Arizona small businesses struggling with rising health insurance costs will soon have more coverage options after Gov. Katie Hobbs signed HB 2693, legislation spearheaded by the Arizona Chamber of Commerce & Industry that expands access to multiple employer welfare arrangements, or MEWAs.

Nationally, the pressure is especially acute for the smallest employers. A 2024 JPMorganChase Institute analysis found that health insurance premiums consumed a larger share of compensation costs for lower-revenue businesses, with firms under $600,000 in annual revenue seeing a median health insurance payroll burden of nearly 12%, compared with 7% for firms above $2.4 million.

Sponsored by Rep. David Livingston (R-Peoria), the legislation allows small employers to join qualifying organizations, like the Arizona Chamber, that can negotiate health benefits on behalf of a broader pool of participants. For Arizona鈥檚 smaller employers, the MEWA model offers a framework to build greater purchasing power in a market that often gives larger businesses more leverage.

鈥淭his bill is about giving small businesses more choices,鈥� Rep. Livingston said. 鈥淲hen employers can come together through an association, they have a better opportunity to access coverage the way larger employers do, with more people in the risk pool and more leverage to manage costs.鈥�

The law also expands eligibility to include sole proprietors, working owners, and employers with as few as two eligible employees. When coverage is available, eligible employers may be able to seek plans through a qualifying statewide chamber of commerce or a statewide business league.

Arizona is not starting from scratch. Similar MEWA models are already in use in other states, including Missouri, where the Missouri Chamber Federation鈥檚 Chamber Benefit Plan has used a MEWA structure since 2017 to help small employers join a larger self-funded pool. The Missouri Chamber says the plan has grown to nearly 4,000 covered groups and more than 45,000 covered individuals.

As HB 2693 moves into implementation, Missouri鈥檚 experience provides Arizona policymakers and business leaders with a useful point of reference for how a similar model can expand coverage options for small employers.

鈥淗B 2693 allows for greater flexibility, expanded choice, improved stability, and lower costs,鈥� said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. 鈥淔or small businesses working to attract and retain talent, those benefits can make a meaningful difference for employers and employees across Arizona.鈥�

Thanks to this legislation, the Chamber is launching a MEWA program that will help Arizona鈥檚 small businesses, the backbone of our economy, have access to more affordable and flexible health coverage.

As that program takes shape, the Arizona Chamber of Commerce & Industry has created an HB 2693 website where employers can learn more about MEWA and add their support for expanding health coverage options for Arizona small businesses.

For small employers facing rising benefit costs, HB 2693 creates a new option for more stable, affordable coverage, helping businesses better support employees and compete for talent.

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The Arizona Court of Appeals Division Two has upheld a lower court ruling in favor of the Town of Marana in a referendum dispute tied to a planned hotel development.

In a memorandum decision filed June 23, the Court of Appeals affirmed the Pima County Superior Court鈥檚 ruling denying requests from Arizonans for Responsible Development to force Marana to process referendum petitions challenging a town development agreement.

The case centered on a Marana resolution approving a development agreement for approximately 19 acres of town-owned property near Marana Main Street and Civic Center Drive. The agreement is tied to the Rancho Marana West Town Center Specific Plan, which was adopted in 2008 and contemplated a mixed-use town center with commercial, retail, office, institutional, entertainment and residential uses.

Arizonans for Responsible Development submitted referendum petitions seeking to refer the resolution to voters. Marana rejected the petitions, arguing the resolution implemented previously adopted policy and was administrative rather than legislative. Under Arizona law, legislative acts may be subject to referendum, while administrative acts generally are not.

The superior court sided with Marana earlier this year, finding the resolution was administrative and not subject to referendum. The Court of Appeals agreed.

The Arizona Chamber of Commerce & Industry participated in the case as amicus curiae through the Arizona Chamber Legal Center.

