"Committee on Rural Economic Development Meeting Minutes and Agenda - February 19, 2026"
Summary
The report of a regular meeting of the Committee on Rural Economic Development of the Arizona House of Representatives, Fifty-seventh Legislature, Second Regular Session, on Thursday, February 19, 2026, with Representative Martinez as Chairman. The committee heard a presentation titled "Lucid and Economic Development Success in Pinal County" from a senior vice president. The report records committee action of DP 7-0-0-0 on HB2950 (tourism improvement areas) and DPA 4-1-2-0 on HB2946 (development fees), and records no vote on HB2107 or HB2588. Attachments include the agenda, which lists HB2107 on SNAP benefits with a strike-everything title on a Douglas port of entry appropriation, and a Request to Speak report of public positions and comments on HB2107. The record closes with House amendments to H.B. 2946 and a roll call vote on HB 2946.
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
Report of Regular Meeting
Thursday, February 19, 2026 RECEIVED
House Hearing Room 4 -- 9:00 A.M. CHIEF CLERKS OFFICE
a 9:04 A.M. FEB ZU 2026
ecesse
Reconvened
Adjourned 10:09 A.M.
Members Present Members Not Present
Representative Blackman Representative Biasiucci
Representative Bliss
Representative Hernandez
Representative Peshlakai
Representative Volk
Representative Lopez, Vice-Chairman
Representative Martinez, Chairman
Agenda
Original Agenda — Attachment 1
Request to Speak
Report — Attachment 2
Committee Attendance
Report — Attachment 3
Presentations
Name Organization Attachments (Handouts)
Lucid and Economic Keith Watkins, Senior Vice President 0
Development Success in
Pinal County
Committee Action
Bill Action Vote Attachments
HB2950 DP 7-0-0-0 4,5
HB2946 DPA 4-1-2-0 6,7,8
HB2107 HELD
HB2588 HELD
ca ?
Veronica Graham, Committee Secretary
February 20, 2026
(Original attachments on file in the Office of the Chief Clerk; video archives available at http:/Avww.azleg.gov)
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
February 19, 2026
REVISED - 2/16/26 REVISED - 2/16/26 REVISED - 2/16/26
ARIZONA HOUSE OF REPRESENTATIVES Cony ned 4 04
Fifty-seventh Legislature - Second Regular Session A d
myned 0:04
REGULAR MEETING AGENDA J JO
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
DATE Thursday, February 19, 2026 ROOM HHR4 TIME 9:00 A.M.
Members of the public may access a livestream of the meeting here:
https:/Avww.azleg.gov/videoplayer/?clientID=6361 162879&eventID=2026021118
Members:
Representative Blackman Representative Peshlakai Representative Lopez, Vice-Chairman
Representative Bliss Representative Volk Representative Martinez, Chairman.
Representative Hernandez C
¢ Presentation: Lucid and Economic Development Success in Pinal County - Keith Watkins, Senior Vice
President, Rural Economic Development
Bills Short Title Strike Everything Title
HB2107 | | | SNAP benefits; purchases; waiver S/E: appropriation; Douglas port of entry
(Martinez: Biasiucci, Carbone, et al)
HHS w/d, RED, APPROP, RULES
HB2588 municipalities; planned communities; design;
prohibition.
(Way)
COM wid, RED, RULES
HB2946 T Dp f municipalities; counties; development fees
(Powell)
-| -Q-{)RED, RULES
*HB2950 DP tourism improvement areas; municipalities;
counties
- (- 0 [fWilmeth: Diaz, Hernandez C, et al)
RED held 0-0-0-0-0, RULES
. On previous agenda
ORDER OF BILLS TO BE SET BY THE CHAIRMAN
vc
02H22026
02432026
02/16/2026
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.
Page 1 of 1
Attachment_“_
Information Registered on the Request to Speak System
House Rural Economic Development (2/19/2026)
HB2107, SNAP benefits; purchases: waiver
Support:
Brian Murray, CITY OF DOUGLAS; Linda Busam, representing self; Brent Michelson, representing self
Oppose:
Joan Murphy, representing self; Glenn Sollers, representing self; Stephen Flaaen, representing self; Elizabeth Lee,
representing self; Dave Long, representing self; Janie Hydrick, representing self; Judith Simons, representing self;
Mary Pradelt, representing self; Janet Larkin, representing self; Sandra Kravetz, representing self; Dianne Post, AZ
NATIONAL ORGANIZATION FOR WOMEN (NOW), Self; Kevin Brown, representing self; Sherrilynn James,
representing self; Rebecca Smith Gross, representing self; Lisa Olson, representing self; Maria Salvucci,
representing self; Beverly Janowitz-Price, representing self; Cynthia Couture, representing self; Sally Harvey,
representing self; Charlie Silver, representing self; Gail Kamaras, representing self; Susan Morris, representing self;
Christina Mollica, representing self; Robin LaVoie, representing self; Anita Mosesman, representing self; jacqueline
Johnson, representing self; Claudia Bloom, representing self; Elizabeth Schauer, representing self; Brent Gibbs,
representing self; Jeanne Casteen, representing self; Mariana Spier, representing self; Craig McDermott,
representing self; Katherine Doman Sheydayi, representing self; Laurie Stoff, representing self; Alisa McMahon,
representing self; Carol Maas, representing self; Bobbie Howard, representing self; Steve Gorman-Hackstadt,
representing self; Jennifer Dawson, representing self; Kathleen Dubbs, representing self; Matthew Nelson,
representing self; Linda Edwards, representing self; Gail Block, representing self; Jo Ann Caruthers, representing
self; Cassandra Morano, representing self; Eileen Goldman, representing self; Mary Gaudio, representing self;
Mary Nelson, representing self; Carol Garnett, representing self; Martha O'Connor, representing self; Mariette
Francis, representing self; Barbara Larson, representing self; Beverlee Loat, representing self; Kathy Pyner,
representing self; Penny Boone, representing self; Rebecca Haynes, representing self; Edna Weigel, representing
self; Bart James, representing self; Gayle Meredith, representing self; Ralph Meredith, representing self; William S.
James, representing self; Mary Ganapol, representing self; Chris Senko, representing self; Charlotte Lis,
representing self; William Yohey, representing self; Karen Peterson, representing self; Amy Etzkorn, representing
self; Bonnie Oakes, representing self; Brenda Nelson, representing self; Sandra Rizzo, representing self; Ann
Johnson, representing self; Mary Martiniak, representing self; Katherine Lathrop, representing self; Dee Maitland,
representing self; Mary-Jeanne Fincher, representing self; Julie Golding, representing self; Saher Afzal,
representing self; Jeri Dow, representing self; Kristen Abrahamson, representing self; Janet Senf, representing self;
Roxanna Kearns, representing self; Linda Martin, representing self; Peter Coston, representing self; Patricia
Gerrodette, representing self; Paula Redinger, representing self; Kathryn Anderson, representing self; Chris Ahearn,
representing self; Christine Petersen, representing self; Rivko Knox, representing self; Jacqueline deSa,
representing self; Carol Campbell, representing self; Jennifer Horne, representing self; Alicia Messing, representing
self; Frederick James, representing self; Marilyn Murov, representing self; Eric Kadel, representing self; Kathleen
Schanus-Gohl, representing self; Suzanne Zimmerman, representing self; Cynthia Wagner, representing self; Libby
Stortz, representing self; Mitchell Smith, representing self; Karen Brown, representing self; ALICE BUCK,
representing self; Devon Sloan, representing self; Ann Lebert, representing self; Christopher Cerrato, representing
Attachment. |
self; STACEY NORDWALL, representing self; Nancy Hancock, representing self; Paula Van Derven, representing self;
Pamela Chittenden, representing self; Linda Block, representing self; Leonora Midgley, representing self; Lisa
Maczura, representing self; Remy Sinclair, representing self; Barbara Lucas, representing self; Nelson Morgan,
representing self; Roger Blain, representing self; Susan Matheson, representing self; Angela Buer, representing
self; Terri Farneti, representing self; Patricia Brunner, representing self; Jerrold Borchardt, representing self;
Margaret Tinsley, representing self; Zinah Burke, representing self; Dieter Knecht, representing self; Jillian Ryan,
representing self; Allison Jackson, representing self; Caroline Esmond, representing self; John Cummings,
representing self; Kristan Larson, representing self; Carol Rohe, representing self; Erica Hansen, representing self;
Jean Meconi, representing self; Donna Rugg, representing self; Bridget Clark-Cooper, representing self; Marcella
Deluca, representing self; Christa Trexler, representing self; Marcia Tingley, representing self; Theresa Ryan,
representing self; Allen Brown, representing self; Greg Olszta, representing self; marcia stewart, representing self;
Theresa Prichard, representing self; Sara Isett, representing self; Janet Lewis-Weaver, representing self; Valarie
Bryant, representing self; Claudia Yeager-Smith, representing self; JoAnn McCay, representing self; Clarissa Vela,
representing self; William Bowlus-Root, representing self; Sue Diaz, representing self; Barbara Jones, representing
self; Jonathan Brechner, representing self; Sally Evans, representing self; Kathleen Woessner, representing self;
Lisa Koenig, representing self; Mary Pena, representing self; Cheryl Benefield, representing self; Alicia Vaughan,
representing self; Mary Keerins, representing self; Jeanmarie Haney, representing self; Kathryn Avila Hammond,
representing self; Erin Dahl, representing self; Mike Kunnecke, representing self; Susan Ordway, representing self;
Melissa Boyle, representing self; Dennis Johnson, representing self; Melinda Bell, representing self; Gina Gral,
representing self; Kathleen Sauer, representing self; JOHN FIENE, representing self; Katie Rice, representing self;
Gail Graves, representing self; Aaron Essif, representing self; Kat Ginzel, representing self; Jane Johnson,
representing self; Kristin White, representing self; RITA DEPUYDT, representing self; Traci Garcia, representing self;
Garyh Rulapaugh, representing self; Marin Lersch, representing self; Sherri Johnson, representing self; Dana Jolly,
representing self; Joseph Johnson, representing self; Julia Allison, representing self; Nadya Laliberte, representing
self; Amy Gaiennie, representing self; Margie Gomez, representing self; Kathryn Dorn, representing self; VICKI D
ELIA, representing self; Erica Rivera, representing self; Dimitrios Gockel, representing self; Karen Weihs,
representing self; Eden Winget, representing self; Salie Travis, representing self; Felisa Gilley, representing self;
Deborah Anderson, representing self; Amy Licht, representing self; Kymberli Ricks-WhiteColbourne, representing
self; Ken Jones, representing self; Don Howard, representing self; Roy L Carrington Jr., representing self; Kayla
Lundquist, representing self; Sery Johnson, representing self; Mary Rose, representing self; Carolyn Drennan,
representing self; Jessie Kline Loganbill, representing self; Lisa Wayman, representing self; Amy Tremper,
representing self; Caleb Demeter, representing self; Susan Bowen, representing self; Judy Wilkening, representing
self; Lauren Whitiker, representing self; Alice Bauman, representing self; Elizabeth Lehr, representing self
All Comments:
Joan Murphy, Self: it's not the poor who are using up our budget - it's the giveaways to the rich! stop attacking the
poor!; Glenn Sollers, Self: The fast food carve-out exists for people who may not be able to prepare meals or who
don't have homes and kitchens. Just 3% of SNAP users qualify for this carve-out; banning them would
disproportionately impact disabled, elderly and homeless people.; Stephen Flaaen, Self: Make it easier to obtain
and use SNAP, not harder.; Judith Simons, Self: This is just cruel to disabled, elderly, homeless, & other people who
may need a way to get a convenient meal.; Janet Larkin, Self: Some folks on SNAP don't have the luxury of a home
or kitchen.; Lisa Olson, Self: Republicans have already severely restricted the use of SNAP benefits. This ban would
disproportionately impact disabled, elderly and unhoused people. | STRONGLY OPPOSE this attack on poor
people!; Gail Kamaras, Self: Stop beating up the poor. Look for fraud in corporations.; Susan Morris, Self: SNAP is
to help poor people eat. You don't get to decide what they choose to eat.; Robin LaVoie, Self: This impacts the
homeless, disabled and elderly who cannot cook at home. Terrible bill.; Anita Mosesman, Self: And anyone else
who eats unhealthy food and then becomes a health burden on society? Like that unhealthy McDonalds loving
president?; Mariana Spier, Self: Not all recipients have a stove to cook on (or a roof above their head); Laurie Stoff,
Self: Rules already bar SNAP (food stamps) from use at most restaurants, but the fast food carve-out exists for
people who may not be able to prepare meals or who; Jennifer Dawson, Self: Just 3% of SNAP users qualify for this
carve-out; banning them would disproportionately impact disabled, elderly and homeless people. Cruel to starve
those in need.; Kathleen Dubbs, Self: The nanny state is alive and well; Linda Edwards, Self: We don't know enough
about peoples' situations to say yea to this bill.; Mary Gaudio, Self: Only 3% of SNAP users even qualify for this
carve-out; banning fast-food for these few users would be akin to starving them. Inhumane and unjust. Vote nol;
Carol Garnett, Self: There are already rules and in some cases exceptions need to be made for the homeless,
disabled or elderly.; Martha O'Connor, Self: Harms elderly, disabled and homeless people.; Beverlee Loat, Self:
would negatively impact disabled, elderly and homeless people -No; Kathy Pyner, Self: | agree that there should be
some restrictions. Soda and candy should be banned. However fast food may be the only way some people have to
get prepared food.; Penny Boone, Self: NO! This will disproportionately impact disabled, elderly and homeless
people; Rebecca Haynes, Self: Just 3% of SNAP users qualify for this carve-out; banning them would
disproportionately impact disabled, elderly and homeless people.; Chris Senko, Self: If someone qualifies for SNAP,
but lacks the facilities or the ability to cook their own food, their primary alternative is fast food. Don't take that
away from them.; William Yohey, Self: A terrible bill. Not everyone has access to a kitchen. What are they to do
when they want to get a meal?; Brenda Nelson, Self: Stop penalizing SNAP users who may not have access to
kitchen facilities and need fast food. OPPOSE; Sandra Rizzo, Self: Seriously? 3% of SNAP users use this. It's not easy
to always cook for one's self or family, or possible. This hurts disabled, elderly, seniors and others.; Dee Maitland,
Self: Tax breaks for private plane owners; starvation for low income people; Jeri Dow, Self: would
disproportionately impact disabled, elderly and homeless people; Kristen Abrahamson, Self: This bill could harm
the homeless population without kitchens that are unable to prepare a hot meal. Stop punishing the poor by
placing roadblocks to receiving food.; Roxanna Kearns, Self: While I'm not a fan of fast food | believe that it's a
choice and sometimes the most reasonable option for meals in areas where other food choices are limited. Some
people live in areas without access to supermarkets and fast food options are closer; Patricia Gerrodette, Self:
Some people don't have access to kitchens or maybe even a hotplate. It doesn't seem charitable to deny the
poorest some food.; Chris Ahearn, Self: Please oppose. Really? This bill wants to expand restrictions on SNAP for
fast food to our society's most vulnerable people? How can one possibly vote for this and claim to have common
decency. Please vote no. Thank you.; Jacqueline deSa, Self: A bill to slam the communities’ vulnerable . Banning
them would disproportionately impact disable, elderly and homeless people. "Feed the Homeless" - what Jesus
would do for sure.; Jennifer Horne, Self: More penalizing the poorest among us; Mitchell Smith, Self: Please stop
picking on society's most vulnerable. The savings would be negligible, even considering any health care savings.
