ORDINANCES: Impacted by new state laws

From Page 4

“The bill provides that a plaintiff may challenge an ordinance on grounds that it is arbitrary and unreasonable. The bill provides that a plaintiff prevailing on these grounds may be awarded up to $50,000 in attorney fees in addition to damages.

“Under SB 170, local governments, under certain circumstances, are required to suspend enforcement of an ordinance subject to legal challenge. The bill will also require courts to give priority to cases in which enforcement is suspended and render a preliminary or final decision as expeditiously as possible.

“The bill changes what is required of local governments before passing ordinances. The most burdensome change is that counties and cities will be required to produce a ‘business impact estimate’ prior to passing an ordinance. The estimate must be published on the local government’s website and include certain information, such as the proposed ordinance’s purpose, estimated economic impact on businesses and compliance costs. These provisions will take effect Oct. 1, 2023, except where otherwise provided,” Vose wrote.

“Section 57.112 allows legal challenges to local ordinances on grounds that they are expressly preempted by state law or conflict with the state constitution. SB 170 expands Section 57.112 to include grounds that an ordinance is arbitrary or unreasonable. In the past, courts have declared ordinances arbitrary or unreasonable when the ordinance has no legitimate governmental interest. The amendment provides that when an ordinance is successfully challenged in court as arbitrary or unreasonable, the court may, but is not required to, award up to $50,000 in attorney’s fees and costs to the prevailing plaintiff. The bill also allows a complainant to recover damages against the local government that enacted the local ordinance,” Vose wrote.

“If signed into law by the governor, these provisions will take

The most burdensome change is that counties and cities will be required to produce a ‘business impact estimate’ prior to passing an ordinance.”

Becky Vose,

effect Oct. 1, 2023, except where otherwise provided,” she noted. When discussing this legislation on May 8, Vose advised the commission to adopt any new or amended regulatory ordinances they desire before Oct. 1.

Business Impact Estimates

According to Vose, the business impact estimate must be posted on the county or city’s website. The estimate must include a statement of the public purpose to be served by the proposed ordinance. An estimate of the ordinance’s direct economic impact, including fees, on private businesses is required and the city or county must provide a good faith estimate of the number of businesses likely to be impacted.

A business impact estimate is not required for ordinances required to comply with federal or state laws or regulations, ordinances relating to financial obligations and debt, ordinances relating to budget adoption and amendments, ordinances required to implement a contract or agreement, emergency ordinances, ordinances relating to procurement or ordinances relating to growth policy, municipal planning and land development regulation.