A Review of Bills at the Az House of Representatives as of February 15, 2023

Arizona State Capitol - Mario Recchia

Each legislative session I try to review bills that may impact the real estate business, your clients and communities. Today is a review of bills at the House of Representatives I think you may find interesting. Remember, you can always provide your input to your state legislator or the author of the bill. You can find contact information for Arizona State Legislators at azleg.gov.

HB 2561: City Water Provider; requirements; service
Provides a municipality to provide water through a stand pipe until 2026 to communities of up to 750 households if they lack sufficient water and other hauled water sources are more than 10 miles away. The water recipients must reimburse the municipality for the cost of providing and delivering water. Rio Verde Foothills community.

HCM 2002: federal lands; housing shortage
Requests Congress enact changes introduced in SB 4062 in the 2022 legislative session amending the 1976 Federal Land Policy & Management Act to allow the Secretary of the Interior to sell federal lands to state and local governments for residential development.

HCM 2006: urging eradication; salt cedars; waterways
Salt cedar trees are not native to Arizona and can consume up to 200 gallons of water a day. This bill requests Congress to appropriate monies to be used to eradicate Salt Cedars.

HCR 2012 (Strike Everything): Natural Resources, Energy & Water
Strike Everything changes: reiterates history of Arizona water management for agriculture and people. Highlights current water issues including: renegotiation of the 2007 Interim Guidelines for Lower Basin Shortages, expiration of extinguishment credits in Pinal AMA, development of desalination plan, development of 4th & 5th management plan under the Groundwater Management Act for AMAs, Water Infrastructure Finance Authority to administer $1.4 billion for water supply development and conservation, establish on-farm irrigation efficiency pilot program, and establish potable water reuse of treated wastewater.

HB 2012: real estate appraisers; licensure classifications
Will permit state licensed appraisers to conduct appraisal of 1-4 unit complex from $250,000 to $400,000.

HB 2026: appropriation; on-farm efficiency fund
Appropriates $30,000,000 from the state General Fund to the On-Farm Irrigation Efficiency Fund. Administered by U of A Agricultural Extension to provide grans to farmers to buy and install approved water efficient irrigation systems. Grants cannot exceed $1,000,000 or $1,500/acre of irrigable land.

HB 2048: assured water; small residential developments
Provides a building permit for 6 or more residences within an AMA in an unincorporated area of the County shall apply for and obtain a Certificate of Assured Water Supply before submitting a permit application. If applicant has a written commitment of water service from a city, town or private water company who already has an assured water supply.

HB 2079: State Route 90 Extension
Requires ADOT to extend SR-90 from I-10 to Aviation Dr and appropriates $40,000,000 for the extension.

HB 2083: landlord; tenant; fee disclosure; waiver
Provides at or before commencement of tenancy, landlord will disclose to tenant amount of rent and due date of rent. Fees or charges not part of the rent (trash valet, smart devices, etc.), fees to submit payments online, taxes. This information must be included in advertisements.

Landlord must also disclose if personal data is collected by landlord or vendors. Provides that tenants may choose not to receive or pay for nonessential services.

Provides a tenant may pay rent and fees and costs with any legal tender including cash, personal and cashier’s checks, debit or credit cards as well as bank online bill pay services. Landlords may not charge a fee to accept payment through an online system provided by the landlord. Declares rent unpaid when due cannot be charged a late fee if the rent is paid in full withing 5 days.

Declares a landlord accepting partial rent payment or other charges may not proceed against the tenant for failure to pay rent and waives the right to ruminate the rental agreement for failure to pay rent. The landlord would be required to wait to take action against the tenant only if the tenant fails to pay the next scheduled rent payment and only after the landlord provides the tenant with a failure to pay rent notice.

HB 2085: rental housing; income source discrimination
Provides a landlord may not use source of income as reason to refuse to a tenant, evict or terminate a rental agreement. There is no provision to ensure the landlord is paid rental funds on time by the program or tenant.

HB 2065: home insurers; discrimination; prohibition
Excludes age as a factor in calculating an insurance score.

HB 2067: residential leases; municipal tax exemption
Prohibits local governments from charging a local tax (TPT) on the business of renting or leasing residential rentals.