Increase sales taxes on luxury items instead.; Karen Brown, Self: For some, fast food may be next to the only food
source readily available. This bill is unnecessary and cruel; Lisa Maczura, Self: My aunt was homeless for many
years. This bad bill feels personal.; Barbara Lucas, Self: expanding restrictions on using SNAP for fast food to our
society's most vulnerable people is just cruel and heartless. Lacks all compassionate; Nelson Morgan, Self: |
support people being able to eat.; Angela Buer, Self: Republicans have already severely restricted the use of SNAP
benefits. This ban would disproportionately impact disabled, elderly and unhoused people. | STRONGLY OPPOSE
this attack on poor people!; Jerrold Borchardt, Self: This bill would disproportionately impact the disabled, elderly,
and homeless. | would also affect people unable to prepare meals or who don't have homes and kitchens.
OPPOSED!; Margaret Tinsley, Self: Mean just to be mean. Will impact the most needy Arizonans, who may not
have access to a kitchen.. Please vote "no" to let them eat.; Jillian Ryan, Self: Just 3% of SNAP users qualify for this
carve-out; banning them would disproportionately impact disabled, elderly and homeless people; Jean Meconi,
Self: When you are working multiple jobs, fast food can make the difference between eating and not eating.;
Donna Rugg, Self: This bill is mean. Stop penalizing people who need SNAP to eat.; Bridget Clark-Cooper, Self:
Ridiculous! to further restrict SNAP for fast food- especially if those very vulnerable people don't have homes
(unhoused) or kitchens! This would disproportionately negatively impact the disabled, elderly, & homeless
people!; Marcia Tingley, Self: The fast-food carve-out currently impacts only 3% of SNAP users. The expanded
carve-out would disproportionately impact disabled, elderly, & homeless people. Oppose.; Theresa Ryan, Self:
Banning fast food would disproportionately impact disabled, elderly and homeless people.; Allen Brown, Self: |
oppose HB2107. So, under your bill if you are on SNAP, you won’t be able to buy your kid a Happy Meal? Shame
on Theresa Martinez!; Greg Olszta, Self: Rules already bar SNAP (food stamps) from use at most restaurants, but
the fast food carve-out exists for people who may not be able to prepare meals or who don't have homes and
kitchens. disproportionately impact disabled, elderly and homeless.; marcia stewart, Self: In a perfect world, fresh
food is better, but also expensive. Many SNAP users are disabled, homesless, elderly, cannot cook or afford fresh.
Fast food has options; Theresa Prichard, Self: This waiver is limited and for a valid reason. leave as it.; Sara Isett,
Self: Just 3% of SNAP users qualify for this carve-out, which makes this a performative waste of legislator's time
and taxpayer's money.; Claudia Yeager-Smith, Self: Expanding restrictions on using SNAP for fast food negatively
impacts disabled, elderly and homeless who may not have kitchens or the ability to prepare their food. STRONGLY
OPPOSE!!; Jonathan Brechner, Self: An attack on the poor? Why? Don't they vote for you, too? Don't you
represent them?; Mary Pena, Self: Just 3% of SNAP users qualify for this carve-out; banning them would
disproportionately impact disabled, elderly and homeless people.; Mary Keerins, Self: the fast food carve-out exists
for people who may not be able to prepare meals or who don't have homes and kitchens.; Jeanmarie Haney, Self:
Just 3% of SNAP users qualify for this “fast food” carve-out; banning them would disproportionately impact the
most vulnerable: disabled, elderly and homeless people who may not be able to prepare meals or who don't have
homes and kitchens.; Kathryn Avila Hammond, Self: Rules already bar SNAP from use at most restaurants, but the
fast food carve-out exists for people who may not be able to prepare meals or who don't have homes and kitchens.
Just 3% of SNAP users qualify, this harms the elderly, disabled and homeless; Erin Dahl, Self: | oppose the bill that
would expand restrictions on using SNAP for fast food to our society's most vulnerable people. Rules already bar
SNAP (food stamps) from use at most restaurants, but the fast food carve-out exists for people who may not be
able; Susan Ordway, Self: This would seriously impact the 3% of SNAP beneficiaries who are eligible for the fast
food exception because they are unable to cook for themselves.; Dennis Johnson, Self: "One man's meat is another
man's poison. The government should not regulate it's citizens diet.; JOHN FIENE, Self: Punishing the most
vulnerable in our state seems to be the status quo at the legislature. Expanding restrictions is just what SNAP users
need. LD1 voter; Aaron Essif, Self: Banning these people would disproportionately impact disabled, elderly and
homeless people.; Kristin White, Self: Instead of focusing punitively, why don’t we reward people who use their
SNAP benefits on fresh fruits and veggies. Better yet, why not use the traveling grocery nonprofit orgs as a
resource for reach.; Marin Lersch, Self: Not everyone can prepare meals at home, or may not even have homes.
This targets the most vulnerable for simply trying to stay fed.; Amy Gaiennie, Self: | oppose this bill that will
disproportionately impact disabled, elderly and homeless people.; Margie Gomez, Self: Thursday - HB2107 -
OPPOSE. Republicans have already severely restricted the use of SNAP benefits. This ban would disproportionately
impact disabled, elderly and unhoused people. | STRONGLY OPPOSE this attack on poor people!; Kathryn Dorn,
Self: We all have days when we're too busy or exhausted or ill to prepare meals for ourselves. Those of us who are
privileged enough to be able to buy themselves a nice takeout or delivery meal shoulldn't deprive SNAP recipients
of that option|; Erica Rivera, Self: Stop making it harder for people to SURVIVE. Just 3% of SNAP users qualify for
this carve-out; banning them would disproportionately impact disabled, elderly and homeless people.; Dimitrios
Gockel, Self: Banning them would disproportionately impact disabled, elderly and homeless people. Scheduled for
House Rural Economic Development Committee. This affects people with people with Disabilities and other
vulnerable people; Salie Travis, Self: As only about 3% of SNAP users qualify for option to use fast food with SNAP
benefits, | feel there may be a need for them to do so, like no home, no kitchen, no utilities. OPPOSE.; Felisa Gilley,
Self: Banning fast food from SNAP benefits would disproportionately impact disabled, elderly and homeless people.
You know, those people who don't have the resources (like a kitchen) or the physical ability to cook for
themselves.; Kymberli Ricks-WhiteColbourne, Self: As a person of faith | cannot support this bill. This carve-out is
only available to 3% of SNAP users already, giving food options to those without homes or kitchens to cook in or
those elderly or disabled who cannot safely cook for themselves.; Caleb Demeter, Self: This restriction would not
save a significant amount, and it would harm people that are already vulnerable; Susan Bowen, Self: JUST 3% OF
SNAP USERS QUALIFY FOR THIS CARVE-OUT; BANNING THEM WOULD DISPROPORTIONATELY IMPACT DISABLED,
ELDERLY AND HOMELESS PEOPLE.; Elizabeth Lehr, Self: This bill will disproportionately impact families who are
unhoused and living in temporary shelters such as low rate motels. In addition, it would create barriers for disabled
and elderly people who may not physically be able to cook for themselves.
HB2588, municipalities; planned communities; design; prohibition.
Support:
David Morris, AMERICANS FOR PROSPERITY AZ; Alexis Monet Bacs, THE LIBRE INITIATIVE ARIZONA; Jake Hinman,
ARIZONA NEIGHBORHOOD PROJECT; Andrea Hernandez Falcon, representing self; Yahaira Felix, representing self;
Hunter Anderson, representing self
Oppose:
Nick Ponder, LEAGUE OF ARIZONA CITIES & TOWNS; Mayor Robyn Prud'homme-Bauer, Clarkdale, representing
self; Craig McDermott, representing self; Heather Bernacki Wilkey, QUEEN CREEK, TOWN OF; Rodney Short, YUMA,
CITY OF; Margaret Babbitt-Pierce, representing self; Robert Wisler, APACHE JUNCTION, CITY OF; Paul Davenport,
representing self; Leigh Marino, City Of Cottonwood
All Comments:
Mayor Robyn Prud'homme-Bauer, Clarkdale, Self: Preemption - take away local control over design, architectural
or aesthetic requirements!; Paul Davenport, Self: This bill undermines local control with a one-size-fits-all mandate
that does not require passing on any savings to homebuyers. The Legislature should increase the housing supply
by restricting corporate home purchases and short-term rentals.
