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 ˿����Ƶ 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 — water, shade, rest, acclimatization, and training — 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 — 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 — 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 ˿����Ƶ 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 ˿����Ƶ 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 — 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 ˿����Ƶ 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. § 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 ˿����Ƶ argues the case raises broader issues about property rights, regulatory certainty, and Arizona’s ability to attract major investments. 

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

“The ability to invest in and develop private property is fundamental to Arizona’s economic success,” said Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry. “When 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.” 

The ˿����Ƶ’s 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. 

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

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

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

The ˿����Ƶ 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 ˿����Ƶ argues the court should deny the request for an injunction and allow the law to remain in effect while the case proceeds. 

Image courtesy ����

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

Arizona ˿����Ƶ 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.

“As 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,” Seiden said. “That is not acceptable, and we need our state’s leaders across both political parties to step up and aggressively push back.”

The ˿����Ƶ 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’s 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 — a critical water supply for cities, agriculture, and industry — while allowing Upper Basin states to continue increasing water use.

“The ‘no deal’ option would devastate Arizona and the Central Arizona Project while leaving Upper Basin supplies untouched,” Seiden said. “Arizona 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.”

Hobbs: progress, but no deal by Feb. 14

Governor Katie Hobbs has acknowledged that a comprehensive agreement is unlikely by the federal government’s 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 — a shift Arizona officials have long sought.

“Arizona and the Lower Basin cannot and will not be balancing the Colorado River on our own,” 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’s 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’s 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 “deadpool” levels years ago.

“Arizona has done the heavy lifting,” 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.

˿����Ƶ calls for shared accountability, state House prepares for litigation

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

Arizona ˿����Ƶ CEO Seiden says that water security underpins Arizona’s ability to support advanced manufacturing, agriculture, tribal communities, and a rapidly growing economy critical to national supply chains.

“The best outcome remains a fair, durable seven-state agreement that reflects shared risk and shared accountability,” Seiden said. “If that does not happen, and Arizona continues to be singled out under a federal path forward, the business community is prepared to defend Arizona’s legal rights and pursue every available option to protect our economy and water security.”

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’s 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’s lawful entitlement to Colorado River water.

“Arizona does not get to wish its way out of a water fight,”��Griffin said. “Other states have been positioning themselves for court long before this fund was created. Hopefully, the fund will not be needed, but if it is—this 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.”

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

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

“This task force brought together employers, workers, and subject-matter experts from across Arizona to focus on what actually works in real workplaces,” said Grace Appelbe, executive director of the Arizona Manufacturers Council and director of government affairs at the Arizona ˿����Ƶ of Commerce & Industry. “The 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.” 

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’s work, the Arizona Division of Occupational Safety and Health (ADOSH) will take additional steps to implement the governor’s 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’s business community, the Workplace Heat Safety Task Force demonstrates the value of collaboration over mandates.  

“By 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,” she said. 

Appelbe said the Arizona ˿����Ƶ 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’s 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’s 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 ˿����Ƶ 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.

˿����Ƶs across state supportive of USMCA

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

Rural and regional representation was also significant, with signatures from the Nogales-Santa Cruz County ˿����Ƶ 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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The Arizona ˿����Ƶ of Commerce & Industry led a coalition of Arizona business organizations in supporting the Resolution Copper project as it advances through the federal appeals process.

In an amicus curiae brief — also known as a “friend of the court” brief — filed with the Ninth Circuit Court of Appeals, the ˿����Ƶ urged the court to uphold a district court ruling that found the U.S. Forest Service complied with federal law in approving the project. Other signatories include Greater Phoenix Leadership and organizations representing skilled trade workers across Arizona.

The filing comes as the San Carlos Apache tribe and an environmentalist group appeal a trial court decision denying their request to halt the transfer of federal land to Resolution Copper under the 2014 Southeast Arizona Land Exchange and Conservation Act. The plaintiffs contend that the Forest Service’s environmental review under the National Environmental Policy Act, or NEPA, was inadequate.

The business and trades groups counter that the district court correctly applied the law and that recent Supreme Court guidance in Seven County Infrastructure Coalition v. Eagle County requires judges to give “substantial deference” to agency experts on environmental reviews.

“Mining enterprises like Resolution Copper are major components of Arizona’s economy and indispensable engines of jobs, community enrichment, and tax revenues,” the amicus brief states. It argues that overly intrusive court review of agency decisions has stifled critical projects through “bureaucratic inertia and prolonged litigation.”

