Bill Text: AZ HB2049 | 2021 | Fifty-fifth Legislature 1st Regular | Engrossed
Bill Title: Eminent domain; existing contracts
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2021-05-24 - Senate motion to reconsider third reading [HB2049 Detail]
Download: Arizona-2021-HB2049-Engrossed.html
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Senate Engrossed House Bill
eminent domain; existing contracts |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HOUSE BILL 2049 |
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AN ACT
amending section 9-511, arizona revised statutes; relating to eminent domain.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-511, Arizona Revised Statutes, is amended to read:
9-511. Power to engage in business of public nature; outside water rates; right of eminent domain; definitions
A. A municipal corporation may engage in any business or enterprise which that may be engaged in by persons by virtue of a franchise from the municipal corporation, and may construct, purchase, acquire, own and maintain within or without its corporate limits any such business or enterprise. A municipal corporation may also purchase, acquire and own real property for sites and rights-of-way for public utility and public park purposes, and for the location thereon of waterworks, electric and gas plants, municipal quarantine stations, garbage reduction plants, electric lines for the transmission of electricity, and pipelines for the transportation of oil, gas, water and sewage, and for plants for the manufacture of any material for public improvement purposes or public buildings. If a municipality provides water to another municipality, the rates it charges for the water to the public in the other municipality shall be one of the following:
1. The same or less than the rates it charges its own residents for water.
2. The same or less than the rates the other municipality charges its residents for water.
3. If the other municipality does not provide water, the average rates charged for water to the residents in the other municipality by private water companies.
4. Rates determined by a contract which that is approved by both municipalities and in which such rates are justified by a cost of service study or by any other method agreed to by both municipalities.
B. Nothing in This section shall does not affect a surcharge on water provided to another municipality adopted prior to before July 1, 1986 provided that the surcharge did not exceed thirty per cent percent of the rates the municipality providing the water charges charged its own residents and except that any increase in the percentage of such surcharge proposed after August 13, 1986 shall be subject to the requirements of this section.
C. The municipality may exercise the right of eminent domain either within or without its corporate limits for the purposes as stated prescribed in subsection A of this section, and may establish, lay and operate a plant, electric line or pipeline upon on any land or right-of-way taken thereunder under eminent domain, and may manufacture material for public improvement purposes and barter or exchange it for other material to be used in public improvements in the municipal corporation, or sell it to other municipal corporations for like purposes, and for any and all such purposes. if a municipality exercises the right of eminent domain to acquire a public utility business or enterprise, the municipality shall assume all existing assets and contractual obligations directly associated with providing current and future utility service in the certificate of convenience and necessity that is being condemned. a municipality is not required to assume a contractual obligation under this subsection if any of the following applies:
1. the municipality and all parties to the contractual obligation agree otherwise.
2. a municipality assuming the contractual obligation would be contrary to law.
3. the contractual obligation being assumed is between the public utility and one or more of its affiliates.
4. the municipality currently provides the service that is subject to the contractual obligation being assumed and extending that service to the area being condemned would be less expensive over the remaining term of the contractual obligation than assuming the contractual obligation.
5. the contractual obligation was executed on or after the date of the written offer and appraisal that is provided pursuant to section 12-1116, subsection a.
D. For the purposes of this section:
1. "affiliate" means any entity directly or indirectly controlling or controlled by or under direct or indirect common control with a public utility regardless of whether the direction of management policies occurs THROUGH ownership of voting securities, by contract or otherwise.
2. "Contractual obligation" means the obligation of the public utility business or enterprise to provide utility service under a will serve agreement or to construct, extend, expand, fund or accept utility infrastructure under a line extension agreement, water or wastewater facilities agreement, master utilities agreement, infrastructure coordination and financing agreement, main extension agreement or plant extension agreement or any other similar utility service agreement related to utility infrastructure.
3. "utility service" means providing electric, water, wastewater or gas to end-use consumers.
Sec. 2. Applicability
Section 9-511, Arizona Revised Statutes, as amended by this act, is applicable only to condemnation actions that commence after the effective date of this act.