HB2946, municipalities; counties; development fees
Support:
Spencer Kamps, HOME BUILDERS ASSOCIATION OF CENTRAL AZ; Emily Ryan, Southern Arizona Home Builders
Association; Courtney Gilstrap LeVinus, Arizona Multihousing Association; Jake Hinman, HOME BUILDERS
ASSOCIATION OF CENTRAL ARIZONA
Oppose:
Tom Savage, LEAGUE OF ARIZONA CITIES & TOWNS; Katy Proctor, City Of Maricopa; Andrew McGuire League of
Arizona Cities and Towns, representing self; Dave Long, representing self; Janie Hydrick, representing self; Theresa
Ulmer, AZ MUNICIPAL WATER USERS ASSN; Judith Simons, representing self; Mary Pradelt, representing self;
Sandra Kravetz, representing self; Dianne Post, representing self; Kevin Brown, representing self; Sherrilynn James,
representing self; Rebecca Smith Gross, representing self; Lisa Olson, representing self; Beverlee Loat, representing
self; Beverly Janowitz-Price, representing self; Cynthia Couture, representing self; Sally Harvey, representing self;
Charlie Silver, representing self; Brenda Nelson, representing self; Gail Kamaras, representing self; Susan Morris,
representing self; Christina Mollica, representing self; Julie Golding, representing self; jacqueline Johnson,
representing self; Elizabeth Schauer, representing self; Brent Gibbs, representing self; Jeanne Casteen,
representing self; Mariana Spier, representing self; Michael Fiflis, representing self; Katherine Doman Sheydayi,
representing self; Laurie Stoff, representing self; Craig McDermott, representing self; Alisa McMahon, representing
self; Maegan Johnson , PHOENIX, CITY OF; Steve Gorman-Hackstadt, representing self; Fred Miller, representing
self; Jennifer Dawson, representing self; Kathleen Dubbs, representing self; Matthew Nelson, representing self;
Linda Edwards, representing self; Gail Block, representing self; Jo Ann Caruthers, representing self; Cassandra
Morano, representing self; Linda Block, representing self; Joan Murphy, representing self; Mary Nelson,
representing self; Martha O'Connor, representing self; Mariette Francis, representing self; Barbara Larson,
representing self; Kathy Pyner, representing self; Penny Boone, representing self; Rebecca Haynes, representing
self; Edna Weigel, representing self; Bart James, representing self; Gayle Meredith, representing self; Ralph
Meredith, representing self; William S. James, representing self; Mary Ganapol, representing self; Chris Senko,
representing self; Glenn Sollers, representing self; Charlotte Lis, representing self; Rebecca Daggett, representing
self; Amy Etzkorn, representing self; Bonnie Oakes, representing self; Sandra Rizzo, representing self; Ann Johnson,
representing self; Mary Martiniak, representing self; Katherine Lathrop, representing self; Dee Maitland,
representing self; Mary-Jeanne Fincher, representing self; Saher Afzal, representing self; Jeri Dow, representing
self; Rodney Short, YUMA, CITY OF; Carolyn Watson, representing self; Heather Bernacki Wilkey, QUEEN CREEK,
TOWN OF; Janet Senf, representing self; Roxanna Kearns, representing self; Linda Martin, representing self;
Francesca Pardes, representing self; Peter Coston, representing self; Patricia Gerrodette, representing self; Paula
Redinger, representing self; Kathryn Anderson, representing self; Chris Ahearn, representing self; Christine
Petersen, representing self; Kristen Abrahamson, representing self; Jacqueline deSa, representing self; Michael
Tarek, representing self; Carol Campbell, representing self; Jennifer Horne, representing self; Alicia Messing,
representing self; Eden Winget, representing self; Frederick James, representing self; Kathleen Schanus-Gohl,
representing self; Eric Kadel, representing self; Suzanne Zimmerman, representing self; Cynthia Wagner,
representing self; Libby Stortz, representing self; ALICE BUCK, representing self; Karen Brown, representing self;
Devon Sloan, representing self; Ann Lebert, representing self; Rivko Knox, representing self; Christopher Cerrato,
representing self; Nancy Hancock, representing self; STACEY NORDWALL, representing self; Paula Van Derven,
representing self; Pamela Chittenden, representing self; Leonora Midgley, representing self; Sharon Arnst,
representing self; Lisa Maczura, representing self; Remy Sinclair, representing self; Barbara Lucas, representing
self; Nelson Morgan, representing self; Susan Matheson, representing self; Patricia Brunner, representing self;
Angela Buer, representing self; Zinah Burke, representing self; Margaret Tinsley, representing self; Dieter Knecht,
representing self; Jerrold Borchardt, representing self; Jillian Ryan, representing self; Caroline Esmond,
representing self; John Cummings, representing self; Pam Spicer, representing self; Carol Rohe, representing self;
Kristan Larson, representing self; Allison Jackson, representing self; Jean Meconi, representing self; Bridget Clark-
Cooper, representing self; Donna Rugg, representing self; Marcella Deluca, representing self; Christa Trexler,
representing self; Marcia Tingley, representing self; Donna Corbin, representing self; Theresa Ryan, representing
self; marcia stewart, representing self; Linda Paul, representing self; Theresa Prichard, representing self; Janet
Lewis-Weaver, representing self; Sara Isett, representing self; Valarie Bryant, representing self; Claudia Yeager-
Smith, representing self; JoAnn McCay, representing self; Kymberli Ricks-WhiteColbourne, representing self;
William Bowlus-Root, representing self; Sue Diaz, representing self; Barbara Jones, representing self; Jonathan
Brechner, representing self; Ken Jones, representing self; Kathleen Woessner, representing self; Lisa Koenig,
representing self; Roy L Carrington Jr., representing self; Mary Pena, representing self; Allen Brown, representing
self; Mary Keerins, representing self; Kathryn Avila Hammond, representing self; Erin Dahl, representing self; Ginna
Carico, City Of Glendale; Mike Kunnecke, representing self; Sery Johnson, representing self; Melissa Boyle,
representing self; Mary Rose, representing self; Melinda Bell, representing self; Gina Gral, representing self;
Kathleen Sauer, representing self; Carolyn Drennan, representing self; JOHN FIENE, representing self; Gail Graves,
representing self; Michelle Lerman, representing self; Aaron Essif, representing self; Jane Johnson, representing
self; Jessie Kline Loganbill, representing self; Kristin White, representing self; RITA DEPUYDT, representing self;
Traci Garcia, representing self; Marin Lersch, representing self; Caleb Demeter, representing self; Joseph Johnson,
representing self; Julia Allison, representing self; Nadya Laliberte, representing self; Amy Gaiennie, representing
self; Susan Bowen, representing self; Margie Gomez, representing self; Kathryn Dorn, representing self; VICKI D
ELIA, representing self; Erica Rivera, representing self; Judy Wilkening, representing self; Shana Tevlin, representing
self; Elizabeth Lehr, representing self; Felisa Gilley, representing self; Salie Travis, representing self; Amy Licht,
representing self; Stephen Flaaen, representing self; Alison Danis, representing self; Lisa Wayman, representing
self; Amy Tremper, representing self; Mike Gardner, MESA, CITY OF
All Comments:
Andrew McGuire League of Arizona Cities and Towns, Self: With the League of Cities and Towns; Judith Simons,
Self: Legislative overreach. County & city officials know better what their needs & resources are in any given time
period.; Beverlee Loat, Self: leave local control with local communities; Brenda Nelson, Self: Leave cities and
counties to plan their own growth. OPPOSE; Michael Fiflis, Self: Unfairly ties local governments’ hands to charge
for and pay for services.; Alisa McMahon, Self: 1. This legislature has already squeezed localities too far. Stop
usurping local control. 2. Why should localities (taxpayers) have to front development costs? 3. Erasure of county
development fees is absurd. County taxpayers will pay the price.; Fred Miller, Self: Another "I know better than the
local rubes" bill. Sure you do.For someone who touts ‘over regulation’ on their website, you sure want to regulate
us dim-witted rural folks. Hopefully you'll be defeated this year.; Jennifer Dawson, Self: a host of restrictions
making it difficult for cities and counties to thoughtfully plan their growth. Legislative overreach.; Kathleen Dubbs,
Self: Again | say: local control please!; Linda Edwards, Self: This bill makes no sense.; Martha O'Connor, Self: Bill
makes it difficult for cities and counties to thoughtfully plan their growth.; Kathy Pyner, Self: This should be
determined by local offficials; Penny Boone, Self: NO! this is absurd; Rebecca Haynes, Self: This bill would create a
host of restrictions making it difficult for cities and counties to thoughtfully plan their growth.; Sandra Rizzo, Self:
This is an imposition on cities' rights.; Dee Maitland, Self: Stop interfering with local governments to benefit your
developer donors; Rodney Short, YUMA, CITY OF: This bill really hampers rural communities who have fiscally
responsible councils who try to keep development fees low. Keep it local.; Carolyn Watson, Self: Who benefits
from this law? Certainly not cities and counties attempting to manage growth and provide public services. Please
vote no and thank you.; Roxanna Kearns, Self: Do not make it difficult for cities and counties to thoughtfully plan
their growth by limiting increases and banning development fees.; Chris Ahearn, Self: Please oppose. We should
focus on enabling cities and counties to decide for themselves and their constituents what growth is acceptable
and desired, not place restrictions on them. Please vote no. Thank you.; Kristen Abrahamson, Self: Cities and
counties should be able to decide on their growth without state interference.; Jacqueline deSa, Self: An unjust bill.
cities and counties would be banned from charging development fees for parks and libraries or from basing fees on
residence size or number of bedrooms.; Michael Tarek, Self: cities and counties would be banned from charging
development fees for parks and libraries or from basing fees on residence size or number of bedrooms.; Karen
Brown, Self: Quality of life depends on the availability of public amenities and services. Do not restrict the ability
of local government to provide them.; Lisa Maczura, Self: Government overreach.; Barbara Lucas, Self: A bunch of
new restrictions making it difficult for cities and counties to thoughtfully plan their growth. Just NO; Angela Buer,
Self: Banning development fees for parks and libraries forces existing taxpayers to subsidize the amenities required
by new residents. This bill ensures that as Arizona grows, our access to essential community spaces will inevitably
diminish. | OPPOSE.; Margaret Tinsley, Self: This bill requires the ability to intuit the future that few have. Let cities
and counties deal with the realities in front of them at the time. Please vote NO.; Jerrold Borchardt, Self: | oppose
this bill that restricts the ability of cities and counties to carefully plan their growth.,; Jillian Ryan, Self: Would create
a host of restrictions making it difficult for cities and counties to thoughtfully plan their growth.; Jean Meconi, Self:
Municipalities need to manage growth so that infrastructure is in place.; Bridget Clark-Cooper, Self: This should
NOT move forward. It removes the ability of cities & counties to plan for & fund growth. It's up to each locale to
determine their growth- NOT up to the AZ Legislature to place unreasonable restrictions on cities & counties.;
Donna Corbin, Self: This makes it difficult for cities and counties to thoughtfully plan for growth.; Theresa Prichard,
Self: limits the local control of planning and development of their communities.; Sara Isett, Self: Just plain bad.; Sue
Diaz, Self: Growth planning should be left to cities and counties.; Mary Pena, Self: Would create a host of
restrictions making it difficult for cities and counties to thoughtfully plan their growth.; Allen Brown, Self: | oppose
HB2946. Cities and counties should be able to operate without unnecessary interference from the state.; Mary
Keerins, Self: Stay out of local politics - local is better; Kathryn Avila Hammond, Self: create a host of restrictions
making it difficult for cities and counties to thoughtfully plan their growth. Bans cities/counties from charging
development fees for parks and libraries.; Erin Dahl, Self: | oppose the bill that would create a host of restrictions
making it difficult for cities and counties to thoughtfully plan their growth.; JOHN FIENE, Self: Another anti-home
rule bill that restricts local and community planning. Further, banning local governments from collecting fees for
anything is State overreach. LD1 voter; Michelle Lerman, Self: Let cities and counties plan their own growth and
sustainability.; Caleb Demeter, Self: These restrictions are not productive, especially requiring unanimous
approval; Susan Bowen, Self: THIS BILL WOULD CREATE A HOST OF RESTRICTIONS MAKING IT DIFFICULT FOR CITIES
AND COUNTIES TO THOUGHTFULLY PLAN THEIR GROWTH. WHAT MORE CAN YOU COME UP WITH TO MAKE IT
DIFFICULT FOR COMMUNITIES TO SUCCEED? YOU ARE SUPPOSE TO BE SERVING THEM!; Margie Gomez, Self: This
bill strips cities and counties of the flexibility needed to manage local growth. Imposing rigid, one-size-fits-all caps
on fee adjustments ignores the unique economic realities and infrastructure needs of our diverse communities. |
OPPOSE.; Kathryn Dorn, Self: Please back off and let our cities govern their own city-level decisions! | think the
Legislature has more than enough state-level work on its own plate already.; Erica Rivera, Self: Would create a host
of restrictions making it difficult for cities and counties to thoughtfully plan their growth; Felisa Gilley, Self: This bill
would create a host of restrictions making it difficult for cities and counties to thoughtfully plan their growth.; Salie
Travis, Self: It seems this proposal would create hardships for cities and counties to plan for future growth and
restrict fees. | personally would prefer to live in an area that was deliberately and cautiously planned, fees included.
