Shown verbatim: the complete text as captured from the official page posted by the Arizona Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the introduced version. The official bill page.
REFERENCE TITLE: exactions; individualized determinations; appeal State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026 SB 1787 Introduced by Senator Petersen 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_STATUTE9-463.07. 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 FILE AN APPEAL. tHE APPEAL MAY BE FILED AT THE TIME THE APPLICANT RECEIVES THE INDIVIDUALIZED DETERMINATION PURSUANT TO SUBSECTION c OF THIS SECTION OR THE APPLICANT MAY FILE AN APPEAL WITH OTHER MATTERS THAT ARISE IN THE PERMIT REVIEW PROCESS THAT IS RELATED TO THE APPLICATION. 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. 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 Fees for municipal services or 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": (a) means any application for use or development of real property. (b) Includes residential, commercial, recreational, agricultural, and Industrial use or development. END_STATUTE Sec. 2. Title 11, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 11-810.02, to read: START_STATUTE11-810.02. 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 FILE AN APPEAL. tHE APPEAL MAY BE FILED AT THE TIME THE APPLICANT RECEIVES THE INDIVIDUALIZED DETERMINATION PURSUANT TO SUBSECTION c OF THIS SECTION OR THE APPLICANT MAY FILE AN APPEAL WITH OTHER MATTERS THAT ARISE IN THE PERMIT REVIEW PROCESS THAT IS RELATED TO THE APPLICATION. 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. 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 Fees for county services or 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": (a) means any application for use or development of real property. (b) Includes residential, commercial, recreational, agricultural, and Industrial use or development. END_STATUTE
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