Bill Text: AZ HB2584 | 2013 | Fifty-first Legislature 1st Regular | Introduced
Bill Title: Renewable energy and conservation districts
Spectrum: Bipartisan Bill
Status: (Failed) 2013-02-18 - House EENR Committee action: Discussed and Held [HB2584 Detail]
Download: Arizona-2013-HB2584-Introduced.html
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REFERENCE TITLE: renewable energy and conservation districts |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HB 2584 |
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Introduced by Representative Sherwood
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AN ACT
amending section 48-572, Arizona Revised Statutes; amending title 48, chapter 4, Arizona Revised Statutes, by adding article 7; relating to renewable energy and conservation IMPROVEMENT districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 48-572, Arizona Revised Statutes, is amended to read:
48-572. Purposes for which public improvements may be undertaken; powers incidental to public improvements
A. When If the public interest or convenience requires, the governing body of a municipality may:
1. Order the whole or any portion, either in length or width, of one or more of the streets of the municipality graded or regraded, paved or repaved, or otherwise improved or reimproved.
2. Order the construction, reconstruction or repair of any tunnel, subway, viaduct or conduit in, on, under or over any street, or land of the municipality or any land on, under or over which the municipality may have an easement or right-of-way therefor.
3. Order the construction or reconstruction of sidewalks, crosswalks, curbs, gutters, culverts, bridges, tunnels, siphons, manholes, steps, parkings and parkways and also pipes, hydrants and appliances for fire protection.
4. Order construction, reconstruction or acquisition of sewers, ditches, drains, conduits, pipelines and channels for sanitary and drainage purposes, or either or both thereof of, with outlets, cesspools, manholes, catch basins, flush tanks, septic tanks, connecting sewers, ditches, drains, conduits, channels and other appurtenances in, under, over or through any street, or any land of the municipality or any right-of-way granted or obtained for such that purpose, either within or without the limits of the municipality.
5. Order construction, reconstruction or acquisition of waterworks, ditches, canals, channels, conduits, pipelines and siphons, together with the necessary or usual appurtenances for carrying storm water or water from irrigation ditches, watercourses, streams or springs into, through or out of the municipality, in, under, over or through any street, or any land of the municipality or any right-of-way granted or obtained for such that purpose, either within or without the limits of the municipality.
6. Order construction, reconstruction or acquisition of breakwater levees or walls, docks, wharves, marinas, boat harbors and related facilities.
7. Order construction, reconstruction or acquisition of lighting plants and poles, wires, conduits, lamps, standards and other appliances for the purpose of lighting and beautifying the streets improved.
8. Order the whole or any portion of any off‑street parking area and entrances thereto of the municipality graded or regraded, paved or repaved, or otherwise improved or reimproved, order lighting plants and poles, wires, conduits, lamps, standards, and other appliances for the purpose of lighting, landscaping and beautifying the streets or off-street parking areas and entrances thereto to be improved and order construction on such the land of parking structures that may have any portion at, above or below grade. If in connection with any lot or parcel within a proposed assessment district adequate off-street parking facilities have been provided, such the lot or parcel shall be excluded from the assessment district and shall not be assessed for such the improvements if within the time and in the manner provided in section 48‑579, subsection C the owner or owners file a written objection to the extent of the assessment district. For purposes of this paragraph in cities having a zoning code or ordinance, unless the off-street parking facilities provided meet or exceed the requirements of the zoning code or ordinance for a lot or parcel of that size in that zone, then such the off‑street parking facilities shall not be deemed adequate. In cities not having a zoning code or ordinance, the facilities provided shall not be deemed adequate unless parking space for one motor vehicle is provided for each three hundred square feet of floor space in the building served by such the off‑street parking site. If any lot or parcel within a proposed assessment district organized for improvements provided for in this paragraph is zoned and used exclusively for single family residential purposes, such the lot or parcel shall be excluded from the assessment district and shall not be assessed for such the improvements if within the time and in the manner provided in section 48‑579, subsection C the owner or owners file a written objection to the extent of the assessment district.
9. Order the construction or reconstruction of any work incidental to or connected with the improvements set forth in this subsection.
