2026 State Legislative Session Report

Summary

This report provides an update on the 2026 State Legislative Session as of February 18, 2026, detailing 2,118 bills introduced. The City's Office of Government Relations focuses on protecting local authority, maintaining shared revenues, opposing unfunded mandates, and addressing water resources.

Key Bills Opposed by the City:

• Local Authority & Fiscal Impact: Several bills directly challenge municipal governance and financial stability. HB 4030/HCR 2052 propose a moratorium on increasing city/county fees, taxes, and utility rates above FY2025-26 levels from July 1, 2026, through June 30, 2030. HB 2086 prohibits governmental entities from requiring masks or vaccinations. HB 2115 limits administrative costs to 8% of public monies, and HB 2610 requires municipalities to reimburse telecommunications utilities for relocation costs during construction, capped at 2% of bond proceeds. SB 1241 would allow private permitting for residential construction, bypassing local review.
• Water & Land Use: Bills like HB 2026, HB 2027, HB 2095, HB 2099, SB 1288 seek to alter assured water supply requirements, well depth standards, and prohibit long-term storage credits during Colorado River shortages, impacting the City's water planning. HB 2492 proposes to prohibit urban growth boundaries, and HB 2588/SB 1431 would prevent municipalities from requiring HOAs or imposing design/aesthetic requirements for single-family homes.

Key Bills Supported by the City:

• Water & Environment: HB 2116 appropriates $1 million to the Colorado River Litigation Fund, and HCR 2038 supports a seven-state agreement for post-2026 Colorado River operating guidelines. HB 2185 prohibits HOAs from requiring lawn watering during drought.
• Public Safety & Economic Development: HB 2429 authorizes local control over vacation/short-term rental occupancy and limits. HB 2793 streamlines annexation procedures. HB 2950 allows tourism improvement areas funded by lodging assessments (up to $5 or 5% per room/night). SB 1111 restricts automatic license plate readers to criminal investigations/missing persons, limiting data retention to 90 days.

Other Notable Legislation:

• HB 2014 appropriates $200,000 for studies on fuel formulations and feasibility.
• HB 2555 mandates retail businesses accept cash for transactions $100 or less.

Citizen Impact

Residents could face higher utility bills and taxes if the city's ability to manage its budget and local revenue sources is restricted by state mandates. Changes to water resource management could impact future water availability and costs. Conversely, new local control over short-term rentals could help manage neighborhood character, and funding for Colorado River litigation protects the region's water supply.

Confidence

high