A.R.S. tit. 9 | Title 9 — Cities and Towns

Chapter 1 Formation

Article 1 Incorporation, Disincorporation and Reincorporation

§ 9-101 Incorporation; definitions

A. If two-thirds of the qualified electors residing in a community containing a population of fifteen hundred or more inhabitants or in a community within ten miles of the boundary of a national park or monument that contains a population of five hundred or more persons petition the board of supervisors, setting forth the metes and bounds of the community, and the name under which the petitioners desire to be incorporated, and praying for the incorporation of the community into a city or town, and the board is satisfied that two-thirds of the qualified electors residing in the community have signed the petition, it shall declare, by an order entered of record, the community incorporated as a city or town.

B. If ten percent of the qualified electors residing in a community containing a population of fifteen hundred or more persons or in a community within ten miles of the boundary of a national park or monument that contains a population of five hundred or more persons petition the board of supervisors in the manner prescribed in subsection A of this section, praying for the calling of an election with the express intent to incorporate the community as a city or town, the board, within sixty days after the map and petition, complete with signatures, are filed with the board, shall call the election. The map and petition shall be filed simultaneously or within twenty-four hours of each other. The election shall take place on a date prescribed by section 16-204 but not more than one hundred eighty days after the petition has been filed with the board, complete with signatures, except that an election shall not be called within twelve months after the date of a previous election for incorporation of substantially the same territory. Only qualified electors of the community shall vote on this question. If a majority of qualified electors voting thereon votes for incorporation, then the board, by an order entered of record, shall declare the community incorporated as a city or town.

C. Before obtaining any signatures on a petition required by subsection A or B of this section, the petitioners shall do the following:

At least six months before publishing a copy of the petition for incorporation of a community pursuant to paragraph 2 of this subsection, provide to the board written notice of their intention to publish a copy of the petition for incorporation of the community. The written notice shall also be published for two consecutive weeks in a newspaper of general circulation in the area to be affected.
Publish a copy of the petition, setting forth the metes and bounds of the community to be incorporated, in a newspaper of general circulation in the area to be affected for two consecutive weeks at least six months after providing written notice to the board pursuant to paragraph 1 of this subsection. Members of the public may request modifications to the metes and bounds of the community by presenting alternatives to the petitioners.
Not less than sixty days after publishing the notice pursuant to paragraph 2 of this subsection, submit a copy of the petition to the county recorder or the county elections department. The petition shall state its purpose clearly and concisely and shall be in the form and signed and verified as generally provided for initiative petitions. The petition shall set forth the metes and bounds of the community and shall state that petition signers desire for the community to become incorporated as a city or town. The petitioners shall also submit a copy of the notice published pursuant to paragraph 2 of this subsection.

D. Not later than the next regularly scheduled board meeting following the submission of the proper and legal petition to the county recorder or county elections department but within thirty days after submission of the petition, the board shall authorize the circulation of the petition. Petitioners have one hundred eighty days after the date of the meeting at which the circulation of the petition is approved to obtain the required number of signatures.

E. By whichever proceeding the incorporation of a city or town is accomplished, the order shall designate the name of the city or town, and its metes and bounds, and thereafter the inhabitants within the area so defined shall be a body politic and corporate by the name designated.

F. An area to be incorporated shall not include large areas of uninhabited, rural or farm lands, but it shall be urban in nature unless either:

The uninhabited, rural or farm lands have been platted and approved by the board of supervisors for housing or commercial development before filing a petition pursuant to subsection A or B of this section.
The current owner of the uninhabited, rural or farm lands agrees to include the property in the proposed incorporation area and provides to the petitioners a written, notarized statement supporting including the property in the proposed incorporation area with an attached copy of a map of the proposed incorporation area.

G. Territory shall not be incorporated if, as a result of such incorporation, unincorporated territory is completely surrounded by incorporated areas nor shall an area to be incorporated exclude interior county streets and roads, unless the board of supervisors approves the exclusion of such territory, streets and roads.

H. The board shall exclude from the community proposed to be incorporated pursuant to subsection A or B of this section any territory that has been included in an annexation ordinance adopted by a city or town pursuant to law after the incorporation petition has been submitted pursuant to subsection C of this section. If the remaining community fails to meet the qualifications for incorporation, the board of supervisors shall reject the petition.

I. For the purposes of this section, metes and bounds may be described by roads that make up the boundaries of the community.

J. For the purposes of this section:

"Community" means a locality in which a body of people resides in more or less proximity having common interests in such services as public health, public protection, fire protection and water that bind together the people of the area, and where the people are acquainted and mingle in business, social, educational and recreational activities.
"Uninhabited" includes land owned by a mining or metallurgical company.

§ 9-101.01 Incorporation; urbanized area

A. Notwithstanding any other law, all territory within six miles of an incorporated city or town, as the same now exists or may hereafter be established, having a population of five thousand or more persons, and all territory within three miles of any incorporated city or town, as the same now exists or may hereafter be established, having a population of less than five thousand persons is declared to be an urbanized area.

B. Except as provided in subsection D of this section, territory within an urbanized area shall not hereafter be incorporated as a city or town, and the board of supervisors does not have jurisdiction to take any action on a petition pursuant to section 9-101 to incorporate a city or town within such area, unless either:

The petitioners for incorporation submit to the board of supervisors, before the petitioners obtain signatures, a resolution adopted by the city or town causing the urbanized area to exist approving the proposed incorporation.
The petitioners for incorporation submit to the board of supervisors, before the petitioners obtain signatures, an affidavit stating that a proper and legal petition has been presented to the city or town causing the urbanized area to exist requesting annexation of the area proposed for incorporation and the petition has not been approved by a valid ordinance of annexation within one hundred twenty days after its presentation.

C. If a resolution or affidavit is submitted to the board of supervisors pursuant to subsection B of this section, the board shall take action on the petition pursuant to section 9-101 to incorporate the proposed area.

D. If the area proposed for incorporation has a population of fifteen thousand or more persons and that population is more than the population of the city or town that causes the urbanized area to exist and that opposes the proposed incorporation, the board of supervisors shall take action on the petition pursuant to section 9-101 to incorporate the proposed area without a resolution approving the proposed incorporation and adopted by the city or town causing the urbanized area to exist.

E. Notwithstanding any other provisions of this section, a portion of the territory of any city or town incorporated before June 20, 1968 shall not be declared to be an urbanized area. If any such city or town is declared to have been unlawfully incorporated by the final judgment of a court of competent jurisdiction after June 20, 1968, all or any portion of the territory of the city or town may be incorporated without regard to this section if petitions praying for the incorporation thereof or petitions praying for the calling of an election for such purpose are filed with the board of supervisors within one year after the date on which the judgment becomes final.

F. If, during the period of declarant control, a planned community association as defined in section 33-1802 notifies the board of its request to be excluded from the petition to incorporate, the board shall exclude from the community proposed to be incorporated the area or portion of the area covered by the planned community association after the petition has been submitted pursuant to section 9-101, subsection C, paragraph 3. The petitioners are not required to resubmit a petition if the remaining area proposed for incorporation meets the population qualifications for incorporation pursuant to this section and section 9-101. If the remaining area proposed for incorporation fails to meet the population qualifications for incorporation pursuant to this section or section 9-101, the board shall reject the petition.

§ 9-101.02 Alternate method of incorporation for certain areas; definition

A. As an alternate procedure for incorporation, any unincorporated community containing a population of seventy-five hundred persons or more, if such community includes all of the territory of a district organized under title 48, chapter 19, which itself includes all of the territory of a district organized under title 48, chapter 14, may incorporate as a city or town if each of the following events occurs:

At least twenty per cent of the qualified electors of the community petition the board of supervisors, setting forth the metes and bounds of the community, the name proposed for such city or town, praying for the incorporation of the community into a city or town and praying for the calling of an election for the purpose of deciding the question of whether to incorporate. The board shall within sixty days after filing the petition call the election, and the election shall take place on a date prescribed by section 16-204 but not more than one hundred eighty days after the petition is filed, except that no such election shall be called within twelve months from the date of a previous election for incorporation of substantially the same territory. Only qualified electors of the community shall vote on the question. If a majority of qualified electors voting thereon votes for incorporation, then the board of supervisors shall, by an order entered of record, declare the community incorporated as a city or town, if the provisions of paragraph 2 of this subsection are complied with.
When, on the basis of a sufficient petition therefor under paragraph 1 of this subsection, an election is required upon the question of incorporation the board of supervisors shall also call, at the same time as the incorporation election is called, separate elections among the qualified electors of each of such districts on the question of ultimate dissolution of the district. For the purposes of such elections, a qualified elector of a district shall be a person who is qualified to vote at the incorporation election called pursuant to paragraph 1 of this subsection and who resides within the district, and shall not be required to meet any additional qualifications. If a majority of the qualified electors of each district voting on the question approves it, each district shall be dissolved at the time and as otherwise provided in title 48, chapter 14 and chapter 19, respectively. Pending dissolution, the administration of district affairs shall vest in trust in the governing body of the city or town created pursuant to the election conducted under paragraph 1. Members of the governing body of such city or town are trustees of the districts for all purposes of such districts and as such have the powers and duties prescribed for the boards of directors of the districts organized pursuant to title 48, chapters 14 and 19. Such trustees may, without limitation, except as provided by law and within this section, operate the facilities of the district, may cause the levy of district taxes and assessments to pay debts and operating charges of the district and may issue and sell bonds previously authorized for improvements prior to dissolution of the district. Indebtedness and obligations of or issued by or on behalf of such districts shall not thereby become indebtedness or obligations of such city or town, except that such city or town shall be responsible as trustees to insure that all obligations and debts of the district shall be paid when due from funds available to the trustees from the district. Until dissolution, nothing shall be deemed to preclude such a district from otherwise continuing to carry on its activities and transacting its business, or from entering into contracts and agreements otherwise authorized with such city or town, or from transferring streets and other property to such city or town. At elections conducted after incorporation in districts to which this section applies the electors shall be qualified electors of the city or town who reside within the district, shall be fully qualified to vote in a city or town election were one conducted at the same time, and shall not be required to meet any additional qualifications.

B. Members of the boards of directors of the districts, if the terms of such members have not expired, shall serve as an advisory board to the trustees until expiration of the terms or earlier vacancy, and thereafter the office shall be deemed abolished.

C. If the qualified electors voting in the election conducted pursuant to subsection A, paragraph 1 of this section fail to approve incorporation or if the qualified electors voting in either of the elections conducted pursuant to subsection A, paragraph 2 of this section fail to approve dissolution, the community shall not at that time become an incorporated city or town.

D. If incorporation is accomplished pursuant to this section, the order of the board of supervisors shall designate the name of the city or town and its metes and bounds, and thereafter the inhabitants within the area so defined shall be a body politic and corporate by the name designated.

E. An area to be incorporated shall not include large areas of uninhabited, rural or farm lands, but it shall be urban in nature.

F. Prior to the beginning of the first full fiscal year in which a city that is incorporated under this section assumes the financial responsibility for a dissolved special taxing district or districts formerly within the city's boundaries, the economic estimates commission, pursuant to section 41-563, shall add to the city's 1979-1980 base limit, for purposes of determining its expenditure limitation pursuant to article IX, Constitution of Arizona, the actual expenditures of the district or districts for fiscal year 1979-1980 as set forth in an audit by a certified public accountant done for fiscal year 1979-1980. For purposes of making the adjustment to the city's expenditure limitation pursuant to this subsection, notice shall be provided by a city to the economic estimates commission no later than January 1 prior to the beginning of the fiscal year in which a city proposes to assume the responsibility for a dissolved district.

G. For the purposes of this section, "community" means a locality in which a body of people resides in more or less proximity having common interests in such services as public health, public protection, fire protection and water which bind together the people of the area and where the people are acquainted and mingle in business, social, educational and recreational activities.

§ 9-101.03 Alternate method of incorporation for an area containing a sanitary district and four road districts; definition

A. As an alternate procedure for incorporation, any unincorporated community containing a population of two thousand five hundred persons or more, if such community includes all of the territory of four districts organized under title 48, chapter 10 and all of the territory of a district organized under title 48, chapter 14, may incorporate as a city or town if each of the following events occurs:

At least twenty per cent of the qualified electors of the community petition the board of supervisors, setting forth the metes and bounds of the community, stating the name proposed for the city or town, praying for the incorporation of the community into a city or town and praying for the calling of an election for the purpose of deciding the question of whether to incorporate. The board shall within sixty days after filing the petition call the election, and the election shall take place on such date as the board may designate but not more than one hundred twenty days after the filing of such petition, except that no such election may be called within twelve months from the date of a previous election for incorporation of substantially the same territory. Only qualified electors of the community shall vote on the question. If a majority of the qualified electors voting on the question votes for incorporation, the board of supervisors shall, by an order entered of record, declare the community incorporated as a city or town, if the provisions of paragraph 2 of this subsection are complied with.
If, on the basis of a sufficient petition under paragraph 1 of this subsection, an election is required on the question of incorporation, the board of supervisors shall also call, at the same time as the incorporation election is called, separate elections among the qualified electors of each of the districts on the question of ultimate dissolution of the districts. For the purposes of these elections, a qualified elector of a district is a person who is qualified to vote at the incorporation election called pursuant to paragraph 1 of this subsection and who resides within the district, and such person is not required to meet any additional qualifications. If a majority of the qualified electors of each district voting on the question approves it, each district shall be dissolved at the time and as otherwise provided in title 48, chapter 10 and chapter 14, respectively. Pending dissolution, the administration of district affairs vests in trust in the governing body of the city or town created pursuant to the election conducted under paragraph 1 of this subsection. Members of the governing body of such city or town are trustees of the districts for all purposes of such districts and as such have the powers and duties prescribed for the boards of directors of the districts organized pursuant to title 48, chapters 10 and 14. Such trustees may, without limitation, except as provided by law and within this section, operate the facilities of the districts, may cause the levy of district taxes and assessments to pay debts and operating charges of the districts and may issue and sell bonds previously authorized for improvements before dissolution of the districts. Indebtedness and obligations of or issued by or on behalf of such districts shall not become indebtedness or obligations of such city or town, except that such city or town is responsible as a trustee to insure that all obligations and debts of the districts are paid when due from funds available to the trustees from the districts. Until dissolution, nothing is deemed to preclude such a district from otherwise continuing to carry on its activities and transacting its business, or from entering into contracts and agreements otherwise authorized with such city or town, or from transferring streets and other property to such city or town. At elections conducted after incorporation in districts to which this section applies, the electors must be qualified electors of the city or town who reside within the district and are fully qualified to vote in a city or town election if one was conducted at the same time and shall not be required to meet any additional qualifications.

C. If the qualified electors voting in the election conducted pursuant to subsection A, paragraph 1 fail to approve incorporation or if the qualified electors voting in either of the elections conducted pursuant to subsection A, paragraph 2 fail to approve dissolution, the community shall not at that time become an incorporated city or town.

D. If incorporation is accomplished pursuant to this section, the order of the board of supervisors shall designate the name of the city or town and its metes and bounds, and thereafter the inhabitants within the area so defined are a body politic and corporate by the name designated.

E. An area to be incorporated shall not include large areas of uninhabited, rural or farm lands, but it shall be urban in nature.

F. As used in this section, "community" means a locality in which a body of people resides in more or less proximity having common interests in such services as public health, public protection, fire protection and water which bind together the people of the area and the people are acquainted and mingle in business, social, educational and recreational activities.

§ 9-102 Disincorporation

A. The supervisors of the county in which a city or town is situated shall, upon the petition of two-thirds of the qualified electors residing within the city or town within sixty days of when the petition is filed, do either of the following:

Disincorporate the city or town, and appoint a trustee with authority to wind up the affairs of the corporation, sell and convey its property, real and personal, pay the debts of the city or town and deposit the surplus of the proceeds of the property in the county treasury to be there disposed of for the benefit of the inhabitants of the disincorporated city or town.
Call for an election for the purpose of deciding for or against the disincorporation of the city or town. The election shall take place on a date prescribed by section 16-204 but not more than one hundred eighty days after the petition is filed, except that no such election shall be called within twelve months from the date of a previous election for disincorporation of the same city or town. Only qualified electors of the city or town shall vote on this question. If a majority of the qualified electors voting thereon votes for disincorporation, then the board of supervisors shall, by an order entered of record, declare the city or town disincorporated and shall proceed in the manner prescribed in paragraph 1 of this subsection.

B. If the incorporation of a city or town is rescinded or declared null and void by a court of competent jurisdiction for any reason, the superior court in the county in which that city or town is situated may appoint a trustee with authority to wind up the affairs of the corporation, sell and convey its property, real and personal, and pay the debts of the city or town. Any net proceeds remaining from the liquidation of such property shall be spent for the benefit of the inhabitants of the disincorporated city or town. An expenditure for the benefit of such inhabitants shall be determined in the following manner:

The superior court shall conduct a public hearing to receive the recommendations of the inhabitants for the disposition of such proceeds. The superior court shall determine the object or objects for which such proceeds shall be spent by determining in its discretion that such object or objects benefit and are in the best interests of the majority of all age groups of the inhabitants. The object or objects may include private, nonprofit organizations.
The superior court may appoint an advisory committee composed of the inhabitants to assist it in rendering its decision and to ensure that such object or objects are carried out and shall require the committee to provide a strict accounting of the expenditure of such monies.
After receiving and approving a final accounting of the expenditure of such monies, the superior court may discharge the advisory committee and trustee.

C. Indebtedness and obligations of or issued by or on behalf of such city or town shall not become indebtedness or obligations of the county, except that the county is responsible as a trustee to insure that all obligations and debts of the city or town are paid. The indebtedness and obligations of such city or town shall be paid pursuant to subsection D of this section. The city or town which is disincorporated shall continue as a political subdivision until all of the debts and obligations of the city or town are satisfied.

D. The appointed trustee shall annually estimate an amount to be levied as a tax on all taxable property in the disincorporated city or town to pay the indebtedness or obligations of the city or town. Subject to the limitation contained in subsection E of this section, on or before June 30 the appointed trustee shall certify to the board of supervisors the amount of taxes necessary to be levied for these purposes, and the board of supervisors shall levy and cause the amount to be collected as secondary taxes at the same time and in the same manner as levying and collecting general county taxes.

E. The taxes levied pursuant to subsection D of this section shall be levied until such time as the indebtedness or obligations of the city or town shall have been satisfied. The amount levied each year shall not exceed the amount levied for the tax year preceding the year in which the city or town is disincorporated.

F. In addition to the authority provided in subsection A of this section, the appointed trustee may operate the facilities of the city or town until such facilities are sold or otherwise disposed of as determined by the county board of supervisors.

G. Before obtaining any signatures on a petition required by subsection A of this section, a copy of the petition shall be filed with the clerk of the board of supervisors. The petition shall state its purpose clearly and concisely and shall be in the form and signed and verified as generally provided for initiative petitions. Petitioners have one hundred eighty days from the date of such filing to obtain the required number of signatures.

H. The county recorder shall verify the names on the petition within thirty days after the petition is completed and filed and, if valid, the board of supervisors shall proceed as prescribed in subsection A, paragraph 1 or 2 of this section. If the city or town is disincorporated pursuant to this section, the board of supervisors shall appoint the trustee pursuant to subsection A of this section within thirty days after disincorporation.

§ 9-103 Reincorporation of existing municipalities; effect of change

A. A city or town heretofore incorporated desiring to be reincorporated may, upon petition of a majority of its qualified electors to the board of supervisors of the county in which the city or town is situated, by order of the board of county supervisors, be disincorporated and reincorporated by whatever corporate name the petition may designate. In such case, the officers of the city or town, at the date of the disincorporation, shall deliver to the officers of the city or town so incorporated all books, papers, records, money and other property pertaining to the city or town disincorporated, and the city or town incorporated shall be liable for all debts and liabilities of the city or town disincorporated, and shall be entitled to receive all property and rights of action belonging to the disincorporated city or town.

B. The reincorporation of a city or town shall not affect or change title to any property or rights therein, or any tax levy that may have been made, or outstanding certificates of taxes, and the new corporation may issue necessary title papers under tax sales, or other sales, the same as a city or town can do under existing laws.

C. The ordinances and resolutions existing in the city or town at the time the petition is filed shall continue and be in force for sixty days thereafter, unless repealed or changed by the proper authorities of the city or town reincorporated.

§ 9-104 County services for newly incorporated city or town

A. When county territory is included within the boundaries of a newly incorporated city or town, all codes, rules and regulations made, established, adopted or enacted by such county, relating to zoning, building, plumbing, mechanical, electrical and health and sanitation shall apply within such newly incorporated city or town and shall be enforced by county officers from and after the date of such incorporation until July 1 next following such incorporation or until such time prior to the expiration of such fiscal year as the governing body of such city or town, by resolution or conflicting ordinance, supersedes such county code, rules or regulations.

B. All county services previously provided within such territory, including, but not limited to, law enforcement, public safety, maintenance of streets and public improvements, drainage, sewers and sewage disposal shall be continued through county officers and at county expense during the period from and after the date of such incorporation until July 1 next following such incorporation or until such time prior to the end of such fiscal year as the governing body of such city or town, by resolution or conflicting ordinances, provides such services.

C. The provisions of this section shall also apply to cities and towns incorporated under article 3 of this chapter.

Article 2 Consolidation of Towns

§ 9-121 Consolidation of towns

A. When the common councils of two incorporated towns having a common boundary and located in a county having a population of less than one hundred fifty thousand persons each pass a resolution requesting an election for the purpose of consolidating the two towns into one incorporated town, the board of supervisors of the county shall, within sixty days after certified copies of the resolutions of the two towns are filed with the clerk of the board of supervisors, adopt a resolution calling an election upon the question of the consolidation, and the question of the name of the new proposed town, which election shall be held on a date prescribed by section 16-204 but not more than one hundred eighty days after the county resolution is filed. The resolution shall set forth the following:

The date on which the election is to be held.
The places where votes may be cast, and at least one place shall be designated within the corporate limits of each of the two towns.
The hours between which the polling places will be open.
The name of the proposed consolidated town listing two to four choices.

B. The election resolution shall be published in full at least once, not less than fifteen nor more than thirty days prior to the date of the election in a newspaper published in the county. If there is no such newspaper, the resolution shall be posted in five conspicuous places in each of the municipalities not less than fifteen nor more than thirty days prior to the date of the election.

C. At the election, the ballot shall contain and may be limited to the following:

The phrases "for the consolidation" and "against the consolidation". To the right of and opposite each phrase shall be placed a square approximately the size of squares placed opposite the names of candidates on ballots. The voter shall indicate his vote for the consolidation or against the consolidation by inserting the mark "X" in the square opposite the appropriate phrase. No other question, word nor figure need be printed on the ballot. The ballot need not be any particular size nor need sample ballots be printed, posted or distributed.
The phrase "if consolidation is approved, choose one of the following as the name of the new proposed town." To the right of and opposite each suggested name shall be placed a square approximately the size of squares placed opposite the names of candidates on ballots. The voter shall indicate the vote for the name of the new proposed town by inserting the mark "X" in one square only opposite the name chosen.

D. Only qualified electors of the towns shall vote on the question. If a majority of the qualified electors voting thereon, in each incorporated town, votes for consolidation, then the board of supervisors shall by an order entered of record by the board declare the two incorporated towns consolidated into one incorporated town, and the order of the board shall designate the name of the town, which shall be the name chosen by the most voters in the election as set forth in the resolution calling the election.

E. Except as otherwise provided in this article, the manner of conducting the registration and election, keeping the poll lists, making the returns, declaring the results and doing all acts relating to the election shall conform to the procedure provided by law for the registration and qualification of electors and holding elections wherein the question of issuance of bonds of municipal corporations is submitted to an election.

F. The first common council for the new town shall be appointed by the board of supervisors in the manner provided in section 9-231, for towns newly incorporated.

G. The incorporated limits of the new town shall be the combined corporate limits of the two former incorporated towns at the time of the election. The ordinances and resolutions of the former towns shall continue in force unless repealed or changed by the new common council. In case of conflict between ordinances or resolutions, the ordinance or resolution of the former town having the largest population at the last federal decennial census shall prevail. The new town shall be liable for all debts and liabilities of the two former towns, and shall be entitled to receive all property and rights of action belonging to the former towns.

H. Towns incorporated pursuant to this article shall have all powers, duties, rights and privileges granted to incorporated towns under the laws and constitution of the state of Arizona.

§ 9-122 Unification of a city and a town

A. If the common council of a city and the common council of a town whose boundaries are within five miles of each other at one or more points pass a resolution requesting an election for the purpose of unifying the city and the town into one incorporated city, and a petition is received from the unincorporated areas that separate the city or town boundaries or are contiguous to the boundaries and is signed by at least ten per cent of the qualified electors in such unincorporated area, within sixty days, the board of supervisors of the county shall adopt a resolution calling an election on the question of the unification and the question of the name of the new proposed city. The election shall be held on a date prescribed by section 16-204 but not more than one hundred eighty days after the county resolution is filed. The resolution shall set forth the following:

The date on which the election is to be held.
The places where votes may be cast. At least one place shall be designated within the corporate limits of the city and the town and the unincorporated area proposing the unification.
The hours between which the polling places will be open.
The name of the proposed unified city.

B. The election resolution shall be published in full at least once, not less than thirty nor more than sixty days before the date of the election, in a newspaper published in the county. If there is no such newspaper, the resolution shall be posted in five conspicuous places in each of the municipalities and the affected unincorporated areas not less than thirty nor more than sixty days before the date of the election.

C. At the election, the ballot shall contain and may be limited to the phrases "for the unification" and "against the unification". A square approximately the size of the squares placed opposite the names of candidates on ballots shall be placed to the right of and opposite each phrase. A voter shall indicate a vote for the unification or against the unification by marking the ballot pursuant to the ballot instructions. The ballot is not required to be any particular size, and sample ballots are not required.

D. Only qualified electors of the city, the town and the unincorporated areas shall vote on the question. If a majority of the qualified electors voting on the question in each area votes for unification, the board of supervisors shall declare by an order entered of record the city, town and unincorporated areas unified into one incorporated city. The order of the board shall designate the name of the city.

E. Except as otherwise provided in this article, the manner of conducting the registration and election, keeping the poll lists, making the returns, declaring the results and doing all acts relating to the election shall conform to the procedure provided by law for the registration and qualification of electors and holding elections in which the question of issuance of bonds of municipal corporations is submitted to an election.

F. The board of supervisors shall appoint the first common council for the new city. The board of supervisors shall appoint seven members at least two of whom shall be from each of the three areas unified. Following appointment, the council shall designate one of its members to serve as mayor. At the earliest possible date following the formation of the new city, the new city shall be divided by the appointed council into six districts, and an election shall be called to fill the six council districts and elect at large a directly elected mayor. The mayor and council members shall serve four year staggered terms. At the first election, the three council members with the highest vote shall serve four year terms and the three other council members elected shall serve two year terms in order to accomplish staggered terms for future elections.

G. The incorporated limits of the new city shall be those shown on the resolutions from the incorporated city and town and shall be their combined corporate limits plus the unincorporated areas that appear on the petition submitted pursuant to subsection A of this section and that are between or adjacent to the city and the town. In no event shall any such petition include land or improvements utilized for mining, metallurgical or related environmental remediation purposes without written consent of the landowner. The ordinances and resolutions of the former city, town and county shall continue in force unless repealed or changed by the new common council, including franchises and transaction privilege taxes. In the case of conflict between ordinances or resolutions, the ordinances or resolutions of the former city or town with the larger population shall prevail, except that zoning regulations applying to property at the time of unification shall remain in effect until the council of the new unified city adopts a zoning ordinance applying to the property. The new city shall be liable for all debts and liabilities of the former city and town and shall be entitled to receive all property and rights of action belonging to the former city and town.

H. A city incorporated pursuant to this section has all powers, duties, rights and privileges granted to incorporated cities and towns under the laws and constitution of this state. For purposes of state shared revenues, including state transaction privilege tax, state income tax, vehicle license taxes, highway user revenues and local transportation assistance fund monies, a combined amount that would have been distributed to the former town and city unified shall be distributed to the new city until a combined census count including the unincorporated areas can be obtained. Once the combined census count is obtained, the updated census count shall be used for the distribution of the state shared revenues retroactive to the first of the month following unification. The annual population estimate of the unified city prepared by the department of economic security shall be used for distribution of local transportation assistance fund monies.

I. The unified city shall have a property tax levy limit calculated as the combined maximum allowable levy limit of the town and city unless another levy limit is approved by the voters of the unified city at a regularly scheduled election. The expenditure limit of the unified city shall be the alternative expenditure limitation of the largest city until the fiscal year following the unified city's first general election. At such election, the council may propose an alternative expenditure limitation or permanent base adjustment and if not approved the unified city's expenditure limitation shall be calculated using the formula provided for a newly incorporated city unless subsequently changed by the voters.

Article 3 Incorporation, Annexation and Operation of a City or Town in More Than One County

§ 9-131 Incorporation; definition

A. When two-thirds of the qualified electors in each county residing in a single community containing a collective population of fifteen hundred or more inhabitants petition their respective boards of supervisors, setting forth the metes and bounds of the community and the name under which the petitioners desire to be incorporated, and praying for the incorporation of the community into a city or town, and the respective boards meeting in a joint session are satisfied that two-thirds of the qualified electors residing in the community in each county have signed the petition, they shall by an order entered of record by each board declare the community incorporated as a city or town.

B. When ten per cent of the qualified electors in each county residing in a single community containing a collective population of fifteen hundred or more inhabitants petition their respective boards of supervisors in the manner prescribed by subsection A of this section, praying for the calling of an election for the purpose provided in this section, the respective boards meeting in joint session shall within sixty days after the filing of the petition call the election, and the election shall take place on a date prescribed by section 16-204 but not more than one hundred eighty days after the petition is filed, except that no such election shall be called within twelve months from the date of a previous election for incorporation of substantially the same territory. Only qualified electors of the community shall vote on this question. If a majority of qualified electors in each county voting thereon votes for incorporation, then the boards of supervisors again meeting in joint session shall by an order entered of record by each board declare the community incorporated as a city or town.

C. The provisions of section 9-231 shall apply to cities and towns incorporated under this article, except that the first common council shall be appointed by the boards of supervisors of the respective counties meeting in joint session.

D. By whichever proceeding the incorporation of a city or town is accomplished, the order shall designate the name of the city or town, and its metes and bounds, and thereafter the inhabitants within the area so defined shall be a body politic and corporate by the name designated.

E. For the purposes of this section, "community" means a locality in which a body of people resides in more or less proximity having common interests in such services as public health, public protection, fire protection and water which bind together the people of the area, and where the people are acquainted and mingle in business, social, educational and recreational activities.

F. An area to be incorporated shall not include large areas of uninhabited, rural or farm lands, but it shall be urban in nature.

§ 9-132 Disincorporation

Upon petition of two-thirds of the qualified electors residing within a city or town located in more than one county, the boards of supervisors of the respective counties, meeting in joint session may disincorporate the city or town, and appoint a trustee with authority to terminate the affairs of the corporation, sell and convey its property, real and personal, pay the debts of the city or town and deposit the surplus of the proceeds of the property in the county treasury to be there disposed of for the improvement of roads in the vicinity in which the city or town is situated. Such proceeds shall be distributed by the trustee to the respective counties in the proportion that the population of the city or town within each county bore to the total population of the city or town, according to the most recent regular or special federal census.

§ 9-133 Reincorporation

The provisions of section 9-103 shall be applicable to incorporations under this article, provided that petitions under this section shall be submitted to the respective boards of supervisors. The boards of supervisors meeting in joint session may order the city or town disincorporated and reincorporated.

§ 9-134 Annexation

Any incorporated city or town may annex territory in an adjacent county pursuant to the provisions of section 9-471.

§ 9-135 Relations with county

If a city or town is located in more than one county, and the law requires the filing or recording of any paper, document or notice of the taking of any action within a county, such city or town shall perform such filing or recording or take such action within the county in which the property affected is located. In addition, such city or town may file or record any such paper, document or notice or take such action in each county in which such city or town is located.

§ 9-136 State or county collected taxes

The department of revenue, the county treasurers and every other state department, agency or political subdivision, shall remit to cities and towns located in more than one county their portion of taxes which are collected for and in behalf of the incorporated cities and towns. Distribution of such taxes shall be on the same basis as now or hereafter provided by law.

§ 9-137 Powers and duties

Cities and towns incorporated pursuant to the provisions of this article shall have all the powers, duties, rights and privileges granted to incorporated cities and towns under the laws and constitution of this state.

Chapter 2 Form of Government

Article 1 Government in Cities and Towns Not Organized Under This Chapter

§ 9-201 Elective officers in cities and towns of less than six hundred voters; duties

A. In cities or towns that are not organized under article 3 or 4 of this chapter and in which at the next preceding municipal election less than six hundred votes were cast, the only officers shall be a mayor, a councilman from each district and a marshal or chief of police.

B. The chief of police or marshal is also ex officio city or town license tax collector, pound-master, street commissioner and fire warden, shall perform all duties as such and shall receive in full compensation for all services not more than one hundred twenty-five dollars per month.

§ 9-202 Appointive officers; compensation

A. The mayor and common council shall appoint a clerk who shall keep the minutes of their proceedings and the accounts of the city or town finances, and whose compensation is fixed at fifteen dollars per month.

B. The mayor and common council shall appoint one of their number as city or town treasurer to perform all the duties of the office, and he shall receive the sum of ten dollars per month in full for all services.

C. The compensation for performing the duties of chief of police, clerk and treasurer shall be in full for all services rendered either by them or by their deputies, should they appoint any. The mayor and councilmen, other than the treasurer appointed from the council, shall receive no compensation.

§ 9-203 Vacancies; bonds

A. In case of the death, resignation or removal of the chief of police or marshal, city clerk or treasurer, the mayor and common council may fill the vacancy by appointment until the next general municipal election, at which time the office of chief of police or marshal shall be filled by election.

B. The chief of police and treasurer shall give bond in a sum to be fixed and approved by the mayor and common council for the faithful performance of their duties.

§ 9-204 Officers in cities and towns of six hundred to eight hundred fifty voters; terms of office; elections; removal

A. In all cities or towns not organized under article 3 or 4 of this chapter, in which at the next preceding municipal election not more than eight hundred fifty nor less than six hundred votes were cast, the only officers shall be a mayor, four councilmen, a chief of police, a recorder who is also ex officio city auditor and police judge, and a treasurer.

B. The term of office of each officer, except councilmen, is two years. Each councilman shall hold office for a term of four years. The recorder shall be elected as other city or town officers.

C. Elections shall be held on the third Tuesday in May of each odd-numbered year at which all officers whose terms have then expired shall be elected.

D. The mayor and common council may remove an officer for malfeasance in office.

Article 3 Town Incorporated Under Common Council Government

§ 9-231 Common council

A. The corporate powers of a town incorporated under section 9-101 shall be vested in a common council. The first common council shall be appointed by the board of supervisors, on declaring the town incorporated, and the members shall continue in office until their successors are elected and qualified. The successors shall be elected by qualified electors residing in the town at an election held for that purpose on the third Tuesday in May following, and on the third Tuesday in May each two years thereafter, pursuant to section 16-204.

B. The common council of every town shall consist of five members if the population is fifteen hundred persons or less, or seven members if the population exceeds fifteen hundred persons at the time of incorporation. If thereafter the population of the town exceeds fifteen hundred persons as determined by the latest official United States census, the council may pass an ordinance increasing the membership to seven, with the additional two members to be elected at the first election subsequent to the passage of the ordinance.

