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- Introduction
- Part 1: Courts, Civil and Criminal Justice, and Law Enforcement
- Part 2: Campaigns, Elections and Recordkeeping
- Part 3: Taxes, Budget, and Finance
- Part 4: General Government
- Part 5: Transportation and Traffic Enforcement
- Part 6: Labor, Employment, Retirement and Benefits
- Part 7: Ballot Referrals
- 2024 New Laws Report (Web Page)
- 2023 New Laws Report (Web Page)
- 2022 New Laws Report (PDF)
- 2021 New Laws Report (PDF)
- 2020 New Laws Report (PDF)
- Archived New Laws Reports: 1999 to 2019
Introduction
The 2025 New Laws Report of the League of Arizona Cities and Towns is designed to inform League members about enactments of the first regular session of the 57th Arizona Legislature that may have demonstrable impacts on municipalities. During the 2025 session, 1,854 bills, memorials, and resolutions were introduced in the House and Senate. Of these, roughly one hundred enactments may affect cities and towns and they are briefly summarized in this report.
Scope and Use
This report is only intended to identify and briefly summarize key laws that may have significant impacts on Arizona municipalities. It does not describe every new provision or law in detail; instead, it provides a hyperlink to the information and the chapter number of the law. For a fuller understanding of the new laws, readers are encouraged to review the exact language of the new laws and their relevant legislative histories.
Effective Dates
Unless otherwise noted in this Report, the effective date of the new laws in this Report is September 26, 2025. This date – 90 days after the legislative session’s conclusion – is the general effective date for all enactments that are passed without an emergency clause or alternative effective date. This Report identifies effective dates that vary from this general effective date. Where appropriate, it also includes other statutory dates, such as repeal dates, implementation dates, and deadlines.
Disclaimers
This Report is published as a service to League members and does not necessarily identify every law impacting municipalities. It is neither designed nor intended to provide legal advice or counsel. It should be relied upon only as a reference tool and not as a comprehensive guidance document. While this Report may highlight action items that cities and towns should consider, it does not substitute the independent judgments of your city or town manager, council, or attorney.
Part 1: Courts, Civil and Criminal Justice, and Law Enforcement
HB2074 school safety; proposals; assessments; plans
(Chapter 129)
Requires each school district and charter school that employs one or more school safety officers, including indirect employment through the School Safety Program, to train each officer on how to recognize and effectively interact with children with disabilities. Expands the School Safety Program requirements for providing school building blueprints, floor plans, and school safety assessments to local law enforcement, emergency medical services providers, and fire departments that provide services to the school site.
HB2114 sexual conduct; minor; classification; sentence
Classifies as a class 4 felony the crime of sexual conduct with a minor who is at least 15 years of age where the offender is older than 21 years of age and more than 60 months older than the victim at the time of the offense. Requires the convicted person to be sentenced to one year in jail if placed on probation.
HB2115 observing nude minor; sexual gratification
Classifies as a class 2 felony the crime of observing a nude minor for the purpose of engaging in sexual conduct for the person’s sexual gratification.
HB2281 missing indigenous person; alert system
Requires the Arizona Department of Public Safety (DPS) to establish the turquoise alert system to issue and coordinate alerts following the report of a missing indigenous person.
HB2388 silent witness; nondisclosure; records; exceptions
Prohibits the disclosure of information that may be used to identify an individual submitting a tip anonymously. Stipulates that no portion of any record maintained by a crime reporting program that might be used to identify an individual who submitted a tip anonymously shall be subject to compulsory production unless a court determines the plaintiff established good cause for disclosure and a subpoena is authorized. Establishes record retention obligations.
HB2581 tracking system; sexual assault kits
Requires the Department of Public Safety (DPS) to establish a system for tracking sexual assault kit evidence. Requires medical providers, law enforcement agencies, public accredited crime laboratories, and others that possess or use sexual assault kits to submit evidence to the DPS tracking system. Provides that sexual assault kit evidence records in the DPS tracking system are confidential subject to exceptions.
HB2607 fentanyl; motor vehicle; sentencing
Establishes a sentencing range for convictions of illegal possession or illegal transportation of a narcotic drug involving at least 200 grams of fentanyl in a motor vehicle.
HB2611 aggravated assault; accomplices; classification
Classifies as a class 4 felony the crime of aggravated assault committed by two or more accomplices directed at a single person.
HB2653 victims; disclosure requirements; witnesses; names
Allows crime victims to request redactions of their names in records pertaining to certain criminal cases, subject to exceptions. Requires the victim to submit a redaction request to the originating law enforcement agency or prosecution agency. Allows the originating agency to grant the request if it reasonably expects the disclosure may result in harassment of the victim, threats to the victim’s safety, or witness tampering.
HB2720 hydrolyzed cocaine; threshold amount
Consolidates the threshold amount for cocaine base and hydrolyzed cocaine with the nine-gram threshold for regular cocaine.
