HB2469 - 541R

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

Section 1. Section 48-805, Arizona Revised Statutes, is amended to read:

START_STATUTE48-805. Fire district; powers and duties; definition

A. A fire district, through its board, shall:

1. Hold public meetings at least once each calendar month unless a board consists of three members and the fire district levies less than five hundred thousand dollars $500,000 annually then the board shall meet in July and at least every two months thereafter. A board for a district organized pursuant to article 3 of this chapter shall hold public meetings at least every two months.

2. Determine the compensation payable to district personnel.

3. Require probationary ALL current and prospective employees in a paid sworn firefighter position, a reserve firefighter position or a volunteer firefighter position and volunteers to submit a full set of fingerprints to the fire district, or to the joint powers authority, FIRE AUTHORITY, FIRE AND MEDICAL AUTHORITY OR FIRE AND AMBULANCE AUTHORITY that is formed with that fire district pursuant to section 48‑805.01. The fire district, or joint powers authority, FIRE AUTHORITY, FIRE AND MEDICAL AUTHORITY OR FIRE AND AMBULANCE AUTHORITY that is formed pursuant to section 48‑805.01 shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

B. A fire district, through its board, may:

1. Employ any personnel and provide services deemed necessary for fire protection, for preservation of life and for carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2, but a member of a district board shall not be an employee of the district. The merger of two or more fire districts pursuant to section 48‑820 or the consolidation with one or more fire districts pursuant to section 48‑822 shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2.

2. Construct, purchase, lease, lease‑purchase or otherwise acquire the following or any interest therein in the following and, in connection with the construction or other acquisition, purchase, lease, lease‑purchase or grant a lien on any or all of its present or future property, including:

(a) Apparatus, water and rescue equipment, including ambulances and equipment related to any of the foregoing.

(b) Land, buildings, equipment and furnishings to house equipment and personnel necessary or appropriate to carry out its purposes.

3. Finance the acquisition of property as provided in this section and costs incurred in connection with the issuance of bonds as provided in section 48‑806. Bonds shall not be issued without the consent of a majority of the electors of the district voting at an election held for that purpose. For the purposes of an election held under this paragraph, all persons who are eligible to vote in fire district elections under section 48‑802 are eligible to vote.

4. Enforce the fire code adopted by the district, if any, and assist the office of the state fire marshal in the enforcement of fire protection standards of this state within the fire district including enforcement of a nationally recognized fire code if expressly authorized by the office of the state fire marshal.

5. After the approval of the qualified electors of the fire district voting at a regular district election or at a special election called for that purpose by the district board, as appropriate, or at any election held in the county that encompasses the fire district, adopt the _______ fire code, which is a nationally recognized fire code approved by the state fire marshal. The words appearing on the ballots shall be "should __________ fire district adopt the __________ fire code, which is a nationally recognized fire code approved by the state fire marshal‑‑yes", "should ____________ fire district adopt the __________ fire code, which is a nationally recognized fire code approved by the office of the state fire marshal‑‑no". The code shall be enforced by the county attorney in the same manner as any other law or ordinance of the county. Any inspection or enforcement costs are the responsibility of the fire district involved. The district shall keep the code on file, which shall be open to public inspection for a period of thirty days before any election for the purpose of adopting a fire code. Copies of the order of election shall be posted in three public places in the district at least twenty days before the date of the election, and if a newspaper is published in the county having a general circulation in the district, the order shall be published in the newspaper at least once a week during each of the three calendar weeks preceding the calendar week of the election.

6. Amend or revise the adopted fire code, including replacement of the adopted fire code with an alternative nationally recognized fire code, with the approval of the office of the state fire marshal and after a hearing held pursuant to posted and published notice as prescribed by section 48‑805.02, subsection A. The district shall keep three copies of the adopted code, amendments and revisions on file for public inspection.

7. Enter into an agreement procuring the services of an organized private fire protection company or a fire department of a neighboring city, town, district or settlement without impairing the fire district's powers.

