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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: RAGE DP 5-1-1-0 | Third Read 23-5-2-0-0 |
SB 1787: exactions; individualized determinations; appeal
Sponsor: Senator Petersen, LD 14
Committee on Commerce
Overview
Provides for requesting and appealing an individualized determination which demonstrates the basis for an exaction being imposed on the proposed project.
History
A property owner may appeal the requirement by a local government of a dedication or exaction as a condition of granting approval for the use, improvement or development of real property. The local government must notify the property owner of their right to appeal the local government's action and provide a description of the appeal procedure.
In the appeals proceedings, the local government has the burden to establish that there is an essential nexus between the dedication or exaction and a legitimate governmental interest and that the proposed dedication or exaction is roughly proportional to the impact of the proposed use, improvement or development. The hearing officer must decide on the appeal and if determined that the local government did not meet its burden, the hearing office must modify or delete the requirement of the dedication or exaction. If the hearing officer modifies or affirms the requirement of the dedication or exaction, the property owner aggrieved by the hearing officer's decision may file a complaint for a trial de novo in the superior court on the facts and the law regarding the issues of the condition or requirement of the dedication or exaction (A.R.S. §§ 9-500.12, 11-832).
Provisions
Local Government
1. Prohibits a local government from:
a. imposing an exaction on an applicant for any proposed project without a written notice of the required exaction; and
b. requiring the applicant to satisfy the exaction as a prerequisite to appeal the validity of the individualized determination. (Sec. 1, 2)
2. Requires a local government to pay for the individualized determination and to provide the completed individualized determination within 60 days after receiving the request from the applicant. (Sec. 1, 2)
3. Stipulates that the local government, in an appeal, has the burden of proof to demonstrate that the exaction is roughly proportional to the adverse impact of the proposed project. (Sec. 1, 2)
Applicant
4. Allows an applicant to:
a. on receipt of the written notice of the exaction, request an individualized determination demonstrating the basis for the exaction being imposed on the proposed project;
b. appeal directly to the Attorney General if they object to the methodology, supporting information or conclusions in the individualized determination;
c. elect to proceed under protest and satisfy a required exaction as the exaction is being appealed; and
d. bring an action in an appropriate court to challenge the validity of the individualized determination or the exaction. (Sec. 1, 2)
Attorney General
5. Mandates the Attorney General to investigate any appeal alleging that a local action violates state law or the Arizona Constitution. (Sec. 1, 2)
6. Requires the Attorney General, if an applicant's appeal is successful, to:
a. deem the exaction excessive and waive the exaction; or
b. direct the local government to compensate the applicant for any costs that the applicant has expended in furtherance of the excessive exaction if the applicant has proceeded under protest. (Sec. 1, 2)
Individualized Determination
7. Requires the individualized determination to include the methodology, supporting data and information used to determine the adverse impact that is anticipated to result from the proposed project and the method of calculating the exaction amount. (Sec. 1, 2)
8. Stipulates that:
a. the individualized determination is the final determination, unless an applicant files an appeal; and
b. the exaction is deemed excessive and is waived if the individualized determination is not completed and delivered to the applicant within 60 days after receiving the request from the applicant. (Sec. 1, 2)
Judicial Review
9. Prohibits any satisfaction of an exaction under protest from being construed as a waiver of any objections, appeals or right to judicial review of the exaction. (Sec. 1, 2)
10. Requires the court to review the exaction de novo. (Sec. 1, 2)
11. Instructs the court to award compensatory damages and attorney fees to a prevailing applicant that brings an action. (Sec. 1, 2)
Miscellaneous
12. Defines pertinent terms. (Sec. 1, 2)
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16. Initials PB SB 1787
17. 3/11/2026 Page 0 Commerce
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