Bill Text: AZ HB2506 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: County island fire districts
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-20 - Referred to House WM Committee [HB2506 Detail]
Download: Arizona-2010-HB2506-Introduced.html
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REFERENCE TITLE: county island fire districts |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2506 |
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Introduced by Representative Murphy
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AN ACT
Amending sections 9-952, 48-806 and 48-853, Arizona Revised Statutes; relating to county island fire districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-952, Arizona Revised Statutes, is amended to read:
9-952. Disposition of fire insurance premium tax; definition
A. Not later than July 1, the state treasurer, using the information provided by the cities and towns and legally organized fire districts, the state fire marshal, the department of insurance and the department of revenue as provided in section 9‑951, subsection B, shall distribute the fire insurance premium tax to the respective incorporated cities and towns and legally organized fire districts in proportion to the full cash value of the real property and improvements in each incorporated city and town and legally organized fire district which that procures the services of a private fire company and in each area served by a department or legally organized fire district or a municipality. The warrant issued by the state treasurer to incorporated cities and towns and legally organized fire districts having organized fire departments and to legally organized fire districts shall be identified as "fire fighters' relief and pension fund". The warrant issued by the state treasurer to an incorporated city or town or legally organized fire district procuring the services of a private fire company, which a municipality or any other legally organized fire district that has a pension plan covering fire fighting personnel shall be identified for deposit in the municipality's general fund or, in the case of a fire district, in the fire fighters' relief and pension fund.
B. A fire district formed pursuant to title 48, chapter 5, article 3 shall transfer all monies received from the fire insurance premium tax pursuant to this section to the fire district's fire service provider.
C. For the purposes of this section, "Legally organized fire district" includes a district formed pursuant to title 48, chapter 5, article 3.
Sec. 2. Section 48-806, Arizona Revised Statutes, is amended to read:
48-806. Bond election; issuance and sale of bonds
A. Except for a district formed pursuant to section 48‑851, The district board or the elected chief and secretary‑treasurer may order an election by the qualified electors of the district to be held pursuant to title 16, chapter 2, article 1 to determine whether bonds shall be issued on behalf of the district. The order shall specify the maximum principal amount of bonds to be issued, the maximum number of years bonds of any issue or series may run from their date not exceeding thirty years, the purpose for which the bonds are to be issued, the maximum rate of interest which the bonds are to bear, the date and hours of the election and the location of the polling places. Copies of the order shall be posted in three public places within the district not less than twenty days prior to the date of the election, and if a newspaper is published within the county having a general circulation within the district, the order shall be published in the newspaper not less than once a week during each of the three calendar weeks preceding the calendar week of the election.
B. Except as provided in section 48-853, subsection B, paragraph 9, a district board formed pursuant to section 48‑851 shall not order an election for or issue bonds under this section.
C. Instead of publishing the notice described in subsection A of this section, the board of directors may mail a notice of election to each household containing a qualified elector of the district. The notice shall contain the same information described in subsection A of this section except that the notice shall not contain the location of all the polling places for that election. The notice shall contain the location of the polling place for that household's qualified electors. The notice shall be mailed at least thirty-five days before the election.
D. At the election the ballot shall contain the phrases "for the bonds" and "against the bonds". There shall be placed a square or other designated marking space in the same manner as used for candidates on ballots. The voter shall indicate a vote "for the bonds" or "against the bonds". No other question, word or figure need be printed on the ballot. The ballot need not be any particular size, nor need sample ballots be printed, posted or distributed but ballots shall comply with standards otherwise provided by law including requirements for electronic voting, if applicable.
E. If a majority of the qualified electors of the district voting at the election approves the issuance of bonds, the district board or the elected chief and secretary‑treasurer, as appropriate, may issue bonds in an aggregate principal amount not exceeding the lesser of six per cent of the value of the taxable property in the district as shown on the last property tax assessment roll before issuing the bonds or the maximum amount specified in the election order.
F. Bonds may be in such denominations, may be in registered or bearer form either as to principal or interest, or both, may mature at such times not exceeding the maximum maturity specified in the election order and may be subject to redemption prior to maturity, all as specified by the district board or elected chief and secretary‑treasurer, as appropriate, as provided in subsection E of this section. The district may engage the services of a depository to administer a book entry system for the bonds. The costs and expenses of such depository and any registrar or paying agent for the bonds shall be deemed to be interest expenses that may also be paid from the tax levy made pursuant to subsection I of this section.
G. Bonds shall be executed by the manual or facsimile signatures of the chairman and clerk of the district board or elected chief and secretary‑treasurer of the district. Coupons attached to the bonds shall bear the facsimile signature of the chairman of the district board or the elected chief of the district, as appropriate.
H. The district board may sell the bonds at public or private sale or through an on-line online bidding process. In addition, the district board may negotiate loan agreements or loan repayment agreements with the greater Arizona development authority in lieu of selling bonds where authority to sell bonds has been granted by the district's voters. The proceeds of sale on the bonds shall be deposited in an account of the fire district fund to be known as the capital fund to be applied for the purpose for which the bonds were issued.
