House Engrossed Senate Bill

 

 

 

 

State of Arizona

Senate

Fiftieth Legislature

Second Regular Session

2012

 

 

SENATE BILL 1243

 

 

 

AN ACT

 

amending sections 48-261, 48-262 and 48-266, Arizona Revised Statutes; relating to certain special taxing districts.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



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

Section 1.  Section 48-261, Arizona Revised Statutes, is amended to read:

START_STATUTE48-261.  District creation; procedures; notice; hearing; determinations; petitions

A.  A fire district, community park maintenance district, sanitary district or hospital district for either a hospital or an urgent care center shall be created by the following procedures:

1.  Any adult person desiring to propose creation of a district shall provide a legal description of the area proposed for inclusion in the district to the county assessor of the county in which the district is to be located.  The county assessor shall provide to the person proposing formation of the district a detailed list of all taxed properties in the area proposed for inclusion in the district.  The person proposing formation of the district shall prepare and submit a district impact statement to the board of supervisors of the county in which the district is to be located.  Except for a proposed community park maintenance district that is to be located in more than one county, if a proposed district is located in more than one county, the impact statement 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 boards of supervisors of any other counties in which a portion of the district is to be located shall provide information and assistance to the responsible board of supervisors.  For a community park maintenance district that is to be located in more than one county, the impact statement shall be submitted to the board of supervisors for each of the affected counties.  If the person desiring to create a district pursuant to this section is unable to complete the district impact statement, the board of supervisors may assist in the completion of the impact statement if requested to do so, provided the bond required in subsection C of this section is in an amount sufficient to cover any additional cost to the county.  The district impact statement shall contain at least the following information:

(a)  A legal description of the boundaries of the proposed district and a detailed, accurate map and a general description of the area to be included in the district sufficiently detailed to permit a property owner to determine whether a particular property is within the proposed district.

(b)  The detailed list of taxed properties provided by the assessor pursuant to this PARAGRAPH.

(b)  (c)  An estimate of the assessed valuation within the proposed district.

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

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

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

(f)  (g)  The names, addresses and occupations of the proposed members of the district's organizing board of directors.

(g)  (h)  A description of the scope of services to be provided by the district during its first five years of operation.  At a minimum this description shall include an estimate of anticipated capital expenditures, personnel growth and enhancements to service.

2.  On receipt of the district impact statement, the board of supervisors shall set a day, not fewer than thirty nor more than sixty days from that date, for a hearing on the impact statement.  The board of supervisors, at any time before making a determination pursuant to paragraph 4 of this subsection, may require that the impact statement be amended to include any information that the board of supervisors deems to be relevant and necessary.

3.  On receipt of the district impact statement, the clerk of the board of supervisors shall mail, by first class mail, written notice of the statement, its purpose and notice of the day, hour and place of the hearing on the proposed district to each owner of taxable property and to each household in which a qualified elector resides within the boundaries of the proposed district.  The written notice shall state the purpose of the hearing and shall state where a copy of the impact statement may be viewed or requested.  The clerk of the board of supervisors shall post the notice in at least three conspicuous public places in the area of the proposed district and shall publish twice in a daily newspaper of general circulation in the area of the proposed district, at least ten days before the hearing, or, if no daily newspaper of general circulation exists in the area of the proposed district, at least twice at any time before the date of the hearing, a notice setting forth the purpose of the impact statement, the description of the area of the proposed district and the day, hour and place of the hearing.

4.  At the hearing called pursuant to paragraph 2 of this subsection, the board of supervisors shall hear those who appear for and against the proposed district and shall determine whether the creation of the district will promote public health, comfort, convenience, necessity or welfare.  If the board of supervisors determines that the public health, comfort, convenience, necessity or welfare will be promoted, it shall approve the district impact statement and authorize the persons proposing the district to circulate petitions as provided in this subsection.  For a community park maintenance district that is required to obtain the approval of more than one county's board of supervisors, the petitions may only be circulated after approval of the board of supervisors from each affected county.  The order of the board of supervisors shall be final, but if the request to circulate petitions is denied, a subsequent request for a similar district may be refiled with the board of supervisors after six months from the date of such denial.  once the circulation of petitions has been authorized, the property included in the proposed new district shall not be the subject of other petitions proposing a new district or boundary change or the subject of a singLe-parcel annexation until the one year period to submit signatures prescribed by paragraph 6 of this subsection has expired or has otherwise been extinguished.