8. Contract with a city or town for fire protection services for all or part of the city or town area until the city or town elects to provide regular fire department services to the area.

9. Retain a certified public accountant to perform an annual audit of district books.

10. Retain private legal counsel.

11. Accept gifts, contributions, bequests and grants and comply with any requirements of those gifts, contributions, bequests and grants that are not inconsistent with this article.

12. Appropriate and expend annually monies as are necessary for the purpose of fire districts belonging to and paying dues in the Arizona fire district association and other professional affiliations or entities.

13. Adopt resolutions establishing fee schedules both within and outside of the jurisdictional boundaries of the district for providing fire protection services and services for the preservation of life, including emergency fire and emergency medical services, plan reviews, standby charges, fire cause determination, users' fees or facilities benefit assessments or any other fee schedule that may be required.

14. With the approval of two of the three members of a three‑member board, four of the five members of a five‑member board or five of the seven members of a seven-member board, change the district's name and on so doing shall give written notice to the board of supervisors of the change. The governing board of a fire district may place a question on the general election ballot as to whether the fire district shall change its name.

15. Require all employees to submit a full set of fingerprints as prescribed by subsection A, paragraph 3 of this section.

16. Enter into intergovernmental agreements or contracts as follows:

(a) Enter into an intergovernmental agreement with another political subdivision for technical or administrative services or to provide fire services to the property owned by the political subdivision, including property that is outside the district boundary.

(b) Enter into a contract with individuals to provide technical or administrative services.

(c) Enter into a contract with individuals to provide fire protection services or emergency medical services, or both, to the extent not regulated by title 36, chapter 21.1 to property owned by the individual located outside the district boundaries if the individual's property is not located in a county island as defined in section 11‑251.12 and at least one of the following apply:

(i) The existing fire service provider where the individual's property is located has issued a notice to the individual that the provider plans to discontinue service.

(ii) Fire service is not available to the individual's property.

(iii) Fire service is offered pursuant to a contract or subscription and the individual has not obtained service for a period of twenty‑four months before the date of the contract with the district.

(d) Enter into a contract with individuals to provide fire services to property owned by the individual located outside the district boundaries, where the individual's property is located in a county island as defined in section 11‑251.12, if both of the following apply:

(i) The existing fire service provider where the individual's property is located has issued a notice to the residents of the county island and the individual that the provider plans to discontinue or substantially reduce service.

(ii) The district offers contracts to all residents and property owners of the county island who will be affected by the discontinuance or substantial reduction in service by the current fire service provider.

(e) For the purposes of subdivision (a), (b), (c) or (d) of this paragraph, a district may contract with any public or private fire service provider to provide some or all of the contractual services the district is contracting to deliver.

(f) Any contract entered into pursuant to subdivisions (b), (c) and (d) of this paragraph shall include a provision setting forth the cost of service and performance criteria.

17. Sell or otherwise dispose of any real property, facilities or equipment if the district board determines the real property, facilities or equipment to be surplus.

C. A fire district may not administratively add or annex additional property or delete property or otherwise modify its boundaries except in a merger or consolidation pursuant to this chapter or in a boundary change made pursuant to section 48‑262. This subsection does not apply to a district organized pursuant to article 3 of this chapter.

D. The chairman and clerk of the district board or their respective designees, as applicable, shall draw warrants, substitute checks or electronic funds transfers on the county treasurer for money required to operate the district in accordance with the budget and, as so drawn, the warrants, substitute checks or electronic funds transfers shall be sufficient to authorize the county treasurer to pay from the fire district fund.

E. For any fire district that designates one or more board members to have access to the financial books and records of the district, those board members are authorized by law to have full access to those financial books and records.

F. The district board may assess and levy a secondary property tax pursuant to this article to pay for the costs of fire protection services or emergency medical services except for services regulated pursuant to title 36, chapter 21.1.

G. The county attorney may advise and represent the district if in the county attorney's judgment the advice and representation are appropriate and not in conflict with the county attorney's duties under section 11‑532. If the county attorney is unable to advise and represent the district due to a conflict of interest, the district may retain private legal counsel or may request the attorney general to represent it, or both.

