State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2190: county improvement districts; repayment agreements

PRIME SPONSOR: Representative Mitchell, LD 13

BILL STATUS: House Engrossed

 

Legend: BOS – board of supervisors District – county improvement district WIFA – Water Infrastructure Finance Authority of Arizona Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to WIFA financing for District waterworks.

Provisions

1.       Allows a District to construct or improve waterworks with monies borrowed from or financial assistance provided by WIFA. (Sec. 3)

2.       Permits the District board of directors to order maintenance of waterworks when the public interest or convenience requires. (Sec. 2)

3.       Modifies the definition of waterworks to include drinking water treatment facilities. (Sec. 2)

4.       Makes technical and conforming changes. (Sec. 1-3)

Current Law

A District may be established in an unincorporated area by the county to construct and operate a wastewater treatment facility and other local improvements or acquisitions for the benefit of the District (A.R.S. § 48-902). Establishment requires a petition to the county BOS signed by: 1) a majority of the number of persons owning real property; or 2) the owners of 51% or more of the real property (A.R.S. § 48-903). The District may contract for or provide these services through special assessments, issuing bonds and levying taxes (A.R.S. § 48-902).

A District may construct or improve a wastewater treatment facility, sewer collection system or nonpoint source project with monies borrowed from or financial assistance provided by WIFA. The county improvement district may enter into a financial assistance loan repayment agreement payable from any revenues authorized to be pledged to repay long-term indebtedness. The loan repayment agreement must contain the covenants and conditions WIFA deems proper, including covenants for system operation, rate setting and provisions to take charge and operate the sewer collection system and wastewater treatment system if the loan repayment agreement is not paid in a timely manner and if the district will not be able to cure the default (A.R.S. § 48-909.01).

WIFA may provide financial assistance to political subdivisions, Indian tribes and eligible drinking water facilities for constructing, acquiring or improving wastewater treatment facilities, drinking water facilities, nonpoint source projects or other related water quality facilities and projects (A.R.S. § 49-1203).

 

 

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Fifty-third Legislature                  HB 2190

Second Regular Session                               Version 3: House Engrossed

 

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