§ 9-232 Council; qualifications of members; oath; selection of mayor; vacancy

A. A person shall not be a member of a city or town council unless, at the time of the election, the person is eighteen years old, is a qualified elector residing within the city or town and has resided in the city or town for at least one year next preceding the election, or if an area has been annexed to the city or town for a period of less than one year next preceding the election has resided in such area for at least one year next preceding the election. If an annexed area is subject to the provisions of this subsection, a person may meet the residency requirements if the person has resided within the existing limits of the city or town for the one-year period.

B. Every member of the council shall hold the office for the term of two years, except the members of the council first appointed, and before entering on the duties of the office, the member shall take and subscribe the oath of office.

C. Except for a common council organized as prescribed by section 9-232.04, the common council shall assemble within twenty days after their appointment or election, and choose a mayor from among their number.

D. If a member of the council, at any time during the member's term of office, ceases to be a qualified elector of the city or town or ceases to reside in the city or town, the council seat held by the member is deemed vacant. The council seat shall be filled in the same manner as any vacancy on the council. On request, the county attorney for the county in which the city or town is located shall investigate and determine whether a vacancy exists pursuant to this subsection.

§ 9-232.01 Salaries

The common council may by ordinance or resolution prescribe a daily compensation or salary to be paid the mayor, councilmen and administrative board members for the performance of official duties.

§ 9-232.02 Permitting town councilmen to hold office for four-year staggered terms

The common council may, by majority vote of the qualified electors of the town voting thereon, provide for four-year staggered terms for members of the town council in the manner provided in section 9-272, with respect to cities. In the event the common council consists of five members only, the first class shall consist of two councilmen and the second class shall consist of three councilmen.

§ 9-232.03 Alternative procedure for mayor to be directly elected by electors

The common council may, by a majority vote of the qualified electors of the town voting thereon either at a regular or special election, provide by ordinance that the mayor shall be directly elected by the electors rather than selected by the common council.

§ 9-232.04 District system as alternative organization

A. The common council, by a majority vote of the qualified electors of the town who vote on that issue, may elect to be governed by a district system of municipal government. In accordance with that election, the common council by a majority vote shall adopt a resolution or ordinance that divides the town into not more than six districts, and the council members shall thereafter be elected from districts by the residents of the district.

B. A mayor of the town shall be elected, who is the chief executive officer of the town.

§ 9-232.05 Town elected officials; term limits; applicability

A. By majority vote of the qualified electors of the town voting on the initiative, the qualified electors may by initiative:

Enact term limits on the number of terms a member of the common council or mayor may serve.
Enforce term limits on the number of terms a member of the common council or mayor may serve.
Repeal term limits on the number of terms a member of the common council or mayor may serve.

B. Any enactment, enforcement or repeal of a term limit pursuant to this section applies to any common council member or any mayor elected after the date that the majority of the qualified electors vote to enact, enforce or repeal the term limit pursuant to subsection A of this section.

§ 9-233 Council meetings; quorum; adjournment

The common council shall, by ordinance, fix the time and place of holding stated meetings, and the council may be convened at any time by the mayor. A majority of the councilmen shall constitute a quorum for transacting business but a lesser number may adjourn from time to time and compel the attendance of absent members in such manner and under such penalty as the council may, by ordinance, have previously prescribed. No such adjournment shall be to a day beyond the next stated meeting of the council.

§ 9-234 Power of council to regulate proceedings; records

A. The common council shall judge the elections, qualifications and returns of its members. It may prescribe rules for the government of its proceedings, may punish any member or other person for disorderly conduct at any meeting of the council by a fine not exceeding twenty dollars, and by imprisonment until the payment of the fine, and with the concurrence of four councilmen may expel any member, but not a second time for the same cause.

B. The common council shall cause the clerk to keep a journal of its proceedings and a record of all ordinances adopted, and at the request of any member shall cause the ayes and nays upon any question to be taken and entered upon its journals.

C. The proceedings of the common council shall be public.

§ 9-235 Vacancies in council

A. The council shall fill a vacancy that may occur by appointment until the next regularly scheduled council election if the vacancy occurs more than thirty days before the nomination petition deadline, otherwise the appointment is for the unexpired term. If the city or town by ordinance provides that at the primary election any candidate for the office of mayor or city council who receives a majority of all votes cast at that election for that office is declared elected to the office and a candidate to fill the vacancy in that office receives a majority of all votes cast for that office at the primary election, section 9-821.01, subsection D applies. This subsection does not apply to a charter city.

B. The member appointed shall meet the qualifications established in section 9-232.

§ 9-236 Mayor; duties

The mayor of the common council shall be the chief executive officer of the town, and shall perform such duties as may be prescribed by law and ordinance. In case of the absence of the mayor the council may appoint one of their number to act in his stead.

§ 9-237 Appointive officers

In addition to the common council, the officers of every town shall be a town clerk, town marshal, town engineer and other officers deemed necessary by the common council, who shall be appointed as provided by ordinance of the town.

§ 9-238 Duties of appointive officers

A. The town clerk shall also be treasurer of the town. The town marshal shall be collector of all taxes of the town. The town engineer shall have charge of the town streets, sewers and water works, and in towns of three thousand or more inhabitants, shall be a competent engineer.

B. In towns of less than three thousand inhabitants the town marshal, in addition to his duties as town marshal, may act as town engineer.

§ 9-239 Council powers relating to appointive officers

A. The common council may prescribe the duties and compensation of all officers of the town, and provide, by ordinance, the manner of filling vacancies in such offices. The council may appoint, from time to time, officers and agents of the town whose appointment is not provided for in this article, and remove them.

B. The common council may require all officers to give bond for the due discharge of their duties in such sums and with such security as it may direct and approve, and for default of giving security, may declare an office vacant.

C. The common council may provide severance pay for town officers by ordinance or by contract with an individual officer.

§ 9-240 General powers of common council

A. The common council shall have control of the finances and property of the corporation.

B. The common council shall also have power within the limits of the town:

To erect, purchase or lease necessary buildings for the purposes of the corporation.
To appropriate money and provide for the payment of its debts and expenses.
(a) To exercise exclusive control over the streets, alleys, avenues and sidewalks of the town and to give and change the names thereof.

(b) To prevent and punish for the encumbering thereof, and to abate and remove all encumbrances and obstructions thereon.

(d) To open, lay out and improve new streets, avenues and alleys.

(e) To vacate or abandon any street, avenue, alley, park, public place or sidewalk in such town or to abolish them, provided that rights-of-way or easements of existing sewer, gas, water or similar pipelines and appurtenances and for canals, laterals or ditches and appurtenances, and for electric, telephone, and similar lines and appurtenances shall continue as they existed prior to the vacating, abandonment, or abolishment thereof.

(f) To protect the same from encroachment and injury.

To erect and maintain bridges, culverts, sidewalks and crossways, and prevent and punish for injuries thereto or obstructions thereon.
(a) To construct and maintain sewers and drains, and prevent and punish for any obstruction thereof, or thereto.

(b) To change the channels of natural watercourses, to wall the same and cover them over, and regulate the same as sewers.

(d) To regulate the bridging of all millraces, irrigating and other ditches at the crossings of public highways, by the owners of such millraces and ditches, and after such bridge or ford is built according to the street commissioner's instructions, the crossing shall thereafter be a public charge.

To provide the town with water, to construct public wells, cisterns and reservoirs in the streets and other public and private places within the town, or beyond the limits thereof, and to supply the same with pumps and conducting pipes or ditches.
(a) To provide regulations for the prevention and extinguishment of fires.

(b) To prevent the erection of wooden buildings within prescribed limits.

(d) To regulate the storage of explosives, tar, pitch, resin and other combustible or inflammable materials, and to prescribe the places and manner of storing the same.

To provide for lighting the streets and other public places of the town, and to exclusively regulate and control the laying and repairing of gas pipes and other appurtenances therein.
To provide for enclosing, improving and protecting the public grounds and cemeteries of the town, and to direct and regulate the planting of ornamental and shade trees therein and in the streets of the town.
To establish markets and marketplaces for the town and to regulate the same.
(a) To establish and maintain necessary cemeteries and burial places for the town beyond the limits thereof.

(b) To regulate the burial of the dead.

(c) To require a registration of the deaths and births, and to impose penalties upon physicians and surgeons for any default in the premises.

To establish and regulate the police of the town, to appoint watchmen and policemen, and to remove them, and to prescribe their powers and duties.
To prevent, suppress and punish any riot, rout, affray, disorderly noise or disturbance in any public or private place within the town.
To prevent, suppress and punish racing or immoderate riding or driving through the streets.
(a) To prohibit and punish any amusements or practice tending to annoy or obstruct persons passing upon the streets or sidewalks, or frighten horses or other animals being ridden or driven thereon.

(b) To restrain and punish the ringing of bells, blowing of horns, crying of goods or other noises, performances and practices tending to cause the collection of persons upon the streets or sidewalks and the obstruction thereof.

(a) To prohibit the roaming at large of animals within the town.

(b) To authorize the impounding and summary sale thereof when found roaming at large contrary to ordinance.

(d) To regulate, restrain and prohibit the running at large of dogs and to authorize their destruction when at large contrary to any ordinance of the town, and to impose penalties upon the owners thereof.

(a) To suppress and prohibit prostitution and unlawful sexual intercourse and to punish persons guilty thereof.

(b) To suppress and prohibit the operation of disorderly houses and to punish the owners, managers, lessees, agents, keepers and inmates thereof.

(c) To suppress and prohibit gambling and the operating of gambling houses and to punish the owners, managers and employees thereof and players at such games.

To fix the amount of license taxes to be paid by any person, firm, corporation or association for carrying on any business, game or amusement, calling, profession or occupation, and prescribe the method of collection or payment of the same, for a stated period in advance, and fix penalties for failure to comply by fine or imprisonment, or both. Nothing in this article shall be construed as authorizing any town or city to levy an occupational license or fee on any activity when the general law of the state precludes levying such a license or fee.
To authorize the clerk to issue licenses, to direct the manner of issuing and registering the same, and the fees of the clerk therefor. No license shall be granted for more than one year, and not less than ten dollars nor more than five thousand dollars shall be charged for any license so issued.
(a) To provide regulations to prevent the introduction or spread of contagious, loathsome or infectious diseases within the town.

(b) To make quarantine laws and enforce them within the town and within two miles thereof, and to provide pest houses and hospitals necessary therefor.

(a) To define, abate and remove nuisances, and punish persons committing nuisances.

(b) To compel the owner or any occupant of any house or premises to clean the grounds, stables, alleys, streets and walks appurtenant and adjacent thereto.

(c) To prohibit within the town and within two miles beyond the limits thereof slaughterhouses, tanneries, soap factories, establishments for the steaming or rendering of tallow, lard or offal, and all other establishments and places where any nauseous, offensive or unwholesome business may be carried on.

To perform other acts, and prescribe other regulations, which may be necessary or expedient for the prevention or suppression of disease.
To establish and maintain a workhouse or houses of correction, to make regulations for the government thereof and to appoint the officers and keepers thereof.
To authorize the arrest and punishment of vagrants, stragglers and idle and disorderly persons found loitering or strolling about in public places, leading an immoral or profligate life, and to authorize the confinement of any such person, and persons who fail to pay any fine, in the workhouse or house of correction for a period not exceeding three months.
(a) To direct and control the laying and construction of railroad tracks, bridges, switches and sidetracks in the streets, alleys and other public places of the town.

(b) To require the same to be so laid and constructed as to interfere as little as possible with the ordinary travel and use of the streets, and other public places.

(c) To authorize the construction of tramways, electric, steam or cable roads and railways in the town, and to regulate the operation thereof, and the fares to be charged thereon and to require the owners thereof to keep in repair the streets wherein the same may be laid, and to construct and keep in repair all bridges, culverts, crossways, ditches and sewers.

(d) To regulate the speed of locomotives.

To levy taxes as hereinafter mentioned in this article.
To apply any surplus money in the treasury of the town to the extinguishment of the debt of the town, or to provide a sinking fund for that purpose.
(a) To make, amend or repeal all ordinances necessary or proper for the carrying into effect of the powers vested in the corporation, or any department or officer thereof.

(b) To enforce the observance of such ordinances, and to punish violations thereof by fine or imprisonment, or both, and by confinement at hard labor, in the discretion of the magistrate or court before whom a conviction may be had, but no fine shall be imposed exceeding two thousand five hundred dollars, nor imprisonment or confinement at hard labor exceeding six months.

To adopt ordinances for the government of the corporation, its officers and persons within its corporate limits needful for the good government and order of the municipalities, and to provide the manner of prosecution and define the punishment for the violation of such ordinance.

§ 9-241 Purchase and sale of property

A. The corporation may purchase, receive, hold, lease and convey property, real and personal, necessary or proper to carry out the purposes of the corporation, within or without its limits.

B. Every conveyance of real property to the corporation shall be in its corporate name. Conveyances by the corporation shall be executed by the mayor with the advice and consent of the council, at a regular meeting thereof.

C. Real property of the corporation shall be sold as provided by section 9-402.

§ 9-242 Hospitals

A. The corporation may own, operate and control hospitals in the interest of the general welfare.

B. The council may lease a hospital to a nonprofit association or corporation organized under state law, on such terms and conditions, and for such consideration, as the council may prescribe.

§ 9-243 Construction of streets and sidewalks; default of property owner; abatement of assessment; appeal; definitions

A. The common council may require the proprietor of any block, lot or part of a lot within the town to construct a sidewalk in front thereof of a width and type of construction as it may direct, and may by ordinance provide that upon failure of the proprietor to construct the sidewalk within a time to be prescribed after notice so to do it may be constructed by the town, and the expense thereof assessed against the block, lot or part thereof. The council may provide the manner of making the assessment, may approve the same and provide the manner of collecting the assessment.

B. The council may by ordinance require the proprietor or owner of any property within the town at the time of the development of the property to construct streets within and adjacent to the property. If the council determines that such streets are necessary before the development of the property, the council may order these improvements to be constructed by the town at its expense and the expense shall be assessed against the property. The council may provide and approve the manner of assessing the property at the time of development and provide the manner of collecting unpaid assessments at the time of development of the property subject to the following limitations:

The assessment of property, if adjacent arterial streets are involved, shall not exceed the cost of improving more than one-half of the width or more than one thousand lineal feet of such adjacent arterial street, except that if any parcel of land is presently being used for single family residential use and the width of such does not exceed two hundred lineal feet, such property shall not be assessed greater than one-half the cost of the average residential street within such city or town.
The assessment of property shall not exceed the actual expense incurred by the town at the time of construction.

C. Any assessment under this section shall abate if the property has not been developed within ten years of the assessment.

D. The determination of necessity by the council resulting in the assessing of property under this section may be appealed by any aggrieved party to the superior court.

E. As used in this section:

"Development" includes construction of residential, commercial or industrial buildings or structures or major additions or alterations to existing structures and includes new buildings or structures on property having existing buildings or structures situated on such property. When such property is zoned for agricultural or single family residential use at the time of assessment, development shall also require a change of use or purpose.
"Streets" may include asphaltic concrete surfacing, aggregate base, curb and gutter, valley gutter, concrete sidewalks and tiling of irrigation ditches and storm drainage facilities if required.

§ 9-244 Levy of taxes

A. The common council may levy and collect annually, upon the assessed value of the real and personal property within the town, as shown by the equalized assessment roll of the current year, except such as is, or may be, exempt from taxation under the laws of the state, property taxes to defray the salaries of officers, and the ordinary and contingent expenses of the corporation, not herein otherwise provided for, and for constructing and repairing streets, sewers, sidewalks and crosswalks, or bridges and culverts upon such streets and sidewalks.

B. The limitation imposed by this section shall not prohibit the right to levy and collect amounts necessary to defray the charges of the public debt of the corporation.

C. Nothing contained in this section shall be held to repeal, modify or affect the provisions of title 42, chapter 17, article 2.

§ 9-246 Publication of financial statement

The common council shall, at least ten days before the biennial election, publish in a newspaper published in the town, or if there is none, then post in three or more public places in the town, a full and correct statement of all monies received into the treasury of the town since the last report, and the sources from which they were severally derived, and also of all disbursements and expenditures and the account upon which the disbursement was made.

§ 9-247 Claims, warrants, substitute checks and vouchers

When a town organized under this article is indebted on an account, the official having power to audit and allow claims against the town shall draw a warrant, substitute check or voucher upon the treasurer for the amount due. The official shall not draw more than one warrant, substitute check or voucher for the amount allowed.

§ 9-248 Warrants, substitute checks and vouchers; payee; form

No warrant, substitute check or voucher drawn on the treasurer of any town shall be drawn in favor of a person other than the one to whom it is due. The warrant, substitute check or voucher shall be in the form prescribed by ordinance.

§ 9-249 Warrants, substitute checks and vouchers; presentment; payment; registry; definitions

A. The treasurer of a city or town shall not pay any warrant, substitute check or voucher unless presented for payment by the person in whose favor it is drawn or the person's assignee, executor or administrator. When a warrant, substitute check or voucher on the treasurer is properly presented for payment, the treasurer shall pay it and write or stamp on the face of it "paid" and the date of payment and shall sign it. An electronic image of the original warrant provided by or made available by the servicing bank in a format approved by the treasurer of a city or town shall be deemed properly presented. If the treasurer cannot pay the warrant, substitute check or voucher for want of funds, the treasurer shall write or stamp on the face of it "not paid for want of funds" and the date of presentation and shall sign it, and, from that date until paid, the warrant, substitute check or voucher shall bear interest at a rate to be determined by the council, but in no case to exceed six per cent per year. The city or town and the servicing bank shall agree upon the method of delivery of the warrant, substitute check or voucher.

B. The treasurer shall keep a registry of warrants, substitute checks and vouchers presented for payment.

C. For the purposes of this article:

"Substitute check" means a paper reproduction of an original warrant created from an electronic image of the original warrant that:

(a) Contains an image of the front and back of the original check.

(b) Bears a magnetic ink character recognition line containing all of the information in the magnetic ink character recognition line of the original check.

(d) Is suitable for automated processing in the same manner as the original warrant.

"Warrant" means an original warrant or an electronic image of an original warrant from which a substitute check may be created.

§ 9-250 Violation of provisions relating to warrants; classification

An officer of a town who violates any provision of sections 9-247, 9-248 or 9-249 is guilty of a petty offense.

§ 9-251 Survey and recording of town plats

When a town is laid out, the proprietors of the town shall cause to be made an accurate plat or map thereof, setting forth:

Streets, alleys, avenues and highways and the width thereof.
Parks, squares and other grounds reserved for other uses, with the boundaries and dimensions thereof.
Lots and blocks, with their boundaries, designating the lots and blocks by numbers, and giving the dimensions of the lots.

§ 9-252 Acknowledgment and filing of maps

The maps required by section 9-251 shall be acknowledged by the proprietor, or some person for him duly authorized by deed, and a copy thereof, so acknowledged, shall be filed in the office of the county recorder, and also in the office of the clerk of the town.

§ 9-253 Recording of maps and plats; preservation of originals

A. The county recorder shall record the plats in a book to be kept for that purpose, and, when necessary, may reduce the scale of the plat, and upon each record in the book, shall endorse his certificate that the plat is recorded from the original plat filed in his office.

B. The original plat shall be preserved by the county recorder, and the clerk of the city or town, among the records of their offices respectively.

§ 9-254 Title to streets

Upon filing a map or plat, the fee of the streets, alleys, avenues, highways, parks and other parcels of ground reserved therein to the use of the public vests in the town, in trust, for the uses therein expressed. If the town is not incorporated, then the fee vests in the county until the town becomes incorporated.

§ 9-255 Unlawful act of officer; liability of council

A member of the common council of a town incorporated under the provisions of this article shall not be personally liable in damages or otherwise for an unlawful act of an officer or employee of the town, unless the act is committed by the authority of the member, or he has notice or knowledge thereof, or unless the act is committed under circumstances which would cause, or would have caused, a reasonable or prudent person to have knowledge of the act.

Article 4 Change From Town to City Organization

§ 9-271 Procedure for change; city officers

A. When a town has acquired a population of three thousand or over and the council shall by resolution so declare, the town may by majority vote of the qualified electors voting thereon assume a city organization having and exercising all rights, powers, authority, duties and privileges of a city under such name as the council may designate.

B. Upon making the change from a town to a city organization the officers of the city shall consist of:

Seven councilmen elected at large by the qualified electors residing in the city at the regular election which would have been held had the change not been made.
A mayor elected by and from among the members of the council.
The following officers appointed by the mayor and city council:

(a) A city clerk and ex officio treasurer.

(b) A city attorney.

(d) A city physician.

(e) A city engineer.

(f) When provided by ordinance, a city health or sanitary officer, a superintendent of streets, a fire chief and such other officers as the council deems necessary.

C. The same person may hold two or more of the appointive offices enumerated in paragraph 3 of subsection B.

D. Pending the holding of the first regular election after the change, the officers of the municipality and their terms of office shall continue as though the change from town to city government had not been made.

§ 9-272 Classification of councilmen for purposes of election; terms of office

A. The common council may, by a majority vote of the qualified electors of the city voting thereon, provide by ordinance or resolution, that the members of the council be divided by lot into two classes. The first class shall consist of three councilmen and the second class of four. Those of the first class shall hold office until the next regular election, and those of the second class until the second regular election. At the first regular election held after the change, three councilmen shall be elected, and at the second regular election four councilmen shall be elected.

B. Thereafter councilmen shall be elected in classes of three and four at successive, regular elections and shall hold their office for terms of four years each and until their successors are elected and qualified.

§ 9-272.01 Alternative procedure for mayor to be directly elected by electors

The common council may, by a majority vote of the qualified electors of the city voting thereon either at a regular or special election, provide by ordinance that the mayor shall be directly elected by the electors rather than selected by the common council.

§ 9-273 District system as alternative organization

A. Upon the change from town to city government, the city, by a majority vote of the qualified electors, may elect to be governed by a district system of municipal government, and in accordance with the election the common council by a majority vote shall adopt such resolution or ordinance, dividing the city into districts, not exceeding six in number, and the councilmen shall thereafter be elected from districts by the residents of the district.

B. There shall be elected a mayor of such city, who shall be the chief executive officer of the city.

§ 9-274 Powers of council; salaries

A. When the change from town to city government is made, the council of the city may:

Appoint and remove city officers, board members and employees not expressly made elective in accordance with civil service regulations, or in absence of such regulations, as the council deems advisable.
Fix the salaries of officers, board members and employees, and of the mayor and councilmen.
Require and fix official bonds.
Prescribe the duties of officers, board members and employees.
Fill by appointment vacancies in the office of mayor or councilmen and other vacancies occurring in any other city office, board or employment.

B. In fixing salaries the city council may by ordinance or resolution prescribe a daily compensation to be paid to the mayor, councilmen and administrative board members for performance of official duties.

C. The city council may by ordinance or resolution establish or alter salaries or compensation of the mayor and councilmen.

§ 9-275 Applicability of certain provisions to specified cities

A. The provisions of sections 9-271 to 9-274, inclusive, shall not apply to a city operating under a special act or special charter or which has been organized prior to June 12, 1929 and is operating under the provisions of article 1, chapter 2 of this title, or any other state law or statute enacted prior to June 12, 1929, but the officers of such city, their manner of election or appointment, their term of office, duties, salaries, bonds and the filling of vacancies shall remain as provided by the special acts, charter, laws or statutes enacted prior to June 12, 1929.

B. A city or town operating under any act, special charter, law or statute of the state enacted prior to June 12, 1929, may by majority vote of its council avail itself of the benefits, privileges and provisions of this article to take effect at the holding of the next regular election in the municipality.

C. Pending the holding of the first regular election after such decision and action, the officers of the municipality and their tenure of office shall continue as theretofore, and as though such change of municipal government had not been made.

§ 9-276 Additional powers of cities

A. In addition to the powers already vested in cities by their respective charters and by general law, cities and their governing bodies may:

Lay out and establish, regulate the use, open, vacate, alter, widen, extend, grade, pave, plant trees or otherwise improve streets, alleys, avenues, sidewalks, parks, public grounds and off-street parking sites and acquire any property necessary or convenient for that purpose by the exercise of the right of eminent domain.
Prevent and remove encroachments or obstructions, provide for lighting and cleaning, and regulate the openings for the laying of gas and water pipes and mains on streets, alleys, avenues, sidewalks, parks and public grounds.
Build and repair sewers, tunnels and drains.
Erect lights, gas or otherwise.
Regulate the erection of poles and wires, the laying of street railway tracks, and the operating of street railways in and upon its streets, alleys, public grounds and plazas.
Regulate the use of sidewalks and all structures thereunder, and require the owner or occupant of premises to keep the sidewalks in front of or along the premises free from obstruction.
Regulate and prevent the throwing of offensive material in and prevent injury to any street, way, alley or public grounds.
Construct and keep in repair bridges, viaducts, tunnels, culverts, drains, sewers and cesspools, and regulate their use.
Provide for the cleaning and purification of waters, watercourses and canals, and the draining or filling of ponds on private property when necessary to prevent or abate nuisances.
Establish markets and market houses, and regulate their use.
Regulate the sale of meats, poultry, fish, butter, cheese, lard, fruit, vegetables and other provisions, and provide for and regulate the inspection and the place and manner of selling them, and provide for the inspection of hay, grain, flour, meal and other provisions.
Regulate the construction, repair and use of vaults, cisterns, areas, hydrants, pumps, sewers and gutters.
Regulate partition fences and party walls and regulate the construction and location of buildings, walls and fences on the line of a street, way or alley.
Prescribe the thickness, strength and manner of constructing stone, brick and other buildings, and construction of fire escapes.
Fix and designate by ordinance fire limits within which no buildings having outside wooden walls shall be constructed or repaired so as to increase their value beyond a percentage to be fixed in the ordinance, and, by ordinance, prescribe special fire limits, within the general fire limits, requiring therein building material to be used and additional precautions to be observed in the construction of new buildings, and in the repairing and maintenance of buildings, as may from time to time be designated, for the prevention of fires and the spread thereof, and provide for the enforcement of the ordinance and for the appointment of a building inspector, his authority, his term of office and his compensation.
Define nuisances and abate them, and impose fines upon persons creating or continuing nuisances.
Appoint a board of health, and prescribe its powers and duties.
Prohibit an offensive or unwholesome business or establishment within two miles of the limits of the corporation.
Compel the owner of any unwholesome or nauseous house or place to clean, abate or remove it, and regulate the location thereof.
Extend by condemnation or otherwise any street, alley or highway over or across, or construct a sewer under or through, any railroad track, right-of-way or land of a railroad within its corporate limits, but where no just compensation is made to the railroad company, the city shall restore the railroad track, right-of-way or land to its former state, or in a manner so as not to impair its usefulness.
Establish and define sewer districts and construct sewers therein.
Establish and alter the grade of streets, alleys and sidewalks, and regulate the manner of using the streets and pavements in the city to protect them from injury by vehicles driven thereon. No street or sidewalk grade shall be altered after it has once been established and built unless compensation is made to abutting owners for damages done to their property by the change.
Make local improvements by special assessments, by special taxation or otherwise, as they shall by ordinance prescribe.
Adopt and enforce standards for shielding and filtration of commercial or public outdoor portable or permanent light fixtures in proximity to astronomical or meteorological laboratories.

B. A domestic corporation or association organized for the purpose of manufacturing gas to supply cities, or their inhabitants, or to supply cities, or their inhabitants, with water, or for the purpose of furnishing cities and the inhabitants with a sewer system, may, by consent of the governing body, erect and establish gas factories, waterworks and sewer plants, and lay down pipes in the streets, alleys, plazas and ways of a city, subject to such rules and regulations as the city shall by ordinance impose.

Article 5 Adoption of Charter Government by City

§ 9-281 Adoption procedure; board of freeholders; election

A. A city containing a population of more than three thousand five hundred inhabitants may frame a charter for its own government consistent with the constitution and the laws of the state, by causing a board of freeholders, composed of fourteen qualified electors of the city, to be elected at large by the qualified electors thereof, at a general or special election.

B. An election of the board of freeholders may be called at any time by the legislative authority of the city. The election shall be called by the chief executive officer of the city within ten days after there has been filed with him a petition demanding the election, signed by a number of qualified electors residing within the city equal to twenty-five per cent of the total number of votes cast at the next preceding general municipal election.

C. The election shall be held not later than thirty days after the call therefor. At the election a vote shall be taken upon the question whether further proceedings toward adopting a charter shall be had in pursuance to the call, and unless a majority of the qualified electors voting thereon shall vote to proceed further, no further proceedings shall be had.

§ 9-282 Proposed charter; publication; election; approval by governor

A. The board shall, within ninety days after the election, prepare and propose a charter for the city. The proposed charter shall be approved and signed in duplicate by the members of the board, or a majority of them, who shall file one copy with the chief executive officer of the city and the other with the county recorder of the county in which the city is located.

B. The proposed charter shall then be published in one or more newspapers of general circulation published within the city for at least twenty-one days if in a daily paper, or in three consecutive issues if in a weekly paper, and the first publication shall be made within twenty days after completion of the proposed charter.

C. The proposed charter shall be submitted within thirty days and not earlier than twenty days after the publication to the vote of the qualified electors of the city at a general or special election. If a majority of the electors voting thereon ratify the proposed charter, it shall be submitted to the governor for his approval, who shall approve it if not in conflict with the constitution or the laws of the state.

§ 9-283 Approval of charter; recording and filing; amendment

A. On approval the charter shall become the organic law of the city and supersede any charter then existing and all ordinances inconsistent with the new charter.

B. A copy of the charter, certified by the chief executive officer of the city, and authenticated by the seal of the city, together with a statement similarly certified and authenticated setting forth the submission of the charter to the electors and its ratification by them, after approval of the charter by the governor, shall be filed in the archives of the city, after being recorded in the office of the county recorder, and thereafter all courts shall take judicial notice of the charter.

C. The charter so ratified may be amended by amendments proposed and submitted by the legislative authority of the city to the qualified electors thereof, or by petition as provided in this article, at a general or special election, and ratified by a majority of the qualified electors voting thereon, and approved by the governor as provided in this article for the approval of the charter.

§ 9-284 Effect of charter on inconsistent laws

A. When the charter has been framed, adopted and approved, and any of its provisions are in conflict with any law relating to cities containing a population of more than three thousand five hundred inhabitants in force at the time of the adoption and approval of the charter, the provisions of the charter shall prevail notwithstanding the conflict, and shall operate as a repeal or suspension of the law to the extent of conflict, and the law shall not thereafter be operative as to such conflict.

B. The charter shall be consistent with and subject to the state constitution, and not in conflict with the constitution and laws relating to the exercise of the initiative and referendum and other general laws of the state not relating to cities.

C. Notwithstanding any statute, the charter may authorize agreements setting wages and salaries which extend not more than two years beyond the term of the contracting council.

§ 9-285 Expenses of board

When a city has adopted a charter under the provisions of this article, the chief executive and the legislative authority of the city may provide for the payment of the expenses of the board of freeholders necessarily incurred in the framing of the charter, including clerical assistance which shall not exceed three dollars per day for the time actually employed.

Chapter 3 Officers

Article 1 General Provisions

§ 9-301 Terms of office

In incorporated cities and towns which elect a mayor, other than those specifically provided for, councilmen and other officers shall hold their respective offices for two years.

§ 9-302 Bonds of officers

A. Unless bonded pursuant to the provisions of subsection B of this section, every officer of a city or town shall execute and file an official bond, enforceable against the principal and his sureties, conditioned on the due and faithful performance of his official duties, payable to the state and to and for the use and benefit of the municipality or any person who may be injured or aggrieved by the wrongful act or default of the officer in his official capacity. A person injured or aggrieved may bring suit on such bond under the provisions of section 38-260.

B. Any incorporated city or town may obtain and deliver to the city or town clerk a blanket bond conditioned on faithful performance of all such city's or town's officers payable to the municipality, except the treasurer or tax collector by whatever title known, who shall execute the official bond provided for in subsection A.

§ 9-303 City or town manager

A. The governing body of a city or town, in addition to the officers already specified by law, may, by ordinance, create the office of city or town manager, and appoint a person thereto to be known as the city or town manager.

B. The city or town manager shall have and exercise the powers and perform the duties relating to the affairs of the city or town as shall be specified by the ordinance creating the office of city or town manager.

C. The person appointed to the office of city or town manager shall serve at the pleasure of the governing body of the city or town and may be removed without cause by a majority vote thereof.

§ 9-304 Compensation of alderman or councilman; failure to comply; classification

A. No mayor, alderman or councilman of any city or town shall, during the term for which he has been elected, knowingly accept, take or receive for his own use from the city or town, any money or other thing of value other than that which is provided to be paid him for his services as such.

B. A person who violates any provision of this section is guilty of a petty offense, and his office shall be forfeited.

C. The fine as provided in subsection B shall be deposited in the school fund of the county in which the city or town is located.

§ 9-305 City or town auditor; examination of executive session minutes; confidentiality

A. If a city or town has established the office of city or town auditor, the city or town, by ordinance, may provide that the city or town auditor or the auditor's authorized representative, in the performance of their official duties, examine the minutes of executive sessions of the city or town council or any board, commission or other public body established by the city or town.

B. Working papers and other audit files that are maintained by the city or town auditor are not public records and are exempt from title 39, chapter 1. Any audit report prepared for or presented to a city or town, whether by city or town auditor, the auditor's authorized representative or a consultant, is a public record subject to title 39, chapter 1.

Chapter 4 General Powers

Article 1 Purchase, Sale or Lease of Property

§ 9-401 Acquisition of land by city; extent and notice of city jurisdiction

A. A city or town may purchase, lease or rent land, whether contiguous or noncontiguous, lying outside its corporate limits, for its purposes and uses, and any violation of an ordinance of the city or town occurring within the territorial limits of the land may be punished by the city or town having control thereof to the same extent and with like effect as if the violation occurred within the corporate limits.

B. At any point at which a public road enters land purchased, leased or rented as provided by subsection A, the city or town having control thereof shall erect and maintain a sign, not less than eighteen inches by three feet in size, containing a warning notice in bold letters that the area being entered is subject to the jurisdiction of the city or town.

§ 9-402 Sale and disposition of property; advertising for bids; publication; donation; easements

A. A city or town may sell and convey all or any part of its real or personal property, whether or not the property is devoted exclusively to public use.

B. The sale shall not be made until an invitation for bids for the purchase of the property has been published as provided by section 39-204 and notice has been posted in three or more public places within the city or town.

C. If no newspaper is published within the city or town, then the invitation for bids shall be published as provided by section 39-204, and by posting notices for bidders in three or more public places within the city or town.

D. A city or town may donate lost and found or unclaimed personal property in its custody for at least ninety days to nonprofit charitable organizations.

E. Notwithstanding subsections A and B of this section, a city or town may convey to the appropriate property owner without receiving payment an easement that the city or town no longer needs.

§ 9-403 Sale of real property; public hearing; resolution; posting of terms of sale; special election; sale at auction

A. Real property of a city or town, the value of which is more than $1,500,000 but less than $15,000,000, may not be sold unless the governing body of the city or town does both of the following:

Holds at least one public hearing to take public comment on the proposed sale after publishing the invitation for bids as prescribed in section 9-402 at least thirty days before the scheduled approval of the purchase agreement. Notice of the hearing shall be provided at least ten days before the hearing and shall include both of the following:

(a) A description of the property proposed for sale and the reasons for the proposed sale.

(b) Information on how to submit to the governing body written and verbal comments on the proposed sale.

By a vote of the members of the governing body, adopts a resolution approving the sale of the property.

B. If a city or town sells real property pursuant to subsection A of this section, the terms of the sale shall be posted on the city's or town's website on completion of the sale.