H. If a district's fire code requires the use of a fire watch, an employee who works at the building in which a fire watch is required may serve as the fire watch. A person who is designated as a fire watch shall be equipped with the means to contact the local fire department, and the person's only duty while keeping watch for fires shall be to perform constant patrols of the protected premises. The district shall provide the fire watch with printed instructions from the office of the state fire marshal and may provide a free training session before the person's deployment as the fire watch begins.

I. For the purposes of this section, "fire watch" means a person who is stationed in a building or in a place relative to a building to observe the building and its openings when the fire protection system for the building is temporarily nonoperational or absent. END_STATUTE

Sec. 2. Section 48-805.01, Arizona Revised Statutes, is amended to read:

START_STATUTE48-805.01. Separate legal entities; joint exercise of powers

A. If public agencies identified in subsection B of this section form a separate legal entity pursuant to section 11‑952, the entity has the powers common to the contracting powers specified in the agreement and may jointly exercise powers held in common by the contracting parties in a manner or according to the method provided in the agreement. Notwithstanding title 38, an officer or elected member of the governing body of a party to the agreement may also act in the capacity of a member of the governing body of the separate legal entity. In its own name and subject to the agreement, the separate legal entity, subject to existing applicable law, may:

1. Make and enter into contracts, including contracts, leases or other transactions with one or more of the parties to the agreement forming the separate legal entity.

2. Employ agents and employees.

3. Acquire, hold or dispose of property.

4. Acquire, construct, manage, maintain and operate buildings, works, infrastructure, apparatus, equipment and improvements.

5. Incur debts, liabilities and obligations.

6. Sue and be sued.

7. Require all current and prospective employees and volunteers to submit a full set of fingerprints to the joint powers authority, FIRE AUTHORITY, FIRE AND MEDICAL AUTHORITY OR FIRE AND AMBULANCE AUTHORITY. THE JOINT POWERS AUTHORITY, FIRE AUTHORITY, FIRE AND MEDICAL AUTHORITY OR FIRE AND AMBULANCE AUTHORITY shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

B. Cities, towns, counties and fire districts established pursuant to this title may form a separate legal entity pursuant to section 11‑952, for the purposes of jointly exercising powers held in common by the contracting parties. Common powers of the contracting parties when otherwise authorized pursuant to state law may include fire protection, the preservation of life, providing emergency medical services, and carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2. Any separate legal entity formed pursuant to this section shall include a fire district. The intergovernmental agreement must state the intent to form a separate legal entity pursuant to this subsection. The governing body of a separate legal entity formed pursuant to this subsection shall be composed of officials elected to one or more of the governing bodies of the political subdivisions that are parties to the agreement, or their designees. A separate legal entity identified pursuant to this subsection:

1. Is a political subdivision of this state having:

(a) The governmental and proprietary powers that are common to the contracting parties specified in the agreement and those powers provided for in section 11‑952 and this section.

(b) The rights and immunities of the parties that are granted by the constitution and statutes of this state, including immunity of its property from taxation.

2. May separately contract for an undertaking with any two or more of the parties or other public agencies or other entities. Limitations on the exercise of common powers shall be applicable only to the parties to the agreement participating in the undertaking.

3. May establish any governance and board structure necessary to carry out its powers and duties subject to the requirements of section 11‑952 and this section.

4. If specified in the agreement, is the authority that has jurisdiction for the purpose of fire code administration and enforcement for the parties to the agreement.

5. Shall be provided a .gov identifier for the website used to carry out its powers and duties by the applicable governmental issuer.

6. In addition to other powers provided for in the agreement by a vote of its governing body, may incur obligations payable from the entity's revenues, to pay the costs and expenses of acquiring or constructing any structures, facilities or equipment necessary to effectuate the purposes of the agreement subject to the following conditions and requirements:

(a) The parties to the agreement, with the approval of each participating entity's voters, may issue general obligation bonds for the purpose of funding the costs and expenses of acquiring or constructing any structures, facilities or equipment necessary to effectuate the purposes of the agreement. Each of the participating party's general obligation bonding authority is limited to that of each party's enabling legislation.

