House Engrossed Senate Bill homestead exemption; equity increase (now: ancillary use; international headquarters campus) State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1543 An Act amending title 9, chapter 4, article 6, Arizona Revised Statutes, by adding section 9-461.19; relating to municipal planning. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed Senate Bill homestead exemption; equity increase (now: ancillary use; international headquarters campus)
State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
SENATE BILL 1543
House Engrossed Senate Bill
homestead exemption; equity increase
(now: ancillary use; international headquarters campus)
State of Arizona
Senate
Fifty-seventh Legislature
First Regular Session
2025
SENATE BILL 1543
An Act
amending title 9, chapter 4, article 6, Arizona Revised Statutes, by adding section 9-461.19; relating to municipal planning.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 9-461.19, to read: START_STATUTE9-461.19. Municipal allowed ancillary use; multifamily residential housing; hotel use; regulations; applicability; definitions A. Notwithstanding any other law, a municipality with a population of two hundred thousand or more persons but not more than five hundred thousand persons shall allow hotel use and multifamily residential housing as an allowed ancillary use on land that is vacant as of the date of the building permit application for the allowed ancillary use in a zoning district that allows light industrial use without requiring any type of application that WILL require a public hearing if the ancillary use meets both of the following criteria: 1. The ancillary use is located within aN INTERNATIONAL headquarters campus that is solely owned by either a single entity or related entities at the time that development of the INTERNATIONAL headquarters campus commences and, on completion, the INTERNATIONAL headquarters on the INTERNATIONAL headquarters campus will employ more than one thousand full-time employees at an average annual compensation of more than one hundred twenty-five percent of the Median Wage of the county where the INTERNATIONAL headquarters campus is located. 2. The INTERNATIONAL headquarters campus that contains the ancillary use is bound by a recorded instrument that is enforceable by the municipality and that does both of the following: (a) Restricts occupancy in at least thirty percent of the multifamily residential housing units located on the INTERNATIONAL headquarters campus, which may include units designated pursuant to subsection I of this section at the discretion of the developer, to individuals who are employed at the INTERNATIONAL headquarters, or who are police officers, firefighters, teachers, veterans or health care workers and who work within five miles OF the international headquarters campus or who are the families of individuals employed at the INTERNATIONAL headquarters. the recorded instrument must also provide that the municipality where the INTERNATIONAL headquarters campus is located, in the municipality's sole and absolute discretion, may waive the occupancy requirement. (b) Prohibits an agreement for occupancy of any multifamily residential housing unit within the INTERNATIONAL headquarters campus for a period of less than ninety consecutive days and limits occupancy to the same occupants for the entirety of the ninety consecutive days unless a tenant of the multifamily residential housing unit is an employee or contractor of an entity located within the INTERNATIONAL headquarters campus and that employee or contractor performs job duties at the INTERNATIONAL headquarters. This subdivision does not apply to multifamily housing developments that are platted for individual ownership of units. B. An ancillary use is subject to compliance with generally applicable municipal building codes and fire codes and the objective development standards pursuant to subsection e of this section. C. the governing body of the municipality may not unreasonably withhold a building permit or unreasonably delay a building inspection or a certificate of occupancy for an ancillary use that complies with one of the following: 1. For INTERNATIONAL headquarters campuses that include multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow a number of multifamily residential units within the INTERNATIONAL headquarters campus that are equal to twenty-seven units per gross acre based on the total gross acreage of the INTERNATIONAL headquarters campus. 2. For campuses that include hotel use as an ancillary use pursuant to this section, a municipality shall allow a number of hotel rooms within the INTERNATIONAL headquarters campus equal to ten hotel rooms per gross acre based on the total gross acreage of the international headquarters campus. at least ten percent of the hotel rooms within the INTERNATIONAL headquarters campus shall be allowed as for-sale residential units within the hotel. d. For campuses that include hotel use or multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow complementary retail and restaurant use within the INTERNATIONAL headquarters campus. e. The following objective standards apply to an ancillary use building developed pursuant to this section: 1. A municipality may limit the height of the ancillary use building to two stories in an INTERNATIONAL headquarters campus site that is located directly adjacent to and within one hundred feet of an area that is zoned for single-family residential use. 2. except pursuant to paragraph 1 of this subsection, A municipality may not restrict the maximum height of the ancillary use building to less than six stories, not including mechanical screening or rooftop appurtenances. 3. any utility provider that may provide utility service to the ancillary use development may Review construction documents to reasonably ensure adequate water and sewer capacity impacted by the proposed ancillary use development. 