House of Representatives

HB 2400

community facilities districts

Sponsors: Hatch-miller, Blendu, Laughter; et al

DPA	Committee on Energy Utilities & Technology
dp	Committee on Counties & Municipalities
DPA	Caucus and COW
DPA	Third Read
X	As Passed the House

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.

History

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 personal property in the district.

The law stipulates, however, that a CFD may not acquire, construct, operate or maintain electric generation or transmission facilities or natural gas distribution systems, within the service area of an existing gas or electric provider, without the written consent of that provider.

Provisions

· Requires a Community Facilities District to obtain written consent from any affected gas or electric power provider before providing those services corresponding to the entity in question.

· Allows Community Facilities Districts to acquire, construct, operate or maintain generation or distribution facilities located in adjacent districts, as long as certain conditions are met.

· Clarifies that a Community Facilities District must obtain written consent from any affected gas or electric power provider, whether inside or outside of the boundaries of the district, before providing those services corresponding to the entity in question.

· Requires a Community Facilities District granted written consent to provide electric or gas service, to submit copies to the Governor, President of the Senate, Speaker of the House and each Corporation Commissioner, within 30 days of being granted that consent.

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45th Legislature

Second Regular Session 2 April 12, 2002

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