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HB4064 • 2026

municipal improvement districts; petitions

HB4064 - municipal improvement districts; petitions

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Selina Bliss
Last action
2026-03-17
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official summary does not provide specific details on combining multiple improvement projects into one resolution, which was included in the candidate explanation.

Municipal Improvement Districts; Petitions

This bill outlines requirements and procedures for municipalities to form improvement districts based on petitions from property owners.

What This Bill Does

  • Requires a municipality's governing body to adopt a resolution or ordinance of intention before ordering an authorized improvement, describing the proposed improvements.
  • Specifies that after resolving protests, if more than half of the taxable property units and assessed valuation within the proposed district support it through signed petitions, the governing body can form the improvement district.
  • Requires petitions for improvement districts to include details like the name of the proposed district, its necessity, boundaries, maximum assessment amount, and consent from petitioners.
  • Allows municipalities to combine two or more improvement projects into a single resolution without requiring additional petitions if certain conditions are met.
  • Prohibits assessing costs of improvements that benefit the general public against land in specific districts.

Who It Names or Affects

  • Municipalities and their governing bodies
  • Property owners within proposed improvement districts

Terms To Know

Improvement District
A designated area where property taxes or assessments are levied to fund specific improvements.
Petition
A formal request signed by property owners supporting the formation of an improvement district.

Limits and Unknowns

  • The bill does not specify how disputes over petitions or assessments will be resolved.
  • It is unclear what happens if a petition falls short of the required support from property owners.
  • There are no details on enforcement mechanisms for municipalities that do not comply with the outlined procedures.

Bill History

  1. 2026-03-17 Senate

    Senate second read

  2. 2026-03-16 Senate

    Senate Rules: None

  3. 2026-03-16 Senate

    Senate Government: None

  4. 2026-03-16 Senate

    Senate first read

  5. 2026-03-10 Senate

    Transmitted to Senate

  6. 2026-03-10 House

    House third read passed

  7. 2026-03-05 House

    House committee of the whole

  8. 2026-03-03 House

    House minority caucus

  9. 2026-03-03 House

    House majority caucus

  10. 2026-03-02 House

    House consent calendar

  11. 2026-02-11 House

    House second read

  12. 2026-02-10 House

    House Rules: C&P

  13. 2026-02-10 House

    House Government: DP

  14. 2026-02-10 House

    House first read

Official Summary Text

HB4064 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
GOV DP 5-2-0-0

HB4064
:
municipal improvement districts; petitions

Sponsor:
Representative Bliss, LD 1

House
Engrossed

Overview

Outlines
requirements and procedures for a municipality to pass an ordinance for an
improvement district.

History

Before ordering an authorized improvement, the governing body
of a municipality must adopt a resolution or ordinance of intention that
briefly describes the improvement. The resolution or ordinance may provide for
one or more improvements on one or more streets as a single improvement under
one or more contracts, may be combined with certain actions relating to public
streets or off-street parking areas, and must exempt a lot from assessment to
the extent the proposed work has already been completed.

If the governing body determines to form an improvement
district after the final resolution of protests, it must submit, within 120
days, a petition signed by owners of more than one-half of the taxable property
units and more than one-half of the assessed valuation within the proposed
district. Property that is tax-exempt is excluded from the valuation
calculation, owners of nontaxable property may not sign the petition, and on
verification of the petition signatures, the governing body may form the
district and order the improvement as provided by law.

When the proposed improvement, in the opinion of the
governing body, is of more than local or ordinary public benefit, it may order
the expense of the improvement chargeable upon another district. The governing
body of a municipality is prohibited from assessing the costs of an improvement
for general public benefit against land in a district. If a portion of the
expense of an improvement is for general public benefit, the city or town must
assess the district only for the portion of the expense that benefits the
property in the district (
A.R.S. � 48-576
).

Provisions

1.

Requires, when
passing a resolution or ordinance for an improvement district, a municipal governing
body to:

a.

provide an estimate
of the assessment, except that the assessment cannot exceed the amount
prescribed in the petition.

b.

receive a
petition prior to passing the resolution or ordinance. (Sec. 4, 5)

2.

Instructs
the municipal governing body, before passing a resolution or ordinance, to
receive a petition filed with the clerk and signed by the owners of real
property in the proposed improvement district. (Sec. 4)

3.