10. Pursuant to section 48‑622, and notwithstanding any other law, construct, acquire or improve a wastewater treatment facility, drinking water facility or nonpoint source project with monies borrowed from or financial assistance including forgivable principal provided by the water infrastructure finance authority of Arizona.
11. Pursuant to article 7 of this chapter, provide for the use of energy or water efficient systems.
B. In addition to all powers specifically granted by or reasonably inferred under the provisions of this article, cities and towns, acting through their governing bodies, may:
1. Join with other cities or towns or any improvement district or sanitary district or the state, or any of its departments or agencies, the federal government or any of its departments, agencies or instrumentalities, in the construction, operation or maintenance of improvements authorized by this section.
2. Join with any other city, town, improvement district or sanitary district in improving streets running upon on or along the boundaries of the city or town and levy assessments or issue bonds for the proportionate part of the city or town of the cost of the improvement.
3. Accept from the state, or federal government, or any agency, department or instrumentality of either, grants for or in aid of the construction of any of the improvements provided by this article, and enter into contracts with the state, the federal government, or any agency, department or instrumentality of either or both, for the construction or supervision of construction by the state, the federal government or any agency, department or instrumentality of either or both of any such improvements, in accordance with the plans, specifications, rules and regulations of the state, the federal government, or any agency, department or instrumentality of either or both, but reserving to the city or town the right to assess against the property benefited by the improvement, and located within the city or town, that portion of the cost of the improvement which that does not qualify for aid under the state or federal grant.
Sec. 2. Title 48, chapter 4, Arizona Revised Statutes, is amended by adding article 7, to read:
ARTICLE 7. RENEWABLE ENERGY AND CONSERVATION
IMPROVEMENT DISTRICTS
48-751. Definitions
In this article, unless the context otherwise requires:
1. "Assessment" means a special assessment made under this article for the purpose of financing or otherwise securing payment obligations under a third-party lease or service agreement for an improvement made pursuant to this article.
2. "District" means a renewable energy and conservation improvement district formed pursuant to this article.
3. "District board" means the board of directors of the district, which shall be comprised of the members of the governing body of the municipality.
4. "Governing body" means the body that by law is constituted as the legislative department of the municipality.
5. "Improvement" means any system, fixture, product, equipment or device to be located on real property within the district for the purpose of making the property more energy or water efficient or independent, including any energy efficiency fixture, product, equipment or devices, renewable energy systems, electric vehicle charging systems, water conservation systems or water resource management systems.
6. "Municipality" means a city, town or county.
7. "Owner" means the person who owns the fee title to the real property.
8. "Real property" means any real property, other than a residential structure containing fewer than five dwelling units.
48-752. Formation
A. When the public interest or convenience requires, the governing body of a municipality on its own initiative following notice and a public hearing, may adopt a resolution ordering the formation of a district. The district shall be comprised of any real property located within the corporate boundaries of the municipality that from time to time is subject to a voluntary written agreement between the district and the owner of the real property in accordance with this article. The district may include noncontiguous real property wholly within the boundaries of the municipality. Two or more municipalities, by resolution of their respective governing bodies, may join together to form a multijurisdictional district for the purposes authorized by this article.
B. On its formation, the district is a special purpose district for purposes of article IX, section 19, Constitution of Arizona, and a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona. The district is a corporate and political body and, except as otherwise limited, modified or provided by this article, has all of the rights, powers and immunities of municipal corporations and municipal improvement districts.
C. The district shall keep records as otherwise provided by law. The members of the governing body are not eligible to receive compensation for their services as members of the district board. The governing body shall comply with title 38, chapter 3, article 3.1 as a separate political subdivision.
48-753. Powers of a district
A. A district shall have all the powers otherwise granted to a district pursuant to this article, including the power to:
1. Enter into contracts and intergovernmental agreements.
2. Loan or grant monies, or otherwise collect payments or fees under a third-party lease or service agreement, for any improvement in the district authorized pursuant to a written agreement as prescribed in section 48-754.
3. With the written consent of the owner, levy and collect assessments and record notices against real property within the district.
4. Employ staff and consultants or reimburse the municipality for staff, consultant services and support facilities supplied by the municipality.
5. Enter into an agreement with a public or private entity to administer the responsibilities and duties of the district on behalf of the district board.
6. Accept gifts, contributions, bequests, grants or loans for improvements and the administrative costs of the district and comply with any requirement of the gifts, contributions, bequests, grants or loans that is not inconsistent with this article.