I. After the bonds are issued, the district board or elected chief and secretary-treasurer, as appropriate, shall enter on the district's minutes a record of the bonds sold and shall annually determine the amount of the tax levy to pay the bonds and certify such amount to the board of supervisors of the county. The board of supervisors shall annually cause to be levied and collected a tax, at the same time and in the same manner as other taxes are levied and collected upon all taxable property in the district, sufficient to pay principal of and interest on the bonds as they become due and payable. Monies derived from the levy of the tax when collected shall be deposited in the debt service fund and shall be applied only to payment of the principal of and interest on the bonds. On payment of the outstanding bonded indebtedness of the district, any monies remaining in the debt service fund shall be used to reduce the district's property tax levy in the next fiscal year.
Sec. 3. Section 48-853, Arizona Revised Statutes, is amended to read:
48-853. District board; powers and duties; intergovernmental agreements; contract; administration; definition
A. A fire district formed pursuant to this article, through its board, shall:
1. Hold public meetings at least once each calendar month.
2. Prepare an annual budget that contains detailed estimated expenditures for each fiscal year and that clearly shows expenses of the district. The budget shall be posted in three public places and published in a newspaper of general circulation in the district thirty days before a public hearing at a meeting called by the board or fire chief to adopt the budget. Copies of the budget shall also be available to members of the public on written request to the district. Following the public hearing, the district board or appointed chief shall adopt a budget.
3. Require probationary employees in a paid sworn firefighter position, a reserve firefighter position or a volunteer firefighter position of a provider of fire protection and emergency medical services to submit a full set of fingerprints to the fire district. The fire district shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. This paragraph does not apply to personnel that are provided to a fire district by any public or private entity that provides fire protection and emergency medical services to the fire district and that has already fully complied with fingerprint submittal requirements as otherwise provided by law.
4. Appoint the fire chief of the fire service provider selected pursuant to paragraph 8 of this subsection, either public or private, as the fire chief for the district.
5. Adopt the fire code of the municipality whose municipal planning area includes the district except that the fire district's authority to conduct inspections shall apply only to commercial and industrial properties and shall not apply to residential properties.
6. Keep three copies of the applicable fire code, amendments and revisions on file for public inspection.
7. Notify the county board of supervisors of the cost of providing fire protection service and emergency medical service for each household or other structure in the district if the district provides service pursuant to paragraph 8, subdivision (a) or (b) of this subsection.
8. Act within sixty days after the formation of the district to do any of the following:
(a) Enter into an intergovernmental agreement with a municipal provider for fire protection services for the district. A municipal provider seeking to enter into an agreement with the district shall make a formal expression of intent to enter into an agreement with the district within twenty‑one days of district formation.
(b) Issue a request for proposals for nonmunicipal private providers of fire protection services for the district. A request for proposals may be issued only if no municipal providers of fire protection services have made an expression of intent seeking to enter into a fire protection agreement with the district. Notwithstanding any other law, municipal annexation shall not be undertaken during the term of any contract entered into between the district and a private fire service provider, except that in the one hundred eighty day period before the end of the contract, the municipality shall notify the residents of the opportunity to annex into the municipality. A resident shall notify the district and the municipality within ninety days before the end of the contract that the resident is annexing into the municipality and shall complete the annexation within ten days after the completion of the contract. If no district residents notify the municipality that the resident is annexing, the district may renew the contract automatically. If a resident proposes to annex into the municipality, the district shall issue a request for proposals again as prescribed in this subdivision.
(c) Before applying this subdivision, the district shall request an independent review by the county attorney of the negotiations, if any, that were conducted as prescribed in subdivision (a) of this paragraph and the request for proposals and resulting bids. After the independent review, the county attorney shall certify whether the negotiations and proposals were based on commercially reasonable assumptions. If the county attorney certifies that any one or more of the provisions are not commercially reasonable, the district and the other party to the negotiations have ten days to cure and continue negotiations before resubmitting information on the negotiations and proposals to the county attorney for certification. Notwithstanding any other law, the county attorney shall have access to sealed bids for purposes of this subdivision. The county attorney shall review and issue a certification pursuant to this subdivision within thirty days after the information and documents regarding negotiations and proposals are submitted to the county attorney. If a fire district does not enter into an intergovernmental agreement pursuant to subdivision (a) of this paragraph or enter into a contract pursuant to subdivision (b) of this paragraph, the surrounding municipality shall provide fire protection and emergency medical services except for services regulated pursuant to title 36, chapter 21.1 in the district immediately on request by the district, following final certification by the county attorney. The municipality shall be compensated by the district as follows:
(i) A three person board shall set the secondary property tax rate for the district. The district shall appoint one person to the board, the surrounding municipality shall appoint one person to the board, and the two appointees shall agree on a third person for the board. If the two appointees cannot agree on a third appointee within five days after the two persons are appointed, the county board of supervisors shall appoint the third person to the board.
(ii) The three person board shall meet and set the tax rate within thirty days after the third person is appointed to the board.
