The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 58th Legislature, 1st Regular Session, which convenes in January 2027.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
48-7004. District governance; board of directors; elections; powers and duties
A. On issuance of the formation order, a district shall be governed by a board of directors that consists of three directors. The initial directors shall be appointed as set forth in the petition and formation order.
B. Subject to subsection J of this section, each director shall either hold a fee title to real property within the district or be an individual who is designated or appointed by a holder of a fee title to real property within the district. A director will resign from the board of directors if at any time during such director's term the director is no longer an owner of real property within the district or, if such director was designated or appointed by an owner of real property within the district, such owner of real property within the district is no longer an owner of real property within the district. Such director's vacancy will be filled pursuant to subsection H of this section.
C. The term of the initial directors begins on the date of the formation order. Of the initial directors, one director shall serve a term of three years, one director shall serve a term of four years and one director shall serve a term of five years, as specified in the petition. Thereafter, each subsequently elected director shall serve a term of three years. These subsequently elected directors shall be an owner of real property in the district who shall be elected at large by the owners of real property in the district, as shown on the property tax assessment roll, who are qualified to vote pursuant to section 48-7041. The board shall develop bylaws for the operation of the district.
D. Only the owners that hold fee title to real property in the district and their respective designees and appointees are eligible to vote in:
1. An election regarding an ad valorem tax or an assessment to be levied against the real property in the district.
2. An election for the board of the district.
3. An election for dissolution of the district.
E. Corporations, partnerships and other business entities are eligible to vote as property owners, but only one vote may be cast for each one-seventh of an acre of real property in the district, except that any fraction of ownership of real property that is less than one-seventh of an acre entitles the owner to cast one vote. A majority of the acreage, as represented by the votes cast at an election that is conducted solely under this acreage system, determines the result of the election.
F. An election conducted under this section shall be held as a special election of the district and shall be noticed, called, conducted and canvassed by the board in the manner prescribed by this chapter. The board may enter into intergovernmental agreements with the county, a municipality or another public entity for election administration, including reimbursement of reasonable costs of district elections.
G. The board shall:
1. Adopt and amend the general plan for the district.
2. Authorize and approve the issuance of bonds of the district as provided by this chapter.
3. Levy ad valorem taxes and assessments, subject to the limitations and election requirements of this chapter, including the maximum authorized tax rate.
4. Manage and administer the affairs of the district, including operating, maintaining and repairing public infrastructure that is owned or operated by the district.
5. Adopt annual budgets, statements and estimates for the district.
6. Administer district elections or enter into intergovernmental agreements with the county, a municipality or other qualified public entities to administer district elections.
7. Perform all other acts that are necessary or convenient to carry out the purposes of this chapter.
H. If a vacancy occurs on the board because of a death, a resignation or an inability of the director to discharge the duties of director, the vacancy shall be filled by appointment made by the remaining directors within thirty days of a vacancy. The board shall provide written notice to the authority that the vacancy has been filled by appointment within thirty days of the appointment or, if the remaining directors have not filled the vacancy by appointment, written notice to the authority that the vacancy has not been filled by appointment within thirty days of the vacancy. A director appointed by the remaining directors shall hold office for the remainder of the unexpired term until the director's successor is elected as provided by article 3 of this chapter. A director shall not be an elected official of a municipality in which the district is located or an Indian tribe or community or an employee or agent of a municipality or Indian tribe or community but may be a director of more than one district.
I. The members of the board are not eligible to receive compensation for their services as members of the board.
J. If a vacancy occurs on the board because of death, resignation or inability of the director to discharge the duties of director, and there are no owners of real property within the district or individuals designated or appointed by an owner of real property within the district who are willing to fill such vacancy, the authority shall appoint a director to fill the vacancy. The director appointed by the authority is not required to be a fee title owner of real property within the district or an individual designated or appointed by a fee title owner of real property within the district. The director appointed by the authority shall hold office for the remainder of the unexpired term and until the director's successor is elected, unless a fee title owner of real property within the district submits a written request to the authority and the board to replace the director appointed by the authority. In that event, the authority, as soon as practicable, shall appoint that fee title owner of real property within the district to replace the director appointed by the authority.
K. The board shall comply with title 38, chapter 3, article 3.1 as a separate political subdivision.