HB2733 unmanned aircraft; qualified immunity
Provides qualified immunity for certain injuries to personal property caused by a peace officer intercepting, capturing, disabling, shooting, destroying or otherwise rendering inoperative an unmanned aircraft within fifteen miles of the international border if the peace officer had reasonable suspicion the unmanned aircraft was being used for organized crime, fraud, terrorism, or an imitation substance or drug offense. Defines unmanned aircraft and unmanned aircraft operator.
HB2894 safe alert; notifications; criteria
Renames the Silver Alert System to the Seek and Find Alert System. Expands the system to include individuals with cognitive disabilities. Requires the Arizona Department of Public Safety (DPS) to seek activation of the emergency alert system and issue a Seek and Find Alert immediately.
SB1022 small claims court; jurisdictional limit
Increases the maximum limit in small claims courts from $3500 to $5000.
SB1033 animal seizure; bond amount
Increases the bond amount to defray the cost of caring for a seized animal from $25 to $500.
SB1060 internal investigations; notice; confidentiality
Requires a public employer to provide relevant and readily available materials to a law enforcement officer at least 24 hours before any administrative investigation interview subject to exceptions.
SB1104 police reports; victims; prosecuting agency
Adds video recordings to the list of materials a victim or the immediate family member of the victim has the right to receive for free from the investigating law enforcement agency or charging prosecutorial agency. Includes a charging prosecutorial agency as an agency that must provide one copy of police reports, video recordings and transcripts for crime victims at no charge.
SB1106 public entity liability; sexual offenses
Creates an exception to the immunity provided under A.R.S. § 12-820.05(b). Stipulates that a public entity is not entitled to the immunity for a sexual offense committed by a public employee on or after September 26, 2025, if the victim is a minor or a child with a disability and either: (a) the public entity violated a statutory duty to conduct a background check of the public employee; or (b) the public entity or public employee had a statutory duty to report and failed to do so. Repeals this immunity exception on December 31, 2027.
SB1198 animal cruelty; felony classification
Increases the penalties for intentionally or knowingly killing or seriously harming a service or working animal without legal privilege or consent of the owner to a class 5 felony. Clarifies that justification defenses apply to the offense of animal cruelty.
SB1295 fraudulent voice recordings
Creates a felony for criminal impersonation by computer-generated voice recording, image, or video of another person with the intent to defraud others.
SB1308 sober living homes
Expands the definition of sober living homes to require anyone engaged in the industry to be licensed and regulated by the Arizona Department of Health Services (ADHS) with certain exceptions. Increases penalties for unlicensed and unlawful activities, penalizes fraudulent and abusive health-care related practices, enhances inspection and enforcement authority, and requires notification to local governments regarding licenses issued.
SB1437 mandatory reporting; school employees; investigations
Modifies requirements relating to the duty to report the abuse of minors and the duty to report immoral or unprofessional conduct by school employees and third-party contractors. Requires a school resource officer or school safety officer who receives a report regarding suspicions or allegations of a reportable offense to submit all the information relating to the report to local law enforcement for the purpose of investigating the reported conduct. Defines a school safety officer as a peace officer who is working in an off-duty capacity at a school. Provides that a student who is identified as a potential victim of a reportable offense can only be interviewed in accordance with the local county protocol.
SB1462 computer-generated pictorial representations; unlawful disclosure
Creates a class 1 misdemeanor for threatening to disclose an image that is a computer-generated pictorial representation depicting a person who is in a state of nudity or engaged in specific sexual activities that did not actually occur. Defines computer-generated pictorial representation.
SB1500 compensation; erroneous convictions
Provides a private right of action to obtain damages from the state, counties, cities, and towns for certain erroneous convictions. Requires the attorney general to respond as the defendant in the case within 30 days unless a 30-day extension is granted. Requires the judge to award specific damages if the attorney general fails to object within the 30-day deadline. Requires a city to reimburse the state for certain damages within 45 days if the judge finds that a city employee committed harmful error or misconduct that was the proximate cause of the pardoning, reversal, or vacating of the conviction. Establishes a two-year statute of limitations. Provides an effective date of December 31, 2025, and a delayed repeal date of June 30, 2027.
SB1622 narcotic drugs; definition
Expands the definition of narcotic drugs to include butonitazene, etodesnitazene, etonitazepyne, flunitazene, isotonitazene, metodesnitazene, metonitazene, and protonitazene.
Part 2: Campaigns, Elections and Recordkeeping
HB2231 advisory committee; subcommittee; exemption
Provides that open meeting law does not apply to an exchange of communications amongst a quorum of a three-member advisory committee or subcommittee that involves a discussion or deliberation about a matter before the advisory committee or subcommittee, but only if there is no more than one member of the public body on the advisory committee or subcommittee.
HB2344 notaries; businesses; prohibition
Allows individuals to use the services of any notarial officer who is authorized to perform the notarial act under the laws of the notarial officer’s commissioning state when an entity does not provide an option to notarize documents at a physical location without charge or cost.
