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REFERENCE TITLE: domestic water districts; wastewater; annexation |
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State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022
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SB 1564 |
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Introduced by Senator Shope
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AN ACT
amending section 48-959, Arizona Revised Statutes; relating to county improvement districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 48-959, Arizona Revised Statutes, is amended to read:
48-959. Dissolution of county improvement districts; domestic water improvement districts; wastewater
A. Any district organized under this article shall be dissolved by its board of directors when all bonds and other obligations of the district are paid or have become barred by the statute of limitations, and the operation and maintenance functions of the district or the major part thereof of those functions have been taken over by an incorporated city or town, by the county or by a utility.
B. Notwithstanding section 9-514, when any portion of a domestic water improvement district or domestic wastewater IMPROVEMENT district is annexed into a city or town or entirely included within a newly organized city or town, the following apply:
1. The domestic water improvement district or DOMESTIC wastewater improvement district may continue to provide domestic water or domestic wastewater services or both, as applicable, in the area annexed by the city or town if the city or town elects not to provide the domestic water or domestic WASTEWATER SERVICES or both, as applicable, in that area.
2. When the city or town elects to provide domestic water or domestic wastewater SERVICES or management of water or WASTEWATER services in the NEWLY annexed area and the domestic water improvement district or domestic wastewater improvement district provides services in areas outside of the boundaries of the newly annexed area, the domestic water improvement district or domestic wastewater improvement district shall continue to operate outside the boundaries of the newly annexed area. The district's assets, including personnel, and liabilities, including any then-existing pension funds, from the newly annexed area become merged with the city or town on the date that the city or town elects to provide services to that area. The district and the city or town must REASONABLY COOPERATE to ensure that water and wastewater SERVICES to the portions of the improvement district that were not annexed are not disrupted.
3. When the city or town elects to provide domestic water or domestic wastewater services or management of domestic water or domestic WASTEWATER services in the newly annexed area and the city or town determines that the domestic water improvement district or domestic wastewater improvement district does not have the capacity to maintain peak domestic demand and fire flow demand requirements in the NEWLY annexed area in accordance with the city's or town's adopted version of the international fire code, appendix b fire flow requirements for buildings, the domestic water IMPROVEMENT district or domestic WASTEWATER improvement district is dissolved, and the city or town shall provide domestic water or domestic wastewater services, or both, as applicable, to the newly annexed area. The dissolution of the district occurs on the date the city or town elects to PROVIDE domestic water or domestic wastewater services to that area. In DETERMINING lack of capacity, the city or town may CONSIDER inadequate fire flow storage capacity, new development modeling, redundancy or emergency contingency planning, among other possible factors. On the dissolution of the improvement district, the city or town providing domestic water or domestic wastewater services assumes The assets, including personnel, and liabilities, including any then-existing pension funds, from the dissolved IMPROVEMENT district.
C. SUBSECTION B of This section does not apply to city or town services that are provided outside of the municipality's corporate boundaries.