ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: GE DP 13-0-0-0

HB 2699: fire district bonds; merger; consolidation

Sponsor: Representative Martinez, LD 11

Caucus & COW

Overview

Specifies that indebtedness of a fire district is not assumed by all of the resulting district after a merger or consolidation of a fire district.

History

Fire districts are allowed to enforce, amend and revise the fire code of the district, contract with a city or town for fire protection services and procure the services of an organized private fire company or department of a neighboring city, town, district or settlement (A.R.S. § 48-805).

Two or more fire districts may merge if the governing body of each affected fire district, by a majority vote, 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 districts and would promote public health, comfort, convenience, necessity or welfare (A.R.S. § 48-820).  A fire district may consolidate with one or more fire districts if 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 and 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 health, comfort, convenience, necessity or welfare (A.R.S. § 48-822).

Provisions

1.   Stipulates, if a fire district with outstanding bonded indebtedness is merged or consolidated, the indebtedness is not assumed by all of the resulting district. (Sec. 1)

2.   Specifies that the indebtedness is deemed as an ongoing indebtedness of only that portion of the resulting district that originally approved the bonds. (Sec. 1)

3.   States that in order to pay the principal of and interest on the bonds as they become due and payable, the county board of supervisors must annually levy and collect a tax on the taxable property of only that portion of the resulting district that approved the bonds. (Sec. 1)

4.   Prohibits the levy of taxes on the remainder of the taxable property of the newly merged or consolidated district. (Sec. 1)

5.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical and conforming changes. (Sec. 1, 2)

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9.                     HB 2699

10.  Initials SJ  Page 0 Caucus & COW

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