Arizona-2021-SB1659-Chaptered

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 48-805.02, Arizona Revised Statutes, is amended to read:

START_STATUTE48-805.02. Fire district annual budget; levy; requirements

A. A fire district shall prepare an annual budget that contains detailed estimated expenditures for each fiscal year and that clearly shows salaries payable to employees of the district as PRESCRIBED by subsection D of this section. The proposed budget summary shall be posted in three public places and a complete copy of the budget shall be published posted in a prominent location on the district's official website for at least twenty days before a public hearing at a meeting called by the board to adopt the budget. Copies of the proposed budget shall also be available to members of the public on written request to the district. Following the public hearing, the district board shall adopt a budget. A complete copy of the adopted budget shall be posted in a prominent location on the district's official website within seven business days after final adoption and shall be retained on the website for at least sixty months. For any fire district that does not maintain an official website, the fire district may shall comply with this subsection by posting on a website of an association of fire districts in this state.

B. Not more than ten days after the organization of a fire district and not later than August 1 of each year after the organization, the chairman chairperson of the district board shall submit to the county board of supervisors a budget estimate that contains certifications by item and that specifies the amount of money monies required for the maintenance and operation of the district for the ensuing year as prescribed by subsection D of this section.

C. Based on the budget submitted by the district, the board of supervisors shall levy the tax as prescribed in section 48-807, subsection F.

D. Every budget adopted by a fire district shall include the annual estimate of revenues and expenses of the fire district for the preceding and current fiscal year fully itemized as prescribed on forms provided by the auditor general and shall include the following:

1. A certification by the chairman chairperson and clerk of the district board as to both of the following:

(a) That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the money monies actually available and unencumbered at that time in the district general fund, except for those liabilities as prescribed in section 48-805, subsection B, paragraph 2 and sections 48-806 and 48-807.

(b) That the district complies with subsection F of this section.

2. THE ESTIMATED NUMBER OF FULL-TIME EMPLOYEES.

3. THE TOTAL ESTIMATED PERSONNEL COMPENSATION, WHICH SHALL SEPARATELY STATE THE EMPLOYEE SALARIES AND EMPLOYEE-RELATED EXPENSES FOR RETIREMENT COSTS AND HEALTH CARE COSTS.

4. THE AMOUNTS NECESSARY TO PAY THE INTEREST AND PRINCIPAL OF OUTSTANDING BONDS, AS APPROVED BY THE VOTERS PURSUANT TO SECTION 48-806, THE FIRE DISTRICT PROPOSES TO RAISE BY SECONDARY PROPERTY TAX LEVIES.

5. THE AMOUNTS NECESSARY TO CONSTRUCT, PURCHASE, LEASE and LEASE-PURCHASE PROPERTY OF THE DISTRICT AS AUTHORIZED UNDER SECTION 48-805, subsection B.

6. AN AMOUNT FOR UNANTICIPATED CONTINGENCIES OR EMERGENCIES.

7. THE AMOUNTS THAT ARE ESTIMATED TO BE RECEIVED FROM SOURCES OTHER THAN DIRECT PROPERTY TAXES.

8. THE AMOUNTS LEVIED FOR FIRE DISTRICT OPERATIONS ON THE SECONDARY PROPERTY TAX ROLL.

9. THE AMOUNTS LEVIED BY THE FIRE DISTRICT ASSISTANCE TAX FOR DISTRIBUTION TO THE FIRE DISTRICT.

10. A sEPARATE STATEment of THE SECONDARY PROPERTY TAX RATE FOR FIRE DISTRICT OPERATIONS AND THE REPAYMENT OF BONDS.

11. ANY AMOUNTS TO PROCURE SERVICES, INCLUDING THOSE OF AN ORGANIZED PRIVATE FIRE PROTECTION PROVIDER OR A FIRE DEPARTMENT of a NEIGHBORING CITY, TOWN or fire DISTRICT, OR FOR EMERGENCY MEDICAL SERVICES.

12. Any amounts OF ALL OTHER SERVICES AS AUTHORIZED UNDER section 48-805, as APPLICABLE.

13. THE BEGINNING FUND BALANCE, WHICH SHALL REFLECT THE RESTRICTED AND UNRESTRICTED UNENCUMBERED BALANCE FROM THE PRECEDING FISCAL YEAR.

2. 14. For each of the items listed in the proposed budget summary approved pursuant to subsection A of this section, the district shall an estimate of the revenue or expense for the next two fiscal years. Estimates The district shall be based base the estimate on the average increase or decrease of the item for the previous two fiscal years unless more certain information is available to the district. Estimates shall include any applicable levy or rate limitations.