C. Real property of a city or town, the value of which is $15,000,000 or more, shall not be sold unless first authorized by a special election called for the purpose of submitting to the voters of the city or town the question of selling or not selling the real property proposed for sale. The election shall be held within the corporate limits of the city or town on a date prescribed by section 16-204, and notice shall be given as provided in section 9-402.

D. The ballots shall contain a description of the property proposed for sale and the reason the governing body desires the property sold. The description and reasons shall be printed in eight-point type and shall contain not more than one hundred words.

E. If a majority of the ballots cast is in favor of selling, the governing body may sell the property at public auction, after giving the notice required in section 9-402, to the highest bidder for cash, reserving the right to reject any and all bids.

F. Real property sold pursuant to this section shall be sold at not less than the appraised value of the property.

§ 9-404 Payment of outstanding taxes, penalties and interest on acquiring property

A. If a city or town acquires real or personal property, whether by purchase, exchange, condemnation, gift or otherwise, the city or town shall pay to the county treasurer any taxes on the property that were unpaid as of the date of acquisition, including penalties and interest.

B. The lien for unpaid delinquent taxes, penalties and interest on property acquired by a city or town:

Is not abated, extinguished, discharged or merged in the title to the property.
Is enforceable in the same manner as other delinquent tax liens.

§ 9-405 Sale, lease or exchange of surplus property to federal government

A. Notwithstanding the provisions of section 9-402, 9-403 or 9-241, the governing body of a city or town may sell, lease or otherwise grant to the United States for governmental purposes any real property owned by it and surplus to its needs. The determination of the governing body that such property is surplus shall be final, and the property may be sold to the United States for such consideration as may be agreed upon between the governing body and officials of the federal government, including the exchange of land for land under the land exchange acts of the United States.

B. Not less than ten days prior to the actual sale, lease or other disposition of such property, the governing body of the city or town shall cause to be published in a newspaper of general circulation within the county, or, if there is no such newspaper, then by posting in three public places within the county, a notice of the intent to dispose of the property, together with a description of the property and the terms and conditions of the proposed sale, lease or other disposition thereof.

C. The sale shall be conducted without formalities, advertisement for bids or consideration of bids by other persons, but where the value of real estate proposed to be disposed of exceeds the amount of fifty thousand dollars, such sale, lease or exchange shall not be made unless first authorized by the voters of such city or town at a special election to be called and held in accordance with the provisions of section 9-403.

D. Nothing in this section shall be deemed to affect the provisions of sections 28-8411 and 28-8414.

§ 9-406 Sale, lease or conveyance of land by city or town incorporated pursuant to congressional enabling legislation

A city or town which has incorporated under the laws of the state of Arizona pursuant to enabling legislation of the Congress of the United States and which upon incorporation acquires ownership of land in excess of one section from the United States may provide by ordinance for the manner of disposition, sale, lease or conveyance of land owned by such city or town.

§ 9-407 Exchange and sale of real property; notice of intent

A. Any incorporated city or town may by ordinance authorize an exchange of a parcel of real property owned by that city or town for any other parcel of real property if the parcels of real property are of substantially equal value and the exchange meets the terms and conditions prescribed in the ordinance.

B. Any incorporated city or town may sell a parcel of real property to another political subdivision without following the procedures prescribed in sections 9-402 and 9-403.

C. A notice of intent to exchange or sell any property pursuant to this section shall be published pursuant to section 39-204 before the exchange or sale.

§ 9-408 Home equity conversion program; authorization; use of proceeds

A. A city or town, by ordinance, may offer a home equity conversion program for persons sixty years of age or older.

B. A city or town shall use any monies obtained from a home equity conversion program, after payment of all costs and expenses, on programs for senior citizens.

§ 9-409 Condemnation actions; interest

Interest on a judgment in a condemnation proceeding instituted by the city or town, including interest that is payable pursuant to section 12-1123, subsection B, shall be calculated for each month or portion of a month that interest is owed and shall be either:

The prime rate charged by banks on short-term business loans as determined for publication in the bulletin of the board of governors of the federal reserve system, as of the first day of that month.
In the absence of a determination by the board of governors of the federal reserve system, calculated in the same manner based on comparable data as determined by the United States department of commerce, bureau of economic analysis, for publication in "survey of current business".
If the prime rate cannot be determined from publication as provided in paragraph 2, determined by a federal agency that is annually designated by the governing body of the city or town and that makes and publishes data sufficient to determine the prime rate of interest.

Article 2 Public Library

§ 9-411 Tax levy for library purposes

A city or town may levy annually, in addition to all other taxes, a tax not to exceed one and one-half mills on the assessed value of all property in the city or town, exclusive of the valuation of property exempt from taxation, for the purpose of establishing and maintaining therein free public libraries and reading rooms, for purchasing books, journals and other publications, and erecting and maintaining such buildings as may be necessary therefor.

§ 9-412 Receipt of gifts for library

Cities or towns may receive, hold or dispose of gifts made to them for library purposes and may apply them in a manner which will best promote the uses of the library, subject to the terms of the gift.

§ 9-413 Library fund

All money received for library purposes, whether by taxation or otherwise, shall belong to and be designated as the library fund, shall be paid into the city or town treasury, kept separate and apart from other funds, and shall be drawn therefrom as provided in this article, but only for purposes therein authorized.

§ 9-414 Trustees; terms; compensation

A. The governing body of a city or town may appoint residents of the city or town as trustees of its library.

B. In cities or towns of less than three thousand inhabitants there may be six trustees, and in other cities or towns there may be nine trustees. Trustees shall hold office for three years from July 1 in the year of their appointment, unless sooner removed for good cause.

C. Upon the first appointment of trustees in a city or town, they shall, at their first meeting, divide themselves by lot into three classes, one third to serve for one year, one third to serve for two years, and one third to serve for three years.

D. The office shall be honorary and without compensation.

§ 9-415 Trustees; organization; appointment of librarian

A. The trustees shall have charge of the library and all library property. They shall meet for business purposes each month, and at such other times as they shall appoint, at a place to be provided for the purpose. They may elect from their body a president and secretary, and may adopt an official seal. The secretary shall keep a full statement and account of all property, receipts and expenditures, and a record of the proceedings of the board.

B. The trustees may appoint a librarian.

§ 9-416 Powers of trustees

The trustees, by a majority vote of their members recorded in the minutes with the ayes and nays at length, may:

Make and enforce all rules, regulations and by-laws necessary for the administration and government of the library and all library property.
Exercise and administer any trust declared or created for the library or reading room.
Define the powers and prescribe the duties of officers and elect and remove at will officers and assistants.
Purchase necessary books, journals, publications and other personal property.
Order the drawing and payment, upon properly authenticated vouchers, certified by the president and secretary, of money out of the library fund for any liability authorized.
Fix the salary of the librarian.
By and with the consent and approval of the governing body of the city or town, purchase real property and erect and equip buildings as may be necessary for the library and reading rooms.

§ 9-417 Audit and payment of claims

The warrant of the trustees, when made and authenticated as provided in section 9-416, shall be verified and audited by the auditing officer, and paid by the treasurer of the city or town from the library fund.

§ 9-418 Annual reports by trustees

A. The trustees, on or before the first Monday of July of each year, shall make a report to the governing body of the city or town containing:

A full statement of all property and money received, where derived and how used and expended.
The number of books, journals and other publications on hand, the number added by gift, purchase or otherwise during the year, the number lost or missing and the number and kind of those loaned.
Such other statistics, information and suggestions as may be of general interest.

B. A financial report, showing all receipts and disbursements of money, shall be made by the secretary of the board of trustees, verified by oath.

§ 9-419 Regulation of library use; use of land for library

A. A city or town in which a public library is established may pass ordinances for the protection of the library and library property, and imposing penalties for punishment of persons committing injury to the library or its property or books, or for failure to return a book or other library property.

B. The city or town may grant, donate or authorize the use of land belonging to the city or town, or dedicated to public use therein, for the purpose of erecting and maintaining a building to be used only for a public library and reading room.

§ 9-420 Contracts between city or town and the Arizona state library; expenditure of public monies

The governing body of a city or town having a free library, or a library established under this article, may enter into a contract with the Arizona state library, archives and public records to provide supervision by the state library of expenditures of all monies involved in financing a library service or construction project when any portion of the monies is allocated by the federal government.

Article 3 Remote Municipal Property as Water Source

§ 9-431 Finding of statewide concern; preemption of city charter

The ownership by cities and towns of tracts of land in counties other than the county in which the city or town is located from which water is or may be withdrawn or diverted and transported that causes the removal of the municipal property from the tax roll of the county in which the lands are located thereby reducing the taxing and bonding capacity of the county and other political subdivisions in which the property is located is an issue of statewide concern that requires regulation by this state, notwithstanding any provisions of a city charter.

§ 9-432 Remote municipal property as water source; payments in lieu of property taxes required to transport water

A. In exercising the powers granted by this title or by charter, a city, town or successor political subdivision, acting through its governing body, may make voluntary contributions of money to this state in lieu of taxes otherwise levied by taxing jurisdictions on any of the city's, town's or political subdivision's remote municipal property, as defined in section 42-15251.

B. Water may not be transported by a city, town or political subdivision from the remote municipal property unless voluntary contributions under this article are current and have been paid, together with any applicable penalties and interest, in the amount determined under section 42-15253, beginning with the year in which the property was purchased or January 1, 1992, whichever is later.

C. The city or town may alienate all or part of its interest in the remote municipal property at any time, and if it does so, the city or town shall terminate its payments under this article with respect to the alienated property. If the city or town conveys all or part of its interest in the remote municipal property to another political subdivision, the political subdivision shall continue the payments under this article with respect to the transferred property.

§ 9-433 Voluntary contributions; payment; interest on delinquent payments

A. On or before April 1 of each year each city, town or successor political subdivision that elects to make voluntary contributions under section 9-432 shall notify the county assessor of the county in which the property is located of its election to make a contribution under this article.

B. The city, town or political subdivision shall pay to the county treasurer of the county in which the property is located one-half of the amount determined pursuant to section 42-15253 not later than the first Monday in November and the other one-half not later than the first Monday in May of the next year. The city or town shall make these payments solely from the revenues of any utility undertaking as defined in section 9-521. The payments shall be treated as an expense of operation and maintenance of the utility undertaking. If the city or town has no utility undertaking or discontinues ownership of its utility undertaking after purchase of the land, the payments shall be made solely from proceeds of excise taxes collected by the city or town or levied and collected by this state and distributed to the city or town.

C. Payments that are not paid when due under this section bear simple interest at the rate of sixteen per cent per year.

Article 4 Housing Development

§ 9-441 Definitions

In this article, unless the context otherwise requires:

"Housing" means any structure suitable for residence by an individual or family.
"Housing development area" means an area within a municipality that is declared by the local governing body to be in serious need of housing and that is declared to be in need of the expenditure of public monies to assist the development of housing in the area.
"Housing development project" means any undertaking related to real property, structures or improvements in a housing development area, for the purpose of establishing housing and other facilities necessary or incidental to the housing and primarily for the use of those residing in the housing.
"Local governing body" means the council or legislative body charged with governing the municipality.
"Municipality" means an incorporated city or town.
"Obligee" includes any bondholder, any agents or trustees for any bondholders or any lessor demising to the municipality property used in connection with a housing development project, or any assignee or assignees of such lessor's interest or any part of the lessor's interest, and the federal government when it is a party to any contract with the municipality.

§ 9-441.01 Public purpose; declaration of housing development area by local governing body

A. It is a valid public purpose of municipalities to assist in providing for the acquisition, construction or rehabilitation of housing and other facilities necessary or incidental to the housing and primarily for the use of those residing in the housing, in areas that are declared by the municipality to be housing development areas, and public monies may be spent for these purposes in these areas.

B. Before exercising any of the powers conferred on municipalities by this article, the local governing body shall adopt a resolution finding that a shortage of housing exists in a certain area of the municipality, that the area is declared to be a housing development area and that assisting in the development of housing in the area is in the interests of the public health, safety, morals or welfare of the residents of the municipality. The resolution shall also establish the boundaries of the housing development area, provided that the local governing body may not approve a housing development plan if doing so would result in more than twenty per cent of the geographical area of the municipality being included in housing development areas.

§ 9-441.02 Powers of municipalities

A. A municipality has the authority to carry out the provisions of this article, including the following:

Enter into contracts or leases with developers of housing development projects containing covenants, restrictions and conditions regarding the use of the property for residential purposes.
Finance or refinance, by loan, grant, lease or otherwise contract with private developers to, construct, purchase, acquire, own, modify, maintain, improve, sell, operate, develop or manage housing development projects, and pay the costs of any housing development project from the proceeds of bonds or other obligations of the municipality or any other monies of the municipality, or from any contributions or loans by persons, corporations, partnerships or other entities, all of which the municipality is authorized to receive, accept and use.
Encourage and promote the improvement and revitalization of a housing development area and make, contract for or otherwise cause to be made long-range proposals for the housing development area.
Enter into contracts necessary to effectuate the purposes of this article.
Do all things necessary or convenient to carry out the powers conferred by this article, except acquire real property by eminent domain for the purpose of this article unless a property owner voluntarily offers the property owner's real property for sale.

B. This section does not affect the authority of local governing bodies to acquire property by eminent domain in slum or blighted areas established under title 36.

§ 9-441.03 Issuance of bonds

A. A municipality may issue bonds to finance any housing development project under this article, including the payment of principal and interest on any advances for surveys and plans for housing development projects, and may also issue refunding bonds for the payment or retirement of such bonds previously issued by it. The bonds shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues and monies of the municipality derived from or held in connection with its undertaking and carrying out of housing development projects under this article, whether or not they are financed in whole or in part with the proceeds of such bonds, but payment of the bonds, both as to principal and interest, may be further or exclusively secured by a pledge or any loan, grant or contribution from the federal government or any other source, whether public or private, in aid of any housing development areas of the municipality established pursuant to this article and by a mortgage of any such housing development areas.

B. The bonds and other obligations of the municipality issued pursuant to subsection A are not a general obligation or general debt of the municipality, this state or any of its political subdivisions, and neither the municipality, this state nor any of its political subdivisions are generally liable for the bonds or obligations. The bonds or obligations shall not give rise to a general obligation or liability of the municipality, this state or any of its political subdivisions, or a charge against their general credit or taxing powers, and shall not be payable from any monies or properties other than those monies or properties specifically described in subsection A, and the bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Bonds issued under this article are declared to be issued for an essential public and governmental purpose and, together with interest and income, are exempt from all taxes.

C. Bonds issued under this section shall be authorized by a resolution of the local governing body, may be issued in one or more series and shall bear a date or dates, be payable on demand or mature at a time or times, bear interest at a rate or rates that may be fixed or variable, be in a denomination or denominations, be in a form, carry conversion or registration privileges, have rank or priority, be executed in a manner, be payable in a medium of payment, at a place or places, and be subject to terms of redemption, with or without premium, as provided by the resolution, trust indenture or mortgage issued for the bonds.

D. The bonds or any bonds issued to refund the bonds may be sold at public or private sale or by an on-line bidding process at a price or prices determined by the local governing body or may be exchanged for other bonds. If bonds are sold at public sale, notice shall be published once at least ten days before the sale in a newspaper of general circulation in the area of operation or in another medium of publication as the municipality determines. If bonds are sold through an on-line bidding process, bids for the bonds that are entered into the system may be concealed until a specified time or disclosed in the on-line bidding process, may be subject to improvement in favor of the municipality before a specified time and may be for an entire issue of bonds or specified maturities according to the manner, terms and notice provisions ordered by the governing body. For purposes of this subsection, "on-line bidding process" means a procurement process in which the governing body receives bids electronically over the internet in a real-time, competitive bidding event.

E. If any other public officials of the municipality whose signatures appear on any bonds issued under this article cease to be officials before delivery of the bonds, their signatures are valid and sufficient for all purposes the same as if the officials had remained in office until delivery. Bonds issued pursuant to this article are fully negotiable.

F. In any action or proceedings involving the validity or enforceability of any bond issued under this article or the security for the bond, the recitation in substance in the bond that it has been issued by the municipality in connection with a housing development area is conclusive proof that the bond was issued for that purpose, and that area is conclusively deemed to have been planned, located and carried out in accordance with the purposes and provisions of this article.

G. Neither the members of the local governing body nor any persons executing the bonds are liable personally on the bonds by reason of their issuance.

§ 9-441.04 Additional security for bonds

A. In connection with the issuance of bonds pursuant to section 9-441.03, or the incurring of obligations under leases, and in order to secure the payment of these bonds or obligations, a municipality, in addition to its other powers, may:

Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which shall consent to and the manner in which the consent may be given.
Vest in any obligees the right to enforce the payment of the bonds or any covenants securing or relating to the bonds.
Vest in any obligee holding a specified amount of such bonds the right, in the event of a default, to take possession of and use, operate and manage any housing development area or any part of the area, title to which is in the municipality, or any monies connected with the development, to collect the rents and revenues arising from the development and to dispose of the monies in accordance with the agreement of the municipality with such obligees.
Provide for the powers and duties of the obligees and limit the liabilities of the obligees.
Provide the terms and conditions on which the obligees may enforce any covenant or rights securing or relating to the bonds.
Exercise all or any part or combination of the powers granted by this subsection.
Make covenants and do any and all acts and things necessary, convenient or desirable to secure its bonds, or, in the discretion of the municipality, as will tend to make the bonds more marketable even if the covenants, acts or things are not enumerated in this section.

B. A municipality, by its resolution, trust indenture, mortgage, lease or other contract, may confer on any obligee holding or representing a specified amount in bonds issued pursuant to section 9-441.03 the right, in addition to all rights that may otherwise be conferred, on the happening of an event of default as defined in such resolution or instrument, by an action or proceeding in any court of competent jurisdiction, both of the following:

To require the municipality and its officials, agents and employees to account as if it and they were the trustees of an express trust.
To obtain the appointment of a receiver of any housing development area of the municipality or any part of the area, title to which is in the municipality, and of the rents and profits from the development.

C. If a receiver is appointed, the receiver may enter and take possession of, carry out, operate and maintain the housing development area or any part of the area and collect and receive all fees, rents, revenues or other charges and shall keep monies in a separate account and apply them in accordance with the obligations of the municipality as the court directs.

§ 9-441.05 Construction of bond provisions

This article without reference to other statutes, constitutes full authority for the authorization and issuance of bonds under section 9-441.03. Except as provided in section 9-441.07, bonds authorized under this article are not subject to the provisions of any other state law or charter relating to the issuance or sale of bonds.

§ 9-441.06 Certification of bonds by attorney general

A. Any bonds to be issued under section 9-441.03 may be submitted to the attorney general after all proceedings for issuance of the bonds have been taken. On submission of the proceedings to the attorney general, the attorney general shall examine into and pass upon the validity of the bonds and the regularity of all proceedings in connection with the bonds.

B. If the proceedings conform to this article and are otherwise regular in form, and if the bonds when delivered and paid for will constitute binding and legal obligations enforceable according to their terms, the attorney general shall certify in substance on the back of each of the bonds that it is issued in accordance with the constitution and laws of this state.

§ 9-441.07 Use of municipal revenue powers to provide monies for project

Every municipality may use its monies for the purposes of aiding in the planning, undertaking or carrying out of a housing development project in its area of operations. To obtain monies for this purpose, every municipality, in addition to other powers set forth in this article, may levy taxes, incur indebtedness and issue bonds in amounts the local governing body determines by resolution are necessary for the purpose of raising monies for use in connection with a housing development project. Any bonds to be issued by the municipality pursuant to this section shall be issued in the manner and within the limitations prescribed by the laws of this state for the issuance and authorization of bonds for public purposes generally.

Article 5 Cemeteries

§ 9-451 Procedure for vacating cemeteries

A. When a cemetery or ground used as a cemetery within the corporate limits of a city or town has been abandoned and ceases to be used for such purposes, or when in the judgment of the governing body of the city or town, the cemetery or ground so used is unfit or unsuited for cemetery purposes, or becomes obnoxious, or can be used for other public purposes to better advantage, the governing body may by resolution direct that the cemetery or ground used as a cemetery be vacated.

B. Upon the passage of an ordinance or resolution vacating a cemetery, public notice thereof shall be published in the official newspaper of the city or town for at least four consecutive weeks.

C. If, within six months from the date of the first publication of notice, the remains of any person buried within the cemetery are claimed by a relative of the person for reburial, the remains shall be delivered to the relative.

D. At the expiration of the six months period, the remains of persons buried in the cemetery which can be identified or which have monuments or gravestones at the respective graves and which have not been claimed by relatives shall be removed to some other cemetery or suitable place, and all monuments and gravestones shall also be removed, replaced and reset at the respective graves as before removal. In addition, each grave shall be numbered in numerical order, the numbers to be carved on a suitable slab of stone or hardwood and placed at the foot of the grave, and a list of the names of those buried and the number of the grave in which the remains rest shall be recorded in the office of the city or town clerk, the expense thereof to be paid by the city or town.

E. At the expiration of six months after notice, the governing body may order that the remains of persons which have not been claimed and cannot be identified and have no monuments or gravestones at the graves, be removed and buried as set forth in this section, or be removed and cremated, or left in the vacated cemetery and the surface of the ground leveled.

F. When a cemetery which is the property of a municipal corporation is vacated or partially vacated, the cemetery shall be used as a public park.

G. A map or plat shall be recorded in the office of the city or town clerk showing the exact location in the cemetery of the remains of persons remaining in the cemetery. A monument shall be erected in some suitable location bearing the names, if possible, of the persons whose remains are allowed to remain in the cemetery.

§ 9-452 Conveyance of title to vacated cemetery

When the title to the cemetery or ground vacated is vested in the townsite trustee, or in a trustee for cemetery purposes, it shall be conveyed to the city or town, and used for such public purposes as the common council may direct.

§ 9-453 Cemetery maintenance fund

A. The governing body of a city or town having and maintaining a cemetery may establish a maintenance fund to provide for the maintenance and care of such cemetery. Such maintenance fund shall consist of all amounts received by the city or town in the form of bequests, donations, grants or gifts of all kinds or property, in fee simple or otherwise, for the purpose of cemetery maintenance, and cities and towns are empowered to accept such bequests, donations, grants and gifts to become part of such maintenance funds. In addition, there may be paid into such fund each year such amounts as the governing body may determine.

B. All amounts paid into or that become a part of a cemetery maintenance fund may be invested or reinvested by the governing body in the manner provided in section 38-848 for the investment of funds of the public safety personnel retirement system, and the duties, limitations, and obligations of the governing body with respect to such maintenance fund shall, so far as practical, be the same as the duties, limitations and obligations of the board of trustees with respect to the funds of the public safety personnel retirement system.

Article 6 Municipal Planning

§ 9-461 Definitions

In this article, unless the context otherwise requires:

"Aggregate" means cinder, crushed rock or stone, decomposed granite, gravel, pumice, pumicite and sand.
"General plan" means a municipal statement of land development policies, that may include maps, charts, graphs and text that set forth objectives, principles and standards for local growth and redevelopment enacted under the provisions of this article or any prior statute.
"Municipal" or "municipality" means an incorporated city or town.
"Planning agency" means the official body designated by local ordinance to carry out the purposes of this article and may be a planning department, a planning commission, a hearing officer, the legislative body itself, or any combination thereof.
"Right-of-way" means any public right-of-way and includes any area required for public use pursuant to any general or specific plan.
"Specific plan" means a detailed element of the general plan enacted under the provisions of this article or a prior statute.
"Street" means streets, highways, freeways, expressways, avenues, boulevards, parkways, roads, lanes, walks, alleys, viaducts, subways, tunnels, bridges, public access easements and rights-of-way.
"Subdivision regulations" means a municipal ordinance regulating the design and improvement of subdivisions enacted under the provisions of article 6.2 of this chapter, or any prior statute, regulating the design and improvement of subdivisions.
"Zoning ordinance" means a municipal ordinance regulating the use of land or structures, or both, under the provisions of this article.

§ 9-461.01 Planning agency; powers and duties

A. The legislative body of a municipality may by ordinance establish a planning agency.

B. The planning agency shall:

Develop and maintain a general plan.
Develop such specific plans as may be necessary to implement the general plan.
Periodically review the capital improvement program of the municipality.
Perform such other planning functions as the legislative body may provide.

C. Each planning agency has the powers necessary to enable it to fulfill its planning functions as provided in this article. It may:

Contract for, receive and utilize any grants or other financial assistance made available by a municipality, a county, the state or the federal government.
Contract with the state or federal government and any of its agencies, or the legislative body of any municipality or county.

§ 9-461.02 Planning commission; creation; limitations

If a municipal planning commission is created, the organization, number of members, the terms of office and the method of appointment and removal shall be as provided by local ordinance, except that each municipal planning commission shall have at least five members.

§ 9-461.03 Planning department

A. The legislative body of any municipality may establish a planning department. The officers and employees that the legislative body deems necessary for the department shall be appointed by the appointing authority of the municipality.

B. The appointing authority of each municipality may appoint a director of planning.

C. The legislative body of any municipality may employ or contract with consultants for such services as it requires.

§ 9-461.04 Financing

The municipal legislative body shall provide the funds, equipment and accommodations necessary for the work of the planning agency of the municipality.

§ 9-461.05 General plans; authority; scope

A. Each planning agency shall prepare and the governing body of each municipality shall adopt a comprehensive, long-range general plan for the development of the municipality. The planning agency shall coordinate the production of its general plan with the creation of the state land department conceptual land use plans under title 37, chapter 2, article 5.1 and shall cooperate with the state land department regarding integrating the conceptual state land use plans into the municipality's general land use plan. The general plan shall include provisions that identify changes or modifications to the plan that constitute amendments and major amendments. The plan shall be adopted and readopted in the manner prescribed by section 9-461.06.

B. The general plan shall be so prepared that all or individual elements of the plan may be adopted by the governing body and that the plan may be made applicable to all or part of the territory of the municipality.

C. The general plan shall consist of a statement of community goals and development policies. The plan shall include maps, any necessary diagrams and text setting forth objectives, principles, standards and plan proposals. The plan shall include the following elements:

A land use element that:

(a) Designates the proposed general distribution and location and extent of such uses of the land for housing, business, industry, agriculture, recreation, education, public buildings and grounds, open space and other categories of public and private uses of land as may be appropriate to the municipality.

(b) Includes a statement of the standards of population density and building intensity recommended for the various land use categories covered by the plan.

(c) Identifies specific programs and policies that the municipality may use to promote infill or compact form development activity and locations where those development patterns should be encouraged.

(d) Includes consideration of air quality and access to incident solar energy for all general categories of land use.

(e) Includes policies that address maintaining a broad variety of land uses, including the range of uses existing in the municipality when the plan is adopted, readopted or amended.

(f) For cities and towns with territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461, includes consideration of military airport or ancillary military facility operations. If a city or town includes land in a high noise or accident potential zone as defined in section 28-8461, the city or town shall identify the boundaries of the high noise or accident potential zone in its general plan for purposes of planning land uses in the high noise or accident potential zone that are compatible with the operation of the military airport or ancillary military facility pursuant to section 28-8481, subsection J.

(g) Includes sources of aggregates from maps that are available from state agencies, information from the Arizona geological survey on how to locate existing mines, consideration of existing mining operations and suitable geologic resources, policies to preserve currently identified aggregates sufficient for future development and policies to avoid incompatible land uses, except that this subdivision does not affect any permitted underground storage facility or limit any person's right to obtain a permit for an underground storage facility pursuant to title 45, chapter 3.1.

(h) For a city or town that contains any portion of an influence area of a military installation or range or Arizona national guard site, include consideration of the military installation's or range's or Arizona national guard site's operations. The city or town shall identify the boundaries of the influence area in the general plan for the purposes of planning land uses in the influence area that are compatible with the operation of the military installation or range or Arizona national guard site. For the purposes of this subdivision, "influence area" and "military installation or range or Arizona national guard site" have the same meanings prescribed in section 9-500.50.

A circulation element consisting of the general location and extent of existing and proposed freeways, arterial and collector streets, bicycle routes and any other modes of transportation as may be appropriate, all correlated with the land use element of the plan.

D. For cities and towns with a population of more than two thousand five hundred persons but less than ten thousand persons and whose population growth rate exceeded an average of two percent per year for the ten-year period before the most recent United States decennial census and for cities and towns with a population of ten thousand or more persons according to the most recent United States decennial census, the general plan shall include, and for other cities and towns the general plan may include:

An open space element that includes:

(a) A comprehensive inventory of open space areas, recreational resources and designations of access points to open space areas and resources.

(b) An analysis of forecasted needs, policies for managing and protecting open space areas and resources and implementation strategies to acquire additional open space areas and further establish recreational resources.

(c) Policies and implementation strategies designed to promote a regional system of integrated open space and recreational resources and a consideration of any existing regional open space plans.

A growth area element, specifically identifying those areas, if any, that are particularly suitable for planned multimodal transportation and infrastructure expansion and improvements designed to support a planned concentration of a variety of uses, such as residential, office, commercial, tourism and industrial uses. This element shall include policies and implementation strategies that are designed to:

(a) Make automobile, transit and other multimodal circulation more efficient, make infrastructure expansion more economical and provide for a rational pattern of land development.

(b) Conserve significant natural resources and open space areas in the growth area and coordinate their location to similar areas outside the growth area's boundaries.

(c) Promote the public and private construction of timely and financially sound infrastructure expansion through the use of infrastructure funding and financing planning that is coordinated with development activity.

An environmental planning element that contains analyses, policies and strategies to address anticipated effects, if any, of plan elements on air quality, water quality and natural resources associated with proposed development under the general plan. The policies and strategies to be developed under this element shall be designed to have community-wide applicability and shall not require the production of an additional environmental impact statement or similar analysis beyond the requirements of state and federal law.
A cost of development element that identifies policies and strategies that the municipality will use to require development to pay its fair share toward the cost of additional public service needs generated by new development, with appropriate exceptions when in the public interest. This element shall include:

(a) A component that identifies various mechanisms that are allowed by law and that can be used to fund and finance additional public services necessary to serve the development, including bonding, special taxing districts, development fees, in lieu fees, facility construction, dedications and service privatization.

(b) A component that identifies policies to ensure that any mechanisms that are adopted by the municipality under this element result in a beneficial use to the development, bear a reasonable relationship to the burden imposed on the municipality to provide additional necessary public services to the development and otherwise are imposed according to law.

A water resources element that addresses:

(a) The known legally and physically available surface water, groundwater and effluent supplies.

(b) The demand for water that will result from future growth projected in the general plan, added to existing uses.

(c) An analysis of how the demand for water that will result from future growth projected in the general plan will be served by the water supplies identified in subdivision (a) of this paragraph or a plan to obtain additional necessary water supplies.

E. The general plan shall include for cities with a population of fifty thousand persons or more and may include for cities with a population of less than fifty thousand persons the following elements or any part or phase of the following elements:

A conservation element for the conservation, development and utilization of natural resources, including forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals and other natural resources. The conservation element may also cover:

(a) The reclamation of land.

(b) Flood control.

(d) Regulation of the use of land in stream channels and other areas required for the accomplishment of the conservation plan.

(e) Prevention, control and correction of the erosion of soils, beaches and shores.

(f) Protection of watersheds.

A recreation element showing a comprehensive system of areas and public sites for recreation, including the following and, if practicable, their locations and proposed development:

(a) Natural reservations.

(b) Parks.

(d) Beaches.

(e) Playgrounds and playfields.

(f) Open space.

(g) Bicycle routes.

(h) Other recreation areas.

The circulation element provided for in subsection C, paragraph 2 of this section shall also include for cities with a population of fifty thousand persons or more and may include for cities with a population of less than fifty thousand persons recommendations concerning parking facilities, building setback requirements and the delineations of such systems on the land, a system of street naming and house and building numbering and other matters as may be related to the improvement of circulation of traffic. The circulation element may also include:

(a) A transportation element showing a comprehensive transportation system, including locations of rights-of-way, terminals, viaducts and grade separations. This element of the plan may also include port, harbor, aviation and related facilities.

(b) A transit element showing a proposed system of rail or transit lines or other mode of transportation as may be appropriate.

A public services and facilities element showing general plans for police, fire, emergency services, sewage, refuse disposal, drainage, local utilities, rights-of-way, easements and facilities for them.
A public buildings element showing locations of civic and community centers, public schools, libraries, police and fire stations and other public buildings.
A housing element consisting of standards and programs for the elimination of substandard dwelling conditions, for the improvement of housing quality, variety and affordability and for provision of adequate sites for housing. This element shall contain an identification and analysis of existing and forecasted housing needs. This element shall be designed to make equal provision for the housing needs of all segments of the community regardless of race, color, creed or economic level.
A conservation, rehabilitation and redevelopment element consisting of plans and programs for:

(a) The elimination of slums and blighted areas.

(b) Community redevelopment, including housing sites, business and industrial sites and public building sites.

A safety element for the protection of the community from natural and artificial hazards, including features necessary for such protection as evacuation routes, peak load water supply requirements, minimum road widths according to function, clearances around structures and geologic hazard mapping in areas of known geologic hazards.
A bicycling element consisting of proposed bicycle facilities such as bicycle routes, bicycle parking areas and designated bicycle street crossing areas.
An energy element that includes:

(a) A component that identifies policies that encourage and provide incentives for efficient use of energy.

(b) An assessment that identifies policies and practices that provide for greater uses of renewable energy sources.

A neighborhood preservation and revitalization element, including:

(a) A component that identifies city programs that promote home ownership, that provide assistance for improving the appearance of neighborhoods and that promote maintenance of both commercial and residential buildings in neighborhoods.

(b) A component that identifies city programs that provide for the safety and security of neighborhoods.

F. The water resources element of the general plan does not require:

New independent hydrogeologic studies.
The city or town to be a water service provider.

G. The land use element of a general plan of a city with a population of more than one million persons shall include protections from encroaching development for any shooting range that is owned by this state and that is located within or adjacent to the exterior municipal boundaries. The general plan shall establish land use categories within at least one-half mile from the exterior boundaries of the shooting range that are consistent with the continued existence of the shooting range and that exclude incompatible uses such as residences, schools, hotels, motels, hospitals or churches except that land zoned to permit these incompatible uses on August 25, 2004 are exempt from this exclusion. For the purposes of this subsection, "shooting range" means a permanently located and improved area that is designed and operated for the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black powder or any other similar sport shooting in an outdoor environment. Shooting range does not include:

Any area for the exclusive use of archery or air guns.
An enclosed indoor facility that is designed to offer a totally controlled shooting environment and that includes impenetrable walls, floor and ceiling, adequate ventilation, lighting systems and acoustical treatment for sound attenuation suitable for the range's approved use.
A national guard facility located in a city or town with a population of more than one million persons.
A facility that was not owned by this state before January 1, 2002.

H. The policies and strategies to be developed under these elements shall be designed to have community-wide applicability. This section does not authorize the imposition of dedications, exactions, fees or other requirements that are not otherwise authorized by law.

§ 9-461.06 Adoption and amendment of general plan; expiration and readoption

A. In municipalities that have territory in a high noise or accident potential zone as defined in section 28-8461, the legislature finds that in general plans and amendments to general plans land use compatibility with the continued operation of a military airport or ancillary military facility as defined in section 28-8461 is a matter of statewide concern.

B. The general plan and any amendment to such plan shall be adopted or readopted in the manner provided in this article.

C. The governing body shall:

Adopt written procedures to provide effective, early and continuous public participation in the development and major amendment of general plans from all geographic, ethnic and economic areas of the municipality. The procedures shall provide for:

(a) The broad dissemination of proposals and alternatives.

(b) The opportunity for written comments.

(d) Open discussions, communications programs and information services.

(e) Consideration of public comments.