Oppose.; Stephen Flaaen, Self: Leave growth plans up to the municipalities and counties.
HB2950, tourism improvement areas; municipalities; counties
Testified in support:
Kim Sabow, Arizona Lodging & Tourism Association
Support:
Marcus Carney, representing self; Ron Price, representing self; Steve Barclay, BEER & WINE DISTRIBUTORS OF
ARIZONA; Andrea Kadar, representing self; Dan Bogert, AZ RESTAURANT ASSOCIATION; Larry Hilliard, representing
self; Vera Markgraf, representing self; Julie Pace, representing self; Randy Brown, representing self; Mayor Cal
Sheehy , representing self; Starr Costa, representing self; Mackenzie Shane, GREATER PHOENIX CHAMBER OF
COMMERCE; Gregory Flachman, representing self; Denbie Nash, representing self; Sally Evans, representing self;
Don Howard, representing self; Alison Brooks, representing self; Cameron Molloy, representing self; Devney
Majarie, representing self; Tom Farley, Arizona Association Of Realtors, GREATER PHOENIX LEADERSHIP INC; Mark
Mingura, representing self; Johanna Gomez, representing self; Alice Bauman, representing self; Patrick McDaniel,
PHOENIX COMMUNITY ALLIANCE; Michael Meister, representing self; James Daniel Fitzgerald, representing self;
Jon Schmieder, representing self; Kelsey Sparks, representing self; Kate Birchler, representing self; Dana Swan,
representing self; Emily Burns, representing self
Oppose:
Cathy Schwanke, representing self; Andres Aguerrette, representing self; Dwight Kadar, representing self; Laurie
Reiner, representing self; James Mosher, representing self; Shaulan McDaniel, representing self; Shirley Dye,
representing self; April Smith, representing self; Dale Brewer, representing self; Michael Gabrick, representing self;
Charles Merendo, representing self; Charmaine Roth, representing self; Bonnie Kistler, representing self; Janelle
Solomon, representing self; Susan O'Daniel, representing self; K Webster, representing self; Randal Scott,
representing self; Pam Reinke, representing self; Jean Ferguson, representing self; Kathleen Clark, representing
self; John Yoder, representing self; Melanie Hutchings, representing self; Cherie Anello, representing self; Peter
Anello, representing self; Stephen Harris, representing self; Donna Booth, representing self; Kristine Nelson,
representing self; Cara Kretz, representing self; Carol Kliewer, representing self; Sydney Brown, representing self;
Garrett Bowers, representing self; Christi Sourk, representing self; Nikki Colletti, representing self; Steve Hetsler,
representing self; Michael Steffens, representing self; Bill Brown, representing self; Carmela Barna, representing
self; David Kahn, REPUBLICAN LIBERTY CAUCUS OF ARIZONA; Jamie Alford, representing self; Susan Bolt,
representing self; Pam Anderson, representing self; Mozelle Ault, representing self; Diana Meyer, representing
self; J Holmes, representing self; C D Tavares, representing self; Jeanne Tavares, representing self; Thomas Simacek,
representing self; William & Mary Jurica, representing self; Colleen Ryan, representing self; Linda Jorgensen,
representing self; Lorraine S, representing self; Leslie White, representing self; Vicki Vaughn, representing self;
Dianna Gates, representing self; Bridget Nelke, representing self; Deanna Schreckler, representing self; Marcella
Cronenberg, representing self; Maria Lopez, representing self; Aimee Yentes, AZ FREE ENTERPRISE CLUB; Jeffrey
Luft, representing self; Roy Scott Lassell, representing self; Kathryn Clark, representing self; Connie Wright,
representing self; LEE YARBROUGH, representing self; Renee Yarbrough, representing self; Bill Harenburg,
representing self; Merl Nielsen, representing self; Bonnie Lund, representing self; Barbara Carter, representing self;
Shuron Harvey, representing self; Carrie Cox, representing self; brenda simon, representing self; Douglas Simon,
representing self; Michal Joyner, representing self; Barbara Scott, representing self; Anne Girdler, representing
self; Chandrasekhar Doniparthi, representing self; Joyce Mansur, representing self; John Paglia, representing self;
Lynda Patrick-Hayes, LD1OSTRONGI, representing self; Steve Kolter, representing self; Jean Rice, representing self;
conrad tolson, representing self; Pam Throw, representing self; Patricia Keitel, representing self; Mary Jamsa,
representing self; eileen acosta, representing self; James Roth, representing self; Pamela Calik, representing self;
Katherine Cabianca, representing self; Anne White, representing self; Jane Breakiron, representing self; Helen Fong,
representing self; Joni Hahn, representing self; MARY PRIEBE, representing self; Margaret Barnes, representing
self; Brent Michelson, representing self; louise liggett, representing self; Joelene Williamson, representing self;
Cynthia Sampson, representing self; Kathryn Farkas, representing self; Michele Lennane-Root, representing self;
Priscilla Moore, representing self; Dayle Hartgerink, representing self; Donald Koeppen, representing self; Donalda
Bond, representing self; Vickie Parks, representing self; Ronald Pardini, representing self; Bev Miller, representing
self; Shay Cardell, representing self; K Caillier, representing self; Robin Davis, representing self; Susan Cheatham,
representing self; karen enns, representing self; Patricia Phillips, representing self; Chass Onkst, representing self;
Marlene Leatherwood, representing self; Linda Burrier, representing self; Barton Anderson, representing self; Doris
Mills, representing self; joel strabala, representing self
All Comments:
Ron Price, Self: Wish to speak in favor of this bill; Julie Pace, Self: good tool to help industry pool together and
increase tourism to benefit their local areas and it is 100% voluntary so local businesses can decide to participate
and whether to implement in their area.; Randy Brown, Self: This "idea" needs to die! Don't force others to pay for
your "Desires". Nothing is stopping a business from promoting tourism by writing checks out of their own
pocketbook. This is a Bill for Bullies!; Mayor Cal Sheehy , Self: This enabling legislation will provide opportunities, if
necessary, for communities to make local decisions that make the most sense for their community.; Dwight Kadar,
Self: Establishes an unconstitutional tax where some hotels can force their competitors into association and pay a
tax to promote the area for tourism.; Laurie Reiner, Self: | have too many questions about this bill. What is a
tourism improvement area here? Is there tourism already existing in a location that needs to be improved?
Define a tourism improvement area, and who benefits from the improvements.; Patrick McDaniel, PHOENIX
COMMUNITY ALLIANCE: Phoenix Community Alliance supports HB2950. This bill provides a funding mechanism
that will allow for increased promotion and marketing.; James Mosher, Self: HB2950 would establish an
unconstitutional tax whereby certain hotels could compel their competitors into association and pay a tax to
promote tourism.; Shaulan McDaniel, Self: It's unconstitutional. Government should not be pushing private
businesses into associations. To much of a risk of perhaps bailing out businesses for bad business practices.; Shirley
Dye, Self: We in rural AZ love our tourists but this legislation forms a taxing district and | am very involved in town
business and this taxing district is not the way to go. We are doing fine with grants and and existing taxing options.
No on taxing distric; April Smith, Self: Do not vote for this tax; Randal Scott, Self: No to this one; Melanie Hutchings,
Self: Say NO to unconstitutional taxes.; Kristine Nelson, Self: Please-No unconstitutional taxes in Arizona!; Cara
Kretz, Self: say no to unconstitutional taxes!; Sydney Brown, Self: This unconstitutional tax legislation needs to
STOP being re-introduced! Defeat it!; Garrett Bowers, Self: GARY BOWERS, 2ND VC, YAVGOP,; Bill Brown, Self: Ugh,
more taxes on tourists via hotels as tax collectors. Disgusting!; David Kahn, REPUBLICAN LIBERTY CAUCUS OF
ARIZONA: This bill creates another government agency with the power to levy taxes. Arizona should promote free
markets instead of government micromangement.; J Holmes, Self: Unconstitutional tourism tax and possibly unfair
distribution of tax dollars to private industries.; Linda Jorgensen, Self: Please reject this bill; Leslie White, Self: Bad
idea! Why establish an unconstitutional tax! VOTE NO! Leslie White LDS Oregon District PC; Vicki Vaughn, Self:
Establishes an unconstitutional tax where some hotels can force their competitors into association and pay a tax to
promote the area for tourism.; Bridget Nelke, Self: | OPPOSE THIS BILL; Marcella Cronenberg, Self: | am saying no to
unconstitutional taxes!; Maria Lopez, Self: As a Precinct and State Committeeman, | Do not support this bill since it
establishes an unconstitutional tax where some hotels can force their competitors into association and pay a tax to
promote the area for tourism.; Aimee Yentes, AZ FREE ENTERPRISE CLUB: Emailed testimony.; Roy Scott Lassell,
Self: | do not support this bill. It is not appropriate and is a bad bill.; Kathryn Clark, Self: We should not impose a tax
on services like hotels for projects that should be supported by state or city budgets.; Bonnie Lund, Self: Not
necessary.; Patricia Keitel, Self: unconstitutional taxes; Mary Jamsa, Self: Say no to unconstitutional taxes!; James
Roth, Self: Establishes an unconstitutional tax where some hotels can force their competitors into association and
pay a tax to promote the area for tourism.; Helen Fong, Self: Clicked on wrong choice the first time.; louise liggett,
Self: Unconstitutional taxes are unconstitutional for a reason. Let's be reasonable. Just stop it dead. You can do it.;
Joelene Williamson, Self: | do not support. Similar taxes have already been found to be unconstitutional and this
looks like a bureaucratic mess disguising something sinister for the industry.; Kathryn Farkas, Self: Unconstitutional
taxation; Dayle Hartgerink, Self: vote NO LD28; Donald Koeppen, Self: Reread material; Donalda Bond, Self: no on
this bill please; Bev Miller, Self: Unconstitutional taxes.; K Caillier, Self: | am a Pinal County Committeeman And |
oppose this bill.; Chass Onkst, Self: This bill would add an unconstitutional tax via the TIA; joel strabala, Self: |
disapprove of HB2950, as this is a misuse of state funds.
10
PLEASE. COMPLETE THIS FORM. FOR THE: PUBLIC RECORD
HOUSE OF REPRESENTATIVES
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ARIZONA STATE LEGISLATURE
Fifty-seventh Legislature - Second Regular Session
COMMITTEE ATTENDANCE RECORD
COMMITTEE ON RURAL ECONOMIC DEVELOPMENT
CHAIRMAN: Teresa Martinez VICE-CHAIRMAN: — Chris Lopez
DATE 02/19/26
CONVENED 4:04
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Attachment 3
ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2950: tourism improvement areas; municipalities; counties
Sponsor: Representative Wilmeth, LD 2
Committee on Rural Economic Development
Overview
Enables a governing body to approve the formation of a tourism improvement area.
History
Special taxing districts are usually created to fill a need and to enable the provision of
services in an area that might otherwise be limited from receiving those services for various
reasons, including size, location, financial limitations or unavailability of other government
support. The formation of a special taxing district creates a funding stream to pay for the
desired or needed services by placing the responsibility on those who benefit from that
service.
Title 48 of the Arizona Revised Statutes currently allows and outlines the process for the
formation of various types of special taxing districts including fire districts, irrigation
districts, hospital districts, pest abatement districts and power districts. Although the
specific process depends on the type of district created, the formation in many cases requires
the submission of petitions to the county board of supervisors followed by a public hearing.
Sometimes an election may be required to form a district.