3. 15. If a district's total estimate of expenses exceeds its total estimate of revenues for any fiscal year, the district shall undertake a study of merger, consolidation or joint operating alternatives. The study required by this paragraph shall be presented to the fire district board in a special public meeting called for the sole purpose of evaluating the study. The study shall include an identification of districts available for merger, consolidation or joint operations, and an analysis of the level of service and cost of service that may be provided to the residents of a merged, consolidated or jointly operated district as compared to the level and cost of service to the residents of the districts without any merger, consolidation or joint operations.

E. For any district that amends its budget after its initial adoption, the district board shall hold a public hearing on the proposed revision of the budget. The proposed revised budget must be considered and adopted during a public meeting immediately following the public hearing on the proposal. The public hearing on the proposed revised budget may be held at a regularly scheduled public meeting of the board of directors of the district. A fire district that proposes to amend its budget after its initial adoption shall comply with the posting, publishing and hearing notice requirements prescribed in subsection A of this section. This subsection does not apply to a district organized pursuant to article 3 of this chapter.

F. When if a fire district has adopted a budget, and the board of supervisors has levied a fire district tax as provided in subsection C of this section and the district has insufficient monies in its general fund with the county treasurer to operate the district, the chairman chairperson of the fire district board of directors, on or after August 1 of each year, may draw warrants, substitute checks or electronic funds transfers for the purposes prescribed in section 48-805 on the county treasurer, payable on November 1 of that year or on April 1 of the succeeding year. The aggregate amounts of the warrants, substitute checks or electronic funds transfers may not exceed ninety percent of the taxes levied by the county for the district's current fiscal year. If the treasurer cannot pay a warrant, substitute check or electronic funds transfer for lack of monies in the fire district general fund, the warrant or substitute check shall be endorsed and registered, or the electronic funds transfer shall be recorded, and the warrant, substitute check or electronic funds transfer shall bear interest and be redeemed as provided by law for county warrants, substitute checks or electronic funds transfers, except that the warrants, substitute checks or electronic funds transfers are payable only from the fire district general fund.

G. Any audit, report or review of a fire district made pursuant to section 48-253 shall be presented to the district board by the auditor telephonically or in another live electronic format during a public meeting of the board or, as directed by the board, in person at a public meeting of the board. The district board shall take formal action at the public meeting to review and receive the audit, report or review. THE AUDIT, report or review SHALL BE POSTED IN A PROMINENT LOCATION ON THE DISTRICT'S WEBSITE. FOR ANY FIRE DISTRICT THAT DOES NOT MAINTAIN AN OFFICIAL WEBSITE, THE FIRE DISTRICT SHALL COMPLY WITH THIS SUBSECTION BY POSTING THE AUDIT, report or review ON A WEBSITE OF AN ASSOCIATION OF FIRE DISTRICTS IN THIS STATE. The audit, report or review shall include an attestation by the auditor of the district as to all of the following:

1. That the district has not incurred any debt or liability in excess of taxes levied and to be collected and the monies actually available and unencumbered at that time in the district general fund, except for those liabilities as prescribed in section 48-805, subsection B, paragraph 2 and sections 48-806 and 48-807.

2. That the district complies with subsection F of this section.

3. Whether the audit, report or review disclosed any information contrary to the certification made as prescribed by subsection D, paragraph 1 of this section. END_STATUTE

Sec. 2. Section 48-820, Arizona Revised Statutes, is amended to read:

START_STATUTE48-820. Election to merge fire districts; notice; hearing; approval; joint meeting; merged district board

A. Except as provided in subsection L of this section, the board of supervisors shall make an order calling for an election to decide whether to merge fire districts when a resolution for merger from each district is submitted to the board. The board of supervisors shall not make an order calling for an election to merge the same fire districts more frequently than once every two years. Whether or not the districts are merged, the fire districts are each liable to reimburse the counties for the expenses of the election, including the cost of mailing any notices required pursuant to this section. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located as of the date of the adoption of the earliest resolution that called for the merger. The words appearing on the ballot shall be "(insert fire districts' names) merge as a fire district--yes" and "(insert fire districts' names) merge as fire district--no."

B. Except for a district organized pursuant to article 3 of this chapter, at least six days but not more than twenty days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of merging the fire districts, the board shall enter that fact on its minutes.

C. For a district organized pursuant to article 3 of this chapter, within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of merging the fire districts, the board shall enter the fact on its minutes.