Requires the
petition for improvement districts, that will levy and collect ad valorem
taxes, to be signed by:

a.

a majority
of the individuals owning taxable property within the proposed area; and

b.

the owners
of 51% or more of the assessed valuation of the property within the proposed
district. (Sec. 4)

4.

Maintains
that petitions for improvement districts, other than tax levying improvement
districts, must be signed by:

a.

a majority
of the individuals owning real property within the proposed district; and

b.

the owners
of 51% or more of the real property, determined by acreage, within the proposed
district. (Sec. 4)

5.

Allows a
municipal governing body and other individuals to rely on the taxable property
units determined by the county assessor to determine a majority of the
individuals owning real or taxable property within the proposed improvement
districts. (Sec. 4)

6.

Restricts
property that is exempt from property taxes from being included in the
determination for an improvement district that will levy and collect ad valorem
taxes. (Sec. 4)

7.

Requires
property that is exempt from property taxes to be included in the determination
of a majority of the individuals owning real property, except the owners of
public property or rights-of-way owned by public property owners. (Sec. 4)

8.

Stipulates
that, in determining acreage within the area of a proposed district, public
property and rights-of-way must be excluded, with the exception of the
municipal governing body declaring in the resolution or ordinance of the
intention to do so. (Sec. 4)

9.

Exempts a
community facilities district issuing special assessment bonds from real or
taxable property determination requirements. (Sec. 4)

10.

Permits the
municipality and specified owners to enter into a written agreement waiving any
or all posting requirements and protest and objections if the outlined
requirements are met. (Sec. 4)

11.

Allows a
municipal governing body, on receipt of a petition signed by real property
owners, to adopt a resolution or ordinance of intention to order an improvement
district, have immediate jurisdiction to adopt the resolution and combine two
or more improvement projects into the resolution. (Sec. 4)

12.

Requires the
petition to include all of the following:

a.

the name of
the proposed improvement district;

b.

the
necessity for the proposed improvement district;

c.

that the
public convenience, necessity or welfare will be promoted by establishing the
improvement district and that the property to be included in the improvement
district will be benefited;

d.

a legal
description of the boundaries and a map that shows generally the location of
the proposed improvement district;

e.

a maximum
amount of the assessment;

f.

that the
petitioners consent to the assessment with the municipal governing body's
compliance with specified requirements;

g.

the county
assessor's parcel number for each lot;

h.

each
petition signer indicates that the applicable county assessor's parcel number
corresponds to their lot; and

i.

any other
matters required by statute. (Sec. 4)

13.

Allows a
municipality's governing body to adopt a resolution including adjacent
territory in an improvement district without requiring a petition. (Sec. 2, 3)

14.

Prohibits a municipality's
governing body from forming improvement districts for areas that will provide
outlined public services until the governing body receives the prescribed
petition. (Sec. 3)

15.

Removes
provisions relating to the requirements for proposing an improvement district.
(Sec. 4)

16.

Expands the
definition of
street
to include
on-street parking
. (Sec. 1)

17.

Makes
technical changes. (Sec. 1-4)

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3/5/2026��� Page 0 House Engrossed

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Current Bill Text

Read the full stored bill text
HB4064 - 572R - H Ver

House Engrossed

municipal improvement
districts; petitions

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 4064

AN
ACT

amending sections 48-571, 48-574, 48-575,
48-576 and 48-577, Arizona Revised Statutes; relating to municipal improvement
districts.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 48-571, Arizona Revised
Statutes, is amended to read:

START_STATUTE
48-571.

Definitions; appointment of officer

A. In this article and article 1 of this chapter,
unless the context otherwise requires:

1. "Assessment" or "assessment
roll" means a special assessment made under the provisions of this
article.

2. "Block" means any parcel of ground,
whether regular or irregular,
which
that

is bounded by streets, or by one or more streets and by one or more boundary
lines of the city or town.

3. "Clerk" includes any person or official
who performs the duties of clerk of the city or town.

4. "Contractor" includes the contractor's
personal representative or assignee.

5. "Council" or "governing body"

includes and
means the body or board
which
that
by law is constituted the legislative department of an
incorporated city or town.

6. "Delinquency" means delinquency in the
payment of an assessment made under the provisions of this article.