鈥淭his decision is an important affirmation of the principle that referendum powers cannot be used to relitigate every administrative step needed to carry out an already-approved development plan,鈥� said Mike Bailey, general counsel and director of legal reform programs for the Arizona Chamber. 鈥淎rizona鈥檚 referendum process is an important constitutional right, but there has to be a clear line between creating new policy and implementing policy that has already gone through the public process. That distinction matters for communities, employers and developers who need certainty to move projects forward.鈥�

In its decision, the Court of Appeals said the Marana resolution did not create new policy. Rather, the court found that the development agreement implemented the requirements of the Rancho Marana West Town Center Specific Plan Amendment, which had already been adopted by a 2008 ordinance.

The court wrote that the development agreement 鈥渇urthers an already-declared policy鈥� and later concluded the resolution was 鈥渘ot legislative but administrative and is therefore not referable.鈥�

The court also rejected the challengers鈥� broader statutory argument that all development agreements are automatically subject to referendum under Arizona law. The court said Arizona statute does not expand the traditional limits on local referendum power and noted that if the Legislature intended to make all development agreements subject to referendum, 鈥渋t could have said so clearly.鈥�

Bailey said the ruling is especially important as Arizona communities work to advance projects that support housing, hospitality, commercial development and job creation.

鈥淓conomic development depends on a process that is transparent, predictable and fair,鈥� Bailey said. 鈥淲hen a community has already adopted a plan, and a later action simply carries out that plan, businesses should not face endless uncertainty over whether that implementation step can be delayed or derailed. This ruling helps reinforce that common-sense boundary.鈥�

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The Arizona Legislature wrapped up its 2026 session after 153 days, leaving the state’s business community with a mix of accomplishments to celebrate and concerns about Arizona鈥檚 long-term competitiveness.

Business leaders pointed to several significant victories, including expanded health coverage options for small employers, additional infrastructure funding to support economic development projects, preservation of key economic development tools, and a bipartisan budget that avoided broad-based tax increases. At the same time, they expressed concern about reductions to public university funding, the repeal of a longstanding job-creation incentive, and policy changes affecting future data center investment.

鈥淟ike most sessions in divided government, this legislative session delivered a mixed bag of results for job creators,鈥� said Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry. 鈥淭he good news is that Arizona continues to demonstrate a commitment to economic growth, competitive tax policy, and job creation. The challenge moving forward is ensuring we don’t undermine the very advantages that have made Arizona one of the most attractive places in the country to invest and grow.鈥�

Among the business community’s top priorities this year was legislation aimed at helping small employers provide affordable health coverage to workers.

HB 2693, sponsored by Rep. David Livingston and signed into law by Gov. Katie Hobbs, creates a pathway for small businesses to join together through a statewide business organization to purchase health coverage. Supporters say the measure will allow smaller employers to increase purchasing power, reduce costs, and provide more stable benefit options.

鈥淪mall businesses often face the greatest challenges when it comes to offering competitive health benefits,鈥� Coolidge said. 鈥淭his legislation creates a voluntary, market-based option that gives employers more flexibility and employees more choices.鈥�

Another significant victory came through the state budget, which included additional funding capacity for Arizona’s Public Infrastructure Program, a tool frequently used to support large-scale economic development projects.

The program helps communities finance roads, water systems, and other infrastructure needed to accommodate major investments. It has been utilized in projects involving companies such as TSMC, Intel, Amkor, and LG Energy Solution Arizona.

鈥淎rizona’s economic success depends on our ability to compete for transformational projects,鈥� Arizona Manufacturers Council Executive Director Grace Appelbe said. 鈥淭hose investments don’t happen without infrastructure, and communities need tools that allow them to prepare for growth.鈥�

The Chamber also praised lawmakers for largely preserving the Arizona Competes Fund, one of the state鈥檚 primary economic development incentives. Early budget discussions included proposals to sweep money from the fund to help address budget shortfalls, but the final agreement maintained most of the program.

In addition, the budget included full conformity with recent federal tax changes, avoided broad-based business tax increases, and provided funding to support Arizona鈥檚 ongoing Colorado River negotiations.

