community facilities
districts
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Committee on Energy Utilities and Technology |
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Committee on Counties and Municipalities |
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Caucus and COW |
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Third Read |
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As Passed the House |
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HB 2400 clarifies existing law concerning the steps that must be taken by a Community Facilities District in order to provide gas or electric service.
HB 2400 was held in the Committee on Energy Utilities and Technology.
The Arizona Community Facilities Act of 1988 allows municipalities to adopt a resolution of intent to form a Community Facilities District (CFD) if a petition has been signed by at least 25 percent of the property owners within the proposed district. After the public notification requirements have been met, and if there are no objections, a municipality may form a CFD. Among other powers granted pursuant to ARS § 40-709, a CFD may enter into contracts for the purpose of public infrastructure. Public infrastructure may include such things as sanitary sewage systems, water systems, public buildings, public safety facilities and fire protection facilities. General obligation, assessment and revenue bonds may be used at a tax-exempt rate to finance the CFD. The district board of the CFD may also levy an ad valorem tax on the assessed value of all the real and person property in the district.
However, the law stipulates that a CFD is not authorized to acquire, construct, operate or maintain electric generation or transmission facilities or natural gas distribution systems without the written consent of electrical or gas providers.