec. 1, 6, 8)

18. Allows the unused portion of the tax credit to be carried forward for up to five consecutive
taxable years. (Sec. 1, 6, 8)

19. Stipulates if the federal low-income housing tax credit with respect to the qualified project
is subject to recapture, then the applicable tax credit is also subject to recapture in a
proportion amount from all taxpayers that claimed the credit. (Sec. 1, 6, 8)

20. Requires the applicable agencies in reference to the tax credit to adopt rules and publish
and prescribe forms and procedures as necessary to administer the tax credit. (Sec. 1, 6,
8)

21. Declares a taxpayer the claims a tax credit against the state premium tax liability is not
required to pay any additional retaliatory tax and may fully offset any retaliatory tax
imposed in accordance with statute. (Sec. 1)

22. Contains a purpose statement and saving clause. (Sec. 10, 12)

23. Makes the legislation retroactive to taxable years beginning January 1, 2026. (Sec.11)

Initials HB 2804

2/2/2026 Page 2 Rural Economic Development
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2804
DATE February 05, 2026 MOTION: DY

PASS AY NAY PRESENT | ABSENT
Blackman JV

Bliss SY
Vv

Hernandez C

Peshlakai J,

Volk Va

Lopez, Vice-Chairman WA

Martinez, Chairman JS
C

lisse. ake
Winter Ni bain
. Mie COMMITTEE SECRETARY

TERESA MARTINEZ, Chairpran
CHRIS LOPEZ, Vice-Chair

APPROVED:

ATTACHMENT, 5
<

ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session
Majority Research Staff

HB 2388: appropriation; commerce authority; nuclear; study
Sponsor: Representative Martinez, LD 16
Committee on Rural Economic Development

Overview

Appropriates an unspecified amount from the state General Fund (GF) in Fiscal Year (FY)
2027 to the Arizona Commerce Authority (ACA) to study the economic benefits of small
modular reactors and data centers.

History
The ACA provides private sector leadership in growing and diversifying the economy of this

state, creating high quality employment in this state through expansion, attraction and
retention of businesses and marketing this state for the purpose of expansion, attraction and
retention of businesses (A.R.S. § 41-1502),

Provisions

1. Appropriates an unspecified amount from the GF in FY 2027 to the ACA to conduct a
study of the economic benefits of small modular reactors and data centers to this state
and local governments. (Sec. 1)

2. Requires the study to include:

a.
b.

c.
d.
e.

the number of direct and indirect full-time jobs created;

the amount of any state and local tax revenue increases from property, transaction
privilege or income taxes;

broadband and infrastructure investments and improvements;

secondary and tertiary jobs and businesses created; and

any other economic benefits the Arizona commerce authority deems relevant. (Sec. 1)

3. Directs the ACA to submit a report of its finding to the Governor and the Legislature and
make a copy of the report available on its website. (Sec. 1)

O Prop 105 (45 votes) C] Prop 108 (40 votes) O Emergency (40 votes) O Fiscal Note

Initials PB HB 2388
2/2/2026 Page 1 Rural Economic Development

Attachment a
ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature - Second Regular Session

ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2388
DATE February 05, 2026 MOTION: DP
PASS AYE, NAY PRESENT | ABSENT

Blackman V /

Bliss S /

Hernandez C V /

Peshlakai r| Sf

Volk J,

Lopez, Vice-Chairman VY |

Martinez, Chairman A .

tLe fo
U ty

APPROVED:

_JERESA MARTINEZ, Chairyfhan
CHRIS LOPEZ, Vice-Chairman

COMMITTEE SECRETARY

ATTACHMENT. 5

File and source

File

2026-02-05_rural-economic-development-minutes.pdf

Size

1,038,442 bytes

SHA-256

6bfcd7bb6ac738e5f31185081da6ebecf56253c2b416957274ff33c1bc274d3c

Our copy

2026-02-05_rural-economic-development-minutes.pdf

Original

www.azleg.gov