COMMITTEE ON WAYS AND MEANS
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1159
(Reference to Senate engrossed bill)
Strike everything after the enacting clause and insert:
"Section 1. The Arizona Revised Statutes are amended by adding Title 18, to read:
TITLE 18
GENERAL GOVERNMENT
CHAPTER 1
PROSPERITY DISTRICTS
ARTICLE 1. GENERAL PROVISIONS
18-101. Definitions
In this article, unless the context otherwise requires:
1. "Eligible land" means real property that consists of at least one square mile of contiguous land and that is held in unencumbered fee title or encumbered fee title if all persons that hold valid and enforceable property or security interests in the real property consent to the classification of the real property as eligible land.
2. "Ordinary law" means any measure, statute, regulation, ordinance or executive order that is enacted or adopted by this state, a political subdivision of this state or an agency or board of this state or a political subdivision of this state and that is subject to amendment or repeal by a legislative act that requires approval by a majority of the members of each house of the legislature for enactment.
3. "Original owner" means any person that separately or collectively owns eligible land.
4. "Prosperity district" means a political subdivision of this state that is formed pursuant to this article.
5. "Revenue sharing agreement" means an agreement entered into pursuant to section 18‑104.
18-102. Prosperity district formation; expansion
A. To form or expand a prosperity district, an original owner shall submit a written petition to:
1. The governor, the president of the senate and the speaker of the house of representatives for each prosperity district.
2. The governing board of a city or town if any portion of the prosperity district is in the city or town.
3. The governing board of a prosperity district if the prosperity district is to be expanded by the inclusion of the eligible land.
B. The petition shall provide:
1. The name, address, telephone number and e‑mail address of the original owner.
2. A legal description of the boundaries of the proposed new or expanded prosperity district.
3. A map and a general description of the area to be included in the proposed new or expanded prosperity district that is sufficiently detailed to permit a property owner to determine if a particular property is located in the proposed new or expanded prosperity district.
4. A sworn statement requesting the formation or expansion of a prosperity district and avowing that the real property in the new or expanded prosperity district is eligible land.
5. For a new prosperity district, a unique name to be assigned to the prosperity district and the names, addresses and occupations of the proposed members of the prosperity district's initial governing board.
C. Within ten days after receipt by each person described in subsection A of this section, the recipient of the petition shall do both of the following:
1. Determine whether the petition meets the requirements of subsection B of this section.
2. Notify the original owner that the petition is in compliance or that the petition is not in compliance by stating the specific nature of any deficiency. If the recipient does not notify the original owner that the petition is not in compliance within the ten‑day period, the petition is deemed to be in compliance.
D. A prosperity district is formed when a petition that is determined to be in compliance pursuant to subsection C of this section is recorded with the county recorder for each county in which the prosperity district is located.
18-103. Interstate compact; federal consent
A. After the formation of the first prosperity district in this state, the governor shall attempt to negotiate an interstate compact on prosperity districts with one or more other states. If the governor reaches a preliminary agreement with one or more other states, the governor shall submit the compact to the legislature for enactment.
B. If an interstate compact is enacted pursuant to this section, the governor may seek federal consent of the interstate compact and limitations on the application of federal law in a prosperity district.
18-104. Revenue sharing agreement
A. If this state enters into an interstate compact pursuant to section 18‑103, a prosperity district shall negotiate a revenue sharing agreement with this state and any city or town in which the prosperity district is located.
B. The Revenue sharing agreement shall:
1. Define the revenues to which it applies.
2. Guarantee that this state and any city or town in which a prosperity district is located receives on an annual basis revenues that are at least equal to the revenues received by this state and the city or town in the fiscal year immediately before the year in which the agreement becomes effective.
C. The revenue sharing agreement:
1. Shall be recorded with the county recorder in every county in which the prosperity district is located.
2. Applies to all real property in the prosperity district as long as the district is in existence.
D. If a prosperity district does not enter into a revenue sharing agreement with this state and any city or town in which the PROSPERITY district is located within three years after the date the PROSPERITY district is formed or the date of the enactment of the interstate compact pursuant to section 18‑103, whichever is later, the formation of the prosperity district is vacated.
18-105. Effect of recording revenue sharing agreement
A. After the date the revenue sharing agreement is filed:
1. the governing board of the prosperity district has exclusive governing authority in the prosperity district as provided in this section and as allowed by the constitution of this state and federal law.
2. Every ordinary law that applies to taxes or that regulates or can otherwise be based on any condition, entity, service, property, action or omission located or committed in a prosperity district is deemed to conflict with the authority of the prosperity district and has no effect within the prosperity district.
3. An agency or political subdivision of this state does not have jurisdiction in a prosperity district and may not address any condition, entity, property, action or omission that is located or occurs in a prosperity district.
B. Notwithstanding subsection A of this section:
1. the common law of contracts, property and torts applies in a prosperity district unless it is modified by the governing board of the prosperity district.
2. Legal disputes and causes of actions that arise from actions or omissions within a prosperity district shall be brought in the judicial system of this state, unless the governing board of the prosperity district modifies this requirement or the parties in the action otherwise agree.
3. All laws of this state existing on the date the revenue sharing agreement is filed that concern national security, immigration, violent crime, prostitution or the possession, sale, transfer or use of controlled substances are effective in a prosperity district, including the jurisdiction of all agencies administering these laws and all related ongoing investigations, prosecutions and administrative proceedings.
4. The governing board of a prosperity district shall cooperate with this state in fulfilling the conditions of any federal grant. If a prosperity district does not cooperate in fulfilling these conditions, the prosperity district is liable for the full amount of any federal monies that are denied to this state as a result of the failure to cooperate within thirty days after the submission of a proof of claim by this state to the prosperity district for the replacement funding.
5. All interstate agreements, compacts and laws that enforce or protect vested contractual or property rights and that exist on the date the revenue sharing agreement is recorded, including any interstate agreement or compact concerning water rights and gaming, continue to be effective in the prosperity district.
6. This state retains the same jurisdiction in a prosperity district as it had under law existing before the recording of the revenue sharing agreement to remedy environmental harms, property damage and economic or personal injuries that occur outside of the prosperity district and that are caused by conditions or activities that occur in the prosperity district.
18-106. Governance of prosperity districts
A. The governing board of a prosperity district shall manage the district's governmental and proprietary operations. The governing board shall adopt any necessary bylaws, policies or rules consistent with this article.
B. A prosperity district may only furnish municipal services, utilities and infrastructure without which:
1. the prosperity district would be unable to perform its duties under this article.
2. Development and improvement of the real property in the Prosperity district would be impracticable.
3. The district would cease to exist as a viable governmental entity.
C. A prosperity district:
1. May not EXERCISE the power of eminent domain or levy any tax.
2. Shall give preference to rules of governance that are adopted voluntarily by contract.
18-107. Dissolution of prosperity district; vacation of revenue sharing agreements
A prosperity district may be dissolved and all revenue sharing agreements relating to its formation or expansion may be vacated pursuant to the bylaws of its governing board or on written petition submitted to the governing board of the prosperity district by property owners of lands within the prosperity district representing at least two‑thirds of the fair market value of all lands within the prosperity district."
Amend title to conform