State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1499: community facilities districts; directors

PRIME SPONSOR: Senator Smith, LD 11

BILL STATUS: Chaptered

 

Legend: CFD – Community Facilities District Board – CFD Board Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☒ Emergency (40 votes) ☐ Fiscal NoteRelating to community facilities districts.

Provisions

1.       Asserts the two Board members added to the CFD board are initially designated by the largest landowner in the proposed CFD, appointed by the governing body.  (Sec. 1)

2.       In addition to the applicant providing a process for designating the two additional Board members once the development in the CFD is certified as complete by the applicant or successors, permits the applicant to provide for additional Board members if there is a vacancy due to death, resignation or inability to serve.  (Sec. 1) 

3.       Requires the resolution ordering formation of the CFD to grant the governing body the option to appoint five directors, regardless of the district's size.  (Sec. 2)

4.       States the initial directors cannot be members of the governing body, ex officio.  (Sec. 3)

5.       Outlines the process for the governing body to appoint directors when terms expire or there is a vacancy on the Board.  (Sec. 4)

6.       Contains an emergency clause.  (Sec. 5)

7.       Makes technical and conforming changes.  (Sec. 2, 3, 4)

Current Law

A CFD is a tax levying public improvement district formed by a municipality or county.  If 25% of the land owners of the proposed CFD sign a petition, a resolution may be adopted declaring its intention to form a CFD.  The resolution must state whether it will be governed by the members of the governing body, ex officio or five directors appointed by the governing body.  The Board may authorize the issuance of revenue bonds or hold a bond election.  Fees and charges connected with an application to form a CFD must not exceed the overall cost of the actual administration of the CFD.  A CFD may levy ad valorem taxes, if approved by the voters, which will include the maintenance and operation of the CFD.  That portion of the tax must not exceed 30 cents per $100 of assessed valuation of all real and personal property within the CFD.  (A.R.S. 48 § 702 et al.)

Additional Information

Laws 2017, Chapter 208, revised the CFD statutes, including the process for formation, the Board and their appointment, maximum fees and other charges.  SB 1499 makes additional changes to these statutes.

 

 

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Fifty-third Legislature                  SB 1499

Second Regular Session                               Version 4: Chaptered

 

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