HB2420 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 48-820, Arizona Revised Statutes, is amended to read:

START_STATUTE48-820. Election to merge fire districts; notice; hearing; approval; joint meeting; merged district board

A. Except as provided in subsection J of this section, the board of supervisors shall make an order calling for an election to decide whether to merge fire districts when a resolution for merger from each district is submitted to the board. The board of supervisors shall not make an order calling for an election to merge fire districts more frequently than once every two years. Whether or not the districts are merged, the fire districts shall reimburse the counties for the expenses of the election, including the cost of mailing any notices required pursuant to this section. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located. The words appearing on the ballot shall be "(insert fire districts' names) merge as a fire district‑‑yes" and "(insert fire districts' names) merge as fire district‑‑no."

B. Within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of merging the fire districts, the board shall enter that fact on its minutes.

C. Except as prescribed in subsection D of this section, two or more fire districts may merge if the governing body of each affected fire district, by a majority vote of the members of each governing body, adopts a resolution declaring that a merger be considered and a public hearing be held to determine if a merger would be in the best interests of the district and would promote public health, comfort, convenience, necessity or welfare. After each district adopts such a resolution, the governing body by first class mail in a sealed envelope shall send written notice of the resolution printed in twelve point font, its purpose and notice of the day, hour and place of a hearing on the proposed merger to each owner of taxable property within the boundaries of the district. The notice shall contain the name and description of the boundaries of each district proposed to be merged and a detailed, accurate map of the area to be included in the merger. No new territory may be included as a result of the merger.

D. A noncontiguous county island fire district formed pursuant to section 48‑851 shall not merge with a fire district formed pursuant to section 48‑261.

E. The clerk of the governing body shall post notice in at least three conspicuous public places in the district and shall also publish notice twice in a daily newspaper of general circulation in the county in which the district is located, at least ten days before the public hearing. The clerk of each governing body affected by the proposed merger shall also mail notice and a copy of the resolution in support of the merger to the chairman of the board of supervisors of the county or counties in which the affected districts are located. The chairman of the board of supervisors shall order a review of the proposed merger and shall submit written comments to the governing body of each fire district located in that county within ten days after receipt of the notice.

F. At the hearing, the governing body of the district shall consider the comments of the board of supervisors, hear those persons who appear for or against the proposed merger and determine whether the proposed merger will promote public health, comfort, convenience, necessity or welfare. If, after the public hearing each of the governing bodies of the districts affected by the proposed merger adopt a resolution by a three‑fourths vote that the merger will promote public health, comfort, convenience, necessity or welfare, each of the governing bodies of the districts affected by the proposed merger shall submit the resolutions to the board of supervisors.

G. Before considering any resolution of merger pursuant to this section, a governing body shall obtain written consent to the merger from any single taxpayer residing within each of the affected districts who owns thirty per cent or more of the net assessed valuation of the total net assessed valuation of the district. If written consent contemplated by this subsection is not obtained, then the provisions of subsections A and B apply, and the merger may only be accomplished by election.

H. If the proposal for merger is approved as provided by subsection B of this section, the governing body of the affected district with the largest population within thirty days shall call a joint meeting of the governing bodies of all of the affected districts. At the joint meeting, a majority of the members of the governing body of each affected district constitutes a quorum for the purpose of transacting business. The members of the governing body shall appoint a total of five persons from those currently serving on the governing bodies who shall complete their regular terms of office, except that no more than three of the persons appointed may serve terms that end in the same year. No more than three members shall be appointed from the same fire district board. Subsequent terms of office for district board members shall be filled by election of board members who shall be qualified electors of the merged district.

I. The appointed governing body shall immediately meet and organize itself and elect from its members a chairman and a clerk. The appointed board by resolution shall declare the districts merged and each affected district joined. The governing board by resolution shall declare the name of the newly merged fire district. The resolution and the names of the new board members for the newly organized district shall be sent to the board of supervisors, and the merger shall be deemed completed thirty days after the adoption of the resolution.

J. If the requirements of subsection G of this section are met and each of the governing body votes required by subsections C and F of this section are unanimous, subsections A and B of this section do not apply.END_STATUTE

Sec. 2. Section 48-822, Arizona Revised Statutes, is amended to read:

START_STATUTE48-822. Election to consolidate fire districts; resolution; impact statement; hearing

A. Except as provided in subsection E of this section, the board of supervisors shall make an order calling for an election to decide whether to consolidate fire districts when a resolution for consolidation of fire districts from the requesting district is submitted to the board. The board of supervisors shall not make an order calling for an election to consolidate fire districts more frequently than once every two years. Whether or not the districts are consolidated, the fire districts shall reimburse the counties for the expenses of the election, including the cost of mailing any notices. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located. The words appearing on the ballot shall be "(insert fire districts' names) consolidate as a fire district-–yes" and "(insert fire districts' names) consolidate as fire district-–no."

