General Information Packet

Summary

The 2026 State Legislative Session has introduced a significant volume of legislation, with 2,116 bills as of February 11. The City's Office of Government Relations is prioritizing the preservation of shared revenues, opposing unfunded mandates, protecting local authority, and addressing water resource matters.

Key Bills Opposing Local Authority & Fiscal Health:

• Several bills directly oppose local control, including HB 2118 (eliminating local mobile food vendor licensure), HB 2588 and SB 1431 (prohibiting municipalities from requiring HOAs or enforcing design standards for single-family homes/ADUs), and HB 2610 (requiring municipalities to reimburse telecommunications utilities for relocation costs up to 2% of bond proceeds).
• HB 4030 and HCR 2052 propose a moratorium on increasing local fees, transaction privilege tax rates, surcharges, or utility rates from July 1, 2026, through June 30, 2030, unless voter-approved, which the City opposes. SB 1745 would limit transaction privilege tax rates for large cities/towns to 2.5% without voter approval.

Water Resource Legislation:

• The City opposes several bills that would alter assured water supply requirements, limit ADWR's authority, or impose water loss limits (HB 2026, HB 2027, HB 2028, HB 2052, HB 2095, SB 1288).
• The City supports HCR 2038 for a seven-state Colorado River agreement and HB 2116, which appropriates $1 million to the Colorado River Litigation Fund. Other water-related bills include studies on fuel formulations (HB 2014, $200,000), brackish groundwater (HB 2056, $100,000), and stormwater recharge mapping (HB 2053, $100,000).

Key Bills Supported by the City:

• HB 2224 appropriates $2 million annually for the Produce Incentive Program.
• HB 2185 prohibits HOAs from requiring lawn overseeding/watering during drought.
• HB 2720 reclassifies paying for prostitution as a felony and imposes a $200 assessment for anti-human trafficking efforts.
• HB 2793 streamlines annexation procedures.
• HB 2950 authorizes municipalities to form tourism improvement areas funded by lodging business assessments (up to $5 or 5% per room).
• SB 1471 establishes a School Mapping Data Program for emergency response.
• SB 1673 appropriates $8.2 million to the Law Enforcement Crime Victim Notification Fund.

Other Notable Legislation:

• Elections: HB 2022 (signed by Governor) moves the primary election to the last Tuesday in July. Other bills propose constitutional amendments for voter ID, ending early voting, and restricting voting centers.
• Public Safety: Bills address fentanyl sentencing (HB 2132, SB 1061), and enhanced penalties for crimes against vulnerable pedestrians (HB 2064).
• Fiscal/Tax: HB 2153 and HB 2785 (opposed by City) update state income tax conformity to federal code, expanding subtractions. HB 2792 provides a full property tax exemption for 100% service-disabled veterans.

Citizen Impact

Residents could experience reduced local control over community development, business regulations, and municipal finances if bills limiting city authority and imposing tax/fee moratoriums pass. Changes to water supply regulations and funding for water projects will directly affect future water availability and costs. Additionally, shifts in election procedures, public safety measures, and tax policies could impact daily life and civic participation.

Confidence

high