Consult with, advise and provide an opportunity for official comment by public officials and agencies, the county, school districts, associations of governments, public land management agencies, the military airport if the municipality has territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461, a military installation range or Arizona national guard site as defined in section 9-500.50, if applicable other appropriate government jurisdictions, public utility companies, civic, educational, professional and other organizations, property owners and citizens generally to secure maximum coordination of plans and to indicate properly located sites for all public purposes on the general plan.

D. At least sixty days before the general plan or an element or major amendment of a general plan is noticed pursuant to subsection E of this section, the planning agency shall transmit the proposal to the planning commission, if any, and the governing body and shall submit a copy for review and further comment to:

The planning agency of the county in which the municipality is located.
Each county or municipality that is contiguous to the corporate limits of the municipality or its area of extraterritorial jurisdiction.
The regional planning agency within which the municipality is located.
The Arizona commerce authority or any other state agency that is subsequently designated as the general planning agency for this state.
The department of water resources for review and comment on the water resources element, if a water resources element is required.
If the general plan or an element or amendment of the general plan is applicable to territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461, the military airport.
If the general plan or an element or major amendment of the general plan is applicable to property in the high noise or accident potential zone of a military airport or ancillary military facility as defined in section 28-8461, the attorney general. For the purposes of this paragraph, "major amendment" means a substantial alteration of the municipality's land use mixture or balance as established in the municipality's existing general plan land use element.
Any person or entity that requests in writing to receive a review copy of the proposal.

E. If the municipality has a planning commission, after considering any recommendations from the review required under subsection D of this section, the planning commission shall hold at least one public hearing before approving a general plan or any amendment to such plan. When the general plan or any major amendment is being adopted, planning commissions in municipalities with populations of more than twenty-five thousand persons shall hold two or more public hearings at different locations within the municipality to promote citizen participation. Notice of the time and place of a hearing and availability of studies and summaries related to the hearing shall be given at least fifteen and not more than thirty calendar days before the hearing by:

Publication at least once in a newspaper of general circulation published or circulated in the municipality, or if there is none, the notice shall be posted in at least ten public places in the municipality.
Such other manner in addition to publication as the municipality may deem necessary or desirable.

F. Action by the planning commission on the general plan or any amendment to the plan shall be transmitted to the governing body of the municipality.

G. Before adopting the general plan, or any amendment to it, the governing body shall hold at least one public hearing. Notice of the time and place of the hearing shall be given in the time and manner provided for the giving of notice of the hearing by the planning commission as specified in subsection E of this section.

H. The adoption or readoption of the general plan or any amendment to such plan shall be by resolution of the governing body of the municipality, after notice as provided for in subsection E of this section. The adoption or readoption of or a major amendment to the general plan shall be approved by affirmative vote of at least two-thirds of the members of the governing body of the municipality. All major amendments to the general plan proposed for adoption by the governing body of a municipality shall be presented at a public hearing held within twelve months after the proposal is made. The general plan, or any amendment to the plan, shall be endorsed in the manner provided by the governing body to show that it has been adopted by the governing body. If the municipality includes property in the high noise or accident potential zone of a military airport or ancillary military facility as defined in section 28-8461, the governing body of the municipality shall send notice of the approval, adoption or readoption of the general plan or major amendment to the general plan to the attorney general by certified mail, return receipt requested, within three business days after the approval, adoption or readoption. If the attorney general determines the approval, adoption or readoption of the general plan or major amendment to the general plan is not in compliance with section 28-8481, subsection J, the attorney general shall notify the municipality by certified mail, return receipt requested, of the determination of noncompliance. The municipality shall receive the notice from the attorney general within twenty-five days after the notice from the municipality to the attorney general is mailed pursuant to this subsection. The effective date of any approval, adoption or readoption of, or major amendment to, the general plan shall be thirty days after the governing body's receipt of the attorney general's determination of noncompliance. Within thirty days after the receipt of a determination of noncompliance by the attorney general as prescribed by this section, the governing body of the municipality shall reconsider any approval, adoption or readoption of, or major amendment to, the general plan that impacts property in the high noise or accident potential zone of a military airport or ancillary military facility as defined in section 28-8461. If the governing body reaffirms a prior action subject to an attorney general's determination of noncompliance pursuant to this section, the attorney general may institute a civil action pursuant to section 28-8481, subsection L. If the governing body timely sends notice pursuant to this subsection and the attorney general fails to timely notify the governing body of a determination of noncompliance, the general plan or major amendment to the general plan shall be deemed to comply with section 28-8481, subsection J. If the motion to adopt or readopt a general plan or an amendment to the general plan fails to pass, the governing body may reconsider the motion in any manner allowed by the governing body's rules of procedure, but any subsequent motion for the adoption or readoption of the general plan or a major amendment to the general plan must be approved by an affirmative vote of at least two-thirds of the members of the governing body. For the purposes of this subsection, "major amendment" means a substantial alteration of the municipality's land use mixture or balance as established in the municipality's existing general plan land use element. The municipality's general plan shall define the criteria to determine if a proposed amendment to the general plan effects a substantial alteration of the municipality's land use mixture or balance as established in the municipality's existing general plan land use element.

I. If the municipality does not have a planning commission, the only procedural steps required for the adoption of the general plan, or any amendment to such plan, shall be those provided in this article for action by the governing body.

J. A copy of the adopted general plan of a municipality shall be sent to the planning agency of the county within which the municipality is located, and such plan or any portion of the plan may be adopted as a part of the county general plan.

K. A general plan, with any amendments, is effective for up to ten years after the date the plan was initially adopted and ratified pursuant to subsection M of this section, or until the plan is readopted pursuant to this subsection and ratified pursuant to subsection M of this section or a new plan is adopted pursuant to this subsection and ratified pursuant to subsection M of this section, and becomes effective. On or before the tenth anniversary of the plan's most recent adoption, the governing body of the municipality shall either readopt the existing plan for an additional term of up to ten years or shall adopt a new general plan as provided by this article.

L. Except for general plans that are required to be submitted to the voters for ratification pursuant to subsection M of this section, the adoption or readoption of a general plan, and any amendment to a general plan, shall not be enacted as an emergency measure and is subject to referendum as provided by article IV, part 1, section 1, subsection (8), Constitution of Arizona, and title 19, chapter 1, article 4.

M. The governing body of a city or town having a population of more than two thousand five hundred persons but less than ten thousand persons and whose population growth rate exceeded an average of two percent per year for the ten-year period before the most recent United States decennial census, and any city or town having a population of ten thousand or more persons, shall submit each new general plan adopted pursuant to subsection K of this section to the voters for ratification at the next regularly scheduled municipal election or at a special election scheduled at least one hundred twenty days after the governing body adopted the plan pursuant to section 16-204. The governing body shall include a general description of the plan and its elements in the municipal election pamphlet and shall provide public copies of the plan in at least two locations that are easily accessible to the public and may include posting on the municipality's official internet website. If a majority of the qualified electors voting on the proposition approves the new plan, it shall become effective as provided by law. If a majority of the qualified electors voting on the proposition fails to approve the new plan, the current plan remains in effect until a new plan is approved by the voters pursuant to this subsection. The governing body shall either resubmit the proposed new plan, or revise the new plan as provided by this section, for subsequent submission to the voters at the next regularly scheduled municipal election or at a special election scheduled at least one hundred twenty days after the governing body readopted the new or revised new plan. All subsequent adoptions and submissions of the new plan or revised plans must comply with the procedures prescribed by this section until the plan is ratified.

N. In applying an open space element or a growth element of a general plan, a municipality shall not designate private land or state trust land as open space, recreation, conservation or agriculture unless the municipality receives the written consent of the landowner or provides an alternative, economically viable designation in the general plan or zoning ordinance, allowing at least one residential dwelling per acre. If the landowner is the prevailing party in any action brought to enforce this subsection, a court shall award fees and other expenses to the landowner. A municipality may designate land as open space without complying with the requirements of this subsection if the land was zoned as open space and used as a golf course pursuant to a zoning ordinance adopted pursuant to article 6.1 of this chapter before May 1, 2000 and the designation does not impose additional conditions, limitations or restrictions on the golf course, unless the land is state trust land that was not planned and zoned as open space pursuant to title 37, chapter 2, article 5.1.

O. A person, after having participated in the public hearing pursuant to subsection H of this section, may file a petition for special action in superior court to review the governing body's decision that does not comply with the mandatory requirement prescribed in section 9-461.05, subsection C, paragraph 1, subdivision (g) within thirty days after the governing body has rendered its decision. The court may affirm, reverse or remand to the governing body, in whole or in part, the decision reviewed for further action that is necessary to comply with the mandatory requirements prescribed in section 9-461.05, subsection C, paragraph 1, subdivision (g).

§ 9-461.07 Administration of general plan

A. After the municipal legislative body has adopted a general plan, or amendment thereto, the planning agency shall undertake the following actions to encourage effectuation of the plan:

Investigate and make recommendations to the legislative body upon reasonable and practical means for putting into effect the general plan or part thereof in order that it will serve as a pattern and guide for the orderly growth and development of the municipality and as a basis for the efficient expenditure of its funds relating to the subjects of the general plan. The measures recommended may include plans, regulations, financial reports and capital budgets.
Render an annual report to the legislative body on the status of the plan and progress in its application.
Endeavor to promote public interest in and understanding of the general plan and regulations relating to it.
Consult and advise with public officials and agencies, public utility companies, civic, educational, professional and other organizations and citizens generally with relation to carrying out the general plan.

B. Upon adoption of a general plan or part thereof, each municipal officer, department, board or commission, and each governmental body, commission or board whose jurisdiction lies entirely or partially within the municipality, whose functions include recommending, preparing plans for or constructing major public works, shall submit to an agency, as designated by the respective municipal legislative body, a list of the proposed public works located entirely or partially within the municipality recommended for planning, initiation or construction during the ensuing fiscal year. The agency shall list and classify all such recommendations and shall prepare a coordinated program of proposed public works for the ensuing fiscal year. Such coordinated program shall be submitted to the municipal planning agency for review and report to such agency as to conformity with the adopted general plan or part thereof.

C. No public real property may be acquired by dedication or otherwise for street, square, park or other public purposes, no public real property may be disposed of, no public street may be vacated or abandoned and no public building or structure may be constructed or authorized, if an adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with such adopted general plan or part thereof. The planning agency shall render its report as to conformity with such adopted general plan or part thereof within forty days after the matter was submitted to it. The provisions of this subsection do not apply to acquisitions or abandonments for street widening or alignment projects of a minor nature if the legislative body so provides by ordinance or resolution.

§ 9-461.08 Authority, scope of specific plans

A. The planning agency may, or if so directed by the legislative body shall, prepare specific plans based on the general plan and drafts of such regulations, programs and legislation as may in the judgment of the agency be required for the systematic execution of the general plan. The planning agency may recommend such plans and measures to the legislative body for adoption.

B. Specific plans may, in addition to recommended zoning ordinances and subdivision regulations, include:

Regulations determining the location of buildings and other improvements with respect to existing rights-of-way, floodplains and public facilities.
Regulations of the use of land, buildings and structures, the height and bulk of buildings and structures and the open spaces around buildings and structures.
Street and highway naming and numbering plans in order to establish the official names of streets and highways, to remove conflicts, duplication and uncertainty among such names, and to provide an orderly system for the numbering of buildings and properties.
A plan and regulations determining the location of infrastructure service area boundaries, consistent with the growth areas element of the general plan, beyond which the municipality may limit or prescribe conditions on publicly financed extensions of water, sewer and street improvements that are necessary to service needs generated by new development. The plan and regulations shall consider all elements of the general plan, including the circulation and public facilities elements. For purposes of this paragraph, publicly financed does not include special taxing district financing other than municipal or county improvement district revenues or bonds. The regulations shall also provide for:

(a) Assigning or delegating administrative functions, powers and duties to municipal officers.

(b) Establishing the procedure for the initial infrastructure service area boundaries and the methodology and procedures for adjusting the boundaries.

Measures required to insure the execution of the general plan.
Other matters which will accomplish the purposes of this article, including procedures for the administration of such regulations.

§ 9-461.09 Procedure for adoption of specific plans and regulations

A. If a municipality has a planning commission, the planning commission shall hold at least one public hearing on a specific plan or regulation prior to any hearing by the legislative body. Notice of the time and place of such hearing shall be given at least fifteen and not more than thirty calendar days before the hearing by:

Publication at least once in a newspaper of general circulation published or circulated in the municipality, or if there is none, by posting in at least ten public places in the municipality.
Such other manner in addition to publication as the municipality may deem necessary or desirable.

B. A copy of any specific plan, regulation or amendment together with the recommendation of the planning commission shall be submitted to the legislative body accompanied by a statement of the planning commission's reasons for such recommendation.

C. Upon receipt of a copy of any proposed specific plan, regulation or amendment of such plan or regulation, the legislative body may by ordinance or resolution adopt the plan or regulation. Before adopting the proposed specific plan or regulation, the legislative body shall hold at least one public hearing. Notice of the time and place of such hearing shall be given in the time and manner provided for the giving of notice of the hearing by the planning commission as provided in subsection A. The specific plan or regulation, as adopted, shall be designated as a specific plan or regulation.

D. If the municipality does not have a planning commission, the only procedural steps required for the adoption of a specific plan, regulation or any amendment to a specific plan or regulation are those provided in this article for action by the legislative body.

§ 9-461.10 Administration of specific plans and regulations

A. The legislative body shall determine and establish administrative rules and procedures for the application and enforcement of specific plans and regulations.

B. The legislative body may assign or delegate administrative powers and duties to the planning agency or any other agency, as necessary, and may create administrative agencies, provide for other officials and for funds for the compensation of such officers, employees and agencies and for the support of their work.

C. No street may be improved and no sewers or connections or improvements may be laid or authorized in any street within any territory for which the legislative body has adopted a specific street or highway plan until the matter has been referred to the planning agency for a report as to conformity with the specific street or highway plan and a copy of the report has been filed with the legislative body, unless one of the following conditions applies:

The street has been accepted, opened or has otherwise received the legal status of a public street prior to the adoption of the plan.
The street corresponds with streets shown on the plan.
The street corresponds with streets shown on a subdivision map or record or survey approved by the legislative body.
The street corresponds with streets shown on a subdivision map previously approved by the planning commission. The report shall be submitted to the legislative body within forty days after the matter was referred to the planning agency.

§ 9-461.11 Extraterritorial jurisdiction; development plans

A. In any county not having a county planning agency with jurisdiction in the unincorporated territory, the legislative body of any municipality may exercise the planning powers granted in this article both to territory within its corporate limits and to that which extends a distance of three contiguous miles in all directions of its corporate limits and is not located in a municipality. Any ordinance intended to have application beyond the corporate limits of the municipality shall expressly state the intention of such applications. Such ordinance shall be adopted in accordance with the provisions set forth therein.

B. The extraterritorial jurisdiction of two or more municipalities whose territorial boundaries are less than six miles apart terminates at a boundary line equidistant from the respective corporate limits of such municipalities, or at such line as is agreed to by the legislative bodies of the respective municipalities.

C. As a prerequisite to the exercise of extraterritorial jurisdiction, the membership of the planning agency charged with the preparation or administration of proposed comprehensive planning for the area of extraterritorial jurisdiction shall be increased to include at least two additional members to represent the unincorporated area. Any additional member shall be a resident of the extraterritorial jurisdiction area outside the corporate limits and shall be appointed by the board of supervisors of the county wherein the unincorporated area is situated. Any such member shall have equal rights, privileges and duties with other members of the planning agency in all matters pertaining to the plans and regulations of the unincorporated area in which they reside both in preparation of the original plans and regulations and in consideration of any proposed amendments to such plans and regulations.

D. Any municipal legislative body exercising the powers granted by this section may provide for the enforcement of its regulations for the area of extraterritorial jurisdiction in the same manner as the regulations for the area within the municipality are enforced.

E. A county may enter into an intergovernmental agreement under the provisions of title 11, chapter 7, article 3 with any tribal government, city or town within the county for the following purposes:

Adoption of a joint development plan that may include land use, circulation, conservation, recreation, transportation and transit, public services and facilities, housing, economic development and public safety.
Adoption of a planning program addressing the timing and sequencing of public facilities and services to serve new and existing development and the staging of development in accordance with the availability of public facilities and services.
Adoption of a capital improvements program containing the following components:

(a) Identification of capital improvements needed to serve new development based on adopted service levels and adequate facilities standards for roads and sewer, water and drainage facilities.

(b) Estimated costs of construction of capital improvements and the timing of construction, expansion or extension of such facilities.

Implementation of the joint development plan through the exercise of planning, zoning, subdivision or land division regulatory powers conferred by law on cities, towns or counties.
Implementation of the capital improvements program through any of the following:

(a) Special assessment and county or municipal improvement districts.

(b) Development fees.

(d) Utility fees and excise taxes.

(e) Any other powers to finance capital improvements by cities or counties conferred by law.

The agreement shall specify how revenues derived from such measures are to be apportioned between the county and city and how such revenues are to be expended and accounted for.

F. The planning, zoning, subdivision or land division regulatory powers under subsection E, paragraph 4 may be exercised by any agency of the city, town or county as designated in the intergovernmental agreement. The agreement shall provide for:

A method of assuring owners of private lands or improvements affected by a joint development plan that:

(a) The exercise of any power conferred upon a city or county pursuant to the establishment of a joint development plan shall not impair or diminish the legal vested rights of any affected property owner.

(b) The county shall not require as a condition of development approval of the construction of any public facility or other exaction which has been included in the calculation of a development fee enacted pursuant to a development fee ordinance unless a credit or reimbursement has been made for the reasonable or excess value of included facilities advanced, dedicated or improved by a developer.

(c) No moratorium on final approval of subdivision plats, building permits or certificates of occupancy shall be adopted pending the adoption of the joint development plan.

(d) A property owner shall be afforded the opportunity at a public hearing held prior to adoption and implementation of the joint development plan to present information and evidence related to any alleged deprivation of the economically viable use of the property. If on the basis of the information and evidence presented there is reason to believe adoption or implementation of the joint development plan may result in a significant deprivation of the economically viable use of the property, adoption or implementation of the plan shall be postponed pending investigation and resolution of the alleged deprivation.

A method of notifying affected persons, including governmental entities, of public hearings on development decisions within the joint planning area.
A method of circulating development applications and recommendations for action for review by affected persons, including governmental entities.
Provisions for appearances at public hearings.
Provisions for defining aggrieved party status for administrative or judicial appeal of development decisions.

G. Notwithstanding any other extraterritorial jurisdictional limitations, the authority of an intergovernmental agreement made pursuant to subsection E may extend to a distance of twenty contiguous miles in any direction from the corporate limits of the city or town entering into such intergovernmental agreement with a county provided that the joint development plan shall apply to at least one of the following:

An area of the county within a three mile radius of the corporate limits of the city or town.
An area of the county within a three mile radius of an unincorporated population center where there is a reasonable expectation of annual population growth of at least six per cent using for purposes of projection the most recent United States decennial or special census.
Any area within the extraterritorial jurisdiction if all the property owners consent in writing to inclusion in the development plan.

§ 9-461.12 Joint action; cooperation with state agencies; land and facilities use

A. Municipal and county planning commissions may upon approval of their respective legislative bodies hold joint meetings concerning matters and problems which are common or impacting upon such jurisdictions.

B. Counties and municipal planning commissions, or any combination thereof, may make cooperative arrangements for a joint director of planning and for such other employees as may be required to operate a joint staff and may contract to render technical service to another commission in the same area. Such arrangements or contracts shall be approved by the legislative bodies having jurisdiction thereof.

C. State departments, agencies, boards or commissions or any political subdivision intending to acquire, dispose of, or construct upon any real property within a municipality shall, prior to such acquisition, disposal, or construction, notify the affected municipality and cooperate to the fullest extent possible to insure conformity with the adopted general plan or part thereof.

D. A county may enter into intergovernmental agreements under the provisions of title 11, chapter 7, article 3 with state departments, agencies, boards or commissions or with Indian tribes to jointly exercise powers relating to:

The means of applying county land use regulations, including zoning and subdivision standards, to projects developed by lessees and transferees of agencies and tribes.
The means of applying county adequate public facilities regulations pertaining to water, sewer, drainage, roads, parks and public safety, including dedication and construction requirements and development fees, to projects developed by lessees and transferees of agencies and Indian tribes.

§ 9-461.13 Prohibited urban growth management requirements

(Caution: 1998 Prop. 105 applies)

A. There shall not be a state mandate that a city, charter city, town or county:

Adopt by ordinance or otherwise any "growth management" plan, however denominated, containing any provisions relating to such issues as mandatory development fees, mandatory air and water quality controls and street and highway environmental impacts, and requiring that, before adoption, the growth management plan, amendments and exceptions be automatically referred to the voters for approval.
Establish or recognize, formally or informally, urban growth boundaries, however denominated, that effectively prevent new urban development and extension of public services outside those boundaries.
Apply or attempt to apply urban growth management restrictions or boundaries to lands owned or held in trust by this state, unless specifically authorized by act of the legislature.

B. There shall not be a state mandate that the attorney general file any action in any court in this state against any local government or official to enforce any provision prohibited by this section.

§ 9-461.14 Public works project planning; utility input; definitions

A. A city or town in the design phase of a public works project shall provide notice and opportunity for comment to all utilities the city or town believes may be impacted by the public works project for the purposes of:

Eliminating or minimizing the need for relocation of aerial, surface and underground facilities of the impacted utilities and, if relocation is unavoidable, minimizing the relocation costs to the extent practicable relative to the cost of the public works project.
Minimizing subsequent reconstruction or modification of utility facilities after completion of the public works project.

B. In addition to the requirements of subsection A of this section, a city or town shall annually post on its website a capital improvement plan containing all public works projects scheduled to be constructed. For a city or town without a website, the information shall be posted on the website operated by an association of cities and towns in this state. A utility may also request that the city or town annually provide a copy of the city or town's capital improvement plan and provide notice of any new projects not included in the plan or changes that advance the start date of any projects already in the plan. The utility shall designate the utility representative to receive the plan and any notice of changes that would add new projects or advance the start date of any projects already in the plan.

C. For the purposes of this section:

"Public works project" has the same meaning prescribed in section 12-1141.
"Utility" has the same meaning prescribed in section 48-5107.

§ 9-461.15 Requirement of planned community prohibited

A. The planning agency of a municipality in exercising its authority pursuant to this title shall not require as part of a subdivision regulation or zoning ordinance that a subdivider or developer establish an association as defined in section 33-1802. A subdivider or developer shall not be penalized because a real estate subdivision or development does not constitute or include a planned community.

B. A municipality may require a subdivider or developer to establish an association to maintain private, common or community owned improvements that are approved and installed as part of a preliminary plat, final plat or specific plan. A municipality shall not require that an association be formed or operated other than for the maintenance of common areas or community owned property. This subsection applies only to planned communities that are established in plats recorded after the effective date of this section.

C. This section does not limit the subdivider or developer in the establishment or authority of any planned community established pursuant to title 33, chapter 16 or limit a subdivider, a developer or an association from requesting and entering into a maintenance agreement with a municipality.

§ 9-461.16 Residential housing; requirements; fees; prohibition

A. Except as provided in subsection B of this section, a city or town shall not adopt a land use regulation or general or specific plan provision, or impose as a condition for approving a building or use permit, a requirement or fee that has the effect of establishing the sales or lease price for a residential housing unit or residential dwelling lot or parcel or that requires a residential housing unit or residential dwelling lot or parcel to be designated for sale or lease to any particular class or group of residents.

B. This section does not limit the authority of a city or town to adopt or enforce a land use regulation, general or specific plan provision or condition of approval creating or implementing an incentive, density bonus or other voluntary provision or condition designed to increase the supply of moderate or lower cost housing.

§ 9-461.17 Telecommunications utility relocation; cost reimbursement; definitions

A. To the fullest extent allowed by law, if any construction project in any municipality that is undertaken individually or jointly by an intergovernmental contract and that is funded in whole or in part by voter-approved municipal bond proceeds requires that a telecommunications utility adjust or otherwise relocate the telecommunications utility's facilities, the municipality shall reimburse the telecommunications utility, or cause the telecommunications utility to be reimbursed, for the telecommunications utility's relocation costs incurred on facilities located within the municipal boundaries.

B. If the telecommunications utility has existing land rights, the municipality shall provide at the municipality's expense the telecommunications utility with equal land rights in the new location of the relocated facilities. If the telecommunications utility's existing facilities are located in the right-of-way under a permit, the municipality shall provide at the municipality's expense the telecommunications utility with rights in the new location of the relocated facilities equivalent to the telecommunications utility's existing rights under the permit.

C. A telecommunications utility shall submit a verified itemized claim to the municipality for reimbursement of relocation costs within one hundred eighty days after each calendar quarter in which a telecommunications utility incurs relocation costs.

D. The municipality shall:

Review each verified itemized claim submitted pursuant to subsection C of this section. The review may include an audit conducted pursuant to standard industry accounting principles.
Reimburse the telecommunications utility for the relocation costs within ninety days after receipt of the verified itemized claim.
Reimburse verified itemized claims from all affected telecommunications utilities in the order of receipt.

E. The reimbursement limitation for paid claims of relocation costs for telecommunications utility facilities for which there are no existing land rights is not more than two percent of the total project monies. The total of the project monies is the total dollar amount of all voter-approved municipal bond proceeds that fund a construction project from time to time.

F. The total amount of reimbursement paid for claims of relocation costs of all telecommunications utility facilities for which there are no existing land rights may not exceed the reimbursement limitation.

G. If a verified itemized claim causes the total amount of all claims for telecommunications utility relocation costs to exceed the reimbursement limitation, that claim shall be reduced so that the total amount of reimbursement paid for all claims for which there are no existing land rights equals the reimbursement limitation.

H. If the dollar amount of the reimbursement limitation increases as a result of an increase in total project funds after the previous reimbursement limitation is exhausted, within thirty days after the reimbursement limitation is increased the municipality shall resume processing previously submitted and new verified itemized claims under this section.

I. The reimbursement limitation does not apply to any claims for reimbursement of relocation costs for telecommunications utility facilities with existing land rights or any amounts paid by the municipality to provide equivalent land or permit rights. These claims and amounts are excluded from the reimbursement limitation.

J. This section does not:

Apply to a construction project funded in whole or in part with voter-approved municipal bond proceeds if approval of the bonds was referred to the voters, or the initiative petition for the bonds was applied for, before January 1, 2017.
Prohibit a municipality from complying with other applicable law, or with an agreement, that requires the municipality to reimburse a telecommunications utility for more relocation costs than this section provides.

K. For the purposes of this section:

"Intergovernmental contract" means the joint exercise of powers authorized by title 11, chapter 7, article 3.
"Municipality" includes a charter city.
"Relocation costs" means all costs of relocating a telecommunications utility's facilities that the telecommunications utility incurs as a direct result of the construction and operation of a construction project. Relocation costs do not include profit but may include a reasonable allocation of general overhead expenses.
"Telecommunications utility" means any public service corporation, licensed cable television operator, video service provider, telephone line or telegraph line corporation, agricultural improvement district or other person engaged in the transmission, sale or delivery of telecommunications, telephone, cable television, video, internet or telegraph service directly to the public or to other users as to be effectively available directly to the public.

§ 9-461.18 Accessory dwelling units; regulation; applicability; definitions

A. A municipality shall adopt regulations that allow on any lot or parcel where a single-family dwelling is allowed all of the following:

At least one attached and one detached accessory dwelling unit as a permitted use.
A minimum of one additional detached accessory dwelling unit as a permitted use on a lot or parcel that is one acre or more in size if at least one accessory dwelling unit on the lot or parcel is a restricted-affordable dwelling unit.
An accessory dwelling unit that is seventy-five percent of the gross floor area of the single-family dwelling on the same lot or parcel or one thousand square feet, whichever is less.

B. A municipality may not do any of the following:

Prohibit the use or advertisement of either the single-family dwelling or any accessory dwelling unit located on the same lot or parcel as separately leased long-term rental housing.
Require a familial, marital, employment or other preexisting relationship between the owner or occupant of a single-family dwelling and the occupant of an accessory dwelling unit located on the same lot or parcel.
Require that a lot or parcel have additional parking to accommodate an accessory dwelling unit or require payment of fees instead of additional parking.
Require that an accessory dwelling unit match the exterior design, roof pitch or finishing materials of the single-family dwelling that is located on the same lot as the accessory dwelling unit.
Set restrictions for accessory dwelling units that are more restrictive than those for single-family dwellings within the same zoning area with regard to height, setbacks, lot size or coverage or building frontage.
Set rear or side setbacks for accessory dwelling units that are more than five feet from the property line.
Require improvements to public streets as a condition of allowing an accessory dwelling unit, except as necessary to reconstruct or repair a public street that is disturbed as a result of the construction of the accessory dwelling unit.
Require a restrictive covenant concerning an accessory dwelling unit on a lot or parcel zoned for residential use by a single-family dwelling.

C. This section does not prohibit restrictive covenants concerning accessory dwelling units entered into between private parties. The municipality may not condition a permit, license or use of an accessory dwelling unit on adopting or implementing a restrictive covenant between private parties.

D. This section does not supersede applicable building codes, fire codes or public health and safety regulations, except that a municipality may not require an accessory dwelling unit to comply with a commercial building code or contain a fire sprinkler.

E. An accessory dwelling unit may not be built on top of a current or planned public utility easement unless the property owner receives written consent from any utility that is currently using the public utility easement or that may use the public utility easement in the future.

F. If a municipality fails to adopt development regulations as required by this section on or before January 1, 2025, accessory dwelling units shall be allowed on all lots or parcels zoned for residential use in the municipality without limits.

G. This section does not apply to lots or parcels that are located on:

Tribal land.
Land that is in the territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461.
Land that is in the territory in the vicinity of a federal aviation administration commercially licensed airport or a general aviation airport or land that is in the territory in the vicinity of a public airport as defined in section 28-8486 and that has a noise level of greater than sixty-five decibels.

H. This section applies to a municipality with a population of more than seventy-five thousand persons.

I. For the purposes of this section:

"Accessory dwelling unit" means a self-contained living unit that is on the same lot or parcel as a single-family dwelling of greater square footage than the accessory dwelling unit, that includes its own sleeping and sanitation facilities and that may include its own kitchen facilities.
"Gross floor area" means the interior habitable area of a single-family dwelling or an accessory dwelling unit.
"Long-term rental" means rental use in which the tenant holds a lease of ninety days or longer or on a month-by-month basis.
"Municipality" means a city or town that exercises zoning powers under this title.
"Permitted use" means the ability for a development to be approved without requiring a public hearing, variance, conditional use permit, special permit or special exception, other than a discretionary zoning action to determine that a site plan conforms with applicable zoning regulations.
"Restricted-affordable dwelling unit" means a dwelling unit that, either through a deed restriction or a development agreement with the municipality, is rented to households earning up to eighty percent of area median income.

§ 9-461.19 Municipal allowed ancillary use; multifamily residential housing; hotel use; regulations; applicability; definitions

A. Notwithstanding any other law, a municipality with a population of two hundred thousand or more persons but not more than five hundred thousand persons shall allow hotel use and multifamily residential housing as an allowed ancillary use on land that is vacant as of the date of the building permit application for the allowed ancillary use in a zoning district that allows light industrial use without requiring any type of application that will require a public hearing if the ancillary use meets both of the following criteria:

The ancillary use is located within an international headquarters campus that is solely owned by either a single entity or related entities at the time that development of the international headquarters campus commences and, on completion, the international headquarters on the international headquarters campus will employ more than one thousand full-time employees at an average annual compensation of more than one hundred twenty-five percent of the median wage of the county where the international headquarters campus is located.
The international headquarters campus that contains the ancillary use is bound by a recorded instrument that is enforceable by the municipality and that does both of the following:

(a) Restricts occupancy in at least thirty percent of the multifamily residential housing units located on the international headquarters campus, which may include units designated pursuant to subsection I of this section at the discretion of the developer, to individuals who are employed at the international headquarters, or who are police officers, firefighters, teachers, veterans or health care workers and who work within five miles of the international headquarters campus or who are the families of individuals employed at the international headquarters. The recorded instrument must also provide that the municipality where the international headquarters campus is located, in the municipality's sole and absolute discretion, may waive the occupancy requirement.

(b) Prohibits an agreement for occupancy of any multifamily residential housing unit within the international headquarters campus for a period of less than ninety consecutive days and limits occupancy to the same occupants for the entirety of the ninety consecutive days unless a tenant of the multifamily residential housing unit is an employee or contractor of an entity located within the international headquarters campus and that employee or contractor performs job duties at the international headquarters. This subdivision does not apply to multifamily housing developments that are platted for individual ownership of units.

B. An ancillary use is subject to compliance with generally applicable municipal building codes and fire codes and the objective development standards pursuant to subsection E of this section.

C. The governing body of the municipality may not unreasonably withhold a building permit or unreasonably delay a building inspection or a certificate of occupancy for an ancillary use that complies with one of the following:

For international headquarters campuses that include multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow a number of multifamily residential units within the international headquarters campus that are equal to twenty-seven units per gross acre based on the total gross acreage of the international headquarters campus.
For campuses that include hotel use as an ancillary use pursuant to this section, a municipality shall allow a number of hotel rooms within the international headquarters campus equal to ten hotel rooms per gross acre based on the total gross acreage of the international headquarters campus. At least ten percent of the hotel rooms within the international headquarters campus shall be allowed as for-sale residential units within the hotel.

D. For campuses that include hotel use or multifamily residential housing units as an ancillary use pursuant to this section, a municipality shall allow complementary retail and restaurant use within the international headquarters campus.

E. The following objective standards apply to an ancillary use building developed pursuant to this section:

A municipality may limit the height of the ancillary use building to two stories in an international headquarters campus site that is located directly adjacent to and within one hundred feet of an area that is zoned for single-family residential use.
Except pursuant to paragraph 1 of this subsection, a municipality may not restrict the maximum height of the ancillary use building to less than six stories, not including mechanical screening or rooftop appurtenances.
Any utility provider that may provide utility service to the ancillary use development may review construction documents to reasonably ensure adequate water and sewer capacity impacted by the proposed ancillary use development.
Existing municipal zoning ordinances for setback and parking requirements for the proposed ancillary use development apply.

F. A building permit for an ancillary use building developed pursuant to this section may not be obtained until the municipality issues a building permit for construction of the international headquarters building. A certificate of occupancy may not be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the international headquarters building.

G. Notwithstanding subsection F of this section, if substantial construction of the international headquarters building has commenced, a certificate of occupancy shall be granted for an ancillary use building developed pursuant to this section before the municipality grants a certificate of occupancy for the international headquarters building if the state land department has received a bond, a letter of credit or any other sufficient financial assurance that, in the reasonable discretion of the state land commissioner, provides for payment to the state land trust of an amount equal to the market sale value of the land and improvements containing the ancillary use development, less development costs, if the municipality does not grant a permanent certificate of occupancy for the international headquarters building within five years after granting the certificate of occupancy for the ancillary use building.

H. A municipality shall consent to amendments to existing development agreements to which the municipality is a signatory that are reasonably necessary to allow for the development of hotel use or multifamily residential use as an ancillary use pursuant to this section.

I. For ten years after the development of an allowed ancillary use development pursuant to this section, the developer shall designate at least five percent of the total for-rent multifamily residential dwellings as affordable units. At the developer's discretion, the units shall be restricted pursuant to subsection A, paragraph 2, subdivision (a) of this section as low-income housing or middle-income housing, or a mixture of both low-income housing and middle-income housing and may be contained within one building or within multiple buildings.

