SB1145 - 571R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 48-6808, Arizona Revised Statutes, is amended to read:

START_STATUTE48-6808. Powers of a revitalization district

A. In addition to the powers otherwise granted to a district pursuant to this article, a district, may to further the implementation of the general plan, may:

1. Enter into contracts and spend monies for any infrastructure purpose with respect to the district. All construction contracts entered into by the district shall comply with section 34-221.

2. Enter into intergovernmental agreements as prescribed in title 11, chapter 7, article 3 for the financing, planning, design, inspection, ownership, control, maintenance, operation or repair of infrastructure or the provision of enhanced municipal services by the municipality in the district, including an intergovernmental agreement with an Indian tribe or community.

3. Sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract or bond resolution of the district.

4. Reimburse a municipality for providing enhanced municipal services in the district.

5. Operate, maintain and repair infrastructure.

6. Establish, charge and collect user fees, rates or charges for the use of any infrastructure or service.

7. Employ staff, counsel and consultants.

8. Reimburse a municipality for staff and consultant services and support facilities supplied by the municipality.

9. Accept gifts or grants and incur and repay loans for any infrastructure purpose.

10. Enter into agreements with landowners and the municipality for the collection of fees and charges from landowners for infrastructure purposes, the advance of monies by landowners for infrastructure purposes or the granting of real property by the landowner for infrastructure purposes.

11. After approval at an election held pursuant to section 48-6818, levy and assess the costs of any infrastructure purpose on any land benefited in the district.

12. Pay the financial, legal and administrative costs of the district.

13. Enter into contracts, agreements and trust indentures to obtain credit enhancement or liquidity support for its bonds and process the issuance, registration, transfer and payment of its bonds and the disbursement and investment of proceeds of the bonds.

14. With the consent of the governing body of the municipality that formed the district, enter into agreements with persons outside of the district to provide services to persons and property outside of the district.

15. With the consent of the applicable governmental entity, use public easements and rights-of-way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights-of-way, whether in or out of the geographical limits of the district or the municipality.

B. In connection with any power authorized by statute, the district may:

1. Contract.

2. Enter into intergovernmental agreements pursuant to title 11, chapter 7, article 3.

3. Adopt and change a seal.

4. Sue and be sued.

5. Enter into development agreements, as defined in section 9-500.05.

C. The district shall not be used to finance or facilitate the acquisition, operation, maintenance, construction or operation of a sports stadium or other sports facility that is designed specifically for or used specifically by a professional sports team, including a clubhouse, a practice facility or any other related facility or on-site infrastructure or related parking facilities for those purposes. This subsection does not apply to the financing, acquisition, operation, maintenance or construction of a multipurpose event center.

D. Public infrastructure other than personalty may be located only in or on lands owned by the this state, a county, a municipality or the district or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way, whether in or out of the district or the municipality. Personalty may be used only for purposes authorized by the district board. If the contractor constructing infrastructure in or on lands owned by this state, a county, a municipality or the district or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way is not paid in full for the work performed due to the district having insufficient monies or any other reason, a municipality shall not operate or use the infrastructure for any purpose and shall not allow any other person or ~~insufficient monies or any other reason, this state, the county or the municipality that owns or controls the land on which the infrastructure is constructed shall paya municipality shall not operate or use the infrastructure for any purpose, and shall not allow any other person or~~ ENTITY to use the infrastructure for any purpose unless the municipality that uses or operates the infrastructure pays the balance due and owing to the contractor for the work performed.

E. An agreement pursuant to subsection A, paragraph 10 of this section may include agreements to repay all or part of such advances, fees and charges from the proceeds of bonds if issued or from advances, fees and charges collected from other landowners or users or those having a right to use any infrastructure, except that any agreement prescribed by this subsection shall include a provision that bond proceeds or reimbursements shall not be applied to any repayments if any contractor constructing INFRASTRUCTURE for the district has not been paid in full for the work performed, as certified by the CONTRACTOR and the district engineer. Notwithstanding any provision in this subsection, a person does not have authority to compel the issuance or sale of the bonds of the district or the exercise of any taxing power of the district to make repayment under any agreement. END_STATUTE

Sec. 2. Section 48-6809, Arizona Revised Statutes, is amended to read:

START_STATUTE48-6809. Perpetual succession

The district has perpetual succession, except that the district may be dissolved as provided in section 48-6819 and, if the district does not have any bonds or other obligations outstanding, shall be dissolved ten years after the date of formation unless the governing bodies of the participating municipalities by resolution extend the district by an additional period of ten years. If the district owes monies to a licensed contractor for the INSTALLATION of any TYPE of INFRASTRUCTURE for the DISTRICT, the district may not be dissolved. END_STATUTE

Sec. 3. Section 48-6811, Arizona Revised Statutes, is amended to read:

START_STATUTE48-6811. Participation by municipality

The governing body of the municipality, by resolution, may summarily order the participation by the municipality in the costs of any public infrastructure purpose, including the payment of bond debt service. The municipality or any person may not use for its intended purpose any infrastructure that is constructed PURSUANT to this chapter until the CONTRACTOR PERFORMING the work has been paid in full for the work performed PURSUANT to a contract ENTERED into under this chapter. END_STATUTE

Sec. 4. Section 48-6819, Arizona Revised Statutes, is amended to read:

START_STATUTE48-6819. Dissolution of district

A. The district may be dissolved by the district board by a resolution of the district board if the following conditions exist:

1. All of the real and personal property owned by the district has been or will be conveyed to a municipality.

2. Either the district has no bonds or obligations or the municipality has assumed all of the obligations of the district.

3. All monies due to CONTRACTORS that PERFORMED work for the district have been paid in full.

B. The district board shall comply with the conditions prescribed by subsection A of this section and shall dissolve the district if both of the following occur:

1. The governing body has consented to comply with the conditions prescribed by subsection A of this section and either:

(a) Dissolution has been approved by a vote of the property owners of the district voting in an election called for that purpose.

(b) The governing body determines that the district has been inactive for at least five consecutive years and has no future purpose.

2. The district board adopts a resolution dissolving the district and records the resolution in the office of the county recorder.

C. The district board may call such an election and shall call such an election if requested to do so in a petition signed by ten per cent percent of the property owners of the district.

D. The election shall be called and held in the same manner as an assessment levy election, except that the ballot shall contain the words "dissolution, yes" and "dissolution, no".

E. All property in the district, except federal, state, county and municipal property, remains subject to the lien for the payment of ad valorem taxes levied, and any property subject to a special assessment lien remains subject to the lien notwithstanding dissolution of the district. The district may not be dissolved if any revenue or assessment bonds of the district remain outstanding unless an amount of money sufficient, together with investment income thereon, to make all payments due on the revenue bonds either at maturity or prior redemption has been deposited with a trustee or escrow agent and pledged to the payment and redemption of the bonds. The district may continue to operate after dissolution only as needed to collect money and make payments on any outstanding bonds.

F. If a proposal for dissolution is approved and the district is an Arizona state retirement system employer before the dissolution, the governing body of the district shall notify the director of the Arizona state retirement system of the dissolution. END_STATUTE

Sec. 5. Applicability

This act applies only to revitalization district infrastructure construction work that is commenced on or after the effective date of this act.~~5.ApplicabilityThis act applies only to revitalization district infrastructure construction work that is commenced after the effective date of this act.~~