Purpose

Repeals the status of an agricultural improvement district as a public, political, taxing subdivision of the state and municipal corporation.

Background

During the Great Depression, Valley farmers were hard-pressed to make payments on the federal loans for Theodore Roosevelt Dam and other dams on the Salt River. To help reduce payments on the outstanding loans, the Arizona Legislature enacted a law that allowed the formation of the Salt River Project (SRP) Agricultural Improvement and Power District in 1937, which provided SRP with political subdivision status allowing the District to issue tax-free municipal bonds.

Currently, SRP consists of two companies: the Salt River Project Agricultural Improvement and Power District, which is a political subdivision of the state of Arizona, and the Salt River Valley Water Users' Association, which is a private corporation. The District provides electricity to retail customers in the Phoenix area. It operates or participates in seven major power plants and numerous other generating stations, including thermal, nuclear and hydroelectric sources. The SRP boards set policy and operate in accordance with the provisions of the Articles of Incorporation, District and Association bylaws and Arizona statutes.

The strike everything amendment to S.B. 1081 repeals the provision of the Arizona Revised Statutes (A.R.S.) allowing an agricultural improvement district status as a public, political, taxing subdivision of the state and municipal corporation.

Provisions

1. Repeals the status of an agricultural improvement district as a public, political, taxing subdivision of the state and municipal corporation immune from taxation on its property and bonds.

2. Provides for a general effective date.

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