ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: GOV DPA 4-3-0-0 | 3^rd Read: 25-0-5-0 House: GOV DP 7-0-0-0

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SB 1661: broadband service district authority; formation

Sponsor: Senator Dunn, LD 25

Caucus & COW

Overview

Authorizes a county with a population of between 200,000 and 210,000 to petition the Board of Supervisors to establish a broadband service authority district and prescribes requirements for the district and its governing board.

History

Statute allows for the creation of special taxing districts, such as fire districts, community park maintenance districts, sanitary districts and hospital districts, which typically serve a single purpose. Special taxing districts are established by municipalities or counties to finance and operate projects within that district. Most special taxing districts are funded by ad valorem taxes levied on all real property within the district limits (A.R.S. §§ 48-261, 48-2220).

Provisions

Broadband Authority Districts

1. Authorizes a group of individuals, businesses or organizations in a county with a population between 200,000 and 210,000 persons to petition the Board of Supervisors to form a broadband authority district for any of the following purposes:

a) facilitating the expansion and maintenance of broadband infrastructure;

b) securing and managing funding for broadband projects;

c) establishing guidelines and goals for broadband performance and accessibility; or

d) supporting policies and initiatives that promote broadband deployment. (Sec. 2)

2. Authorizes the district to receive funding only from:

a) grants from government agencies or private organizations; or

b) services fees that are charged to the users of the broadband services who have elected to receive and use the broadband services and that are used to maintain and operate the broadband services. (Sec. 2)

3. Prohibits the district from deploying last mile residential broadband. (Sec. 2)

4. Prohibits the district from levying any new taxes. (Sec. 2)

5. Clarifies that the district can collect and remit applicable taxes. (Sec. 2)

6. Specifies a broadband authority district organized under this act is a public, political and municipal corporation to the extent of the powers and privileges granted by law to municipal corporations, including immunity of its property and revenue taxation. (Sec. 2)

Formation of a Broadband Authority District

7. Instructs petitioners seeking to form a broadband authority district to submit an application to the Board of Supervisors that includes:

a) a description of the proposed district boundaries;

b) the names of the petitioners;

c) the methodology for the selection of the members of the district board; and

d) the proposed name of the district. (Sec. 2)

8. Directs the Board of Supervisors to hold a public meeting on the application within 6 weeks and requires notice to be published in a publication of general circulation in the county at least 2 weeks before the public hearing. (Sec. 2)

9. Allows individuals who own property in the proposed district boundaries, or other interested parties, to join the petition after the filing and at any time during the Board of Supervisors' consideration of the petition. (Sec. 2)

10. Authorizes the Board of Supervisors, after the public hearing, to:

a) approve or deny the formation of the district;

b) approve a modification of the proposed district boundaries; or

c) approve the methodology for selection of the district board members. (Sec. 2)

Governing Board

11. States the board must consist of between 5 and 7 members and represent interested stakeholders from the district. (Sec. 2)

12. Establishes the following powers and duties of the board:

a) adopt bylaws for the operation of the district;

b) hold regular meetings and maintain records of all decisions; and

c) establish terms of office and procedures for selecting board members. (Sec. 2)

13. Authorizes the board to do all of the following:

a) enter into contracts to facilitate broadband infrastructure development and maintenance;

b) manage and allocate monies for district projects;

c) acquire, hold and dispose of property necessary for district activities;

d) represent the district in legal matters; and

e) monitor and report on the performance and impact of broadband deployment efforts. (Sec. 2)

Miscellaneous

14. Defines authority, board, broadband service, district and infrastructure. (Sec. 1)

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18.                   SB 1661

19. Initials JH           Page 0 Caucus & COW

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