HB2568 - 522R

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

Section 1. Section 48-701, Arizona Revised Statutes, is amended to read:

START_STATUTE48-701. Definitions

In this article, unless the context otherwise requires:

1. "Clerk" includes any person or official who performs the duties of clerk of the municipality or county or any person appointed by the district board to be the district clerk pursuant to section 48‑711, subsection D.

2. "County" means a county that forms a community facilities district pursuant to this article in an unincorporated area or in an incorporated area with the municipality's consent.

3. "Debt service" means the principal of, interest on and premium, if any, on the bonds, when due, whether at maturity or prior redemption and fees and costs of registrars, trustees, paying agents or other agents necessary to handle the bonds and the costs of credit enhancement or liquidity support.

4. "District" means a tax levying community facilities district formed pursuant to this article by a municipality or formed pursuant to this article by a county in an unincorporated area or in an incorporated area with the municipality's consent.

5. "District board" means the board of directors of the district, which shall be comprised consist of the members of the governing body of the municipality or county, ex officio, or, at the option of the governing body, five directors appointed by the governing body under this article pursuant to section 48-711.

6. "Enhanced municipal services" means public service provided by a county or municipality within the district at a higher level or to a greater degree than provided in the remainder of the county or municipality, including such services as public safety, fire protection, street or sidewalk cleaning or landscape maintenance in public areas.

7. "General obligation bond" means a bond that is issued pursuant to section 48‑719 and that is secured by a pledge of ad valorem taxes levied by the district.

8. "General plan" means the general plan described in section 48‑702, subsection B, as the plan may be amended.

9. "Governing body" means the body or board which that by law is constituted as the legislative department of the municipality or county.

10. "Municipality" means an incorporated city or town.

11. "Owner" means the person who, on the day the action, election or proceeding is begun or held, appears to be the owner of real property as shown on the property tax assessment roll.

12. "Public infrastructure" means all improvements listed in this paragraph that will result in a beneficial use principally to land within the geographical limits of the district and may include a district's share of any improvements listed in this paragraph if the district board determines such share is proportionate to the beneficial use of such improvements to land within the geographical limits of the district, improvements within or outside the geographical limits of the district, necessary or incidental work, whether newly constructed, renovated or existing, and all necessary or desirable appurtenances. For the purposes of this paragraph, adoption by the district board of a resolution of intent pursuant to section 48‑715 shall conclusively establish that the improvements or, if applicable, share of the improvements that are the subject of the resolution will result in a beneficial use principally to land within the geographical limits of the district. Public infrastructure improvements are:

(a) Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge.

(b) Drainage and flood control systems, including collection, transport, diversion, storage, detention, retention, dispersal, use and discharge.

(c) Water systems for domestic, industrial, irrigation, municipal or fire protection purposes, including production, collection, storage, treatment, transport, delivery, connection and dispersal, but not including facilities for agricultural irrigation purposes unless for the repair or replacement of existing facilities when required by other improvements permitted by this article.

(d) Highways, streets, roadways and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking.

(e) Areas for pedestrian, equestrian, bicycle or other nonmotor vehicle use for travel, ingress, egress and parking.

(f) Pedestrian malls, parks, recreational facilities other than stadiums, and open space areas for the use of members of the public for entertainment, assembly and recreation.

(g) Landscaping, including earthworks, structures, lakes and other water features, plants, trees and related water delivery systems.

(h) Public buildings, public safety facilities and fire protection facilities.

(i) Lighting systems.

(j) Traffic control systems and devices, including signals, controls, markings and signage.

(k) Equipment, vehicles, furnishings and other personalty related to the items listed in this paragraph.

13. "Public infrastructure purpose" means:

(a) Planning, design, engineering, construction, acquisition or installation of public infrastructure.

(b) Acquiring, converting, renovating or improving existing facilities for public infrastructure.

(d) Establishing, maintaining and replenishing reserves from any source described in section 48‑717 or from any other source in order to secure payment of debt service on bonds.

(e) Notwithstanding section 48‑589, funding and paying from bond proceeds interest accruing on bonds for a period of not to exceed three years from their date of issuance.

(f) Providing for the timely payment of debt service on bonds or other indebtedness of the district.

(g) Refinancing any matured or unmatured bonds with new bonds.