HB2666 campaign finance; third-party complaints
Prohibits a filing officer from accepting a campaign finance complaint from a third party unless it is filed with evidence that the complainant is an identifiable human being.
HB2667 campaign finance complaints; resolution
Stipulates that a campaign finance complaint is deemed dismissed if the filing officer does not resolve or rule on the complaint within 180 days or grant an extension.
SB1040 recall elections; procedures; timeline
Modifies timeframes for special recall elections and prescribes filing procedures for any person who desires to be a candidate for a special recall election.
SB1153 write-in candidates; nomination paper filing
Modifies the deadline for filing a write-in candidate nomination paper from 40 days to 60 days before the election, subject to the existing exceptions.
SB1220 victims’ rights; audio recordings; appeal
Adds audio recordings and video recordings to the list of items a victim or immediate family member of the victim may obtain from the investigating law enforcement agency. Allows a victim who is denied access to any public record to appeal the denial through a special action within the criminal case.
SB1372 public records; notification; commercial purpose
Requires anyone requesting a public record to either: (1) affirm the request is not for a commercial purpose; or (2) if for a commercial purpose, provide a statement explaining the intended use.
SB1581 campaign finance reports; filing dates
Prescribes specific requirements for a statewide, legislative, county, city or town candidate committee to file campaign finance reports covering each reporting period.
Part 3: Taxes, Budget, and Finance
HB2009 vehicle license tax; exemption; military
Adds a member of the U.S. Armed Forces who has valid orders and is within 30 days of deployment to be exempt from the vehicle license tax and registration fees. Allows a member of the U.S. Armed Forces who paid for the vehicle license tax and registration fees to apply for a refund.
HB2119 model city tax code; notice
Requires a municipality that issues a business license to provide notice of any Model or Local Option selected from the Model City Tax Code (MCTC) that will apply to any business license applicant at the time the person receives the business license application. If a municipality proposes an ordinance to select or remove any Model or Local Option provided in the MCTC: (1) at least 75 days before the proposed ordinance is approved or rejected by the council, the municipality must request from the DOR a list of all TPT licensed taxpayers within the municipality in the affected tax classification; and (2) at least 60 days before the proposed ordinance is approved or rejected by the council, the municipality must notify all the identified taxpayers in the affected tax classification by U.S. Mail. Excludes ordinances to adopt a use tax or two-tiered tax rate structure.
HB2639 TPT; exemption; qualifying equipment; extension
Extends the transaction privilege tax (TPT) deduction and use tax exemption for qualifying equipment that is purchased by a qualified business for harvesting or processing qualifying forest products removed from qualifying projects until December 31, 2028.
HB2688 internal revenue code; conformity
Conforms Arizona tax statutes to the U.S. Internal Revenue Code (IRC) of 1986, as amended, and in effect as of January 1, 2025, including those provisions that became effective during 2024 with the specific adoption of all the retroactive dates, but excluding any changes to the IRC enacted after January 1, 2025. Updates the definition of internal revenue code to conform.
HB2704 tax; distribution; county stadium district
Establishes funding for the County Stadium District to fund improvement projects for the district’s Major League Baseball facility (Chase Field) from January 1, 2026, through December 31st, 2056.
SB1122 property tax exemptions; inflation adjustment
Requires the Arizona Department of Revenue, beginning in Tax Year 2026, to increase the total assessment limit amount based on the average annual percentage increase in the federal house price index for the two most recent state fiscal years.
SB1144 jail facilities excise tax; extension
In a county that levies a jail facilities excise tax, allows its board of supervisors to call for a countywide general election to authorize the levy of a jail tax prior to its expiration. States that if the jail tax is approved by the voters, the county can levy the tax at a rate of no more than 4% of the transaction privilege tax. Requires the Arizona Department of Revenue (DOR) to collect the tax. Allows the board of supervisors to decrease the tax rate.
SB1224 property tax; limited property value
Specifies that, if a property previously qualified for property valuation protection, its limited property value will be set at a level or percentage of full cash value that is comparable to other properties of the same or similar classification if: (1) its title is conveyed to a person who does not qualify for property valuation protection; (2) its current owner no longer qualifies for property valuation protection; or (3) its current owner did not reapply for property valuation protection. Modifies the definition of statutory valuation.
SB1274 tax corrections act of 2025
Makes clarifying changes and corrections to various tax statutes. NOTE: The signed version did not include the late amendment that would have removed language in A.R.S. § 42-6009 related to online lodging that allows cities and towns to impose their Hotels TPT classification on lodging stays longer than 29 days.
