Second Regular Session H.B. 2568
SENATE AMENDMENTS TO H.B. 2568
(Reference to House engrossed bill)
Page 3, line 27, after "acres" insert "and, for land that is located in the unincorporated area of a county, the land meets the requirements prescribed in subsection C of this section"
Line 32, after the period insert "Beginning with districts formed after the effective date of this amendment to this section on land that is located within the UNINCORPORATED area of a county, the governing body shall adopt the resolution WITHIN ninety days after the submittal of the petition."
Page 4, line 8, strike the comma insert ":
1."
Between lines 11 and 12, insert:
"2. The owners of the land to be included in the district shall provide to the governing body an agreement to indemnify, defend and hold harmless the governing body and its agents, consultants, officers and employees for, from and AGAINST all liabilities, claims, costs and expenses, including attorney fees, that are incurred in any challenge or PRoCeEDING related to the formation, operation or administration of the proposed district, the offer and sale of the district's BONDS and the levying by the district of any tax, assessment or charge. The INDEMNIFICATION agreement shall establish a general OBLIGATION of the owners of the land but shall not be secured by the land and shall be accepted without reference to the owners' FINANCIAL ability to make repayment.
C. The property to be included in a district formed by a county must meet all of the following requirements:
1. The zoning for the property must allow development in excess of one residential DWELLING unit per acre.
2. The PROPERTY must be included within the planning area of a MUNICIPALITY or the land use element of a municipality's general plan adopted PURSUANT to section 9-461.05 or must be located immediately adjacent to the MUNICIPALITY.
3. The property MUST be the subject of a specific plan, a planned area DEVELOPMENT or a DEVELOPMENT agreement that is approved by the county pursuant to section 11-1101.
Sec. 3. Section 48-705, Arizona Revised Statutes, is amended to read:
48-705. Order forming district; election
A. After the hearing, the governing body may adopt a resolution ordering the formation of the district, deleting any property determined not to be benefited by the district or modifying the general plan and then ordering the formation of the district or determining that the district not be formed. Beginning with districts formed after the effective date of this amendment to this SECTION, if the land proposed to be included in the district is more than six hundred acres and, for land that is located in the UNINCORPORATED area of a county, the land meets the requirements prescribed in section 48-702, subsection C, the governing BODY shall adopt a resolution ordering the formation of the district, deleting any property determined not to be benefited by the district or modifying the general plan. A resolution ordering formation of the district shall state whether the district will be governed by a district board comprised composed of the members of the governing body, ex officio, or, at the option of the governing body or, for districts formed after the effective date of this amendment to this section, at the option of the landowners and if the total area included in the district is larger than six hundred acres, five directors appointed by the governing body pursuant to section 48-711, subsection C. If the district board will be comprised consist of appointed directors, the resolution shall contain the names of the five initial directors and the terms of office of each.
B. If the governing body determines that the district should or must be formed, it shall submit the formation to an election of the owners of land in the district who are qualified electors of this state and other landowners, according to section 48‑3043, unless a petition is presented to the governing body pursuant to section 48‑707, subsection F. Each owner has the number of votes or portions of votes equal to the number of acres or portions of acres rounded upward to the nearest one-fifth of an acre owned by that owner in the submitted district. In addition to holding the landowner election required by this subsection or receipt of the landowner petition pursuant to section 48‑707, subsection F, and subject to section 48‑707, subsection G, the governing body shall submit the formation of the district to a vote of the qualified electors who reside within the boundaries of the proposed district.
Sec. 4. Section 48-707, Arizona Revised Statutes, is amended to read:
48-707. Notice and conduct of elections; waiver
A. Any election under this article shall be a nonpartisan election called by posting notices in three public places within the boundaries of the district not less than twenty days before the election. Notice shall also be published in a newspaper of general circulation in the municipality or county or if there is no newspaper so circulated in the municipality in a newspaper of general circulation in the county in which the municipality is located once a week for two consecutive weeks before the election. The notice shall state:
1. The place of holding the election.
2. The hours during the day, not less than six, in which the polls will be open.
3. If it is a formation election, the boundaries of the proposed district.
4. If it is a bond election, the amount of bonds to be authorized for the district, the maximum rate of interest to be borne on the bonds, the maximum term of the bonds, not exceeding twenty‑five years, and the purposes for which the monies raised will be used.