4. Existing municipal zoning ordinances for setback and parking requirements for the proposed ancillary use development apply. f. A building permit for an ancillary use building developed pursuant to this section may not be obtained until the municipality issues a building permit for construction of the INTERNATIONAL Headquarters Building. A certificate of occupancy may not be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the INTERNATIONAL Headquarters Building. g. Notwithstanding subsection f of this section, if substantial construction of the INTERNATIONAL Headquarters Building has commenced, a certificate of occupancy shall be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the INTERNATIONAL Headquarters Building if the State Land Department has received a bond, a letter of credit or any other sufficient financial assurance that, in the reasonable discretion of the State Land Commissioner, provides for payment to the State Land Trust of an amount equal to the market sale value of the land and improvements containing the ancillary use development, less development costs, if the municipality does not grant a permanent certificate of occupancy for the INTERNATIONAL Headquarters Building within five years after granting the certificate of occupancy for the ancillary use building. h. A municipality shall 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 pursuant to this section. i. For ten years after the development of an allowed ancillary use development pursuant to this section, the developer shall designate at least five percent of the total for-rent multifamily residential dwellings as affordable units. At the developer's discretion, the units shall be restricted pursuant to subsection a, paragraph 2, subdivision (a) of this section as low-income housing or middle-income housing, or a mixture of BOTH low-income housing and middle-income housing and may be contained within one building or within multiple buildings. J. This section does not apply to land in the territory in the vicinity of a military airport or ancillary military facility as defined in Section 28-8461. K. For the purposes of this section: 1. "Building Code" has the same meaning prescribed in Section 9-1301. 2. "INTERNATIONAL Headquarters" means a principal central administrative office where primary headquarters-related functions and services are performed, including financial, personnel, administrative, legal, human resources, information technology, planning and similar business functions, and that does not report to any parent company outside of this State. 3. "INTERNATIONAL Headquarters Building" means the primary building that contains the INTERNATIONAL Headquarters on the INTERNATIONAL Headquarters Campus. 4. "INTERNATIONAL Headquarters Campus" means a contiguous area of not less than forty gross acres, portions of which may be separated by public rights-of-way, on which an INTERNATIONAL Headquarters is located and which may include ancillary use pursuant to this Section. 5. "Light industrial use" includes light manufacturing, semiconductor production, law enforcement support, military research and development and aeronautical use. 6. "LOW-INCOME HOUSING" MEANS HOUSING THAT IS FOR A PERSON OR PERSONS WHOSE HOUSEHOLD INCOME DOES NOT EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME. 7. "Middle-INCOME HOUSING" MEANS HOUSING THAT IS FOR A PERSON OR PERSONS WHOSE HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN INCOME. 8. "Related Entities" means entities that have more than fifty percent direct or indirect common ownership. 9. "Zoning district" means a zoning district, planned community district, planned area development or planned unit development. END_STATUTE Sec. 2. Severability If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. Sec. 3. Legislative findings The legislature finds: 1. That it is in the significant and legitimate public interest of this state to encourage the location or relocation of corporate headquarters to this state. 2. That the development of corporate international headquarters campuses as defined in section 9-461.19, Arizona Revised Statutes, as added by this act, that include primary commercial uses as well as ancillary residential uses contribute greatly to the economic prosperity and health of this state. 3. That it is necessary to adopt a uniform law governing international headquarters campuses as defined in section 9-461.19, Arizona Revised Statutes, as added by this act, to encourage the development of corporate international headquarters campuses throughout this state.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 9-461.19, to read:
START_STATUTE9-461.19. Municipal allowed ancillary use; multifamily residential housing; hotel use; regulations; applicability; definitions
A. Notwithstanding any other law, a municipality with a population of two hundred thousand or more persons but not more than five hundred thousand persons shall allow hotel use and multifamily residential housing as an allowed ancillary use on land that is vacant as of the date of the building permit application for the allowed ancillary use in a zoning district that allows light industrial use without requiring any type of application that WILL require a public hearing if the ancillary use meets both of the following criteria:
1. The ancillary use is located within aN INTERNATIONAL headquarters campus that is solely owned by either a single entity or related entities at the time that development of the INTERNATIONAL headquarters campus commences and, on completion, the INTERNATIONAL headquarters on the INTERNATIONAL headquarters campus will employ more than one thousand full-time employees at an average annual compensation of more than one hundred twenty-five percent of the Median Wage of the county where the INTERNATIONAL headquarters campus is located.
2. The INTERNATIONAL headquarters campus that contains the ancillary use is bound by a recorded instrument that is enforceable by the municipality and that does both of the following:
(a) Restricts occupancy in at least thirty percent of the multifamily residential housing units located on the INTERNATIONAL headquarters campus, which may include units designated pursuant to subsection I of this section at the discretion of the developer, to individuals who are employed at the INTERNATIONAL headquarters, or who are police officers, firefighters, teachers, veterans or health care workers and who work within five miles OF the international headquarters campus or who are the families of individuals employed at the INTERNATIONAL headquarters. the recorded instrument must also provide that the municipality where the INTERNATIONAL headquarters campus is located, in the municipality's sole and absolute discretion, may waive the occupancy requirement.
(b) Prohibits an agreement for occupancy of any multifamily residential housing unit within the INTERNATIONAL headquarters campus for a period of less than ninety consecutive days and limits occupancy to the same occupants for the entirety of the ninety consecutive days unless a tenant of the multifamily residential housing unit is an employee or contractor of an entity located within the INTERNATIONAL headquarters campus and that employee or contractor performs job duties at the INTERNATIONAL headquarters. This subdivision does not apply to multifamily housing developments that are platted for individual ownership of units.