SB1735 2025-2026; general appropriations act
- Reduces FY 2025 transfer from the State Highway Fund to the General Fund
- Makes the following appropriations:
- $3.2M to various police departments to expand participation in the Law Enforcement Records Management system
- $1.6M for the Organized Retail Theft Task Force
- $2.5M to the Law Enforcement Crime Victim Notification Fund and $600,000 to the Major Incident Regional Law Enforcement Task Force
- $19M to coordinated homeless services and $1.5M to homeless veterans’ services
- $3M for local law enforcement fentanyl interdiction
- $27M for wildfire mitigation and $3M for hazardous vegetation removal
- $84,700 for municipal firefighter reimbursement administration
- $1.4M for local grants to combat automobile theft operations
- Reverts monies to the General Fund from municipalities that assume their allocation of CAP water
- $1.6M to the anti-human trafficking grant fund, and $18.3M for local border support
- $500,000 to the Department of Revenue (DOR) for the administration of Prop. 312
- $2M of the DOR operating lump sum appropriation adds 25 FTE positions for additional audit and collections staff
- $2.2M for boating safety fund grants, $1M for the statewide infrastructure trust fund, and $2M deposit to the advanced air mobility fund
- $1.3M for rural water studies. Stipulates that these monies be spent only to assess local water use needs and to develop plans for sustainable future water supplies in rural areas outside this state’s active management areas
- $30M supplemental appropriation from the long-term water augmentation fund to the Department of Forestry and Fire Management for wildfire suppression
- Various distributions through the Treasurer to municipal police and fire agencies and local governments for public safety training and equipment purchases
- Directs the Treasurer to redistribute monies from the FY 2024 budget to the City of Prescott to renovate and repair their rodeo grounds
- $26.5M for the Phoenix Convention Center
- $19M to the Rio Nuevo multipurpose facility district
- Appropriates $2M to the Arizona Arts Trust Fund
- Appropriates $2.5M to the City of Winslow
SB1737 capital outlay; 2025-2026; appropriations
- Reduces an FY 2023 appropriation for pavement rehab of U.S. Route 191 near Safford
- Removes an FY 2024 appropriation for roundabout construction and intersection improvements in Payson
- Appropriates $41.4M for the Riggs Rd/SR347 overpass project
- Reduces multiple appropriations made in FY 2023 to the State Parks Board for various projects
- Makes appropriations in FY 2026 for: intersection improvements on SR347 at Casa Blanca Rd and Cement Plant Access Rd; design costs to widen SR347 between I-10 and Maricopa; design costs for SR87 and SR260 near Payson; and traffic signal design and construction in Flagstaff; and various appropriations for projects in Bullhead City, Queen Creek, Prescott, Colorado City, Kingman, and Nogales
- Allows Patagonia to use previously appropriated funds to reconstruct McKeown Ave
- Deems various projects to be favorably reviewed by the JCCR, including the SR303/I-17 interchange design, screening wall on Loop 101 and 16th St, and roundabout at SR169 and SR 69 in Prescott Valley
SB1739 2025-2026; criminal justice
Prohibits the transfer of Anti-Racketeering Revolving Fund (RICO) to the state general fund. Instructs the Attorney General to file an annual report regarding opioid settlement monies.
SB1740 2025-2026; environment
Allows the Arizona State Land Department (ASLD) to contract with a qualified third-party for the review of applications if its Commissioner determines that ASLD cannot act on the application within 60 days. Establishes the Fire Incident Management Grant Program. Contains various provisions that have no direct impact on cities and towns related to the Water Quality Assurance Revolving Fund (WQARF) and underground storage tanks.
SB1747 2025-2026; revenue
For FY 2026 only, pauses the annual DOR assessment to cities, towns, and other local taxing jurisdictions to help pay for implementing the ADOR Integrated Tax Modernization Project under A.R.S. § 42-5041. Assessments will return for FY 2027 and FY 2028.
NOTE: The League anticipates clean-up legislation in the future amending A.R.S. § 42-5041 to allow for assessments in FY 2029 to coincide with the extended development timeline.
SB1748 2025-2026; state budget implementation
Requires unrestricted federal monies in FY 2026 to be deposited in the state General Fund.
SB1749 2025-2026; taxation; omnibus
- Expands the TPT and Use tax exemption for 4” pipes and valves used to transport oil, natural gas, artificial gas, water, or coal slurry to also include pipes and valves used to transport wastewater.
- Fully exempts a veteran with a 100% service-connected disability, or their surviving spouse who has not remarried, from property tax.
- Specifies the property tax exemption limitations for veterans with a non-service-connected disability or a service-connected disability of less than 100%.
- Excludes the value of all veteran pensions from the calculation of “income from all sources” for income-limited exemptions.
- Increases business personal property tax exemption to $500,000.
- Increases the individual income tax subtraction for adoption expenses from $3,000 to $5,000 for an individual or head of household, or $10,000 for a married couple filing a joint return.
- Extends individual income tax credits through 2029 for payments made to public schools for the acquisition of certain capital items; community school meal programs; student consumable health care supplies; and playground equipment and shade structures for playground equipment.
