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HB2496 - 572R - H Ver
House Engrossed
revitalization
districts; construction contracts
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2496
AN
ACT
amending section 48-6808, Arizona Revised
Statutes; relating to REVITALIZATION districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 48-6808, Arizona Revised
Statutes, is amended to read:
START_STATUTE
48-6808.
Powers of a revitalization district
A. In addition to the powers otherwise granted to a
district pursuant to this article, a district
may
,
to further the implementation of the general plan
, may
:
1. Enter into contracts and spend monies for any
infrastructure purpose with respect to the district.
Any
construction contracts the district enters into pursuant to this article shall
comply with subsection F of this section.
2. Enter into intergovernmental agreements as
prescribed in title 11, chapter 7, article 3 for the financing, planning,
design, inspection, ownership, control, maintenance, operation or repair of
infrastructure or the provision of enhanced municipal services by the
municipality in the district, including an intergovernmental agreement with an
Indian tribe or community.
3. Sell, lease or otherwise dispose of district
property if the sale, lease or conveyance is not a violation of the terms of
any contract or bond resolution of the district.
4. Reimburse a municipality for providing enhanced
municipal services in the district.
5. Operate, maintain and repair infrastructure.
6. Establish, charge and collect user fees, rates or
charges for the use of any infrastructure or service.
7. Employ staff, counsel and consultants.
8. Reimburse a municipality for staff and consultant
services and support facilities supplied by the municipality.
9. Accept gifts or grants and incur and repay loans
for any infrastructure purpose.
10. 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.
11. After approval at an election held pursuant to
section 48-6818, levy and assess the costs of any infrastructure purpose on any
land benefited in the district.
12. Pay the financial, legal and administrative
costs of the district.
13. Enter into contracts, agreements and trust
indentures to obtain credit enhancement or liquidity support for its bonds and
process the issuance, registration, transfer and payment of its bonds and the
disbursement and investment of proceeds of the bonds.
14. With the consent of the governing body of the
municipality that formed the district, enter into agreements with persons
outside of the district to provide services to persons and property outside of
the district.
15. With the consent of the applicable governmental
entity, use public easements and rights-of-way in or across public
property, roadways, highways, streets or other thoroughfares and other public
easements and rights-of-way, whether in or out of the geographical
limits of the district or the municipality.
B. In connection with any power authorized by
statute, the district may:
1. Contract.
2. Enter into intergovernmental agreements pursuant
to title 11, chapter 7, article 3.
3. Adopt and change a seal.
4. Sue and be sued.
5. Enter into development agreements, as defined in
section 9-500.05.
C. The district shall not be used to finance or
facilitate the acquisition, operation, maintenance, construction or operation
of a sports stadium or other sports facility that is designed specifically for
or used specifically by a professional sports team, including a clubhouse, a
practice facility or any other related facility or on-site infrastructure or
related parking facilities for those purposes.� This subsection does not apply
to the financing, acquisition, operation, maintenance or construction of a
multipurpose event center.
D. Public infrastructure other than personalty may
be located only in or on lands owned by the state, a county, a municipality or
the district or dedicated or otherwise designated as public roadways, highways,
streets, thoroughfares, easements or rights-of-way, whether in or
out of the district or the municipality. Personalty may be used only
for purposes authorized by the district board.
E. An agreement pursuant to subsection A, paragraph
10 of this section 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. A person does not have
authority to compel the issuance or sale of the bonds of the district or the
exercise of any taxing power of the district to make repayment under any
agreement.
F. Any CONSTRUCTION contract the
district enters into must include provisions for all of the following:
1. Allowing 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.� The contractor shall provide written notice to the district at least
seven calendar days before the intended suspension or termination unless a
shorter notice period is prescribed in the construction contract. A
contractor shall not be deemed in breach of the construction contract for suspending
performance or terminating under this paragraph. A construction
contract shall not extend the time period for a contractor to suspend
performance or terminate under this paragraph.
2. Allowing A subcontractor to
suspend performance or terminate a contract with a general contractor or
subcontractor for a district if both of the following occur:
(
a
) the
district fails to make timely payment of amounts certified and approved for the
subcontractor's work.
(
b
) the
contractor fails to pay the subcontractor for that certified and approved
work. The subcontractor shall provide written notice to the
contractor and district at least three calendar days before the intended
suspension or termination unless a shorter notice period is prescribed in the
contract. A subcontractor shall not be deemed in breach for
suspending performance or terminating under this paragraph.
3. Allowing 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. The subcontractor shall provide
written notice to the contractor and district at least seven calendar days
before the intended suspension or termination unless a shorter notice period is
prescribed in the contract. A subcontractor shall not be deemed in
breach for suspending performance or terminating under this paragraph.
4. Allowing 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.� The subcontractor shall provide written notice to the contractor and
district at least seven calendar days before the intended suspension or
termination unless a shorter notice period is prescribed in the contract.� A
subcontractor shall not be deemed in breach for suspending performance or
terminating under this paragraph.
5. Allowing a contractor or
subcontractor that suspends performance as prescribed in this subsection 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.
6. Requiring the award of reasonable
attorney fees and costs to the successful party In any action or arbitration to
enforce rights under this subsection.
7. Requiring that any Written notice
prescribed by this subsection is deemed provided if either of the following
occurs:
(
a
) The written
notice is delivered in person to the individual, member or officer of the
entity for which it was intended.
(
b
) 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.
END_STATUTE
Sec. 2.
Applicability
Section 48-6808, Arizona Revised
Statutes, as amended by this act, applies to any revitalization district
infrastructure construction contract executed after the effective date of this
act.