HB2386 - 512R

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

Section 1. Section 16-204, Arizona Revised Statutes, is amended to read:

START_STATUTE16-204. Declaration of statewide concern; consolidated election dates; definition

A. The legislature finds and determines that for the purposes of increasing voter participation and for decreasing the costs to the taxpayers it is a matter of statewide concern that all elections in this state be conducted on a limited number of days and, therefore, the legislature finds and declares that the holding of all elections on certain specific consolidated days is a matter of statewide concern. This section preempts all local laws, ordinances and charter provisions to the contrary.

B. For elections held before 2014 and notwithstanding any other law or any charter or ordinance of any county, city or town to the contrary, an election held for or on behalf of a county, city or town, a school district, a community college district or special districts organized pursuant to title 48, chapters 5, 6, 8, 10, 13 through 16 and 33 may only be held on the following dates:

1. Except for regular elections for candidates in a city or town with a population of one hundred seventy-five thousand or more persons, all elections, including recall elections and special elections to fill vacancies, shall be held on:

(a) The second Tuesday in March.

(b) The third Tuesday in May.

(d) The first Tuesday after the first Monday in November. Notwithstanding any other law, an election must be held on this date for the approval of an obligation or other authorization requiring or authorizing the assessment of secondary property taxes by a county, city, town, school district, community college district or special taxing district, except as provided by title 48.

2. For regular elections that are only for candidates in a city or town with a population of one hundred seventy-five thousand or more persons and not including recall elections and special elections to fill vacancies in those cities or towns, elections shall be held on:

(a) The tenth Tuesday before the first Tuesday after the first Monday in November.

(b) The first Tuesday after the first Monday in November.

C. For elections held before 2014, for any city or town, including a charter city, that holds its regularly scheduled candidate elections in even‑numbered years pursuant to subsection B, paragraph 2 of this section, the term of office for a member of the city council or for the office of mayor begins on or after the second Tuesday in January in the year following the election.

D. Subsections B and C of this section do not apply to an election regarding a county or city charter committee or county or city charter proposal that is conducted pursuant to article XIII, section 2 or 3 or article XII, section 5, Constitution of Arizona.

E. Beginning with elections held in 2014 and later and notwithstanding any other law or any charter or ordinance to the contrary, a candidate election held for or on behalf of any political subdivision of this state other than a special election to fill a vacancy or a recall election may only be held on the following dates and only in even‑numbered years:

1. The tenth Tuesday before the first Tuesday after the first Monday in November. If the political subdivision holds a primary or first election and a general or runoff election is either required or optional for that political subdivision, the first election shall be held on this date, without regard to whether the political subdivision designates the election a primary election, a first election, a preliminary election or any other descriptive term.

2. The first Tuesday after the first Monday in November. If the political subdivision holds a general election or a runoff election, the second election held shall be held on this date. If the political subdivision holds only a single election and no preliminary or primary or other election is ever held for the purpose of reducing the number of candidates, or receiving a partisan nomination or designation or for any other purpose for that political subdivision, the single election shall be held on this date.

F. Beginning with elections held in 2014 and later that are not candidate elections, an election held for or on behalf of any political subdivision of this state, and including a special election to fill a vacancy or a recall election, may only be held on the following dates:

1. The second Tuesday in March.

2. The third Tuesday in May.

3. The tenth Tuesday before the first Tuesday after the first Monday in November.

4. The first Tuesday after the first Monday in November. Notwithstanding any other law, an election must be held on this date for the approval of an obligation or other authorization requiring or authorizing the assessment of secondary property taxes by a county, city, town, school district, community college district or special taxing district, except as provided by established pursuant to title 48 other than an agricultural improvement district and including any election regarding the formation of a special taxing district.

G. Notwithstanding any other law, for an election administered by a county recorder or other officer in charge of elections on behalf of a city, town or school district and that is an all mail ballot election for that city, town or school district, the county recorder or other officer in charge of elections may use a unified ballot format that combines all of the issues applicable to the voters in the city, town or school district requesting the all mail ballot election.

H. For the purposes of this section, "political subdivision" means any governmental entity operating under the authority of this state and governed by an elected body, including a city, town, county, school district, or community college district or any other district organized under state law but not, including a special taxing district established pursuant to title 48 other than an agricultural improvement district.END_STATUTE

Sec. 2. Section 16-225, Arizona Revised Statutes, is amended to read:

START_STATUTE16-225. Special district election dates

A. Special districts as described in title 48, chapters 5, 6, 8, 10 and 13 through 16 shall not hold any election except on a date prescribed by section 16‑204.

B. The board of supervisors of the county in which the special district or greater portion of the assessed valuation of the property in the district is located shall call the election for the formation of special districts in accordance with subsection A of this section.

