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SB1536 • 2026

street lighting improvement districts; consolidation

SB1536 - street lighting improvement districts; consolidation

Taxes
Passed Legislature

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

Sponsor
J.D. Mesnard
Last action
2026-03-03
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the fiscal impact of this legislation.

Consolidation of Street Lighting Improvement Districts

This bill allows political subdivisions with more than one street lighting improvement district (SLID) to consolidate them into a single SLID from January 1, 2027 through January 1, 2030.

What This Bill Does

  • Allows political subdivisions with more than one SLID to consolidate these districts into a single SLID by resolution between January 1, 2027 and January 1, 2030.
  • Requires the political subdivision to notify property owners at least 60 days before consolidation and provide an opportunity for public comment.
  • Specifies that the notice must include details about the geographic areas involved, the proposed effective date of consolidation, potential changes in tax rates, and information on where and when public comments can be made.
  • Requires the governing body to submit a copy of the resolution approving consolidation to the county recorder for recording.

Who It Names or Affects

  • Political subdivisions with more than one SLID
  • Property owners within affected districts

Terms To Know

SLID (Street Lighting Improvement District)
A district formed for the purpose of providing lighting for public streets or parks.

Limits and Unknowns

  • The bill only applies to political subdivisions with more than one SLID and is limited to a three-year period from January 1, 2027 through January 1, 2030.
  • There may be variations in how different cities implement the consolidation process.

Bill History

  1. 2026-03-03 House

    House second read

  2. 2026-03-02 House

    House Rules: None

  3. 2026-03-02 House

    House Ways & Means: None

  4. 2026-03-02 House

    House first read

  5. 2026-02-27 House

    Transmitted to House

  6. 2026-02-26 Senate

    Senate third read passed

  7. 2026-02-17 Senate

    Senate minority caucus

  8. 2026-02-17 Senate

    Senate majority caucus

  9. 2026-02-16 Senate

    Senate consent calendar

  10. 2026-02-03 Senate

    Senate second read

  11. 2026-02-02 Senate

    Senate Rules: PFC

  12. 2026-02-02 Senate

    Senate Finance: DP

  13. 2026-02-02 Senate

    Senate first read

Official Summary Text

SB1536 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
S.B. 1536

street lighting improvement
districts; consolidation

Purpose

Allows, from January 1, 2027, through January 1, 2030, a political
subdivision with more than one municipal improvement district formed for the
purpose of providing lighting for public streets or parks, to consolidate
existing lighting districts into a single municipal improvement district by
resolution. Requires a political subdivision to notify affected property owners
and to provide for public comment.

Background

Statute allows the governing body of a municipality to establish
improvement districts for the sole purpose of purchasing and not generating
energy to light public streets and parks of the district, commonly referred to
as a SLID. The governing body must produce an annual estimate of the SLID expenses
that will be provided for by the levy and collection of taxes on the assessed
value of the real and personal property in the SLID or by an equal
apportionment of taxes based on the number and classification of properties
within the SLID.

A municipality may, by ordinance or resolution, consolidate existing SLIDs.
Property owners within the SLID proposed to be consolidated must submit a
petition to the municipality. The governing body of the municipality must
publish a hearing notice in a newspaper of general circulation in the
municipality in which the affected SLIDs are located and the municipality must
follow outlined requirements at the public hearing at which interested persons
can appear and give comment (
A.R.S.
� 48-616
).

There is no anticipated fiscal impact
to the state General Fund associated with this legislation.

Provisions

1.

Allows from January 1, 2027, through January 1, 2030, and
notwithstanding current consolidation requirements, a political subdivision
with more than one SLID to consolidate existing SLIDs into a single SLID by
resolution
.

2.

Requires
a political subdivision to provide a 60-day notice to all real property owners
in the SLIDs that are proposed for consolidation and to provide for receiving
public comments.

3.

Requires
the 60-day notice to include:

a)

the geographic areas of the SLIDs proposed for consolidation;

b)

the date that the proposed consolidation would take effect if the
resolution to consolidate is adopted;

c)

a notice that the SLID tax rate may increase or decrease depending on
the outcome of the consolidation;

d)

the new estimated tax rate for the consolidated SLID; and

e)

the time and location for public comment on the proposed consolidation.

4.

Requires,
on approval of the resolution to consolidate the SLIDs, the governing body of
the political subdivision to submit a copy of its resolution to the county
recorder for recording.

5.

Specifies
that any SLID established beginning January 1, 2027, through January 1, 2030,
is eligible for the modified consolidation process.

6.

Becomes
effective on the general effective date.

Prepared by Senate Research

February 5, 2026

MG/SJ/hk

Current Bill Text

Read the full stored bill text
SB1536 - 572R - S Ver

Senate Engrossed

street lighting
improvement districts; consolidation

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1536

AN
ACT

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.
Municipal
street lighting improvement districts; consolidation; notice

A. Notwithstanding section
48-616, Arizona Revised Statutes, beginning January 1, 2027 through January 1,
2030, a political subdivision with more than one municipal improvement district
that is formed for the purpose of providing for the lighting of public streets
or parks pursuant to section 48-615, 48-616 or 48-617, Arizona Revised
Statutes, may by resolution consolidate existing lighting districts into a
single municipal improvement district.

B. At least sixty days
before adopting a resolution to consolidate improvement districts as prescribed
by subsection A of this section, the political subdivision shall provide notice
of the proposed consolidation to all real property owners in the districts that
are proposed for consolidation and shall provide for receiving comment from the
public on the proposed consolidation. The notice must contain all of
the following:

1. The geographic areas of
the districts proposed for consolidation.

2. The date that the
proposed consolidation would take effect if the resolution to consolidate is
adopted by the political subdivision.

3. A notice that the
improvement district tax rate may increase or decrease depending the outcome of
the consolidation.

4. The new estimated tax
rate for the consolidated lighting district.

5. The time and location
for public comment on the proposed consolidation.

C. On approval of the
resolution to consolidate the lighting districts, the governing body of the
political subdivision shall submit a copy of its resolution to the county
recorder for recording.

D. Any municipal
improvement district that is formed for the purpose of providing for the
lighting of public streets or parks as prescribed by subsection A of this
section and that is established beginning January 1, 2027 through January 1, 2030
is eligible for consolidation pursuant to this section.