HB 2107: appropriation; SR 303; Route 60
Appropriates $3,000,000 for ADOT improvement to the interchange of SR 303 and U.S. 60.

HB 2135: TPT; additional rate; online lodging
Establishes a mandatory TPT rate of 16.5% on short term residential rental properties. Local government TPT rates would still apply.

HB 2136: homeless; restrooms; water; statewide preemption
Provides local governments must provide 24 hour daily access to public restrooms and potable water for use by homeless individuals.

HB 2145: dude ranches; historical markers
Requires Az Historical Society to use fund monies to issue historical markers to dude ranches in the Az Dude Ranch Heritage Trail Program.

HB 2161: rent increase; limitation; substantial remodel
Prohibits a landlord from increasing the rent of a dwelling unit unless the unit has been substantially remodeled according to a formula. Landlords would not be able to increase rent by more than 5% plus the lesser value between the % change in cost of living or 10%. Increase in the percentage is determined by the lowest rent charge for the unit during the past 12 months.

HB 2213: TPT; exemption; utilities; residential customers
Bill would exempt natural gas and electricity residential customers from TPT.

HB 2241: electric vehicles; charging; pilot program
Precludes a local government from issuing a building permit for a single family structure if the structure does not have a 208/240 volt, 50 Amp, NEMA 14-50 branch circuit with dedicated outlet to charge an electric vehicle.

HB 2256: housing trust fund; appropriation
Allocates $150,000,000 for the housing trust fund 2023-2024.

HB 2259: parking requirements; affordable housing; prohibition
Does not allow local governments to adopt a specific number of parking spaces per residential dwelling unit designated as affordable housing.

HB 2284: homelessness; housing; facilities
Requires ADOH (Az Dept. of Housing) to accept legislatively provided funds allocated for services to homeless individuals. Monies will be used for: parking area that have access to potable water, electric outlets and bathrooms, camping facilities that are limited to homeless individuals and their personal property, shelters, shelters that service at least 4 individuals. Several other provisions.

HB 2285: appropriation; Jackrabbit Trail improvement S/E Interstate 10; Jackrabbit Trail
Appropriates $5,000,000 in FY 2023, $30,000,000 in FY 2024 and $35,000,000 in FY 2025 for a freeway interchange at I-10 and Jackrabbit Trail.

HB 2289: appropriation; State Route 24
Appropriates $18,000,000 in FY 2024 for ADOT to work with Pinal County on an engineering and design for the extension of SR-24.

HB 2301: homeowner’s associations; political activity
Prevents HOAs from restricting door to door political activity in opposition or support of a candidate or ballot proposition by HOA members.

HB 2328: Arizona community land trust fund
Establishes the Arizona State Community Land Trust Acquisition Grant Fund. Fund monies will be distributed to Community Land Trusts (501c3s exempt from taxation). The Land Trust will own and provide dwelling units that may be sold to unit owners on a 99 year land lease.

HB 2376: agricultural land; foreign ownership; prohibition
Prohibits selling, leasing or subleasing agricultural land to a foreign entity.

HR 2379: hotel; motel; vouchers; homeless; prohibition
Prohibits counties, cities or towns from requiring a hotel or motel to participate in a voucher housing program.

HB 2381: mobile homes; recreation vehicles; fund
Increases the amount of monies a property owner and the Mobile Home Relocation Fund must provide a tenant who must move due to change in land use or redevelopment of a mobile home park.

HB 2404: franchises; regulation
Provides requirements for franchises and details process to renew or terminate franchise business.

HB 2411: water supply; elimination; reduction; damages
Requires a city that provided water to an area outside the city’s service area and reduced or terminated the service must make the same reduction to the Mayor and City Council members.

HB 2440: electric energy; power companies; priorities
Requires public power entities to prioritize grid reliability and affordable energy pricing.

HB 2441: state tree; residential planning
Prohibits local governments from adopting land use or other ordinances that would regulate or prohibit the Palo Verde tree in a residential housing development.

HB 2442: temporary non-expansion area
Creates a process for designating a temporary non-expansion area outside of an AMA or INA via petition. At least half the irrigation users and at least 10% of the registered voters must sign the petition.

