The proposed bill would significantly update current statutes regarding the formation and operation of special taxing districts in Arizona, specifically introducing the concept of "state affordability infrastructure districts." Under the new provisions, real property owners would be able to petition the Arizona Finance Authority (AFA) for district creation until June 30, 2036, with detailed procedures for governance, financing, and public infrastructure project reviews. Key changes include a cap on AFA fees for processing formation petitions, requirements for specific documentation, and the establishment of a timeline for petition approval or denial. The bill also clarifies that districts cannot overlap with existing community facilities or revitalization districts and mandates that any increase in tax rates or assessments must be signed by all property owners in the district.

Additionally, the bill introduces various governance and financial management updates, such as requirements for district boards to prepare annual budgets, maintain transparency through official websites, and conduct nonpartisan elections. It specifies that districts have no zoning or land use authority, which remains with municipalities or counties, and outlines the conditions under which a district may be dissolved. The bill also emphasizes the need for financial accountability, including feasibility studies for public infrastructure projects and limits on the total outstanding amounts of bonds. Overall, these updates aim to enhance operational efficiency, transparency, and community engagement in the management of special taxing districts.

Statutes affected:
Introduced Version: 48-633
House Engrossed Version: 9-463.05, 11-495, 11-496, 11-1102, 9-500.05, 42-18116, 42-18205, 42-17401, 48-721, 48-7023, 9-500.23, 39-121.01, 39-121.03, 35-491, 48-6815, 11-1101
Senate Engrossed Version: 9-463.05, 11-495, 11-496, 11-1102, 9-500.05, 42-18116, 42-18205, 42-17401, 48-721, 48-7023, 9-500.23, 39-121.01, 39-121.03, 35-491, 48-6815, 11-1101