J. This section does not apply to land in the territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461.

K. For the purposes of this section:

"Building code" has the same meaning prescribed in section 9-1301.
"International headquarters" means a principal central administrative office where primary headquarters-related functions and services are performed, including financial, personnel, administrative, legal, human resources, information technology, planning and similar business functions, and that does not report to any parent company outside of this state.
"International headquarters building" means the primary building that contains the international headquarters on the international headquarters campus.
"International headquarters campus" means a contiguous area of not less than forty gross acres, portions of which may be separated by public rights-of-way, on which an international headquarters is located and which may include ancillary use pursuant to this section.
"Light industrial use" includes light manufacturing, semiconductor production, law enforcement support, military research and development and aeronautical use.
"Low-income housing" means housing that is for a person or persons whose household income does not exceed eighty percent of the area median income.
"Middle-income housing" means housing that is for a person or persons whose household income does not exceed one hundred twenty percent of the area median income.
"Related entities" means entities that have more than fifty percent direct or indirect common ownership.
"Zoning district" means a zoning district, planned community district, planned area development or planned unit development.

§ 9-461.20 Municipal housing; standard preapproved housing design plans; indemnification; definition

A. A municipality shall establish standard preapproved housing design plans or a preapproved housing design plan program. The standard preapproved housing design plans developed by the municipality shall include at least three different elevation options for each class of standard preapproved housing design plan. The standard preapproved housing design plan classes are:

Class 1. Beginning July 1, 2026, in areas zoned as single-family residential, the municipality shall create at least three standard preapproved housing design plans for single-family homes, which must range in size from eight hundred square feet to two thousand square feet per single-family home, or three single-family home sizes beginning with the minimum single-family home size allowed by the municipality.
Class 2. Beginning January 1, 2027, in areas zoned as single-family residential that allow for the development of duplexes, the municipality shall create at least three standard preapproved housing design plans for duplex homes, which must range from four hundred square feet to one thousand square feet per duplex unit.
Class 3. Beginning January 1, 2027, in areas zoned as single-family residential that allow for the development of triplexes, the municipality shall create at least three standard preapproved housing design plans for triplex homes, which must range in size from four hundred square feet to one thousand square feet per triplex unit.
Class 4. Beginning July 1, 2026, in areas zoned as single-family residential that allow for the development of accessory dwelling units, the municipality shall create at least three standard preapproved housing design plans for accessory dwelling units. The three standard preapproved housing design plans for accessory dwelling units shall be one of the following sizes:

(a) Two hundred square feet.

(b) Six hundred square feet.

B. A preapproved housing design plan program established pursuant to subsection A of this section shall comply with all of the following:

A municipality shall accept plan submissions for the preapproved housing design plan program for class 1, class 2, class 3 and class 4 plans prescribed by subsection A of this section.
A municipality may not restrict who may submit a preapproved housing design plan pursuant to the preapproved housing design plan program.
A municipality shall approve or deny a preapproved housing design pursuant to the preapproved housing design plan program pursuant to section 9-500.49.
A municipality may charge an applicant who submits a preapproved housing design plan pursuant to the preapproved housing design plan program the same fees that the municipality would charge an applicant who has submitted a request for approval for the same sized class 1, class 2, class 3 and class 4 plans approved pursuant to subsection A of this section.
A municipality shall post plans that are preapproved pursuant to the preapproved housing design plan program on the municipality's official website. Posting by the municipality of a preapproved housing design plan pursuant to the preapproved housing design plan program does not constitute an endorsement by the municipality of the applicant or the applicant's application for a preapproved housing design plan pursuant to the preapproved housing design plan program.
A municipality shall post the contact information of the applicant of preapproved housing design plans submitted pursuant to the preapproved housing design plan program. The municipality is not responsible for the accuracy of the applicant's posted contact information.
A municipality shall remove a preapproved housing design plan submitted pursuant to the preapproved housing design plan program from the municipality's official website within thirty days after receiving a request from the applicant to remove the preapproved housing design plan.
A municipality may include the following class 1, class 2, class 3 and class 4 preapproved housing design plans in the preapproved housing design plan program:

(a) Plans that are developed and approved pursuant to subsection A of this section.

(b) Plans that have been developed and preapproved by other municipalities or agencies in this state.

A municipality shall administratively approve or deny an application for a class 1, class 2, class 3 or class 4 preapproved housing design plan submitted pursuant to the preapproved housing design plan program without discretionary review.

C. Notwithstanding any other law, a municipality may require a person or entity to release and indemnify the municipality and the municipality's employees and contractors as a condition of using a standard preapproved housing design plan.

D. For the purposes of this section, "accessory dwelling unit" has the same meaning prescribed in section 9-461.18.

Article 6.1 Municipal Zoning

§ 9-462 Definitions; general provisions concerning evidence

A. In this article, unless the context otherwise requires:

"Board of adjustment" means the official body designated by local ordinance to hear and decide applications for variances from the terms of the zoning ordinance and appeals from the decision of the zoning administrator.
"Municipal" or "municipality" means an incorporated city or town.
"Planning agency" means the official body designated by local ordinance to carry out the purposes of this article and may be a planning department, a planning commission, a hearing officer, the legislative body itself or any combination thereof.
"Zoning administrator" means the official responsible for enforcement of the zoning ordinance.
"Zoning ordinance" means a municipal ordinance regulating the use of the land or structures, or both, as provided in this article.

B. Formal rules of evidence or procedure which must be followed in court shall not be applied in zoning matters, except to the extent that a municipality may provide therefor.

§ 9-462.01 Zoning regulations; public hearing; definitions

A. Pursuant to this article, the legislative body of any municipality by ordinance, in order to conserve and promote the public health, safety and general welfare, may:

Regulate the use of buildings, structures and land as between agriculture, residence, industry, business and other purposes.
Regulate signs and billboards.
Regulate the location, height, bulk, number of stories and size of buildings and structures, the size and use of lots, yards, courts and other open spaces, the percentage of a lot that may be occupied by a building or structure, access to incident solar energy and the intensity of land use.
Establish requirements for off-street parking and loading.
Establish and maintain building setback lines.
Create civic districts around civic centers, public parks, public buildings or public grounds and establish regulations for the civic districts.
Require as a condition of rezoning public dedication of rights-of-way as streets, alleys, public ways, drainage and public utilities as are reasonably required by or related to the effect of the rezoning.
Establish floodplain zoning districts and regulations to protect life and property from the hazards of periodic inundation. Regulations may include variable lot sizes, special grading or drainage requirements, or other requirements deemed necessary for the public health, safety or general welfare.
Establish special zoning districts or regulations for certain lands characterized by adverse topography, adverse soils, subsidence of the earth, high water table, lack of water or other natural or man-made hazards to life or property. Regulations may include variable lot sizes, special grading or drainage requirements, or other requirements deemed necessary for the public health, safety or general welfare.
Establish districts of historical significance provided that:

(a) The ordinances may require that special permission be obtained for any development within the district if the legislative body has adopted a plan for the preservation of districts of historical significance that meets the requirements of subdivision (b) of this paragraph, and the criteria contained in the ordinance are consistent with the objectives set forth in the plan.

(b) A plan for the preservation of districts of historical significance shall identify districts of special historical significance, state the objectives to be sought concerning the development or preservation of sites, area and structures within the district, and formulate a program for public action, including providing public facilities and regulating private development and demolition necessary to realize these objectives.

(c) The ordinance establishing districts of historical significance shall set forth standards necessary to preserve the historical character of the area so designated.

(d) The ordinances may designate or authorize any committee, commission, department or person to designate structures or sites of special historical significance in accordance with criteria contained in the ordinance, and no designation shall be made except after a public hearing on notice of the owners of record of the property designated of special historical significance. The ordinances may require that special permission be obtained for any development respecting the structures or sites.

Establish age-specific community zoning districts in which residency is restricted to a head of a household or spouse who must be of a specific age or older and in which minors are prohibited from living in the home. Age-specific community zoning districts shall not be overlaid over property without the permission of all owners of property included as part of the district unless all of the property in the district has been developed, advertised and sold or rented under specific age restrictions. The establishment of age-specific community zoning districts is subject to all of the public notice requirements and other procedures prescribed by this article.
Establish procedures, methods and standards for the transfer of development rights within its jurisdiction. Any proposed transfer of development rights from the sending property or to the receiving property shall be subject to the notice and hearing requirements of section 9-462.04 and shall be subject to the approval and consent of the property owners of both the sending and receiving property. Before any transfer of development rights, a municipality shall adopt an ordinance providing for:

(a) The issuance and recordation of the instruments necessary to sever development rights from the sending property and to affix development rights to the receiving property. These instruments shall be executed by the affected property owners and lienholders.

(b) The preservation of the character of the sending property and assurance that the prohibitions against the use and development of the sending property shall bind the landowner and every successor in interest to the landowner.

(c) The severance of transferable development rights from the sending property and the delayed transfer of development rights to a receiving property.

(d) The purchase, sale, exchange or other conveyance of transferable development rights before the rights being affixed to a receiving property.

(e) A system for monitoring the severance, ownership, assignment and transfer of transferable development rights.

(f) The right of a municipality to purchase development rights and to hold them for resale.

(g) The right of a municipality at its discretion to enter into an intergovernmental agreement with another municipality or a county for the transfer of development rights between jurisdictions. The transfer shall comply with this paragraph, except that if the sending property is located in an unincorporated area of a county, the approval of the development rights to be sent to a municipality shall comply with section 11-817.

B. For the purposes of subsection A of this section, the legislative body may divide a municipality, or portion of a municipality, into zones of the number, shape and area it deems best suited to carry out the purpose of this article and articles 6, 6.2 and 6.3 of this chapter.

C. All zoning regulations shall be uniform for each class or kind of building or use of land throughout each zone, but the regulations in one type of zone may differ from those in other types of zones as follows:

Within individual zones, there may be uses permitted on a conditional basis under which additional requirements must be met, including requiring site plan review and approval by the planning agency. The conditional uses are generally characterized by any of the following:

(a) Infrequency of use.

(b) High degree of traffic generation.

Within residential zones, the regulations may permit modifications to minimum yard lot area and height requirements.

D. To carry out the purposes of this article and articles 6 and 6.2 of this chapter, the legislative body may adopt overlay zoning districts and regulations applicable to particular buildings, structures and land within individual zones. For the purposes of this subsection, "overlay zoning district" means a special zoning district that includes regulations that modify regulations in another zoning district with which the overlay zoning district is combined. Overlay zoning districts and regulations shall be adopted pursuant to section 9-462.04.

E. The legislative body may approve a change of zone conditioned on a schedule for development of the specific use or uses for which rezoning is requested. If, at the expiration of this period, the property has not been improved for the use for which it was conditionally approved, the legislative body, after notification by certified mail to the owner and applicant who requested the rezoning, shall schedule a public hearing to take administrative action to extend, remove or determine compliance with the schedule for development or take legislative action to cause the property to revert to its former zoning classification.

F. All zoning and rezoning ordinances or regulations adopted under this article shall be consistent with and conform to the adopted general plan of the municipality, if any, as adopted under article 6 of this chapter. In the case of uncertainty in construing or applying the conformity of any part of a proposed rezoning ordinance to the adopted general plan of the municipality, the ordinance shall be construed in a manner that will further the implementation of, and not be contrary to, the goals, policies and applicable elements of the general plan. A rezoning ordinance conforms with the land use element of the general plan if it proposes land uses, densities or intensities within the range of identified uses, densities and intensities of the land use element of the general plan.

G. A regulation or ordinance under this section may not prevent or restrict agricultural composting on farmland that is five or more contiguous acres and that meets the requirements of this subsection. An agricultural composting operation shall notify in writing the legislative body of the municipality and the nearest fire department of the location of the composting operation. If the nearest fire department is located in a different municipality from the agricultural composting operation, the agricultural composting operation shall also notify in writing the fire department of the municipality in which the operation is located. Agricultural composting is subject to sections 3-112 and 49-141. Agricultural composting may not be conducted within one thousand three hundred twenty feet of an existing residential use, unless the operations are conducted on farmland or land leased in association with farmland. Any disposal of manure shall comply with section 49-247. For the purposes of this subsection:

"Agricultural composting" means the controlled biological decomposition of organic solid waste under in-vessel anaerobic or aerobic conditions where all or part of the materials are generated on the farmland or will be used on the farmland associated with the agricultural composting operation.
"Farmland" has the same meaning prescribed in section 3-111 and is subject to regulation under section 49-247.

H. A municipality may not adopt a land use regulation or impose any condition for issuance of a building or use permit or other approval that violates section 9-461.16.

I. In accordance with article II, sections 1 and 2, Constitution of Arizona, the legislative body of a municipality shall consider the individual property rights and personal liberties of the residents of the municipality before adopting any zoning ordinance.

J. Before adopting any zoning ordinance or zoning ordinance text amendment of general applicability, the legislative body of a municipality shall consider a housing impact statement regarding the impact of the zoning ordinance or zoning ordinance text amendment that shall include:

A general estimate of the probable impact on the average cost to construct housing for sale or rent within the zoning districts to which the zoning ordinance or text amendment applies.
A description of any data or reference material on which the proposed zoning ordinance or text amendment is based.
A description of any less costly or less restrictive alternative methods of achieving the purpose of the proposed zoning ordinance or text amendment.

K. A municipality may not adopt or enforce a land use regulation that requires the property on which a nongovernmental primary or secondary school operates to be larger than one acre.

L. For the purposes of this section:

"Development rights" means the maximum development that would be allowed on the sending property under any general or specific plan and local zoning ordinance of a municipality in effect on the date the municipality adopts an ordinance pursuant to subsection A, paragraph 12 of this section respecting the permissible use, area, bulk or height of improvements made to the lot or parcel. Development rights may be calculated and allocated in accordance with factors including dwelling units, area, floor area, floor area ratio, height limitations, traffic generation or any other criteria that will quantify a value for the development rights in a manner that will carry out the objectives of this section.
"Receiving property" means a lot or parcel within which development rights are increased pursuant to a transfer of development rights. Receiving property shall be appropriate and suitable for development and shall be sufficient to accommodate the transferable development rights of the sending property without substantial adverse environmental, economic or social impact to the receiving property or to neighboring property.
"Sending property" means a lot or parcel with special characteristics, including farmland, woodland, desert land, mountain land, floodplain, natural habitats, recreation or parkland, including golf course area, or land that has unique aesthetic, architectural or historic value that a municipality desires to protect from future development.
"Transfer of development rights" means the process by which development rights from a sending property are affixed to one or more receiving properties.

§ 9-462.02 Nonconformance to regulations; outdoor advertising change; enforcement

A. The municipality may acquire by purchase or condemnation private property for the removal of nonconforming uses and structures. The elimination of such nonconforming uses and structures in a zoned district is for a public purpose. Nothing in an ordinance or regulation authorized by this article shall affect existing property or the right to its continued use for the purpose used at the time the ordinance or regulation takes effect, nor to any reasonable repairs or alterations in buildings or property used for such existing purpose.

B. A municipality shall not require as a condition for a permit or for any approval, or otherwise cause, an owner or possessor of property to waive the right to continue an existing nonconforming outdoor advertising use or structure without acquiring the use or structure by purchase or condemnation and paying just compensation unless the municipality, at its option, allows the use or structure to be relocated to a comparable site in the municipality with the same or a similar zoning classification, or to another site in the municipality acceptable to both the municipality and the owner of the use or structure, and the use or structure is relocated to the other site. The municipality shall pay for relocating the outdoor advertising use or structure including the cost of removing and constructing the new use or structure that is at least the same size and height. This subsection does not apply to municipal rezoning of property at the request of the property owner.

C. A municipality must issue a citation and file an action involving an outdoor advertising use or structure zoning or sign code violation within two years after discovering the violation. Such an action shall initially be filed with a court having jurisdiction to impose all penalties sought by the action and that jurisdiction is necessary for effective filing. Only the superior court has jurisdiction to order removal, abatement, reconfiguration or relocation of an outdoor advertising use or structure. Notwithstanding any other law, a municipality shall not consider each day that an outdoor advertising use or structure is illegally erected, constructed, reconstructed, altered or maintained as a separate offense unless the violation constitutes an immediate threat to the health and safety of the general public.

§ 9-462.03 Amendment procedure

A. The governing body of the municipality shall adopt by ordinance a citizen review process that applies to all rezoning and specific plan applications that require a public hearing. The citizen review process shall include at least the following requirements:

Adjacent landowners and other potentially affected citizens will be notified of the application.
The municipality will inform adjacent landowners and other potentially affected citizens of the substance of the proposed rezoning.
Adjacent landowners and other potentially affected citizens will be provided an opportunity to express any issues or concerns that they may have with the proposed rezoning before the public hearing.

B. A zoning ordinance that changes any property from one zone to another, that imposes any regulation not previously imposed or that removes or modifies any such regulation previously imposed must be adopted following the procedure prescribed in the citizen review process and in the manner set forth in section 9-462.04.

§ 9-462.04 Public hearing required; definition

A. If the municipality has a planning commission or a hearing officer, the planning commission or hearing officer shall hold a public hearing on any zoning ordinance. Notice of the time and place of the hearing, including a general explanation of the matter to be considered and a general description of the area affected, shall be given at least fifteen days before the hearing in the following manner:

The notice shall be published at least once in a newspaper of general circulation published or circulated in the municipality, or if there is none, it shall be posted on the affected property in such a manner as to be legible from the public right-of-way and in at least ten public places in the municipality. A posted notice shall be printed so that the following are visible from a distance of one hundred feet: the word "zoning", the present zoning district classification, the proposed zoning district classification and the date and time of the hearing.
In proceedings involving rezoning of land that abuts other municipalities or unincorporated areas of the county or a combination of a municipality and an unincorporated area, copies of the notice of public hearing shall be transmitted to the planning agency of the governmental unit abutting such land. In proceedings involving rezoning of land that is located within the territor1y in the vicinity of a military airport or ancillary military facility as defined in section 28-8461 or within the influence area of a military installation or range or Arizona national guard site, the municipality shall send copies of the notice of public hearing by first class mail to the military airport or military installation or range or Arizona national guard site. In addition to notice by publication, a municipality may give notice of the hearing in any other manner that the municipality deems necessary or desirable. For the purposes of this paragraph, "influence area" and "military installation or range or Arizona national guard site" have the same meanings prescribed in section 9-500.50.
In proceedings that are not initiated by the property owner involving rezoning of land that may change the zoning classification, notice by first class mail shall be sent to each real property owner, as shown on the last assessment of the property, of the area to be rezoned and all property owners, as shown on the last assessment of the property, within three hundred feet of the property to be rezoned.
In proceedings involving one or more of the following proposed changes or related series of changes in the standards governing land uses, notice shall be provided in the manner prescribed by paragraph 5 of this subsection:

(a) A ten percent or more increase or decrease in the number of square feet or units that may be developed.

(b) A ten percent or more increase or reduction in the allowable height of buildings.

(d) A ten percent or more increase or decrease in setback or open space requirements.

(e) An increase or reduction in permitted uses.

In proceedings governed by paragraph 4 of this subsection, the municipality shall provide notice to real property owners pursuant to at least one of the following notification procedures:

(a) Notice shall be sent by first class mail to each real property owner, as shown on the last assessment, whose real property is directly governed by the changes.

(b) If the municipality issues utility bills or other mass mailings that periodically include notices or other informational or advertising materials, the municipality shall include notice of the changes with such utility bills or other mailings.

(c) The municipality shall publish the changes before the first hearing on such changes in a newspaper of general circulation in the municipality. The changes shall be published in a "display ad" covering not less than one-eighth of a full page.

If notice is provided pursuant to paragraph 5, subdivision (b) or (c) of this subsection, the municipality shall also send notice by first class mail to persons who register their names and addresses with the municipality as being interested in receiving such notice. The municipality may charge a fee not to exceed $5 per year for providing this service and may adopt procedures to implement this paragraph.
Notwithstanding the notice requirements in paragraph 4 of this subsection, the failure of any person or entity to receive notice does not constitute grounds for any court to invalidate the actions of a municipality for which the notice was given.

B. If the matter to be considered applies to territory in a high noise or accident potential zone as defined in section 28-8461, the notice prescribed in subsection A of this section shall include a general statement that the matter applies to property located in the high noise or accident potential zone.

C. After the hearing, the planning commission or hearing officer shall render a decision in the form of a written recommendation to the governing body. The recommendation shall include the reasons for the recommendation and be transmitted to the governing body in the form and manner prescribed by the governing body.

D. If the planning commission or hearing officer has held a public hearing, the governing body may adopt the recommendations of the planning commission or hearing officer without holding a second public hearing if there is no objection, request for public hearing or other protest. The governing body shall hold a public hearing if requested by the party aggrieved or any member of the public or of the governing body, or, in any case, if a public hearing has not been held by the planning commission or hearing officer. The governing body may consider the testimony of any party aggrieved when making its decision. In municipalities with territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461, the governing body shall hold a public hearing if, after notice is transmitted to the military airport pursuant to subsection A of this section and before the public hearing, the military airport provides comments or analysis concerning the compatibility of the proposed rezoning with the high noise or accident potential generated by military airport or ancillary military facility operations that may have an adverse impact on public health and safety, and the governing body shall consider and analyze the comments or analysis before making a final determination. Notice of the time and place of the hearing shall be given in the time and manner provided for giving notice of the hearing by the planning commission as specified in subsection A of this section. A municipality may give additional notice of the hearing in any other manner as the municipality deems necessary or desirable. For the purposes of this subsection, "party aggrieved" means any property owner within the notification area prescribed by subsection A, paragraph 3 of this section.

E. A municipality may enact an ordinance authorizing county zoning to continue in effect until municipal zoning is applied to land previously zoned by the county and annexed by the municipality, but not longer than six months after the annexation.

F. A municipality is not required to adopt a general plan before the adoption of a zoning ordinance.

G. If there is no planning commission or hearing officer, the governing body of the municipality shall perform the functions assigned to the planning commission or hearing officer.

H. If the owners of twenty percent or more of the property by area and number of lots, tracts and condominium units within the zoning area of the affected property, excluding government-owned property, file a protest in writing against a proposed amendment, the change shall not become effective except by the favorable vote of three-fourths of all members of the governing body of the municipality. If any members of the governing body are unable to vote on such a question because of a conflict of interest, then the required number of votes for passage of the question shall be three-fourths of the remaining membership of the governing body, if such required number of votes is not less than a majority of the full membership of the legally established governing body. For the purposes of this subsection, the vote shall be rounded to the nearest whole number. A protest filed pursuant to this subsection shall be signed by the property owners, excluding government-owned property, opposing the proposed amendment and filed in the office of the clerk of the municipality not later than 12:00 noon one business day before the date on which the governing body will vote on the proposed amendment or on an earlier time and date established by the governing body.

I. In applying an open space element or a growth element of a general plan, a parcel of land shall not be rezoned for open space, recreation, conservation or agriculture unless the owner of the land consents to the rezoning in writing.

J. Notwithstanding section 19-142, subsection B, a decision by the governing body involving rezoning of land that is not owned by the municipality and that changes the zoning classification of such land may not be enacted as an emergency measure and the change shall not be effective for at least thirty days after final approval of the change in classification by the governing body.

K. For the purposes of this section, "zoning area" means both of the following:

The area within one hundred fifty feet, including all rights-of-way, of the affected property subject to the proposed amendment or change.
The area of the proposed amendment or change.

§ 9-462.05 Enforcement

A. The legislative body of a municipality has authority to enforce any zoning ordinance enacted pursuant to this article in the same manner as other municipal ordinances are enforced.

B. If any building structure is erected, constructed, reconstructed, altered, repaired, converted or maintained or any building, structure or land is used in violation of the provisions of this article or of any ordinance adopted pursuant to the provisions of this article, the legislative body of the municipality may institute any appropriate action to:

Prevent such unlawful erection, construction, reconstruction, alteration, repair, conversion, maintenance or use.
Restrain, correct or abate the violation.
Prevent the occupancy of such building, structure or land.
Prevent any illegal act, conduct, business or use in or about such premises.

C. By ordinance, the legislative body shall establish the office of zoning administrator. The zoning administrator is charged with responsibility for enforcement of the zoning ordinance.

D. By ordinance, the legislative body shall establish all necessary and appropriate rules and procedures governing application for zoning amendment, review and approval of plans, issuance of any necessary permits or compliance certificates, inspection of buildings, structures and lands and any other actions which may be considered necessary or desirable for enforcement of the zoning ordinance.

§ 9-462.06 Board of adjustment

A. The legislative body, by ordinance, shall establish a board of adjustment, which shall consist of at least five but no more than seven members appointed by the legislative body in accordance with provisions of the ordinance, except that the ordinance may establish the legislative body as the board of adjustment. The legislative body may, by ordinance, delegate to a hearing officer the authority to hear and decide on matters within the jurisdiction of the board of adjustment as provided by this section, except that the right of appeal from the decision of a hearing officer to the board of adjustment shall be preserved.

B. The ordinance shall provide for public meetings of the board, for a chairperson with the power to administer oaths and take evidence, and that minutes of its proceedings showing the vote of each member and records of its examinations and other official actions be filed in the office of the board as a public record.

C. A board of adjustment shall hear and decide appeals from the decisions of the zoning administrator, shall exercise other powers as may be granted by the ordinance and adopt all rules and procedures necessary or convenient for the conduct of its business.

D. Appeals to the board of adjustment may be taken by persons aggrieved or by any officer, department, board or bureau of the municipality affected by a decision of the zoning administrator, within a reasonable time, by filing with the zoning administrator and with the board a notice of appeal specifying the grounds of the appeal. The zoning administrator shall immediately transmit all records pertaining to the action appealed from to the board.

E. An appeal to the board stays all proceedings in the matter appealed from, unless the zoning administrator certifies to the board that, in the zoning administrator's opinion by the facts stated in the certificate, a stay would cause imminent peril to life or property. On the certification proceedings shall not be stayed, except by restraining order granted by the board or by a court of record on application and notice to the zoning administrator. Proceedings shall not be stayed if the appeal requests relief that has previously been denied by the board except pursuant to a special action in superior court as provided in subsection K of this section.

F. The board shall fix a reasonable time for hearing the appeal, and shall give notice of hearing by both publication in a newspaper of general circulation in accordance with section 9-462.04 and posting the notice in conspicuous places close to the property affected.

G. A board of adjustment shall:

Hear and decide appeals in which it is alleged there is an error in an order, requirement or decision made by the zoning administrator in the enforcement of a zoning ordinance adopted pursuant to this article.
Hear and decide appeals for variances from the terms of the zoning ordinance only if, because of special circumstances applicable to the property, including its size, shape, topography, location, or surroundings, the strict application of the zoning ordinance will deprive the property of privileges enjoyed by other property of the same classification in the same zoning district. Any variance granted is subject to conditions as will assure that the adjustment authorized shall not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which the property is located.
Reverse or affirm, in whole or in part, or modify the order, requirement or decision of the zoning administrator appealed from, and make the order, requirement, decision or determination as necessary.

H. A board of adjustment may not:

Make any changes in the uses permitted in any zoning classification or zoning district, or make any changes in the terms of the zoning ordinance provided the restriction in this paragraph shall not affect the authority to grant variances pursuant to this article.
Grant a variance if the special circumstances applicable to the property are self-imposed by the property owner.

I. If the legislative body is established as the board of adjustment, it shall exercise all of the functions and duties of the board of adjustment in the same manner and to the same effect as provided in this section.

J. In a municipality with a population of more than one hundred thousand persons, the legislative body, by ordinance, may provide that a person aggrieved by a decision of the board or a taxpayer who owns or leases the adjacent property or a property within three hundred feet from the boundary of the immediately adjacent property, an officer or a department of the municipality affected by a decision of the board, at any time within fifteen days after the board has rendered its decision, may file an appeal with the clerk of the legislative body. The legislative body shall hear the appeal in accordance with procedures adopted by the legislative body and may affirm or reverse, in whole or in part, or modify the board's decision.

K. A person aggrieved by a decision of the legislative body or board or a taxpayer who owns or leases the adjacent property or a property within three hundred feet from the boundary of the immediately adjacent property, an officer or a department of the municipality affected by a decision of the legislative body or board, at any time within thirty days after the board, or the legislative body, if the board decision was appealed pursuant to subsection J of this section, has rendered its decision, may file a complaint for special action in the superior court to review the legislative body or board decision. Filing the complaint does not stay proceedings on the decision sought to be reviewed, but the court may, on application, grant a stay and on final hearing may affirm or reverse, in whole or in part, or modify the decision reviewed.

§ 9-462.07 Extraterritorial jurisdiction

A. In any county not having a county zoning ordinance applicable to the unincorporated territory, the legislative body of a municipality may exercise the zoning powers granted in this article both to territory within its corporate limits and to that which extends a distance of three contiguous miles in all directions of its corporate limits and is not located in a municipality. Any ordinance intended to have application beyond the corporate limits of the municipality shall expressly state the intention of such application. Such ordinance shall be adopted in accordance with the provisions set forth therein.

B. The extraterritorial jurisdiction of two or more municipalities whose boundaries are less than six miles apart terminates at a boundary line equidistant from the respective corporate limits of such municipalities, or at such line as is agreed to by the legislative bodies of the respective municipalities.

C. As a prerequisite to the exercise of extraterritorial jurisdiction the membership of the planning agency charged with the preparation or administration of proposed comprehensive zoning regulations for the area of extraterritorial jurisdiction shall be increased to include two additional members to represent the unincorporated area. Any additional member shall be a resident of the three mile area outside the corporate limits and be appointed by the legislative body of the county wherein the unincorporated area is situated. Any additional member shall have equal rights, privileges and duties with the other members of the planning agency in all matters pertaining to the plans and regulations of the unincorporated area in which they reside, both in preparation of the original plans and regulations and in consideration of any proposed amendments to such plans and regulations.

D. If a municipal governing body adopts zoning regulations for the area outside its corporate limits, it shall increase the membership of the board of adjustment by adding one or two additional members. Any such member shall be a resident of the area of extraterritorial jurisdiction outside the corporate limits and shall be appointed by the legislative body of the county wherein the unincorporated area is situated. Any such member shall have equal rights, privileges, and duties with other members of the board of zoning adjustment in all matters pertaining to the regulation of the unincorporated area in which they reside. The concurring vote of a majority of the members of the enlarged board is necessary to reverse any order, requirement, decision or determination of an administrative official charged with the enforcement of an ordinance.

E. Any municipal legislative body exercising the powers granted by this section may provide for the enforcement of its regulations for the area of extraterritorial jurisdiction in the same manner as the regulations for the area within the municipality are enforced.

§ 9-462.08 Hearing officer

A. The legislative body of any municipality may establish the position of hearing officer and delegate to a hearing officer the authority to conduct hearings required by section 9-462.04 and on other matters as the legislative body may provide by ordinance.

B. Hearing officers shall be appointed on the basis of training and experience which qualifies them to conduct hearings and make findings and conclusions on the matters heard.

§ 9-462.09 Assisted living homes; distance requirements; administrative procedure; notice; definition

A. If a municipality has a zoning ordinance that restricts the distance between assisted living homes, the municipality shall establish an administrative procedure in which a deviation from the separation requirement may be granted as a reasonable accommodation under the fair housing act (P.L. 90-281; 82 Stat. 81; 42 United States Code section 3604).

B. On registration as an assisted living home or when a land use application for an assisted living home is filed, the municipality shall provide written notice of the administrative procedure to request a reasonable accommodation as prescribed in subsection A of this section.

C. If a municipality has a zoning ordinance that restricts the distance between assisted living homes, the distance shall be measured on a linear foot basis from lot line to lot line.

D. For the purposes of this section, "assisted living home" has the same meaning prescribed in section 36-401.

§ 9-462.10 Commercial buildings; multifamily residential development; adaptive reuse; prohibition on rezoning or municipal review; objective standards; applicability; definitions

A. Within ninety days after the effective date of this amendment to this section, the governing body of a municipality with a population of one hundred fifty thousand or more persons shall establish objective standards to allow multifamily residential development or adaptive reuse of existing commercial, office or mixed use parcels within the municipality without requiring a conditional use permit, a planned unit development or rezoning application or any other application that would require a public hearing. The governing body of the municipality shall:

Allow for multifamily residential development or adaptive reuse of at least ten percent of the existing commercial, office or mixed use parcels. For the purposes of determining the minimum percentage of parcels eligible for multifamily residential development or adaptive reuse, the governing body of the municipality may analyze the commercial, office and mixed use parcels every ten years.
Not designate individual parcels that are eligible for multifamily residential development or adaptive reuse.
Not exclude commercial, office or mixed use parcels from multifamily residential development or adaptive reuse other than as allowed by subsections B and G of this section or if ten percent of the parcels have already been developed or adapted for reuse.
Not exclude commercial, office or mixed use parcels from multifamily residential development or adaptive reuse if the average sound level at the parcel is below sixty-five decibels.

B. A municipality may designate commercial or employment hubs and other essential commercial or employment use areas where existing commercial, office, employment or mixed use parcels are excluded from the provisions of this section. The designations made pursuant to this subsection may not exceed ten percent of the existing commercial, office, employment or mixed use parcels within the municipality. A municipality may modify the commercial or employment hubs that are excluded from the provisions of this section once every ten years.

C. For multifamily residential development or adaptive reuse, the objective standards established by a municipality shall require only the following:

A municipal site plan review and approval process requirement, including site plan review by any utility provider impacted by the proposed development.
Adequate public sewer and water service for the entire proposed development.
Compliance with all applicable building codes and fire codes.
That the existing buildings are economically or functionally obsolete.
That the existing buildings are located on a parcel or parcels that are at least one acre in size but not more than twenty acres in size.
A set-aside of ten percent of the total dwelling units for either moderate-income housing or low-income housing or any combination of the two for at least twenty years after the initial occupation of the proposed development. The developer may set aside more than ten percent at the developer's sole discretion.

D. The objective standards may not contain parking space requirements that exceed the parking requirements that apply to multifamily residential buildings or adaptive reuse buildings under the existing zoning code unless the proposed multifamily residential development or adaptive reuse also qualifies as a mixed use development.

E. A municipality shall not withhold a demolition permit if a multifamily residential development meets the requirements of this section. For a multifamily residential development, all of the following apply:

The demolition of all or a portion of the existing commercial, office or mixed use buildings shall be allowed.
Setback requirements may not exceed what is required in the existing zoning code for multifamily residential buildings, including mixed use buildings with the majority of floor area dedicated to residential uses.
Notwithstanding section 9-462.01, subsection C, the maximum height and density shall be equal to the highest allowable multifamily height and density for a multifamily zoning district or a zoning district that allows residential development, including commercial districts that allow for residential development, whichever height and density is greater in the municipality within one mile of the parcel to be redeveloped. If there is no multifamily zoning district in the municipality within one mile of the parcel to be redeveloped, the maximum height and density shall be equivalent to the next closest multifamily zoning district or a zoning district that allows residential development, including commercial zoning districts that allow for residential development whichever height and density is greater.
The allowable height may not exceed five stories and a municipality may limit the height to two stories in the areas of a multifamily residential development site directly adjacent to and within one hundred feet of single-family residential zones. The municipality shall allow for greater height in the remainder of the site.
Multifamily residential development that is constructed pursuant to this section does not qualify as being within one mile of the parcel being redeveloped or the next closest multifamily parcel.

