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 can petition the Arizona Finance Authority (AFA) to create these districts until June 30, 2036. The bill outlines detailed procedures for district formation, including requirements for petitions, governance, and financing, while capping AFA fees for processing petitions at $15,000 and prohibiting fees for similar petitions submitted within 90 days of a denial. It also mandates that districts cannot overlap with existing community facilities or revitalization districts and requires specific documentation for formation petitions.

Additionally, the bill clarifies the governance structure of district boards, stipulating that directors must be property owners or designated representatives, and outlines election processes and financial management requirements. It emphasizes that districts have no zoning or land use authority, which remains with municipalities or counties, and introduces provisions for financial accountability, including feasibility studies for public infrastructure projects and limits on operational and maintenance (O/M) tax rates. Overall, these updates aim to enhance transparency, accountability, and operational efficiency in the establishment and management of special taxing districts while ensuring compliance with existing regulations and promoting local development.

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
Chaptered 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