ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: FIN DPA/SE 5-2-0-0 |3^rd Read 17-12-1-0 House: GOV W/D | COM DPA 7-1-1-1

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SB 1145: NOW: special districts; construction; payments

Sponsor: Senator Carroll, LD 28

Caucus & COW

Overview

Prescribes requirements and restrictions for revitalization district contracts.

History

The governing body of one or more municipalities may adopt a resolution declaring its intention to form a tax levying revitalization district to include property within the corporate boundaries of the district, if the public convenience and necessity require and on presentation of a petition signed by the owners of at least 51% of the net assessed property value proposed to be included in the district and a petition signed by at least 51% of the property owners in the area proposed to be included in the district.

To further the implementation of the general plan, a revitalization district may enter into contracts and spend monies for any infrastructure purposes and 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. An agreement between a landowner and a revitalization district 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. Public infrastructure, other than movable property, may be located only in or on lands owned by the state, the revitalization district or a municipality or county or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way, whether in or out of the district or municipality.

A revitalization district has perpetual succession and, if the district does not have bonds or other outstanding obligations, must be dissolved 10 years after the date of formation unless the governing bodies extend the district by resolution for another 10 years. The governing body by resolution may order the participation in the costs of any public infrastructure purpose, including the payment of bond debt service (Title 48, Chapter 39, Article 1, A.R.S.).

Provisions

1. Requires all construction contracts entered into by the revitalization district to comply with statute governing public works contracts. (Sec. 1)

2. Prohibits a municipality from operating or using, or any other person or entity to use, revitalization district infrastructure for any purpose, unless the municipality that uses or operates the infrastructure pays the balance due and owing to a contractor for the work performed. (Sec. 1, 3)

3. Requires, for certain agreements entered into by the revitalization district and landowners, the inclusion of a provision that prohibits bond proceeds or reimbursements from being applied to any repayments if any contractor has not been paid in full for the work performed, as certified by the contractor and the district. (Sec. 1)

4. Prohibits the dissolution of a revitalization district that owes monies to a licensed contractor for the installation of any type of infrastructure for the district. (Sec. 2)

5. Adds, to the conditions required before dissolving a revitalization district, a requirement that all monies due to contractors that performed work for the district have been paid in full. (Sec. 4)

6. Applies the contractor payment requirements and infrastructure use prohibitions to revitalization district infrastructure construction work commenced on or after the effective date. (Sec. 5)

Amendment

Committee on Commerce

1. Removes language relating to the prohibition on using the infrastructure until the contractor receives payment for work performed by the municipality.

2. Removes language relating to requiring construction contracts to comply with statutory provisions relating to public work contracts timely payments.

3. Subjects a construction contract entered into by a revitalization district to statutory provisions relating to prompt payment of private contracts.

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7.                   SB 1145

8. Initials PB           Page 0 Caucus & COW

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