Still, business leaders say several decisions made during the session could create challenges in the years ahead.

One of the biggest concerns was the repeal of the Quality Jobs Tax Credit, a program designed to encourage companies to create high-wage jobs and make major capital investments in Arizona.

The Chamber also expressed concern over a three-year pause on issuing new sales tax exemption certificates for future data center projects. While existing projects will continue under current agreements, supporters of the incentive argue that uncertainty surrounding future projects could make Arizona less competitive in attracting additional investment.

鈥淭he state鈥檚 economic momentum didn’t happen by accident,鈥� Coolidge said. 鈥淔or years, Arizona has built a reputation for consistency and predictability. We don鈥檛 want to send a message to investors that they can鈥檛 plan for the long-term.鈥�

Higher education funding remains another area of concern for the business community.

Arizona employers have increasingly emphasized the importance of workforce development as the state鈥檚 economy continues to expand. Business advocates warned that cuts to public universities could affect the talent pipeline needed to support growth in industries ranging from advanced manufacturing and semiconductors to healthcare and technology.

鈥淲orkforce remains one of the defining economic issues facing Arizona,鈥� Coolidge said. 鈥淚f we want to continue attracting investment and creating opportunity, we have to continue investing in the talent that makes those opportunities possible.鈥�

Attention will now shift from the Legislature to voters, who will weigh in on several measures referred to the ballot by lawmakers, as well as potential citizen initiatives that are still gathering signatures.

For Arizona employers, the end of the legislative session marks the beginning of another important phase in shaping the state’s economic future.

鈥淎rizona remains in a strong position,鈥� Coolidge said. 鈥淚n the months ahead, we鈥檒l encourage voters to elect leaders who will continue making the decisions necessary to stay ahead of states that are competing for the same jobs, investments, and talent.鈥�

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A Maricopa County Superior Court judge has upheld the constitutionality of an Arizona law designed to help mid-sized cities attract large international headquarters projects, delivering a win for state business groups and economic development advocates.

Senate Bill 1543 was passed in 2025 amid debate surrounding Axon Enterprise鈥檚 proposed headquarters expansion in Scottsdale, which included plans for housing, hotels, restaurants, and other commercial development surrounding the company鈥檚 corporate campus.

Supporters argued the measure would help Arizona compete for major corporate and international headquarters investments by giving qualifying cities additional flexibility for large mixed-use campus developments. Critics, meanwhile, argued the bill amounted to unconstitutional 鈥渟pecial legislation鈥� tailored specifically for Axon鈥檚 project.

A lawsuit was brought by Scottsdale-based TAAAZE, a political action committee that argued the law improperly carved out special treatment for certain developments and effectively bypassed local referendum efforts.

In a ruling issued late last week, Judge Michael Herrod rejected those claims, finding that the measure serves a broader statewide economic development purpose by helping attract major international headquarters investments to Arizona.

鈥淭he statewide problem addressed by A.R.S. 搂 9-461.19 is attracting international headquarters,鈥� the ruling states. 鈥淭he legislature has made a determination that to address this problem, cities of middle-sized populations are likely candidates to attract such headquarters.鈥� 

The court further concluded that because the statute could apply to other qualifying cities and projects in the future, it is not a special law.

The Arizona Chamber of Commerce & Industry, which filed an amicus brief in the case, said the decision reinforces the state鈥檚 ability to compete for major employers and long-term investment.

鈥淭his ruling is about much more than a single project,鈥� said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. 鈥淎rizona鈥檚 economic growth depends on our ability to compete for major employers, attract high-wage jobs, and create an environment where companies can invest with confidence. The court recognized that the Legislature has the authority to pursue policies that support statewide economic development and long-term competitiveness.鈥�

Mike Bailey, the Chamber鈥檚 general counsel and director of legal reform programs, said the ruling should result in additional clarity around the Legislature鈥檚 role in zoning and economic development policy.

