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HB2492 - 572R - H Ver
House Engrossed
urban growth
boundaries; prohibition
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2492
AN
ACT
Amending title 9, chapter 4, article 8, Arizona
Revised Statutes, by adding section 9-500.54; Amending title 11, chapter 2,
article 4, Arizona Revised Statutes, by adding section 11-269.31; Amending
title 41, chapter 4, article 1, Arizona Revised Statutes, by adding section 41-710.04;
relating to urban growth boundaries.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Subject to the requirements of
article IV, part 1, section 1, Constitution of Arizona, title 9, chapter 4,
article 8, Arizona Revised Statutes, is amended by adding section 9-500.54, to
read:
START_STATUTE
9-500.54.
Laws, rules, ordinances and contracts; implementation; urban
growth boundaries prohibited
Notwithstanding any other law, a law, rule,
ordinance or contract that is adopted or entered into by a city or town is not
effective if the implementation or enforcement of the law, rule, ordinance or
contract establishes, recognizes or maintains, formally or informally, any
urban growth boundaries in this state, however denominated, that effectively
prevent new urban or suburban development, restrain trade or commerce or
prevent the extension of public services outside of those boundaries. Any law,
rule, ordinance or contract in violation of this section is void.
END_STATUTE
Sec. 2. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, title 11, chapter 2, article 4,
Arizona Revised Statutes, is amended by adding section 11-269.31, to read:
START_STATUTE
11-269.31.
Laws, rules, ordinances and contracts; implementation; urban
growth boundaries prohibited
Notwithstanding any other law, a law, rule,
ordinance or contract that is adopted or entered into by a county is not
effective if the implementation or enforcement of the law, rule, ordinance or
contract establishes, recognizes or maintains, formally or informally, any
urban growth boundaries in this state, however denominated, that effectively
prevent new urban or suburban development, restrain trade or commerce or
prevent the extension of public services outside of those boundaries.� Any law,
rule, ordinance or contract in violation of this section is void.
END_STATUTE
Sec. 3. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, title 41, chapter 4,
article 1, Arizona Revised Statutes, is amended by adding section 41-710.04, to
read:
START_STATUTE
41-710.04.
Rules and contracts; implementation; urban growth boundaries
prohibited
Notwithstanding any other law, a rule or
contract that is adopted or entered into by this state or an agency in this
state is not effective if the implementation or enforcement of the rule or
contract establishes, recognizes or maintains, formally or informally, any
urban growth boundaries in this state, however denominated, that effectively
prevent new urban or suburban development, restrain trade or commerce or
prevent the extension of public services outside of those boundaries.� Any rule
or contract in violation of this section is void.
END_STATUTE
Sec. 4.
Legislative findings
The
legislature finds that:
1. In
1998, the voters of Arizona passed Proposition 303, the Growing Smarter Act,
adopting section 9-461.13, Arizona Revised Statutes, and specifically
prohibiting this state from mandating cities and towns to adopt urban growth
boundaries that prevent urban development and the extension of public services
outside of those boundaries.
2.
In 2000, proponents of urban growth boundaries attempted to
undo the provisions of Proposition 303 by introducing Proposition 202, the
Citizens Growth Management Initiative, which would have repealed section
9-461.13, Arizona Revised Statutes, and required cities and towns with
populations over two thousand five hundred people to adopt urban growth
boundaries that prevent urban development and the extension of public services
outside of those boundaries.
3. In 2000, the voters of
Arizona resoundingly rejected Proposition 202, voting two to one against the
measure and demonstrating for a second time that Arizona voters overwhelmingly
oppose the establishment of urban growth boundaries in this state. As a result,
the prohibition on the establishment of urban growth boundaries remains voter-protected
to this day.
4. Since the establishment
of urban growth boundaries in other states, like Oregon, multiple studies have
found that urban growth boundaries reduce housing affordability and supply by
artificially limiting the availability of affordable land to develop.� In
cities like Portland, Oregon, lot prices doubled as a result of the
establishment of urban growth boundaries around that city.� Numerous
commentators have urged policymakers in Oregon to repeal its urban growth
boundaries, and Portland has had to expand or modify its urban growth
boundaries several times to relieve pressure on housing affordability and
availability in the area.
5. Since 2023, several
policies have been adopted or proposed in this state that have had the effect
of establishing urban growth boundaries without the consent of the voters.�
These policies and their effects conflict directly with the voter-protected
successes and defeats of the measures that were placed on the ballot in 1998
and 2000.
6. To uphold the will of
the voters and ensure that Arizona remains an affordable place to live and
work, all policies adopted or proposed in this state that seek to establish or
that have the effect of establishing urban growth boundaries in this state must
be made void as to the portion of such policies that result in such boundaries.
Sec. 5.
Requirements for
enactment; three-fourths vote
Pursuant to article IV, part 1,
section 1, Constitution of Arizona, sections 9-500.54, 11-269.31
and 41-710.04, Arizona Revised Statutes, as added by this act,
are effective only on the affirmative vote of at
least three-fourths of the members of each house of
the legislature.