F. A municipality shall not withhold a demolition permit if an adaptive reuse project meets the requirements of this section. For adaptive reuse, all of the following apply:

The demolition of a portion of the existing commercial, office or mixed use building or buildings shall be allowed.
The setback requirements for the proposed use shall apply. If the minimum setback requirement that applies to the existing commercial, office or mixed use building is less than the minimum setback requirement that applies to the multifamily use, the existing setback shall remain and the building shall be considered nonconforming for setback purposes unless easements, including public utility easements, are located within setback areas.
If the maximum allowable height that applies to the existing commercial, office or mixed use building exceeds the maximum allowable height for the proposed use, the existing height shall remain and the building shall be considered nonconforming for height purposes and the existing building may be expanded to the maximum allowable density for multifamily use. Any rooftop appurtenances shall be included within the height exemption.

G. This section does not apply to any of the following:

Land in an area that is designated as a district of historical significance pursuant to section 9-462.01, subsection A, paragraph 10.
Land in an area that is designated historic by a local government.
Land in an area that is designated as historic on the national register of historic places.
Land in the territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461.
Land in the territory in the vicinity of a federal aviation administration commercially licensed airport or a general aviation or public airport as defined in section 28-8486.
Land in a municipality that is located on tribal land.

H. For the purposes of this section:

"Adaptive reuse" means converting an existing building from the use for which it was constructed to multifamily use by maintaining some or all of the elements of the building.
"Building code" has the same meaning prescribed in section 9-1301.
"Economically or functionally obsolete" means the commercial, office or mixed use parcel is in a state of disrepair or has at least a fifty percent vacancy in the total leasable square footage.
"Low-income housing" means housing for a person or persons whose household income does not exceed eighty percent of the area median income.
"Moderate-income housing" means housing for a person or persons whose household income does not exceed one hundred twenty percent of the area median income.
"Multifamily residential development" means a building or buildings that are designed and used for residential purposes and that contain more than one apartment or dwelling unit for sale or for rent but that are not adaptive reuse.
"Nonconforming" means structures that have received occupancy permits under the regulations in place at the time of construction.
"Rooftop appurtenances":

(a) Means rooftop structures that principally house air conditioning equipment, solar panels, utilities, elevators, other energy production facilities and other nonhabitable structures.

(b) Includes open space features, swimming pools, space for use by residents and landscaping.

§ 9-462.11 Residential zoning; amendment; applications; deadline; extensions; applicability

A. On or before January 1, 2025, a municipality shall adopt an amendment to the municipality's zoning ordinance that requires the municipality to determine whether a zoning application is administratively complete within thirty days after receiving the application. If the municipality determines that the application is not administratively complete, the municipality shall follow the procedures prescribed in section 9-835, subsection E until the application is administratively complete. The municipality shall determine whether a resubmitted application is administratively complete within fifteen days after receiving the resubmitted application. After determining that the application is administratively complete, the municipality shall approve or deny the application within one hundred eighty days.

B. Notwithstanding subsection A of this section, the municipality may extend the time frame to approve or deny the request beyond one hundred eighty days for either of the following reasons:

For extenuating circumstances, the municipality may grant a onetime extension of not more than thirty days.
If an applicant requests an extension, the municipality may grant extensions of thirty days for each extension granted.

C. This section does not apply to land that is designated as a district of historical significance pursuant to section 9-462.01, subsection A, paragraph 10 or an area that is designated as historic on the national register of historic places or planned area developments.

§ 9-462.12 Backyard fowl regulation; prohibition; exceptions; state preemption; definition

A. A municipality may not adopt any law, ordinance or other regulation that prohibits a resident of a single-family detached residence on a lot that is one-half acre or less in size from keeping up to six fowl in the backyard of the property. A municipality may:

Prohibit a resident from keeping male fowl, including roosters.
Require fowl to be kept in an enclosure located in the rear or side yard of the property at least twenty feet from a neighboring property and restrict the size of the enclosure to a maximum of two hundred square feet with a maximum height of eight feet.
Require the enclosure to be maintained and manure picked up and disposed of or composted at least twice weekly.
Require that composted manure be kept in a way that prevents migration of insects.
Require water sources with adequate overflow drainage.
Require that feed be stored in insect-proof and rodent-proof containers.
Prohibit fowl from running at large.

B. Notwithstanding subsection A of this section, a municipality shall enact an ordinance that requires an enclosure located in a residential community on a lot less than one acre in size to be shorter than the fence line of the property.

C. An ordinance that is enacted after September 14, 2024 does not apply to an enclosure that was constructed on or before September 14, 2024.

D. The property rights of property owners in this state outlined in this section are of statewide concern. This section preempts all local laws, ordinances and charter provisions to the contrary.

E. For the purposes of this section, "fowl" means a cock or hen of

the domestic chicken.

§ 9-462.13 Zoning; development; middle housing; applicability; definitions

A. On or before January 1, 2026, a municipality with a population of seventy-five thousand persons or more must authorize by ordinance and incorporate into its development regulations, zoning regulations and other official controls the development of duplexes, triplexes, fourplexes and townhomes as a permitted use on both of the following:

All lots zoned for single-family residential use within one mile of the municipality's central business district.
At least twenty percent of any new development of more than ten contiguous acres.

B. The municipality may not do any of the following:

Discourage the development of middle housing through requirements or actions that individually or cumulatively make impracticable the permitting, siting, or construction of middle housing.
Restrict middle housing types to less than two floors.
Restrict middle housing types to a floor area ratio of less than fifty percent.
Set restrictions, permitting or review processes for middle housing that are more restrictive than those for single-family dwellings within the same zone.
Require owner occupancy of any structures on the lot.
Require any structures to comply with a commercial building code or to contain a fire sprinkler.
Require more than one off-street parking space per unit.

C. This section does not prohibit the governing body of a municipality from allowing either of the following:

Single-family dwellings in areas zoned for single-family dwellings.
Additional types of middle housing not required under this section.

D. This section does not apply to any of the following:

Areas that are not incorporated.
Areas that lack sufficient urban services.
Areas that are not served by water and sewer services.
Areas that are not zoned for residential use.
Areas that are not incorporated and are zoned under an interim zoning designation that maintains the area's potential for planned urban development.
Areas covered under title 48, chapter 6, article 4.
Any land within the territory in the vicinity of a public airport as defined in section 28-8486 or to the extent this section would interfere with the public airport's ability to comply with the laws, regulations and requirements of the United States related to applying for, receiving or spending federal monies.
Any land within the territory in the vicinity of a military airport as defined in section 28-8461.

E. If a municipality does not adopt the regulations required by this section on or before January 1, 2026, middle housing shall be allowed on all lots in the municipality zoned for single-family residential use without any limitations.

F. This section does not change or otherwise impair the terms of any development agreement that exists on September 14, 2024.

G. Notwithstanding subsection A of this section, a utility provider impacted by a development being developed pursuant to this section shall have the opportunity to review and approve the site plan for the development.

H. For the purpose of this section:

"Building code":

(a) Means a construction code adopted by a municipality.

(b) Includes a model building code, commercial code, plumbing and mechanical code, electric code, energy conservation code, fire code, property maintenance code, neighborhood preservation code, antiblight code or other similar code.

"Central business district" means an area or series of areas designated by a municipality that are primarily nonindustrial and that attract community activity, including the entire geographic area that the municipality has officially designated as its downtown or equivalent on September 14, 2024.
"Duplex" means two dwelling units on the same parcel or lot in attached, detached or semidetached arrangements that are designed for residential occupancy by not more than two households living independently from each other.
"Floor area ratio" means the ratio of allowed square footage in a middle housing project to the square footage of the parcel on which it is built.
"Fourplex" means four dwelling units on the same parcel or lot in attached, detached or semidetached arrangements that are designed for residential occupancy by not more than four households living independently from each other.
"Household" means either:

(a) A single person living or residing in a dwelling or place of residence.

(b) Two or more persons living together or residing in the same dwelling or place of residence.

"Middle housing":

(a) Means buildings that are compatible in scale, form and character with single-family houses and that contain two or more attached, detached, stacked or clustered homes.

(b) Includes duplexes, triplexes, fourplexes and townhouses.

"Permitted use" means the ability for a development to be approved without requiring a public hearing, variance, conditional use permit, special permit or special exception, other than a discretionary zoning action to determination that a site plan conforms with applicable zoning regulations.
"Townhouses" means dwelling units that are constructed in a row of two or more attached units in which each dwelling unit shares at least one common wall with an adjacent unit and that are accessed by separate outdoor entrances.
"Triplex" means three dwelling units on the same parcel or lot in attached, detached or semidetached arrangements that are designed for residential occupancy by not more than three households living independently from each other.

§ 9-462.14 Sober living homes; distance and operation requirements; deviation procedure; prohibition; definition

A. If a municipality has a zoning ordinance that restricts the distance between sober living homes or that enacts building or fire code requirements for the operation of sober living homes, the municipality shall establish a procedure by which a deviation from the requirement may be granted as a reasonable accommodation under the fair housing act (P.L. 90-284; 82 Stat. 81; 42 United States Code section 3604).

B. A municipality may not reclassify a single-family home under a local building or fire code solely because the single-family home is the subject of a license application for a sober living home.

C. For the purposes of this section, "sober living home" has the same meaning prescribed in section 36-2061.

Article 6.2 Municipal Subdivision Regulations

§ 9-463 Definitions

In this article, unless the context otherwise requires:

"Design" means street alignment, grades and widths, alignment and widths of easements and rights-of-way for drainage and sanitary sewers and the arrangement and orientation of lots.
"Improvement" means required installations, pursuant to this article and subdivision regulations, including grading, sewer and water utilities, streets, easements, traffic control devices as a condition to the approval and acceptance of the final plat thereof.
"Land splits" as used in this article means the division of improved or unimproved land whose area is two and one-half acres or less into two or three tracts or parcels of land for the purpose of sale or lease.
"Municipal" or "municipality" means an incorporated city or town.
"Planning agency" means the official body designated by local ordinance to carry out the purposes of this article and may be a planning department, a planning commission, the legislative body itself, or any combination thereof.
"Plat" means a map of a subdivision:

(a) "Preliminary plat" means a preliminary map, including supporting data, indicating a proposed subdivision design prepared in accordance with the provisions of this article and those of any local applicable ordinance.

(b) "Final plat" means a map of all or part of a subdivision essentially conforming to an approved preliminary plat, prepared in accordance with the provision of this article, those of any local applicable ordinance and other state statute.

(c) "Recorded plat" means a final plat bearing all of the certificates of approval required by this article, any local applicable ordinance and other state statute.

"Right-of-way" means any public or private right-of-way and includes any area required for public use pursuant to any general or specific plan as provided for in article 6 of this chapter.
"Street" means any existing or proposed street, avenue, boulevard, road, lane, parkway, place, bridge, viaduct or easement for public vehicular access or a street shown in a plat heretofore approved pursuant to law or a street in a plat duly filed and recorded in the county recorder's office. A street includes all land within the street right-of-way whether improved or unimproved, and includes such improvements as pavement, shoulders, curbs, gutters, sidewalks, parking space, bridges and viaducts.
"Subdivider" means a person, firm, corporation, partnership, association, syndicate, trust or other legal entity that files application and initiates proceedings for the subdivision of land in accordance with the provisions of this article, any local applicable ordinance and other state statute, except that an individual serving as agent for such legal entity is not a subdivider.
"Subdivision" means any land or portion thereof subject to the provisions of this article as provided in section 9-463.02.
"Subdivision regulations" means a municipal ordinance regulating the design and improvement of subdivisions enacted under the provisions of this article or any prior statute regulating the design and improvement of subdivisions.

§ 9-463.01 Authority

A. Pursuant to this article, the legislative body of every municipality shall regulate the subdivision of all lands within its corporate limits.

B. The legislative body of a municipality shall exercise the authority granted in subsection A of this section by ordinance prescribing:

Procedures to be followed in the preparation, submission, review and approval or rejection of all final plats.
Standards governing the design of subdivision plats.
Minimum requirements and standards for the installation of subdivision streets, sewer and water utilities and improvements as a condition of final plat approval.

C. By ordinance, the legislative body of any municipality shall:

Require the preparation, submission and approval of a preliminary plat as a condition precedent to submission of a final plat.
Establish the procedures to be followed in the preparation, submission, review and approval of preliminary plats.
Make requirements as to the form and content of preliminary plats.
Either determine that certain lands may not be subdivided, by reason of adverse topography, periodic inundation, adverse soils, subsidence of the earth's surface, high water table, lack of water or other natural or man-made hazard to life or property, or control the lot size, establish special grading and drainage requirements and impose other regulations deemed reasonable and necessary for the public health, safety or general welfare on any lands to be subdivided affected by such characteristics.
Require payment of a proper and reasonable fee by the subdivider based on the number of lots or parcels on the surface of the land to defray municipal costs of plat review and site inspection.
Require the dedication of public streets, sewer and water utility easements or rights-of-way, within the proposed subdivision.
Require the preparation and submission of acceptable engineering plans and specifications for the installation of required street, sewer, electric and water utilities, drainage, flood control, adequacy of water and improvements as a condition precedent to recordation of an approved final plat.
Require the posting of performance bonds, assurances or such other security as may be appropriate and necessary to assure the installation of required street, sewer, electric and water utilities, drainage, flood control and improvements meeting established minimum standards of design and construction. The municipality may allow an applicant to request a hold on the issuance of a certificate of occupancy as a security required by this paragraph to assure the installation of the required streets, sewer, electric and water utilities, drainage, flood control and improvements meeting established standards of design and construction.

D. The legislative body of any municipality may require by ordinance that land areas within a subdivision be reserved for parks, recreational facilities, school sites and fire stations subject to the following conditions:

The requirement may only be made on preliminary plats filed at least thirty days after the adoption of a general or specific plan affecting the land area to be reserved.
The required reservations are in accordance with definite principles and standards adopted by the legislative body.
The land area reserved shall be of such a size and shape as to allow the remainder of the land area of the subdivision within which the reservation is located to develop in an orderly and efficient manner.
The land area reserved shall be in such multiples of streets and parcels as to allow an efficient division of the reserved area in the event that it is not acquired within the prescribed period.
If groundwater savings credits have been pledged to a certificate of assured water supply for a subdivision, a municipality may not condition final approval of the subdivision plat on inclusion of a school site within the subdivision plat unless all of the following apply:

(a) The municipality pledges to the certificate of assured water supply a volume of water that is equal to the probable water use on the school site as determined by the director of the department of water resources.

(b) The water pledged by a municipality pursuant to this paragraph meets all requirements for inclusion as an assured water supply as prescribed in title 45, chapter 2.

(c) The municipality does not require an applicant for final plat approval to procure or provide monies to procure water that is required to be pledged by a municipality pursuant to this paragraph.

E. The public agency for whose benefit an area has been reserved shall have a period of one year after recording the final subdivision plat to enter into an agreement to acquire such reserved land area. The purchase price shall be the fair market value of the reserved land area at the time of the filing of the preliminary subdivision plat plus the taxes against such reserved area from the date of the reservation and any other costs incurred by the subdivider in the maintenance of such reserved area, including the interest cost incurred on any loan covering such reserved area.

F. If the public agency for whose benefit an area has been reserved does not exercise the reservation agreement set forth in subsection E of this section within such one-year period or such extended period as may be mutually agreed on by such public agency and the subdivider, the reservation of such area shall terminate.

G. The legislative body of every municipality shall comply with this article and applicable state statutes pertaining to the hearing, approval or rejection, and recordation of:

Final subdivision plats.
Plats filed for the purpose of reverting to acreage of land previously subdivided.
Plats filed for the purpose of vacating streets or easements previously dedicated to the public.
Plats filed for the purpose of vacating or redescribing lot or parcel boundaries previously recorded.

H. Approval of every preliminary and final plat by a legislative body is conditioned on compliance by the subdivider with:

Rules as may be established by the department of transportation relating to provisions for the safety of entrance on and departure from abutting state primary highways.
Rules as may be established by a county flood control district relating to the construction or prevention of construction of streets in land established as being subject to periodic inundation.
Rules as may be established by the department of health services or a county health department relating to the provision of domestic water supply and sanitary sewage disposal.

I. If the subdivision is composed of subdivided lands, as defined in section 32-2101, and is within an active management area, as defined in section 45-402, the final plat shall not be approved unless it is accompanied by a certificate of assured water supply issued by the director of water resources, or unless the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply by the director of water resources pursuant to section 45-576 or is exempt from the requirement pursuant to section 45-576. The legislative body of the municipality shall note on the face of the final plat that a certificate of assured water supply has been submitted with the plat or that the subdivider has obtained a written commitment of water service for the proposed subdivision from a city, town or private water company designated as having an assured water supply, pursuant to section 45-576, or is exempt from the requirement pursuant to section 45-576.

J. Except as provided in subsections K and P of this section, if the subdivision is composed of subdivided lands as defined in section 32-2101 outside of an active management area and the director of water resources has given written notice to the municipality pursuant to section 45-108, subsection H, the final plat shall not be approved unless one of the following applies:

The director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 and the subdivider has included the report with the plat.
The subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108.

K. The legislative body of a municipality that has received written notice from the director of water resources pursuant to section 45-108, subsection H or that has adopted an ordinance pursuant to subsection O of this section may provide by ordinance an exemption from the requirement in subsection J or O of this section for a subdivision that the director of water resources has determined will have an inadequate water supply because the water supply will be transported to the subdivision by motor vehicle or train if all of the following apply:

The legislative body determines that there is no feasible alternative water supply for the subdivision and that the transportation of water to the subdivision will not constitute a significant risk to the health and safety of the residents of the subdivision.
If the water to be transported to the subdivision will be withdrawn or diverted in the service area of a municipal provider as defined in section 45-561, the municipal provider has consented to the withdrawal or diversion.
If the water to be transported is groundwater, the transportation complies with the provisions governing the transportation of groundwater in title 45, chapter 2, article 8.
The transportation of water to the subdivision meets any additional conditions imposed by the legislative body.

L. A municipality that adopts the exemption authorized by subsection K of this section shall give written notice of the adoption of the exemption, including a certified copy of the ordinance containing the exemption, to the director of water resources, the director of environmental quality and the state real estate commissioner. If the municipality later rescinds the exemption, the municipality shall give written notice of the rescission to the director of water resources, the director of environmental quality and the state real estate commissioner. A municipality that rescinds an exemption adopted pursuant to subsection K of this section shall not readopt the exemption for at least five years after the rescission becomes effective.

M. If the legislative body of a municipality approves a subdivision plat pursuant to subsection J, paragraph 1 or 2 or subsection O of this section, the legislative body shall note on the face of the plat that the director of water resources has reported that the subdivision has an adequate water supply or that the subdivider has obtained a commitment of water service for the proposed subdivision from a city, town or private water company designated as having an adequate water supply pursuant to section 45-108.

N. If the legislative body of a municipality approves a subdivision plat pursuant to an exemption authorized by subsection K of this section or granted by the director of water resources pursuant to section 45-108.02 or 45-108.03:

The legislative body shall give written notice of the approval to the director of water resources and the director of environmental quality.
The legislative body shall include on the face of the plat a statement that the director of water resources has determined that the water supply for the subdivision is inadequate and a statement describing the exemption under which the plat was approved, including a statement that the legislative body or the director of water resources, whichever applies, has determined that the specific conditions of the exemption were met. If the director subsequently informs the legislative body that the subdivision is being served by a water provider that has been designated by the director as having an adequate water supply pursuant to section 45-108, the legislative body shall record in the county recorder's office a statement disclosing that fact.

O. If a municipality has not been given written notice by the director of water resources pursuant to section 45-108, subsection H, the legislative body of the municipality, to protect the public health and safety, may provide by ordinance that, except as provided in subsections K and P of this section, the final plat of a subdivision located in the municipality and outside of an active management area will not be approved by the legislative body unless the director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 or the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108. Before holding a public hearing to consider whether to enact an ordinance pursuant to this subsection, a municipality shall provide written notice of the hearing to the board of supervisors of the county in which the municipality is located. A municipality that enacts an ordinance pursuant to this subsection shall give written notice of the enactment of the ordinance, including a certified copy of the ordinance, to the director of water resources, the director of environmental quality, the state real estate commissioner and the board of supervisors of the county in which the municipality is located. If a municipality enacts an ordinance pursuant to this subsection, water providers may be eligible to receive monies in a water supply development fund, as otherwise provided by law.

P. Subsections J and O of this section do not apply to:

A proposed subdivision that the director of water resources has determined will have an inadequate water supply pursuant to section 45-108 if the director grants an exemption for the subdivision pursuant to section 45-108.02 and the exemption has not expired or if the director grants an exemption pursuant to section 45-108.03.
A proposed subdivision that received final plat approval from the municipality before the requirement for an adequate water supply became effective in the municipality if the plat has not been materially changed since it received the final plat approval. If changes were made to the plat after the plat received the final plat approval, the director of water resources shall determine whether the changes are material pursuant to the rules adopted by the director to implement section 45-108. If the municipality approves a plat pursuant to this paragraph and the director of water resources has determined that there is an inadequate water supply for the subdivision pursuant to section 45-108, the municipality shall note this on the face of the plat.

Q. If the subdivision is composed of subdivided lands as defined in section 32-2101 outside of an active management area and the municipality has not received written notice pursuant to section 45-108, subsection H and has not adopted an ordinance pursuant to subsection O of this section:

If the director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 or if the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108, the municipality shall note this on the face of the plat if the plat is approved.
If the director of water resources has determined that there is an inadequate water supply for the subdivision pursuant to section 45-108, the municipality shall note this on the face of the plat if the plat is approved.

R. Every municipality is responsible for the recordation of all final plats approved by the legislative body and shall receive from the subdivider and transmit to the county recorder the recordation fee established by the county recorder.

S. Pursuant to provisions of applicable state statutes, the legislative body of any municipality may itself prepare or have prepared a plat for the subdivision of land under municipal ownership.

T. The legislative bodies of cities and towns may regulate by ordinance land splits within their corporate limits. Authority granted under this section refers to the determination of division lines, area and shape of the tracts or parcels and does not include authority to regulate the terms or condition of the sale or lease nor does it include the authority to regulate the sale or lease of tracts or parcels that are not the result of land splits as defined in section 9-463.

U. For any subdivision that consists of ten or fewer lots, tracts or parcels, each of which is of a size as prescribed by the legislative body, the legislative body of each municipality may expedite the processing of or waive the requirement to prepare, submit and receive approval of a preliminary plat as a condition precedent to submitting a final plat and may waive or reduce infrastructure standards or requirements proportional to the impact of the subdivision. Requirements for dust-controlled access and drainage improvements shall not be waived.

§ 9-463.02 Subdivision defined; applicability

A. "Subdivision" means improved or unimproved land or lands divided for the purpose of financing, sale or lease, whether immediate or future, into four or more lots, tracts or parcels of land, or, if a new street is involved, any such property which is divided into two or more lots, tracts or parcels of land, or, any such property, the boundaries of which have been fixed by a recorded plat, which is divided into more than two parts. "Subdivision" also includes any condominium, cooperative, community apartment, townhouse or similar project containing four or more parcels, in which an undivided interest in the land is coupled with the right of exclusive occupancy of any unit located thereon, but plats of such projects need not show the buildings or the manner in which the buildings or airspace above the property shown on the plat are to be divided.

B. The legislative body of a municipality shall not refuse approval of a final plat of a project included in subsection A under provisions of an adopted subdivision regulation because of location of buildings on the property shown on the plat not in violation of such subdivision regulations or on account of the manner in which airspace is to be divided in conveying the condominium. Fees and lot design requirements shall be computed and imposed with respect to such plats on the basis of parcels or lots on the surface of the land shown thereon as included in the project. This subsection does not limit the power of such legislative body to regulate the location of buildings in such a project by or pursuant to a zoning ordinance.

C. "Subdivision" does not include the following:

The sale or exchange of parcels of land to or between adjoining property owners if such sale or exchange does not create additional lots.
The partitioning of land in accordance with other statutes regulating the partitioning of land held in common ownership.
The leasing of apartments, offices, stores or similar space within a building or trailer park, nor to mineral, oil or gas leases.

§ 9-463.03 Violations

It is unlawful for any person to offer to sell or lease, to contract to sell or lease or to sell or lease any subdivision or part thereof until a final plat thereof, in full compliance with provisions of this article and of any subdivision regulations which have been duly recorded in the office of recorder of the county in which the subdivision or any portion thereof is located, is recorded in the office of the recorder, except that this shall not apply to any parcel or parcels of a subdivision offered for sale or lease, contracted for sale or lease, or sold or leased in compliance with any law or subdivision regulation regulating the subdivision plat design and improvement of subdivisions in effect at the time the subdivision was established. The county recorder shall not record a plat located in a municipality having subdivision regulations enacted under this article unless the plat has been approved by the legislative body of the municipality.

§ 9-463.04 Extraterritorial jurisdiction

A. In any county not having county subdivision regulations applicable to the unincorporated territory, the legislative body of any municipality may exercise the subdivision regulation powers granted in this article both to territory within its corporate limits and to that which extends a distance of three contiguous miles in all directions of its corporate limits and not located in a municipality. Any ordinance intended to have application beyond the corporate limits of the municipality shall expressly state the intention of such application. Such ordinance shall be adopted in accordance with the provisions set forth therein.

C. As a prerequisite to the exercise of extraterritorial jurisdiction, the membership of the planning agency charged with the preparation or administration of proposed subdivision regulations for the area of extraterritorial jurisdiction shall be increased to include two additional members to represent the unincorporated area. Any additional member shall be a resident of the three mile area outside the corporate limits and be appointed by the legislative body of the county in which the unincorporated area is situated. Any such member shall have equal rights, privileges and duties with the other members of the planning agency in all matters pertaining to the plans and regulations of the unincorporated area in which they reside, both in preparation of the original plans and regulations and in consideration of any proposed amendments to such plans and regulations.

§ 9-463.05 Development fees; imposition by cities and towns; infrastructure improvements plan; annual report; advisory committee; limitation on actions; definitions

A. A municipality may assess development fees to offset costs to the municipality associated with providing necessary public services to a development, including the costs of infrastructure, improvements, real property, engineering and architectural services, financing and professional services required for the preparation or revision of a development fee pursuant to this section, including the relevant portion of the infrastructure improvements plan.

B. Development fees assessed by a municipality under this section are subject to the following requirements:

Development fees shall result in a beneficial use to the development.
The municipality shall calculate the development fee based on the infrastructure improvements plan adopted pursuant to this section.
The development fee shall not exceed a proportionate share of the cost of necessary public services, based on service units, needed to provide necessary public services to the development.
Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the service area.
Development fees may not be used for any of the following:

(a) Construction, acquisition or expansion of public facilities or assets other than necessary public services or facility expansions identified in the infrastructure improvements plan.

(b) Repair, operation or maintenance of existing or new necessary public services or facility expansions.

(c) Upgrading, updating, expanding, correcting or replacing existing necessary public services to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards.

(d) Upgrading, updating, expanding, correcting or replacing existing necessary public services to provide a higher level of service to existing development.

(e) Administrative, maintenance or operating costs of the municipality.

Any development for which a development fee has been paid is entitled to the use and benefit of the services for which the fee was imposed and is entitled to receive immediate service from any existing facility with available capacity to serve the new service units if the available capacity has not been reserved or pledged in connection with the construction or financing of the facility.
Development fees may be collected if any of the following occurs:

(a) The collection is made to pay for a necessary public service or facility expansion that is identified in the infrastructure improvements plan and the municipality plans to complete construction and to have the service available within the time period established in the infrastructure improvement plan, but in no event longer than the time period provided in subsection H, paragraph 3 of this section.

(b) The municipality reserves in the infrastructure improvements plan adopted pursuant to this section or otherwise agrees to reserve capacity to serve future development.

(c) The municipality requires or agrees to allow the owner of a development to construct or finance the necessary public service or facility expansion and any of the following apply:

(i) The costs incurred or money advanced are credited against or reimbursed from the development fees otherwise due from a development.

(ii) The municipality reimburses the owner for those costs from the development fees paid from all developments that will use those necessary public services or facility expansions.

(iii) For those costs incurred the municipality allows the owner to assign the credits or reimbursement rights from the development fees otherwise due from a development to other developments for the same category of necessary public services in the same service area.

Projected interest charges and other finance costs may be included in determining the amount of development fees only if the monies are used for the payment of principal and interest on the portion of the bonds, notes or other obligations issued to finance construction of necessary public services or facility expansions identified in the infrastructure improvements plan.
Monies received from development fees assessed pursuant to this section shall be placed in a separate fund and accounted for separately and may only be used for the purposes authorized by this section. Monies received from a development fee identified in an infrastructure improvements plan adopted or updated pursuant to subsection D of this section shall be used to provide the same category of necessary public services or facility expansions for which the development fee was assessed and for the benefit of the same service area, as defined in the infrastructure improvements plan, in which the development fee was assessed. Interest earned on monies in the separate fund shall be credited to the fund.
The schedule for payment of fees shall be provided by the municipality. Based on the cost identified in the infrastructure improvements plan, the municipality shall provide a credit toward the payment of a development fee for the required or agreed to dedication of public sites, improvements and other necessary public services or facility expansions included in the infrastructure improvements plan and for which a development fee is assessed, to the extent the public sites, improvements and necessary public services or facility expansions are provided by the developer. The developer of residential dwelling units shall be required to pay development fees when construction permits for the dwelling units are issued, or at a later time if specified in a development agreement pursuant to section 9-500.05. If a development agreement provides for fees to be paid at a time later than the issuance of construction permits, the deferred fees shall be paid no later than fifteen days after the issuance of a certificate of occupancy. The development agreement shall provide for the value of any deferred fees to be supported by appropriate security, including a surety bond, letter of credit or cash bond.
If a municipality requires as a condition of development approval the construction or improvement of, contributions to or dedication of any facilities that were not included in a previously adopted infrastructure improvements plan, the municipality shall cause the infrastructure improvements plan to be amended to include the facilities and shall provide a credit toward the payment of a development fee for the construction, improvement, contribution or dedication of the facilities to the extent that the facilities will substitute for or otherwise reduce the need for other similar facilities in the infrastructure improvements plan for which development fees were assessed.
The municipality shall forecast the contribution to be made in the future in cash or by taxes, fees, assessments or other sources of revenue derived from the property owner towards the capital costs of the necessary public service covered by the development fee and shall include these contributions in determining the extent of the burden imposed by the development. Beginning August 1, 2014, for purposes of calculating the required offset to development fees pursuant to this subsection, if a municipality imposes a construction contracting or similar excise tax rate in excess of the percentage amount of the transaction privilege tax rate imposed on the majority of other transaction privilege tax classifications, the entire excess portion of the construction contracting or similar excise tax shall be treated as a contribution to the capital costs of necessary public services provided to development for which development fees are assessed, unless the excess portion was already taken into account for such purpose pursuant to this subsection.
If development fees are assessed by a municipality, the fees shall be assessed against commercial, residential and industrial development, except that the municipality may distinguish between different categories of residential, commercial and industrial development in assessing the costs to the municipality of providing necessary public services to new development and in determining the amount of the development fee applicable to the category of development. If a municipality agrees to waive any of the development fees assessed on a development, the municipality shall reimburse the appropriate development fee accounts for the amount that was waived. The municipality shall provide notice of any such waiver to the advisory committee established pursuant to subsection G of this section within thirty days.
In determining and assessing a development fee applying to land in a community facilities district established under title 48, chapter 4, article 6, the municipality shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and shall not assess a portion of the development fee based on the infrastructure or costs.

C. A municipality shall give at least thirty days' advance notice of intention to assess a development fee and shall release to the public and post on its website or the website of an association of cities and towns if a municipality does not have a website a written report of the land use assumptions and infrastructure improvements plan adopted pursuant to subsection D of this section. The municipality shall conduct a public hearing on the proposed development fee at any time after the expiration of the thirty day notice of intention to assess a development fee and at least thirty days before the scheduled date of adoption of the fee by the governing body. Within sixty days after the date of the public hearing on the proposed development fee, a municipality shall approve or disapprove the imposition of the development fee. A municipality shall not adopt an ordinance, order or resolution approving a development fee as an emergency measure. A development fee assessed pursuant to this section shall not be effective until seventy-five days after its formal adoption by the governing body of the municipality. Nothing in this subsection shall affect any development fee adopted before July 24, 1982.

D. Before the adoption or amendment of a development fee, the governing body of the municipality shall adopt or update the land use assumptions and infrastructure improvements plan for the designated service area. The municipality shall conduct a public hearing on the land use assumptions and infrastructure improvements plan at least thirty days before the adoption or update of the plan. The municipality shall release the plan to the public, post the plan on its website or the website of an association of cities and towns if the municipality does not have a website, including in the posting its land use assumptions, the time period of the projections, a description of the necessary public services included in the infrastructure improvements plan and a map of the service area to which the land use assumptions apply, make available to the public the documents used to prepare the assumptions and plan and provide public notice at least sixty days before the public hearing, subject to the following:

The land use assumptions and infrastructure improvements plan shall be approved or disapproved within sixty days after the public hearing on the land use assumptions and infrastructure improvements plan and at least thirty days before the public hearing on the report required by subsection C of this section. A municipality shall not adopt an ordinance, order or resolution approving the land use assumptions or infrastructure improvements plan as an emergency measure.
An infrastructure improvements plan shall be developed by qualified professionals using generally accepted engineering and planning practices pursuant to subsection E of this section.
A municipality shall update the land use assumptions and infrastructure improvements plan at least every five years. The initial five year period begins on the day the infrastructure improvements plan is adopted. The municipality shall review and evaluate its current land use assumptions and shall cause an update of the infrastructure improvements plan to be prepared pursuant to this section.
Within sixty days after completion of the updated land use assumptions and infrastructure improvements plan, the municipality shall schedule and provide notice of a public hearing to discuss and review the update and shall determine whether to amend the assumptions and plan.
A municipality shall hold a public hearing to discuss the proposed amendments to the land use assumptions, the infrastructure improvements plan or the development fee. The land use assumptions and the infrastructure improvements plan, including the amount of any proposed changes to the development fee per service unit, shall be made available to the public on or before the date of the first publication of the notice of the hearing on the amendments.
The notice and hearing procedures prescribed in paragraph 1 of this subsection apply to a hearing on the amendment of land use assumptions, an infrastructure improvements plan or a development fee. Within sixty days after the date of the public hearing on the amendments, a municipality shall approve or disapprove the amendments to the land use assumptions, infrastructure improvements plan or development fee. A municipality shall not adopt an ordinance, order or resolution approving the amended land use assumptions, infrastructure improvements plan or development fee as an emergency measure.
The advisory committee established under subsection G of this section shall file its written comments on any proposed or updated land use assumptions, infrastructure improvements plan and development fees before the fifth business day before the date of the public hearing on the proposed or updated assumptions, plan and fees.
If, at the time an update as prescribed in paragraph 3 of this subsection is required, the municipality determines that no changes to the land use assumptions, infrastructure improvements plan or development fees are needed, the municipality may as an alternative to the updating requirements of this subsection publish notice of its determination on its website and include the following:

(a) A statement that the municipality has determined that no change to the land use assumptions, infrastructure improvements plan or development fee is necessary.

(b) A description and map of the service area in which an update has been determined to be unnecessary.

(c) A statement that by a specified date, which shall be at least sixty days after the date of publication of the first notice, a person may make a written request to the municipality requesting that the land use assumptions, infrastructure improvements plan or development fee be updated.

(d) A statement identifying the person or entity to whom the written request for an update should be sent.

If, by the date specified pursuant to paragraph 8 of this subsection, a person requests in writing that the land use assumptions, infrastructure improvements plan or development fee be updated, the municipality shall cause, accept or reject an update of the assumptions and plan to be prepared pursuant to this subsection.
Notwithstanding the notice and hearing requirements for adoption of an infrastructure improvements plan, a municipality may amend an infrastructure improvements plan adopted pursuant to this section without a public hearing if the amendment addresses only elements of necessary public services in the existing infrastructure improvements plan and the changes to the plan will not, individually or cumulatively with other amendments adopted pursuant to this subsection, increase the level of service in the service area or cause a development fee increase of greater than five per cent when a new or modified development fee is assessed pursuant to this section. The municipality shall provide notice of any such amendment at least thirty days before adoption, shall post the amendment on its website or on the website of an association of cities and towns if the municipality does not have a website and shall provide notice to the advisory committee established pursuant to subsection G of this section that the amendment complies with this subsection.