According to the filing, the Resolution Copper project represents an estimated $350 million in initial investment, supports hundreds of contractor and skilled-trade positions, and advances U.S. efforts to secure a domestic supply of copper — a key material for clean energy and defense technologies.

Arizona produces about 70 percent of the nation’s copper and ranks among the top three states for nonfuel mineral production. The ˿����Ƶ said the outcome of the case carries broad implications for Arizona’s competitiveness and its ability to attract large-scale projects across the energy and manufacturing sectors.

“This case highlights the importance of clear, consistent environmental review standards,” said Michael Bailey, the ˿����Ƶ’s general counsel. “When courts and agencies apply the law as Congress intended, projects that meet rigorous standards can move forward —bringing jobs, investment, and long-term economic benefits to Arizona.”

The case, Arizona Mining Reform Coalition et al. v. U.S. Forest Service et al., is currently before the U.S. Court of Appeals for the Ninth Circuit.

Photo courtesy Resolution Copper

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With Congress missing the midnight deadline to fund the federal government, leaders from across the business community are warning of the significant economic consequences a shutdown would have on employers, workers, and families. From delayed contracts to shuttered national parks, industry groups say the disruption would ripple through Arizona’s economy and beyond.

Arizona ˿����Ƶ of Commerce & Industry: “Arizona’s economy thrives on stability”

The Arizona ˿����Ƶ of Commerce & Industry is urging swift congressional action to pass a continuing resolution and keep the government open.

“Arizona’s economy thrives on stability,” said ˿����Ƶ President and CEO Danny Seiden. “Prolonged debates that put government operations at risk create ripple effects of uncertainty for employers, workers, and investors alike. The effects of that uncertainty would extend across our economy, delaying critical government contracts and ultimately threatening both Arizona’s industries and the nation’s economic security. We urge Congress to act swiftly to avoid self-inflicted setbacks that weaken America’s competitiveness at home and abroad.”

Arizona Lodging & Tourism Association: National parks at risk

The Arizona Lodging & Tourism Association warned that a shutdown would deal a devastating blow to Arizona’s tourism economy, particularly if it forced the closure of national parks such as the Grand Canyon, Petrified Forest, and Saguaro National Park.

“Families, student groups, and international travelers plan their trips around access to our national parks,” said AzLTA President and CEO Kim Grace Sabow. “If visitors are turned away, the economic ripple effects will extend far beyond park boundaries, hurting hotels, restaurants, attractions, and local businesses. Arizona thrives because of tourism, and keeping our parks open is essential to safeguarding the jobs and economic vitality that so many Arizonans depend on.”

Tourism is one of Arizona’s largest industries, supporting nearly 300,000 jobs and generating more than $33 billion annually. The Grand Canyon alone drew nearly 5 million visitors in 2024, supporting more than 8,700 jobs and generating over $1 billion in positive economic activity.

National Association of Manufacturers: Certainty needed for growth

In Washington, the National Association of Manufacturers (NAM) emphasized the critical role a functioning government plays in supporting industrial growth.

“A functioning government is essential for a strong manufacturing economy,” said NAM President and CEO Jay Timmons. “Manufacturers need certainty, not disruption. Our leaders in Washington must come together and keep the government open, so it continues working for the American people. From supply chains and permitting to regulatory certainty, product approvals and facility inspections, manufacturers rely on the government to do its job and provide the stability that drives growth.”

U.S. ˿����Ƶ of Commerce: “Shutdowns are harmful to the economy”

The U.S. ˿����Ƶ of Commerce also issued a warning, noting that shutdowns affect more than just government employees.

“Government shutdowns are harmful to the economy, our national security, and the American people, often in ways that are not immediately obvious,” said Neil Bradley, executive vice president and chief policy officer at the U.S. ˿����Ƶ. “From passports and permits to clinical trials and air travel, a well-functioning economy requires a functioning government. The ˿����Ƶ calls on Congress and the Administration to work together to pass legislation to avert a federal government shutdown.”

Photo courtesy Flickr user reivax, CC BY-SA 2.0 , via Wikimedia Commons

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Dozens of new laws passed during the 2025 legislative session will take effect tomorrow, including several priorities championed by the Arizona ˿����Ƶ of Commerce & Industry.

“As these laws take effect, Arizona employers can count on policies that reflect their priorities,” said Arizona ˿����Ƶ President and CEO Danny Seiden. “From keeping vital economic drivers in Arizona, to passing commonsense energy reforms that will deliver long-term stability and affordability, to supporting global companies, these are the kinds of policies that keep Arizona competitive and attractive for investment.” 