C. The governing body of a special district shall call all other elections for the district in accordance with subsection A of this section and shall notify the board of supervisors and the officer in charge of elections of the county in which the special district or greater portion of the assessed valuation of the property in the district is located of the purpose of the election.

D. On notification of the officer in charge of elections and approval of the county board of supervisors, the governing body of a special district may authorize any special district election that is not held on a date prescribed by section 16‑204 to be conducted by mail pursuant to chapter 4, article 8.1 of this title.END_STATUTE

Sec. 3. Section 35-451, Arizona Revised Statutes, is amended to read:

START_STATUTE35-451. Local debt limit; exclusion of tax‑exempt property; increase in limitation; authority to issue bonds

A. The total assessed valuation of taxable property used as a base figure in determining the limitation on the amount of bonds that may be issued under article IX, section 8, Constitution of Arizona, shall not include the determination of valuation of tax exempt property.

B. The aggregate indebtedness of a county, city, town or similar municipal corporation may be increased above six per cent of the value of the taxable property in such political subdivision only as provided in this article. The value of such taxable property shall be ascertained as provided by article IX, section 8, Constitution of Arizona.

C. A multi‑county water conservation district may become indebted and issue bonds in the manner provided in this article.

D. Bonds may be issued under the provisions of this article for any lawful or necessary purpose.

E. notwithstanding any other statute:

1. Public bonds may not be issued by any entity that is not governed by an elected governing body. For the purposes of this paragraph, any governing body that includes one or more members who are appointed to fill a vacancy in an elected position on that governing body as otherwise provided by law is an elected governing body.

2. Public bonds that are issued by any special taxing district established from and after June 30, 2014 pursuant to title 48 must be included in the calculation of the aggregate indebtedness of a county, city, town or similar municipal corporation that includes any portion of the special taxing district.END_STATUTE

Sec. 4. Repeal

Section 35-505, Arizona Revised Statutes, is repealed.

Sec. 5. Section 41-1279.07, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1279.07. Uniform expenditure reporting system; reports by counties, community college districts, cities and towns; certification and attestation; assistance by auditor general; violation; classification

A. The auditor general shall prescribe a uniform expenditure reporting system for all political subdivisions subject to the constitutional expenditure limitations prescribed by article IX, sections 20 and 21, Constitution of Arizona. The system shall include:

1. For counties:

(a) An annual expenditure limitation report that includes at least the following information:

(i) The expenditure limitation established for the reporting fiscal year by the economic estimates commission.

(ii) Total expenditures, by fund, for the reporting fiscal year. Expenditures made by any special taxing district that is ESTABLISHED from and after June 30, 2014 pursuant to title 48 and that is located in the county must be included in this total.

(iii) Total exclusions from local revenues, as defined by article IX, section 20, Constitution of Arizona, by fund, for the reporting fiscal year. For any special taxing district that is ESTABLISHED from and after June 30, 2014 pursuant to title 48 and that is located in the county, only those revenues that are explicitly excluded from revenues in article IX, section 20, Constitution of Arizona, may be listed in this total.

(iv) Total amounts, by fund, of expenditures subject to the expenditure limitation for the reporting fiscal year. Expenditures made by any special taxing district that is ESTABLISHED from and after June 30, 2014 pursuant to title 48 and that is located in the county must be included in this total.

(b) Annual financial statements prepared in accordance with generally accepted accounting principles.

(c) A reconciliation of the total expenditures reported within the financial statements to the total expenditures stated within the expenditure limitation report.

2. For community college districts:

(a) An annual budgeted expenditure limitation report that includes at least the following information:

(i) The expenditure limitation established for the reporting fiscal year by the economic estimates commission.

(ii) Total budgeted expenditures, by fund, for the reporting fiscal year.

(iii) Total exclusions from local revenues, as defined by article IX, section 21, Constitution of Arizona, by fund, for the reporting fiscal year.

(iv) Total amounts, by fund, of budgeted expenditures subject to the expenditure limitation for the reporting fiscal year.

(b) Annual financial statements prepared in accordance with generally accepted accounting principles.

(c) A reconciliation of the total expenditures reported within the financial statements to the total expenditures reported within the expenditure limitation report.

3. For cities and towns:

(a) An annual expenditure limitation report that includes at least the following information:

(i) The expenditure limitation established for the reporting fiscal year by the economic estimates commission and, if applicable, the voter approved alternative expenditure limitation.

(iii) Total exclusions from local revenues, as defined by article IX, section 20, Constitution of Arizona, by fund, for the reporting fiscal year or, if applicable, the total exclusions from the voter approved alternative expenditure limitation. For any special taxing district that is ESTABLISHED from and after June 30, 2014 pursuant to title 48 and that is located in the city or town, only those revenues that are explicitly excluded from revenues in article IX, section 20, Constitution of Arizona, may be listed in this total.

