HB 2317 Summary

• Amends Arizona statutes governing community facilities districts (CFDs) to clarify formation procedures, governance structure, and bonding authority for special purpose districts that finance public infrastructure improvements.

• Modifies district board composition rules to allow districts formed after August 9, 2017 to convert two additional appointed board members to advisory nonvoting positions or remove them entirely upon petition by majority owners of privately owned property.

• Establishes restrictions on use of net premium from general obligation bonds, limiting proceeds to paying issuance costs or depositing into debt service funds for interest payments only.

• Requires disclosure to prospective property purchasers regarding district existence, formation purpose, estimated tax rates, and annual tax amounts for residential properties in districts approved after August 9, 2017.

• Caps municipal and county application fees at $15,000 for district formation applications and requires excess fees paid by applicants to be transferred to the district for administrative uses.