˿����Ƶ-backed wins

Among the most notable measures that will take effect

• Senate Bill 1543 — Establishes a framework for international headquarters to build on-site workforce housing and support services, addressing a major barrier to growth for global employers.
• House Bill 2679 — Allows utilities to refinance certain infrastructure investments through securitization, lowering long-term interest costs and creating more predictable energy rates.
• House Bill 2704 — Authorizes renovations to Chase Field without raising taxes, securing the Diamondbacks’ future in downtown Phoenix while protecting thousands of jobs and strengthening surrounding businesses.
• Senate Bill 1307 — Creates a policy foundation for advanced air mobility, including electric aircraft, drone deliveries, and air taxis, positioning Arizona as a national leader in next-generation transportation.
• House Bill 2201 — Requires utilities and public power entities to adopt wildfire mitigation plans, protecting communities, infrastructure, and the state’s energy reliability.

Another priority, Senate Bill 1215, which sets stiffer standards for third-party litigation funding and prohibits foreign entities of concern from funding lawsuits, will take effect on December 31, 2025 due to a delayed implementation date.

In addition to the new law, the state Supreme Court earlier this month adopted new rules to enhance the level of transparency around lawsuit loans.

The business community also backed a provision in the bipartisan state budget passed earlier this year that permits the issuance of SPEED bonds, which are construction loans used by Arizona’s public universities and supported by Arizona Lottery ticket sales that help ensure recurring financial support provided to build and maintain public university facilities.

“These are just a few of the highlights the ˿����Ƶ and broader business community accomplished at the Capitol in 2025,” ˿����Ƶ Executive Vice President Courtney Coolidge said. “What we don’t always see, though, are the many bad bills we worked to defeat that would have harmed the state’s job creators.”

Coolidge said the ˿����Ƶ and think tank Common Sense Institute Arizona would soon release a report about the many bills that would have harmed the state economy.

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The Arizona ˿����Ƶ of Commerce & Industry is cheering the adoption by the state Supreme Court of an amendment to the rules of civil procedure that will dramatically increase the transparency over who is funding litigation.��

Third-party litigation funding (TPLF), also referred to as lawsuit lending, is when an entity or individual finances a lawsuit in return for a portion of the settlement or awarded damages. 

Some lawsuit loans are geared toward plaintiffs in a personal injury or tort case who use the loan to finance their living expenses while waiting for a lawsuit to be settled. But another type of loan can bankroll large-scale commercial or mass-tort cases. These types of cases might attract large financial backing from institutional investors, even sometimes by entities with ties to foreign governments. 

Before today’s action by the Arizona Supreme Court, judges and defendants had very little knowledge of who was financing a lawsuit, even if the financier was from out of the country. 

“These loans have a distorting effect on lawsuits. They drive up costs and they extend the length of litigation, as plaintiffs attempt not only to settle their case but also to pay off their loan,” Arizona ˿����Ƶ of Commerce & Industry President and CEO Danny Seiden said. “For too long, Arizona courtrooms were wide open to unscrupulous lenders trying to score a quick buck or to foreign funders scheming to gain an advantage against a competitor. Thanks to today’s action by the Arizona Supreme Court, there will finally be greater disclosure to all parties that a lawsuit is being funded by an outside entity.” 

The ˿����Ƶ has made increasing transparency over TPLF a central part of its civil justice reform agenda. 

In addition to leading business community support for adoption of the court rule change, the ˿����Ƶ this year successfully advocated for passage of S.B. 1215, legislation introduced by state Sen. Vince Leach (R-SaddleBrooke) and signed into law by Gov. Katie Hobbs that, among other things:

• Prohibited lending by foreign adversaries: The bill prohibits litigation funding directly or indirectly financed by a “foreign entity of concern,” including entities affiliated with governments identified by federal authorities as national security threats or placed on terrorism or sanctions lists. 
• Imposed limits on control: Litigation financiers are barred from directing or influencing decisions in a case, including legal strategy, attorney selection, or settlements. Control remains solely with the named party and counsel of record. 
• Requires disclosure of referral fees: Any commission, referral fee, or consideration paid to attorneys or health care providers for referring a client must be disclosed in writing and separately acknowledged by the borrower before the agreement is executed. 

S.B. 1215, coupled with the required disclosure of third-party litigation funding called for by the new Supreme Court rule, greatly enhances the integrity of Arizona’s legal system. 

Today’s action is the first time any state court in the country has sought to increase transparency over TPLF.