Provisions
Tourism Improvement Area
1. Authorizes a governing body, on presentation of a petition, to approve the formation of a
tourism improvement area. (Sec. 1)
2. Delineates information that a petition for the formation of the tourism improvement area
must include. (Sec. 1)
3. Allows a lodging business owner to appoint an authorized agent to act as the lodging
business owner's representative. (Sec. 1)
4. Deems the lodging business owner's representative as the business owner for the
purposes of any required signature, serving on a board or other purposes authorized by
the owner. (Sec. 1)
5. Asserts a governing body has no obligation to obtain other information as to the
ownership of the lodging business and its determination of ownership is final and
conclusive. (Sec. 1)
Tourism Improvement Area Plan
O Prop 105 (45 votes) 0 Prop 108 (40 votes) 0 Emergency (40 votes) O Fiscal Note
Initials PB HB 2950
2/6/2026 Page 1 Rural Economic Development
Attachment Uy
6. Requires a tourism improvement area plan be prepared before the required public
hearing on the proposed tourism improvement area is held. (Sec. 1)
7. Outlines information that must be included in the tourism improvement area plan. (Sec.
1)
8. Asserts lodging business assessments levied must provide benefits to lodging businesses
and associated industries located within the tourism improvement area that are subject
to the assessment. (Sec. 1)
9. Specifies that lodging business assessments may vary by types or classes of lodging
businesses as described in the tourism improvement area plan. (Sec. 1)
10. Specifies the lodging business assessment may be levied based on:
a. a fixed rate per transient lodging transaction per day; or
b. the percentage of transient lodging sales. (Sec. 1)
11. Outlines stipulations for contesting the validity of a lodging business assessment. (Sec. 1)
12. Requires tourism improvement area activities be designed to promote tourism and
lodging to enhance the economic development climate in the improvement area. (Sec. 1)
Tourism Improvement Area Formation
13. Authorizes a governing body, upon receipt of a valid petition, to adopt a resolution of
intention to consider the formation of a tourism improvement area. (Sec. 1)
14. Outlines information that must be included in the resolution of intention. (Sec. 1)
15. Provides requirements for noticing and conducting the public hearing relating to the
resolution of intention. (Sec. 1)
16. Requires the governing body to consider public testimony regarding a proposed tourism
improvement area. (Sec. 1)
17. Allows a lodging business to submit a written objection to the governing body prior to the
conclusion of the public hearing. (Sec. 1)
18. Stipulates on receiving written objections from lodging business owners representing 50%
or more of the total rooms within the proposed tourism improvement area:
a. the public hearing must end; and
b. no further proceedings on the formation of the tourism improvement area may be held
for a period of one year after the date of the hearing. (Sec. 1)
19. Provides restrictions relating to forming a proposed tourism improvement area in an
unincorporated territory or within the territorial jurisdiction of another municipality or
county without consent. (Sec. 1)
20. Limits the initial term and subsequent renewals of the tourism improvement area to 10
years. (Sec. 1)
21. Subjects a lodging business that commences operation during the term of the tourism
improvement area to the lodging business assessment. (Sec. 1)
Tourism Improvement Area Management
Initials PB HB 2950
2/6/2026 Page 2 Rural Economic Development
22.
23.
24,
25.
26,
27.
28.
29.
30.
31.
32.
33.
34,
35.
36.
37.
38.
Requires an owners' board or their authorized representatives to govern the tourism
improvement area and permits the representative of a municipality or county to have a
nonvoting, ex officio seat on the governing board. (Sec. 1)
Instructs the governing body to contract with its destination marketing organization
(DMO) to manage and implement the tourism improvement area activities. (Sec. 1)
Asserts the DMO has any powers possessed by a nonprofit corporation, including
accepting donations and receiving grants. (Sec. 1)
Prescribes reporting requirements for the DMO. (Sec. 1)
Tourism Improvement Area Plan Amendments
Allows a governing body to amend the tourism improvement area plan on written request
of the DMO. (Sec. 1)
Instructs a governing body, for tourism improvement area plan amendments that include
a new or increase lodging assessment, to hold a public hearing on the amendment and
provide a meeting notice to the owner of each lodging business subject to the lodging
business assessment. (Sec. 1)
Stipulates a public hearing is not required if the amendment does not include a new or
increased assessment. (Sec. 1)
Restricts amendments from including any changes to the tourism improvement area's
boundaries. (Sec. 1)
Lodging Business Assessments
Requires the DMO to establish, charge and collect lodging business assessments on the
lodging businesses located in the tourism improvement area. (Sec. 1)
Limits the assessments to $5 or 5% per room sold per night on the lodging business rooms
in the tourism improvement area. (Sec. 1)
Outlines the process and requirements for levying, collecting and disbursing the
assessments from lodging businesses to the local government's treasurer where the
tourism improvement area is located. (Sec. 1)
Provides reporting requirements relating to the amount of the assessments collected.
(Sec. 1)
Specifies the statutory provisions relating to transaction privilege taxes govern the
administration of levying the assessment with exceptions. (Sec. 1)
Tourism Improvement Area Renewal and Dissolution
Allows a tourism improvement area to be renewed and engage in different tourism
improvement activities than the original tourism improvement area. (Sec. 1)
Specifies any remaining monies held by the tourism improvement area be transferred to
the renewed tourism improvement area. (Sec. 1)
Stipulates a 60-day period each year in which the lodging business owners may request
dissolution of the tourism improvement area. (Sec. 1)
Outlines the process and requirements for tourism improvement area dissolution,
including petition submission and holding a public hearing. (Sec. 1)
Initials PB HB 2950
2/6/2026 Page 3 Rural Economic Development
39. Allows the governing body to adopt a resolution dissolving the tourism improvement area
upon:
a. the area satisfying all debts of the tourism improvement area; or
b. upon finding that there has been misappropriation of monies, malfeasance or a
violation of law in connection with the management of the tourism improvement area.
(Sec. 1)
40. Requires, on the dissolution or expiration without renewal, remaining monies of the
tourism improvement area to the spent in accordance with the area plan or refunded to
the appropriate lodging business owners. (Sec. 1)
41. Stipulates monies must be refunded using the same method and basis that was used to
calculate the assessments levied in the fiscal year in which the tourism improvement area
is dissolved or expires. (Sec. 1)
Miscellaneous
42. Defines pertinent terms. (Sec. 1)
43. Contains a legislative findings clause. (Sec. 2)
Initials PB HB 2950
2/6/2026 Page 4 Rural Economic Development
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. —_HB 2950
DATE February 19, 2026 MOTION: bP
PASS AYE y NAY PRESENT | ABSENT
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ATTACHMENT. 5
ARIZONA HOUSE OF REPRESENTATIVES
57th Legislature, 2nd Regular Session
Majority Research Staff
HB 2946; municipalities; counties; development fees
Sponsor: Representative Powell, LD 14
Committee on Rural Economic Development
Overview
Revises development fee requirements for municipalities and counties.
History
Statute allows local governments to assess development fees to offset costs associated with
providing necessary public services to new developers.
Developers of residential dwelling units are required to pay development fees when
construction permits are issued or later, if specified in a development agreement to allow
deferral. The deferred fees shall be paid no later than 15 days after the issuance certificate
of occupancy. The development agreement shall provide for the value of any deferred fees to
be supported by appropriate securities, including a surety bond, letter of credit or cash bond.
Statute prohibits local governments from assessing new or increased fees for 24 months after
a project receives final approval or its first building permit, if the site plan remains
unchanged. Developers are prohibited from extending the 24-month fee-lock through
renewals or amendments of their site plans or subdivision plats. Additionally, property
owners are only eligible for a refund on excess development fees if the actual infrastructure
costs are at least 10% lower than the original forecast. If the cost difference is less than 10%,
the local government is not required to issue a refund (A.R.S. §§ 9-463.05, 11-1102).
Development agreement is a voluntary, legally binding contract between a municipality or
county and a landowner or developer that establishes the rules, regulations and financial
commitments for a project over a specified period (A.R.S. § 9-500.05).
Provisions
Municipal Development Fees
1. Revises the requirements for development fee payments by allowing a residential
developer to elect to pay development fees at the time the construction permit is issued
or to defer payment to not more than 15 days after the certificate of occupancy is issued.
2. Requires municipalities to grant fee deferrals if the developer secures the amount with a
surety bond, letter of credit or cash bond. (Sec. 1)
3. Prohibits municipalities from requiring:
a. adevelopment agreement as a condition of allowing deferred payments; and
O Prop 105 (45 votes) 0 Prop 108 (40 votes) O Emergency (40 votes) O Fiscal Note
Initials PB HB 2946
2/16/2026 Page 1 Rural Economic Development
Attachment lo
b. adevelop to pay development fees earlier than the time elected by the developer. (Sec.
1)
4. Stipulates, for municipalities that require as a condition of development approval the set
aside of active or passive open space, the issuance of a credit towards any fees to fund any
park facilities or facility expansion. (Sec. 1)
5. Requires municipalities to provide for reimbursement from the development fees paid
from all development that will use those facilities or facility expansions of the actual costs
of the construction or improvement of contributions to or dedication of the public facilities
required as a condition of development approval. (Sec. 1)
6. Stipulates a municipality that imposes a construction contracting excise tax rate, the full
amount must be treated as a contribution to the capital costs of necessary public services
provide to development for which the fees are assessed. (Sec. 1)
7. Prohibits the municipality from distinguishing between residential developments based
on the size of the residential dwelling unit or number of bedrooms. (Sec. 1)
8. Establishes limits on the increases in current development fees including:
a. for increases less than 25%; implemented in two equal annual installments;
b. for increases between 25% and 50%; implemented in four equal annual installments;
c. prohibits increases from exceeding 50% of the current fee; and
d. fees can only be increased once every four years; and
e. prohibits fees from being applied retroactively. (Sec. 1)
9. Outlines conditions for which a development fee rate may be increased beyond the
specified limits. (Sec. 1)
10. Revises the types of developments to which a new development fee or an increased portion
of modified development fee cannot be assessed against. (Sec. 1)
11. Removes the restriction preventing developers from extending their 24-month fee period
through site plan renewals or amendments. (Sec. 1)
12. Removes the specification, for a current owner be permitted to receive a refund, that the
difference between the actual and estimated cost of the development fee is greater than
10%. (Sec. 1)
13. Prohibits a municipality from assessing a development fee on the development of an
accessory dwelling units. (Sec.1)
14. Modifies the definition of necessary public service and service area. (Sec. 1)
15. Includes a criterion for municipalities in increasing any water or wastewater rate or rate
component, fee or service charge. (Sec. 2)
County Development Fees
16. Allows residential developers to pay development fees 15 days after the certificate of
occupancy is issued. (Sec. 3)
17. Removes language relating to allowing residential developers to pay development fees at
a time as specified in the development agreement. (Sec. 3)
18. Establishes limits on the increases in current development fees including:
a. for increases less than 25%; implemented in two equal annual installments;
Initials PB HB 2946
2/16/2026 Page 2 Rural Economic Development
b. for increases between 25% and 50%; implemented in four equal annual installments;
c. prohibits increases from exceeding 50% of the current fee; and
d. fees can only be increased once every four years; and
e. prohibits fees from being applied retroactively. (Sec. 3)
19, Removes the specification, for a current owner be permitted to receive a refund, that the
difference between the actual and estimated cost of the development fee is greater than
10%. (Sec. 3)
20. Prohibits counties from assessing development fees on the development of an accessory
dwelling units. (Sec. 3)
Miscellaneous
21. Defines accessory dwelling unit. (Sec.1, 3)
22. Technical and conforming changes. (Sec. 1, 3)
Initials PB HB 2946
2/16/2026 Page 3 Rural Economic Development
Fifty-seventh Legislature Rural Economic Development
Second Regular Session H.B. 2946
PROPOSED
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2946
(Reference to printed bill)
Amendment instruction key:
[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
{Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
LGREEN-STREKEOUT-FIE-BRACKEFS] indicates new text removed from statute
or previously enacted session law.
[Green—strtkeout—tbrackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green—strikeout—itr-carets>> indicates a section removed from the bill.
The bill as proposed to be amended is reprinted as follows:
Section 1. Section 9-463.05, Arizona Revised Statutes, is amended
to read:
9-463.05. Development fees; imposition by cities and towns;
infrastructure improvements plan; annual report;
advisory committee; limitation on actions;
definitions
A. <A municipality may assess development fees to offset costs to
9 the municipality associated with providing necessary public services to a
10 development, including the costs of infrastructure, improvements, real
11 property, engineering and architectural services, financing and
12 professional services required for the preparation or revision of a
13 development fee pursuant to this section, including the relevant portion
14 of the infrastructure improvements plan.
CONDOR WDM BE
15 B. Development fees assessed by a municipality under this section
16 are subject to the following requirements:
17 1. Development fees shall result in a beneficial use to the
18 development.
19 2. The municipality shall calculate the development fee based on
20 the infrastructure improvements plan adopted pursuant to this section.
21 3. The development fee shall not exceed a proportionate share of
22 the cost of necessary public services, based on service units, needed to
23 provide necessary public services to the development.