(b) The general obligation bonds are payable from the taxes or assessments paid to, or to be levied or collected by, the entity or the political subdivisions that are parties to the agreement that forms the entity.

(c) The general obligation bonds are limited to an amount as authorized by the qualified electors that are parties to the agreement and are subject to the requirements of sections 35‑431 and 48‑806.

C. For the purposes of subsection B of this section, "undertaking":

1. Means one or more of the following:

(a) Purchasing, constructing, leasing or acquiring any real or personal property, works, apparatus, equipment or facilities that the political subdivisions that formed the entity are authorized by law to purchase, construct, lease or otherwise acquire.

(b) Improving, reconstructing, extending or adding to any real or personal property, works, apparatus, equipment or facilities owned or operated by the entity.

(c) Any program of development involving real or personal property, works, apparatus, equipment or facilities that the entity is authorized by law to purchase, construct, lease or otherwise acquire or the improvement, reconstruction, extension or addition to the program.

(d) Providing fire protection, for the preservation of life, for providing emergency medical services and for carrying out its other powers and duties, including providing ambulance transportation services when authorized to do so pursuant to title 36, chapter 21.1, article 2 and purchasing, constructing, leasing or acquiring, or the extension or addition of, works, apparatus, equipment or facilities designed to serve areas or territories already being served by any of the parties to the agreement.

2. Does not include the acquisition by eminent domain of existing works or facilities of a political subdivision.

D. The exercise of joint powers does not create any expansion of a certificate of necessity issued pursuant to title 36, chapter 21.1, article 2 or the operating rights as defined by the certificate of necessity held by one or more of the entities entering into a joint powers authority. The operating rights remain the same as those rights granted to the certificate of necessity holder at the date of the establishment of the joint powers authority unless modified pursuant to title 36, chapter 21.1, article 2.

E. A fire district board that participates in an agreement to form a separate legal entity pursuant to this section:

1. Is not subject to the public meeting requirements provided in section 48‑805.

2. Shall hold a public meeting at least once every ninety days or as necessary to carry out its powers and duties.

3. If a cumulative financial report review occurs at least once every ninety days, is considered compliant with section 48‑807, subsection P.

F. A municipality that participates in an agreement to form a separate legal entity pursuant to this section is not subject to a limit on the duration of the agreement. END_STATUTE

Sec. 3. Section 48-820, Arizona Revised Statutes, is amended to read:

START_STATUTE48-820. Election to merge fire districts; notice; hearing; approval; joint meeting; merged district board

A. Except as provided in subsection L of this section, the board of supervisors shall make an order calling for an election to decide whether to merge fire districts when a resolution for merger from each district is submitted to the board. The board of supervisors shall not make an order calling for an election to merge the same fire districts more frequently than once every two years. Whether or not the districts are merged, the fire districts are each liable to reimburse the counties for the expenses of the election, including the cost of mailing any notices required pursuant to this section. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located as of the date of the adoption of the earliest resolution that called for the merger. The words appearing on the ballot shall be "(insert fire districts' names) merge as a fire district‑‑yes" and "(insert fire districts' names) merge as fire district‑‑no."

B. Except for a district organized pursuant to article 3 of this chapter, at least six days but not more than twenty days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of merging the fire districts, the board shall enter that fact on its minutes.

C. For a district organized pursuant to article 3 of this chapter, within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of merging the fire districts, the board shall enter the fact on its minutes.

