Arizona Technology Council 2025 Legislative Session Recap
The Arizona Technology Council, its Public Policy Committee and our lobbying partner Public Policy Partners worked diligently throughout the 57th Legislature’s first regular session, which adjourned sine die on June 27, 2025, after a highly active and contentious few months. In total, 1,724 bills and 130 memorials and resolutions were introduced. Of those, 439 bills passed both chambers, with 265 signed into law and a record-breaking 174 vetoed by Governor Katie Hobbs. All laws not otherwise noted will go into effect on September 26, 2025.
THE COUNCIL’S KEY TAKEAWAYS
Legislative Outcomes
- 439 bills passed both the House and Senate.
- 265 bills were signed into law; 174 were vetoed by Governor Hobbs, setting a new record for a single session.
- 35 memorials and resolutions were adopted.
ARIZONA TECHNOLOGY COUNCIL PRIORITIES
Big Win for Computer Science Education
A top legislative priority for the Council saw success: $1 million in funding for computer science teacher professional development was included in the FY 2026 state budget.
“Arizona’s economic future depends on a highly skilled workforce, and computer science is a foundational part of that future,” said Steven G. Zylstra, president and CEO of the Council and SciTech Institute.
This funding is significant in increasing access to computer science education for K–12 students, ensuring that educators, especially in rural and underserved communities, are equipped to teach foundational computer science skills. This is a first step in working towards ensuring all students have the opportunity to take computer science courses during their educational path and ensuring they are ready for the jobs of today and the future.
ADDITIONAL COUNCIL-TRACKED LEGISLATION
- HB2527 – Corporation Commission; Electricity Reliability
Vetoed
The Council opposed this bill due to concerns over limiting Arizona’s ability to pursue renewable energy options. In her veto message, Gov. Hobbs emphasized that bills which limit clean energy threaten Arizona’s economic growth and grid reliability. - SB1309 – Public Utilities; Electric Grid Improvements
Vetoed
The Council, along with energy sector partners, opposed this bill for its vague definitions and potential to restrict clean energy integration. The Governor’s veto message reinforced the importance of regulatory clarity and energy diversification. - SB1215 – Litigation; Financing; Consumer Protection; Enforcement
Signed
The Council supported this bill which prescribes consumer protection requirements for litigation financing agreements and prohibits a litigation financer from directing or making any decisions with respect to the course of any action that is subject to a litigation financing agreement. Regulation of these agreements protects consumers and ensures that litigation remains balanced and fair.
- SB1307 – Advanced Air Mobility Infrastructure
Signed
The Council, along with aviation technology partners, supported this bill which requires the Arizona Department of Transportation to develop a comprehensive statewide plan, or update the current statewide aviation plan, to include vertiports and electric aircraft charging stations and aviation technology infrastructure needs.
- SB1543 – Ancillary Use; International Headquarters Campus
Signed
Colloquially known as the “Axon Bill,” the Council supported this bill which establishes specified requirements for municipal ancillary use and multifamily residential housing and directs a municipality of 200,000 or more but less than 500,000 persons to allow hotel use and multifamily residential housing as an allowed ancillary use in a zoning district. Once signed into law, the bill paved the way for Axon’s corporate HQ to be built in Scottsdale. Governor Hobbs called the bill a win-win for Axon and Arizona.
- HB2195 – Digital Advertising; Content; Children; Penalty
Signed
The Council supported this bill which prohibits application platforms marketed to children from displaying inappropriate and mature advertisements on the applications.
- SB1538 – Corporation Commission; Non-thermal Generating Unit
Vetoed
The Council opposed this bill, which would have required the Arizona Corporation Commission to review line-siting requirements for all “non-thermal” electric generating units of 200 megawatts or more, such as solar and wind electricity projects. In her veto message, Governor Hobbs wrote that “adding red-tape to energy projects” stifles Arizona’s energy economy and stunts economic growth.
STATE BUDGET
The path to a state budget this session was marked by intense negotiations, vetoes and near shutdowns. Three separate budget proposals were introduced before lawmakers finally passed a $17.6 billion bipartisan budget to avert a government shutdown.
Budget Highlights
- $1 million for computer science teacher training – A major win for the Council.
- $300,000 for the Office of Defense Innovation Office through the Arizona Commerce Authority
- $6 million to Community Colleges Adult Education Workforce Program (Job Training Fund)
- $2 million for the Advanced Air Mobility Fund
- Earlier budget proposals included cuts to essential services like education, childcare and healthcare.
- The final budget reflected bipartisan cooperation, and incorporated key requests from both chambers, which included restoring K-12 education funding and overriding the aggregate expenditure limit for two years.
WHAT LIES AHEAD
- Possible Special Session: Due to federal actions impacting revenue projections, a special session later this year remains a possibility, but is not anticipated unless absolutely necessary.
- Off-Year Elections: 2025 brings a much-needed break from election ads.
- Congressional District 7 Special Election: Adelita Grijalva won the Democratic special primary election. Daniel Butierez won the Republican nomination. Additionally, there were two write-in candidates who will be on the special general election ballot, Libertarian Andy Fernandez Jr and No Labels candidate Richard Grayson. The district has a distinct Democratic stronghold, so Adelita Grijalva is expected follow in her father’s footsteps and win the September 23rd general election.
- 2026 Election Preview:
- Governor: Katie Hobbs is expected to seek reelection, with Andy Biggs and Karen Taylor Robson rumored to compete for the Republican nomination.
- Secretary of State: Adrian Fontes has announced a re-election bid.
- Attorney General: Kris Mayes is likely to run again, with Senate President Warren Petersen and Rodney Glassman already filed.
- Corporation Commission: Two of five seats are up in 2026 with several Republican and Democratic candidates already emerging.
THE COUNCIL’S ONGOING WORK
The Arizona Technology Council continues to monitor and engage with federal, state and local policies that affect the growth, sustainability and competitiveness of Arizona’s innovation ecosystem. From legislative committee rooms to city halls, the Council remains the leading advocate for a technology-focused, pro-business agenda.
STAYTUNED
Our 2026 Public Policy Guide will be released this fall. Until then, you can read our 2025 Public Policy Guide here.