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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
county improvement districts; recreation; governance
Purpose
Allows a county board of supervisors (county BOS) of a county with a population of fewer than 125,000 persons and with a county improvement district providing recreational improvements to provide for a district to be governed by a separately elected three-member or five-member board of directors. Outlines the procedures for the initial appointment of the board of directors, for electing subsequent boards of directors and for filling a vacancy on the board of directors.
Background
A petition requesting the establishment of a county improvement district must be signed by a majority of the persons owning real property or by the owners of more than 51 percent of the real property within the limits of the proposed district (A.R.S. § 48-903). If it appears after consideration of all objections that the petition is signed by the requisite number of owners of real property and that the public convenience, necessity or welfare will be promoted by the establishment of the district, a county BOS must declare its findings, establish the boundaries and declare the improvement district organized under a corporate name (A.R.S. § 48-906).
A county BOS may allow a domestic water improvement district or a domestic wastewater improvement district, a road improvement district or a road enhancement improvement district to be governed by a separately elected board of directors upon establishment or the submission of a separate petition (A.R.S. §§ 48-1012; 48-1082; and 48-1092). Unless a county improvement district filed a petition to be governed by a separately elected board of directors, a county improvement district must be governed by the appropriate county BOS and a county BOS is deemed to be the board of directors of the county improvement district (A.R.S. § 48-908).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a county BOS of a county with a population of fewer than 125,000 persons and with a district to provide for a county improvement district providing recreational improvements (district) to be governed by a separately elected three-member or five-member board of directors.
2. Requires, if a county BOS determines the separate governance would provide a public benefit after a public hearing on the matter, the county BOS to adopt a resolution that:
a) specifies the public benefit, powers and duties that apply to the separately governed district; and
b) describes the boundaries of the district.
3. Requires a county BOS to appoint the initial members of the board of directors from among the qualified electors of the district.
4. Specifies that the change in governance is effective on the adoption of the resolution and appointment of the initial members of the board of directors.
6. Requires the board of directors to meet immediately after the selection and qualification of the initial board of directors and divide themselves into two classes, as nearly equal in number as possible, and requires the:
a) first class directors to serve a four-year term; and
b) second class directors to serve a two-year term.
7. Requires, following the appointment of the initial board of directors, 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.
8. Requires a board of directors to annually elect a chairperson from among its members.
9. Requires, if a district board of directors includes any initial member appointed by a county BOS, to annually submit the district's budget to the county BOS for approval and asserts that a county BOS has veto authority over financial transactions submitted by the district board of directors.
10. Allows, if a district board of directors is elected, a county BOS to review and comment on the district's budget and specifies that a county BOS does not have veto authority over the board of director's financial transactions.
11. Requires every director to continue to discharge the duties of office until a successor is appointed and qualifies.
12. Deems members of a district board of directors as public officers and requires a district board of directors to comply with statutory requirements for public officers.
13. Requires, after the initial directors are appointed by a county BOS, the qualified electors of a district to elect the subsequent board of directors.
14. Allows, if only one person files or no person files a nominating petition for election to fill a position on a district board of directors, a county BOS to cancel the election for the office by resolution and appoint the person who filed the nominating petition.
15. Allows, if no person files a nominating petition for election to fill a position on a district board of directors, a county BOS to cancel the election for the office by resolution, deem the office vacant and requires the office to be filled according to statutory requirements.
16. Requires, if a vacancy on a district board occurs due to disability or any other cause other than resignation, a district board of directors to appoint a qualified elector of the district to fill the office for the remainder of the term.
17. Requires, if a vacancy on a district board occurs due to resignation, a district board to accept the board member's resignation and appoint a qualified elector to fill the remainder of the term in office.
18. Specifies that a person appointed to an office of the board of directors is fully vested with the powers and duties of the office as if elected to the office.
19. Allows a county BOS, if a district board lacks a quorum for any reason for more than 30 days, to revoke the authority of the appointed or elected board of directors.
20. Requires a district board of directors to appoint a clerk and establish and make known an office and mailing address for the clerk.
21. Requires a district to keep the following records open to public inspection:
a) minutes of all meetings of the district board of directors;
b) all resolutions;
c) accounts showing all monies received and disbursed;
d) the annual budget; and
e) all other records statutorily required to be maintained.
22. Requires additions to and alterations of a district's boundaries to be made in the same manner as provided to establish a district, except that:
a) notification must be published in a newspaper of general circulation within the district;
b) petitions must be filed with the district board of directors; and
c) all actions related to a proposed boundary change must be the responsibility of the district board of directors.
23. Allows, on approval of any boundary change of a district, a district board of directors to order the successful petitioners to pay all the costs of the boundary change.
24. Requires a district board of directors to comply with Arizona open meetings laws as a separate political subdivision.
25. Allows a county BOS of the county in which a district is located to revoke the authority of an elected board of directors at any time to protect the residents of the district.
26. Requires, if a county BOS revokes the authority of an elected board of directors, the county BOS to govern the district.
27. Allows, if a county BOS revokes the authority of an elected board of directors, a county BOS to call for new elections for the district board of directors.
28. Subjects services provided by a county to a district to reimbursements pursuant to statutory requirements for reimbursement for county services provided to a special taxing district.
29. Terminates the authority for a county BOS to provide for the separate governance of a district if the county BOS does not adopt a resolution and appoint an initial board of directors for the district by December 31, 2025.
30. Defines district and county improvement district providing recreational improvements is a tax-levying county improvement district that is formed pursuant to statutory requirements, to make improvements associated with lake recreation, such as boats docks, beach and picnic areas, lake access, parking and paths, and to provide personnel and equipment for the safe use and enjoyment of property for members and their authorized guests.
31. Defines board and clerk.
32. Contains a delayed repeal date of a county BOS's authority to provide for a district to be governed by a separately elected three-member or five-member board of directors after January 1, 2026.
33. Becomes effective on the general effective date.
House Action
GE 1/18/22 DPA 12-0-0-1
3rd Read 2/17/22 59-0-1
Prepared by Senate Research
March 10, 2022
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