HB2496 - 572R

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. Any construction contracts the district enters into pursuant to this article shall comply with subsection F of this section.

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 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.

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. 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.

F. Any CONSTRUCTION contract the district enters into must include provisions for all of the following:

1. Allowing A contractor to suspend performance or terminate a construction contract with a district for failure by the district to make timely payment of amounts certified and approved for payment. The contractor shall provide written notice to the district at least seven calendar days before the intended suspension or termination unless a shorter notice period is prescribed in the construction contract. A contractor shall not be deemed in breach of the construction contract for suspending performance or terminating under this paragraph. A construction contract shall not extend the time period for a contractor to suspend performance or terminate under this paragraph.

2. Allowing A subcontractor to suspend performance or terminate a contract with a general contractor or subcontractor for a district if both of the following occur:

(a) the district fails to make timely payment of amounts certified and approved for the subcontractor's work.

(b) the contractor fails to pay the subcontractor for that certified and approved work. The subcontractor shall provide written notice to the contractor and district at least three calendar days before the intended suspension or termination unless a shorter notice period is prescribed in the contract. A subcontractor shall not be deemed in breach for suspending performance or terminating under this paragraph.

3. Allowing A subcontractor to suspend performance or terminate if the district makes timely payment of certified and approved amounts for the subcontractor's work but the contractor fails to pay the subcontractor. The subcontractor shall provide written notice to the contractor and district at least seven calendar days before the intended suspension or termination unless a shorter notice period is prescribed in the contract. A subcontractor shall not be deemed in breach for suspending performance or terminating under this paragraph.

4. Allowing a subcontractor to suspend performance or terminate if the district declines to approve and certify portions of the contractor's billing for the subcontractor's work for reasons that are not the fault of or directly related to that subcontractor's work. The subcontractor shall provide written notice to the contractor and district at least seven calendar days before the intended suspension or termination unless a shorter notice period is prescribed in the contract. A subcontractor shall not be deemed in breach for suspending performance or terminating under this paragraph.

5. Allowing a contractor or subcontractor that suspends performance as prescribed in this subsection to cease furnishing further labor, materials or services until being paid the amount that was certified and approved, together with any reasonable costs incurred for mobilization resulting from any shutdown or restart of the project.

6. Requiring the award of reasonable attorney fees and costs to the successful party In any action or arbitration to enforce rights under this subsection.

7. Requiring that any Written notice prescribed by this subsection is deemed provided if either of the following occurs:

(a) The written notice is delivered in person to the individual, member or officer of the entity for which it was intended.

(b) The written notice is sent by any method that provides written, third-party verification of delivery to the last known business address of the party giving notice.END_STATUTE

Sec. 2. Applicability

Section 48-6808, Arizona Revised Statutes, as amended by this act, applies to any revitalization district infrastructure construction contract executed after the effective date of this act.