SB 1404 Summary

• Amends Arizona Revised Statutes sections governing community facilities districts (CFDs) to add new definitions including "entity," "special benefit," and "substantially complete," and to clarify existing language throughout the statute.

• Allows municipalities to require completed applications for CFD formation that include applicant information, general plans, financing plans, and development agreements; requires municipalities to adopt ordinances or policies by January 1, 2018, establishing application procedures and approval criteria.

• Establishes a ninety-day timeline for district boards to prepare feasibility studies and issue general obligation or revenue bonds after applicants provide engineer certification of substantially complete public infrastructure and property appraisals.

• Caps fees and charges for CFD formation and administration at $15,000 initially, with any excess fees used solely for district formation or administration; prohibits fees for substantially similar applications denied within one year.

• Creates new procedures for acceptance of completed public infrastructure by requiring governing bodies to inspect discrete segments, identify deficiencies within thirty days, and accept infrastructure meeting specifications; allows governing bodies to require performance or warranty bonds as a condition of acceptance.