SB1307 - 542R

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

Section 1. Section 48-803, Arizona Revised Statutes, is amended to read:

START_STATUTE48-803. District administered by a district board; report

A. In a district that the board of supervisors estimates has a population of fewer less than four thousand inhabitants, the district board may consist of three or five members. In a district that the board of supervisors estimates has a population of four thousand or more inhabitants, the district board shall consist of five members, and for a noncontiguous county island fire district formed pursuant to section 48‑851, the board shall consist of five members. The estimate of population by the board of supervisors is conclusive and shall be based on available census information, school attendance statistics, election or voter registration statistics, estimates provided by state agencies or the county assessor, or other information as deemed appropriate by the board of supervisors. If the board of supervisors determines, at any time prior to one hundred twenty days before the next regular scheduled election for members of a district board, that the population of a fire district administered by a district board consisting of three members exceeds four thousand inhabitants, estimated as provided in this section, the board of supervisors shall order an increase in the number of members of the district board. If the board of supervisors determines at any time prior to one hundred eighty days before the next regularly scheduled election for members of a district board that the population of a fire district administered by a district board that consists of five members exceeds fifty thousand inhabitants as prescribed in this section, the board of supervisors shall inform the district board that it may expand to seven members. Any expansion to seven members shall occur by majority vote of the district board. The increase is effective for the election of the additional members at the next regular election of members of the district board.

B. If a vacancy occurs on the district board other than from expiration of a term, a quorum of the board members shall fill the vacancy by appointment of an interim member and, except for a district formed pursuant to article 3 of this chapter, a quorum of the board members shall fill the vacancy within ninety days after the date the vacancy occurs. Except for a district formed pursuant to article 3 of this chapter, if the quorum of district board members do does not appoint an interim member within that ninety‑day period, the board of supervisors shall appoint an interim member to the district board within sixty days after expiration of the ninety-day period, and if the district is located in more than one county, the board of supervisors of the county in which the majority of the assessed valuation of the district is located shall make the appointment after the expiration of the ninety-day period. If the entire board resigns or for any reason cannot fulfill its duties, or does not have a number of remaining board members sufficient to constitute a quorum of the board, the board of supervisors shall appoint interim district board members to fill the vacancies, or an administrator to administer the district with the same duties and obligations of the elected board to serve until the next election. A majority of the board constitutes a quorum for the transaction of business.

C. On expiration of a board member's term of office, the position is declared vacant unless OTHERWISE filled at a general election or as provided in section 48-802, subsection D, paragraph 4. A vacancy that occurs on expiration of a term of office shall be filled by appointment by a quorum of the district board within ninety days after the first day of the beginning of the new term of office. If the district board is unable to establish a quorum, the vacancy shall be filled by the board of supervisors as prescribed by subsection B of this section.

C. D. Members of the district board shall serve without compensation, but may be reimbursed for actual expenses incurred in performing duties required by law.

D. E. The board of a fire district shall appoint or hire a fire chief. A fire district that contracts for fire and emergency medical services may DESIGNATE the fire chief of the service provider as the fire chief of the fire district.

E. F. The district board shall elect from its members a chairman chairperson and a clerk. Except for a district formed pursuant to article 3 of this chapter, the election of the chairman chairperson and the clerk must occur at the district board meeting that first occurs in the month immediately following each general election.

F. G. For districts formed under article 3 of this chapter, of the members first elected to district boards consisting of three members, the two people receiving the first and second highest number of votes shall be elected to four‑year terms, and the person receiving the third highest number of votes shall be elected to a two‑year term. Of the members first elected to district boards consisting of five members, the three people receiving the first, second and third highest number of votes shall be elected to four‑year terms, and the two people receiving the fourth and fifth highest number of votes shall be elected to two‑year terms. Thereafter, the term of office of each district board member shall be four years from the first day of the month next following such member's election. Of the members elected as additional members to a five-member district board, the person with the highest number of votes is elected to a four-year term and the person with the second highest number of votes is elected to a two‑year term. If a district resolves to increase the governing board to seven members pursuant to subsection A of this section, the governing board may appoint two additional members to serve until the next general election. After the general election at which the two additional members are elected, 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.

G. H. For any fire district that is administered by a three‑member board and that levies taxes in a fiscal year in the amount of five hundred thousand dollars $500,000 or more, the district must be administered by a five‑member board. Beginning with the first general election held after the end of the fiscal year in which the district levied the prescribed amount, the change to a five‑member board must occur as prescribed in this subsection. On levying the prescribed amount, the district may not reorganize as a three‑member board regardless of any subsequent change in the district's levy. For three‑person boards with a single vacancy for an existing board membership position and that are adding two additional members, the three persons with the highest number of votes are elected to a four‑year term of office. For three‑person boards with two vacancies for existing board membership positions and that are adding two additional members, the three persons with the first, second and third highest numbers of votes are elected to four‑year terms of office and the person with the fourth highest number of votes is elected to a two‑year term of office. Thereafter, all terms of office for members of these five-person boards of directors must be four years. This subsection applies to any three-member board that is expanding to a five‑member board, regardless of whether the expansion is the result of the amount of the district's levy. This subsection does not apply to districts formed under article 3 of this chapter.