HB 2445: groundwater permits; technical correction; S/E: subdivisions; leased properties; exemption
Repeals the exemption for leased offering of one year or less from the definition of subdivided land. Clarifies these lands include 6 or more detached single residential homes on land that has been subdivided into six or more lots, parcels or fractional interests.

HB 2448: appropriation; groundwater; Santa Rosa canal
Appropriates $25,000,000 be distributed equally between the Maricopa-Stanfield Irrigation District and the Central Arizona irrigation district so that infrastructure may be built to deliver groundwater. This is a result of a settlement agreement between the irrigation districts and the Ak-Chin Indian Community.

HB 2449: appropriation; Pinal East-West Corridor
Appropriates $9,700,000 to Pinal County for engineering and design of the West Pinal Parkway East-West Corridor.

HB 2483: backyard fowl; regulation; prohibition
Prohibits a local government form adopting a zoning ordinance that bans single family detached residences on ½ acre or less from keeping fowl in their backyard. Allows the local government to establish requirements of keeping fowl.

HB 2534: mortgaged property; tax statements; email
Allows the mortgagor to choose to receive their property tax statement by email.

HB 2535: private property; wells; regulation; prohibition
Prohibits a well in an unincorporated area and structures supplied by that well from being subject to municipal regulation if the municipality annexes the area.

HB 2547: zoning ordinances; property rights; costs
Requires the legislative body of a local government to adopt an individual property rights cost of housing impact statement before adopting any zoning ordinance or zoning ordinance text amendment. Repeals statues to consider property rights & personal liberties. Repeals statues that require consideration of impact of proposed ordinance on cost to construct for sale or rent property.

HB 2555: businesses; requirement to accept cash
Requires businesses located in Arizona accept cash for payment of goods or services. The business may not charge a fee for using cash.

HB 2561: city water provider; requirements; service
Directs a local government to provide water service through a stand pipe until 2026 to up to 750 households that lack adequate water. The local government will be reimbursed.

HB 2569: appropriation; Happy Valley Rd
Appropriates $12,000,000 to Phoenix for roadway improvements to Happy Valley Rd from 35th Ave to 67th Ave.

HB 2590: Natural Resources; Energy & Water
(Strike Everything) Sellers of 5 or fewer parcels of land in unincorporated areas of a county must complete and furnish a written disclosure (Affidavit of Disclosure) that includes if the property is served by a water supply that requires hauled water, the name of the water hauler and the location of the water supply.

There is an addition to the Affidavit of Disclosure that solar energy devices may contain hazardous materials. Also added is a disclosure question asking about one or more battery storage devices and their status as leased or owned. The seller must provide information on the proper replacement and disposal for the devices and stresses the responsibility of the buyer to confirm the information. If the battery storage device is leased, the seller must provide the leasing company name and phone number.

HB 2607: meetings; homeowners associations
Makes unit owners, members or their designated representatives eligible to provide notice of a special meeting removing a member from the association board of directors.

HB 2616: subdivisions; leased properties
Repeals the exemption of leasehold properties offered for one year or less from the definition of subdivide lands.

HB 2618: decommissioning; solar and wind; standards
Requires county approval for permits to install solar or wind power plants, repairing damage decommissioning or selling the plant. Requires the applicant for plant removal to restore the site at its own expense. The decommissioning plan must provide how the facility will be decommissioned including an engineer’s cost and the financial assurance needed to fund the decommissioning.

HB 2634: housing trust fund; donations; form
Provides a form title insurers may provide real estate buyers and sellers that allows them to donate to the trust fund.

HB 2675: drug cartels; terrorist organizations
Declares that drug cartels are terrorist organizations and requires Az Dept. of Homeland Security to everything with its authority to address the threat.

HB 2752: appropriation: State Route 85
Appropriates $6,500,000 ADOT for design and engineering of SR-85 between mile post 123 and Maricopa Rd.

HB 2780: condominiums; termination; agreement
Modifies rules for terminating a condominium. Must be terminated by written consent of at least 80% of the votes of unit owners if a declaration is not available. Otherwise, must follow termination rules as outlined in the declarations. Several other modifications.