7. Pay the financial, legal and administrative costs of the district.
8. Issue special assessment lien bonds.
9. Adopt and change a seal.
10. Sue and be sued.
48-754. Written agreements; consent of owners; lienholders
A. Only those owners of real property that are located within the corporate boundaries of the municipality for which the district has been formed, and who have entered into voluntary written agreements with the district board pursuant to this section shall be included within the district and subject to an assessment under this article. Those owners may enter into a voluntary written agreement with the district board for the purposes of financing improvements as prescribed in this article to be located on the owner's real property. The written agreement shall provide that the total cost of the improvements financed by the district including interest and fees as established by the district board shall be assessed against the owner's real property, and shall constitute the owner's consent to be subject to an assessment in that amount until paid in full pursuant to section 48-755.
B. For any real property that is subject to a first mortgage or first deed of trust at the time of the execution of the voluntary written agreement prescribed by subsection A of this section, the agreement shall include the written consent of the holder of that first mortgage or first deed of trust.
C. The district shall record a notice of the written agreement against the real property in the official records of the county where the real property is located. The notice shall contain, at a minimum, a description of the real property, the name and address of the owner and the district, a reference to the authority of the district pursuant to this article, the amount of the assessment and the duration of the written agreement.
48-755. Special assessments; assessment lien bonds
A. An assessment levied by voluntary written agreement pursuant to this article shall constitute a first lien on the real property subject only to general property taxes and prior special assessments. The lien shall continue until the assessment, including any interest, fees or penalties, is paid in full. The assessment shall be collectible in the manner and by the officers provided by law for the collection and enforcement of general taxes that the municipality is authorized to levy. All statutes providing for the levy and collection of county and city taxes, including the collection of delinquent taxes and sale of property for nonpayment of taxes, apply to the assessments to be levied by this article. Except as otherwise provided in a written agreement between the district and the owner pursuant to section 48‑754, if an owner fails to pay an assessment the procedures for collection of delinquent assessments, sale of delinquent property and issuance and effect of the deed prescribed by sections 48-601, 48-602, 48-603, 48‑604, 48‑605, 48-606 and 48-607 apply, as nearly as practicable, but the district or the municipality is not required to purchase the delinquent land at the sale if there is no other purchaser.
B. Notwithstanding any other law, at the time of a transfer of property ownership including foreclosure, the past due balances of any assessment under this article and any penalty shall be due for payment, but future payments shall continue as a lien on the real property and shall be the responsibility of the person or entity acquiring title to the real property. An assessment or penalty constitutes a lien in the same manner as general taxes or the municipality except that the lien does not have priority over the lien of an existing first mortgage or existing first deed of trust unless that lienholder consented to the assessment in a written agreement as prescribed in section 48‑754.
C. The district may issue and sell special assessment lien bonds pursuant to the procedures prescribed in section 48-721 or with procedures as similar to those as are practicable. The special assessment lien bonds shall be payable from amounts collected from the assessments under this article, from amounts available from time to time in any reserve fund established for those bonds and from any other amounts available for those purposes under this article.
Sec. 3. Legislative intent
The legislature finds, determines and declares that:
1. The development and creation of new jobs and opportunities within the energy and construction industries of this state are critically important to the growth of the economy in this state in the twenty-first century.
2. The installation of energy efficiency upgrades in homes and buildings within this state will continue to play a central and critical role in the future of this state and of the nation as a whole and will advance the security, economic well-being and public and environmental health of this state, as well as contribute to the energy independence of our nation.
3. The development, production and efficient use of renewable energy will continue to play a central and critical role in the future of this state and of the nation as a whole and will advance the security, economic well‑being and public and environmental health of this state, as well as contribute to the energy independence of our nation.
4. The conservation and efficient use of water resources likewise play a central and critical role in the future of this state and its individual cities and counties and serve to advance the security, economic well-being and public and environmental health of this state.
5. The inclusion of energy efficiency and renewable energy production projects and water conservation improvements and water resource management improvements for use in improvement districts, and the powers conferred under this article, as well as the expenditures of public monies made pursuant to this article, serve a valid public purpose, and that the enactment of this section is expressly declared to be in the public interest.