H. I. Beginning with the 2014 general election and except for a district formed pursuant to article 3 of this chapter, all persons who are elected or appointed to a fire district board and the fire chief who is appointed or hired by the district board shall attend professional development training that is provided by an association of Arizona fire districts. District board members and the fire chief shall complete at least six hours of professional development training, with board members completing their training within one year after the date of the certification of their election and for the fire chief, within one year after the date of hiring. The fire district shall reimburse board members and the fire chief for the reasonable costs of the training. The professional development training must include training on open meetings laws, finance and budget matters and laws relating to fire district governance and other matters that are reasonably necessary for the effective administration of a fire district.

I. J. On or before December 31 of each year, the fire district association that has provided training required pursuant to subsection H I of this section shall submit a report that lists the elected officials and fire chiefs who attended the training to the county board of supervisors for every county in which the fire district operates. The annual report must include at least the following:

1. A compilation of the professional development training delivered by the association pursuant to this section and the names of the fire district board members and fire chiefs who attended training as required by this section.

2. Recommendations regarding improvements to the laws of this state or to administrative actions that are required under the laws of this state pertaining to fire districts.

J. K. For fire district governing board members and fire chiefs who are required to attend professional development training pursuant to subsection H I of this section, a fire district governing board member or fire chief who fails to complete the professional development training within the time prescribed in this section is guilty of nonfeasance in office. Any person may make a formal complaint to the county board of supervisors regarding this failure to comply, and the county board of supervisors may submit the complaint to the county attorney for possible action. The county attorney may take appropriate action to achieve compliance, including filing an action in superior court against a fire district governing board member or a fire chief for failure to comply with the professional development training requirements prescribed in this section. If the court determines that a fire district governing board member or fire chief failed to comply with the professional development training requirements prescribed in this section, the court shall issue an order removing the fire district governing board member from office or the fire chief from employment or appointment with the district. Any vacancy in the office of a fire district governing board as a result of a court order that is issued pursuant to this subsection must be filled in the manner provided by law.END_STATUTE

Sec. 2. Section 48-804, Arizona Revised Statutes, is amended to read:

START_STATUTE48-804. District administered by elected chief and secretary‑treasurer

A. Beginning with the first term of office that commences immediately after the next regular election for that fire district after July 29, 2010, all districts that are administered by an elected chief and secretary-treasurer shall be administered by a three‑member elected board of directors or a five‑member elected board of directors as provided in section 48‑803, subsection A and the positions of elected chief and elected secretary‑treasurer no longer exist for that district and have no legal or administrative authority for and in the district. Persons elected to a three‑member board of directors or a five‑member board of directors pursuant to this subsection shall be designated to serve staggered terms of four years, with the initial terms of office for the three‑member board or five‑member board determined as prescribed in section 48‑803, subsection G H. Thereafter, all terms of office for members of these three-person or five-person boards of directors shall be four years.

B. Beginning July 29, 2010, no new fire district may be established with an elected chief and secretary‑treasurer and no existing fire district may be reorganized into a district with an elected chief and secretary‑treasurer. END_STATUTE

Sec. 3. 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 except as follows:

(a) If a board consists of three members and the fire district levies less than $500,000 annually, then the board shall meet in July and at least every two months thereafter.

(b) 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 all current and prospective employees and volunteers to submit a full set of fingerprints to the fire district, 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, joint powers authority that is formed pursuant to section 48‑805.01, 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. 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 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 as follows: .

(a) For the sale of real property, the board shall obtain an appraisal of the real PROPERTY by an appraiser who is licensed or certified pursuant to TITLE 32, chapter 36. The appraiser shall DETERMINE market value as defined in section 28-7091 for the real property. The board may not accept a bid for the purchase of the real property that is less than seventy-five percent of the appraised market value of the property except that if the property has no market value or a net value as defined in SECTION 28-7095, subsection F of $10,000 or less, the board may value the property by using a market analysis that is based on comparable sales.

(b) NOTWITHSTANDING subdivision (a) of this paragraph, the board may sell or lease any district PROPERTY to any other duly constituted governmental entity, including this state, a city, town or county or any other political subdivision of this state, including a special taxing district, on any terms deemed to be advantageous to the fire district. the board may grant By UNANIMOUS CONSENT an easement on district property for public purposes to a utility as defined in section 40-491.