5.  Within fifteen days after receiving the approval of the board of supervisors as prescribed by paragraph 4 of this subsection, the clerk of the board shall determine the minimum number of signatures and assessed valuation required for compliance with paragraph 7 of this subsection.  After making that determination, that the number of signatures shall remain fixed and the assessed valuation of the taxed properties within the boundaries of the proposed district shall remain fixed for purposes of determining compliance with the property valuation requirement prescribed in paragraph 7 of this subsection.

6.  After receiving the approval of the board of supervisors as provided in paragraph 4 of this subsection, any adult person may circulate and present petitions to the board of supervisors of the county in which the district is located.  All petitions circulated shall be returned to the board of supervisors within one year from the date of the approval of the board of supervisors pursuant to paragraph 4 of this subsection.  Any petition that is returned more than one year from that date is void.

7.  The petitions presented pursuant to paragraph 6 of this subsection shall comply with the provisions regarding verification in section 48‑266 and shall:

(a)  At all times, contain a legal map and general description of the boundaries of the proposed district and a detailed, accurate map of the proposed district sufficiently detailed to permit a property owner to determine whether a particular property is within the proposed district and the names, addresses and occupations of the proposed members of the district's organizing board of directors.  No alteration of the proposed district shall be made after receiving the approval of the board of supervisors as provided in paragraph 4 of this subsection.  The items required to be contained with the petition under this subsection shall be printed on the back of the petition form required pursuant to section 48-266 unless the size of the items preclude this requirement.

(b)  Be signed by owners of more than one‑half of the property owners taxed property units in the area of the proposed district and be signed by persons owning collectively more than one‑half of the net assessed valuation of the property in the area of the proposed district.  Property exempt pursuant to title 42, chapter 11, article 3 shall not be considered in determining the total assessed valuation of the proposed district nor shall owners of property not subject to taxation be eligible to sign petitions.

(c)  An error in the legal description of the proposed district shall not invalidate the petitions if considered as a whole the information provided is sufficient to identify the property AS illustrated in the map required pursuant to subsection a of this section.

8.  On receipt of the petitions, the board of supervisors shall set a day, not fewer than ten nor more than thirty days from that date, for a hearing on the petition.  The hearing shall be postponed if a timely request to supplement petition signatures is made pursuant to section 48-266, subsection K, so that any supplemental petition signatures submitted pursuant to that section may be considered by the board of supervisors.  The postponed hearing shall be held no more than thirty days after the submission of any supplemental petition signatures.

9.  Before the hearing called pursuant to paragraph 8 of this subsection, the board of supervisors shall determine the validity of the petitions presented.

10.  At the hearing called pursuant to paragraph 8 of this subsection, the board of supervisors, if the petitions are valid, shall order the creation of the district.  The board of supervisors shall enter its order setting forth its determination in the minutes of the meeting, not later than ten days from the day of the hearing, and a copy of the order shall be filed in the county recorder's office.  The order of the board of supervisors shall be final, and the proposed district shall be created thirty days after the board of supervisors votes to create the district, except that for a community park maintenance district that is proposed for more than one county, the proposed district is created thirty days after the approval of the board of supervisors of the final county of the counties in which the district is to be located.  A decision of the board of supervisors under this subsection is subject to judicial review under title 12, chapter 7, article 6.

B.  For the purpose of determining the validity of the petitions presented pursuant to subsection A, paragraph 6 of this section:

1.  Property held in multiple ownership shall be treated as if it had only one property owner, so that the signature of only one of the owners of property held in multiple ownership is required on the formation petition.  the number of persons owning property inside tHe boundaries of the proposed district shall be determined as follows:

(a)  in the case of property assessed by the county assessor, the number of persons owning property shall be as shown on the most recent assessment of property.

