HB2049 Summary

• Amends Arizona Revised Statutes Section 9-511 to require municipalities exercising eminent domain to acquire public utility businesses to assume all existing assets and contractual obligations associated with providing utility service in the certificate of convenience and necessity being condemned.

• Establishes five exceptions where a municipality is not required to assume contractual obligations: if all parties agree otherwise, if assumption would violate law, if the obligation is between the utility and its affiliates, if the municipality can provide the service more cheaply, or if the contract was executed after the written offer and appraisal date.

• Defines "affiliate" as any entity directly or indirectly controlling or controlled by a public utility regardless of management method.

• Defines "contractual obligation" as a public utility's obligation to provide service or construct infrastructure under agreements such as will serve agreements, line extension agreements, or similar utility infrastructure agreements.

• Applies only to condemnation actions commencing after the effective date of the act.