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SB1787 - 572R - S Ver
Senate Engrossed
exactions;
individualized determinations; appeal
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1787
AN
ACT
amending title 9, chapter 4, article 6.2,
arizona revised statutes, by adding section 9-463.07; amending title 11,
chapter 6, article 1, arizona revised statutes, by adding section 11-810.02;
relating to municipal and county development.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 9, chapter 4, article 6.2,
Arizona Revised Statutes, is amended by adding section 9-463.07, to read:
START_STATUTE
9-463.07.
Exactions; mitigation costs; individualized determination;
appeal; protest; definitions
A. Notwithstanding any other law, a
municipality may not impose an exaction on an applicant for any proposed
project without a written notice to the applicant of the required exaction.
B. On receipt of the written notice
required by subsection A of this section, the applicant may request an
individualized determination that demonstrates the basis for the exaction being
imposed on the proposed project.� The individuALIzed determination shall
include the methodology, supporting data and any information that is used to
DETERMINE the adverse impact that is anticipated to result from the proposed
project and the method of calculating the exaction amount based on that
identified adverse impact.� The municipality shall pay for the INDIVIDUALIZED
determination required pursuant to this subsection.
C. The municipality shall provide the
completed individualized determination required pursuant to subsection B of
this section within sixty days after receiving the request from the applicant
for the individualized determination.� Unless an applicant files an appeal, the
individualized determination shall be the final determination.� If the
individualized determination is not completed and delivered to the applicant
within sixty days after receiving the request for the individualized determination
from the applicant, the exaction is deemed excessive and is waived.
D. iF an APPLICANT OBJECTS TO THE
METHODOLOGY, SUPPORTING INFORMATION OR CONCLUSIONS IN THE INDIVIDUALIZED
DETERMINATION, THE APPLICANT MAY APPEAL
directly to the
attorney general. The attorney general shall treat the appeal as a
request made pursuant to section 41-194.01.� iN AN APPEAL, THE
MUNICIPALITY has THE burden of proof to demonstrate that the exaction is
roughly proportional to the adverse impact of the proposed project.�
If an applicant is successful in an appeal, the attorney general shall
deem the exaction excessive and shall waive the exaction or, if the applicant
has proceeded under protest pursuant to subsection E of this section, the
attorney general shall direct the municipality to compensate the applicant for
any costs that the applicant has expended in furtherance of the excessive
exaction.
E. An applicant may elect to proceed
under protest and satisfy a required exaction while the exaction is being
appealed. Any satisfaction of an exaction under protest may not be construed as
a waiver of any objections or appeals or right to judicial review of the
exaction.� the municipality may not require the applicant to satisfy the
exaction as a prerequisite to appeal the validity of the individualized
determination provided pursuant to subsection C of this section.
F. An applicant may bring an action
in an appropriate court to challenge the validity of the individualized
determination or the exaction.� The court shall review the exaction de novo.�
THE MUNICIPALITY has THE burden of proof to demonstrate that the exaction is
roughly proportional to the adverse impact of the proposed project.� The court
shall award compensatory damages and attorney fees to a prevailing applicant
that brings an action pursuant to this subsection.
G. For the purposes of this section:
1. "Exaction":
(
a
) means any
fee, dedication or condition that is imposed by a municipality on an applicant
or property owner as a condition of granting a permit Or other approval for the
proposed project.
(
b
) does not
include
:
(
i
) development
fees collected pursuant to section 9-463.05.
(
ii
) Fees for
municipal services
.
(
iii
) regular
permit application fees.
2. "Individualized
determination" means a written analysis that is specific to the proposed
Project to assess whether an exaction, including a development or mitigation
fee, is roughly proportional in nature and extent to the adverse impacts of the
proposed project.
3. "Proposed project" means
any application for use or development of residential real property.
END_STATUTE
Sec. 2. Title 11, chapter 6, article 1, Arizona
Revised Statutes, is amended by adding section 11-810.02, to read:
START_STATUTE
11-810.02.
Exactions; mitigation costs; individualized determination;
appeal; protest; definitions
A. Notwithstanding any other law, a
county may not impose an exaction on an applicant for any proposed project
without a written notice to the applicant of the required exaction.
B. On receipt of the written notice
required by subsection A of this section, the applicant may request an
individualized determination that demonstrates the basis for the exaction being
imposed on the proposed project.� The individualized determination shall
include the methodology, supporting data and any information that is used to
DETERMINE the adverse impact that is anticipated to result from the proposed
project and the method of calculating the exaction amount based on that
identified adverse impact. The county shall pay for the
INDIVIDUALIZED determination required pursuant to this subsection.
C. The county shall provide the
completed individualized determination required pursuant to subsection B of
this section within sixty days after receiving the request from the applicant
for the individualized determination.� Unless an applicant files an appeal, the
individualized determination shall be the final determination.� If the
individualized determination is not completed and delivered to the applicant
within sixty days after receiving the request for the individualized
determination from the applicant, the exaction is deemed excessive and is
waived.
D. iF An APPLICANT OBJECTS TO THE
METHODOLOGY, SUPPORTING INFORMATION OR CONCLUSIONS IN THE INDIVIDUALIZED
DETERMINATION, THE APPLICANT MAY APPEAL
directly to the
attorney general.� The attorney general shall treat the appeal as a request
made pursuant to section 41-194.01. iN AN APPEAL, THE county
has THE burden of proof to demonstrate that the exaction is roughly
proportional to the adverse impact of the proposed project.�
If an applicant is successful in an appeal, the attorney general shall
deem the exaction excessive and shall waive the exaction or, if the applicant
has proceeded under protest pursuant to subsection E of this section, the
attorney general shall direct the county to compensate the applicant for any
costs that the applicant has expended in furtherance of the excessive exaction.
E. An applicant may elect to proceed
under protest and satisfy a required exaction while the exaction is being
appealed.� Any satisfaction of an exaction under protest may not be construed
as a waiver of any objections or appeals or right to judicial review of the
exaction.� the county may not require the applicant to satisfy the exaction as
a prerequisite to appeal the validity of the individualized determination
provided pursuant to subsection C of this section.
F. An applicant may bring an action
in an appropriate court to challenge the validity of the individualized
determination or the exaction.� The court shall review the exaction de novo.�
THE County has THE burden of proof to demonstrate that the exaction is roughly
proportional to the adverse impact of the proposed project.� The court shall
award compensatory damages and attorney fees to a prevailing applicant that
brings an action pursuant to this subsection.
G. For the purposes of this section:
1. "Exaction":
(
a
) means any
fee, dedication or condition that is imposed by a county on an applicant or
property owner as a condition of granting a permit Or other approval for the
proposed project.
(
b
) does not
include
:
(
i
) development
fees collected pursuant to section 11-1102.
(
ii
) Fees for
county services
.
(
iii
) regular
permit application fees.
2. "Individualized
determination" means a written analysis that is specific to the proposed
Project to assess whether an exaction, including a development or mitigation
fee, is roughly proportional in nature and extent to the adverse impacts of the
proposed project.
3. "Proposed project" means
any application for use or development of residential real property.
END_STATUTE