(b)  in the case of property valued by the department of revenue, the number of persons owning property shall be as shown on the most recent valuation of property.

(c)  if an undivided parcel of property is owned by multiple owners, those owners are deemed to be one owner for the purposeS of this section.

(d)  if a person owns multiple parcels of property, that owner is deemed to be a single owner for the purposes of this section.

2.  The value of property shall be determined as follows:

(a)  In the case of property assessed by the county assessor, values shall be the same as those shown on the last assessment roll of the county containing such property.

(b)  In the case of property valued by the department of revenue, the values shall be those determined by the department in the manner provided by law, for municipal assessment purposes.  The county assessor and the department of revenue, respectively, shall furnish to the board of supervisors, within twenty days after such a request, a statement in writing showing the owner, the address of each owner and the appraisal or assessment value of properties contained within the boundaries of the proposed district as described in subsection A of this section.

C.  The board of supervisors may require of the person desiring to propose creation of a district pursuant to subsection A, paragraph 1 of this section a reasonable bond to be filed with the board at the start of proceedings under this section.  The bond shall be in an amount sufficient to cover costs incurred by the county if the district is not finally organized. County costs covered by the bond include any expense incurred from completion of the district impact statement, mailing of the notice of hearing to district property owners and electors, publication of the notice of hearing and other expenses reasonably incurred as a result of any requirements of this section.

D.  If a district is created pursuant to this section, the cost of publication of the notice of hearing, the mailing of notices to electors and property owners and all other costs incurred by the county as a result of this section shall be a charge against the district.

E.  If a proposed district would include property located within an incorporated city or town, in addition to the other requirements of subsection A of this section, the board shall approve the creation and authorize the circulation of petitions only if the governing body of the city or town has by ordinance or resolution endorsed such creation.

F.  Except as provided in section 48-851 and section 48‑2001, subsection A, the area of a district created pursuant to this section shall be contiguous.

G.  A district organized pursuant to this section shall have an organizing board of directors to administer the affairs of the district until a duly constituted board of directors is elected as provided in this title. The organizing board shall have all the powers, duties and responsibilities of an elected board.  The organizing board shall consist of the three individuals named in the district impact statement and the petitions presented pursuant to subsection A of this section.  If a vacancy occurs on the organizing board, the remaining board members shall fill the vacancy by appointing an interim member.  Members of the organizing board shall serve without compensation but may be reimbursed for actual expenses incurred in performing their duties.  The organizing board shall elect from its members a chairman and a clerk.

H.  For the purposes of this section, assessed valuation does not include the assessed valuation of property that is owned by a county, this state or the United States government and in the case of multiple ownership of a single parcel of property, any one property owner constitutes the entire ownership interest property exempt pursuant to title 42, chapter 11, article 3. END_STATUTE

Sec. 2.  Section 48-262, Arizona Revised Statutes, is amended to read:

START_STATUTE48-262.  District boundary changes; procedures; notice; hearing; determinations; petitions

A.  Except as prescribed by subsection I of this section, a fire district, community park maintenance district or sanitary district shall change its boundaries by the following procedures:

1.  Any adult person desiring to propose any change to the boundaries of a district shall provide a legal description of the area proposed for inclusion in the district to the county assessor of the county in which the district is to be located.  The county assessor shall provide to the person proposing any change to the boundaries of the district a detailed list of all taxed properties in the area proposed for inclusion in the district.  The person proposing any change to the boundaries of the district shall prepare and submit a boundary change impact statement to the governing body of the district.  The boundary change impact statement shall contain at least the following information:

(a)  A legal description of the boundaries of the area to be included within the proposed change and a detailed, accurate map and general description of the area sufficiently detailed to permit a property owner to determine whether a particular property is within the proposed district.  The boundaries of the proposed change shall not overlap with the boundaries of any other proposed new district of the same type or any annexation by a district of the same type for which petitions are being circulated on the date that the boundary change impact statement is filed with the governing body.

(b)  The detailed list of taxed properties provided by the assessor pursuant to this paragraph.

(b)  (c)  An estimate of the assessed valuation within the boundaries of the proposed change.

