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Understanding Arizona House Bill 2371
January 26th, 2005
Legislation has been introduced in the Arizona State House of Representatives which presents major problems for developers and homebuilders currently utilizing or planning to establish special taxing districts, including CFD's, to finance public infrastructure.
The provisions of House Bill 2371 include the following:
The implications of this legislation are problematic as many development projects have build-out periods in excess of 15 years. Additionally, CFD bonds have terms of 25 years and many other special taxing districts utilize bond terms in excess of 15 years. We encourage you to contact your appropriate legislative leaders and Representatives to voice your concerns over House Bill 2371.
http://www.azleg.state.az.us/DocumentsForBill.asp?Bill_Number=2371
As further information is made available, we will surely make you all aware.
Arizona House Bill 2371
REFERENCE TITLE: special taxing districts; sunsets
State of Arizona
House of Representatives
Forty-seventh Legislature
First Regular Session
2005
HB 2371
Introduced by
Representatives Allen J, Barnes, Boone: Biggs, Farnsworth, Rosati, Smith, Stump
AN ACT
AMENDING TITLE 48, CHAPTER 1, ARIZONA REVISED STATUTES, BY ADDING ARTICLE 12; RELATING TO SPECIAL TAXING DISTRICTS.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 48, chapter 1, Arizona Revised Statutes, is amended by adding article 12, to read:
ARTICLE 12. SPECIAL TAXING DISTRICT SUNSET PROVISIONS
48-281. Sunset election for special taxing districts; notice
A. NOTWITHSTANDING ANY OTHER LAW, ALL SPECIAL TAXING DISTRICTS THAT ARE SUBJECT TO THIS TITLE SHALL BE TERMINATED AS FOLLOWS:
1. EACH DISTRICT THAT IS SUBJECT TO THIS SECTION SHALL SUBMIT THE QUESTION OF DISTRICT TERMINATION TO A VOTE OF THE PERSONS WHO ARE ELIGIBLE TO VOTE IN ELECTIONS FOR THE DISTRICT. ON COMPLIANCE WITH THIS ARTICLE AND ON APPROVAL OF THE TERMINATION BY A MAJORITY OF THOSE VOTES CAST ON THE QUESTION, THE DISTRICT IS TERMINATED.
2. IF THE MAJORITY OF VOTES CAST ON THE QUESTION DOES NOT APPROVE THE TERMINATION, THE DISTRICT IS CONTINUED FOR A TERM OF TEN YEARS. THE DISTRICT SHALL BE SUBJECT TO A TERMINATION VOTE TEN YEARS AFTER THE FIRST ELECTION ON THAT QUESTION, AND EVERY TEN YEARS THEREAFTER.
B. THE DISTRICT TERMINATION ELECTION SHALL BE HELD AS A PART OF THE GENERAL ELECTION AND THE COUNTY OFFICER IN CHARGE OF ELECTIONS SHALL CONDUCT THE TERMINATION ELECTION. THE ELECTION SHALL BE HELD AS NEARLY AS PRACTICABLE AS OTHERWISE PROVIDED BY LAW. THE DISTRICT SHALL BEAR THE COSTS OF THE ELECTION.
C. FOR EACH DISTRICT TERMINATION ELECTION, THE BALLOT SHALL CONTAIN THE QUESTION "___(NAME OF SPECIAL TAXING DISTRICT)___ TERMINATION, YES" AND "___(NAME OF SPECIAL TAXING DISTRICT)____ TERMINATION, NO".
D. FOR ANY DISTRICT THAT IS TERMINATED PURSUANT TO THIS ARTICLE, THE COUNTY BOARD OF SUPERVISORS IN THE AFFECTED COUNTY SHALL RECORD IN THE OFFICE OF THE COUNTY RECORDER A NOTICE OF DISTRICT TERMINATION THAT CONTAINS THE LEGAL DESCRIPTION OF THE BOUNDARIES OF THE TERMINATED DISTRICT.
48-282. Limitations on financial obligations
NOTWITHSTANDING ANY OTHER LAW, A SPECIAL TAXING DISTRICT THAT IS SUBJECT TO THIS TITLE SHALL NOT ENTER INTO ANY FINANCIAL OBLIGATION OF MORE THAN FIFTEEN YEARS' DURATION. ANY FINANCIAL OBLIGATION EXECUTED IN VIOLATION OF THIS SECTION IS VOID.
48-283. Schedule of termination elections
NOTWITHSTANDING ANY OTHER LAW, THE FOLLOWING SPECIAL TAXING DISTRICTS ARE SUBJECT TO AN INITIAL TERMINATION ELECTION AT THE GENERAL ELECTION IN THE YEAR PRESCRIBED AND THEN AT THE GENERAL ELECTION THAT IS HELD EACH TEN YEARS THEREAFTER:
1. IN 2008, DISTRICTS FORMED PURSUANT TO CHAPTERS 2, 3, 9, 10 AND 15 OF THIS TITLE.
2. IN 2010, DISTRICTS FORMED PURSUANT TO CHAPTERS 4, 5, 6, 7, 8, 13, 14, 16, 18, 24, 31, 32, 33 AND 35 OF THIS TITLE.
3. IN 2012, DISTRICTS FORMED PURSUANT TO CHAPTERS 11, 12, 17, 19, 20, 21, 22, 25, 26, 27, 28, 29, 30 AND 34 OF THIS TITLE.
Sec. 2. Applicability of special taxing district financial limitations
Section 48-282, Arizona Revised Statutes, as added by this act, applies to any financial obligation executed on or after the effective date of this act.
