SB 1543
Initials LM Page 1 International Trade
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FIN DP 7-0-0-0 | 3rd Read 28-0-2-0
SB1543: homestead exemption; equity increase
S/E: ancillary use; international headquarters campus
Sponsor: Senator Carroll, LD 28
Committee on International Trade
Summary of the Strike-Everything Amendment to SB1543
Overview
Prescribes specified requirements for municipal ancillary use and multifamily residential
housing. Directs a municipality of 200,000 or more but less than 500,000 persons to allow
hotel use and multifamily residential housing as an allowed ancillary use in a zoning district
that permits light industrial use without requiring any type of application needing a public
hearing if the ancillary use is located within an international headquarters campus.
History
The planning agency may, or if directed by the legislative body must, prepare specific plans
based on the general plan and drafts of such regulations, programs and legislation as may in
the judgment of the agency be required for the systematic execution of the general plan.
Specific plans may, in addition to recommended zoning ordinances and subdivision
regulations, include regulations determining the location of buildings and other
improvements with respect to existing rights-of-way, floodplains and public facilities and
regulations of the use of land, buildings and structures, the height and bulk of buildings and
structures and the open spaces around buildings and structures, among others (A.R.S § 9-
461.08).
The objective standards required by a municipality for a multifamily residential development
are required to include 1) a municipal site plan review and approval process, including review
by any utility provider impacted by the proposed development, 2) adequate public sewer and
water service for the entire proposed development, 3) compliance with all applicable building
and fire codes, 4) that the existing buildings are economically or functionally obsolete, 5) that
existing buildings are located on a parcel or parcels that are at least one acre in size but not
more than 20 acres in size and 6) a set-aside of 10%of the total dwelling units for either
moderate or low-income housing or any combination of the two or at least 20 years after the
initial occupation of the proposed development. The developer may set aside more than 10%
at the developer's sole discretion (A.R.S. § 9-462.10).
Provisions
1. Requires a municipality with a population of 200,000 or more persons but less than
500,000 persons to allow hotel use and multifamily residential housing as an allowed
ancillary use in a zoning district that allows light industrial use without requiring any
type of application requiring a public hearing if the ancillary use meets both criteria:
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1543
Initials LM Page 2 International Trade
a) the ancillary use is located within an international headquarters campus (campus)
solely owned by either a single entity or related entities at the time that development
of the campus commences and, on completion, the international headquarters on the
campus will employ more than 2,000 full-time employees at an average annual
compensation over 125% of the median wage of the county where the campus is
located; and
b) the campus containing the ancillary use is bound by a recorded instrument
enforceable by the municipality and:
i. restricts occupancy in at least 20% of the multifamily residential housing units on
campus to employees and families of employees of the international headquarters.
The recorded instrument must also provide that the municipality where the
campus is located, in the municipality's sole and absolute discretion, may waive
the occupancy requirement;
ii. prohibits an agreement for occupancy of any multifamily residential housing unit
within the campus for a period of less than 90 consecutive days and limits
occupancy to the same occupants for the entirety of the 90 days unless a tenant is
an employee or contractor of an entity located within the campus that performs
job duties at the international headquarters. Excludes multifamily housing
developments platted for individual ownership of units from this prohibition. (Sec.
1)
2. Subjects an ancillary use to compliance with all applicable municipal building codes and
fire codes and the objective development standards. (Sec. 1)
3. Restricts the governing body of the municipality from withholding a building permit or a
certificate of occupancy for an ancillary use that complies with one of the prescribed
requirements. (Sec. 1)
4. Directs a municipality to allow complementary retail and restaurant use within the
campus for campuses that include hotel use or multifamily residential housing units as
an ancillary use. (Sec. 1)
5. Applies objective standards to an ancillary use building developed as prescribed. (Sec. 1)
6. Mandates that a building permit for a developed ancillary use building may not be
obtained until the municipality issues a building permit for construction of the
international headquarters building. (Sec. 1)
7. Asserts that a certificate of occupancy may not be granted for a developed ancillary use
building before the municipality grants a certificate of occupancy for the international
headquarters building. (Sec. 1)
8. Grants a certificate of occupancy for a developed ancillary use building before the
municipality grants a certificate of occupancy for the international headquarters building
if the Arizona State Land Department has received a sufficient financial assurance as
prescribed, if the municipality does not grant a permanent certificate for the building
within five years after granting the certificate for ancillary use building. (Sec. 1)
9. Requires a municipality to consent to amendments to existing development agreements
to which the municipality is a signatory that are reasonably necessary to allow for the
development of hotel use or multifamily residential use as an ancillary use. (Sec. 1) SB 1543
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10. Exempts land in the vicinity of a military airport or ancillary military facility, from
regulation on municipal allowed ancillary use. (Sec. 1)
11. Contains legislative findings. (Sec. 2)
12. Defines pertinent terms. (Sec. 1)