(c)  (d)  An estimate of the change in the tax rate of the district if the proposed change is made.

(d)  (e)  An estimate of the change in the property tax liability, as a result of the proposed change, of a typical resident of a portion of the district, not in the area of the proposed change, before and after the proposed change and of a typical resident of the area of the proposed change.

(e)  (f)  A list and explanation of benefits that will result from the proposed change to the residents of the area and of the remainder of the district.

(f)  (g)  A list and explanation of the injuries that will may result from the proposed change to residents of the area and of the remainder of the district.

2.  On receipt of the boundary change impact statement, the governing body shall set a day, not fewer than twenty nor more than thirty days from that date, for a hearing on the boundary change impact statement.  The board of supervisors governing body may at any time prior to making a determination pursuant to paragraph 5 of this subsection require that the impact statement be amended to include any information that the board of supervisors governing body deems to be relevant and necessary.

3.  On receipt of the boundary change impact statement, the clerk of the governing body shall mail, by first class mail, written notice of the statement, its purpose and notice of the day, hour and place of the hearing on the proposed change to each owner of taxable property within the boundaries of the proposed change.  the written notice shall state the purpose of the hearing and shall state where a copy of the impact statement may be viewed or requested.  The clerk of the governing body shall post the notice in at least three conspicuous public places in the area of the proposed change and also publish twice in a daily newspaper of general circulation in the area of the proposed change, at least ten days before the hearing, or if no daily newspaper of general circulation exists in the area of the proposed change, at least twice at any time before the date of the hearing, a notice setting forth the purpose of the impact statement, the description of the boundaries of the proposed change and the day, hour and place of the hearing.

4.  On receipt of the boundary change impact statement the clerk shall also mail notice, as provided in paragraph 3 of this subsection, to the chairman of the board of supervisors of the county in which the district is located.  The chairman of the board of supervisors shall order a review of the proposed change and may submit written comments to the governing body of the district within ten days of receipt of the notice.

5.  At the hearing called pursuant to paragraph 2 of this subsection, the governing body shall consider the comments of the board of supervisors, hear those who appear for and against the proposed change and determine whether the proposed change will promote the public health, comfort, convenience, necessity or welfare.  If the governing body determines that the public health, comfort, convenience, necessity or welfare will be promoted, it shall approve the impact statement and authorize the persons proposing the change to circulate petitions as provided in this subsection.  The order of the governing body shall be final, but if the request to circulate petitions is denied, a subsequent request for a similar change may be refiled with the governing body after six months from the date of such denial.  once the circulation of petitions has been authorized, the property included in the proposed new district shall not be the subject of other petitions proposing a new district or boundary change or the subject of a singLe-parcel annexation until the one year period to submit signatures prescribed by subsection b, paragraph 3 of this section has expired or has otherwise been extinguished.

6.  Except as provided by section 48‑851, the governing body shall not approve a proposed annexation if the property to be annexed is not contiguous with the district's existing boundary.  For purposes of determining whether or not the proposed addition is contiguous, the addition is deemed contiguous if land that is owned by or under the jurisdiction of the United States government, this state or any political subdivision of this state, other than an incorporated city or town, intervenes between the proposed addition and the current district boundary.

7.  The governing body shall not approve a proposed annexation if the area proposed to be annexed surrounds any unincorporated territory and that unincorporated territory is not also included in the district.

8.  After receiving the approval of the governing body as provided in paragraph 5 of this subsection and provided no appeal filed pursuant to paragraph 14 of this subsection remains unresolved, any adult person may circulate and present petitions to the governing body of the district.

9.  Within fifteen days after receiving the approval of the governing body as prescribed by paragraph 5 of this subsection, the clerk of the board shall determine the minimum number of signatures and the assessed valuation required to comply with paragraph 10, subdivision (b) of this subsection.  After making that determination, that the number of signatures shall remain fixed and the assessed valuation of the taxed properties within the boundaries of the proposed change shall remain fixed for purposes of determining compliance, notwithstanding any subsequent changes in ownership of the property within the boundaries of the proposed change.

