SB1189

Official summary

SB1189 - 572R - Senate Fact Sheet Originally assigned to JUDE���������������������������������������������������������������������������������������� AS PASSED BY HOUSE NOW RAGE-Related������������������������������������������������������������ ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session AMENDED FACT SHEET FOR S.B. 1189 campaign spending; personal security ( NOW: construction contracts; revitalization districts ) As passed by the Senate, S.B. 1189 allowed a candidate committee to spend campaign monies for the personal security of the candidate and the candidate's family members. The House of Representatives adopted a strike-everything amendment that does the following: Purpose Adds requirements for construction contracts entered into by a revitalization district. Background The governing body of one or more municipalities may adopt a resolution declaring its intention to form a tax levying revitalization district to include property within the corporate boundaries of the district, if the public convenience and necessity require and on presentation of a petition signed by the owners of at least 51 percent of the net assessed property value proposed to be included in the district and a petition signed by at least 51 percent of the property owners in the area proposed to be included in the district. To further the implementation of the general plan, a revitalization district may enter into contracts and spend monies for any infrastructure purposes and enter into agreements with landowners and the municipality for the collection of fees and charges from landowners for infrastructure purposes, the advance of monies by landowners for infrastructure purposes or the granting of real property by the landowner for infrastructure purposes. An agreement between a landowner and a revitalization district may include agreements to repay all or part of such advances, fees and charges from the proceeds of bonds if issued or from advances, fees and charges collected from other landowners or users or those having a right to use any infrastructure. Public infrastructure, other than movable property, may be located only in or on lands owned by the state, the revitalization district or a municipality or county or dedicated or otherwise designated as public roadways, highways, streets, thoroughfares, easements or rights-of-way, whether in or out of the district or municipality. A revitalization district has perpetual succession and, if the district does not have bonds or other outstanding obligations, must be dissolved 10 years after the date of formation unless the governing bodies extend the district by resolution for another 10 years. The governing body by resolution may order the participation in the costs of any public infrastructure purpose, including the payment of bond debt service ( A.R.S. Title 48, Chapter 39, Article 1 ). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Requires any construction contract entered into by a revitalization district to include provisions that: a) allow a contractor to suspend performance or terminate a construction contract with a district for failure by the district to make timely payment of amounts certified and approved for payment; b) allow a subcontractor to suspend performance or terminate a contract with a general contractor or subcontractor for a district if: i. the district fails to make timely payment of amounts certified and approved for the subcontractor's work; and ii. the contractor fails to pay the subcontractor for that certified and approved work. c) allow a subcontractor to suspend performance or terminate if the district makes timely payment of certified and approved amounts for the subcontractor's work but the contractor fails to pay the subcontractor; d) allow a subcontractor to suspend performance or terminate if the district declines to approve and certify portions of the contractor's billing for the subcontractor's work for reasons that are not the fault of or directly related to that subcontractor's work; e) allow a contractor or subcontractor that suspends performance to cease furnishing further labor, materials or services until being paid the amount that was certified and approved, together with any reasonable costs incurred for mobilization resulting from any shutdown or restart of the project; f) require the award of reasonable attorney fees and costs to the successful party in any action or arbitration to enforce the prescribed contract rights; and g) require that any written notice of an intended contract suspension or termination is deemed provided if either of the following occurs: i. the written notice is delivered in person to the individual, member or officer of the entity for which it is intended; or ii. the written notice is sent by any method that provides written, third-party verification of delivery to the last known business address of the party giving notice. 2. Requires the contractor, if the district fails to make a timely payment, to provide written notice to the district at least seven calendar days before the intended contract suspension or termination unless a shorter notice period is prescribed in the construction contract. 3. Prohibits a contractor from being deemed in breach of the construction contract for suspending performance or terminating the contract if the district fails to make a timely payment. 4. Prohibits a construction contract from extending the time period for a contractor to suspend performance or terminate a contract if the district fails to make a timely payment. 5. Requires the subcontractor, if the district and contractor fail to make a timely payment, to provide written notice to the contractor and district at least three calendar days before the intended contract suspension or termination unless a shorter notice period is prescribed in the contract. 6. Prohibits a subcontractor from being deemed in breach for suspending performance or terminating a contract if the district and contractor fail to make a timely payment. 7. Requires the subcontractor, if the district makes a timely payment of certified and approved amounts for the subcontractor's work but the contractor fails to pay the subcontractor, to provide written notice to the contractor and district at least seven calendar days before the intended contract suspension or termination unless a shorter notice period is prescribed in the contract. 8. Prohibits a subcontractor from being deemed in breach for suspending performance or terminating a contract if the district makes timely payment of certified and approved amounts for the subcontractor's work but the contractor fails to pay the subcontractor. 9. Requires the subcontractor, if the district declines to approve and certify portions of the contractor's billing for the subcontractor's work for reasons that are not the fault of or directly related to that subcontractor's work, to provide written notice to the contractor and district at least seven calendar days before the intended contract suspension or termination unless a shorter notice period is prescribed in the contract. 10. Prohibits a subcontractor from being deemed in breach for suspending performance or terminating a contract if the district declines to approve and certify portions of the contractor's billing for the subcontractor's work for reasons that are not the fault of or directly related to that subcontractor's work. 11. Applies the construction contract requirements to any revitalization district infrastructure construction contract executed after the effective date. 12. Makes technical changes. 13. Becomes effective on the general effective date. Amendments Adopted by the House of Representatives � Adopted the strike-everything amendment relating to revitalization district construction contracts. House Action FMAE������������ 3/26/26����� W/D APPROP�������� 3/31/26����� DPA/SE��� 18-0-0-1 3 rd Read��������� 4/16/26����������������������� 50-0-10 Prepared by Senate Research April 16, 2026 JT/NRG