鈥淭he court affirmed an important legal principle here: zoning authority ultimately flows from the state, and the Legislature has broad discretion to address matters of statewide concern,鈥� Bailey said. 鈥淭he decision also reinforces that laws aimed at encouraging economic development are not unconstitutional simply because they may initially apply to a limited number of jurisdictions or projects.鈥�

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A recent court decision in Pima County is being viewed as a meaningful win for Arizona’s business and development community, reinforcing long-standing legal boundaries around when local actions can be challenged by referendum.鈥��&苍产蝉辫;

The April 30 ruling denied a petition filed by a group called Arizonans for Responsible Development, which had sought to force the Town of Marana to process a referendum challenge to a development agreement tied to a hotel project on approximately 19 acres of town-owned property in downtown Marana. Judge Jeffrey T. Bergin found that the town’s action was administrative rather than legislative, meaning it is not subject to referendum under Arizona law.鈥��

The practical effect: the project can move forward subject to appellate review.鈥��&苍产蝉辫;

Why it matters for Arizona’s business community鈥�鈥�&苍产蝉辫;

Mike Bailey, general counsel and director of legal reform programs for the Arizona Chamber, said the ruling has implications well beyond Marana.鈥��&苍产蝉辫;

“This decision reinforces an important principle: when a community has already gone through a public process to establish its development鈥痯lan, a resolution that carries out that鈥痯lan鈥痵houldn’t have to start from scratch,” Bailey said. “Using the referendum process to relitigate settled land-use policy is a tactic we’re seeing more frequently, and it creates real uncertainty for businesses and communities trying to plan ahead.”鈥�&苍产蝉辫;

Arizona Chamber President and CEO Danny Seiden said the case reflects a broader pattern the Chamber has been watching closely.鈥��&苍产蝉辫;

“Communities across Arizona are working hard to attract investment and create jobs, and that work depends on a process that’s predictable and transparent,” Seiden said. “When development projects that have gone through proper public channels get tied up in legal challenges designed to delay or derail them, everyone loses. This ruling is a good outcome for Marana and a good outcome for Arizona.”鈥��&苍产蝉辫;

The legal background鈥�鈥�&苍产蝉辫;

The central question was whether the town’s resolution created鈥痭ew鈥痯olicy or simply carried out a framework already in place. The court found that the resolution implemented zoning and land-use parameters鈥痚stablished鈥痭early two鈥痙ecades ago through a 2008 ordinance that created the Downtown Marana plan. Because it executed existing policy rather than鈥痚stablishing鈥痭ew鈥痯olicy, the court concluded it was administrative in nature and not subject to referendum.鈥��&苍产蝉辫;

The plaintiffs had also argued that state law requires all development agreements to go through the referendum process.  

The court rejected that argument as well, consistent with prior Court of Appeals rulings on the same question.鈥��&苍产蝉辫;

A second case, a similar outcome鈥�&苍产蝉辫;

In a separate but related case, the court also ruled in favor of the Town of Marana in a dispute over referendum petitions tied to a proposed data center project.鈥�&苍产蝉辫;

In that case, the court granted summary judgment affirming the Town Clerk’s decision to reject the petitions after finding they did not鈥痵trictly comply鈥痺ith Arizona’s statutory requirements governing referendum filings.鈥��&苍产蝉辫;

The ruling reinforces another key principle: even when a referendum is鈥痯ermitted, the process must be followed precisely. Arizona statutes establish a strict compliance standard to ensure voters have full and鈥痑ccurate鈥痠nformation when considering ballot measures.鈥�&苍产蝉辫;

Together, the two rulings draw clearer lines around both when referendums can be used and how they must be executed 鈥� distinctions that matter to businesses and communities trying to plan and invest with confidence.鈥�&苍产蝉辫;

The鈥痙ecisions鈥痗ome as the Arizona Chamber continues to push for local ballot reform at the Legislature through SB 1429 and HCR 2051,鈥痑imed at鈥痓ringing鈥痝reater consistency and transparency to the initiative and referendum process at the local level.鈥�&苍产蝉辫;

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The Industrial Commission of Arizona voted last week to adopt strengthened workplace heat safety guidelines for employers statewide, delivering an outcome the business community called a practical, Arizona-driven solution to a genuine challenge.