10.  The petitions presented pursuant to paragraph 8 of this subsection shall comply with the provisions regarding petition form in section 48‑266 and shall:

(a)  At all times, contain a legal map and general description of the boundaries of the area to be included within the proposed change and a detailed, accurate map of the area sufficiently detailed to permit a property owner to determine whether a particular property is included within the proposed change.  No alteration of the described area shall be made after receiving the approval of the governing body as provided in paragraph 5 of this subsection.  the items required to be contained with the petition under this subsection shall be printed on the back of the petition form required pursuant to section 48‑266 unless the size of the items preclude this requirement.

(b)  Be signed by owners of more than one‑half of the property owners taxed property units within the boundaries of the proposed change and be signed by persons owning collectively more than one‑half of the net assessed valuation of the property within the boundaries of the proposed change.  property exempt pursuant to title 42, chapter 11, article 3 shall not be considered in determining the total assessed valuation of the proposed change nor shall owners of property not subject to taxation be eligible to sign petitions.

(c)  an error in the legal description of the proposed change shall not invalidate the petitions if considered as a whole the information provided is sufficient to identify the property as illustrated in the map required pursuant to subsection a of this section.

11.  On receipt of the petitions, the governing body shall set a day, not fewer than ten nor more than thirty days from that date, for a hearing on the request.  The hearing shall be postponed if a timely request to supplement petition signatures is made pursuant to section 48‑266, subsection k, so that any supplemental petition signatures submitted pursuant to that section may be considered by the board of supervisors.  The postponed hearing shall be held no more than thirty days after the submission of any supplemental petition signatures.

12.  Prior to the hearing called pursuant to paragraph 11 of this subsection, the board of supervisors shall determine the validity of the petitions presented pursuant to subsection B of this section.

13.  At the hearing called pursuant to paragraph 11 of this subsection, the governing body, if the petitions are valid, shall order the change to the boundaries.  The governing body shall enter its order setting forth its determination in the minutes of the meeting, not later than ten days from the day of the hearing, and a copy of the order shall be sent to the officer in charge of elections and a copy shall be recorded in the county recorder's office.  The order of the governing body shall be final, and the proposed change shall be made to the district boundaries thirty days after the governing body votes.

14.  On filing a verified complaint with the superior court, the attorney general, the county attorney or any other interested party may question the validity of the annexation for failure to comply with this section.  The complaint shall include a description of the alleged noncompliance and shall be filed within thirty days after the governing body of the district adopts a resolution that annexes the territory of the district.  The burden of proof is on the plaintiff to prove the material allegations of the verified complaint.  An action shall not be brought to question the validity of an annexation resolution unless it is filed within the time and for the reasons prescribed in this subsection.  All hearings that are held pursuant to this paragraph and all appeals of any orders shall be preferred and shall be heard and determined in preference to all other civil matters, except election actions.  If more than one complaint questioning the validity of an annexation resolution is filed, all such complaints shall be consolidated for the hearing.

B.  For the purpose of determining the validity of the petitions presented pursuant to subsection A, paragraph 8 of this section:

1.  Property held in multiple ownership shall be treated as if it had only one property owner, so that the signature of only one of the owners of property held in multiple ownership is required on the boundary change petition.  The number of persons owning property inside the boundaries of the boundary change shall be determined as follows:

(a)  In the case of property assessed by the county assessor, the number of persons owning property shall be as shown on the most recent assessment of property.

(b)  In the case of property valued by the department of revenue, the number of persons owning property shall be as shown on the most recent valuation of property.

(c)  If an undivided parcel of property is owned by multiple owners, those owners are deemed to be one owner for the purpose of this section.

(d)  If a person owns multiple parcels of property, that owner is deemed to be a single owner for the purposes of this section.

2.  The value of property shall be determined as follows:

(a)  In the case of property assessed by the county assessor, values shall be the same as those shown on the last assessment roll of the county containing such property.

(b)  In the case of property valued by the department of revenue, the values shall be those determined by the department in the manner provided by law, for municipal assessment purposes.  The county assessor and the department of revenue, respectively, shall furnish to the governing body, within twenty days after such a request, a statement in writing showing the owner, the address of each owner and the appraisal or assessment value of properties contained within the area of a proposed change as described in subsection A of this section.