SB1750 transportation; 2025-2026
- Establishes the Statewide Infrastructure Trust Fund administered by the State Treasurer for improvements or construction of federal or state highways
- Establishes the Advanced Air Mobility Fund administered by the State Treasurer to purchase advanced air mobility vehicles and construct vertiports
- Requires the State Treasurer, rather than ADOT, to administer the statewide transportation innovation program
- Specifies that the funds include any nonfederal gifts, grants, donations or other monies received by the state treasurer from any public or private source for the following projects:
- Statewide infrastructure fund
- Advanced air mobility fund
- Statewide transportation innovation fund
Part 4: General Government
HB2110 development; adaptive reuse; rezoning; prohibition
Makes several changes that apply retroactively to municipalities with a population of 150,000 or more regarding the development of multifamily residential development or adaptive reuse.
Clarifies that these municipalities must allow for multifamily residential development or adaptive reuse of at least 10% of the existing commercial, office or mixed-use parcels. Allows the municipalities, in determining the minimum percentage of eligible parcels, to analyze the commercial, office and mixed use parcels every 10 years. Specifies that the limitations to the setback requirements for multifamily residential development include mixed use buildings with the majority of floor area dedicated to residential uses. Adds that the maximum height and density for a multifamily residential development must be equal to the greater of the highest allowable multifamily height and density for a multifamily zoning district or a zoning district that allows residential development, including commercial districts that allow for residential development. Clarifies the municipality may limit the height to two stories in the areas of a multifamily residential development site directly adjacent to and within 100 feet of single-family residential zones and requires the municipality to allow for greater height in the remainder of the site. Specifies a multifamily residential development that is constructed pursuant to A.R.S. § 9-462.10 does not qualify as being within one mile of the parcel being redeveloped or the next closest multifamily parcel. Requires the building’s existing maximum allowable height to remain if its existing height exceeds the proposed height for an adaptive reuse building. Modifies the definitions for low-income housing, moderate-income housing, and nonconforming. Applies these revisions retroactively to January 1, 2025, except that the deadline to establish objective design standards is July 6, 2025.
HB2127 hazardous substance release; notice; liability
Requires the owner of a qualifying property to provide written notice to prospective buyers and the director of the Arizona Department of Environmental Quality (ADEQ) that the property was identified as contaminated by hazardous waste. Requires this written notice when property is listed for sale and when the purchase is complete.
HB2128 environmental remediation; liability; release
Establishes and outlines obligations of prospective remediators for a contaminated site on the Water Quality Assurance Revolving Fund (WQARF) registry.
HB2179 marijuana; advertising; restrictions
Makes changes to advertising and warning label requirements for marijuana, marijuana products, and marijuana paraphernalia. Requires the Attorney General to enforce the marijuana advertising regulations. Prohibits the placement of a billboard advertisement for marijuana or marijuana products within 1,000 radial feet of a childcare center, church, substance abuse recovery facility, public park, public playground, preschool, kindergarten program, or any public or private school that provides instruction to students in grades 1-12. Effective July 1, 2026.
HB2195 digital advertising; content; children; penalty
Requires a child-directed application to take appropriate measures to prevent the display of inappropriate and mature advertisements. Requires the Attorney General to enforce the content restrictions. Provides for a civil penalty of up to $100,000 per violation.
HB2201 wildfire mitigation planning; utilities; approval
Adds new statutes relating to wildfire mitigation and liability. Establishes the exclusive means of recovery from a public power entity or electric utility for claims or damages that result from wildfires subject to exceptions. Defines a public power entity as a municipal corporation or political subdivision that owns and operates facilities that generate, transmit, or distribute electric energy for sale to retail customers in this state. Defines electric utility, attachor, and other terms. Provides that an attachor is considered a public power entity for the purpose of wildfire mitigation plan and liability arising out of the attachor’s equipment. Requires public power entities to submit wildfire mitigation plans to their governing bodies for approval no later than May 1st, 2026, and every even-numbered year thereafter unless they specify otherwise. Provides that public power entities with fewer than 40,000 meters in this state as of January 1, 2025, are not subject to A.R.S. § 30-901 through -904 if they fail to timely submit their wildfire mitigation plan for approval to both their governing boards and the state forester. Provides that claims for condemnation or inverse condemnation related to wildfires do not exist against a public power entity. Exempts the Department of Forestry and Fire Management from the rulemaking requirements until September 25, 2026.
HB2272 municipal separate storm sewer system
Modifies the definition of county (related to local stormwater quality programs) to include a county that operates a regulated medium or large separate storm sewer system.
HB2342 blockchain technology; regulation; computational power
Prohibits cities, towns, and counties from restricting an individual from lawfully accessing or using computational power or running a node on blockchain technology in a residence.
HB2447 self-certification program; administrative review
Requires the city or town council by ordinance to authorize administrative personnel to review and approve certain development and design plans without a public hearing, including design review plans based on objective standards. Allows the city or town council by ordinance to adopt a self-certification program that allows registered architects and professional engineers to certify and be responsible for compliance with all applicable ordinances and construction standards for projects the ordinance identifies as being qualified for self-certification. Effective January 1, 2026.
HB2787 ground ambulances; registration
Stipulates that the Arizona Department of Health Services (DHS) may allow an ambulance’s certificate of registration (COR) to remain valid and in effect until DHS completes a required inspection if the COR’s holder timely submits a complete renewal application and DHS is unable to inspect the ambulance within the specified time frame. Includes different effective dates and a repeal date.