7. "Designated area" means an area of the
municipality
which
that
is either
designated pursuant to section 36-1479 as a slum or blighted area or
designated as a pocket of poverty or a neighborhood strategy area by the United
States department of housing and urban development, pursuant to title I of the
housing and community development act of 1977
,
as amended
(
p.l. 95-128;
42 United States Code sections 5301
through 5320) and the department of housing and urban development act (
p.l. 89-174;
42 United States Code section 3535(d)).

8. "Engineer" includes any person who,
under whatever official name, is the civil engineer or surveyor of the city or
town, and where there is no elected or appointed official, then the engineer is
the person who may be appointed or employed by the council to perform the
duties required of an engineer under the provisions of this article.

9. "Improvement bond" means a bond issue
under the provisions of this article.

10. "Lighting plants" includes electric
light plants, electric power plants, gas plants, distribution systems, poles,
parts, pipes, conduits, wires, tanks, reservoirs, generators for gas or
electricity, transmission lines, towers, lamps, transformers of every
character, machinery, apparatus, equipment and all appliances and structures
necessary or incidental to the construction, installation or operation of a
complete municipal electric light, power and gas plant and distribution system,
placed on the streets improved, though extended beyond.

11. "Lot" includes any portion, piece,
parcel or subdivision of land, and includes property owned or controlled by any
person as a railroad right-of-way.

12. "Mayor" includes the chairman or
president of the governing body.

13. "Municipality" or "city"
includes incorporated cities and towns.

14. "Owner" means the person in whom, on
the day the action or proceeding is commenced, appears the legal title to the
lot by deed recorded in the recorder's office, or the person in possession of
the lot under claim of title, or exercising acts of ownership over the lot for
the person, or as the personal representative of the owner.

15. "Railroad" includes street railroad
and interurban railroad.

16. "Sewers" includes tunnels,
excavations, ditches, drains, conduits, channels, outlets, outfalls, cesspools,
manholes, catch basins, flush tanks, septic tanks, connecting sewers of every
character, machinery, apparatus, equipment and all appliances and structures
necessary or incidental to the construction, installation or operation of a
complete sewer system, for either sanitary or drainage purposes.

17. "Street" includes avenues, alleys,
highways, lanes, crossings, intersections, courts, places and grounds now open
or dedicated or hereafter opened or dedicated to public use,
including
on-street parking,
and public ways.

18. "Street superintendent" or
"superintendent" includes any person who, under whatever official
name, is charged with the care or supervision of the streets of the city or
town.

19. "Time of delinquency" means the time
fixed when assessments become delinquent.

20. "Treasurer" includes any person who,
under whatever official name, is the custodian of the funds of the city or
town.

21. "Waterworks" includes pipes, hydrants,
reservoirs, wells, pumps, pumping plants, conduits, settling basins, filtering
plants of every character, machinery, apparatus, equipment and all appliances
and structures necessary or incidental to the construction, installation or
operation of a complete municipal waterworks system, for fire protection, or
for domestic irrigation, mechanical or power purposes, placed on the streets
improved, though extended beyond.

22. "Work" or "improvement"
includes any or all of the improvements mentioned and authorized to be made in
this
article
and article 1 of this chapter and the
construction, reconstruction and repair of all or any portion of the
improvements, and all labor, services, incidental expenses and material
necessary or incidental to the construction, reconstruction or repair.

B. In any city or town having no officer in this
article designated, or performing like duties, the governing body may appoint a
suitable person to discharge the duties.
END_STATUTE

Sec. 2. Section 48-574, Arizona Revised
Statutes, is amended to read:

START_STATUTE
48-574.

Improvement districts for operation, maintenance, repair and
improvement of pedestrian malls, off-street parking facilities, retention
and detention basins and parkings and parkways

A. In addition to the purposes for which an
improvement district may be formed under
the provisions of

section 48-572, an improvement district may be formed for the sole
purpose of the operation, maintenance, repair and improvements of pedestrian
malls, off-street parking facilities, retention and detention basins and
parkings and parkways.

B. Subject to the powers granted and the limitations
contained in this section, the powers and duties of the governing body of the
municipality and the procedure to be followed shall be as provided in this
article for other types of special improvement districts.