D. Except as prescribed in subsection E of this section, two or more fire districts may merge if the governing body of each affected fire district, by a majority vote of the members of each governing body, adopts a resolution declaring that a merger be considered and a public hearing be held to determine if a merger would be in the best interests of the district and would promote public health, comfort, convenience, necessity or welfare. After each district adopts such a resolution, the governing body of each district by first class mail shall send notice of the day, hour and place of a hearing on the proposed merger to each owner of taxable property within the boundaries of the district. The notice shall state the purpose of the hearing and shall describe where information on the proposed merger may be obtained and reviewed. The information on the proposed merger shall be posted prominently on each affected fire district's website. The information provided by the affected districts and posted to each affected district's WEBSITE shall include the name and a general description of the boundaries of each district proposed to be merged and a detailed, accurate general map of the area to be included in the merger. The notice information posted to the WEBSITE of each affected district also shall contain include an estimate of the assessed value of the merged district as of the date of the adoption of the earliest resolution that called for the merger as prescribed in subsection A of this section, the estimated change in property tax liability for a typical resident of the proposed merged district and a list of the benefits and injuries that may result from the proposed merged district. No New territory may not be included as a result of the merger.

E. A noncontiguous county island fire district formed pursuant to section 48‑851 shall not merge with a fire district formed pursuant to section 48‑261.

F. The clerk of the governing body of each affected district shall post notice in at least three conspicuous public places in the district and shall also publish notice twice in a newspaper of general circulation in the county in which the district is located, at least ten days before the public hearing. The clerk of each governing body affected by the proposed merger shall also mail notice and a copy of the resolution in support of considering the merger to the chairman of the board of supervisors of the county or counties in which the affected districts are located. The chairman of the board of supervisors shall order a review of the proposed merger and shall may submit written comments to the governing body of each fire district located in that county within ten days after receipt of the notice.

G. At the hearing prescribed in subsection D of this section, each governing body of the district shall consider the comments of the board of supervisors, hear those persons who appear for or against the proposed merger and determine whether the proposed merger will promote public safety, health, comfort, convenience, necessity or welfare. If, after the public hearing each of the governing bodies of the districts affected by the proposed merger adopt a resolution by a majority vote declaring that the merger will promote public safety, health, comfort, convenience, necessity or welfare, each of the governing bodies of the districts affected by the proposed merger shall submit to the board of supervisors the resolutions that call for an election.

H. Before considering any resolution of merger pursuant to this section, the governing body of each affected district shall obtain written consent to the merger from any single taxpayer residing within each of the affected districts who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district as of the date the district's resolution is submitted to the board of supervisors. If written consent from the taxpayers prescribed by this subsection is not obtained, subsections A and B of this section apply, and the merger may only be accomplished by an election held by the affected district that was unable to obtain the written consent. The other affected districts may pursue merger by unanimous consent and, if one or more of those districts fails to obtain unanimous consent, any remaining affected districts that have obtained unanimous consent or received voter approval may proceed with the merger unless the governing body of one of those districts withdraws from the merger. If one of the districts withdraws, the remaining affected districts shall revise the information prescribed by subsection D of this section and post the revised information as prescribed in subsection F of this section. If one or any of the affected districts does not have a single taxpayer residing in the district who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district, this subsection does not apply to that district and written consent is not required for that district.

I. If the merger is approved as provided by subsection B, or L or N of this section, within thirty days immediately after the approval, the governing body of the affected district with the largest population net assessed valuation as of the date of the adoption of the earliest resolution that calls for the merger as PRESCRIBED in subsection A of this section shall call a joint meeting of the governing bodies of all of the affected districts. At the joint meeting, a majority of the members of the governing body of each affected district constitutes a quorum for the purpose of transacting business. The members of the governing body of each affected district shall by majority vote of each separate governing body appoint a total of five persons from those currently serving on the governing bodies of the districts who shall complete their regular terms of office, except that not more than three of the persons appointed may serve terms that end in the same year. Not more than three members shall be appointed from the same fire district board. If the merger affects only two fire districts, the fire district with the largest net assessed valuation shall appoint three MEMBERS to the governing body of the newly merged DISTRICT and the district with the lesser net assessed valuation shall appoint two members. Subsequent terms of office for district board members shall be filled by election of board members who shall be qualified electors of the merged district.