The commission’s action follows nearly a year of work by the Governor’s Workplace Heat Safety Task Force, which brought together business, labor, and occupational safety experts to develop guidance grounded in real-world conditions. The Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council participated throughout that process, with Grace Appelbe representing both organizations.

Appearing before the commission, Appelbe urged members to support the task force recommendations, describing them as the product of genuine collaboration and the right fit for the state’s diverse economic landscape.

“The recommendations before you reflect a thoughtful, Arizona-specific approach grounded in real-world experience,” Appelbe told the commission. “They focus on practical measures 鈥� water, shade, rest, acclimatization, and training 鈥� while preserving the flexibility needed across different industries and job sites.”

The guidelines adopted by the commission build on the Arizona Division of Occupational Safety and Health’s existing Heat Stress State Emphasis Program, launched in 2023. In the months ahead, the commission will expand employer training on heat risks, encourage the development of workplace heat safety plans, and collect data on the effectiveness of heat safety interventions across the state. Commissioners plan to revisit the recommendations in December.

For Arizona’s business community, the outcome reflects a broader principle that worker safety and economic sustainability are not in conflict 鈥� but that the path to both runs through collaboration rather than mandate.

“That balance is critical,” Appelbe said in her testimony. “In other states, more rigid, one-size-fits-all mandates have created compliance challenges without necessarily improving outcomes. Arizona has taken a better approach 鈥� one that prioritizes safety while recognizing operational realities.”

The commission’s chairman described the vote as a beginning rather than an endpoint, noting that guidelines carry the advantage of taking effect immediately, allowing employers to act now while the state continues gathering data to inform any future rulemaking.

Appelbe told the commission that the Arizona Chamber and Manufacturers Council are prepared to be active partners in what comes next. “We stand ready to work with the Commission and its staff on the distribution and implementation of these employer guidelines to ensure Arizona’s workers are informed and protected,” she said.

The Arizona Chamber and Manufacturers Council have been engaged in the heat safety conversation since the task force was convened by executive order in 2025. Appelbe said the business community’s consistent goal throughout has been to ensure that any guidance coming out of the process works in actual workplaces 鈥� across manufacturing floors, construction sites, agricultural operations, and the full range of industries that make up Arizona’s economy.

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The Arizona Chamber of Commerce & Industry has filed an amicus brief in Maricopa County Superior Court defending the constitutionality of a state law designed to support large-scale economic development projects and protect private property rights. 

The brief was filed in a lawsuit challenging A.R.S. 搂 9-461.19, legislation enacted last year that creates a framework intended to open mid-sized cities for major corporate headquarters and other significant development projects. 

The lawsuit is widely viewed as tied to a proposed international headquarters project by Arizona-based public safety technology company Axon in Scottsdale. But the Chamber argues the case raises broader issues about property rights, regulatory certainty, and Arizona鈥檚 ability to attract major investments. 

In its filing, the Chamber urged the court to reject a request for a preliminary injunction that would halt implementation of the law while the case proceeds. 

鈥淭he ability to invest in and develop private property is fundamental to Arizona鈥檚 economic success,鈥� said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. 鈥淲hen projects that have been properly approved can be tied up indefinitely in litigation, it creates uncertainty that makes it harder for businesses to invest, expand, and create jobs in our state.鈥� 

The Chamber鈥檚 filing emphasizes that the law is not limited to any single company or project. Instead, it establishes a classification for mid-sized cities intended to support economic growth and address development challenges that may arise in those communities. 

The brief argues that population-based classifications used in the law are a common and constitutionally recognized legislative tool, and that Arizona courts have repeatedly upheld similar frameworks. 