“The ˿����Ƶ thanks the Court for adopting this important rule change,” Seiden said. “They have made Arizona a national leader in ensuring our justice system is better protected against predatory actors.” 

Beginning Jan. 1, 2026, the new disclosure rule will apply in all civil cases where litigation funding agreements are involved. 

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Arizona Gov. Katie Hobbs on Friday signed legislation establishing new requirements around third-party litigation financing, marking a win for an Arizona business community concerned about the increasing prevalence of outside funders driving up the costs of litigation.

The measure, SB 1215 sponsored by Sen. Vince Leach (R-SaddleBrooke), sets the stage for continued reform of lawsuit lending practices.

The new law targets a fast-growing industry that funds lawsuits in exchange for a share of potential settlements. While once viewed as a novel tool for legal access, critics say the practice has ballooned into an opaque, unregulated sector that distorts the legal system and even invites foreign interference in U.S. court cases.

“This is a smart, targeted reform that preserves access to justice while preventing abuses that can encourage expensive, unnecessary litigation and undermine fairness,” said Courtney Coolidge, executive vice president of the Arizona ˿����Ƶ of Commerce & Industry. “SB 1215 is a small but important step toward protecting both consumers and the integrity of Arizona’s legal system. We’re proud to have helped lead a broad coalition in support of its passage. We appreciate Sen. Leach for his tremendous leadership, and we thank Gov. Hobbs for signing the bill into law.”

What the bill does

The new law governs “litigation financiers,” which it defines as individuals or entities that enter into agreements to receive compensation based on the outcome of a legal action or portfolio of related actions. Key provisions include:

• Ban on foreign adversaries: The bill prohibits litigation funding directly or indirectly financed by a “foreign entity of concern,” including entities affiliated with governments identified by federal authorities as national security threats or placed on terrorism or sanctions lists.
  
• Limits on control: Litigation financiers are barred from directing or influencing decisions in a case, including legal strategy, attorney selection, or settlements. Control remains solely with the named party and counsel of record.
  
• Referral fee disclosures: Any commission, referral fee, or consideration paid to attorneys or health care providers for referring a client must be disclosed in writing and separately acknowledged by the borrower before the agreement is executed.
  
• Conflict scrutiny in complex litigation: In class actions and multidistrict litigation, if there has been disclosure of litigation financing, courts must consider those arrangements and related conflicts when determining class counsel adequacy or appointing leadership roles such as lead counsel or steering committee members.
  
• Consumer safeguards: The law voids agreements made in violation of these provisions and authorizes enforcement by the attorney general or the parties involved. Knowingly violating the statute constitutes an unlawful practice under Arizona’s consumer fraud statutes.
  
• Exemptions: The bill excludes traditional loans not tied to litigation outcomes, funding from nonprofits supporting pro bono litigation, insurance indemnity arrangements, and limited receivables-based financing for medical providers.

Business community backs reform

The bill was championed by the Arizona ˿����Ƶ, which led a broad business coalition that included the Arizona Manufacturers Council, Arizona Farm Bureau, Arizona Lodging & Tourism Association, Arizona Trucking Association, Southern Arizona Leadership Council, Arizona Food Marketing Alliance, Greater Phoenix ˿����Ƶ, and major insurers and technology firms.

Their support stemmed from concerns over rising litigation costs, the influence funders might hold over the direction of litigation, and the risk of a growing role of out-of-state and foreign entities in Arizona courtrooms.

Stakeholders emphasized that unchecked lawsuit lending threatens legal fairness and undermines the predictability critical to a healthy business climate.

National momentum for reform

Arizona’s action reflects a growing national push for regulation of third-party litigation financing. Several states have enacted or introduced bills requiring disclosure or limiting foreign involvement. In Congress, bipartisan proposals have sought to mandate transparency in federal lawsuits, particularly in cases implicating national security.

Legal experts and policymakers warn that without regulation, lawsuit lending can prolong litigation, drive up damages, disincentivize settlements, and create hidden conflicts of interest.

What’s next

Business advocates say SB 1215 is only the beginning. Additional reforms gaining traction nationally are:

• Interest rate caps on litigation funding agreements to protect borrowers from predatory repayment terms;
  
• Licensing or registration requirements for litigation financiers operating in the state;
  
• Expanded consumer protections for individuals entangled in high-cost lawsuit loans.

“Arizona has joined a national movement on third-party litigation financing reform,” Coolidge said. “But we’re not done. We’ll continue to advocate for reforms that ensure fairness, transparency, and accountability in our legal system.”

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