AZ SB1092

Authorizes public agencies to form separate legal entities, including nonprofit corporations, through intergovernmental agreements to jointly exercise common powers and contract for services.

Requires intergovernmental agreements to specify duration, purpose, financing methods, termination procedures, and the organization of any separate legal entity formed.

Allows separate legal entities formed by cities, towns, counties, and special taxing districts to function as political subdivisions with governmental and proprietary powers common to the contracting parties, including tax-exempt property status and immunity rights.

Permits separate legal entities to issue revenue bonds payable solely from undertaking revenues (not general taxes or assessments) to acquire or construct facilities, with bonds exempt from state and local taxation.

Restricts separate legal entities from engaging in electric distribution activities and prohibits them from being deemed public power entities under state law.