鈥淟arge employers will not invest billions of dollars in communities where approved projects can be stalled indefinitely through litigation,鈥� Seiden said. 鈥淧rotecting private property rights and maintaining regulatory certainty are essential if Arizona wants to remain competitive for major investments.鈥� 

Mike Bailey, general counsel & director of legal reform programs for the Arizona Chamber, said the case ultimately raises broader constitutional and economic questions. 

鈥淭his case is about whether the Legislature can enact reasonable policies that support economic growth while respecting constitutional limits,鈥� Bailey said. 鈥淭he law reflects a rational policy choice by the Legislature, and courts have long recognized that population-based classifications like this are constitutionally legitimate.鈥� 

The Chamber said the outcome of the case could have implications beyond the current dispute, particularly as Arizona continues competing for large-scale investments and international headquarters projects. 

In its brief, the Chamber argues the court should deny the request for an injunction and allow the law to remain in effect while the case proceeds. 

Image courtesy 听听

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As negotiations over the future of the Colorado River intensify and deadlines draw nearer, Arizona鈥檚 leading business organization is urging state leaders to hold firm for a fair, durable agreement that does not place a disproportionate burden on Arizona鈥檚 economy.

Arizona Chamber of Commerce & Industry President and CEO Danny Seiden warned that current federal proposals would force Arizona to shoulder more than its fair share of water reductions once existing operating guidelines expire in 2026.

鈥淎s federal officials consider new rules for managing the Colorado River after 2026, Arizona is being asked to shoulder more than its fair share of the cuts,鈥� Seiden said. 鈥淭hat is not acceptable, and we need our state鈥檚 leaders across both political parties to step up and aggressively push back.鈥�

The Chamber is speaking out as the seven Colorado River Basin states work toward a new long-term framework governing water use amid a decades-long megadrought. The Arizona business community is argues that the Upper Basin must commit to enforceable reductions to stabilize the river system.

Business community raises alarm over federal proposals

At the center of the dispute is the U.S. Bureau of Reclamation鈥檚 Draft Environmental Impact Statement, which Arizona officials and business leaders argue places disproportionate risk on the Lower Basin.

Seiden said every alternative currently on the table shifts unequal responsibility to Arizona, with particularly severe consequences for the Central Arizona Project 鈥� a critical water supply for cities, agriculture, and industry 鈥� while allowing Upper Basin states to continue increasing water use.

鈥淭he 鈥榥o deal鈥� option would devastate Arizona and the Central Arizona Project while leaving Upper Basin supplies untouched,鈥� Seiden said. 鈥淎rizona has spent decades investing in conservation, infrastructure, and smarter water management. We are willing to do our part, but we will not accept a federal approach that forces Arizona communities, tribal water users, and nationally critical industries to absorb unequal impacts so others can avoid shared responsibility.鈥�

Hobbs: progress, but no deal by Feb. 14

Governor Katie Hobbs has acknowledged that a comprehensive agreement is unlikely by the federal government鈥檚 Feb. 14 deadline, though she says recent talks mark meaningful progress.

Following an unprecedented meeting of all seven basin governors in Washington, D.C. last week, Hobbs said she sensed increased willingness from Upper Basin states to discuss firm commitments to water conservation 鈥� a shift Arizona officials have long sought.

鈥淎rizona and the Lower Basin cannot and will not be balancing the Colorado River on our own,鈥� Hobbs was quoted by , noting that Lower Basin states have already agreed to take the first 1.5 million acre-feet of annual cuts, representing roughly 27% of Arizona鈥檚 Colorado River supply.

Hobbs emphasized that Arizona will not go beyond that threshold absent mandatory, enforceable reductions by Upper Basin states.

Conservation record strengthens Arizona鈥檚 case

Arizona Department of Water Resources Director Tom Buschatzke reinforced that message in recent testimony before the Arizona House Natural Resources, Energy & Water Committee.