E. For each necessary public service that is the subject of a development fee, the infrastructure improvements plan shall include:

A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.
An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable.
A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.
A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial.
The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.
The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years.
A forecast of revenues generated by new service units other than development fees, which shall include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions, and a plan to include these contributions in determining the extent of the burden imposed by the development as required in subsection B, paragraph 12 of this section.

F. A municipality's development fee ordinance shall provide that a new development fee or an increased portion of a modified development fee shall not be assessed against a development for twenty-four months after the date that the municipality issues the final approval for a commercial, industrial or multifamily development or the date that the first building permit is issued for a residential development pursuant to an approved site plan or subdivision plat, provided that no subsequent changes are made to the approved site plan or subdivision plat that would increase the number of service units. If the number of service units increases, the new or increased portion of a modified development fee shall be limited to the amount attributable to the additional service units. The twenty-four month period shall not be extended by a renewal or amendment of the site plan or the final subdivision plat that was the subject of the final approval. The municipality shall issue, on request, a written statement of the development fee schedule applicable to the development. If, after the date of the municipality's final approval of a development, the municipality reduces the development fee assessed on development, the reduced fee shall apply to the development.

G. A municipality shall do one of the following:

Before the adoption of proposed or updated land use assumptions, infrastructure improvements plan and development fees as prescribed in subsection D of this section, the municipality shall appoint an infrastructure improvements advisory committee, subject to the following requirements:

(a) The advisory committee shall be composed of at least five members who are appointed by the governing body of the municipality. At least fifty per cent of the members of the advisory committee must be representatives of the real estate, development or building industries, of which at least one member of the committee must be from the home building industry. Members shall not be employees or officials of the municipality.

(b) The advisory committee shall serve in an advisory capacity and shall:

(i) Advise the municipality in adopting land use assumptions and in determining whether the assumptions are in conformance with the general plan of the municipality.

(ii) Review the infrastructure improvements plan and file written comments.

(iii) Monitor and evaluate implementation of the infrastructure improvements plan.

(iv) Every year file reports with respect to the progress of the infrastructure improvements plan and the collection and expenditures of development fees and report to the municipality any perceived inequities in implementing the plan or imposing the development fee.

(v) Advise the municipality of the need to update or revise the land use assumptions, infrastructure improvements plan and development fee.

(c) The municipality shall make available to the advisory committee any professional reports with respect to developing and implementing the infrastructure improvements plan.

(d) The municipality shall adopt procedural rules for the advisory committee to follow in carrying out the committee's duties.

In lieu of creating an advisory committee pursuant to paragraph 1 of this subsection, provide for a biennial certified audit of the municipality's land use assumptions, infrastructure improvements plan and development fees. An audit pursuant to this paragraph shall be conducted by one or more qualified professionals who are not employees or officials of the municipality and who did not prepare the infrastructure improvements plan. The audit shall review the progress of the infrastructure improvements plan, including the collection and expenditures of development fees for each project in the plan, and evaluate any inequities in implementing the plan or imposing the development fee. The municipality shall post the findings of the audit on the municipality's website or the website of an association of cities and towns if the municipality does not have a website and shall conduct a public hearing on the audit within sixty days of the release of the audit to the public.

H. On written request, an owner of real property for which a development fee has been paid after July 31, 2014 is entitled to a refund of a development fee or any part of a development fee if:

Pursuant to subsection B, paragraph 6 of this section, existing facilities are available and service is not provided.
The municipality has, after collecting the fee to construct a facility when service is not available, failed to complete construction within the time period identified in the infrastructure improvements plan, but in no event later than the time period specified in paragraph 3 of this subsection.
For a development fee other than a development fee for water or wastewater facilities, any part of the development fee is not spent as authorized by this section within ten years after the fee has been paid or, for a development fee for water or wastewater facilities, any part of the development fee is not spent as authorized by this section within fifteen years after the fee has been paid.

I. If the development fee was collected for the construction of all or a portion of a specific item of infrastructure, and on completion of the infrastructure the municipality determines that the actual cost of construction was less than the forecasted cost of construction on which the development fee was based and the difference between the actual and estimated cost is greater than ten per cent, the current owner may receive a refund of the portion of the development fee equal to the difference between the development fee paid and the development fee that would have been due if the development fee had been calculated at the actual construction cost.

J. A refund shall include any interest earned by the municipality from the date of collection to the date of refund on the amount of the refunded fee. All refunds shall be made to the record owner of the property at the time the refund is paid. If the development fee is paid by a governmental entity, the refund shall be paid to the governmental entity.

K. A development fee that was adopted before January 1, 2012 may continue to be assessed only to the extent that it will be used to provide a necessary public service for which development fees can be assessed pursuant to this section and shall be replaced by a development fee imposed under this section on or before August 1, 2014. Any municipality having a development fee that has not been replaced under this section on or before August 1, 2014 shall not collect development fees until the development fee has been replaced with a fee that complies with this section. Any development fee monies collected before January 1, 2012 remaining in a development fee account:

Shall be used towards the same category of necessary public services as authorized by this section.
If development fees were collected for a purpose not authorized by this section, shall be used for the purpose for which they were collected on or before January 1, 2020, and after which, if not spent, shall be distributed equally among the categories of necessary public services authorized by this section.

L. A moratorium shall not be placed on development for the sole purpose of awaiting completion of all or any part of the process necessary to develop, adopt or update development fees.

M. In any judicial action interpreting this section, all powers conferred on municipal governments in this section shall be narrowly construed to ensure that development fees are not used to impose on new residents a burden all taxpayers of a municipality should bear equally.

N. Each municipality that assesses development fees shall submit an annual report accounting for the collection and use of the fees for each service area. The annual report shall include the following:

The amount assessed by the municipality for each type of development fee.
The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year.
The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year.
The amount of development fee monies used to repay:

(a) Bonds issued by the municipality to pay the cost of a capital improvement project that is the subject of a development fee assessment, including the amount needed to repay the debt service obligations on each facility for which development fees have been identified as the source of funding and the time frames in which the debt service will be repaid.

(b) Monies advanced by the municipality from funds other than the funds established for development fees in order to pay the cost of a capital improvement project that is the subject of a development fee assessment, the total amount advanced by the municipality for each facility, the source of the monies advanced and the terms under which the monies will be repaid to the municipality.

The amount of development fee monies spent on each capital improvement project that is the subject of a development fee assessment and the physical location of each capital improvement project.
The amount of development fee monies spent for each purpose other than a capital improvement project that is the subject of a development fee assessment.

O. Within ninety days following the end of each fiscal year, each municipality shall submit a copy of the annual report to the city clerk and post the report on the municipality's website or the website of an association of cities and towns if the municipality does not have a website. Copies shall be made available to the public on request. The annual report may contain financial information that has not been audited.

P. A municipality that fails to file the report and post the report on the municipality's website or the website of an association of cities and towns if the municipality does not have a website as required by this section shall not collect development fees until the report is filed and posted.

Q. Any action to collect a development fee shall be commenced within two years after the obligation to pay the fee accrues.

R. A municipality may continue to assess a development fee adopted before January 1, 2012 for any facility that was financed before June 1, 2011 if:

Development fees were pledged to repay debt service obligations related to the construction of the facility.
After August 1, 2014, any development fees collected under this subsection are used solely for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued before June 1, 2011 to finance construction of the facility.

S. Through August 1, 2014, a development fee adopted before January 1, 2012 may be used to finance construction of a facility and may be pledged to repay debt service obligations if:

The facility that is being financed is a facility that is described under subsection T, paragraph 7, subdivisions (a) through (g) of this section.
The facility was included in an infrastructure improvements plan adopted before June 1, 2011.
The development fees are used for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued to finance construction of the necessary public services or facility expansions identified in the infrastructure improvement plan.

T. For the purposes of this section:

"Dedication" means the actual conveyance date or the date an improvement, facility or real or personal property is placed into service, whichever occurs first.
"Development" means:

(a) The subdivision of land.

(b) The construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that adds or increases the number of service units.

"Facility expansion" means the expansion of the capacity of an existing facility that serves the same function as an otherwise new necessary public service in order that the existing facility may serve new development. Facility expansion does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
"Final approval" means:

(a) For a nonresidential or multifamily development, the approval of a site plan or, if no site plan is submitted for the development, the approval of a final subdivision plat.

(b) For a single family residential development, the approval of a final subdivision plat.

"Infrastructure improvements plan" means a written plan that identifies each necessary public service or facility expansion that is proposed to be the subject of a development fee and otherwise complies with the requirements of this section, and may be the municipality's capital improvements plan.
"Land use assumptions" means projections of changes in land uses, densities, intensities and population for a specified service area over a period of at least ten years and pursuant to the general plan of the municipality.
"Necessary public service" means any of the following facilities that have a life expectancy of three or more years and that are owned and operated by or on behalf of the municipality:

(a) Water facilities, including the supply, transportation, treatment, purification and distribution of water, and any appurtenances for those facilities.

(b) Wastewater facilities, including collection, interception, transportation, treatment and disposal of wastewater, and any appurtenances for those facilities.

(d) Library facilities of up to ten thousand square feet that provide a direct benefit to development, not including equipment, vehicles or appurtenances.

(e) Street facilities located in the service area, including arterial or collector streets or roads that have been designated on an officially adopted plan of the municipality, traffic signals and rights-of-way and improvements thereon.

(f) Fire and police facilities, including all appurtenances, equipment and vehicles. Fire and police facilities do not include a facility or portion of a facility that is used to replace services that were once provided elsewhere in the municipality, vehicles and equipment used to provide administrative services, helicopters or airplanes or a facility that is used for training firefighters or officers from more than one station or substation.

(g) Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the development. Park and recreational facilities do not include vehicles, equipment or that portion of any facility that is used for amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses, community centers greater than three thousand square feet in floor area, environmental education centers, equestrian facilities, golf course facilities, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, zoo facilities or similar recreational facilities, but may include swimming pools.

(h) Any facility that was financed and that meets all of the requirements prescribed in subsection R of this section.

"Qualified professional" means a professional engineer, surveyor, financial analyst or planner providing services within the scope of the person's license, education or experience.
"Service area" means any specified area within the boundaries of a municipality in which development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the infrastructure improvements plan.
"Service unit" means a standardized measure of consumption, use, generation or discharge attributable to an individual unit of development calculated pursuant to generally accepted engineering or planning standards for a particular category of necessary public services or facility expansions.

§ 9-463.06 Standards for enactment of moratorium; land development; limitations; definitions

A. A city or town shall not adopt a moratorium on construction or land development unless it first:

Provides notice to the public published once in a newspaper of general circulation in the community at least thirty days before a final public hearing to be held to consider the adoption of the moratorium.
Makes written findings justifying the need for the moratorium in the manner provided for in this section.
Holds a public hearing on the adoption of the moratorium and the findings that support the moratorium.

B. For urban or urbanizable land, a moratorium may be justified by demonstration of a need to prevent a shortage of essential public facilities that would otherwise occur during the effective period of the moratorium. This demonstration shall be based on reasonably available information and shall include at least the following findings:

A showing of the extent of need beyond the estimated capacity of existing essential public facilities expected to result from new land development, including identification of any essential public facilities currently operating beyond capacity and the portion of this capacity already committed to development, or in the case of water resources, a showing that, in an active management area, an assured water supply cannot be provided or, outside an active management area, a sufficient water supply cannot be provided, to the new land development, including identification of current water resources and the portion already committed to development.
That the moratorium is reasonably limited to those areas of the city or town where a shortage of essential public facilities would otherwise occur and on property that has not received development approvals based upon the sufficiency of existing essential public facilities.
That the housing and economic development needs of the area affected have been accommodated as much as possible in any program for allocating any remaining essential public facility capacity.

C. A moratorium not based on a shortage of essential public facilities under subsection B of this section may be justified only by a demonstration of compelling need for other public facilities, including police and fire facilities. This demonstration shall be based on reasonably available information and shall include at least the following findings:

For urban or urbanizable land:

(a) That application of existing development ordinances or regulations and other applicable law is inadequate to prevent irrevocable public harm from development in affected geographical areas.

(b) That the moratorium is sufficiently limited to ensure that a needed supply of affected housing types and the supply of commercial and industrial facilities within or in proximity to the city or town are not unreasonably restricted by the adoption of the moratorium.

(d) That the city or town has determined that the public harm that would be caused by failure to impose a moratorium outweighs the adverse effects on other affected local governments, including shifts in demand for housing or economic development, public facilities and services and buildable lands and the overall impact of the moratorium on population distribution.

(e) That the city or town proposing the moratorium has developed a work plan and time schedule for achieving the objectives of the moratorium.

For rural land:

(a) That application of existing development ordinances or regulations and other applicable law is inadequate to prevent irrevocable public harm from development in affected geographical areas.

(b) Stating the reasons that alternative methods of achieving the objectives of the moratorium are unsatisfactory.

(c) That the moratorium is sufficiently limited to ensure that lots or parcels outside the affected geographical areas are not unreasonably restricted by the adoption of the moratorium.

(d) That the city or town proposing the moratorium has developed a work plan and time schedule for achieving the objectives of the moratorium.

D. Any moratorium adopted pursuant to this section does not affect any express provision in a development agreement entered into pursuant to section 9-500.05 or as defined in section 11-1101 governing the rate, timing and sequencing of development, nor does it affect rights acquired pursuant to a protected development right granted according to chapter 11 of this title or title 11, chapter 9. Any moratorium adopted pursuant to this section shall provide a procedure pursuant to which an individual landowner may apply for a waiver of the moratorium's applicability to its property by claiming rights obtained pursuant to a development agreement, a protected development right or any vested right or by providing the public facilities that are the subject of the moratorium at the landowner's cost.

E. A moratorium adopted under subsection C, paragraph 1 of this section shall not remain in effect for more than one hundred twenty days, but such a moratorium may be extended for additional periods of time of up to one hundred twenty days if the city or town adopting the moratorium holds a public hearing on the proposed extension and adopts written findings that:

Verify the problem requiring the need for the moratorium to be extended.
Demonstrate that reasonable progress is being made to alleviate the problem resulting in the moratorium.
Set a specific duration for the renewal of the moratorium.

F. A city or town considering an extension of a moratorium shall provide notice to the general public published once in a newspaper of general circulation in the community at least thirty days before a final hearing is held to consider an extension of a moratorium.

G. Nothing in this section shall prevent a city or town from complying with any state or federal law, regulation or order issued in writing by a legally authorized governmental entity.

H. A landowner aggrieved by a municipality's adoption of a moratorium pursuant to this section may file, at any time within thirty days after the moratorium has been adopted, a complaint for a trial de novo in the superior court on the facts and the law regarding the moratorium. All matters presented to the superior court pursuant to this section have preference on the court calendar on the same basis as condemnation matters and the court shall further have the authority to award reasonable attorney fees incurred in the appeal and trial pursuant to this section to the prevailing party.

I. In this section:

"Compelling need" means a clear and imminent danger to the health and safety of the public.
"Essential public facilities" means water, sewer and street improvements to the extent that these improvements and water resources are provided by the city, town or private utility.
"Moratorium on construction or land development" means engaging in a pattern or practice of delaying or stopping issuance of permits, authorizations or approvals necessary for the subdivision and partitioning of, or construction on, any land. It does not include denial or delay of permits or authorizations because they are inconsistent with applicable statutes, rules, zoning or other ordinances.
"Rural land" means all property in the unincorporated area of a county or in the incorporated area of the city or town with a population of two thousand nine hundred or less persons according to the most recent United States decennial census.
"Urban or urbanizable land" means all property in the incorporated area of a city or town with a population of more than two thousand nine hundred persons according to the most recent United States decennial census.
"Vested right" means a right to develop property established by the expenditure of substantial sums of money pursuant to a permit or approval granted by the city, town or county.

Article 6.3 Open Space Conservation

§ 9-464 Definition

In this article, unless the context otherwise requires, "open space lands or open area" means any space or area characterized by great natural scenic beauty or whose existing openness, natural condition or present state of use, if retained, would maintain or enhance the conservation of natural or scenic resources, or the production of food and fiber.

§ 9-464.01 Open space land acquisition

The acquisition of interests or rights in real property for the preservation of open spaces or areas constitutes a public purpose for which public funds may be expended or advanced.

Article 6.4 Building Permits

§ 9-467 Building permits; issuance; distribution of copies; state preemption; utilities; subsequent owner; limitation; definitions

A. Any municipality requiring the issuance of a building permit shall transmit one copy of the permit to the county assessor and one copy to the director of the department of revenue. Permit copies shall provide the permit number, issue date and parcel number. On the issuance of the certificate of occupancy or the certificate of completion or on the expiration or cancellation of the permit, the assessor and the department of revenue shall be notified in writing or in electronic format of the permit number, parcel number, issue date and completion date.

B. The regulation of a utility provider's authority to operate and serve customers is a matter of statewide concern. The regulation of building permits as it relates to a building permit applicant's ability to use a utility provider that is capable and authorized to provide utility service is allowed solely in accordance with subsections C and D of this section. A building permit applicant's ability to use a utility provider that is capable and authorized to provide utility service is not subject to further regulation by a municipality.

C. A municipality requiring the issuance of a building permit may not deny a permit application based on the utility provider proposed to provide utility service to the project.

D. A municipality issuing a building permit shall ensure that all applicable permits and associated fees assessed on a building permit applicant contain requirements and amounts that do not exceed the requirements and amounts for use of other utility providers and do not have the effect of restricting a permit applicant's ability to use the services of a utility provider that is capable and authorized to provide utility service.

E. A municipality may not require an applicant for a building permit to hold a transaction privilege tax license or business license as a condition for issuing the building permit. A city or town may require a person that has been issued a building permit and that does not otherwise hold a business license from the municipality to apply for a business license within thirty days after issuing the building permit.

F. If a person has constructed a building or an addition to a building without obtaining a building permit, a municipality shall not require a subsequent owner to obtain a permit for the construction or addition done by the prior owner before issuing a permit for a building addition except that this section does not prohibit enforcing an applicable ordinance or code provision that affects the public health or safety.

G. This section does not prohibit a municipality from recovering reasonable costs associated with reviewing and issuing a building permit.

H. This section does not affect any authority of a municipality to manage or operate a municipally owned utility.

I. For the purposes of this section:

"Municipality" means a city or town organized in accordance with law, including a home rule or charter city.
"Utility service" means water, wastewater, natural gas, including propane gas, or electric service provided to an end user.

§ 9-468 Solar construction permits; standards; definition

A. Municipalities shall adopt the following standards for issuing permits for the use of certain solar energy devices:

For construction with solar photovoltaic systems that are intended to connect to a utility system, the following apply:

(a) The location of the photovoltaic system installation shall be indicated on the construction plans, including the roof plan and elevation.

(b) Photovoltaic panel mounting details shall be included in the installation plans.

(c) The electrical diagrams shall include one-line or three-line diagrams. A one-line or three-line electrical diagram is not required if a qualified online automated permitting platform is used to verify code compliance.

(d) For direct current to alternating current conversions, the cut sheet and listings for inverters shall be included in the plans.

(e) A municipality shall not require a stamp from a professional engineer for a solar photovoltaic system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary.

(f) A municipality may use a qualified online automated permitting platform to verify code compliance in order to satisfy the requirements of subdivisions (a), (b), and (c) of this paragraph.

For solar water heating systems, the following apply:

(a) The location of the solar panel system shall be indicated on the construction plans, including the roof plan and elevation, and shall include mounting details for panel installation.

(b) Construction plan notes shall include a requirement that solar water heating equipment be installed in compliance with applicable plumbing codes and as prescribed by a solar rating and certification corporation and any guidelines adopted by this state.

(c) A municipality shall not require a stamp from a professional engineer for a single-family solar water heating system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary.

B. Any building or permit fee or charge assessed by a city or town for a building permit for solar construction must be attributable to and defray or cover the expense of the service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost of issuing a permit, and a written, itemized list of the individual costs associated with the permit fee shall be provided at the request of the permittee.

C. Before adoption of a fee for service or an additional or separate charge pursuant to this section, a city or town shall hold a public hearing on the issue with at least fifteen days' published notice.

D. The method by which a city or town arrives at an assessed permit or plan fee must be published and made available to the public.

E. For the purposes of this section, "qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems and residential energy storage systems paired with residential solar energy systems in real time.

§ 9-469 Municipal housing needs assessment; annual report; applicability

A. Beginning January 1, 2025 and every five years thereafter, a municipality shall publish a housing needs assessment that includes the following:

The total population growth projected for the subsequent five-year period.
The total job growth projected for the subsequent five-year period.
The total amount of residentially zoned land with detail on land zoned as single-family and multifamily.
The total need for additional residential housing units for rent and for sale in the municipality to meet:

(a) Any deficiencies in housing the existing population.

(b) Any deficiencies in housing the existing workforce.

(d) Job growth projections.

(e) Housing needs across all various income levels.

B. Beginning January 1, 2025 and every year thereafter, each municipality shall submit an annual report to the Arizona department of housing accounting for the total number of proposed residential housing units submitted to the municipality, the total number of net new residential housing units submitted to the municipality and the total number of new residential housing units that are entitled, have been platted, have been issued a building permit and have received a certificate of occupancy by the municipality. The annual report shall include all of the following:

The number of housing development applications received in the prior year.
The number of lots and multifamily units included in all development applications in the prior year.
The number of lots and multifamily units approved and disapproved or otherwise not approved in the prior year.
A threshold percentage requirement of multifamily zoned land versus single-family zoned land needed to meet population demand in each municipality.
The status and progress in meeting the municipality's housing needs.
A plan that specifies how the municipality intends to satisfy the identified need for additional housing units within the municipality.

C. A municipality that has conducted a housing needs assessment report as of January 1, 2021 shall amend all existing reports to include the information required in subsection A of this section.

D. The Arizona department of housing shall compile the reports received pursuant to subsection B of this section and submit the reports to the governor, the president of the senate and the speaker of the house of representatives.

E. This section does not require a municipality to fulfill the projections in the housing needs assessment required by subsection A of this section.

F. This section does not apply to a municipality that is located on tribal land or a municipality with a population of less than thirty thousand persons.

§ 9-470 Building permits; hoophouses; polyhouses; exemption; existing zoning regulations; compliance; administrative review; definitions

A. Notwithstanding any other law, construction of a hoophouse or polyhouse is exempt from municipal building permit requirements if the hoophouse or polyhouse meets all of the following requirements:

The structure does not have a permanent anchoring system. The structure shall be anchored in a way that allows removal and relocation of the structure at the discretion of the property owner and in a manner that prevents unintended detachment or relocation.
There is no temporary or permanent storage of solvents, fertilizers, gases or other chemicals or flammable materials.
The structure is not wider than thirty-one feet and there is an unobstructed path of not more than one hundred fifty feet from any point to a door or fully accessible wall.
The covering of the structure is of material not greater than twelve mils in thickness, that conforms to the national fire protection association standard methods of fire tests for flame propagation of textiles and films (NFPA 701) and that yields approximately four pounds of maximum impact resistance to provide egress through the wall.

B. Notwithstanding subsection A of this section, if a hoophouse or polyhouse is located on a lot less than one acre in size within a residential community, a municipality may adopt an ordinance to regulate the structure's height above the fence line.

C. Notwithstanding subsection A of this section, if a hoophouse or polyhouse contains a device that is subject to existing municipal electrical or mechanical codes and regulations, a permit shall be required for the device. If the hoophouse or polyhouse is connected to a potable water system, a permit shall be required for the backflow prevention devices contained within the potable water system.

D. Notwithstanding subsection A of this section, a hoophouse or polyhouse shall comply with all height, setback and lot coverage requirements contained in the municipal zoning and land use regulations for detached accessory buildings or structures.

E. A municipality may establish an administrative review process for a hoophouse or polyhouse constructed pursuant to this section and may require a person who intends to build a hoophouse or polyhouse to submit to the municipality documentation that contains information regarding the construction of the hoophouse or polyhouse, including the materials being used, so the municipality may determine if the planned construction meets the requirements of this section.

F. For the purposes of this section:

"Hoophouse" or "polyhouse" means a greenhouse used exclusively for producing and storing live plants.
"Permanent anchoring system":

(a) Means a structurally engineered assembly of components designed to affix a structure to the ground on a permanent basis.

(b) Includes permanent foundations and anchors.

§ 9-470.01 Single-family residential dwelling units; applications; third-party review; appeals; immunity; applicability; definition

A. If a municipality with a population of thirty thousand persons or more does not approve, conditionally approve or respond with required additions or revisions to an application for a single-family residential building permit within fifteen working days after the date the application is submitted, any required review of the application may be performed by a qualified third party selected by the municipality pursuant to the requirements of this section. A municipality shall maintain a list of at least three third-party reviewers who are eligible to be hired by the municipality to perform a building permit application review pursuant to this section. The time frame prescribed by this subsection does not begin until the applicant has satisfied the following requirements:

The municipality has approved construction documents for the dwelling to be constructed.
The municipality has approved vertical construction activities to begin in the subdivision in which the dwelling is to be constructed or, if the dwelling is not to be constructed in a subdivision, on the individual lot on which the dwelling is to be constructed.

B. A third party who reviews a single-family residential building permit application pursuant to this section shall do both of the following:

Review the application and take all other related actions in accordance with all requirements adopted by the municipality where the application was submitted.
Notify the municipality and the applicant of the results of the review.

C. A municipality may not request or require an applicant to waive a deadline or other procedure required by this section.

D. The applicant may appeal a decision by the municipality to approve, conditionally approve or deny a single-family residential building permit application.

E. A municipality that issues a permit, approval or certificate of occupancy after a third-party plan review pursuant to this section shall have immunity as prescribed in sections 12-820.01 and 12-820.02.

F. The applicant is responsible for any fees and costs associated with a third-party review and shall pay the fees and costs to the municipality.

G. This section does not apply to applications required to comply with a hillside development ordinance or for floodplain reviews that are required pursuant to federal floodplain regulations.

H. This section does not modify the authority of a building official to withhold a certificate of occupancy in accordance with the municipality's adopted codes and ordinances.

I. For the purposes of this section, "application":

Means a plan, permit or other document that is related to building construction and that is necessary for the construction of a single-family residential dwelling unit.
Does not include either:

(a) A certificate of occupancy.

(b) A subdivision preplat.

Article 7 Extension of Corporate Limits; Platting Adjacent Subdivisions

§ 9-471 Annexation of territory; procedures; notice; petitions; access to information; pre-annexation agreements; restrictions

A. The following procedures are required to extend and increase the corporate limits of a city or town by annexation:

A city or town shall file in the office of the county recorder of the county in which the annexation is proposed a blank petition required by paragraph 4 of this subsection setting forth a description and an accurate map of all the exterior boundaries of the territory contiguous to the city or town proposed to be annexed, except that a city or town shall not file an annexation petition that includes any territory for which an unsuccessful annexation was attempted by the same city or town until at least forty-five days after completion of the unsuccessful attempt. A property owner may waive the forty-five-day waiting period for the owner's property that was part of the original unsuccessful annexation. Notice and a copy of the filing shall be given to the clerk of the board of supervisors and to the county assessor. The accurate map shall include all county rights-of-way and roadways that are within or contiguous to the exterior boundaries of the area of the proposed annexation. If state land, other than state land used as state rights-of-way or land held by the state by tax deed, is included in the territory, written approval of the state land commissioner and the selection board established by section 37-202 shall also be filed. The description shall identify the entity, if any, that will be responsible for maintaining the existing rights-of-way and roadways that are within or contiguous to the exterior boundaries of the area of the proposed annexation. For the purposes of this paragraph, "unsuccessful annexation" means an annexation attempt that was withdrawn or that was not completed pursuant to this section.
Signatures on petitions filed for annexation shall not be obtained for a waiting period of thirty days after filing the blank petition.
After filing the blank petition pursuant to paragraph 1 of this subsection, the governing body of the city or town shall hold a public hearing within the last ten days of the thirty-day waiting period to discuss the annexation proposal. The public hearing shall be held in accordance with title 38, chapter 3, article 3.1, except that, notwithstanding section 38-431.02, subsections C and D, the following notices of the public hearing to discuss the annexation proposal shall be given at least six days before the hearing:

(a) Publication at least once in a newspaper of general circulation, which is published or circulated in the city or town and the territory proposed to be annexed, at least fifteen days before the end of the waiting period.

(b) Posting in at least three conspicuous public places in the territory proposed to be annexed.

(c) Notice by first class mail sent to the chairperson of the board of supervisors of the county in which the territory proposed to be annexed is located.

(d) Notice by first class mail with an accurate map of the territory proposed to be annexed sent to each owner of the real and personal property as shown on the statement furnished pursuant to subsection G of this section that would be subject to taxation by the city or town in the event of annexation in the territory proposed to be annexed. For the purposes of this subdivision, "real and personal property" includes mobile, modular and manufactured homes and trailers only if the owner also owns the underlying real property.

Within one year after the last day of the thirty-day waiting period, a petition in writing signed by the owners of one-half or more in value of the real and personal property and more than one-half of the persons owning real and personal property that would be subject to taxation by the city or town in the event of annexation, as shown by the last assessment of the property, may be circulated and filed in the office of the county recorder. For the purposes of this paragraph, "real and personal property" includes mobile, modular and manufactured homes and trailers only if the owner also owns the underlying real property.
Alterations increasing or reducing the territory sought to be annexed shall not be made after a petition has been signed by a property owner.
The petitioner shall determine and submit a sworn affidavit verifying that no part of the territory for which the filing is made is already subject to an earlier filing for annexation. The county recorder shall not accept a filing for annexation without the sworn affidavit.

B. All information contained in the filings, the notices, the petition, the tax and property rolls and other matters regarding a proposed or final annexation shall be made available by the appropriate official for public inspection during regular office hours.

C. Any city or town, the attorney general, the county attorney or any other interested party within the territory to be annexed may on verified petition move to question the validity of the annexation for failure to comply with this section. The petition shall set forth the manner in which it is alleged the annexation procedure was not in compliance with this section and shall be filed within thirty days after adoption of the ordinance annexing the territory by the governing body of the city or town and not otherwise. The burden of proof shall be on the petitioner to prove the material allegations of the verified petition. An action shall not be brought to question the validity of an annexation ordinance unless brought within the time and for the reasons provided in this subsection. All hearings provided by this section and all appeals therefrom shall be preferred and heard and determined in preference to all other civil matters, except election actions. If more than one petition questioning the validity of an annexation ordinance is filed, all such petitions shall be consolidated for hearing. If two or more cities or towns show the court that they have demonstrated an active interest in annexing any or all of the area proposed for annexation, the court shall consider any oral or written agreements or understandings between or among the cities and towns in making its determination pursuant to this subsection.

D. The annexation shall become final after the expiration of thirty days after the adoption of the ordinance annexing the territory by the city or town governing body, provided the annexation ordinance has been finally adopted in accordance with procedures established by statute, charter provisions or local ordinances, whichever is applicable, subject to the review of the court to determine the validity of the annexation ordinance if petitions in objection have been filed. After adoption of the annexation ordinance, the clerk of the city or town shall provide a copy of the adopted annexation ordinance to the clerk of the board of supervisors of each county that has jurisdiction over the annexed area within sixty days after the annexation becomes final.

E. For the purpose of determining the sufficiency of the percentage of the value of property under this section, the values of property shall be determined as follows:

In the case of property assessed by the county assessor, values shall be the same as shown by the last assessment of the property.
In the case of property valued by the department of revenue, values shall be appraised by the department in the manner provided by law for municipal assessment purposes.

F. For the purpose of determining the sufficiency of the percentage of persons owning property under this section, the number of persons owning property shall be determined as follows:

In the case of property assessed by the county assessor, the number of persons owning property shall be as shown on the last assessment of the property.
In the case of property valued by the department of revenue, the number of persons owning property shall be as shown on the last valuation of the property.
If an undivided parcel of property is owned by multiple owners, those owners are deemed one owner for the purposes of this section.
If a person owns multiple parcels of property, that owner is deemed one owner for the purposes of this section.

G. The county assessor and the department of revenue, respectively, shall furnish to the city or town proposing an annexation, within thirty days after a request, a statement in writing showing the owner, the address of each owner and the appraisal and assessment of all such property.

H. Territory is not contiguous for the purposes of subsection A, paragraph 1 of this section unless:

It adjoins the exterior boundary of the annexing city or town for at least three hundred feet.
It is, at all points, at least two hundred feet in width, excluding rights-of-way and roadways.
The distance from the existing boundary of the annexing city or town where it adjoins the annexed territory to the furthest point of the annexed territory from that boundary is not more than twice the maximum width of the annexed territory.

I. A city or town shall not annex territory if, as a result of that annexation, unincorporated territory is completely surrounded by the annexing city or town or a combination of the annexing city or town and other cities or towns, unless the county board of supervisors for the county in which the territory is located makes a finding that the proposed annexation will not adversely impact the levels of county services to the remaining unincorporated territory.

J. Notwithstanding any provisions of this article to the contrary, any town incorporated before 1950 that had a population of less than two thousand persons by the 1970 census and that is bordered on at least three sides by Indian lands may annex by ordinance territory owned by the state within the same county for a new townsite that is not contiguous to the existing boundaries of the town.

K. Subsections H and I of this section do not apply to territory that at the time of the annexation was already completely surrounded by the same city or town or a combination of cities and towns.

L. Subsection I of this section does not apply to annexations that were approved by the selection board established in section 37-202 before August 25, 2020.

M. A city or town annexing an area shall adopt zoning classifications that permit densities and uses not greater than those permitted by the county immediately before annexation. Subsequent changes in zoning of the annexed territory shall be made according to existing procedures established by the city or town for the rezoning of land.

N. The annexation of territory within six miles of territory included in a pending incorporation petition filed with the county recorder pursuant to section 9-101.01, subsection D shall not cause an urbanized area to exist pursuant to section 9-101.01 that did not exist before the annexation.

O. As an alternative to the procedures established in this section, a county right-of-way or roadway may be transferred to an adjacent city or town by mutual consent of the governing bodies of the county and city or town if the property transferred is adjacent to the receiving city or town and if the city or town and county each approve the proposed transfer as a published agenda item at a regular public meeting of their governing bodies. A transfer of property made pursuant to this subsection shall be treated by the receiving city or town as if the transferred property was newly annexed territory.

P. On or before the date the governing body adopts the ordinance annexing territory, the governing body shall have approved a plan, policy or procedure to provide the annexed territory with appropriate levels of infrastructure and services to serve anticipated new development within ten years after the date the annexation becomes final pursuant to subsection D of this section.

Q. If a property owner prevails in any action to challenge the annexation of the property owner's property, the court shall allow the property owner reasonable attorney fees and costs relating to the action from the annexing municipality.

R. A city or town may annex territory that is a county-owned park or a park operated on public lands by a county as part of a management agreement if otherwise agreed to by the board of supervisors. If the board of supervisors does not agree to the annexation, the county-owned park or park operated on public lands by a county as part of a management agreement shall be excluded from the annexation area, notwithstanding subsections H and I of this section. A county-owned park or park operated on public lands by a county as part of a management agreement that is excluded from the annexation area pursuant to this subsection may subsequently be annexed with the permission of the board of supervisors notwithstanding any other provision of this section. For the purposes of this subsection, "public lands":

Has the same meaning prescribed in section 37-901.
Does not include lands owned by a flood control district.

