AZ HB2387

Allows a county improvement district formed for purchasing energy to light public streets and parks to convert to a municipal improvement district when entirely annexed into a city or town.

Requires the city or town to adopt a resolution declaring intent to assume jurisdiction, deliver a certified copy to the county clerk, and record it with the county recorder by July 1 following adoption.

Upon conversion, the city or town governing body becomes the governing body of the district and county improvement district statutes no longer apply; the city or town must comply with all existing power or energy purchase agreements.

During the transition period until July 1, both the county and city or town governing bodies have concurrent jurisdiction to assess taxes and purchase energy; the county treasurer must transfer all unobligated monies to the assuming city or town after July 1.

Applies to county improvement districts formed before or after the act's effective date for purchasing energy to light public streets and parks.