Buschatzke highlighted that since 2007, the Lower Basin has conserved nearly 9 million acre-feet of water in Lake Mead, including more than 4.2 million acre-feet by Arizona alone, actions he said prevented the reservoir from reaching 鈥渄eadpool鈥� levels years ago.

鈥淎rizona has done the heavy lifting,鈥� Buschatzke told lawmakers, adding that Upper Basin states have consistently resisted enforceable conservation requirements.

Any final agreement, he noted, must stabilize Lake Mead, require meaningful use of upstream reservoirs, and include real water-use reductions in the Upper Basin. The agreement will ultimately require approval from the Arizona Legislature, a safeguard unique among basin states.

Chamber calls for shared accountability, state House prepares for litigation

For Arizona鈥檚 business community, the stakes extend well beyond water policy.

Arizona Chamber CEO Seiden says that water security underpins Arizona鈥檚 ability to support advanced manufacturing, agriculture, tribal communities, and a rapidly growing economy critical to national supply chains.

鈥淭he best outcome remains a fair, durable seven-state agreement that reflects shared risk and shared accountability,鈥� Seiden said. 鈥淚f that does not happen, and Arizona continues to be singled out under a federal path forward, the business community is prepared to defend Arizona鈥檚 legal rights and pursue every available option to protect our economy and water security.鈥�

At a legislative level, the Arizona House of Representatives on Tuesday unanimously passed H.B. 2116, bipartisan legislation sponsored by Rep. Gail Griffin (R-Hereford) to strengthen Arizona鈥檚 legal defense fund in the event of litigation over Colorado River water.

The bill appropriates $1 million in fiscal year 2027 to the Colorado River Litigation Fund, which was created in 2025 to be used solely by the Arizona Department of Water Resources to take legal action, if necessary, to protect and defend Arizona鈥檚 lawful entitlement to Colorado River water.

鈥淎rizona does not get to wish its way out of a water fight,鈥澨鼼riffin said. 鈥淥ther states have been positioning themselves for court long before this fund was created. Hopefully, the fund will not be needed, but if it is鈥攖his bill makes sure that Arizona is ready to defend the water that millions of people and billions of dollars of economic activity, depend on. Waiting until a lawsuit is filed to start planning would be reckless. HB 2116 puts Arizona on offense, not defense.鈥�

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Arizona employers are taking a proactive, collaborative approach to workplace heat safety听that recognizes听the realities of diverse industries and job sites across the state.听

Gov. Katie Hobbs on December 31 announced that the Workplace Heat Safety Task Force had finalized and submitted its recommendations to the Industrial Commission of Arizona, delivering a set of Heat Guidelines for Employers grounded in real-world best practices and Arizona-specific conditions . 

The task force, which was convened by a 2025 executive order, brought together leaders from business, labor, and industry, along with occupational safety and health experts, to develop commonsense guidance for employers.  

The Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council participated in the process to ensure that employer perspectives were front and center throughout the discussions. 

The finalized recommendations focus on proven strategies to prevent heat-related illness, including access to water, shade, and rest; employee acclimatization; and heat safety training. Importantly for Arizona employers, the guidelines also clarify definitions, outline best practices for employer Heat Illness Prevention Plans, and include specific exemptions for emergency operations, recognizing that not all job sites or industries face the same conditions. 

For the Arizona Chamber and the Arizona Manufacturers Council, participation in the task force was about ensuring that worker safety and economic sustainability go hand in hand. 

鈥淭his task force brought together employers, workers, and subject-matter experts from across Arizona to focus on what actually works in real workplaces,鈥� said Grace Appelbe, executive director of the Arizona Manufacturers Council and director of government affairs at the Arizona Chamber of Commerce & Industry. 鈥淭he recommendations reflect commonsense best practices many employers already use and provide clear, Arizona-specific guidance that prioritizes worker safety while recognizing the diversity of industries and job sites across our state.鈥� 

That emphasis on flexibility was a consistent theme throughout task force discussions, particularly for sectors like manufacturing, construction, utilities, and small business, where work environments, schedules, and operational demands can vary significantly. 