24 4. Costs for necessary public services made necessary by new
25 development shall be based on the same level of service provided to
26 existing development in the service area. Attachment F
House Amendments to H.B. 2946
Omron fh WM Fe
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5. Development fees may not be used for any of the following:
~ (a) Construction, acquisition or expansion of public facilities or
assets other than necessary public services or facility expansions
identified in the infrastructure improvements plan.
(b) Repair, operation or maintenance of existing or new necessary
public services or facility expansions.
(c) Upgrading, updating, expanding, correcting or replacing
existing necessary public services to serve existing development in order
to meet stricter safety, efficiency, environmental or _ regulatory
standards.
(d) Upgrading, updating, expanding, correcting or _ replacing
existing necessary public services to provide a higher level of service to
existing development.
(e) Administrative, maintenance or operating costs of the
municipality.
6. Any development for which a development fee has been paid is
entitled to the use and benefit of the services for which the fee was
imposed and is entitled to receive immediate service from any existing
facility with available capacity to serve the new service units if the
available capacity has not been reserved or pledged in connection with the
construction or financing of the facility.
7. Development fees may be collected if any of the following
occurs:
(a) The collection is made to pay for a necessary public service or
facility expansion that is identified in the infrastructure improvements
plan and the municipality plans to complete construction and to have the
service available within the time period established in the infrastructure
tmprovernent IMPROVEMENTS plan, but in no event longer than the time period
provided in subsection H-~ I, paragraph 3 of this section.
(b) The municipality reserves in the infrastructure improvements
plan adopted pursuant to this section or otherwise agrees to reserve
capacity to serve future development.
(c) The municipality requires or agrees to allow the owner of a
development to construct or finance the necessary public service or
facility expansion and any of the following appty APPLIES:
(i) The costs incurred or money advanced are credited against or
reimbursed from the development fees otherwise due from a development.
(ii) The municipality reimburses the owner for those costs from the
development fees paid from all developments that will use those necessary
public services or facility expansions.
(i171) For those costs incurred the municipality allows the owner to
assign the credits or reimbursement rights from the development fees
otherwise due from a development to other developments for the same
category of necessary public services in the same service area.
8. Projected interest charges and other finance costs may be
included in determining the amount of development fees only if the monies
are used for the payment of principal and interest on the portion of the
House Amendments to H.B. 2946
OnNoaoofPwWNDM FE
bonds, notes or other obligations issued to finance construction of
necessary public. services or facility expansions identified in _ the
infrastructure improvements plan.
9. Monies received from development fees assessed pursuant to this
section shall be placed in a separate fund and accounted for separately
and may only be used for the purposes authorized by this section. Monies
received from a development fee identified in an _ infrastructure
improvements plan adopted or updated pursuant to subsection D of this
section shall be used to provide the same category of necessary public
services or facility expansions for which the development fee was assessed
and for the benefit of the same service area, as defined in_ the
infrastructure improvements plan, in which the development fee was
assessed. Interest earned on monies in the separate fund shall be
credited to the fund.
10. The schedule for payment of fees shall be provided by the
municipality. Based on the cost identified in the infrastructure
improvements plan, the municipality shall provide a credit toward the
payment of a development fee for the required or agreed to dedication of
public sites, improvements and other necessary public services or facility
expansions included in the infrastructure improvements plan and for which
a development fee is assessed, to the extent the public. sites,
improvements and necessary public services or facility expansions are
provided by the developer. The developer of residential dwelling units
shatt—te—trequtired_to—_pay—tevetopment—fees—mtren—constructton—_permits— for
credit—or—cash—bordt MAY ELECT TO PAY DEVELOPMENT FEES AT THE TIME THE
CONSTRUCTION PERMIT FOR THE RESIDENTIAL DWELLING UNITS IS ISSUED OR MAY
ELECT TO DEFER PAYMENT OF THE DEVELOPMENT FEES TO NOT MORE THAN FIFTEEN
DAYS AFTER THE CERTIFICATE OF OCCUPANCY IS ISSUED. IF THE DEVELOPER
ELECTS TO DEFER PAYMENT OF THE DEVELOPMENT FEES FOR NOT MORE THAN FIFTEEN
DAYS AFTER THE CERTIFICATE OF OCCUPANCY IS ISSUED, THE MUNICIPALITY SHALL
ALLOW THE DEFERRED PAYMENT OF THE DEVELOPMENT FEES IF THE DEVELOPER
PROVIDES SECURITY IN AN AMOUNT EQUAL TO THE DEFERRED DEVELOPMENT FEES.
THE SECURITY PROVIDED BY THE DEVELOPER MAY BE IN THE FORM OF A SURETY
BOND, LETTER OF CREDIT OR CASH BOND. A MUNICIPALITY MAY NOT REQUIRE A
DEVELOPMENT AGREEMENT PURSUANT TO SECTION 9-500.05 AS A CONDITION OF
ALLOWING DEFERRED PAYMENT OF DEVELOPMENT FEES. A MUNICIPALITY MAY NOT
REQUIRE A DEVELOPER TO PAY DEVELOPMENT FEES EARLIER THAN THE TIME ELECTED
BY THE DEVELOPER PURSUANT TO THIS PARAGRAPH.
House Amendments to H.B. 2946
CONDO HRWDM
11. If a municipality requires as a condition of development
approval the construction or improvement of, contributions to or
dedication of any facilities that were not included in a_ previously
adopted infrastructure improvements plan, the municipality shall cause the
infrastructure improvements plan to be amended to include the facilities
and shall provide a credit toward the payment of a development fee for the
construction, improvement, contribution or dedication of the facilities to
the extent that the facilities will substitute for or otherwise reduce the
need for other similar facilities in the infrastructure improvements plan
for which development fees were assessed. IF A MUNICIPALITY REQUIRES AS A
CONDITION OF DEVELOPMENT APPROVAL THE SET ASIDE OF ACTIVE OR PASSIVE OPEN
SPACE, THE MUNICIPALITY SHALL ISSUE A CREDIT TOWARD ANY DEVELOPMENT FEES
IDENTIFIED IN THE INFRASTRUCTURE IMPROVEMENTS PLAN TO FUND ANY PARK
FACILITIES OR FACILITY EXPANSION. ON REQUEST OF THE INDIVIDUAL OR ENTITY
SEEKING DEVELOPMENT APPROVAL, INSTEAD OF ISSUING A CREDIT TOWARD THE
PAYMENT OF DEVELOPMENT FEES, THE MUNICIPALITY SHALL PROVIDE FOR
REIMBURSEMENT FROM THE DEVELOPMENT FEES PAID FROM ALL DEVELOPMENT THAT
WILL USE THOSE FACILITIES OR FACILITY EXPANSIONS OF THE ACTUAL COSTS OF
THE CONSTRUCTION OR IMPROVEMENT OF, CONTRIBUTIONS TO OR DEDICATION OF THE
PUBLIC FACILITIES REQUIRED AS A CONDITION OF DEVELOPMENT APPROVAL.
12. The municipality shall forecast the contribution to be made in
the future in cash or by taxes, fees, assessments or other sources of
revenue derived from the property owner towards the capital costs of the
necessary public service covered by the development fee and shall include
these contributions in determining the extent of the burden imposed by the
development. Segimiyg—August—t,—2tt+ For purposes of calculating the
required offset to development fees pursuant to this subsection, if a
municipality imposes a construction contracting or similar excise tax
rate[>] [in excess of the percentage amount of the transaction privilege
tax rate imposed on the majority of other transaction privilege tax
classifications, the entire excess portion of the construction contracting
or similar excise tax] [THE—FUttE—~AMHOUTF] shall be treated as a
contribution to the capital costs of necessary public services provided to
development for which development fees are assessed, unless the excess
portion was already taken into account for such purpose pursuant to this
subsection.
13. If development fees are assessed by a municipality, the fees
shall be assessed against commercial, residential and_ industrial
development. >—except—ttat The municipality may distinguish between
different categories of residential, commercial and industrial development
in assessing the costs to the municipality of providing necessary public
services to new development and in determining the amount of the
development fee applicable to the category of development, EXCEPT THAT THE
MUNICIPALITY MAY NOT DISTINGUISH BETWEEN RESIDENTIAL DEVELOPMENTS ON THE
BASIS OF THE SIZE OF THE RESIDENTIAL DWELLING UNIT OR NUMBER OF BEDROOMS.
If a municipality agrees to waive any of the development fees assessed on
a development, the municipality shall reimburse the appropriate
House Amendments to H.B. 2946
OND OF WDM FP
development fee accounts for the amount that was waived. The municipality
shall provide notice of any such waiver to the advisory committee
established pursuant to subsection @& H of this section within thirty
days.
14. In determining and assessing a development fee applying to land
in a community facilities district established under title 48, chapter 4,
article 6, the municipality shall take into account all_ public
infrastructure provided by the district and capital costs paid by the
district for necessary public services and shall not assess a portion of
the development fee based on the infrastructure or costs.
15. THE ADOPTION OF AN INCREASE IN A CURRENT DEVELOPMENT FEE
PURSUANT TO SUBSECTION D OF THIS SECTION IS SUBJECT TO THE FOLLOWING:
(a) AN INCREASE OF LESS THAN TWENTY-FIVE PERCENT OF THE CURRENT
DEVELOPMENT FEE SHALL BE IMPLEMENTED IN TWO EQUAL ANNUAL INSTALLMENTS
BEGINNING ON THE DATE ON WHICH THE INCREASED DEVELOPMENT FEE IS ADOPTED.
(b) AN INCREASE OF MORE THAN TWENTY-FIVE PERCENT BUT LESS THAN
FIFTY PERCENT OF THE CURRENT DEVELOPMENT FEE SHALL BE IMPLEMENTED IN FOUR
EQUAL ANNUAL INSTALLMENTS BEGINNING ON THE DATE ON WHICH THE INCREASED
DEVELOPMENT FEE IS ADOPTED.
(c) AN INCREASE IN A DEVELOPMENT FEE MAY NOT EXCEED FIFTY PERCENT
OF THE CURRENT DEVELOPMENT FEE.
(d) A DEVELOPMENT FEE MAY NOT BE INCREASED MORE THAN ONCE EVERY
FOUR YEARS AND MAY NOT BE INCREASED RETROACTIVELY IN A CURRENT FISCAL OR
CALENDAR YEAR OR TO A PREVIOUS FISCAL OR CALENDAR YEAR.
16. A MUNICIPALITY MAY INCREASE A DEVELOPMENT FEE RATE BEYOND THE
LIMITS OF PARAGRAPH 15 OF THIS SUBSECTION IF ALL OF THE FOLLOWING APPLY:
(a) AN ORDINANCE TO INCREASE THE DEVELOPMENT FEE IS APPROVED BY A
UNANIMOUS VOTE OF THE GOVERNING BODY OF THE MUNICIPALITY.
(b) THE MUNICIPALITY PROVIDES A REPORT THAT HAS BEEN COMPLETED IN
THE TWELVE MONTHS BEFORE THE ORDINANCE THAT APPROVES THE INCREASE IN
DEVELOPMENT FEES.
(c) THE REPORT PROVIDED PURSUANT TO SUBDIVISION (b) OF THIS
PARAGRAPH DEMONSTRATES EXTRAORDINARY CIRCUMSTANCES THAT REQUIRE AN
INCREASE IN DEVELOPMENT FEES OF MORE THAN THE AMOUNTS PRESCRIBED IN
PARAGRAPH 15 OF THIS SUBSECTION.
C. A municipality shall give at least thirty days' advance notice
of intention to assess a development fee and shall release to the public
and post on its website or the website of an association of cities and
towns if a municipality does not have a website a written report of the
land use assumptions and infrastructure improvements plan adopted pursuant
to subsection D of this section. The municipality shall conduct a public
hearing on the proposed development fee at any time after the expiration
of the thirty day notice of intention to assess a development fee and at
least thirty days before the scheduled date of adoption of the fee by the
governing body. Within sixty days after the date of the public hearing on
the proposed development fee, a municipality shall approve or disapprove
the imposition of the development fee. A municipality shall not adopt an
House Amendments to H.B. 2946
ONO OBRWDM FE
ordinance, order or resolution approving a development fee as an emergency
measure. A development fee assessed pursuant to this section shall not be
effective until seventy-five days after its formal adoption by the
governing body of the municipality. Nothing in this subsection shall
affect any development fee adopted before July 24, 1982.