D. Except as prescribed in subsection E of this section, two or more fire districts may merge if the governing body of each affected fire district, by a majority vote of the members of each governing body, adopts a resolution declaring that a merger be considered and a public hearing be held to determine if a merger would be in the best interests of the district and would promote public health, comfort, convenience, necessity or welfare. After each district adopts such a resolution, the governing body of each district by first class mail shall send notice of the day, hour and place of a hearing on the proposed merger to each owner of taxable property within the boundaries of the district. The notice shall state the purpose of the hearing and shall describe where information on the proposed merger may be obtained and reviewed. The information on the proposed merger shall be posted prominently on each affected fire district's website. The information provided by the affected districts and posted to each affected district's website shall include the name and a general description of the boundaries of each district proposed to be merged and a general map of the area to be included in the merger. The information posted to the website of each affected district also shall include an estimate of the assessed value of the merged district as of the date of the adoption of the earliest resolution that called for the merger as prescribed in subsection A of this section, the estimated change in property tax liability for a typical resident of the proposed merged district and a list of the benefits and injuries that may result from the proposed merged district. New territory may not be included as a result of the merger.

E. A noncontiguous county island fire district formed pursuant to section 48-851 shall not merge with a fire district formed pursuant to section 48-261.

F. The clerk of the governing body of each affected district shall post notice in at least three conspicuous public places in the district and shall also publish notice twice in a newspaper of general circulation in the county in which the district is located, at least ten days before the public hearing. The clerk of each governing body affected by the proposed merger shall also mail notice and a copy of the resolution in support of considering the merger to the chairman chairperson of the board of supervisors of the county or counties in which the affected districts are located. The chairman chairperson of the board of supervisors shall order a review of the proposed merger and may submit written comments to the governing body of each fire district located in that county within ten days after receipt of the notice.

G. At the hearing prescribed in subsection D of this section, each governing body of the district shall consider the comments of the board of supervisors, hear those persons who appear for or against the proposed merger and determine whether the proposed merger will promote public safety, health, comfort, convenience, necessity or welfare. If, after the public hearing each of the governing bodies of the districts affected by the proposed merger adopt a resolution by a majority vote declaring that the merger will promote public safety, health, comfort, convenience, necessity or welfare, each of the governing bodies of the districts affected by the proposed merger shall submit to the board of supervisors the resolutions that call for an election.

H. Before considering any resolution of merger pursuant to this section, the governing body of each affected district shall obtain written consent to the merger from any single taxpayer residing within each of the affected districts who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district as of the date the district's resolution is submitted to the board of supervisors. If written consent from the taxpayers prescribed by this subsection is not obtained, subsections A and B of this section apply, and the merger may only be accomplished by an election held by the affected district that was unable to obtain the written consent. The other affected districts may pursue merger by unanimous consent and, if one or more of those districts fail to obtain unanimous consent, any remaining affected districts that have obtained unanimous consent or received voter approval may proceed with the merger unless the governing body of one of those districts withdraws from the merger. If one of the districts withdraws, the remaining affected districts shall revise the information prescribed by subsection D of this section and post the revised information as prescribed in subsection F of this section. If one or any of the affected districts does not have a single taxpayer residing in the district who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district, this subsection does not apply to that district and written consent is not required for that district.

I. If the merger is approved as provided by subsection B, L or N of this section, immediately after the approval, the governing body of the affected district with the largest net assessed valuation as of the date of the adoption of the earliest resolution that calls for the merger as prescribed in subsection A of this section shall call a joint meeting of the governing bodies of all of the affected districts. At the joint meeting, a majority of the members of the governing body of each affected district constitutes a quorum for the purpose of transacting business. The members of the governing body of each affected district shall by majority vote of each separate governing body appoint a total of five persons from those currently serving on the governing bodies of the districts who shall complete their regular terms of office, except that not more than three of the persons appointed may serve terms that end in the same year. Not more than three members shall be appointed from the same fire district board. If the merger affects only two fire districts, the fire district with the largest net assessed valuation shall appoint three members to the governing body of the newly merged district and the district with the lesser net assessed valuation shall appoint two members. Subsequent terms of office for district board members shall be filled by election of board members who shall be qualified electors of the merged district.