C. If a petition for the formation of an improvement
district under
the provisions of
this section is presented
to the governing body purporting to be signed by all of the real property
owners in the proposed district, exclusive of mortgagees and other lienholders,
the governing body, after verifying the property ownership and making a finding
of that fact, shall adopt a resolution of intention to order the improvement
pursuant to
the provisions of
section 48-576 and
shall have immediate jurisdiction to adopt the resolution ordering the
improvement pursuant to
the provisions of
section 48-581,
without the necessity of the publication and posting of the resolution of
intention provided for in section 48-578.

D. The governing body shall make annual statements
and estimates of the expenses of the district, which shall be provided for
either:

1. By the levy and collection of ad valorem taxes
upon

on
the assessed value of all the real
and personal property in the district.

2. By assessment of the total sum
upon
on
the several lots, each respectively in proportion to the
benefits to be received by each lot.

E. If the expenses of the district are provided for
by ad valorem taxes, the governing body shall publish notice, have hearings and
adopt the taxes at the times and in the manners provided for incorporated
cities and towns by the applicable portions of title 42, chapter 17, article 3. The
governing body, on or before the third Monday in August of each year, shall
fix, levy and assess the amount to be raised by ad valorem taxes
upon

on
all of the property of the district. If the
expenses of the district are assessed
upon

on
the several lots in proportion to the benefits received by each lot,
the governing body shall follow the procedures established in section 48-575
for the assessment and collection of the assessments. All statutes
providing for the levy and collection of general county taxes, including the
collection of delinquent taxes and sale of property for nonpayment of taxes,
shall be applicable to the district taxes provided for under this section.

F. An improvement district formed under
the provisions of
this section shall not be authorized to issue
improvement bonds.

G. No improvement district formed under
the provisions of
this section shall be authorized to engage in
any activity other than as provided in subsection A of this
section. If the municipality is willing to participate in the cost
of the district, the governing body
may
, by resolution,
may
summarily order such participation.

H. The formation of an improvement district under
the provisions of
this section shall not prevent the subsequent
establishment of improvement districts for any other purpose authorized by law.

I. If, in the opinion of the governing body, any
portion of the territory of a district formed under this section is no longer
benefited by being a part of the district, the governing body
may
,
by resolution,
may
summarily delete from the district
formed under this section any area and may form a new district from the balance
of the original district formed under this section.

J. If, in the opinion of the governing body,
territory adjacent to a district formed under this section would benefit from
being a part of the district, the governing body, by resolution, may include
the territory in the district formed under this section if the following
conditions are met:

1. Improvements that meet the standards and
specifications established by the governing body have been constructed in the
territory and will be used for the purposes of the district.

2. Any required public dedications of property have
been made or will be made before the inclusion of the territory in the
district.

3. Including the territory in the district will not
adversely affect the district.

4. Notice of the proposed inclusion of the territory
in the district has been published in five consecutive issues of a daily
newspaper or two consecutive issues of a weekly or semiweekly newspaper of
general circulation published in the municipality and a public hearing has been
held to consider the inclusion of the territory in the district.

5. Notice has been sent by first class mail at least
ten days
prior to

before
the hearing
specified in paragraph 4 of this subsection with an accurate map of the
territory proposed for inclusion in the district to each owner of real and
personal property within the district and in the proposed area of inclusion as
shown on the statement furnished pursuant to subsection K of this section that
is now or would be subject to taxation by the district in the event of
inclusion of the proposed area.

K. The county assessor and the department of
revenue, respectively, shall furnish to the district within thirty days after a
request a statement in writing showing the name and the address of each owner
of real and personal property within the district and in the proposed area of
inclusion that is now or that would be subject to taxation by the district in
the event of inclusion of the proposed area.

L. Within ten days after the governing body adopts a
resolution pursuant to subsection J of this section, the municipality shall
record the resolution in the office of the county recorder in the county in
which the district is located to give notice of the inclusion of the territory
in the district to all property owners in the district. If, before
the governing body adopts the resolution pursuant to subsection J of this
section, a majority of the property owners, by area, of either the original
district formed under this section or the territory proposed to be included in
the district files with the governing board written objections to the proposed
inclusion of the territory, the territory shall not be included in the
district.
The governing body may adopt a resolution
pursuant to subsection J of this section without REQUIRING a petition to be
filed pursuant to section 48-576, subsection A.

