campaign spending; personal security

Plain English Breakdown

The bill's original purpose related to campaign spending and personal security has been replaced by provisions about construction contracts for revitalization districts. The candidate explanation does not reflect this change.

Construction Contracts for Revitalization Districts

This bill amends Arizona Revised Statutes section 48-6808 to require revitalization districts' construction contracts to include provisions that protect contractors and subcontractors from payment delays.

What This Bill Does

• Amends section 48-6808 of the Arizona Revised Statutes to add requirements for construction contracts entered into by a revitalization district.
• Requires these contracts to allow contractors to suspend performance or terminate the contract if the district fails to make timely payments.
• Allows subcontractors to suspend work or terminate their contracts if both the district and contractor fail to pay them on time, or if the district declines to approve and certify portions of the billing for reasons unrelated to the subcontractor's work.
• Requires written notice before suspending performance or terminating a contract due to non-payment.
• Ensures that neither contractors nor subcontractors will be seen as breaking the contract when they suspend work because of payment delays.

Who It Names or Affects

• Construction companies working on revitalization district projects
• Subcontractors involved in revitalization district construction contracts

Terms To Know

Revitalization District

A special area within a city or town where local government can collect taxes to fund improvements and development.

Limits and Unknowns

• The bill only applies to construction contracts made after its effective date.
• It does not specify how disputes over contract terms will be resolved beyond requiring reasonable attorney fees for successful enforcement actions.

Official Summary Text

SB1189 - 572R - Senate Fact Sheet

Originally assigned to
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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

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Prepared by Senate Research

April 16, 2026

JT/NRG

Current Bill Text

SB1189 - 572R - H Ver

House Engrossed
Senate Bill

campaign
spending; personal security

(now: construction
contracts; revitalization districts)

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1189

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.