D. Before the adoption or amendment of a development fee, the
governing body of the municipality shall adopt or update the land use
assumptions and infrastructure improvements plan for the designated
service area. The municipality shall conduct a public hearing on the land
use assumptions and infrastructure improvements plan at least thirty days
before the adoption or update of the plan. The municipality shall release
the plan to the public, post the plan on its website or the website of an
association of cities and towns if the municipality does not have a
website, including in the posting its land use assumptions, the time
period of the projections, a description of the necessary public services
included in the infrastructure improvements plan and a map of the service
area to which the land use assumptions apply, make available to the public
the documents used to prepare the assumptions and plan and provide public
notice at least sixty days before the public hearing, subject to the
following:
1. The land use assumptions and infrastructure improvements plan
shall be approved or disapproved within sixty days after the public
hearing on the land use assumptions and infrastructure improvements plan
and at least thirty days before the public hearing on the report required
by subsection C of this section. A municipality shall not adopt an
ordinance, order or resolution approving the land use assumptions or
infrastructure improvements plan as an emergency measure.
2. An infrastructure improvements plan shall be developed by
qualified professionals using generally accepted engineering and planning
practices pursuant to subsection E of this section.
3. A municipality shall update the land use assumptions and
infrastructure improvements plan at least every five years. The initial
five year period begins on the day the infrastructure improvements plan is
adopted. The municipality shall review and evaluate its current land use
assumptions and shall cause an update of the infrastructure improvements
plan to be prepared pursuant to this section.
4. Within sixty days after completion of the updated land use
assumptions and infrastructure improvements plan, the municipality shall
schedule and provide notice of a public hearing to discuss and review the
update and shall determine whether to amend the assumptions and plan.
5. A municipality shall hold a public hearing to discuss the
proposed amendments to the land use assumptions, the infrastructure
improvements plan or the development fee. The land use assumptions and
the infrastructure improvements plan, including the amount of any proposed
changes to the development fee per service unit, shall be made available
to the public on or before the date of the first publication of the notice
of the hearing on the amendments.
House Amendments to H.B. 2946
ONO WDM
6. The notice and hearing procedures prescribed in paragraph 1 of
this subsection apply to a hearing on the amendment of land use
assumptions, an infrastructure improvements plan or a development fee.
Within sixty days after the date of the public hearing on the amendments,
a municipality shall approve or disapprove the amendments to the land use
assumptions, infrastructure improvements plan or development fee. A
municipality shall not adopt an ordinance, order or resolution approving
the amended land use assumptions, infrastructure improvements plan or
development fee as an emergency measure.
7. The advisory committee established under subsection & H of this
section shall file its written comments on any proposed or updated land
use assumptions, infrastructure improvements plan and development fees
before the fifth business day before the date of the public hearing on the
proposed or updated assumptions, plan and fees.
8. If, at the time an update as prescribed in paragraph 3 of this
subsection is required, the municipality determines that no changes to the
land use assumptions, infrastructure improvements plan or development fees
are needed, the municipality may as an alternative to the updating
requirements of this subsection publish notice of its determination on its
website and include the following:
(a) <A statement that the municipality has determined that no change
to the land use assumptions, infrastructure improvements plan or
development fee is necessary.
(b) A description and map of the service area in which an update
has been determined to be unnecessary.
(c) A statement that by a specified date, which shall be at least
sixty days after the date of publication of the first notice, a person may
make a written request to the municipality requesting that the land use
assumptions, infrastructure improvements plan or development fee be
updated.
(d) A statement identifying the person or entity to whom the
written request for an update should be sent.
9. If, by the date specified pursuant to paragraph 8 of this
subsection, a person requests in writing that the land use assumptions,
infrastructure improvements plan or development fee be updated, the
municipality shall cause, accept or reject an update of the assumptions
and plan to be prepared pursuant to this subsection.
10. Notwithstanding the notice and hearing requirements for
adoption of an infrastructure improvements plan, a municipality may amend
an infrastructure improvements plan adopted pursuant to this section
without a public hearing if the amendment addresses only elements of
necessary public services in the existing infrastructure improvements plan
and the changes to the plan will not, individually or cumulatively with
other amendments adopted pursuant to this subsection, increase the level
of service in the service area or cause a development fee increase of
greater than five per-cemt PERCENT when a new or modified development fee
is assessed pursuant to this section. The municipality shall provide
House Amendments to H.B. 2946
OnNOOFP WDM FH
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NFPWNMRFOWOAN A TAHPWNMRFOW AMANDA TA HPWNHEFOW AN DAN APWNHH OCW
notice of any such amendment at least thirty days before adoption, shall
post the amendment on its website or on the website of an association of
cities and towns if the municipality does not have a website and shall
provide notice to the advisory committee established pursuant’ to
subsection & H of this section that the amendment complies with this
subsection.
E. For each necessary public service that is the subject of a
development fee, the infrastructure improvements plan shall include:
1. <A description of the existing necessary public services in the
service area and the costs to upgrade, update, improve, expand, correct or
replace those necessary public services to meet existing needs and usage
and stricter safety, efficiency, environmental or regulatory standards,
which shall be prepared by qualified professionals licensed in this state,
as applicable.
2. An analysis of the total capacity, the level of current usage
and commitments for usage of capacity of the existing necessary public
services, which shall be prepared by qualified professionals licensed in
this state, as applicable.
3. A description of all or the parts of the necessary public
services or facility expansions and their costs necessitated by and
attributable to development in the service area based on the approved land
use assumptions, including a forecast of the costs of infrastructure,
improvements, real property, financing, engineering and architectural
services, which shall be prepared by qualified professionals licensed in
this state, as applicable.
4. A table establishing the specific level or quantity of use,
consumption, generation or discharge of a service unit for each category
of necessary public services or facility expansions and an equivalency or
conversion table establishing the ratio of a service unit to various types
of land uses, including residential, commercial and industrial.
5. The total number of projected service units necessitated by and
attributable to new development in the service area based on the approved
land use assumptions and calculated pursuant to generally accepted
engineering and planning criteria.
6. The projected demand for necessary public services or facility
expansions required by new service units for a period not to exceed ten
years.
7. A forecast of revenues generated by new service units other than
development fees, which shall include estimated state-shared revenue,
highway wsers USER revenue, federal revenue, ad valorem property taxes,
construction contracting or similar excise taxes and the capital recovery
portion of utility fees attributable to development based on the approved
land use assumptions, and a plan to include these contributions in
determining the extent of the burden imposed by the development as
required in subsection B, paragraph 12 of this section.
House Amendments to H.B. 2946
OnNaOFP WDM FE
F. A municipality's development fee ordinance shall provide that a
new development fee or an increased portion of a modified development fee
strat+ not be assessed against a—tevetopment—for—twenty~four—nontts—after
i—dete~therte—t4 eee thre—Fret ++ at
aly aE” ene ae ae ; binethidie ~via thettipatinieetins
+ _ dertiai tev} 4
- ; ndtete nares heehee ; ame
imine 4 ; ths pat that 4 +
number—of—servtce—tmmtts; EITHER:
1. A RESIDENTIAL DEVELOPMENT FOR WHICH THE MUNICIPALITY HAS
APPROVED A FINAL SUBDIVISION PLAT FOR THE DURATION OF THE BUILD-OUT OF THE
SUBDIVISION IF NO SUBSEQUENT CHANGES ARE MADE TO THE APPROVED FINAL
SUBDIVISION PLAT THAT WOULD INCREASE THE NUMBER OF SERVICE UNITS. IF THE
NUMBER OF SERVICE UNITS INCREASES, THE NEW DEVELOPMENT FEE OR INCREASED
PORTION OF THE MODIFIED DEVELOPMENT FEE SHALL BE LIMITED TO THE AMOUNT
THAT IS ATTRIBUTED TO THE ADDITIONAL SERVICE UNITS.
2. A COMMERCIAL, INDUSTRIAL OR MULTIFAMILY DEVELOPMENT FOR
TWENTY-FOUR MONTHS AFTER THE EFFECTIVE DATE OF THE DEVELOPMENT FEE
ORDINANCE THAT IMPOSES A NEW OR INCREASED DEVELOPMENT FEE IF NO SUBSEQUENT
CHANGES ARE MADE TO THE APPROVED SITE PLAN THAT INCREASES THE NUMBER OF
SERVICE UNITS. If the number of service units increases, the new or
increased portion of a modified development fee shall be limited to the
amount attributable to the additional service units. *te—twenty~forr
+H era — bctiala ; ae are 4
; + ena iets eho" 4 rect —of—t oa
approvat~
G. The municipality shall issue, on request, a written statement of
the development fee schedule applicable to the development. If, after the
date of the municipality's final approval of a development, the
municipality reduces the development fee assessed on development, the
reduced fee shall apply to the development.
G> H. A municipality shall do one of the following:
1. Before the adoption of proposed or updated land use assumptions,
infrastructure improvements plan and development fees as prescribed in
subsection D of this section, the municipality shall appoint = an
infrastructure improvements advisory committee, subject to the following
requirements:
(a) The advisory committee shall be composed of at least five
members who are appointed by the governing body of the municipality. At
least fifty per-cent PERCENT of the members of the advisory committee must
be representatives of the real estate, development or building industries,
of which at least one member of the committee must be from the home
building industry. Members shall not be employees or officials of the
municipality.
House Amendments to H.B. 2946
CONDO LP WM Fe
(b) The advisory committee shall serve in an advisory capacity and
shall:
(i) Advise the municipality in adopting land use assumptions and in
determining whether the assumptions are in conformance with the general
plan of the municipality.
(ii) Review the infrastructure improvements plan and file written
comments.
(iii) Monitor and evaluate implementation of the infrastructure
improvements plan.
(iv) Every year file reports with respect to the progress of the
infrastructure improvements plan and the collection and expenditures of
development fees and report to the municipality any perceived inequities
in implementing the plan or imposing the development fee.
(v) Advise the municipality of the need to update or revise the
land use assumptions, infrastructure improvements plan and development
fee.
(c) The municipality shall make available to the advisory committee
any professional reports with respect to developing and implementing the
infrastructure improvements plan.
(d) The municipality shall adopt procedural rules for the advisory
committee to follow in carrying out the committee's duties.
2. In lieu of creating an advisory committee pursuant to paragraph
1 of this subsection, provide for a biennial certified audit of the
municipality's land use assumptions, infrastructure improvements plan and
development fees. An audit pursuant to this paragraph shall be conducted
by one or more qualified professionals who are not employees or officials
of the municipality and who did not’ prepare the’ infrastructure
improvements plan. The audit shall review the progress of the
infrastructure improvements plan, including the collection and
expenditures of development fees for each project in the plan, and
evaluate any inequities in implementing the plan or imposing the
development fee. The municipality shall post the findings of the audit on
the municipality's website or the website of an association of cities and
towns if the municipality does not have a website and shall conduct a
public hearing on the audit within sixty days of the release of the audit
to the public.
H> I. On written request, an owner of real property for which a
development fee has been paid after July 31, 2014 is entitled to a refund
of a development fee or any part of a development fee if:
1. Pursuant to subsection B, paragraph 6 of this section, existing
facilities are available and service is not provided.
2. The municipality has, after collecting the fee to construct a
facility when service is not available, failed to complete construction
within the time period identified in the infrastructure improvements plan,
but in no event later than the time period specified in paragraph 3 of
this subsection.
-10-
House Amendments to H.B. 2946
OND BPW DM FE
3. For a development fee other than a development fee for water or
wastewater facilities, any part of the development fee is not spent as
authorized by this section within ten years after the fee has been paid
or, for a development fee for water or wastewater facilities, any part of
the development fee is not spent as authorized by this section within
fifteen years after the fee has been paid.
tT, J. If the development fee was collected for the construction of
all or a portion of a specific item of infrastructure, and on completion
of the infrastructure the municipality determines that the actual cost of
construction was less than the forecasted cost of construction on which
the development fee was based anmd—the—tfferencetbetween—tthe—actuat—and
estimated -cost—ts—greater—than—tenper—cent, the current owner may receive
a refund of the portion of the development fee equal to the difference
between the development fee paid and the development fee that would have
been due if the development fee had been calculated at the actual
construction cost.
dv kK. A refund shall include any interest earned by’ the
municipality from the date of collection to the date of refund on the
amount of the refunded fee. All refunds shall be made to the record owner
of the property at the time the refund is paid. If the development fee is
paid by a governmental entity, the refund shall be paid to the
governmental entity.
