AZ SB1376

Enacts the Prosperity States Compact, an interstate compact creating special purpose "Prosperity Districts" designed to operate with streamlined regulatory and fiscal policy to maximize economic prosperity.

Establishes Prosperity Districts as political subdivisions governed by seven-member managing boards with exclusive jurisdiction within district boundaries over police power, infrastructure, utilities, municipal courts, and borrowing authority, but prohibiting taxation, eminent domain, subsidies, monopolies, and most government regulations.

Requires landowners representing 100% of surface land ownership to petition for district formation with detailed specifications including criminal law, common law adoption, bylaws, and a "Revenue Covenant" to compensate state, county, and municipal governments for foregone revenues.

Allows districts to promulgate regulations only to protect individual rights to life, liberty, and property through a hierarchy of remedies (civil, licensing, civil penalties, criminal sanctions) with mandatory regulatory impact statements, five-year sunset provisions, and strict limitations on anti-competitive effects.

Creates a Prosperity States Compact Commission consisting of three commissioners to oversee interstate compact operations, resolve disputes through alternative dispute resolution, and coordinate performance among member states, with operations funded by participating districts.