HB2905 craft producer; festival; fair; license
Creates a craft producer festival license that is issued by the Department of Liquor Licenses and Control. Repeals the wine, craft distillery and microbrewery festival licenses. Repeals statutes relating to farm winery festival licenses, craft distillery festival licenses, and microbrewery festival licenses.
HB2928 accessory dwelling units; requirements
Creates exceptions to A.R.S. § 9-500.39 effective January 1, 2026, regarding mandatory administrative review and approval for lands designated as districts of historical significance, designated as historic properties on the National Register of Historic Places, and designated as historic by a municipality. Makes various changes to A.R.S. § 9-461.18 regarding the accessory dwelling unit (ADU) requirements that apply to a municipality with a population of more than 75,000. Specifies the ADU requirements do not apply to parcels in the territory in the vicinity of a public airport with a noise level greater than 65 decibels. Allows a city or town to require the owner of a short-term rental to reside on the property if an ADU is located on the property, but only if the ADU was issued a certificate of occupancy, certificate of completion, or similar final approval by the municipality on or after September 14, 2024.
SB1051 engineers; alterations; commercial space
Creates an exemption to Board of Technical Registration (BTR) compliance requirements for non-registrants to make an interior nonstructural alteration of an individual unit of a commercial space, except as outlined. Allows a non-registrant who designs additions or alterations to certain one- or two-story buildings or structures in which the floor area does not exceed 3,000 square feet to exceed the square foot limit for an interior nonstructural alteration of an individual unit of a commercial space if that individual unit does not exceed 3,000 square feet. Specifies that this exemption does not apply to assembly occupancy buildings as defined in the adopted building code.
SB1074 railroad grade crossing; on-track equipment
Broadens railroad safety regulation relating to railroad crossings to include other on-track equipment.
SB1105 medical marijuana dispensaries; location
Adds childcare facilities and facilities that provide preschool programs to the list of locations that must be at least 500 feet from a nonprofit medical marijuana dispensary or a cultivation site. Prohibits a locality from enacting any ordinance, regulation, or rule that allows a marijuana establishment to locate within 500 feet of a public or private school, childcare facility or a facility that provides preschool programs. Applies to nonprofit medical marijuana dispensary registration certificates and marijuana establishment licenses that are issued on or after the effective date.
SB1182 counties; municipalities; construction hours
Prohibits a municipality from enacting or enforcing any noise ordinance, rule, or regulation that prohibits general construction activities from May 1 to October 15 between 5:00 AM and 7:00 PM on Monday through Friday, and between 7:00 AM and 7:00 PM on Saturdays, so long as the construction work is being performed pursuant to a validly issued building permit issued by the municipality or county. Requires the municipality to allow for the pouring of concrete at least one hour before the general construction activities are regularly scheduled to begin. Effective immediately.
SB1218 townsites; trustees; board of supervisors
Amends A.R.S. § 9–1101 et seq. to alter who can be designated as trustee of an unincorporated area and changes the associated filing and approval requirements.
SB1353 municipal development; permits; review
In a municipality with a population of 30,000 persons and subject to certain exceptions for hillside developments and floodplain reviews: (1) allows for the review of an application for a single-family residential building permit by a qualified third party if the municipality does not approve, conditionally approve or respond with the list of the required changes within 15 working days; and (2) requires the applicant to pay for a review by a qualified third party. Applies to building construction applications that are necessary for the construction of single-family residential dwelling units. Does not apply to applications for certificates of occupancy or pre-plats. Authorizes municipalities to select and contract with the qualified third parties. Specifies that the 15-day shot clock begins after the municipality has approved both: (1) the construction documents for the dwelling to be constructed, and (2) the vertical construction activities. Requires the municipality to maintain a list with at least 3 qualified third parties. Provides that a municipality issuing a permit, approval, or certificate of occupancy after a third-party review has immunity as prescribed in A.R.S. § 12-820.01 and 12-820.02.Includes statute relating to time limitation for validity of signatures on a petition for annexation as a factor a municipality must consider when establishing licensing time frames. Modifies deadlines that apply to all municipalities regarding the review of various applications. Requires a municipality to, within 10 working days after a request by the applicant, meet or discuss with the applicant the request for corrections and provide sufficient information to allow the applicant to provide the requested corrections. Prohibits a municipality, except for an application relating to municipal planning or zoning, from denying a residential license application that is necessary for land development or building construction unless: (a) the municipality considers the application withdrawn; or (b) the municipality has notified the applicant and the property owner within 15 working days that the application may be subject to denial because of excessive substantive deficiencies. Includes additional municipal actions which would require a refund of application and review fees. Makes review and approval deadlines applicable to applications for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned communities. Provides that municipality may allow an applicant to request a hold on the issuance of a certificate of occupancy as a security for assuring the installation of certain utilities and improvements.