B. An ancillary use is subject to compliance with generally applicable municipal building codes and fire codes and the objective development standards pursuant to subsection e of this section.
C. the governing body of the municipality may not unreasonably withhold a building permit or unreasonably delay a building inspection or a certificate of occupancy for an ancillary use that complies with one of the following:
1. For INTERNATIONAL headquarters campuses that include multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow a number of multifamily residential units within the INTERNATIONAL headquarters campus that are equal to twenty-seven units per gross acre based on the total gross acreage of the INTERNATIONAL headquarters campus.
2. For campuses that include hotel use as an ancillary use pursuant to this section, a municipality shall allow a number of hotel rooms within the INTERNATIONAL headquarters campus equal to ten hotel rooms per gross acre based on the total gross acreage of the international headquarters campus. at least ten percent of the hotel rooms within the INTERNATIONAL headquarters campus shall be allowed as for-sale residential units within the hotel.
d. For campuses that include hotel use or multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow complementary retail and restaurant use within the INTERNATIONAL headquarters campus.
e. The following objective standards apply to an ancillary use building developed pursuant to this section:
1. A municipality may limit the height of the ancillary use building to two stories in an INTERNATIONAL headquarters campus site that is located directly adjacent to and within one hundred feet of an area that is zoned for single-family residential use.
2. except pursuant to paragraph 1 of this subsection, A municipality may not restrict the maximum height of the ancillary use building to less than six stories, not including mechanical screening or rooftop appurtenances.
3. any utility provider that may provide utility service to the ancillary use development may Review construction documents to reasonably ensure adequate water and sewer capacity impacted by the proposed ancillary use development.
4. Existing municipal zoning ordinances for setback and parking requirements for the proposed ancillary use development apply.
f. A building permit for an ancillary use building developed pursuant to this section may not be obtained until the municipality issues a building permit for construction of the INTERNATIONAL Headquarters Building. A certificate of occupancy may not be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the INTERNATIONAL Headquarters Building.
g. Notwithstanding subsection f of this section, if substantial construction of the INTERNATIONAL Headquarters Building has commenced, a certificate of occupancy shall be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the INTERNATIONAL Headquarters Building if the State Land Department has received a bond, a letter of credit or any other sufficient financial assurance that, in the reasonable discretion of the State Land Commissioner, provides for payment to the State Land Trust of an amount equal to the market sale value of the land and improvements containing the ancillary use development, less development costs, if the municipality does not grant a permanent certificate of occupancy for the INTERNATIONAL Headquarters Building within five years after granting the certificate of occupancy for the ancillary use building.
h. A municipality shall 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 pursuant to this section.
i. For ten years after the development of an allowed ancillary use development pursuant to this section, the developer shall designate at least five percent of the total for-rent multifamily residential dwellings as affordable units. At the developer's discretion, the units shall be restricted pursuant to subsection a, paragraph 2, subdivision (a) of this section as low-income housing or middle-income housing, or a mixture of BOTH low-income housing and middle-income housing and may be contained within one building or within multiple buildings.
J. This section does not apply to land in the territory in the vicinity of a military airport or ancillary military facility as defined in Section 28-8461.
K. For the purposes of this section:
1. "Building Code" has the same meaning prescribed in Section 9-1301.
2. "INTERNATIONAL Headquarters" means a principal central administrative office where primary headquarters-related functions and services are performed, including financial, personnel, administrative, legal, human resources, information technology, planning and similar business functions, and that does not report to any parent company outside of this State.
3. "INTERNATIONAL Headquarters Building" means the primary building that contains the INTERNATIONAL Headquarters on the INTERNATIONAL Headquarters Campus.
4. "INTERNATIONAL Headquarters Campus" means a contiguous area of not less than forty gross acres, portions of which may be separated by public rights-of-way, on which an INTERNATIONAL Headquarters is located and which may include ancillary use pursuant to this Section.
5. "Light industrial use" includes light manufacturing, semiconductor production, law enforcement support, military research and development and aeronautical use.
6. "LOW-INCOME HOUSING" MEANS HOUSING THAT IS FOR A PERSON OR PERSONS WHOSE HOUSEHOLD INCOME DOES NOT EXCEED EIGHTY PERCENT OF THE AREA MEDIAN INCOME.
7. "Middle-INCOME HOUSING" MEANS HOUSING THAT IS FOR A PERSON OR PERSONS WHOSE HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN INCOME.
8. "Related Entities" means entities that have more than fifty percent direct or indirect common ownership.
9. "Zoning district" means a zoning district, planned community district, planned area development or planned unit development. END_STATUTE
Sec. 2. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Sec. 3. Legislative findings
The legislature finds:
1. That it is in the significant and legitimate public interest of this state to encourage the location or relocation of corporate headquarters to this state.
2. That the development of corporate international headquarters campuses as defined in section 9-461.19, Arizona Revised Statutes, as added by this act, that include primary commercial uses as well as ancillary residential uses contribute greatly to the economic prosperity and health of this state.
3. That it is necessary to adopt a uniform law governing international headquarters campuses as defined in section 9-461.19, Arizona Revised Statutes, as added by this act, to encourage the development of corporate international headquarters campuses throughout this state.