J. The appointed governing body shall immediately meet and organize itself and elect from its members a chairman chairperson and a clerk. The appointed governing body shall immediately have the powers and duties prescribed by law for governance and operation of the newly merged district. The appointed board by resolution shall declare the districts merged and each affected district joined and the name of the newly merged fire district. The appointed governing body may take any action necessary to prevent interruption of fire protection and emergency medical services delivery. The newly merged districts may be temporarily operated separately by the appointed governing body to prevent service delivery interruption and for the purposes of transition of personnel and transferring assets and liabilities. The resolution and the names of the new board members for the newly organized district shall be sent to the board of supervisors, and the districts are deemed legally merged effective immediately on the adoption of the resolution. Any challenge to the merger must be filed within the thirty-day period after adoption of the resolution. If the newly merged district is authorized to operate an ambulance service pursuant to title 36, chapter 21.1, article 2, or if the newly merged district includes one or more districts that participated in a joint powers authority pursuant to section 48-805.01 and is authorized to operate an ambulance service pursuant to title 36, chapter 21.1, article 2, the name of the ambulance service shall be changed administratively by the director of the department of health services to the name of the newly merged district and a hearing on the matter is not required pursuant to section 36-2234.

K. The merger of two or more fire districts pursuant to this section or the consolidation with one or more fire districts pursuant to section 48-822 shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2.

L. If the requirements of subsection H of this section are met and the governing body votes required by subsection G of this section are unanimous, the following apply:

1. The governing bodies of each district may choose to merge by unanimous resolution without an election and subsections A and B of this section do not apply.

2. The governing bodies of each district may choose to hold an election on the question of merger and subsections A and B of this section apply.

M. If the merger is approved pursuant to subsection B, L or N of this section, the most recent edition of the fire code adopted by the affected districts shall be the fire code of the newly merged district. The district shall keep a copy of the adopted fire code on file for public inspection.

N. After the hearing prescribed by subsection D of this section and on compliance with subsection H of this section, the governing bodies of the affected districts may approve the merger by a majority vote of each affected district's governing body and subsections A and B of this section do not apply if either of the following conditions is met:

1. An affected district has obtained a study of merger, consolidation or joint operating alternatives as required by section 48-805.02, subsection D, paragraph 3.

2. An affected district's tax rate is at or above the maximum allowable tax rate prescribed in section 48-807. END_STATUTE

Sec. 3. Section 48-822, Arizona Revised Statutes, is amended to read:

START_STATUTE48-822. Election to consolidate fire districts; resolution; hearing

A. Except as provided in subsection F of this section, the board of supervisors shall make an order calling for an election to decide whether to consolidate two or more fire districts when a resolution for consolidation of fire districts from each district is submitted to the board of supervisors. The board of supervisors shall not make an order calling for an election to consolidate the same fire districts more frequently than once every two years. Whether or not the districts are consolidated, the participating fire districts are each liable to reimburse the counties for the expenses of the election, including the cost of mailing any notices. If the proposed district is located in more than one county, the resolutions shall be submitted to the board of supervisors of the county in which the majority of the assessed valuation of the proposed district is located as of the date of the adoption of the earliest resolution that called for the consolidation. The words appearing on the ballot shall be "(insert fire districts' names) consolidate as a fire district-–yes" and "(insert fire districts' names) consolidate as fire district-–no."

B. Within fourteen days after the election, the board of supervisors shall meet and canvass the returns, and if it is determined that a majority of the votes cast at the election in each of the affected districts is in favor of consolidating the fire districts, the board shall enter that fact on its minutes.

C. Except as proscribed prescribed by subsection D of this section, a fire district may consolidate with one or more other fire districts formed pursuant to section 48-261 as follows:

1. A resolution requesting the consolidation of a fire district is passed by a majority vote of the governing body requesting consolidation into another fire district. The requesting district shall send by first class mail the notice of request to consolidate districts to the fire district in which the consolidation is requested.

2. On receipt of the resolution requesting consolidation, and on approval by majority vote of the governing body receiving the request, two or more fire districts may consolidate if the governing body of each affected fire district by a majority vote of the members of each governing body adopts a resolution declaring that a consolidation be considered and a public hearing be held to determine if a consolidation would be in the best interest of the districts and would promote the public safety, health, comfort, convenience, necessity or welfare. The governing body of each district that adopts a resolution calling for a public hearing by first class mail shall send notice of the day, hour and place of a hearing on the proposed consolidation to each owner of taxable property within the boundaries of the district. The notice shall state the purpose of the hearing and shall describe where information on the proposed consolidation may be obtained and reviewed. The information on the proposed consolidation shall be posted prominently on each affected district's website. The information provided by the affected districts and posted to each affected district's website shall include the name and a general description of the boundaries of each district that is proposed to be consolidated and a general map of the area to be included in the consolidation. The information posted to the website of each affected district also shall include an estimate of the assessed value of the consolidated district, the estimated change in the property tax liability for a typical resident of the proposed consolidated district and a list of the benefits and injuries that may result from the proposed consolidated district. New territory may not be included as a result of the consolidation.

