# Arizona HB 2946: municipalities; counties; development fees

Arizona HB 2946, municipalities; counties; development fees, is a Fifty-seventh Legislature - Second Regular Session House bill sponsored by Khyl Powell (Republican); status signed, last action 2026-06-04 (Signed by Governor); PRIA reads it as touching household money (as of 2026-11-04).

- Canonical: https://policyrisk.com/state-bill/AZ-HB2946-57th-2nd-regular
- As of: 2026-11-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Arizona HB 2946
- State: Arizona
- Session: Fifty-seventh Legislature - Second Regular Session
- Title: municipalities; counties; development fees
- Status: signed
- Chamber: House
- Introduced: 2026-02-02
- Last action: 2026-06-04, Signed by Governor
- Sponsor: Khyl Powell (Republican)
- Cosponsors: 0
- Subjects: cities and towns - title 9, counties (s), counties - title 11, development fees, municipalities, water and wastewater business (s)
- Touches household money: yes
- Roll calls: 8 (137 yes, 68 no in all)
- Economic provisions PRIA read: 5

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Lower fee caps for backyard homes: benefit, medium. Municipalities must limit development fees for accessory dwelling units, often called backyard homes. Water and wastewater fees cannot exceed the added demand the unit creates, whether it shares a meter or has its own. Other public-service fees cannot exceed the lower of 25% of total development fe…
- Public notice before local charge decisions: benefit, low. Municipalities must post meeting details for proposed new or higher taxes, assessments, or fees at least 15 days before deciding. They must also share notices through social media or other electronic tools they use. Water and wastewater charges instead follow separate utility procedures: a hearing…
- Construction taxes count toward development costs: benefit, low. Municipalities must count part of certain construction taxes toward public-service costs when calculating development fees. This covers the entire tax-rate portion above the rate charged to most other transaction privilege tax categories, without counting it twice. Municipalities also cannot set di…
- Fee protections for approved building projects: benefit, low. Residential, commercial, industrial, and multifamily projects have protection from new or higher development fees for 24 months after the fee ordinance takes effect. Protection applies when changes to an approved site plan or final subdivision plat do not increase measured service demand. If demand…
- Growth fees govern new utility capacity: mixed, low. Beginning January 1, 2027, municipal water and wastewater providers must use development-fee rules for newly adopted or increased charges funding facilities serving new growth. These rules limit charges to growth’s share of eligible capital costs and require planning and public review. Utility serv…

## Sponsors and cosponsors

- Sponsor: Khyl Powell (Republican), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-06-01 | House | Concurrence: Passed | fail |   |   |   |
| 2026-06-01 | House | Final Reading: Passed | pass | 38 | 16 |   |
| 2026-04-14 | Senate | Third Reading: Passed | pass | 27 | 0 |   |
| 2026-03-25 | Senate | Regulatory Affairs and Government Efficiency: DPA | pass | 5 | 0 |   |
| 2026-03-11 | House | Third Reading: Passed | pass | 31 | 21 |   |
| 2026-03-03 | House | Third Reading: failed to pass | fail | 26 | 30 |   |
| 2026-02-23 | House | Rules: C&P | pass | 6 | 0 |   |
| 2026-02-19 | House | Rural Economic Development: DPA | pass | 4 | 1 | 2 |

## Actions (20)

- 2026-06-04: Signed by Governor (Governor)
- 2026-06-01: Final Reading: Passed (House)
- 2026-06-01: Concurrence: Passed (House)
- 2026-04-14: Third Reading: Passed (Senate)
- 2026-04-14: Committee of the Whole: do pass amended (Senate)
- 2026-03-30: Rules: PFC (Senate)
- 2026-03-25: Regulatory Affairs and Government Efficiency: DPA (Senate)
- 2026-03-18: Senate Second Reading (Senate)
- 2026-03-17: Senate First Reading (Senate)
- 2026-03-11: Third Reading: Passed (House)
- 2026-03-10: Additional Committee of the Whole: do pass amended (House)
- 2026-03-10: Miscellaneous Motion: Passed (House)
- 2026-03-03: Motion to Reconsider Third: Passed (House)
- 2026-03-03: Third Reading: failed to pass (House)
- 2026-03-02: Committee of the Whole: do pass amended (House)
- 2026-02-25: Committee of the Whole: Retained on the Calendar (House)
- 2026-02-23: Rules: C&P (House)
- 2026-02-19: Rural Economic Development: DPA (House)
- 2026-02-03: House Second Reading (House)
- 2026-02-02: House First Reading (House)

## Bill text

- Chaptered Version: [HTML](https://www.azleg.gov/legtext/57leg/2R/laws/0121.htm), [PDF](https://apps.azleg.gov/BillStatus/GetDocumentPdf/543791)
- House Engrossed Version (03/11/2026): [HTML](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946H.htm), [PDF](https://apps.azleg.gov/BillStatus/GetDocumentPdf/539530)
- Introduced Version: [HTML](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946P.htm), [PDF](https://apps.azleg.gov/BillStatus/GetDocumentPdf/535002)
- Senate Engrossed Version (04/14/2026): [HTML](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946S.htm), [PDF](https://apps.azleg.gov/BillStatus/GetDocumentPdf/542300)

## Related bills

- HB 2786: TPT; exemption; textbook rental (signed)
- HB 2780: judicial foreclosure; excess proceeds sale (signed)
- HB 2477: Arizona's education savings plan; revisions (signed)
- HB 2406: department of veterans' services; study (signed)
- HB 2397: homeowners' associations; property covenants; disclosures (signed)
- HB 2104: agricultural property; classification; inspection (signed)

## Sources
- [Chaptered Version (HTML)](https://www.azleg.gov/legtext/57leg/2R/laws/0121.htm)
- [Chaptered Version (PDF)](https://apps.azleg.gov/BillStatus/GetDocumentPdf/543791)
- [House Engrossed Version (03/11/2026) (HTML)](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946H.htm)
- [House Engrossed Version (03/11/2026) (PDF)](https://apps.azleg.gov/BillStatus/GetDocumentPdf/539530)
- [Introduced Version (HTML)](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946P.htm)
- [Introduced Version (PDF)](https://apps.azleg.gov/BillStatus/GetDocumentPdf/535002)
- [Senate Engrossed Version (04/14/2026) (HTML)](https://www.azleg.gov/legtext/57leg/2R/bills/HB2946S.htm)
- [Senate Engrossed Version (04/14/2026) (PDF)](https://apps.azleg.gov/BillStatus/GetDocumentPdf/542300)

## Related
- [HB 2786: TPT; exemption; textbook rental](https://policyrisk.com/state-bill/AZ-HB2786-57th-2nd-regular)
- [HB 2780: judicial foreclosure; excess proceeds sale](https://policyrisk.com/state-bill/AZ-HB2780-57th-2nd-regular)
- [HB 2477: Arizona's education savings plan; revisions](https://policyrisk.com/state-bill/AZ-HB2477-57th-2nd-regular)
- [HB 2406: department of veterans' services; study](https://policyrisk.com/state-bill/AZ-HB2406-57th-2nd-regular)
- [HB 2397: homeowners' associations; property covenants; disclosures](https://policyrisk.com/state-bill/AZ-HB2397-57th-2nd-regular)
- [HB 2104: agricultural property; classification; inspection](https://policyrisk.com/state-bill/AZ-HB2104-57th-2nd-regular)
- [Arizona bills](https://policyrisk.com/states/arizona/bills)
- [Arizona state hub](https://policyrisk.com/states/arizona)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/AZ-HB2946-57th-2nd-regular (as of 2026-11-04).