Explainer: How HB 4115 and SB 1489 strengthen transparency and accountability in local initiative processes

House Bill 4115, legislation by Speaker of the House Steve Montenegro is scheduled for consideration by the full state House, while companion legislation in the state Senate by Sen. T.J. Shope is similarly ready for consideration by the full Senate.

Here’s a look at how the bills would align the local initiative process with the well-established processes at a state level and protect local economic development efforts.

Bills align local initiative processes with established statewide initiative processes

House Bill 4115, introduced by Speaker of the House Steve Montenegro, seeks to standardize the regulation of initiative and referendum measures across Arizona by expanding state-level requirements to municipal and county levels. A mirror bill, SB 1489 by state Sen. T.J. Shope, has been introduced in the Senate.

The legislation focuses on three primary pillars:

• Increased transparency for paid petition circulators
• Mandatory financial disclosures for spending-related measures
• The creation of regulatory parity between state and local ballot processes

Supported by a broad coalition of the Arizona business community, the bill aims to protect the integrity of the ballot from out-of-state interests, support local decisionmaking, and provide voters with clearer information regarding the fiscal impacts of proposed local laws.

Key regulatory changes

HB 4115 and SB 1489 amend several sections of the Arizona Revised Statutes (Title 19) to ensure that the standards applied to statewide measures are nearly as practicable for local jurisdictions.

Paid circulator requirements

The bill introduces identification and disclosure protocols for paid circulators to ensure voters understand who is soliciting their signatures, similar to the protocols in other states.

Financial disclosure and revenue sources

A critical component for local fiscal management is the new requirement for measures that mandate expenditures. Any municipal or county initiative or referendum that proposes a mandatory expenditure, establishes a specific fund, or allocates funding must:

• Provide a disclosure of the expenditure or allocation.
• Include this funding disclosure within the 200-word initiative description provided to voters.

Economic impact and business community perspectives

The Arizona business community has signaled strong support for HB 4115 and SB 1489, viewing it as a defense against out-of-state activists who leverage local processes to advance narrow political agendas that may conflict with regional economic development.

Proponent coalition

The bill is backed by a diverse group of organizations, including:

• Arizona Chamber of Commerce & Industry
• Arizona Restaurant Association
• Greater Phoenix Chamber
• Greater Phoenix Economic Council (GPEC)
• United Dairymen of Arizona
• Valley Partnership
• Local chambers of commerce across Arizona

Leadership insights

• Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry: “These bills contain commonsense reforms that protect the integrity of the ballot, ensure voters know who is behind an initiative, and provide clearer information about proposals that would require new taxpayer-funded spending.”
• Courtney Coolidge, executive vice president of the Arizona Chamber: Coolidge has noted that out-of-state activists exploit the lack of guardrails at the local level. The goal of HB 4115 and SB 1489 is to ensure state and local processes are “equally rigorous” to prevent economic strategies from being “sidelined.”

Case study in local volatility: The Marana data center dispute

Current litigation in the Town of Marana underscores the administrative and legal friction that the legislation aims to mitigate through clearer standards.

• The conflict: Residents filed a lawsuit against the Town of Marana after the town clerk rejected a referendum targeting a proposed data center.
• The technicality: The organizers behind the petition campaign argue that their submission was out of compliance and should thus be withdrawn. Supporters not affiliated with the organized referendum campaign, however,  argue that the petitions cannot be withdrawn.
• Business implication: Such disputes demonstrate how local economic development projects can be stalled by procedural ambiguities in the referendum process, highlighting the need for the consistent standards proposed in HB 4115 and SB 1489.

Public sentiment and voter data

Polling conducted by Cygnal in December 2025 indicates that the provisions in HB 4115 and SB 1489 align with a vast majority of Arizona voters:

• 90% believe ballot initiatives should be driven by Arizona residents rather than out-of-state organizations.
• 84% support requiring paid circulators to wear visible identification badges.
• 80% support requiring initiatives that mandate spending to identify a specific funding source.
• 70% support achieving parity between state and local initiative requirements.

The case for passage

• Uniformity is priority: Standardization of initiative processes reduces the ability of activists to target smaller municipalities with less-regulated processes.
• Fiscal accountability: Future local initiatives will be required to disclose potential costs of their proposals, potentially reducing the risk of unfunded mandates that impact the local tax base.
• Bipartisan support: HB 4115 passed the House Federalism, Military Affairs & Elections Committee with a 5-2 bipartisan vote. SB 1489 was cleared by the Senate Judiciary and Elections Committee. Both bills are ready for consideration by the full House and Senate, respectively.
• Grassroots efforts unaffected: Initiative campaigns by local residents are not affected by the provisions of the legislation.

Photo courtesy Elizabeth Jenkins, licensed as CC BY-NC-SA 2.0.