SB1529 municipal housing; preapproved design; annexation
Establishes A.R.S. § 9-461.19 to require a municipality to establish standard preapproved housing design plans or a preapproved housing design plan program. Requires the plans to include at least three different elevation options for four classes. Outlines requirements for each class and different implementation deadlines (July 1, 2026, and January 1, 2027). Requires municipalities to review and approve plan submissions based on objective standards without a public hearing in accordance with A.R.S. § 9-500.49. Allows the municipality to charge the same fees that would otherwise apply to the review and approval of applications for same-sized properties. Provides that municipalities may require a person or entity to release and indemnify the municipality and its employees and contractors as a condition of using a preapproved housing design plan.
SB1537 transitional housing; reentry programs; licensure
Requires the director of the Arizona Department of Health Services (DHS) to adopt rules to establish minimum standards and requirements for the licensure of transitional housing facilities.
SB1543 ancillary use; international headquarters campus
Provides that, in municipalities with a population between 200,000 and 500,000, zoning districts that allows light industrial uses must allow hotels and multifamily housing on vacant land as ancillary uses if certain criteria are met. Requires an application for said ancillary uses to be approved administratively without a public hearing. Subjects the ancillary uses to compliance with all applicable municipal building codes and fire codes and the objective development standards. Exempts land in the vicinity of a military airport or ancillary military facility.
SB1549: conservation easements; valuation
Requires the Arizona Department of Revenue (DOR) and county assessors to use standard appraisal practices and techniques to determine the full cash value of a conservation easement unless a different statutory formula takes precedence.
Part 5: Transportation and Traffic Enforcement
HB2330 voluntary disclosure; disability; licenses
Allows the holder of a driver’s license or nonoperating identification license issued by the Arizona Department of Transportation (ADOT) to request that ADOT note in the holder’s record that the person may need communication accommodation. Allows the owner of a vehicle registered in this state to request that ADOT note in the vehicle’s record that there may be an occupant of the vehicle that may need communication accommodation. Defines relevant terms.
HB2750 fire trucks; diesel fuel; exemption
Allows dyed diesel fuel to be used by a fire truck, fire engine, or other fire apparatus on highways if it is engaged in the transportation of firefighters outside of area A, area B, and area C and it is exempt from the federal excise tax on diesel fuel.
HB2852 identification driver licenses; Native American
Requires the Arizona Department of Transportation (ADOT) to allow a distinguishing mark to appear on the nonoperating identification license or driver license that identifies the holder as a Native American if the holder requests the mark and submits satisfactory proof of being an enrolled member of a federally recognized Indian tribe in this state.
SB1307 advanced air mobility infrastructure
Requires the Arizona Department of Transportation (ADOT) to develop a statewide plan (or update the statewide plan) to address public vertiports, electric aircraft charging stations, and the needs of advanced air mobility. Requires ADOT to designate an expert in advanced air mobility to serve as a resource for local and regional jurisdictions that are developing or implementing advanced air mobility. Allows a political subdivision, in compliance with applicable federal laws, to establish the location of public and private vertiports, electric aircraft charging stations, and the infrastructure needs of advanced air mobility.
SB1332 driver licenses; reciprocity; foreign military
Requires the Arizona Department of Transportation (ADOT) to issue a Class D or Class M license and waive the required examinations for active-duty members of foreign armed forces who are stationed in this state with specific requirements.
SB1370 civil penalties; commercial motor vehicles
Allows certain commercial motor vehicles to make necessary lane deviations to avoid contact with another person or vehicle. Changes the penalties for certain violations applicable to commercial motor vehicles from misdemeanors to civil penalties. Expands the definition of commercial motor vehicle.
SB1467 liquor; consumption; watercraft
Modifies requirements that apply to government liquor licenses relating to the operation of docks and boats as licensed premises. Changes the definition of boat. Modifies the timeframe when spiritous liquor can be served, consumed, or possessed by a customer on a boat. Removes the requirement applicable to government liquor licenses that the sale of liquor be in conjunction with the consumption of food.
SB1517 off-highway vehicles; weight
Expands eligibility for temporary general use registration to include nonresidents with off-highway vehicles titled in another state that meet specific safety and equipment standards. Defines off-highway vehicles eligible for registration based on weight, dimensions, tires, and safety features. Allows such nonresidents to receive more than one temporary registration within a 12-month period. Extends the repeal date of the Arizona Off-Highway Vehicle Study Committee two years to May 31, 2027, retroactive to June 1, 2025.
Part 6: Labor, Employment, Retirement and Benefits
HB2013 public safety cancer insurance
Modifies the maximum amount that can be used by the Public Safety Personnel Retirement System (PSPRS) Board to administer the public safety cancer insurance policy program to 10% of the total claims paid, averaged over the previous 5 years with each year ending June 30, to exclude the costs of processing the claims.
HB2015 EORP; CORP; funded ratio
Modifies the Elected Officials Retirement Plan (EORP) and Corrections Officer Retirement Plan (CORP) employer’s contribution requirements in the event the employer’s funded ratio of assets to liabilities reaches 100%.