3. The clerk of the governing body of each of the fire districts affected by the proposed consolidation shall post notice in at least three conspicuous public places in the district and also shall publish or request to be published notice twice in a newspaper of general circulation in the county in which the district is located at least ten days before the public hearing. Publication by one affected district is sufficient for all affected districts if publication by more than one district would be duplicative. The clerk of each governing body affected by the proposed consolidation shall also mail notice and a copy of the resolution in support of considering consolidation to the chairman of the board of supervisors of the county or counties in which the affected districts are located. The chairman of the board of supervisors shall order a review of the proposed consolidation and may submit written comments to the governing body of each fire district located in the county within ten days after receipt of the notice.

4. At the hearing held as prescribed by paragraph 2 of this subsection, the governing body of the district shall consider the comments of the board of supervisors, hear those persons who appear for or against the proposed consolidation and determine whether the proposed consolidation will promote the public safety, health, comfort, convenience, necessity or welfare. If, after the public hearing, each of the governing bodies of the districts affected by the proposed consolidation adopt a resolution by a majority vote that the consolidation will promote the public safety, health, comfort, convenience, necessity or welfare, each of the governing bodies of the districts affected by the proposed consolidation shall submit the resolutions calling for an election to the board of supervisors.

5. If the proposal for consolidation is approved as provided in subsections A and B of this section, the governing body of the district into which consolidation was requested shall by resolution declare the districts consolidated and each affected district joined. Those persons currently serving as the governing body of the district into which consolidation was requested shall serve as the governing body of the consolidated district and complete their regular terms of office. The consolidated district governing body shall consist of at least five members who shall immediately have the powers and duties prescribed by law for governance and operation of the requesting district. The district requesting consolidation may be temporarily operated by the consolidated district governing board to prevent service delivery interruption and for the purposes of transitioning personnel and transferring assets and liabilities. The consolidated district by operation of law is the continuation of the existing district into which consolidation was requested.

6. If the consolidated fire district is authorized to operate an ambulance service pursuant to title 36, chapter 21.1, article 2, the name of the ambulance service shall be changed administratively by the director of the department of health services to the name of the newly consolidated district and a hearing on the matter is not required pursuant to section 36-2234.

7. If a proposed consolidated district would include property located in an incorporated city or town, in addition to the other requirements of this section, the governing body of the district shall provide notice to the city or town of the proposed consolidation and shall consider comments of the city or town council concerning the proposed consolidation at the public hearing held as prescribed by paragraph 2 of this subsection.

8. Before considering any resolution of consolidation pursuant to this section, the governing body of each affected district shall obtain written consent to the consolidation from any single taxpayer residing within each of the affected districts who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district as of the date of the adoption of the earliest resolution that called for the consolidation as prescribed in subsection A of this section. If one of the affected districts does not have a single taxpayer residing in the district who owns thirty percent or more of the net assessed valuation of the total net assessed valuation of the district, this paragraph does not apply to that district and written consent is not required for that district.

D. A noncontiguous county island fire district formed pursuant to section 48-851 shall not consolidate with a fire district formed pursuant to section 48-261.

E. The merger of two or more fire districts pursuant to section 48-820 or the consolidation with one or more fire districts pursuant to this section shall not expand the boundaries of an existing certificate of necessity unless authorized pursuant to title 36, chapter 21.1, article 2.

F. If the requirements of subsection C, paragraph 8 of this section are met and the governing body votes required by subsection C, paragraph 4 of this section are unanimous, the following apply:

1. The governing bodies of each or either affected district may choose to consolidate by unanimous resolution without an election and subsections A and B of this section do not apply.

2. The governing bodies of each or either affected district may choose to hold an election on the question of consolidation and subsections A and B of this section apply.

3. If fewer than all of the affected districts choose to hold an election, the proposed consolidation is not effective until approved at the election.

4. Consolidation may not occur unless each affected district approves the consolidation, either by resolution or by election.

G. If the consolidation is approved pursuant to subsection B or F of this section, the adopted fire code of the district into which the consolidation was requested shall apply to the entirety of the newly consolidated district.

H. After the hearing prescribed by subsection C, paragraph 2 of this section and on compliance with subsection C, paragraph 5 of this section, the governing bodies of the affected districts may consolidate by a majority vote of each affected district's governing body and subsections A and B of this section do not apply if either of the following conditions is met:

1. An affected district has obtained a study of merger, consolidation or joint operating alternatives as required by section 48-805.02, subsection D, paragraph 3.

2. An affected district's tax rate is at or above the maximum allowable tax rate prescribed in section 48-807. END_STATUTE