J. The appointed governing body shall immediately meet and organize itself and elect from its members a chairman and a clerk. The appointed governing body shall immediately have the powers and duties prescribed by law for governance and operation of the newly merged district The appointed board by resolution shall declare the districts merged and each affected district joined and the name of the newly merged fire district. The appointed governing body may take any action necessary to prevent INTERRUPTION of fire PROTECTION and emergency medical services delivery. The merged districts may be temporarily operated separately by the APPOINTED governing body to prevent service delivery INTERRUPTION and for the PURPOSEs of transition of personnel and transferring assets and liabilities. The resolution and the names of the new board members for the newly organized district shall be sent to the board of supervisors, and the districts are deemed legally merged effective thirty days after immediately on the adoption of the resolution. Any challenge to the merger must be filed within the thirty-day period after adoption of the resolution, and on filing, the merger is stayed until the expiration of any time for appeal after the issuance of a final order denying the challenge. If the newly merged district is authorized to operate an ambulance service pursuant to title 36, chapter 21.1, article 2, or if the newly merged district includes one or more districts that participated in a joint powers authority pursuant to section 48-805.01 and is authorized to operate an AMBULANCE service pursuant to TITLE 36, chapter 21.1, article 2, the name of the ambulance service shall be changed administratively by the director of the department of health services to the name of the newly merged district and a hearing on the matter is not required pursuant to section 36‑2234.

K. The merger of two or more fire districts pursuant to this section or the consolidation with one or more fire districts pursuant to section 48‑822 shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2.

L. If the requirements of subsection H of this section are met and the governing body votes required by subsection G of this section are unanimous, the following apply:

1. The governing bodies of each district may choose to merge by unanimous resolution without an election and subsections A and B of this section do not apply.

2. The governing bodies of each district may choose to hold an election on the question of merger and subsections A and B of this section apply.

M. If the merger is approved pursuant to subsection B, or L or N of this section, the governing body of the newly merged district may adopt a nationally recognized fire code with the approval of the office of the state fire marshal and after a hearing held pursuant to posted and published notice as prescribed by section 48‑805.02, subsection A the most recent edition of the fire code adopted by the affected districts shall be the fire code of the newly merged district. The district shall keep a copy of the adopted fire code on file for public inspection.

N. After the hearing prescribed by subsection D of this section and on compliance with subsection H of this section, the governing bodies of the AFFECTED districts may approve the merger by a MAJORITY vote of each affected district's governing body and subsections A and B OF this section do not apply if either of the following conditions is met:

1. an affected DISTRICT has obtained a study of merger, consolidation or joint operating alternatives as required by section 48‑805.02, subsection D, paragraph 3.

2. An affected district's tax rate is at or above the MAXIMUM allowable tax rate PRESCRIBED in section 48-807.END_STATUTE

Sec. 4. Section 48-821, Arizona Revised Statutes, is amended to read:

START_STATUTE48-821. Disposition of assets on merger of fire districts

A. If fire districts established under this article are merged, all the equipment, assets and liabilities of the affected districts shall be transferred to the fire district created by the merger.

B. All assets and liabilities of whatever description and all books and records belonging to the fire fighters' relief and pension fund of merged fire districts shall be transferred to and become the property of the fire fighters' relief and pension fund of the fire district created by the merger.

C. On merger of fire districts pursuant to section 48‑820, the fire districts that were merged are dissolved by operation of law and no longer exist and the newly organized and merged fire district is a separate and new legal entity by operation of law. For purposes of TRANSITION, The districts affected by the merger may CONTINUE to operate temporarily under the AUTHORITY of the appointed governing body of the new merged district. END_STATUTE

Sec. 5. Section 48-822, Arizona Revised Statutes, is amended to read:

START_STATUTE48-822. Election to consolidate fire districts; resolution; hearing

A. Except as provided in subsection F of this section, the board of supervisors shall make an order calling for an election to decide whether to consolidate two or more fire districts when a resolution for consolidation of fire districts from each district is submitted to the board of supervisors. The board of supervisors shall not make an order calling for an election to consolidate the same fire districts more frequently than once every two years. Whether or not the districts are consolidated, the participating fire districts are each liable to reimburse the counties for the expenses of the election, including the cost of mailing any notices. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located as of the date of the adoption of the earliest resolution that called for the consolidation. The words appearing on the ballot shall be "(insert fire districts' names) consolidate as a fire district-–yes" and "(insert fire districts' names) consolidate as fire district-–no."