(b) Financial statements prepared in accordance with generally accepted accounting principles.

(c) A reconciliation of the total expenditures reported within the financial statements to the total expenditures reported within the expenditure limitation report.

B. The auditor general shall provide detailed instructions for completion and submission of the reports described in subsection A of this section. The auditor general shall prescribe definitions for terms utilized in and the form of the reports described in subsection A of this section. The reports described in subsection A of this section are required of counties and community college districts beginning with fiscal year 1981‑1982. The reports described in subsection A of this section are required of cities and towns beginning with the fiscal year the political subdivision is subject to the expenditure limitation. The annual reporting requirements also apply to political subdivisions subject to an alternative expenditure limitation enacted pursuant to article IX, section 20, subsection (9), Constitution of Arizona.

C. The reports described in subsection A of this section must be filed with the auditor general within four months after the close of each fiscal year. Upon written request, the auditor general may grant up to a one hundred twenty day extension, if extenuating circumstances exist that prevent submission of the reports within the required four month period.

D. The auditor general or a certified public accountant or public accountant performing the annual audit required pursuant to sections 41‑1279.21 and 9‑481 shall attest to the expenditure limitation reports and financial statements for counties, community college districts and cities. The certified public accountant or public accountant performing the annual or biennial audit required pursuant to section 9‑481 shall attest to the expenditure limitation reports and financial statements for towns.

E. Each political subdivision shall provide to the auditor general by July 31 each year the name of the chief fiscal officer designated by the governing board of the political subdivision to submit the current fiscal year's expenditure limitation report. The political subdivision shall notify the auditor general of any changes of individuals designated to file the required reports. The designated chief fiscal officer shall certify to the accuracy of the annual expenditure limitation report.

F. The auditor general shall prescribe forms for the uniform reporting system and may provide assistance to individuals, certified public accountants or public accountants responsible for attesting to the expenditure limitation reports and financial statements.

G. A chief fiscal officer, designated pursuant to subsection E of this section, who subsequent to July 1, 1983 refuses to file the reports required by this section within the prescribed time periods or who intentionally files erroneous reports is guilty of a class 1 misdemeanor. A city or town exceeding the expenditure limitation prescribed or authorized pursuant to article IX, section 20, Constitution of Arizona, for any fiscal year, without authorization pursuant to such section, shall have the amount specified in subsection H of this section of its allocations of the state income tax, distributed pursuant to section 43‑206, withheld and redistributed to other cities and towns in the same manner as determined pursuant to that section, except that the population of the city or town exceeding the expenditure limitation shall not be included in the computation, and the city or town exceeding the expenditure limitation shall not be entitled to share in the redistribution. A community college district exceeding the expenditure limitation prescribed pursuant to article IX, section 21, Constitution of Arizona, for any fiscal year, without authorization pursuant to such section or section 15‑1471, shall have the amount specified in subsection H of this section of its allocations of state aid, distributed pursuant to section 15‑1466, withheld.

H. The auditor general shall hold a hearing to determine if any political subdivision has exceeded the expenditure limitations prescribed pursuant to article IX, sections 20 and 21, Constitution of Arizona. If a county has exceeded the expenditure limitations prescribed pursuant to article IX, section 20, Constitution of Arizona, without authorization pursuant to that section, the auditor general shall notify the board of supervisors of the county to reduce the allowable levy of primary property taxes of the county pursuant to section 42‑17051, subsection C. If any political subdivision other than a county has exceeded the expenditure limitations prescribed pursuant to article IX, sections 20 and 21, Constitution of Arizona, without authorization, the auditor general shall notify the state treasurer to withhold a portion of the political subdivision's allocations of the revenues described in subsection G of this section for the fiscal year subsequent to the auditor general's hearing as follows:

1. If the excess expenditures are less than five per cent of the limitation, an amount equal to the excess expenditures.

2. If the excess expenditures are equal to or greater than five per cent but less than ten per cent of the limitation, or are less than five per cent of the limitation but it is at least the second consecutive instance of excess expenditures, an amount equal to triple the excess expenditures.

3. If the excess expenditures are equal to or greater than ten per cent of the limitation, an amount equal to five times the excess expenditures or one‑third of the allocation of the revenues described in subsection G of this section, whichever is less.

I. A county, city or town is not deemed to have exceeded the expenditure limitation if the county, city or town makes expenditures for capital improvements from utility revenues pursuant to title 9, chapter 5, article 3 or from excise taxes levied by the county, city or town for a specific purpose and the county, city or town repays the expenditure from the proceeds of bonds or other lawful long‑term obligations before the hearing required by subsection H of this section. END_STATUTE