3.  All petitions circulated shall be returned to the governing body of the district within one year from the date of the approval given by the governing body pursuant to subsection A, paragraph 5 of this section.  Any petition returned more than one year from that date is void.  If an appeal is filed pursuant to subsection A, paragraph 14 of this section, this time period for gathering signatures is tolled beginning on the date an action is filed in superior court and continuing until the expiration of the time period for any further appeal.

C.  For the purposes of determining whether or not the proposed addition is contiguous, the addition is deemed contiguous if land that is owned by or under the jurisdiction of the United States government, this state or any political subdivision of this state, other than an incorporated city or town, intervenes between the proposed addition and the current district boundary.  Property shall not be approved for annexation if the area proposed to be annexed surrounds any unincorporated territory and that unincorporated territory is not also included in the district.

D.  If the change in the boundaries proposed pursuant to subsection A of this section would result in a withdrawal of territory from an existing district, the petitions shall be approved by the governing body only if the proposed withdrawal would not result in a noncontiguous portion of the district that is less than one square mile in size. 

E.  If the impact statement described in subsection A of this section relates to the withdrawal of property from a district, in addition to the other requirements of subsection A of this section, the governing body shall also determine:

1.  If the district has any existing outstanding bonds or other evidences of indebtedness.

2.  If those bonds were authorized by an election and issued during the time the property to be withdrawn was lawfully included within the district.

F.  If the conditions of subsection E of this section are met:

1.  The property withdrawn from the district shall remain subject to taxes, special assessments or fees levied or collected to meet the contracts and covenants of the bonds.  The board of supervisors shall provide for the levy and collection of such taxes, special assessments or fees.

2.  The governing body shall:

(a)  Annually determine the amount of special property taxes, special assessments or fees that must be levied and collected from property withdrawn from the district and the mechanism by which such amount is to be collected.

(b)  Notify the board of supervisors on or before the third Monday in July of the amount determined in subdivision (a) of this paragraph.

3.  Property withdrawn from an existing district shall not be subject to any further taxes, special assessments or fees arising from the indebtedness of such district except as provided in this subsection.

G.  If the statement described in subsection A, paragraph 1 of this section requests the annexation of property located within an incorporated city or town, in addition to the other requirements of subsection A of this section, the governing body shall approve the district boundary change impact statement and authorize the circulation of petitions only if the governing body of the city or town has by ordinance or resolution endorsed such annexation and such annexation is authorized pursuant to this title.

H.  Except as provided in subsection D of this section, section 48‑851 and section 48‑2002, no change in the boundaries of a district pursuant to this section shall result in a district which contains area that is not contiguous.

I.  Notwithstanding subsection A of this section, any property owner, including a county, this state or the United States government, whose land is within a county that contains a sanitary district or fire district and whose land is contiguous to the boundaries of the sanitary district or fire district may request in writing that the governing body of the district amend the district boundaries to include that property owner's land.  If the property is located in an incorporated city or town, in addition to the other requirements prescribed in this subsection, the governing body of the fire district or sanitary district may approve the boundary change only if the governing body of the affected city or town by ordinance or resolution has approved the inclusion of the property in the district.  A request made pursuant to this subsection shall be made before the county board of supervisors orders the creation of a proposed new district of the same type or the district governing body orders the annexation by a district of the same type in which the property owner's land is proposed for inclusion and for which petitions are being circulated.  If the governing body determines that the inclusion of that property will benefit the district and the property owner, the boundary change may be made by order of the governing body and is final on the recording of the governing body's order that includes a legal description of the property that is added to the district. If the governing body does not order the boundary change, the land shall be included in the boundaries of the proposed new district of the same type or annexation by a district of the same type in which the property owner's land is proposed for inclusion and for which petitions are being circulated.  A petition and impact statement are not required for an amendment to a sanitary district's or fire district's boundaries made pursuant to this subsection.

J.  A fire district shall not annex or otherwise add territory that is already included in another existing fire district, unless deannexed pursuant to subsections D, E and F of this section.

