HB2455 - 551R - Senate Fact Sheet

Purpose

Allows a county board of supervisors (county BOS) to provide for a county recreation improvement district (district) to be governed by a separately elected three-member or five-member district board of directors (district board). Outlines district board membership, powers and duties.

Background

A petition addressed to the county BOS requesting the establishment of a county improvement district may be filed with the clerk of the county BOS, if the petition is signed by: 1) a majority of persons owning real property; or 2) the owners of 51 percent or more of the real property within the limits of the proposed district. The petition must contain outlined information, including: 1) the name of the proposed improvement district; 2) the necessity for the proposed district; 3) whether the public convenience, necessity or welfare will be promoted by the establishment of the district and that the property to be included in the district will be benefited; and 4) the boundaries of the district (A.R.S. § 48-903).

Upon receipt of a petition, the county BOS must set a date for a hearing on the petition within 40 days after presentation of the petition. If the petition is signed by the owners of all the real property in the proposed county improvement district the county BOS may order the formation of the district and a hearing is not required (A.R.S. § 48-905).

Upon the hearing of a petition for the establishment of a county improvement district and if it appears that the public convenience, necessity or welfare will be promoted by the establishment of the district, the county BOS must declare its findings, establish the boundaries and declare the improvement district organized under a corporate name (A.R.S. § 48-906).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

Board Membership

1. Allows the county BOS of a county with a district to provide for the district to be governed by a separately elected three-member or five-member district board.

2. Requires the county BOS to appoint the initial members of the district board who are selected from the qualified electors of the district.

3. Allows the county BOS, if the district board lacks a quorum for more than 30 days, to revoke the authority of the appointed or elected district board.

4. Requires, after the initial directors are appointed by the county BOS, subsequent directors to be elected by the qualified electors of the district.

5. Requires the district board to meet and divide themselves by lot into two nearly equal classes immediately after the selection and qualification of the initial directors of the district board.

6. Requires directors of the first class to serve a term of four years and directors of the second class to serve a term of two years.

7. Requires every director to continue to discharge the duties of office until a successor is appointed and qualifies.

8. Requires, at each regular election following, one director for each expired term to be elected and hold office for a term of four years and until a successor is elected and qualifies.

9. Requires the district board, if a vacancy occurs due to disability or any cause other than resignation, to appoint a qualified elector to fill the office for the remaining portion of that term.

10. Requires the district board, if there is a vacancy on the district board due to resignation, to accept the resignation and appoint a qualified elector to fill the remaining portion of that term.

11. Requires the district board to annually elect a chairperson from among its members.

12. Allows the county BOS, if only one person files a nominating petition for an election to fill a position on a district board, to cancel the election for that office by resolution and appoint the person who filed the nominating petition.

13. Allows the county BOS, if no person files a nominating petition for an election to fill a position on a district board, to cancel the election for those offices by resolution and stipulates that the offices are deemed vacant and must be filled as otherwise provided by law.

14. Stipulates that a person who is appointed, if the person was the only person to file a nominating petition for an election to fill a position on a district board, is fully vested with the powers and duties of the office.

15. Deems members of the district board ineligible for compensation and requires members to receive reimbursement for necessary expenses while engaged in official business of the district as authorized by the district board.

Powers and Duties of the Board

16. Allows a district, for county recreation improvements for which the district was established, to:

a) enter into contracts and intergovernmental agreements and expend monies for ongoing maintenance and improvements in the district;

b) employ staff and consultants or reimburse the county for staff and consultant services and support facilities supplied by the county;

c) employ staff to make improvements or perform maintenance of the district;

d) pay the financial, legal and administrative costs of the district; and

e) formulate and adopt rules and regulations necessary to operate the district.

17. Requires additions to, and alterations of, the district to be made by petition and requires petitions to be filed with the district board and all actions related to a proposed boundary change are the responsibility of the board.

18. Requires notification of additions and alterations of the district to be published in a newspaper of general circulation within the district

19. Allows a district board, on approval of any boundary change, to order the successful petitioners to pay all of the costs of the boundary change, with certain exceptions.

20. Requires the district board to appoint a clerk and to establish and make known an office and mailing address for the clerk.

21. Requires the district to keep the following records that must be open to public inspection:

a) minutes of all meetings of the district board;

b) all resolutions;

c) accounts showing all monies received and disbursed;

d) the annual budget; and

e) all other records required to be maintained by law.

22. Requires a district board to comply with public meetings and proceedings laws as a separate political subdivision.

23. Deems members of the district board as public officers for the purposes of conflict of interest laws and requires district board members to comply with conflict of interest laws.

Veto Authority over Financial Transactions

24. Requires a district board, if the district board includes any initial members who were appointed by the county BOS, to annually submit the district's budget to the county BOS for approval.

25. Grants the county BOS veto authority over financial transactions submitted by the district board if the district board includes any initial members who were appointed by the county BOS.

26. Allows the county BOS, if the district board is elected, to review and comment on financial transactions of the district board and prohibits the county BOS from having veto authority over financial transactions.

Revocation of Authority

27. Allows the applicable county BOS to revoke the authority of an elected district board in order to protect the residents of the district.

28. Requires any district in which the authority of an elected district board is revoked to be governed by the county BOS and requires the county BOS to have the option of calling for new elections for the district board.

Miscellaneous

29. Defines county recreation improvement district as a tax-levying county improvement district that is formed to improve and maintain levees and other structures, maintain adequate water levels in the district and provide personnel for the safe use and enjoyment of county recreation improvement district property for members and their authorized guests.

30. Defines board and clerk.

31. Subjects services provided by a county to a district to the statutorily required reimbursement for county services.

32. Becomes effective on the general effective date.