B. Within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of consolidating the fire districts, the board shall enter that fact on its minutes.

C. Except as proscribed by subsection D of this section, a fire district may consolidate with one or more other fire districts formed pursuant to section 48‑261 as follows:

1. A resolution requesting the consolidation of one fire district is passed by a majority vote of the governing body requesting consolidation into another fire district. The requesting district shall send by first class mail the notice of request to consolidate districts to the fire district in which the consolidation is requested.

2. On receipt of the resolution requesting consolidation, and on approval by majority vote of the governing body receiving the request, the fire districts by mutual agreement shall prepare a consolidation impact statement that includes the following:

(a) A legal description of the boundaries of the proposed consolidated district and a detailed, accurate map of the area to be included in the consolidated district. No new territory may be included as a result of a district consolidation.

(b) An estimate of the assessed valuation in the proposed consolidated district.

(c) An estimate of the change in the property tax liability of a typical resident of the proposed consolidated district as a result of the proposed consolidated district.

(d) A list and explanation of benefits that will result from the proposed consolidated district.

(e) A list and explanation of the injuries that will result from the proposed consolidated district.

3. On completion of the consolidation impact statement, the governing body of each fire district shall set a day for a hearing on the impact statement that is not fewer than sixty nor more than ninety days after the date of the completion and approval of the consolidation impact statement. The district governing bodies at any time before making a determination pursuant to paragraph 5 of this subsection may require that the impact statement be amended to include any information that the board deems to be relevant and necessary.

4. On setting the date for hearing on the consolidated district impact statement, the clerk of each governing body shall send by first class mail in a sealed envelope written notice of the statement printed in twelve point font, its purpose and notice of the day, hour and place of the hearing on the proposed consolidated district to each owner of taxable property within the boundaries of the respective fire districts. At least ten days before the hearing, the clerk of each governing body shall post the notice in at least three conspicuous public places in the respective districts and shall publish notice twice in a daily newspaper of general circulation in the area of the proposed consolidated district.

5. At the hearing called pursuant to paragraph 3 of this subsection, the governing body shall hear those persons who appear for and against the proposed consolidated district and shall determine whether the creation of the district will promote public health, comfort, convenience, necessity or welfare. If the governing body of each district determines that the public health, comfort, convenience, necessity or welfare will be promoted, it shall approve the consolidated district impact statement.

6. Within fifteen days after the approval of the board as prescribed by paragraph 5 of this subsection, the clerk of the board of the district requesting consolidation shall send by first class mail notice of the approval to the fire district in which the consolidation is requested.

7. After receiving the approval of the requesting governing body to consolidate districts as provided in paragraph 6 of this subsection, the governing body of the district into which consolidation was requested shall set a day for a hearing on the consolidation of the districts. The hearing shall be held not fewer than thirty nor more than sixty days after the date of the approval by the requesting governing body.

8. At the hearing called pursuant to paragraph 7 of this subsection, the governing body shall determine if the creation of the consolidated district will promote public health, comfort, convenience, necessity or welfare. If the governing body of the district determines that the public health, comfort, convenience, necessity or welfare will be promoted, it shall by resolution declare the districts consolidated and each affected district joined.

9. The governing body shall submit the resolution of consolidation to the board of supervisors.

10. Those persons currently serving as the governing body of the district into which consolidation was requested shall serve as the governing body of the newly consolidated district and complete their regular terms of office. The newly consolidated district governing body shall consist of at least five members.

11. If the consolidation results in a new district population that is greater than fifty thousand persons, the new governing board may appoint an additional two members to serve until the next general election at which time the newly elected member with the highest number of votes serves a four year term and the other member serves a two year term. Thereafter, the term of office for these two new members is four years.

12. The governing body by resolution shall declare the name of the newly consolidated fire district.

13. If a newly consolidated fire district has a combined population that exceeds fifty thousand persons, the governing body of the newly consolidated fire district by resolution may declare the name of the newly consolidated fire district to include within the name the title of fire authority.

14. If a proposed consolidated district would include property located in an incorporated city or town, in addition to the other requirements of this section, the governing body of the district shall approve the creation of the consolidated district only if the governing body of the city or town endorses the creation by ordinance or resolution.

15. Before considering any resolution of consolidation pursuant to this section, a governing body shall obtain written consent to the consolidation from any single taxpayer residing within each of the affected districts who owns thirty per cent or more of the net assessed valuation of the total net assessed valuation of the district.

D. A noncontiguous county island fire district formed pursuant to section 48‑851 shall not consolidate with a fire district formed pursuant to section 48‑261.

E. If the requirements of subsection C, paragraph 15 of this section are met and each of the governing body votes required by this section are unanimous, subsections A and B of this section do not apply.END_STATUTE