The Arizona House on Thursday passed a contentious bill that will give the manufacturer of Taser stun guns the ability to build a massive apartment complex development in Scottsdale despite opposition in that city.
Approved on a 40-19 vote, SB 1543 would override the efforts by foes of the project to give Scottsdale voters the last word. Those opponents had gathered 26,000 signatures on referendum petitions, a move that puts the development on hold until the November 2026 election.
Supporters acknowledged the bill voids the referendum. But they worried that delaying the project could block the development.
But the measure split Republicans who represent Scottsdale from other members of the majority party at the Capitol. Aside from overriding the referendum, they said that legislative intervention now could set a precedent that could lead to state lawmakers overriding similar fights in other cities around Arizona.
At the heart of the fight is the role of Axon and the economic footprint it has.
Supporters, including many Democrats, contend that Axon could leave Arizona if it isn't allowed to go ahead with its project, as its CEO has suggested. The company initially said it bought state trust land just for a new headquarters building before morphing that into a project that now includes the new headquarters, a hotel and nearly 2,000 apartment units.
The measure, heavily lobbied by Axon and it’s CEO, Rick Smith, now moves to the Senate for a vote that could send it to Gov. Katie Hobbs for consideration.
Axon has been in Scottsdale for two decades and is one of Arizona’s most valuable companies, with a market cap of nearly $43 billion. In addition to stun guns widely used by police, it also makes police body cameras and makes money from storing those videos.
The company got the OK to go ahead with the project from the Scottsdale City Council late last year, but a new council majority now opposes it. A coalition of opponents collected enough signatures to block final approval until a vote on the project in November 2026.
Axon isn't willing to wait, and went to lawmakers for a remedy.
Rep. Joseph Chaplik (R-Scottsdale) led the charge against that bill in the House during a contentious debate on Wednesday, unsuccessfully attempting to water down the bill with multiple amendments.
Rep. Alexander Kolodin (R-Scottsdale) said the bill sets a dangerous precedent of thwarting the will of local citizens in a city who organized to get the referendum on the ballot.
“What's important here is the precedent that we set,” Kolodin said. “Make no mistake about what we are being asked to do here today -- we are being asked to cancel an election called by the people of Scottsdale, called by the voters of Scottsdale.”
But backers countered that Axon and its new headquarters/apartment campus is a critical economic development engine for all of Arizona.
“There is a need throughout this whole state for more apartments and for more units all over the state,” said Rep. David Livingston, R-Peoria.
“We need more single family residences. We need more (multi-family) residences,” he said. “We need to keep businesses moving to the state of Arizona. We need to keep money in transportation, and we need to keep these headquarters here.”
Emotions ran high during the debate, with all the representatives that represent Scottsdale opposed to the measure. House Speaker Steve Montenegro at one point had to remind members not to go overboard.
Chaplik and others used a tactic usually reserved for minority Democrats to slow debate on the bill, but they could not block it. When it came up for a vote Thursday, opponents kept up the pressure.
The measure is written so that it only affects Axon's development.
“I don't believe we should be passing legislation for one company to profit, and I don't think that it should be directed towards one city, Scottsdale,” Chaplik said in explaining his no vote.
“This is a special interest vendor bill,” he said. “I stand with my constituents that want to have an election in November 2026. This is a city issue.”
But Rep. Tony Rivero, R-Peoria, said the city council and mayor of Scottsdale signed a deal with Axon and the new council is going back on that. He said that justifies legislative intervention.
“I believe the leadership in that city has failed this company,” Rivero said. “I think we don't understand how big this issue is.”
It's so big, he said, it is catching the attention of other states in our country.
“That is why the governor of Texas has tweeted out, 'If Axon is not welcomed in Arizona, we'll take you in,' ” Rivero said. “The same has happened in the state of Florida.”
The bottom line, he said, is doing everything possible to keep the company here.
“There's a lot at stake,” Rivero said. “We're talking about economic development, thousands of employees, billions of dollars being pumped into our economy.”
-
A bill that initially gave major protections to utility companies if their equipment sparked wildfires is nearing final action at the state Capitol. Many of those protections have been removed from the bill. -
Gov. Katie Hobbs has signed a bill into law that will expand scholarship opportunities for community college students who want to become teachers. -
The system is staffed with 75 employees who answer calls and connect individuals and families to more than 8,500 community-based resources throughout the state. -
A bill designed to prevent Medicaid fraud in sober living homes was signed into law last week, despite opposition from the person who brought the problem forward at the state Capitol. -
Ryan Thornell, director of the Department of Corrections, responded to a letter sent by Republican state Sen. Kevin Payne and agreed to an investigation. This comes after allegations that one prisoner killed three other inmates in a 24-hour span.