5. If it is an ad valorem tax levy election pursuant to section 48‑723, the maximum tax rate per one hundred dollars of assessed valuation to be imposed, the purposes for which the monies raised will be used and the existing maximum tax rate, if any.
6. That a general plan is on file with the clerk.
B. The district board or the governing body, as applicable, shall determine the date of the election and the polling places for the election and may consolidate county precincts. For other than a formation election pursuant to section 48‑705, subsection B, and an election held pursuant to subsection G of this section, precinct registers shall be used. The county recorder shall submit precinct registers on the request of the clerk, and if the district includes land lying partly in and partly out of any county election precinct, the precinct registers may contain the names of all registered voters in the precinct and the election boards at those precincts shall require that a prospective elector execute an affidavit stating that the elector is also a qualified elector of the district. For formation elections and elections held pursuant to subsection G of this section, a prospective elector shall execute an affidavit stating that the elector is the owner of land in the proposed district and is a qualified elector of this state or otherwise qualified to vote pursuant to section 48‑3043 and stating the area of land in acres owned by the elector. Election board members may administer oaths or take all affirmations for these purposes. A community facilities district election held pursuant to this article is not subject to title 16, chapter 2, article 3.
C. Except as otherwise provided by this article, the election shall comply with the general election laws of this state, except that the words to appear on the ballots shall be for a formation election "district, yes" and "district, no", for a bond election "bonds, yes" and "bonds, no", for a tax election if no tax is in place "tax, yes" and "tax, no" and for a tax election to change an existing maximum or eliminate an existing tax "tax change, yes" and "tax change, no". The returns of election shall be made to the governing body or, if after formation, to the district board.
D. Within fourteen days after an election, the governing body, or if after formation, the district board, shall meet and canvass the returns, and if a majority of the votes cast at the election is in favor of formation, issuing the bonds, imposing the tax or changing the tax, the governing body or the district board, as appropriate, shall enter that fact on its minutes. The canvass may be continued from time to time. Failure of a majority to vote in favor of the matter submitted does not prejudice the submission of the same or similar matters at a later election.
E. If a person listed on the assessment roll is no longer the owner of land in the district and the name of the successor owner becomes known and is verified by recorded deed or other similar evidence of transfer of ownership, the successor owner is deemed to be the owner for the purposes of this article.
F. Notwithstanding any other provision of this article, if a petition for formation is signed by owners of all of the land in the district described in the petition and is approved by the municipality or county, the municipality or county may waive any or all requirements of posting, publication, mailing, notice, hearing and landowner election. On receipt of such a petition, and after approval by an election of resident electors, if any, the municipality or county shall declare the district formed without being required to comply with the provisions of this article for posting, publication, mailing, notice, hearing or landowner election.
G. Notwithstanding any other provision of this article, if no person has registered to vote within the district within fifty days immediately preceding any scheduled election date, any election required to be held pursuant to this article shall be held with the vote by the owners of land within the district who are qualified electors of this state and other landowners according to section 48‑3043. Each owner has the number of votes or portion of votes equal to the number of acres or portion of acres rounded upward to the nearest one-fifth of an acre owned in the district by that person.
H. For a district that is proposed to be formed by a county, a district may be formed only if a petition for formation is signed by the owners of all of the land in the district that is described in the petition and, only for districts formed before the effective DATE of this amendment to this section, if it is approved by the county. If the district is proposed to be formed in a county island, as defined in section 11-251.12, in existence on the effective date of this amendment to this section September 21, 2006, the petition must be signed by the owners of all of the land in the district that is described in the petition and the district must be approved by the county and by the municipality or all municipalities that form the county island. If the petition is signed by the owners of all of the land in the district, the county may, and for districts formed after the effective date of this amendment to this section shall, waive any or all requirements of posting, publication, mailing, notice, hearing and landowner election. On receipt of such a petition, and after approval by an election of one hundred per cent percent of the resident electors, if any, the county shall declare the district formed without being required to comply with the provisions of this article for posting."
Page 5, strike lines 3 through 9, insert "five members. Three members shall be selected by the governing body, two of whom shall be selected directly by the governing body and one of whom shall be selected by the governing body from a list of at least four persons who are submitted by designation of the persons who each own more than twenty-five acres in the district. The governing body may remove and replace any one or more of these three members selected by the governing body at any time. Two additional members shall be selected by designation of the persons who each own more than twenty-five acres in the district. A director appointed pursuant to this subsection may be a director of more than one district. All directors selected by or submitted by designation of the persons who each own more THAN TWENTY-five acres in the district shall have expertise in one or more of the fields of real estate, engineering, land planning, construction, law or finance or a related field, but these directors shall not include persons who own more than twenty-five acres in the district. Replacement of all appointees shall be as prescribed by this subsection.
