AZ SB1340

Establishes process for Arizona cities and towns to form municipal fire districts through voter approval, requiring a majority vote of qualified electors on a ballot measure during a regular council election.

Requires referendum materials to include district maps, assessed valuation estimates, proposed tax rates with examples, service benefits, and a five-year service scope, with a two-week public notice period and mailed notice to property owners.

Designates the city or town council as the fire district board, with powers to adopt budgets, maintain websites with public records, adopt fire codes, and levy secondary property taxes not subject to levy limitations.

Requires the district board to obtain fire and emergency medical services through either an intergovernmental agreement with another municipality or a competitive request for proposals within 60 days of formation, with service contracts lasting 3-5 years.

Prohibits the district from directly hiring employees, owning equipment or facilities, or issuing bonds, and requires the district to maintain liability insurance and indemnify service providers unless services are provided in a grossly negligent manner.