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 chairperson 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. 4. Section 48-814, Arizona Revised Statutes, is amended to read:

START_STATUTE48-814. Property located outside of fire district territory; reimbursement to fire district for cost of fire and emergency medical services; definition

A. A fire district may provide or assist in providing emergency fire or emergency medical services outside of its own district boundaries if those services are otherwise unavailable and if those services are provided at the request of any law enforcement agency, fire district, fire department or private person, and may receive reimbursement for the costs of providing the emergency services. A fire district may provide ambulance transportation service outside of its own district boundaries only when authorized to do so pursuant to title 36, chapter 21.1, article 2. The person receiving the services, or on whose behalf the services are provided, property owner where the services are provided is liable to the fire district for the costs and these costs constitute a debt of that person and may be collected by the fire district.

B. For the purposes of this section, the costs of providing emergency fire or medical services are those costs set forth in resolutions adopted by the fire district that establish fee schedules for emergency response, standby charges, fees for fire cause determination or any other fees that may be required or appropriate to provide emergency fire and medical services outside of its boundaries.

c. for the purposes of this section, for services provided to property located in a mobile home park as defined in section 33-1409, "property owner" means the owner of the mobile home where the emergency fire or emergency medical services are provided, unless the services are provided in a common area of the mobile home park. 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 or H 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 general map of the area to be included in the consolidation. The information posted to the website of each affected district also shall 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. 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 chairperson of the board of supervisors of the county or counties in which the affected districts are located. The chairman chairperson of the board of supervisors shall order a review of the proposed consolidation and 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 or is approved as PROVIDED in subsection F or H of this section, the governing body of the district into which consolidation was requested shall by resolution declare the 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 consolidated district and complete their regular terms of office. The 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 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 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.

7. If a proposed 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 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.

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 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. On compliance with subsection C, paragraph 8 of this section and 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 48-853, Arizona Revised Statutes, is amended to read:

START_STATUTE48-853. District board; powers and duties; intergovernmental agreements; contract; administration; definition

A. A fire district formed pursuant to this article, through its board shall:

1. Hold public meetings as necessary to carry out its powers and duties but at least once every ninety days.

2. Prepare an annual budget that contains detailed estimated expenditures for each fiscal year and that clearly shows expenses of the district. The budget shall be posted in three public places and published in a newspaper of general circulation in the district at least twenty days before a public hearing at a meeting called by the board to adopt the budget. The budget shall be posted in a prominent location on the official website no not later than seven business days after the estimates of revenues and expenses are tentatively adopted. A complete copy of the approved estimates of revenues and expenses shall be posted in a prominent location on the official website no not later than seven business days after final adoption. Copies of the budget shall also be available to members of the public on written request to the district. Following the public hearing, the district board shall adopt a budget. Both the tentatively adopted estimates of revenues and expenses and the budget finally adopted under this section shall be retained and accessible in a prominent location on the official website for at least sixty months.

3. Maintain a website for the purpose of providing access to public records. The district shall post permanent public records to its website.

4. Maintain and store all permanent public records in an electronic media or digital imaging format according to standards for the storage of permanent public records established by the director of the Arizona state library, archives and public records. The director of the Arizona state library, archives and public records shall approve an acceptable electronic media or digital imaging format for the district. The county in which the district is located shall maintain an official copy of the permanent public records of the district. The copy of the permanent public records shall be provided to the county by the district annually no later than ninety days after the end of the fiscal year.

5. Appoint the fire chief of the fire service provider selected pursuant to paragraph 9 of this subsection, either public or private, as the fire chief for the district.

6. Adopt the state fire code. of the municipality whose municipal planning area includes the district except that The fire district's authority to conduct inspections shall apply only to commercial and industrial properties and shall not apply to residential properties.

7. Keep three copies of the applicable fire code, amendments and revisions on file for public inspection.

8. Notify the county board of supervisors of the cost of providing fire protection service and emergency medical service for each household or other structure in the district if the district provides service pursuant to paragraph 9, subdivision (a) or (b) of this subsection.

9. Act within sixty days after the formation of the district to do any of the following:

(a) Enter into an intergovernmental agreement with a municipal provider for fire protection services for the district. A municipal provider seeking to enter into an agreement with the district shall make a formal expression of intent to enter into an agreement with the district within twenty‑one days after district formation.

(b) Issue a request for proposals for nonmunicipal private providers of fire protection services for the district. Notwithstanding any other law, municipal annexation shall not be undertaken during the term of any contract entered into between the district and a private fire service provider, except that in the one hundred eighty day period before the end of the contract, the municipality shall notify the residents of the opportunity to annex into the municipality. A resident shall notify the district and the municipality within ninety days before the end of the contract that the resident is annexing into the municipality and shall complete the annexation within ten days after the completion of the contract. If no district residents notify the municipality that the resident is annexing, the district may renew the contract automatically. If a resident proposes to annex into the municipality, the district shall issue a request for proposals again as prescribed in this subdivision.