HB2032 workers’ compensation; assigned risk plan
Specifies exemptions for placing an employer in an assigned risk plan.
HB2034 ASRS; supplemental employee deferral plan
Specifies that an employee of a political subdivision or a political subdivision entity who is participating in a public retirement system is not eligible to participate in a supplemental employee deferral plan.
HB2035 ASRS; termination incentive programs
Defines unfunded liability for the purpose of assessing a cost for an unfunded liability resulting from or resulting from a termination incentive program.
HB2036 ASRS; temporary personnel service
Allows an ASRS employer to provide an active ASRS member who is appointed as temporary personnel by a federal agency with credited service for not more than 60 months of temporary personnel service.
HB2077 ASRS; long-term disability
Specifies that for an ASRS member to be considered as having a disability, the member must have developed the disability while employed by an ASRS employer.
HB2080 public retirement systems; administration
Allows a member who was not an active, inactive or retired member of the elected officials’ retirement plan to receive benefits if the member develops a total disability. Outlines certain contribution requirements if a retired member becomes reemployed in any capacity, including as a contracted or leased employee, by their former employer 6 months after retirement.
HB2689 cancer insurance; retirees; public safety
Makes various changes relating to the public safety cancer insurance policy program. Specifies that eligible persons may continue to receive coverage if they pay the cost of the premium paid by each employer. Allows a person who did not receive covered benefits to continue to receive coverage by paying the premium. Removes the cancer diagnosis requirement for continued coverage under the program after retirement if specified criteria are met. Allows individuals eligible for the program who did not receive covered benefits after retirement to continue coverage if they submit a request by January 1, 2027. Extends the supplemental benefit plan for public safety employees who are injured while on duty. Repeals various statutes. Effective January 1, 2026.
SB1159 employment practices; wage claims
Increases the monetary cap for filing an unpaid wage claim with the Industrial Commission of Arizona (ICA) from $5,000 to $12,000.
SB1287 PSPRS; part-time employment
Makes several changes to PSPRS statutes and definitions. Provides that, beginning on July 1, 2026, a public employer may allow part-time patrol officers to participate in PSPRS so long as they: (1) are certified peace officers; (2) earned at least 3 years of credited service in PSPRS or the PSPRS Defined Contribution Plan prior to hire as a part-time patrol officer; and (3) are consistently scheduled to work 20-30 hours per week. Requires the part-time patrol officer to also meet both of the following: (1) the officer entered into a written agreement with the employer before July 1, 2031, to work part-time no longer than 3 years due to a specified qualifying event; and (2) the officer has not worked part-time for more than 6 years. Prohibits the part-time patrol officer from performing off-duty work. Creates a formula for a part-time patrol officer who is a PSPRS member to receive accidental, ordinary, or catastrophic disability pension.
SB1461 law enforcement officers; probation; termination
Prohibits the termination of a law enforcement officer for failing to complete a probationary period subject to exceptions. Continues to allow an employer to demote an officer for failing to complete a probationary period and to terminate the officer for just cause.
SB1551 workers’ compensation; disability; definitions
Revises the schedule of fees relating to workers’ compensation relating to health care, dental care, and supplies. Requires the fee schedule for workers’ compensation to include fees to be charged by providers of health care, dental care and supplies for injured employees. Modifies the allowance for dependent persons of an employee with temporary total disability from $25 to $100. Adds that the increase to the monthly dependent allowance applies only to claims that are filed on or after the effective date. Modifies the definition of interest party to include the third-party administrator or an authorized representative of a deceased employee. Modifies the definitions of serve and service to include transmitting by electronic transmission in a manner reasonably calculated to achieve effective notice unless the receiving party opts out by providing written notice to the other party.
Part 7: Ballot Referrals
HCR2021 food; municipal tax; exemption
(Transmitted to the Secretary of State, 6/23/25)
Prohibits cities, towns, and other taxing jurisdictions from imposing a transaction privilege tax, sales tax, or similar tax on food items intended for home consumption after June 30, 2027, unless specific requirements are met. Establishes conditions for jurisdictions that had imposed such a tax before January 1, 2025, including restrictions on tax increases within the two years preceding June 30, 2027. Municipalities with food tax rates above 2% may not raise those rates any further. Municipalities with food tax rates below 2% or without a food tax may only enact or increase their food tax up to 2% upon voter approval. Retroactive to January 1, 2025.
SCR1004 prohibit tax; monitoring; vehicle mileage
(Transmitted to the Secretary of State, 6/16/25)
Prohibits the state, counties, cities, towns, municipal corporations, and other political subdivisions of this state from imposing a tax or fee on any person based on the vehicle miles traveled by the person in a motor vehicle or any rule or law to monitor the vehicle miles traveled by a person in a motor vehicle. Outlines certain exceptions.
New Laws Report Is published annually by the League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007
Phone: (602) 258-5786; Fax: (602) 253-3874; Email: league@azleague.org; Internet: www.azleague.org