Next steps, ongoing implementation 

Following the task force鈥檚 work, the Arizona Division of Occupational Safety and Health (ADOSH) will take additional steps to implement the governor鈥檚 executive order, including publishing annual data on heat-related claims, complaints, and citations, and providing downloadable template heat plans to help employers put the guidance into practice. 

The ADOSH Advisory Committee is scheduled to review the recommendations at a public meeting on February 4 before they advance to the Industrial Commission for final consideration later this spring.  

Appelbe said that for Arizona鈥檚 business community, the Workplace Heat Safety Task Force demonstrates the value of collaboration over mandates.  

鈥淏y bringing employers, workers, and regulators to the same table, the state has produced guidance that improves safety outcomes without undermining productivity or imposing rigid, one-size-fits-all rules,鈥� she said. 

Appelbe said the Arizona Chamber and the Arizona Manufacturers Council will continue to engage with state agencies and stakeholders as these recommendations move forward, ensuring that Arizona remains both a safe place to work and a competitive place to do business. 

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More than two dozen Arizona chambers of commerce have joined a massive coalition of over 500 business and agriculture groups nationwide in a letter urging the Trump administration to preserve the United States-Mexico-Canada Agreement (USMCA).

, sent December 1 to U.S. Trade Representative Jamieson Greer, comes as the three North American nations prepare for the agreement’s “joint review,” a critical stipulation of the trade deal scheduled for 2026 that could determine the pact’s long-term survival.

While acknowledging that certain compliance issues require remediation, the coalition emphasized that USMCA remains “critical to our economic future” by guaranteeing tariff-free access to the two markets that buy more made-in-America manufactured goods than the next 12 largest export markets combined.

Arizona’s trade ties

For Arizona, the stakes of the USMCA review are disproportionately high. The state鈥檚 economy is deeply integrated with its North American neighbors, particularly Mexico, which consistently ranks as Arizona’s top trading partner.

“Not only does USMCA help solidify North America鈥檚 economic power, but it should also serve as an example globally of how tariff-free trade can contribute to economic growth,” said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. “Arizona benefits from predictable, rules-based, tariff-free trade. We should be doing all we can to live up to the letter and spirit of USMCA.”

Recent data underscores the vitality of these trade relationships. In 2024, Arizona exports to Mexico reached approximately $9.0 billion, accounting for over a quarter of the state’s total exports to the world. Meanwhile, Canada remains Arizona’s second-largest export destination, purchasing roughly $3.0 billion in Arizona goods annually.

The coalition letter notes that nationwide, more than 13 million American jobs depend on trade with Canada and Mexico. In Arizona, these trade flows support sectors ranging from aerospace and electronics to fresh produce and mining.

Chambers across state supportive of USMCA

The letter to Ambassador Greer featured a strong showing communities both urban and rural. In addition to the Arizona Chamber, signatories included the Greater Phoenix Chamber, Chamber of Southern Arizona, Tucson Metro Chamber, and the West Valley Chamber of Commerce Alliance.

Rural and regional representation was also significant, with signatures from the Nogales-Santa Cruz County Chamber of Commerce, which is located at the heart of the fresh produce trade corridor, as well as chambers from Yuma County, Lake Havasu, the Bullhead Area, Kingman, and Flagstaff.

Preparing for 2026 review

The upcoming “joint review” is a unique feature of the USMCA. The three nations must confirm in writing whether they wish to extend the agreement. If one party objects, it could trigger a period of annual reviews and create uncertainty for businesses that rely on long-term planning.

The coalition argues that the agreement is vital for small and medium-sized businesses, noting that more than 100,000 such U.S. businesses sell their goods and services to Canada and Mexico.

“The case for maintaining this agreement is strong,” the letter states. “We look forward to working closely with you to preserve these benefits over the course of the joint review.”

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