Kr L. A development fee that was adopted before January 1, 2012
may continue to be assessed only to the extent that it will be used to
provide a necessary public service for which development fees can be
assessed pursuant to this section and shall be replaced by a development
fee imposed under this section on or _ before August 1, 2014. Any
municipality having a development fee that has not been replaced under
this section on or before August 1, 2014 shall not collect development
fees until the development fee has been replaced with a fee that complies
with this section. Any development fee monies collected before January 1,
2012 remaining in a development fee account:
1. Shall be used towards the same category of necessary public
services as authorized by this section.
2. If development fees were collected for a purpose not authorized
by this section, shall be used for the purpose for which they were
collected on or before January 1, 2020, and after which, if not spent,
shall be distributed equally among the categories of necessary public
services authorized by this section.
ty M. A moratorium shall not be placed on development for the sole
purpose of awaiting completion of all or any part of the process necessary
to develop, adopt or update development fees.
M> N. In any judicial action interpreting this section, all powers
conferred on municipal governments in this section shall be narrowly
construed to ensure that development fees are not used to impose on new
residents a burden all taxpayers of a municipality should bear equally.
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Nv 0. Each municipality that assesses development fees shall
submit an annual report accounting for the collection and use of the fees
for each service area. The annual report shall include the following:
1. The amount assessed by the municipality for each type of
development fee.
2. The balance of each fund maintained for each type of development
fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the monies in each
fund as of the end of the fiscal year.
4. The amount of development fee monies used to repay:
(a) Bonds issued by the municipality to pay the cost of a capital
improvement project that is the subject of a development fee assessment,
including the amount needed to repay the debt service obligations on each
facility for which development fees have been identified as the source of
funding and the time frames in which the debt service will be repaid.
(b) Monies advanced by the municipality from funds other than the
funds established for development fees in order to pay the cost of a
capital improvement project that is the subject of a development fee
assessment, the total amount advanced by the municipality for each
facility, the source of the monies advanced and the terms under which the
monies will be repaid to the municipality.
5. The amount of development fee monies spent on each capital
improvement project that is the subject of a development fee assessment
and the physical location of each capital improvement project.
6. The amount of development fee monies spent for each purpose
other than a capital improvement project that is the subject of a
development fee assessment.
6> P. Within ninety days following the end of each fiscal year,
each municipality shall submit a copy of the annual report to the city
clerk and post the report on the municipality's website or the website of
an association of cities and towns if the municipality does not have a
website. Copies shall be made available to the public on request. The
annual report may contain financial information that has not been audited.
P> Q. A municipality that fails to file the report and post the
report on the municipality's website or the website of an association of
cities and towns if the municipality does not have a website as required
by this section shall not collect development fees until the report is
filed and posted.
Q@- R. Any action to collect a development fee shall be commenced
within two years after the obligation to pay the fee accrues.
Ry S.A municipality may continue to assess a development fee
adopted before January 1, 2012 for any facility that was financed before
June 1, 2011 if:
1. Development fees were pledged to repay debt service obligations
related to the construction of the facility.
2. After August 1, 2014, any development fees collected under this
subsection are used solely for the payment of principal and interest on
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the portion of the bonds, notes or other debt service obligations issued
before June 1, 2011 to finance construction of the facility.
Sy T. Through August 1, 2014, a development fee adopted before
January 1, 2012 may be used to finance construction of a facility and may
be pledged to repay debt service obligations if:
1. The facility that is being financed is a facility that is
described under subsection * V, paragraph 7, subdivisions (a) through tgy
(e) of this section.
2. The facility was included in an infrastructure improvements plan
adopted before June 1, 2011.
3. The development fees are used for the payment of principal and
interest on the portion of the bonds, notes or other debt service
obligations issued to finance construction of the necessary public
services or facility expansions identified in the’ infrastructure
Tmprovement IMPROVEMENTS plan.
U. NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY MAY NOT ASSESS A
DEVELOPMENT FEE ON THE DEVELOPMENT OF AN ACCESSORY DWELLING UNIT. FOR THE
PURPOSES OF THIS SUBSECTION, “ACCESSORY DWELLING UNIT" HAS THE SAME
MEANING PRESCRIBED IN SECTION 9-461.18.
+> V. For the purposes of this section:
1. "Dedication" means the actual conveyance date or the date an
improvement, facility or real or personal property is placed into service,
whichever occurs first.
2. "Development" means:
(a) The subdivision of land.
(b) The construction, reconstruction, conversion, structural
alteration, relocation or enlargement of any structure that adds or
increases the number of service units.
(c) Any use or extension of the use of land that increases the
number of service units.
3. "Facility expansion" means the expansion of the capacity of an
existing facility that serves the same function as an otherwise new
necessary public service in order that the existing facility may serve new
development. Facility expansion does not include the repair, maintenance,
modernization or expansion of an existing facility to better serve
existing development.
4. "Final approval" means:
(a) For a nonresidential or multifamily development, the approval
of a site plan or, if no site plan is submitted for the development, the
approval of a final subdivision plat.
(b) For a single family residential development, the approval of a
final subdivision plat.
5. “Infrastructure improvements plan" means a written plan that
identifies each necessary public service or facility expansion that is
proposed to be the subject of a development fee and otherwise complies
with the requirements of this section, and may be the municipality's
capital improvements plan.
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6. "Land use assumptions" means projections of changes in land
uses, densities, intensities and population for a specified service area
over a period of at least ten years and pursuant to the general plan of
the municipality.
7. “Necessary public service" means any of the following facilities
that have a life expectancy of three or more years and that are owned and
operated by or on behalf of the municipality:
(a) Water facilities, including the supply, transportation,
treatment, purification and distribution of water, and any appurtenances
for those facilities.
(b) Wastewater facilities, including collection, interception,
transportation, treatment and _ disposal of wastewater, and = any
appurtenances for those facilities.
(c) Stormwater STORMWATER, drainage and flood control facilities,
including any appurtenances for those facilities.
[(d) Library facilities of up to ten thousand square feet that
provide a direct benefit to development, not including equipment, vehicles
or appurtenances. ]
[(e)] [¢ty] Street facilities located in the service area,
including arterial or collector streets or roads that have been designated
on an officially adopted plan of the municipality, traffic signals and
rights-of-way and improvements thereon.
[(f)] [ter] Fire and police facilities, including all
appurtenances, equipment and vehicles. Fire and police facilities do not
include a facility or portion of a facility that is used to replace
services that were once provided elsewhere in the municipality, vehicles
and equipment used to provide administrative services, helicopters or
airplanes or a facility that is used for training firefighters or officers
from more than one station or substation.
[(g) Neighborhood parks and recreational facilities on real
property up to thirty acres in area, or parks and recreational facilities
larger than thirty acres if the facilities provide a direct benefit to the
development. Park and recreational facilities do not include vehicle
equipment or that portion of any facility that is used for amusement
parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural
facilities, bandstand and orchestra facilities, bathhouses, boathouses,
clubhouses, community centers greater than three thousand square feet in
floor area, environmental education centers, equestrian facilities, golf
course facilities, greenhouses, lakes, museums, theme parks, water
reclamation or riparian areas, wetlands, zoo facilities or similar
recreational facilities, but may include swimming pools. ]
[(h)] [tf] Any facility that was financed and that meets all of
the requirements prescribed in subsection R~ S of this section.
8. "Qualified professional" means a_ professional engineer,
surveyor, financial analyst or planner providing services within the scope
of the person's license, education or experience.
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9. "Service area":
(a) Means any specified area within the boundaries of a
municipality in which development will be served by necessary public
services or facility expansions and within which a substantial nexus
exists between the necessary public services or facility expansions and
the development being served as_ prescribed in the’ infrastructure
improvements plan.
(b) INCLUDES THE SERVICE TERRITORY OF WATER OR’ WASTEWATER
FACILITIES, WHETHER INSIDE OR OUTSIDE OF THE BOUNDARIES OF THE
MUNICIPALITY, IF THE MUNICIPALITY PROVIDES WATER AND WASTEWATER SERVICES.
10. “Service unit" means a standardized measure of consumption,
use, generation or discharge attributable to an individual unit of
development calculated pursuant to generally accepted engineering or
planning standards for a particular category of necessary public services
or facility expansions.
Sec. 2. Section 9-511.01, Arizona Revised Statutes, is amended to
read:
9-511.01. Water and wastewater business; rates; procedures;
responsibility for payments
A. A municipality engaging in a domestic water or wastewater
business shall not increase any water or wastewater rate or rate
component, fee or service charge without complying with the following:
1. Prepare a written report or supply data supporting the increased
rate or rate component, fee or service charge. The report or supporting
data shall include cash flow projections that indicate all anticipated
revenues from residential and nonresidential customers and the overall
expenses for providing water or wastewater service. A copy of the report
and cash flow projections shall be made available to the public by filing
a copy in the office of the clerk of the municipality governing board and
posting the report and cash flow projections on the municipality's website
or the website of an association of cities and towns if the municipality
does not have a website at least thirty days before the public hearing
described in paragraph 2 of this subsection.
2. Adopt a notice of intention by motion at a regular council
meeting to increase water or wastewater rates or rate components, fees or
service charges and set a date for a public hearing on the proposed
increase that shall be held at least sixty days after adoption of the
notice of intention. A copy of the notice of intention showing the date,
time and place of the hearing shall be published one time in a newspaper
of general circulation within the boundaries of the municipality not less
than twenty days before the public hearing date.
3. ANY WATER OR WASTEWATER RATE, RATE COMPONENT, FEE OR SERVICE
CHARGE ASSESSED TO FUND NEW INFRASTRUCTURE OR CAPITAL IMPROVEMENTS SHALL
COMPLY WITH THE REQUIREMENTS PRESCRIBED IN SECTION 9-463.05.
B. After holding the public hearing, the governing body may adopt,
by ordinance or resolution, the proposed rate or rate component, fee or
service charge increase or any lesser increase.
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C. Notwithstanding section 19-142, subsection B, the increased rate
or rate component, fee or service charge shall become effective thirty
days after adoption of the ordinance or resolution.
D. Any proposed water or wastewater rate or rate component, fee or
service charge adjustment or increase shall be just and reasonable.
E. Rates and charges demanded or received by municipalities for
water and wastewater service shall be just and reasonable. Every unjust
or unreasonable rate or charge demanded or received by a municipality is
prohibited and unlawful.
F. A municipality may not assess or collect a fee on new water or
wastewater service connections at the time of the establishment of service
to those connections for the purpose of recovering the municipality's
costs of acquiring, whether by purchase or by eminent domain, the utility
plant, facilities, system or other property of a public” service
corporation or another municipality engaged in the business of providing
water or wastewater service. This subsection does not apply to water or
wastewater fees adopted before January 1, 2016 or to water or wastewater
fees included in a notice of intent to adopt or increase water or
wastewater rates and fees adopted before January 1, 2016.
G. For residential property of four or fewer units, a municipality
shall not require payment of unpaid water and wastewater service rates and
charges by anyone other than the person who the municipality has
contracted with to provide the service, who physically resides or resided
at the property and who receives or received the service. A property
owner, an immediate family member of the person who does not reside at the
property or any other entity, at its sole discretion, may contract for
water and wastewater service with a municipality and shall provide
payment.
H. For residential property of four or fewer units, a municipality
shall not refuse service within the municipality's service area for the
unpaid water and wastewater rates and charges to anyone other than the
person who physically resided and received the service at the property. A
property owner, at the owner's sole discretion, may contract for water and
wastewater service with a municipality and shall provide payment for that
service.
<<Secw— 3 Secttor tt 1102—_arizona-kevised Statutes,_ts—amended—_to
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House Amendments to H.B. 2946
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Cc
TERESA MARTINEZ
2946MART INEZ. docx
02/18/2026
09:04 AM
C: LAT
130VHGNUR
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature - Second Regular Session
ROLL CALL VOTE
COMMITTEE ON Rural Economic Development BILL NO. HB 2946
DATE February 19, 2026 MOTION: DY K
PASS NAY PRESENT | ABSENT
>
rm
N
Blackman
Bliss
WA
Hernandez C
Peshlakai
Volk
2.
VA
Lopez, Vice-Chairman
Martinez, Chairman
[le | @
ToNENONGIN
Wy = COMMITTEE SECRETARY
ERESA MARTINEZ, Chairman
CHRIS LOPEZ, Vice-Chairman
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