D. If a district that is in EXISTENCE on the effective date of this amendment to this section does not contain any qualified electors and has not issued any bonds pursuant to this article, the owners of all of the land in the district may submit a petition to the governing body that requests that the district board consist of five members as prescribed in subsection C of this section. WITHIN ninety days after receipt of the petition, the governing body shall vote to approve or disapprove the petition."
Page 5, after line 18, insert:
"Sec. 6. Section 48-715, Arizona Revised Statutes, is amended to read:
48-715. Project approval
Before constructing or acquiring any public infrastructure, the district board shall cause a study of the feasibility and benefits of the project to that shall be prepared by engineers and other qualified persons, which and that shall include a description of the public infrastructure to be constructed or acquired and all other information useful to understand the project, a map showing, in general, the location of the project, an estimate of the cost to construct, acquire, operate and maintain the project, an estimated schedule for completion of the project, a map or description of the area to be benefited by the project, and a plan for financing the project. Within sixty days after receiving the report, the board shall hold a public hearing on the report and provide notice of the hearing by publication not less than ten days in advance in the official newspaper of the municipality or county or, if none in the municipality, a newspaper of general circulation in the county and by mail to the governing body of the municipality. Within sixty days after the hearing, the district board may reject, amend or approve the report. If the report is amended substantially a new hearing shall be held within sixty days AFTER the date the amended report is received and before approval. If the report is approved, the district board shall adopt a resolution of intent which that identifies the public infrastructure of the project, the areas benefited, the expected method of financing, including the nature and timing of the issuance of bonds, if any, and an appropriate system of providing revenues to operate and maintain the project.
Sec. 7. Section 48-719, Arizona Revised Statutes, is amended to read:
48-719. General obligation bonds; tax levy
A. At any time after the hearing on formation of the district, the district board, or, if before formation, the governing body, may from time to time order and call a general obligation bond election to submit to the qualified electors of the district or to those persons who are qualified to vote pursuant to section 48‑707, subsection G the question of authorizing the district board to issue general obligation bonds of the district to provide monies for any public infrastructure purposes consistent with the general plan. The election may be held in conjunction with the formation election.
B. On presentation of a petition signed by the owners of at least TWENTY-five percent of the land area included in the district, the district board, or, if before formation, the governing body, shall order and call a general obligation bond election to submit to the qualified electors of the district or to those persons who are qualified to vote pursuant to section 48‑707, subsection G the question of authorizing the district board to issue general obligation bonds of the district to provide monies for any public infrastructure purposes consistent with the general plan. The election may be held in conjunction with the formation election.
B. C. If general obligation bonds are approved at an election, the district board may issue and sell general obligation bonds of the district.
C. D. If the bonds are to be sold in a public offering, no bonds may be issued by the district unless the bonds receive one of the four highest investment grade ratings by a nationally recognized bond rating agency.
D. E. The district may issue and sell refunding bonds to refund any general obligation bonds of the district. If general obligation bonds are issued to refund any general obligation bonds of the district no election on the issuance of such refunding bonds is required.
E. F. After the bonds are issued, the district board shall enter in its minutes a record of the bonds sold and their numbers and dates and shall annually levy and cause an ad valorem tax to be collected, at the same time and in the same manner as other taxes are levied and collected on all taxable property in the district, sufficient, together with any monies from the sources described in section 48‑717, to pay debt service on the bonds when due. Monies derived from the levy of the tax provided in this section when collected constitute funds to pay the debt service on the bonds and shall be kept separately from other funds of the district.
Sec. 8. Title 48, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 48-726, to read:
48-726. Public infrastructure; acceptance and maintenance
Unless otherwise provided for in a development agreement adopted pursuant to section 9-500.05 or 11-1101, within one hundred eighty days after completion of any discrete segment of public infrastructure in the district and on submittal of an engineer's certification that the discrete segment of public infrastructure has been constructed according to the plans and specifications required by the governing body, the governing body shall adopt and accept the discrete segment of public infrastructure for ownership, operation and maintenance by the governing body."
Amend title to conform