K.  A fire district, community park maintenance district or sanitary district may appropriate and spend monies as necessary or reasonably required to assist one or more individuals or entities to change the district's boundaries pursuant to this section.

L.  Notwithstanding subsection A of this section, if an incorporated city or town has previously adopted a resolution designating a fire district as the fire service agency for the city or town, the jurisdictional boundaries of the fire district without further notice or election shall be changed to include any property annexed into the city or town.  If the annexation occurs pursuant to a joint petition for annexation, any joint petition for annexation shall clearly indicate in its title and in the notice required in the petition that the property to be annexed will be subject to the jurisdiction of both the city or town and the fire district.  A joint petition for annexation shall comply with both section 9‑471 and this section.  Any fire district boundary change that occurs through city or town annexation pursuant to this subsection is effective on the effective date of the annexation by the incorporated city or town.  If an incorporated city or town that has designated a fire district as the fire service agency for that city or town annexes property that is already part of another fire district, the annexed property shall remain part of the fire district in which it was located before the city or town's annexation.

M.  For the purposes of this section, assessed valuation does not include the assessed valuation of property that is owned by a county, this state or the United States government property exempt pursuant to title 42, chapter 11, article 3. END_STATUTE

Sec. 3.  Section 48-266, Arizona Revised Statutes, is amended to read:

START_STATUTE48-266.  Petitions of property owners; form; verification

A.  The secretary of state shall promulgate sample petition forms, with instructions for completing the form, that comply with the requirements of this statute.  Petitions that conform to the sample form will be deemed to have complied with sections b, c and d of this section.  Petitions that do not conform to the sample petition are void and shall not be counted in determining the legal sufficiency of the petition.

A.  B.  A petition of property owners that is submitted to comply with section 48‑261, subsection A, paragraph 7 shall contain a heading that clearly identifies the type of petition circulated and a statement that clearly describes the type of action being proposed.  The petition shall be in a form that is substantially similar to the following:

Special taxing district creation petition

To the board of supervisors of (insert name) county:

We the undersigned, property owners of (insert name of county), state of Arizona and owning property within the boundaries as illustrated and defined on the attached exhibit(s), legal description and map of the proposed boundaries, petition the county board of supervisors to create a (insert description of district) as described in the attached exhibit(s).  I have personally signed this petition with my first and last names.  I have not signed any other petition for the same measure. I am a property owner of the state of Arizona, county of _____________.

Notice: this is only a description of the district sought to be created by the sponsor of the measure.  It may not include every provision contained in the measure.  Before signing, make sure the exhibits are attached.  You have the right to read or examine the district impact statement before signing.

Warning

It is a class 1 misdemeanor for any person to knowingly do any of the following:

1.  Sign a district creation petition with a name other than the person's own name, except in a circumstance where the person signs for another person, in the presence of and at the specific request of that person, who is incapable of signing that person's own name because of physical infirmity.

2.  Sign the person's name more than once for the same measure.

3.  Sign a district creation petition if the person is not a property owner.

Signature  Name        Actual        Arizona    City or    Date

           (first and  Address     Post Office    Town

           last name   (street &     Address    (if any)

           printed)    no. and if    & Zip

                       no street     Code

                       address,

                       describe

                       residence

                       location)

(Fifteen numbered lines for signatures)

B.  C.  A petition of property owners that is submitted to comply with section 48-262, subsection A, paragraph 10 shall contain a heading that clearly identifies the type of petition circulated and a statement that clearly describes the type of action being proposed.  The petition shall be in a form substantially similar to the following:

Special taxing district annexation petition

To the governing body of the (insert name) district:

We the undersigned, property owners of (insert name of county), state of Arizona and owning property within the boundaries as illustrated and defined on the attached exhibit(s), legal description and map of the proposed boundaries, petition the district to annex the territory as described in the attached exhibit(s).  The area petitioning for annexation, if approved by the governing body of the district, shall become part of the annexing district and subject to all relevant provisions of the Arizona revised statutes.  I have personally signed this petition with my first and last names.  I have not signed any other petition for the same measure.  I am a property owner of the state of Arizona, county of _____________.