B. Within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of consolidating the fire districts, the board shall enter that fact on its minutes.

C. Except as proscribed by subsection D of this section, a fire district may consolidate with one or more other fire districts formed pursuant to section 48‑261 as follows:

1. A resolution requesting the consolidation of a fire district is passed by a majority vote of the governing body requesting consolidation into another fire district. The requesting district shall send by first class mail the notice of request to consolidate districts to the fire district in which the consolidation is requested.

2. On receipt of the resolution requesting consolidation, and on approval by majority vote of the governing body receiving the request, two or more fire districts may consolidate if the governing body of each affected fire district by a majority vote of the members of each governing body adopts a resolution declaring that a consolidation be considered and a public hearing be held to determine if a consolidation would be in the best interest of the districts and would promote the public safety, health, comfort, convenience, necessity or welfare. The governing body of each district that adopts a resolution calling for a public hearing by first class mail shall send notice of the day, hour and place of a hearing on the proposed consolidation to each owner of taxable property within the boundaries of the district. The notice shall state the purpose of the hearing and shall describe where information on the proposed consolidation may be obtained and reviewed. The information on the proposed CONSOLIDATION shall be posted prominently on each affected district's website. The information provided by the affected districts and posted to each affected district's website shall include the name and a general description of the boundaries of each district that is proposed to be consolidated and a detailed, accurate general map of the area to be included in the consolidation. The notice information posted to the website of each affected DISTRICT also shall contain include an estimate of the assessed value of the consolidated district, the estimated change in the property tax liability for a typical resident of the proposed consolidated district and a list of the benefits and injuries that may result from the proposed consolidated district. No New territory may not be included as a result of the consolidation.

3. The clerk of the governing body of each of the fire districts affected by the proposed consolidation shall post notice in at least three conspicuous public places in the district and also shall publish or request to be published notice twice in a newspaper of general circulation in the county in which the district is located at least ten days before the public hearing. Publication by one affected district is sufficient for all affected districts if publication by more than one district would be duplicative. The clerk of each governing body affected by the proposed consolidation shall also mail notice and a copy of the resolution in support of considering consolidation to the chairman of the board of supervisors of the county or counties in which the affected districts are located. The chairman of the board of supervisors shall order a review of the proposed consolidation and shall may submit written comments to the governing body of each fire district located in the county within ten days after receipt of the notice.

4. At the hearing held as prescribed by paragraph 2 of this subsection, the governing body of the district shall consider the comments of the board of supervisors, hear those persons who appear for or against the proposed consolidation and determine whether the proposed consolidation will promote the public safety, health, comfort, convenience, necessity or welfare. If, after the public hearing, each of the governing bodies of the districts affected by the proposed consolidation adopt a resolution by a majority vote that the consolidation will promote the public safety, health, comfort, convenience, necessity or welfare, each of the governing bodies of the districts affected by the proposed consolidation shall submit the resolutions calling for an election to the board of supervisors.

5. If the proposal for consolidation is approved as provided in subsections A and B of this section, the governing body of the district into which consolidation was requested shall by resolution declare the district districts consolidated and each affected district joined. Those persons currently serving as the governing body of the district into which consolidation was requested shall serve as the governing body of the newly consolidated district and complete their regular terms of office. The newly consolidated district governing body shall consist of at least five members who shall immediately have the powers and duties prescribed by law for governance and operation of the newly consolidated requesting district. The DISTRICT requesting consolidation may be temporarily operated by the consolidated district GOVERNING BOARD to prevent service delivery interruption and for the purposes of TRANSITIONING personnel and transferring assets and LIABILITIES. The consolidated district By operation of law is the CONTINUATION of the EXISTING DISTRICT into WHICH CONSOLIDATION was REQUESTED.

