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--- version:Introduced Version
+++ version:(document, no version)
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-REFERENCE TITLE: exactions; individualized determinations; appeal
+Assigned to RAGE����������������������������������������������������������������������������������������������������������������� FOR
+COMMITTEE
 
-State of Arizona
+ARIZONA STATE SENATE
 
-Senate
+Fifty-Seventh
+Legislature, Second Regular Session
 
-Fifty-seventh Legislature
+FACT SHEET FOR S.B. 1787
 
-Second Regular Session
+exactions; individualized determinations; appeal
 
-2026
+Purpose
 
-SB 1787
+Prohibits a municipality or county from imposing an exaction on an
+applicant for any proposed project to use or develop real property without a
+written notice to the applicant of any required exaction. Allows an applicant
+to request an individualized determination for the required exaction prior to
+an appeal.
 
-Introduced by
+Background
 
-Senator
-  Petersen
+A property owner may appeal the requirement of a municipality or county
+dedication or exaction as a condition of the granting of or approval for the
+use, improvement or development of the owner's real property. The municipality
+or county must notify the property owner that the property owner has the right
+to appeal the municipality's or county's action and must provide a description
+of the appeal procedure. The municipality or county must not request the
+property owner waive the right of appeal or trial de novo at any time
+during the consideration of the property owner's request.
 
-AN
-ACT
+The appeal must be in writing and filed with or mailed to a hearing
+officer designated by the municipality or county within 30 days after the final
+action is taken. The municipality or county must submit a takings impact report
+to the hearing officer. A fee must not be charged for filling an appeal. After
+receipt of an appeal, the hearing officer must schedule a time for the appeal
+to be heard no later than 30 days after receipt. The property owner must be
+given at least 10 days' notice of the time when the appeal will be heard unless
+the property owner agrees to a shorter time period. In all proceedings, the
+municipality or county 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 the appeal within five working days after the appeal is heard. If
+the municipality or county does not meet its burden to establish an essential
+nexus, the hearing officer must modify or delete the requirement of the
+dedication or exaction appealed.
 
-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.
+If the hearing officer modifies or affirms the requirements of the
+dedication or exaction, a property owner aggrieved by a decision of the hearing
+officer, at any time within 30 days after the hearing officer renders a
+decision, to 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
+and 11-832).
 
-(TEXT OF BILL BEGINS ON NEXT PAGE)
+There is no anticipated fiscal impact to the state General Fund
+associated with this legislation.
 
-Be it enacted by the Legislature of the State of Arizona:
+Provisions
 
-Section 1. Title 9, chapter 4, article 6.2,
-Arizona Revised Statutes, is amended by adding section 9-463.07, to read:
+1.
+Prohibits a municipality or county from imposing an exaction on an
+applicant for any proposed project without a written notice to the applicant of
+the required exaction.
 
-START_STATUTE9-463.07. Exactions; mitigation costs; individualized determination;
-appeal; protest; definitions
+2.
+Allows an applicant, on receipt of the written notice of the exaction,
+to request an individualized determination that demonstrates the basis for the
+exaction being imposed on the proposed project.
 
-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.�
+3.    Requires
+the individualized determination to include:
 
-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.
+a)
+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
 
-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.
+b)    the
+method of calculating the exaction amount based on that identified adverse
+impact.
 
-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
+4.
+Requires the municipality or county to pay for the individualized
+determination.
+
+5.
+Requires the municipality or county to provide the completed
+individualized determination within 60 days after receiving the request from
+the applicant for the individualized determination.
+
+6.
+Requires the individualized determination to be the final determination
+unless an applicant files an appeal.
+
+7.
+Deems the exaction excessive and waived if the individualized
+determination is not completed and delivered to the applicant within 60 days
+after receiving the request for the individualized determination.
+
+8.
+Allows an applicant, if the applicant objects to the methodology,
+supporting information or conclusions in the individualized determination, to
+file an appeal.
+
+9.
+Allows the appeal to be filed at the time the applicant receives the
+individualized determination.
+
+10.  Allows
+the applicant to file an appeal with other matters that arise in the permit
+review process that is related to the application.
+
+11.  States
+that, in an appeal, the municipality or 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 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.
+12.  Allows
+an applicant to elect to proceed under protest and satisfy a required exaction
+while the exaction is being appealed.
 
-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.
+13.  Prohibits
+any satisfaction of an exaction under protest from being construed as a waiver
+of any objections or appeals or right to judicial review of the exaction.
 
-G. For the purposes of this section:
+14.  Prohibits
+a municipality or county from requiring the applicant to satisfy the exaction
+as a prerequisite to appeal the validity of the individualized determination.
 
-1. "Exaction":
+15.  Allows
+an applicant to bring an action in an appropriate court to challenge the
+validity of the individualized determination or the 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.
+16.  Requires
+the court to review the exaction de novo.
 
-(b) does not
-include Fees for municipal services or regular permit application fees.
+17.  States
+that the municipality or county has the burden of proof to demonstrate that the
+exaction is roughly proportional to the adverse impact of the proposed project.
 
-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.
+18.  Required
+the court to award compensatory damages and attorney fees to a prevailing
+applicant that brings an action.
 
-3. "Proposed project":
+19.  Defines
+exaction as any fee, dedication or condition that is imposed by a
+municipality or county on an applicant or property owner as a condition of
+granting a permit or other approval for the proposed project.
 
-(a) means any
-application for use or development of real property.
+20.  Excludes,
+from the definition of exaction, fees for municipal or county services
+or regular permit application fees.
 
-(b) Includes
-residential, commercial, recreational, agricultural, and Industrial use or
-development. END_STATUTE
+21.  Defines
+individualized determination as a written analysis that is specific to
+the proposed project to assess whether an exaction, including a development
+mitigation fee, is roughly proportional in nature and extent to the adverse
+impacts of the proposed project.
 
-Sec. 2. Title 11, chapter 6, article 1, Arizona
-Revised Statutes, is amended by adding section 11-810.02, to read:
+22.  Defines
+proposed project as any application for use or development of real
+property, including residential, commercial, recreational, agricultural and
+industrial use or development.
 
-START_STATUTE11-810.02. Exactions; mitigation costs; individualized determination;
-appeal; protest; definitions
+23.  Becomes
+effective on the general effective date.
 
-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.�
+Prepared by Senate Research
 
-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.
+February 13, 2026
 
-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
+JT/ci