ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: ED DP 5-4-1-0

HB 2501: community college districts; county removal

Sponsor: Representative Biasiucci, LD 30

House Engrossed

Overview

Establishes procedures for the removal of a county from a community college district (CCD). 

History

A CCD may be organized for a single county, two or more contiguous counties or an existing CCD and contiguous counties that are not part of any CCD if the proposed CCD meets outlined minimum net assessed valuation and population requirements (A.R.S. § 15-1402).

A petition to form a CCD may be submitted in two ways: 1) at least 10% of the qualified electors in the proposed CCD's boundaries may submit a petition to the county school superintendent; or 2) if the proposed CCD consists of more than one county, at least 10% of the qualified electors in each county may submit a petition to the county school superintendent. The submitted petition must detail the proposed CCD's name and boundaries. Once a petition is submitted, the county school superintendent(s) must verify the signatures. After signature verification, the petition must be transmitted to the county board of supervisors (BOS).

If the county BOS determines the proposed CCD meets the minimum net assessed valuation and population requirements, the county or counties must submit a question to form the CCD to the qualified electors at the next general election or at a special election. A majority of the electors must vote in favor of forming the CCD; if the proposed CCD covers more than one county, a majority of the electors in each county must vote in favor of forming the CCD (A.R.S. §§  15-1403, 15-1404).

An existing CCD in two or more contiguous counties may be dissolved to form a new CCD in one or more of the counties. The procedures to dissolve and form a new CCD are subject to the aforementioned requirements, except that a majority of the qualified electors in each of the counties in the existing CCD must approve the question. If a county within the dissolved CCD does not meet the minimum outlined net assessed valuation and population requirements nor alternative organization requirements, the county is no longer part of an established CCD (A.R.S. § 15-1407).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAuthorizes, if a CCD contains two or more counties, 10% of the qualified electors in any county within the CCD to petition to remove that county from the CCD.

2.   Subjects the procedures for removing a county from a CCD to the same statutory procedures for the formation of a CCD consisting of one county.

3.   Requires the election to remove a county from a CCD to be held in the same manner as an election to form a CCD consisting of one county, except that a majority of the petitioning county's qualified electors must approve the removal.

4.   Asserts that if a county is removed from a CCD, the county is no longer part of an established CCD if it does not meet the statutory requirements for the formation of a CCD or the alternative organization of a CCD.

5.   Requires the following to occur on the removal of a county from a CCD:

a)   the CCD board must prepare, before the end of the fiscal year in which the election is held, a projected list of assets for the CCD; and

b)   the CCD board and removed county's BOS must prepare, at of the end of the fiscal year in which the election is held, a final statement of assets for the CCD.

6.   Instructs the CCD board and county BOS, by September 15 of the year in which the county's removal becomes operative, to set aside sufficient assets or provide other means to satisfy the liabilities of the CCD and approve the final division of all assets.

7.   Subjects all taxable property in the removed county to taxes for the payment of any indebtedness that was lawfully incurred by the CCD while the county was within the CCD and that remains unpaid after the final division of assets.

8.   Mandates the removed county continue to levy taxes sufficient to produce revenue necessary to pay indebtedness.

9.   Details the criteria to determine a removed county's proportionate share of the CCD's indebtedness.

10.  Specifies that a property tax levy is not required if the removed county deposits with a trustee or escrow agent an amount of monies sufficient to make all required payments.

11.  Allows the removed county to sell assets that are transferred to the county from the CCD.

12.   

13.   

14.  ---------- DOCUMENT FOOTER ---------

15.                    HB 2501

16.  Initials CH           Page 0 House Engrossed

17.   

18.  ---------- DOCUMENT FOOTER ---------