M. Within ten days after adoption of the resolution
of intention to order the improvement pursuant to section 48-576, the
municipality shall record the resolution in the office of the county recorder
in the county in which the district is located to give notice of formation of
the district to all property owners within the district.

N. For the purposes of this subsection, a property
owner is an owner of real property, exclusive of mortgagees and other
lienholders, that is within an improvement district that was formed as
prescribed by this section. A property owner may petition the governing body to
dissolve the district pursuant to the following procedures:

1. A property owner shall file with the clerk of the
governing body in which the district is located a written notice of the
property owner's intent to circulate a petition to dissolve the
district. The notice shall include the name, address and telephone
number of at least one property owner living within the district who intends to
circulate the petition, the name, location and general purpose of the district
which
that
is to be dissolved and a true
and concise statement of two hundred words or less explaining the advantages of
dissolving the district. A petition shall not be circulated for
thirty days after the property owner files with the governing body the notice
of intent to circulate a dissolution petition.

2. The governing body may provide a form of petition
to be used to dissolve the district. Any petition shall include the
statement provided in the notice of intent to circulate a petition regarding
the advantages of dissolving the district.

3. The governing body may provide a true and concise
written statement of two hundred words or less regarding the petition or
dissolution of the district. If so provided, the property owner must
circulate this statement affixed to the petition.

4. Property owners
shall submit to the clerk of the governing body a petition for the dissolution
of an improvement district formed under this section that purports to be signed
by more than fifty
per cent
percent

of the property owners in the district.

5. Within twenty days
of

after
receipt of the signed petition, the governing body shall
verify that the petition is signed by more than fifty
per cent
percent
of the property owners as set forth in paragraph 4 of
this subsection.

6. If the governing body finds the petition contains
valid signatures of more than fifty
per cent
percent
of the property owners, the governing body shall set
the date for dissolution of the district within ninety days. The
district may continue to operate after dissolution only as needed to collect
money and make payments on any outstanding district obligations.

7. Each property in the district with outstanding
assessments or liens attached shall remain subject to those assessments or
liens for payment of the existing obligations of the district, notwithstanding
dissolution of the district.

8. If a district formed under this section
subsequently dissolves as prescribed in this subsection, the governing body may
not attempt to form any district for the same purpose for at least two years
after the date the district is dissolved if the proposed district includes
lands formerly located within the dissolved district.

O. Districts that are located in slum or blighted
areas as defined in section 36-1471 are exempt from subsection N of this
section.
END_STATUTE

Sec. 3. Section 48-575, Arizona Revised
Statutes, is amended to read:

START_STATUTE
48-575.

Improvement districts for enhanced municipal services

A. In addition to the purposes for which an
improvement district may be formed under
the provisions of

section 48-572, an improvement district may be formed within a designated
area to provide public service within the district at a higher level or greater
degree than provided in the remainder of the community, including such services
as public safety, fire protection, refuse collection, street or sidewalk
cleaning or landscape maintenance in public areas, planning, promotion,
transportation and public parking.

B. The powers and duties of the governing body of
the municipality and the procedure to be followed shall be as provided in this
article for other types of special improvement districts.

C. If a petition for the formation of an improvement
district under
the provisions of
this section is presented
to the governing body purporting to be signed by all of the real property
owners in the proposed district, exclusive of mortgagees and other lienholders,
the governing body, after verifying such ownership and making a finding of such
fact, shall adopt a resolution of intention to order the improvement pursuant
to
the provisions of
section 48-576 and shall have
immediate jurisdiction to adopt the resolution ordering the improvement
pursuant to
the provisions

of
section
48-581, without the necessity of the publication and posting of the
resolution of intention provided for in section 48-578.
For
IMPROVEMENT districts formed pursuant to this section after the effective date
of this amendment to this section, the governing body may not order the
IMPROVEMENTS prescribed by subsection A of this section until after the
governing body has received a petition prescribed by section 48-576, subsection
A.

D. The engineer shall make duplicate diagrams of the
property contained within the improvement district. The diagram
shall show each separate lot numbered consecutively, the area in square feet of
each lot, and the area in square feet of any building or buildings located on
each lot.
Prior to
before

making any assessment
upon

on
the
district, the diagram shall be approved by the governing body.