Notice:  this is only a description of the territory sought to be annexed by the sponsor of the measure.  It may not include every provision contained in the measure.  Before signing, make sure the exhibits are attached.  You have the right to read or examine the boundary change impact statement before signing.

Warning

It is a class 1 misdemeanor for any person to knowingly do any of the following:

1.  Sign a district annexation petition with a name other than the person's own name, except in a circumstance where the person signs for another person, in the presence of and at the specific request of that person, who is incapable of signing that person's own name because of physical infirmity.

2.  Sign the person's name more than once for the same measure.

3.  Sign a district annexation petition if the person is not a property owner.

Signature  Name        Actual        Arizona    City or    Date

           (first and  Address     Post Office    Town

           last name   (street &     Address    (if any)

           printed)    no. and if    & Zip

                       no street     Code

                       address,

                       describe

                       residence

                       location)

(Fifteen numbered lines for signatures)

C.  D.  Each petition sheet shall have printed in capital letters in no less than twelve point bold-faced type in the upper right-hand corner of the face of the petition sheet the following:

"___________ paid circulator" "______________ volunteer"

D.  E.  A circulator of petitions shall state whether the circulator is a paid circulator or volunteer by checking the appropriate line on the petition form before circulating the petition for signatures

E.  F.  Signatures obtained on petitions in violation of subsection D of this section are void and shall not be counted in determining the legal sufficiency of the petition.  The presence of signatures that are invalidated under this subsection on a petition does not invalidate other signatures on the petition that were obtained as prescribed by this section.

F.  G.  At the time of signing, the property owner shall sign the property owner's first and last names in the spaces provided and the property owner so signing for the person circulating the petition shall print the first and last names and write, in the appropriate spaces following the signature, the signer's residence address, giving street and number, and if property owner has no street address, a description of the residence location.  The property owner so signing or the person circulating the petition shall write, in the appropriate spaces following the property owner's address, the date on which the property owner signed the petition.

G.  H.  The title and text of petitions shall be in at least eight point type.

H.  I.  The eight point type required by subsection H of this section does not apply to maps, charts or other graphics.

I.  J.  The board of supervisors or other governing body of a political subdivision that receives a petition pursuant to this section shall submit a copy of the signature sheets to the county assessor for verification.  The county assessor shall:

1.  Verify that the petition contains the names of more than one‑half of the property owners in the area of the proposed district.

2.  Determine the total assessed valuation of the property owned by the persons whose names are signed on the petition.

J.  K.  The county assessor shall report the results of the verification to the board of supervisors or other governing body within ten days after receiving the copy of the signature sheets, not including Saturdays, Sundays and other legal holidays.

L.  If the report of the county assessor prepared pursuant to subsection j of this section determines that the valid signatures submitted are insufficient to meet the requirements of section 48-261, subsection a, paragraph 7, subdivision (b) and the one-year period to submit signatures pursuant to section 48-261, subsection a, paragraph 6 has not yet expired or section 48-262, subsection a, paragraph 10, subdivision (b), and the one-year period to submit signatures pursuant to section 48-262, subsection b, paragraph 3 has not yet expired, the person submitting the petitions may request that any hearing on the petitions be extended by a period of up to thirty days to permit submission of additional petition signatures.  The request to extend must be made within five days from the preparation of the county assessor's report or before the conclusion of the board of supervisors' hearing on the petitions, whichever is earlier.  Only one request to extend may be made, and only one additional submission of petitions may be made during the extension period.  if an extension is requested pursuant to this subsection, the deadline to withdraw petition signatures pursuant to section 19‑113 shall also be extended for the same period.  The additional submission must be made within the one-year period to submit signatures set by section 48-261, subsection A, paragraph 6 or section 48-262, subsection B, paragraph 3.  If additional signatures are submitted, they shall be submitted to the county assessor for verification pursuant to subsections J and K of this section. END_STATUTE

Sec. 4.  Effective date

Section 48-266, Arizona Revised Statutes, as amended by this act, is effective from and after January 1, 2013.