6. If the consolidation results in a new district population that is greater than fifty thousand persons, the new governing board may appoint an additional two members to serve until the next general election at which time the newly elected member with the highest number of votes serves a four year term and the other member serves a two year term. Thereafter, the term of office for these two new members is four years.

7. 6. The governing body of the newly consolidated district by resolution shall declare the name of the newly consolidated fire district. If the newly consolidated fire district is authorized to operate an ambulance service pursuant to title 36, chapter 21.1, article 2, the name of the ambulance service shall be changed administratively by the director of the department of health services to the name of the newly consolidated district and a hearing on the matter is not required pursuant to section 36‑2234.

8. 7. If a proposed newly consolidated district would include property located in an incorporated city or town, in addition to the other requirements of this section, the governing body of the district shall approve the creation of the consolidated district only if the governing body of the city or town endorses the creation by ordinance or resolution provide notice to the city or town of the proposed consolidation and shall consider comments of the city or town council CONCERNING the proposed consolidation at the public hearing held as prescribed by PARAGRAPH 2 of this subsection.

9. 8. Before considering any resolution of consolidation pursuant to this section, the governing body of each affected district shall obtain written consent to the consolidation from any single taxpayer residing within each of the affected districts who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district as of the date of the adoption of the earliest resolution that called for the consolidation as prescribed in subsection A of this section. If one of the affected districts does not have a single taxpayer residing in the district who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district, this paragraph does not apply to that district and written consent is not required for that district.

D. A noncontiguous county island fire district formed pursuant to section 48‑851 shall not consolidate with a fire district formed pursuant to section 48‑261.

E. The merger of two or more fire districts pursuant to section 48‑820 or the consolidation with one or more fire districts pursuant to this section shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2.

F. If the requirements of subsection C, paragraph 9 8 of this section are met and the governing body votes required by subsection C, paragraph 4 of this section are unanimous, the following apply:

1. The governing bodies of each or either affected district may choose to consolidate by unanimous resolution without an election and subsections A and B of this section do not apply.

2. The governing bodies of each or either affected district may choose to hold an election on the question of consolidation and subsections A and B of this section apply.

3. If fewer than all of the affected districts choose to hold an election, the proposed consolidation is not effective until approved at the election.

4. Consolidation may not occur unless each affected district approves the consolidation, either by resolution or by election.

G. If the consolidation is approved pursuant to subsection B or F of this section, the adopted fire code of the district into which the consolidation was requested shall apply to the entirety of the newly consolidated district.

H. After the hearing prescribed by subsection C, paragraph 2 of this section and on compliance with subsection C, paragraph 5 of this section, the governing bodies of the AFFECTED districts may CONSOLIDATE by a MAJORITY vote of each affected district's governing body and subsections A and B OF this section do not apply if either of the following conditions is met:

1. an affected DISTRICT has obtained a study of merger, consolidation or joint operating alternatives as required by section 48‑805.02, subsection D, paragraph 3.

2. An affected district's tax rate is at or above the MAXIMUM allowable tax rate PRESCRIBED in section 48-807. END_STATUTE

Sec. 6. Section 48-823, Arizona Revised Statutes, is amended to read:

START_STATUTE48-823. Disposition of assets on consolidation of fire districts

A. If fire districts established under this article are consolidated, all the equipment, assets and liabilities of the affected districts that have requested consolidation shall be transferred to and become the PROPERTY of the consolidated fire district created by the consolidation.

B. All assets and liabilities of whatever description and all books and records belonging to the fire fighters' relief and pension fund of consolidated the fire districts that requested consolidation shall be transferred to and become the property of the fire fighters' relief and pension fund of the fire district created by the consolidation CONSOLIDATED district.

C. On consolidation of fire districts pursuant to section 48‑822, the fire districts that were consolidated into another fire district requested consolidation are dissolved by operation of law and no longer exist and the newly organized and consolidated fire district is a separate and new legal entity by operation of law. The DISTrict that requested consolidation may CONTINUE to operate temporarily under the authority of the CONSOLIDATED district for purposes of transition.END_STATUTE