E. The governing body shall make annual statements
and estimates of the expenses of the district, and shall assess the total sum
upon
on
the several lots, each
respectively in proportion to the benefits to be received by each
lot. When the assessments have been completed, the governing body
shall fix a time when it will hear and pass
upon
on
the assessments and the prior proceedings relating thereto
,
which shall not be less than twenty days
from
after
the date of the notice. Notice of hearing
shall be given in the manner provided by section 48-590, subsection
E. Any person owning real property affected by the assessment who
has any objection to the legality of the assessment, or to any of the previous
proceedings connected therewith,
may prior to
before
the time fixed for the hearing
may
file
a written notice briefly specifying the grounds of the objection. At
the time fixed for the hearing or at any time not later than ten days
thereafter to which the hearing may be postponed, the governing body shall hear
and pass
upon
on
the
objections. The decision of the governing body shall be final and
conclusive
upon
on
all persons
entitled to object as to all errors, informalities and irregularities
which
that
the governing body might have
remedied or avoided any time during the progress of the proceedings.

F. The assessments for the annual expenses shall be
collectible in the manner and by the officers provided by law for the
collection and enforcement of general taxes the municipality is authorized to
levy. All statutes providing for the levy and collection of county
and city taxes, including the collection of delinquent taxes and sale of
property for nonpayment of taxes, shall be applicable to the district
assessments provided for under this section.

G. An improvement district formed under
the provisions of
this section shall not be authorized to issue
improvement bonds.

H. No improvement
district formed under
the provisions of
this section shall
be authorized to engage in any activity other than as provided in subsection A
of this section. If the municipality is willing to participate in
the cost of the district, the governing body
may
, by
resolution,
may
summarily order such participation.

I. The formation of an improvement district under
the provisions of
this section shall not prevent the subsequent
establishment of improvement districts for any other purpose authorized by law.

J. If, in the opinion of the governing body, any
territory of a district formed under this section is not benefited by being a
part of the district, the governing body
may
, by
resolution,
may
exempt such territory from assessment
under this chapter, or if any portion of the territory of a district formed
under this section is no longer benefited by being a part of the district, the
governing body
may
, by resolution,
may
summarily
delete from the district formed under this section any such area and may form a
new district from the balance of the original district formed under this
section.

K. Any real property that is within the boundaries
of the district, that is
utilized
used

for residential purposes and that is not specifically benefited by the public
services at a higher level or greater degree shall be exempt from assessment
pursuant to this section for that year. Existing improved real
property
utilized
used
for
residential purposes with four units or less per building at the time of
formation of the district is presumed to not be specifically benefited by a
public service at a higher level or greater degree.

L. Within ten days after adoption of the resolution
of intention to order the improvement, the municipality shall record the
resolution in the office of the county recorder in the county in which the
district is located in such a way as to give notice of formation of the
district to all property owners within the district.

M. If, in the opinion of the governing body of the
municipality, territory adjacent to a district formed under this section would
benefit from being a part of the district, the governing body, by resolution,
may include the territory in the district formed under this section if all of
the following conditions are met:

1. Including the territory in the district will not
adversely affect the district.

2. Notice of the proposed inclusion of the territory
in the district has been published in five consecutive issues of a daily
newspaper or two consecutive issues of a weekly or semiweekly newspaper of
general circulation published in the municipality and a public hearing has been
held to consider the inclusion of the territory in the district.

3. Notice, including
an accurate map of the territory proposed for inclusion in the district, has
been sent by first class mail at least ten days before the hearing prescribed
in paragraph 2 to each owner of property listed on the tax roll within the
district and in territory that is now or would be subject to taxation by the
district in the event of inclusion of the territory.

N. Within ten days after the governing body of the
municipality adopts a resolution pursuant to subsection M of this section, the
municipality shall record the resolution in the office of the county recorder
in the county in which the district is located to give notice of the inclusion
of the territory in the district to all property owners in the
district. If, before the governing body of the municipality adopts
the resolution pursuant to subsection M of this section, a majority of the
property owners, by area, of either the original district formed under this
section or the territory proposed to be included in the district files with the
governing body of the municipality written objections to the proposed inclusion
of the territory, the territory shall not be included in the district.
�The governing body may adopt a resolution pursuant to subsection M of
this section without REQUIRING a petition to be filed pursuant to section
48-576, subsection A.