(h) Incurring expenses of the district incident to and reasonably necessary to carry out the purposes specified in this paragraph.

14. "Revenue bonds" means those bonds that are issued pursuant to section 48‑720 and that are secured by a pledge of revenues of the district or revenues collected by the county or municipality and returned to the district.

15. "Treasurer" includes any person or official who performs the duties of treasurer of the municipality or county or any person appointed by the district board as the district treasurer pursuant to section 48‑711, subsection D. END_STATUTE

Sec. 2. Section 48-702, Arizona Revised Statutes, is amended to read:

START_STATUTE48-702. Resolution declaring intention to form district

A. If the public convenience and necessity require, and on presentation of a petition signed by the owners of at least twenty‑five per cent percent of the land area proposed to be included in the district, the governing body may adopt a resolution declaring its intention to form a community facilities district to that shall include contiguous or noncontiguous property which shall be that is wholly within the corporate boundaries of the municipality or county. 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, on presentation of a petition signed by the owners of all of the land area proposed to be included in the district, the governing body shall adopt a resolution declaring its intention to form a community facilities district to include contiguous or noncontiguous property that is wholly within the corporate boundaries of the municipality or county. The resolution shall state the following:

1. The area or areas to be included in the district.

2. The purposes for which the district is to be formed.

3. That a general plan for the district is on file with the clerk.

4. The date, time and place of the hearing to be held on the formation of the district.

5. The place where written objections to the formation of the district may be filed.

6. That formation of the district may result in the levy of taxes to pay the costs of improvements constructed by the district and for their operation and maintenance.

7. A reference to this article.

8. Whether the district will be governed by a district board comprised that consists 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 to be included in the district is larger than six hundred acres, five directors appointed by the governing body pursuant to section 48‑711, subsection C.

B. Before adopting a resolution under this section, a general plan for the district shall be filed with the clerk setting out a general description of the public infrastructure improvements for which the district is proposed to be formed and the general areas to be improved. END_STATUTE

Sec. 3. Section 48-711, Arizona Revised Statutes, is amended to read:

START_STATUTE48-711. Records; board of directors; open meetings

A. The district shall keep the following records which that shall be open to public inspection:

1. Minutes of all meetings of the district board.

2. All resolutions.

3. Accounts showing all monies received and disbursed.

4. The annual budget.

5. All other records required to be maintained by law.

B. If the resolution ordering formation of the district provides that the district will be governed by a district board appointed by the governing body, each appointed director shall serve for a term of six years, except that two directors initially appointed by the governing body in the resolution shall serve for a term of four years. The resolution shall state which directors shall serve four year terms and which shall serve six year terms. On the expiration of the term of an appointed director, the governing body shall appoint a person to fill the position and, for districts formed on or after the effective date of this amendment to this section, shall do so in a manner that complies with this section and that maintains the composition of the board as prescribed by subsection C of this section. If a vacancy occurs on the district board because of death, resignation or inability of the director to discharge the duties of director, the vacancy shall be filled by appointment made by the governing body and, for districts formed on or after the effective date of this amendment to this section, in a manner that complies with this section and that maintains the composition of the board as prescribed by subsection C of this section. A director appointed by the governing body after a vacancy shall hold office for the remainder of the unexpired term until his that director's successor is appointed. An appointed A director appointed pursuant to this subsection in a district formed before the effective date of this amendment to this section shall not be a landowner owning more than forty acres in the district, an elected official of the municipality or county or an employee or agent of the landowner or municipality or county but may be a director of more than one district.

C. Beginning with districts formed on or after the effective date of this amendment to this section, The appointed district board shall consist of two members who are selected by the governing body, two members who are selected by designation of the persons who each own more than twenty-five acres in the district and one member who is 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. A director appointed pursuant to this subsection may be a director of more than one district.

D. The members of the governing body of the municipality or county district are not eligible to receive compensation for their services as members of the district board.

C. E. The board of directors shall comply with title 38, chapter 3, article 3.1 as a separate political subdivision.

D. F. The district manager, clerk and district treasurer shall be the manager, clerk of the municipality or county and the treasurer of the municipality or county, respectively, unless the district board appoints a district manager, clerk and district treasurer.END_STATUTE