(c) Before applying this subdivision, request an independent review by the county attorney of the negotiations, if any, that were conducted as prescribed in subdivision (a) of this paragraph and the request for proposals and resulting bids. After the independent review, the county attorney shall certify whether the negotiations and proposals were based on commercially reasonable assumptions. If the county attorney certifies that any one or more of the provisions are not commercially reasonable, the district and the other party to the negotiations have ten days to cure and continue negotiations before resubmitting information on the negotiations and proposals to the county attorney for certification. Notwithstanding any other law, the county attorney shall have access to sealed bids for purposes of this subdivision. The county attorney shall review and issue a certification pursuant to this subdivision within thirty days after the information and documents regarding negotiations and proposals are submitted to the county attorney. If a fire district does not enter into an intergovernmental agreement pursuant to subdivision (a) of this paragraph or enter into a contract pursuant to subdivision (b) of this paragraph, the surrounding municipality shall provide fire protection and emergency medical services except for services regulated pursuant to title 36, chapter 21.1 in the district immediately on request by the district, following final certification by the county attorney. The municipality shall be compensated by the district as follows:

(i) A three person three-person board shall set the secondary property tax rate for the district. The district shall appoint one person to the board, the surrounding municipality shall appoint one person to the board, and the two appointees shall agree on a third person for the board. If the two appointees cannot agree on a third appointee within five days after the two persons are appointed, the county board of supervisors shall appoint the third person to the board.

(ii) The three person three-person board shall meet and set the tax rate within thirty days after the third person is appointed to the board.

(iii) The district shall levy the tax at the rate as determined by the three person three-person board and the tax shall be collected as other property taxes are collected. On receipt of monies from the property tax levied, the district shall reimburse the county for the costs associated with the formation of the district, including administrative expenses.

10. Require that any intergovernmental agreement or contract between the district and a provider of fire protection services include:

(a) A term of duration between three and five years.

(b) A provision setting forth the cost of service and performance criteria.

(c) An acknowledgment of the right of the municipality to determine the location of future infrastructure if the district is in the municipality's planning area at the time of the execution of the contract.

11. If necessary, issue a request for proposals for providers of emergency medical services and enter into an intergovernmental agreement or contract with a provider of emergency medical services except for those services regulated by title 36, chapter 21.1.

12. Assess and levy a secondary property tax to pay for the costs of the fire protection service or emergency medical service except for those services regulated by title 36, chapter 21.1. A secondary property tax assessed pursuant to this section is not subject to the levy limitation prescribed by section 48‑807.

13. Defend, indemnify and hold harmless a municipal provider or any other provider of fire protection from and against any claims or expenses to which it may be subjected by reason of injury or death of any person or loss or damage to any property directly attributable to the provision of the services unless the services were provided in a grossly negligent manner. The fire district shall secure insurance sufficient to cover liability exposure.

B. A fire district formed pursuant to this article, through its board, may:

1. Contract for administrative staff services, if any, deemed necessary or appropriate to carry out its powers and duties, but a member of a district board shall not be an employee of the district.

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

3. Retain private legal counsel.

4. Sue and be sued.

5. Accept gifts, contributions, bequests and grants and comply with any requirements of such gifts, contributions, bequests and grants not inconsistent with this article.

6. Appropriate and expend annually such 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.

7. Expand its boundaries pursuant to the requirements of section 48‑262 to include unincorporated parcels within a city's or a town's municipal planning area with the permission of the city or town.

C. The county attorney may advise and represent the district when in the county attorney's judgment such 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.

D. The chairperson 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. The district shall not incur any debt or liability in excess of taxes levied and to be collected and the money monies actually available and unencumbered at the time in the fund, except as provided in section 48‑807.

F. If a district formed under section 48‑851 agrees to provide fire and emergency medical services in a county island where a private provider of fire or emergency services has facilities and provides fire service, or where the private provider is the closest responding fire service provider, the district and the private provider shall enter into an agreement covering the roles and relationships regarding mutual aid or backup and any services for which the district wishes to contract. The agreement shall include an allocation of the district's property tax revenues to the municipal contractor or the private provider, or both, based on the proportionate share of the fire services each contractor will provide to the district. The agreement shall be executed before the district begins providing service in the county island. If an agreement is not reached within ninety days after the district requests the private provider to establish a plan, either party may request that the matter be arbitrated pursuant to title 12, chapter 21.

G. This section does not require a fire district or a city or town to provide fire protection or emergency medical services to an area of the county that is receiving services from a private provider, except as provided by a mutual aid or backup agreement pursuant to this section.

H. For the purposes of this article, "fire service" and "fire protection" include fire prevention, emergency medical services and inspection of commercial or industrial property. END_STATUTE