O. An improvement district to provide enhanced
municipal services may continue to exist in an area that is no longer in a
designated area as defined in section 48-571, if at the time of district
formation all of the following apply:

1. The area contained in the improvement district
has been in a designated area for five or more years.

2. Not more than ten
per cent
percent
of the frontage of the property fronting on the
proposed improvement, or if the cost of the improvement is to be made
chargeable on a district, not more than ten
per cent
percent
of the frontage of the property contained within the
limits of the improvement district, is owned by the same person.

3. Not more than one-third of the property
owners by frontage of the area contained in the improvement district files with
the governing body of the municipality written objections to the improvement
district.

4. The municipality otherwise complies with
the provisions of
this article for the process of forming the
improvement district.
END_STATUTE

Sec. 4. Section 48-576, Arizona Revised
Statutes, is amended to read:

START_STATUTE
48-576.

Resolution or ordinance of intention to order improvement;
petition

A. Before ordering an improvement authorized by this
article, the governing body of the municipality shall comply with both of the
following:

1. Pass a resolution or ordinance of intention
so
to
do
make an IMPROVEMENT
,
briefly describing the improvement
and providing an estimate of
the assessment, except that the assessment estimate may not EXCEED the maximum
assessment amount that is included in the petition as prescribed by this
section
. By the resolution or ordinance and the proceedings
subsequent thereto, one or more improvements may be made on one or more streets
and shall constitute one improvement and be constructed under one or more contracts. The
resolution or ordinance of intention may be combined in a single resolution or
ordinance of intention to open, extend, widen, straighten or close public
streets or off-street parking areas pursuant to section 48-505. If
the work proposed is already done for a lot, the lot shall be excepted from the
assessment therefor to the extent of the work done.

2. If the governing body determines
that the district should be formed after the final resolution of any protests
made pursuant to section 48-579, the governing body shall submit within
one hundred twenty days to the city or town clerk a petition to form the
district that is signed by owners of more than one-half of the taxable property
units within the area of the proposed district and that is signed by persons
owning collectively more than one-half of the assessed valuation of the
property within the area of the proposed district.� Property that is exempt
pursuant to title 42, chapter 11, article 3 is not considered in
determining the total assessed valuation of the proposed district and owners of
property that is not subject to taxation are not eligible to sign the
petition. On verification of the petition signatures, the governing
body may form the improvement district and order the improvement as otherwise
provided by law.

2. Beginning on the effective date of
this amendment to this section, before passing a resolution or ordinance of
intention prescribed in paragraph 1 of this subsection, the governing body must
receive a petition that is filed with the clerk and signed by the owners of
real property in the proposed improvement district as follows:

(
a
) For
improvement districts that are formed under section 48-574 that will levy and
collect ad valorem taxes, the petition shall be signed by both of the
following:

(
i
) A majority
of the persons owning taxable property within the area of the proposed
improvement district.

(
ii
) The owners
of fifty-one percent or more of the assessed valuation of the property within
the area of the proposed improvement district. Property that is
exempt pursuant to title 42, chapter 11, article 3 is not considered in determining
the total assessed valuation of the proposed improvement district and owners of
property that is not subject to taxation are not eligible to sign the petition
required by this subdivision.

(
b
) For
improvement districts that are authorized under this chapter other than tax
levying improvement districts formed under section 48-574, the petition shall
be signed by both of the following:

(
i
) A majority
of the persons owning real property within the area of the proposed improvement
district.

(
ii
) The owners
of fifty-one percent or more of the real property, determined by acreage,
within the area of the proposed improvement district.

(
c
) For the
purposes of this paragraph:

(
i
) To
determine a majority of the persons owning taxable property within the area of
the proposed improvement district pursuant to subdivision (
a
), item (
i
), of this paragraph, the governing
body and other persons may rely on the taxable property units as determined by
the county assessor as of the date of the petition.� This determination of a
majority of the persons owning taxable property may not include property that
is exempt pursuant to title 42, chapter 11, article 3.