(iii) The district shall levy the tax at the rate as determined by the three person board and the tax shall be collected as other property taxes are collected. The county shall transfer all monies from the property tax levy to the district. On receipt of monies from the property tax levied, the district shall reimburse the county for the costs associated with the formation of the district, including administrative expenses, and shall transfer the remaining monies to pay the surrounding municipality for the annual cost of fire services as determined pursuant to this paragraph as the monies from the tax levy are received.
9. Require that any intergovernmental agreement or contract between the district and a provider of fire protection services to include:
(a) A term of duration between three and five years.
(b) A provision setting forth the cost of service and performance criteria.
(c) An acknowledgment of the right of the municipality to determine the location of future infrastructure if the district is in the municipality's planning area at the time of the execution of the contract.
10. If necessary, issue a request for proposals for providers of emergency medical services and enter into an intergovernmental agreement or contract with a provider of emergency medical services except for those services regulated by title 36, chapter 21.1.
11. Assess and levy a secondary property tax to pay for the costs of the fire protection service or emergency medical service except for those services regulated by title 36, chapter 21.1. A secondary property tax assessed pursuant to this section is not subject to the levy limitation prescribed by section 48‑807.
12. Except for claims associated with fire protection personnel, including workers' compensation claims and claims arising out of vehicle operations, defend, indemnify and hold harmless a municipal provider or any other provider of fire protection from and against any claims or expenses to which it may be subjected by reason of injury or death of any person or loss or damage to any property directly attributable to the provision of the services unless the services were provided in a grossly negligent manner. The fire district shall secure insurance sufficient to cover liability exposure.
B. A fire district formed pursuant to this article, through its board, may:
1. Contract for administrative staff services, if any, deemed necessary or appropriate to carry out its powers and duties, but a member of a district board, shall not be an employee of the district.
2. Retain a certified public accountant to perform an annual audit of district books.
3. Retain private legal counsel.
4. Sue and be sued.
5. Accept gifts, contributions, bequests and grants and comply with any requirements of such gifts, contributions, bequests and grants not inconsistent with this article.
6. Appropriate and expend annually such monies as are necessary for the purpose of fire districts belonging to and paying dues in the Arizona fire district association and other professional affiliations or entities.
7. Receive up to twenty-five thousand dollars in loans from existing county island fire districts, other fire districts, any agency of the county under the authority of the county board of supervisors or any other source to provide initial funding for the county island fire district until revenues may be collected as otherwise provided by law.
8. Negotiate a fire hydrant installation plan with the municipal provider. Only infrastructure that is reasonably related to the operation and maintenance of fire hydrants may be included in the plan. A fire hydrant installation plan shall include:
(a) The location of new fire hydrants to be constructed in the district's jurisdiction. Fire hydrants that are installed pursuant to a fire hydrant installation plan shall be sited in compliance with subsection A, paragraph 9, subdivision (c) of this section.
(b) The cost and construction schedule of the proposed fire hydrants.
(c) A description of the terms and conditions of any debt to be incurred to finance the installation of fire hydrants.
9. Issue bonds pursuant to section 48-806 for the purposes of implementing a fire hydrant installation plan as prescribed in paragraph 8 of this subsection.
C. The county attorney may advise and represent the district when in the county attorney's judgment such advice and representation are appropriate and not in conflict with the county attorney's duties under section 11‑532. If the county attorney is unable to advise and represent the district due to a conflict of interest, the district may retain private legal counsel or may request the attorney general to represent it, or both.
D. The chairperson and clerk of the district board or their respective designees, as applicable, shall draw warrants on the county treasurer for money required to operate the district in accordance with the budget and, as so drawn, the warrants shall be sufficient to authorize the county treasurer to pay from the fire district fund.
E. The district shall not incur any debt or liability in excess of taxes levied and to be collected and the money actually available and unencumbered at the time in the fund, except as provided in section 48-806 for the purpose of implementing a fire hydrant installation plan and except as provided in section 48‑807.
F. If a district formed under section 48‑851 agrees to provide fire and emergency medical services in a county island where a private provider of fire or emergency services already has facilities or provides service, the district and the private provider shall enter into an agreement covering the roles and relationships regarding mutual aid or backup and any services for which the district wishes to contract and any reimbursement or billing and collection practices. The agreement shall be executed before the district begins providing service in the county island. A district may enter into an intergovernmental agreement with appropriate regional automatic aid dispatch systems.
G. The district's records are subject to title 39, chapter 1 and the clerk of the county board of supervisors shall be the custodian of the district's public records unless the district designates an employee of the district to act as custodian.
H. Annexation of district property after formation of the district does not terminate any tax or other assessment against the real property in the district.
G. I. This section does not require a fire district or a city or town to provide fire protection or emergency medical services to an area of the county that is receiving services from a private provider, except as provided by a mutual aid or backup agreement pursuant to this section.
H. J. For the purposes of this article, "fire service" and "fire protection" include fire prevention, emergency medical services, inspection of commercial or industrial property where a known code violation exists and enforcement.