(
ii
) To
determine a majority of the persons owning real property within the area of the
proposed improvement district pursuant to subdivision (
b
),
item (
i
), of this PARAGRAPH, the governing body and other
persons may rely on the taxable property units as determined by the county
assessor as of the date of the petition.� This determination of a majority of
the persons owning real property shall include real property that is exempt
pursuant to title 42, chapter 11, article 3, but may not include the owners of
public property prescribed by section 48-582 or rights-of-way owned
by those owners of public property.

(
d
) For
purposes of subdivision (
b
), item (
ii
) of this paragraph, to determine the acreage within the area of the
proposed district, public property and rights-of-way shall be excluded. Public
property may be included within the proposed improvement district subject to
the declaration of the governing body in the resolution or ordinance of
intention pursuant to this section.

(
e
) This
paragraph does not apply to a community facilities district issuing special
assessment bonds pursuant to section 48-721.

B. When the proposed improvement, in the opinion of
the governing body, is of more than local or ordinary public benefit, it may
order the expense of the improvement chargeable
upon
on
a district, and shall describe the extent of the district
in general terms in its resolution or ordinance of intention, either by
reference to street lines or block numbers, or by designating its exterior
boundaries by their courses and distances from the street or streets the
improvement of which is contemplated, and may refer for a more particular
description thereof to a map on file with the city or town engineer, showing
the exterior boundary lines of the district, and delineating block and lot
numbers or containing such details as will show the location of the lines. A
city or town shall not assess the costs of an improvement
which
that
is for the general public benefit against land in an
assessment district. If a portion of the expense of an improvement
is for general public benefit, the city or town shall assess the district only
that portion of the expense
which
that

benefits the property within the district.

C. The governing body, in the resolution or
ordinance of intention, may provide that the improvement described therein may
be made according to any of several alternative plans and specifications, or
methods, classes or kinds of construction, or classes and kinds of material to
be thereafter determined by the legislative body.

D. Notwithstanding any other
provision of this section, if the petition PRESCRIBED by subsection a,
paragraph 2 of this section is signed by the owners of all of the real property
within the proposed improvement district, other than public property as
prescribed by section 48-582, and is approved by the governing body, the
municipality and those owners may enter into a written agreement waiving any or
all requirements relating to posting, publication, mailing, notice, frontage
owner written requirements and directions, and protest and objection, including
the provisions of sections 48-578, 48-579 and 48-580.� On receipt of a petition
signed by the owners of all the real property within the proposed improvement
district, the governing body may adopt a resolution or ordinance of intention
to order the improvement pursuant to subsection a, paragraph 1 of this section,
shall have immediate jurisdiction to adopt the resolution ordering the
improvement pursuant to section 48-581, and may combine those resolutions into
one resolution.

E. The petition required by
subsection a, paragraph 2 of this section shall set forth all of the following:

1. The name of the proposed
improvement district.

2. The necessity for the proposed
improvement district.

3. That the public convenience,
necessity or welfare will be promoted by establishing the improvement district
and that the property to be included in the improvement district will be
benefited.

4. A legal description of the
boundaries of the proposed improvement district and a map that shows generally
the location of the proposed improvement district.

5. A general description of the
proposed improvement.

6. A maximum amount of the
assessment.

7. That the petitioners consent to
the assessment, except that an assessment will not be levied without the
governing body's compliance with sections 48-577, 48-578, 48-579,
48-580, 48-581, 48-582, 48-583, 48-584, 48-585,
48-586, 48-587, 48-588, 48-589, 48-590, 48-591,
48-592, 48-593 and 48-594.

8. The assessor's parcel number for
each lot to be included in the proposed improvement district.� Each petition
signer shall indicate the applicable assessor's parcel number that corresponds
to the lot owned by the signer.

9. Any other matters required by this
article.
END_STATUTE

Sec. 5. Section 48-577, Arizona Revised
Statutes, is amended to read:

START_STATUTE
48-577.

Plans; estimate of cost; limitation on assessment

Before passing the resolution of intention, preliminary plans
that show the location and the type and character of the proposed improvements
and estimates of the cost and expenses of the proposed improvements shall be
prepared and filed with the clerk. The
assessment
shall not exceed the maximum amount of the assessment included in the petition
required by section 48-576, and the
assessment for any lot shall not
exceed its proportion of the estimate.
END_STATUTE