S. Notwithstanding subsection H of this section, territory is considered contiguous for the purposes of subsection A, paragraph 1 of this section if all of the real property in the territory is owned by one person, the city or town and the owner of the real property agree to the annexation and the territory adjoins the exterior boundary of the annexing city or town for at least three hundred feet.

T. A city, town or developer may enter into a pre-annexation agreement with a property owner in which the property owner agrees to future annexation of an area that includes the property owner's property. A property owner who has entered into a pre-annexation agreement is not required to sign the petition pursuant to subsection A, paragraph 4 of this section. Whether or not the property owner signs the petition, the property and property owner are included for purposes of calculating the one-half or more in value of the real and personal property and more than one-half of the persons owning real and personal property that would be subject to taxation by the city or town in the event of the annexation, as required pursuant to subsection A, paragraph 4 of this section.

§ 9-471.01 Dates of signatures on petition; time limitation for validity of signatures

A. Each person signing a petition for the annexation of territory to a city or town shall, at the time he signs, write upon the petition the date on which he signs the petition.

B. A signature on a petition for annexation shall not be valid if the petition has not been filed or accepted for filing within two years after the date the signature was placed on the petition.

§ 9-471.02 Deannexation of land from one municipality and annexation to another municipality; deannexation of right-of-way from a municipality to a county

A. Notwithstanding any other law, territory may be deannexed and severed from one city or town and annexed to another city or town under this section if the territory that is deannexed is contiguous to the city or town that annexes the territory.

B. The governing body of a city or town that intends to deannex the territory shall by ordinance set forth the legal description of the territory and shall declare the deannexation of the territory contingent on the fulfillment of the conditions of this section.

C. The governing body of the city or town that intends to annex the territory shall by ordinance set forth the legal description of the territory and shall declare the annexation of the territory contingent on fulfillment of the conditions of this section.

D. The ordinance passed by each governing body shall be filed with the county board of supervisors which shall set a hearing date of not less than thirty nor more than sixty days from the date of the filing of the ordinances and shall notify the governing body of each city or town of the hearing date at least thirty days prior to the date.

E. The governing body of the city or town desiring to deannex territory shall notify by letter the owner of any real property in the territory to be deannexed at least twenty days before the hearing by the county board of supervisors. The notification shall specify that the area is to be deannexed and annexed to another city or town and that the property shall continue to be subject to any tax lawfully assessed against it for the purpose of paying any indebtedness lawfully contracted by the governing body of the city or town while the property was within the corporate limits. The letter shall state that the property owner may protest the action by letter to the county board of supervisors before the hearing or in person at the hearing. If property owners of fifty-one per cent or more of the land area of the territory to be deannexed protest the action, the county board of supervisors shall deny the deannexation of the territory. If the action is denied it may not be resubmitted to the county board of supervisors for at least one year following the denial.

F. On determining that the requirements of this section have been satisfied, on the holding of the public hearing and on determination that the protests filed are insufficient as defined by this section, the county board of supervisors shall order that the territory be deannexed from one city or town and that the same territory be annexed to another city or town as specified in the two ordinances authorized by this section.

G. The land deannexed and annexed shall not be exempt from the payment of any taxes lawfully assessed against it for the purpose of paying any indebtedness lawfully contracted by the corporate authorities of the city or town while the land was within the limits of the city or town and that remains unpaid, and for the payment of which the land could be lawfully taxed.

H. If the governing body of the city or town that has deannexed territory levies a tax on the property within the city or town for the purpose of paying indebtedness incurred before the deannexation, or any part thereof, and interest thereon, the governing body may levy a tax at the same rate and for the same purpose on the deannexed territory. If the owner of any deannexed territory pays off and discharges a portion of the indebtedness equal in amount to the same proportion of the indebtedness that the assessed value of the owner's land bears to the entire assessed value of all the property subject to taxation for the payment of the indebtedness, calculated according to the last assessment previous to the payment, the land shall be exempted from further taxation to pay the indebtedness. On payment being made, the canceled bonds or other evidences of payment of the portion of the indebtedness shall be deposited with the clerk of the city or town and a certificate shall be given by the clerk stating that the payment has been made.

I. Notwithstanding any other law, a public right-of-way that is partially located within a city or town and partially located within the unincorporated area of a county may be deannexed and severed from the city or town and returned to the county pursuant to section 9-471.03. The county board of supervisors shall notify the city or town if the order of the county board of supervisors ordering the deannexation of the public right-of-way is approved.

J. A copy of the order of the county board of supervisors ordering the deannexation and annexation of any land described in any city or town, certified by the clerk of the board, shall be filed for record in the recorder's office of the county in which the land is situated. The record, or a copy of the order or decree, certified by the clerk of the board, shall be proof of the deannexation and annexation of the land.

§ 9-471.03 Return of certain land to county; procedures

A. Notwithstanding any other law, territory may be deannexed, severed and returned to the county by a city or town if the territory is a county owned park, a park operated on public lands by a county as part of a management agreement or land owned by a flood control district.

B. Notwithstanding any other law, a public right-of-way that is partially located within a city or town and partially located within the unincorporated area of a county may be deannexed and severed from the city or town and returned to the county.

C. The governing body of a city or town that intends to return the territory or public right-of-way to a county shall set forth by ordinance the legal description of the territory or public right-of-way and shall declare the deannexation and return of the territory or public right-of-way contingent on the fulfillment of the conditions of this section.

D. The board of supervisors that intends to receive the territory or public right-of-way shall set a public hearing to determine if the public interest is served. The determination must include an analysis of the impacts of the requested deannexation.

E. If the board of supervisors that intends to receive the territory or public right-of-way determines that the public interest is served by receiving the territory or public right-of-way, the board of supervisors shall set forth by ordinance the legal description of the territory or public right-of-way and shall declare the return of the territory or public right-of-way contingent on fulfillment of the conditions of this section.

F. The board of supervisors shall set a public hearing not less than thirty nor more than sixty days after the date the ordinance is filed. The board of supervisors shall notify by certified mail each owner of real property subject to taxation adjacent to the territory or public right-of-way that is proposed to be deannexed at least twenty days before the hearing. On the holding of the public hearing, the board of supervisors may order that the territory or public right-of-way be returned as specified in the ordinance authorized by the city or town.

§ 9-471.04 Annexation of territory partially or completely surrounded by city or town; definition

A. Notwithstanding any other provision of this article:

A city or town located in a county with a population of more than three hundred fifty thousand persons may annex any territory within an area that is surrounded by the city or town or that is bordered by the city or town on at least three sides if the landowner has submitted a request to the federal government to take ownership of the territory or hold the territory in trust.
The annexation of territory pursuant to this section is valid if approved by a majority vote of the governing body of the city or town. The annexation becomes immediately operative if it is approved by at least two-thirds of the governing body of the city or town.

B. For the purposes of this section, "submitted a request to the federal government" means the landowner has made an application to the federal government as required by a specific federal statute or regulation.

§ 9-472 Annexed territory as part of adjoining district

All territory annexed to a city or town shall become a part of the district or districts of the city or town adjoining the territory so annexed.

§ 9-473 Redistricting; representation

A. The common councils of incorporated cities and towns may redistrict and subdivide their territory into districts.

B. Each district shall contain a nearly equal number of inhabitants at the time of the redistricting and shall consist of contiguous territory in as compact form as possible. The redistricting shall not be made within six months before a city, town or district election.

C. Each district shall be entitled to one councilman or representative in the governing body who is elected pursuant to chapter 7, article 3 of this title.

§ 9-474 Subdivision plats; projection of street and alley lines; approval; survey

A. When the owner of land, the whole or part of which is in an unincorporated area within three miles from the corporate limits of a city or town having an ordinance establishing minimum subdivision standards and controls, desires to subdivide the land into lots for the purpose of selling it by reference to a map or plat, he shall first give written notice to the city or town of his intention to subdivide the land, naming and describing the land so that it may be identified upon the ground, and shall submit to the city or town a tentative plat of the land showing the manner in which he desires to subdivide the land.

B. If the city or town desires that the streets or alleys of the tract conform with the projected streets or alleys of the city or town, or of an adopted plan of the city or town, then the city or town may, at its cost, project the lines of its streets and alleys to the nearest outer boundary lines of the subdivision and thereon mark the same, and shall supply the owner with the courses of the lines.

C. The city or town may also submit to the owner a written report recommending changes in the submitted plat of the location or dimension of streets, alleys, parks, easement for rights-of-way or property intended to be devoted to the use of the public. One copy of the report shall be delivered to the board of supervisors of the county.

D. If the report is given to the owner or the lines are so marked and the courses given the owner within thirty days from the date of service of notice of intention to the city or town, then the owner shall cause the land to be subdivided into blocks, lots, streets, alleys, parks and parkways, so as to accurately conform to the report and the projected lines and the courses thereof, and shall prepare in duplicate an accurate map or plat thereof on cloth, drawn and attested by a registered civil engineer or registered land surveyor from his survey of the ground. The engineer or registered land surveyor shall, in making the surveys, leave sufficient permanent monuments so that another surveyor or engineer may retrace his work. The nature and location of the monuments shall be plainly shown on the plat.

E. The plat shall particularly set forth and describe:

Parcels of ground within the tract or subdivision to be used for public purposes or offered for dedication for public uses, and their dimensions, boundaries and courses.
Either by number or letter, lots intended for sale, or reserved for private use, and their dimensions, boundaries and courses.
The location of the subdivision into lots with reference to adjacent subdivisions, the maps or plats of which have been previously recorded, or if none, then with reference to corners of a United States survey, or if on land unsurveyed by the United States, then to some prominent artificial monument established for such purpose.

§ 9-475 Filing of map; hearing; approval; recording

A. One copy of the plat or map shall be filed with the city or town and the other copy with the board of supervisors of the county in which the subdivision is situated, to which shall be attached the petition of the owner praying for the approval of the plat or map.

B. The board of supervisors shall set the petition for hearing not less than fifteen and not more than thirty days from the date of the filing of the plat or map and petition with the board, and shall cause written notice thereof to be given to the governing body of the city or town. The city or town may appear at the hearing and show cause why the petition should not be granted. Upon the hearing, if it appears to the board that the plat or map reasonably conforms to legal requirements it shall approve and endorse the approval upon the plat or map and transmit it to the county recorder of the county for filing.

§ 9-476 Amendments to plat

If on the hearing it is determined by the board that corrections, additions or amendments in any respect shall be made to the plat or map then a plat or map shall be prepared by the owner in accordance with the amendments, corrections or additions, and the consent of the owner and the board shall be endorsed thereon and filed with the county recorder.

§ 9-477 Subdivision name; limitation; title to streets

A. Upon the plat or map shall be endorsed a name, title or designation of the subdivision and the acknowledgment by the owner or some person for him duly authorized thereunto by deed.

B. No title, name or designation shall be given that is the same as that of a subdivision in a city or town in the same county of which a plat or map has been recorded.

C. Upon the filing of the plat or map, the fee of all streets, alleys, parks and other parcels of ground reserved therein to the use of the public, shall vest in the public.

§ 9-478 Acceptance of plat by recorder

No plat or map shall be accepted by the county recorder for filing unless it complies with the provisions of this article, but if an owner has given to a city or town written notice of intention to subdivide and the city or town has failed or refused within the time specified in this article to project the lines of its streets and alleys and to supply the courses thereof, then the owner may file with the county recorder the plat or map of the subdivision in conformity with law, attaching thereto the sworn statement of the owner of the proceedings.

§ 9-479 Conveyance by reference to plat; restriction; violation; classification

A. No property shall be sold or described in a conveyance or other instrument by reference to any map or plat of a subdivision comprehended within the provisions of this article unless the map or plat has been prepared and filed under the provisions of this article.

B. Every person who sells or offers for sale a lot or parcel of land by reference to a map or plat not prepared in accordance with the provisions of this article is guilty of a class 2 misdemeanor, and every sale or offer of sale of such lot or parcel of land constitutes a separate offense.

Article 7.1 Audit Provisions

§ 9-481 Audits of cities and towns; posting; budget; accepting audit results

A. The governing body of each incorporated city or town shall cause an audit to be made by a certified public accountant who is currently certified by the Arizona state board of accountancy or who has a limited reciprocity privilege pursuant to section 32-725 and who is not an employee of the city or town. Audits shall be made for each fiscal year for all incorporated cities. Audits shall be made at least once for every two fiscal years for all incorporated towns, and the audit shall include financial transactions during both fiscal years.

B. The audit and the audit report shall include all of the accounts and funds of the city or town, including operating, special, utility, debt, trust and pension, and all other money or property for which the city or town, or any department or officer of the city or town, is responsible either directly or indirectly. The audits shall be made in accordance with generally accepted auditing standards. The consequent audit report shall contain financial statements that are in conformity with generally accepted municipal accounting principles and shall set forth the financial position and results of the operations for each fund and account of the city or town. The audit report shall also include the following:

The professional opinion of the accountant or accountants with respect to the financial statements or, if an opinion cannot be expressed, a declaration of the reasons an opinion cannot be expressed.
A determination as to whether Arizona highway user revenue fund monies received by the city or town pursuant to title 28, chapter 18, article 2 and any other dedicated state transportation revenues received by the city or town are being used solely for the authorized transportation purposes.

C. The audit shall begin as soon as possible after the close of the fiscal year, although interim auditing may be performed during the year or years under audit. The audit shall be completed and the final audit report shall be submitted within six months after the close of the fiscal year or years audited.

D. At least three copies of the audit report shall be signed by the auditor and filed with the city or town. The city or town shall immediately do the following:

Make one copy of the report a public record that is open to the public for inspection.
File one copy of the report with the auditor general pursuant to section 41-1279.07, subsection C.
Submit one copy of the report to the secretary of state.

E. The financial statements required to be filed with the auditor general pursuant to section 41-1279.07, including the audit report, must be posted in a prominent location on the official website of the city or town not later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months. If the financial statements are not filed pursuant to section 41-1279.07, the form as prescribed by subsection F of this section shall be posted on the website of the city or town in place of the financial statements until the financial statements are filed.

F. If the financial statements for a city or town are not completed and filed as prescribed by section 41-1279.07 on or before the adoption of the city or town budget in the subsequent fiscal year, the governing body shall include a form, as prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to sections 42-17103 and 42-17105 stating that the financial statements required to be filed with the auditor general pursuant to section 41-1279.07 are pending, the reasons for the delay and the estimated date of completion.

G. If the governing body of a city or town is required to complete the form as prescribed by subsection F of this section, the governing body shall send a copy of the form to the auditor general, the speaker of the house of representatives and the president of the senate.

H. Within ninety days after completing an audit pursuant to this section, the governing body of the city or town shall require the certified public accountant who performed the audit to present the audit results and any findings to the governing body in a regular meeting without the use of a consent agenda, and the governing body shall demonstrate compliance with section 41-1494.

§ 9-482 Expense of audits

The expense of the audit shall be paid by the city or town for which the audit is made. Contracts for the performance of such audits required by this article may be entered into without competitive bidding.

Article 7.2 Mobile Food Vendors and Mobile Food Units

§ 9-485 Definitions

In this article, unless the context otherwise requires:

"Mobile food unit" means a food establishment that is licensed by this state, that is readily movable and that dispenses food or beverages for immediate service and consumption and other incidental retail items from any vehicle as defined in section 28-101.
"Mobile food vendor" means any person who owns, controls, manages or leases a mobile food unit or contracts with a person to prepare foods and vend from, drive or operate a mobile food unit.

§ 9-485.01 Mobile food vendors; mobile food units; operation

A. In relation to a mobile food vendor or mobile food unit, a city or town by ordinance or resolution may:

Prohibit or restrict a mobile food vendor from operating at a public airport or public transit facility, in an area zoned for residential use or within two hundred fifty feet of an area zoned for residential use.
Continue to enact and enforce regulations and zoning codes on mobile food units or mobile food vendors that are not otherwise prohibited by law.

B. In relation to a mobile food vendor or mobile food unit, a city or town may not:

Require a mobile food vendor, property owner or lessee of a property to apply for and receive any special permit that is not required for other temporary or mobile vending businesses in the same zoning district.
Require a mobile food vendor or mobile food unit to operate a specific distance from the perimeter of an existing commercial establishment or restaurant, except as required by applicable building, fire, street and sidewalk codes.
Prohibit or restrict a mobile food vendor or mobile food unit from using any legal parking space, including metered parking, except to restrict the number of spaces, vehicle size and parking duration and the ability to occupy sites with insufficient parking capacity as prescribed by a local zoning ordinance of the city or town or as otherwise prohibited by federal law.
Require a mobile food unit to be inspected by a city or town fire department before operation if the mobile food vendor provides evidence that the mobile food unit passed a fire inspection by another city or town fire department in this state within the preceding twelve months.

C. A city or town with a population of more than fifty thousand persons shall make available all applicable license applications in an electronic format that is available online and may not require a mobile food vendor to apply in person.

§ 9-485.02 Insurance requirement prohibited

A city or town may not require a mobile food vendor to maintain an insurance policy that names the city or town as an additional insured unless the mobile food vendor is attending an event sponsored by that city or town or is operating on public property, including the right-of-way or property owned by the city or town.

Article 8 Miscellaneous

§ 9-491 Unpaid license taxes; recovery

A. A city or town may maintain in its name a civil action to recover an unpaid license, business or occupation tax imposed by an ordinance of the city or town against a person liable for the payment thereof.

B. It is not a defense to the action that a person otherwise liable for the tax has not applied for or obtained the issuance of the license prescribed, nor shall the action abate by reason of the pendency of, or judgment in, a criminal prosecution for failure to pay the tax, or transacting business or doing any act without paying the tax or procuring a license.

§ 9-491.01 Additional business license; real estate broker or salesperson; prohibition

A city or town may not require a person to obtain an additional business license to do business within that city or town if the person is a real estate broker or salesperson licensed pursuant to title 32, chapter 20, article 2 and licensed to do business in the city or town in which the person's primary place of business is located.

§ 9-491.02 Business license; out-of-state businesses; prohibition

A city or town may not require a person to obtain a business license to conduct business with purchasers located in that city or town if the person is required to pay tax in this state only because the person's business exceeds the threshold provided in section 42-5043.

§ 9-492 Investment of sinking funds and surplus or idle funds of municipality

A. The governing body of a municipality may invest its sinking funds in United States, state, or county bonds or in bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks or the banks for cooperatives.

B. In addition to the provisions of subsection A of this section, the governing body of a municipality may invest its surplus or idle funds in United States treasury bills, notes or bonds which have a maturity date of not more than one year from the date of investment and in accounts of any savings and loan association insured by an agency of the government of the United States, up to the amount of such insurance.

C. In addition to the provisions of subsections A and B of this section, the governing body of a municipality may invest its surplus or idle funds in accordance with the procedures prescribed in section 35-323.01.

§ 9-493 Appropriation for advertising

A. Cities and towns with a population of more than sixty thousand persons according to the most recent United States decennial census may appropriate annually from the general fund an amount not to exceed two-tenths of one per cent of the assessed valuation of the city or town and cities and towns with a population of sixty thousand persons or less according to the most recent United States decennial census may appropriate annually from the general fund an amount not to exceed three-tenths of one per cent of the assessed valuation or in either case forty thousand dollars, whichever sum is the greater, for the purpose of encouraging immigration, new industries and investment in the city or town and for printing and distributing books, pamphlets and maps advertising the advantages of the city or town.

B. The governing body may pay the amount appropriated to the chamber of commerce, board of trade or other commercial organization of the city or town to be expended for the purposes enumerated in this section.

§ 9-494 Parks; tax for parks within reclamation projects

A. A city or town may establish and maintain public parks, and acquire, hold and improve real property for that purpose.

B. In a city or town lying within a reclamation project in which a park has been set aside under an act of Congress, a tax of not more than four-tenths mills on the dollar may be levied on all property by the city or town for the purpose of paying, or partly paying, the expenses of maintaining the park.

§ 9-495 Employees providing assistance; identification; communication; notice

A. In any written communication between a city or town and a person, the city or town shall provide the name, telephone number and email address of the employee who is authorized and able to provide information about the communication if the communication does any of the following:

Demands payment of a tax, fee, penalty, fine or assessment.
Denies an application for a permit or license that is issued by the city or town.
Requests corrections, revisions or additional information or materials needed for approval of any application for a permit, license or other authorization that is issued by the city or town.

B. An employee who is authorized and able to provide information about any communication that is described in subsection A of this section shall reply within five business days after the city or town receives that communication.

C. A city or town shall print a notice of the requirements of this section on all applications for a permit, license or other authorization that is issued by the city or town.

§ 9-496 Expenditures in federal areas

A. A city or town may expend public money in any area federally owned or controlled if it is determined by the governing body of the city or town that such expenditure is necessary for the health or safety of such city or town.

B. Before entering upon any expenditure in the area as provided in subsection A, a written agreement permitting the city or town to make the improvements or construct the works deemed necessary for the health or safety of the city or town shall be obtained by the city or town from the federal agency having legal control or ownership of the property upon which the improvement or works is to be made.

C. This section shall not be deemed to repeal or amend any existing law, the provisions of section 1-245 notwithstanding, nor shall this section or the application thereof be deemed to amend or repeal the general powers conferred by law upon cities and towns, but shall be in addition thereto.

§ 9-497 Authority to procure liability insurance covering officers, agents and employees

Cities and towns may expend public funds to procure liability insurance covering their officers, agents, and employees while employed in governmental or proprietary capacities.

§ 9-498 Authority for county to furnish services to city or town

The governing body of an incorporated city or town, and the county board of supervisors of the county in which such city or town is located, may enter into an agreement whereby:

The county shall furnish part-time or full-time police protection to persons and property within the boundaries of such city or town, or any part thereof, as provided for in the agreement.
The incorporated city or town that contracts for and receives any of the services provided under the provisions of paragraph 1 shall pay to the county the amount agreed to be paid to the county for furnishing such services.

§ 9-499 Removal of rubbish, trash, weeds, filth, debris and dilapidated buildings; removal by city; costs assessed; collection; priority of assessment; responsibility of payment; definitions

A. The governing body of a city or town, by ordinance, shall compel the owner, lessee or occupant of property to remove from the property and its contiguous sidewalks, streets and alleys any rubbish, trash, weeds or other accumulation of filth, debris or dilapidated buildings that constitute a hazard to public health and safety. An ordinance shall require:

Written notice to the owner, the owner's authorized agent or the owner's statutory agent and to the occupant or lessee. The notice shall be served either by personal service or by certified mail. If notice is served by certified mail, the notice shall be mailed to the last known address of the owner, the owner's authorized agent or the owner's statutory agent and to the address to which the tax bill for the property was last mailed. The notice shall be given not less than thirty days before the day set for compliance and shall include the legal description of the property and the cost of such removal to the city or town if the owner, occupant or lessee does not comply. The owner shall be given not less than thirty days to comply. The city or town may record the notice in the county recorder's office in the county in which the property is located. If the notice is recorded and compliance with the notice is subsequently satisfied, the city or town shall record a release of the notice.
Provisions for appeal on both the notice and the assessments, unless the removal or abatement is ordered by a court.
That any person that recklessly places or causes to be placed any rubbish, trash, filth or debris on any property not owned or under the control of that person:

(a) Is guilty of a class 1 misdemeanor or a civil violation unless that person immediately removes or causes to be removed the rubbish, trash, filth or debris from that property. One hundred percent of any assessed fine or civil penalty shall be deposited in the general fund of the city or town in which the fine or civil penalty was assessed. At least fifty percent of the fine or civil penalty shall be used by the city or town for the purposes of illegal dumping cleanup.

(b) In addition to any fine or penalty imposed for a violation of this section, is liable for all costs that may be assessed pursuant to this section for removing, abating or enjoining the rubbish, trash, filth or debris and for all costs incurred by the owner, lessee, occupant or lienholder of the property in the removal and disposal of the rubbish, trash, filth or debris.

(c) If required to remove any rubbish, trash, filth or debris pursuant to this section, shall provide the city or town with a receipt from a disposal facility or other documentation evidencing lawful disposal of the rubbish, trash, filth or debris.

B. Any person that places or causes to be placed any rubbish, trash, filth or debris on any property that is more than forty acres in size and that is not owned or under the control of that person retains ownership of the rubbish, trash, filth or debris until the person lawfully disposes of the rubbish, trash, filth or debris.

C. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant, after notice as required by subsection A, paragraph 1 of this section does not remove or cause to be removed the rubbish, trash, weeds, filth, debris or dilapidated buildings and abate the condition that constitutes a hazard to public health and safety, the city or town may remove, abate, enjoin or cause their removal.

D. The governing body of the city or town may prescribe by ordinance a procedure for the removal or abatement, and for making the actual cost of the removal or abatement, including the actual costs of any additional inspection and other incidental connected costs, an assessment on the property from which the rubbish, trash, weeds, buildings or other accumulations are removed or abated.

E. The ordinance may provide that the cost of removal, abatement or injunction of the rubbish, trash, weeds, filth, debris or dilapidated buildings from any property, and associated legal costs for abatement or injunctions, shall be assessed on the property from which the rubbish, trash, weeds, accumulations or dilapidated buildings are removed, abated or enjoined. The city or town may record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment, the legal description of the property and the name of the city or town imposing the assessment. Any assessment recorded after July 15, 1996 is prior and superior to all other liens, obligations, mortgages or other encumbrances, except liens for general taxes. A sale of the property to satisfy an assessment obtained under this section shall be made on judgment of foreclosure and order of sale. A city or town shall have the right to bring an action to enforce the assessment in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the assessment by such action shall not affect its validity. The recorded assessment is prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings before the recording of the assessment. The assessment provided for in this subsection shall not be levied against state or federal property.

F. Assessments that are imposed under this section run against the property until paid and are due and payable in equal annual installments as follows:

Assessments of less than $500 shall be paid within one year after the assessment is recorded.
Assessments of $500 or more but less than $1,000 shall be paid within two years after the assessment is recorded.
Assessments of $1,000 or more but less than $5,000 shall be paid within three years after the assessment is recorded.
Assessments of $5,000 or more but less than $10,000 shall be paid within six years after the assessment is recorded.
Assessments of $10,000 or more shall be paid within ten years after the assessment is recorded.

G. An assessment that is past due accrues interest at the rate prescribed by section 44-1201.

H. A prior assessment for the purposes provided in this section shall not be a bar to a subsequent assessment or assessments for these purposes, and any number of assessments on the same property may be enforced in the same action.

I. This section applies to all cities and towns organized and operating under the general law of this state, and cities and towns organized and operating under a special act or charter.

J. Notwithstanding subsection F of this section, for residential property of four or fewer units, a city or town may not require payment of the assessments imposed under this section by the homeowner if the property was serving as a rental and had a tenant during the time of the removal of the rubbish, trash, filth or debris.

K. The governing body of a city or town may not impose a fine, penalty or assessment for a violation of this section until the notice requirement of subsection A, paragraph 1 of this section has been met and the time to request an appeal of the notice and the assessment as required pursuant to subsection A, paragraph 2 of this section has elapsed.

L. For the purposes of this section:

"Dilapidated building" means any real property structure that is likely to burn or collapse and its condition endangers the life, health, safety or property of the public.
Owner does not include a state or federal landowner.
"Property" includes real property and structures on the real property.

§ 9-499.01 Powers of charter and general law cities

Charter cities and general law cities, whether incorporated as cities pursuant to section 9-101 or having assumed a city organization pursuant to section 9-271, shall be vested with all the powers of incorporated towns as set forth in this title, in addition to all powers vested in them pursuant to their respective charters, or other provisions of law relating to cities and towns.

§ 9-499.02 Standards for curb ramps

A. The standard for construction of curbs on each side of any city or town street, or any connecting street or road for which curbs have been prescribed by the governing body of the city or town having jurisdiction thereover, shall be not less than two ramps per lineal block at the crosswalks at intersections. At the option of the city or town, such ramps may have a two foot exposed aggregate strip adjacent to the gutter. Such ramps shall comply with the Americans with disabilities act of 1990 (42 United States Code sections 12101 through 12213).

B. Standards set for ramps or curbs under subsection A shall not apply to any ramp or curb existing on June 12, 1975 but shall apply to all new ramp or curb construction and to all replacement ramps or curbs constructed at any point in a block which gives reasonable access to a crosswalk.

§ 9-499.03 Participation in medical clinics

The governing body of an incorporated city or town may establish, maintain and operate medical clinics as defined in title 36, chapter 24, article 1.

§ 9-499.04 Animal control officers; appointment; authority; regulation of dogs; powers and duties

A. Any city and town may by ordinance provide for the appointment of animal control officers who may commence an action or proceeding before a court for any violation of a state statute or local ordinance relating to rabies and animal control that occurs within the jurisdiction of the city or town.

B. An animal control officer appointed pursuant to subsection A of this section shall:

Be unarmed during the course of duties except that a small caliber firearm may be available to be used in controlling vicious animals or in dispatching of a wounded animal. For the purposes of this paragraph, "small caliber firearm" means a rifle or pistol utilizing a rimfire cartridge with a caliber not to exceed twenty-two hundredths of an inch and with a non-richocheting bullet or a shotgun whose bore size does not exceed forty-one hundredths of an inch.
Be an employee of the appointing city or town.

C. A city or town may regulate the control of dogs if the regulation is not specific to any breed.

D. Subsection B of this section does not grant other powers or benefits to animal control officers to which peace officers of this state are entitled.

§ 9-499.05 Authority to set rates for private towing carrier; notice of parking violations; violation; classification; definition

A. The governing body of an incorporated city or town may regulate the maximum rate and charge for towing, transporting or impounding a motor vehicle from private property without the permission of the owner or operator of the vehicle by any private towing carriers doing business within its boundaries. A private towing carrier is subject to the maximum rate and charge regulation prescribed by the city or town for all such towing, transporting or impounding services if the vehicle being towed or transported is towed from private property located within the boundaries of the city or town.

B. The owner or agent of the owner of the private property shall be deemed to have given consent to unrestricted parking by the general public in any parking area of the private property unless such parking area is posted with signs as prescribed by this subsection which are clearly visible and readable from any point within the parking area and at each entrance. Such signs shall contain, at a minimum, the following:

Restrictions on parking.
Disposition of vehicles found in violation of the parking restrictions.
Maximum cost to the violator, including storage fees and any other charges that could result from the disposition of a vehicle parked in violation of parking restrictions.
Telephone number and address where the violator can locate the violator's vehicle.

C. It is unlawful for a private towing carrier to tow or transport a motor vehicle from private property without the permission of the owner or operator of the motor vehicle unless such private towing carrier receives a request from a law enforcement agency or the express written permission from the owner or the agent of the owner of the property that has complied with the requirements of subsection B. The owner or the owner's agent shall either sign each towing order or authorize the tow by a written contract which is valid for a specific length of time. The private towing carrier may not act as the agent of the owner.

D. A person who violates subsection C is guilty of a class 2 misdemeanor.

E. This section shall apply only to services performed while a person is actually engaged in the activities of a private towing carrier.

F. The provisions of this section do not apply to abandoned or junk vehicles disposed of pursuant to title 28, chapter 11.

G. For the purposes of this section, "private towing carrier" means any person who commercially offers services to tow, transport or impound motor vehicles from private property without the permission of the owner or operator of the vehicle by use of a truck or other vehicle designed for or adapted to that purpose.

§ 9-499.06 Fire insurance premium tax revenues; cities and towns and fire districts utilizing private fire companies

Monies received pursuant to sections 9-951 and 9-952 by a city or town or legally organized fire district which procures the services of a private fire company shall be deposited in the city or town general fund or, in the case of a fire district, in the fire fighters' relief and pension fund for the purpose of providing fire protection services.

§ 9-499.07 Prisoner work, community restitution work and home detention program; eligibility; monitoring; procedures; continuous alcohol monitoring program; home detention for persons sentenced for driving under the influence of alcohol or drugs

A. A city or town may establish a prisoner work, community restitution work and home detention program for eligible sentenced prisoners, which shall be treated the same as confinement in jail. The presiding judge of the city or town municipal court shall approve the program before its implementation.

B. A prisoner is not eligible for a prisoner work, community restitution work and home detention program or a continuous alcohol monitoring program if any of the following applies:

The prisoner is found by the city or town to constitute a risk to either himself or other members of the community.
The prisoner has a past history of violent behavior.
The sentencing judge states at the time of the sentence that the prisoner may not be eligible for a prisoner work, community restitution work and home detention program or a continuous alcohol monitoring program.

C. For prisoners who are selected for a program established pursuant to subsection A of this section, the city or town may require electronic monitoring in the prisoner's home whenever the prisoner is not at the prisoner's regular place of employment or while the prisoner is assigned to a community work task. If electronic monitoring is required, the prisoner shall remain under the control of a home detention device that constantly monitors the prisoner's location in order to determine that the prisoner has not left the prisoner's premises. In all other cases, the city or town shall implement a system of monitoring using telephone contact or other appropriate methods to assure compliance with the home detention requirements. The city or town may place appropriate restrictions on prisoners in the program, including testing prisoners for consumption of alcoholic beverages or drugs or prohibiting association with individuals who are determined to be detrimental to the prisoner's successful participation in the program.

D. If a prisoner is placed on electronic monitoring pursuant to subsection C of this section, the court may order the prisoner to pay the electronic monitoring fee in an amount ranging from zero to full cost and thirty dollars per month while on electronic monitoring unless, after determining the inability of the prisoner to pay these fees, the city or town assesses a lesser fee. The city or town shall use the fees collected to offset operational costs of the program.

E. The city or town may require that a prisoner who is employed during the week also participate in community restitution work programs on weekends.

F. The city or town may allow prisoners to be away from home detention for special purposes, including church attendance, medical appointments or funerals.

G. Community restitution work shall include public works projects operated and supervised by the city or town or other public agencies of this state or projects sponsored and supervised by public or private community oriented organizations and agencies.

H. A city or town implementing a program established pursuant to subsection A of this section may appoint a community restitution work committee. The committee shall recommend to the city or town appropriate community restitution work projects for home detention prisoners. Members are not eligible to receive compensation.

I. At any time the city or town may terminate a prisoner's participation in the prisoner work, community restitution work and home detention program or continuous alcohol monitoring program and require that the prisoner complete the remaining term of the prisoner's sentence in jail confinement.

J. Nothing in this section shall prohibit a city or town from entering into a joint exercise of powers agreement pursuant to section 11-952 for a prisoner work, community restitution work and home detention program.

K. If authorized by the court, a person who is sentenced pursuant to section 28-1381 or 28-1382 shall not be placed under home detention in a prisoner work, community restitution work and home detention program or continuous alcohol monitoring program except as provided in subsections L through R of this section.

L. By a majority vote of the full membership of the governing body of the municipality after a public hearing and a finding of necessity, a city or town may establish a home detention program for persons who are sentenced to jail confinement pursuant to section 28-1381 or 28-1382. A prisoner who is placed under the program established pursuant to this subsection shall bear the cost of all testing, monitoring and enrollment in alcohol or substance abuse programs unless, after determining the inability of the prisoner to pay the cost, the court assesses a lesser amount. The city or town shall use the collected monies to offset operational costs of the program.

M. A city or town may establish a continuous alcohol monitoring program for persons who are sentenced to jail confinement pursuant to section 28-1381 or 28-1382, which shall be treated the same as confinement in jail. The presiding judge of the city or town municipal court shall approve the program before its implementation. A prisoner who is placed under a continuous alcohol monitoring program established pursuant to this subsection shall bear the cost of all testing, monitoring and enrollment in the program and pay thirty dollars per month while in the program, unless, after determining the inability of the prisoner to pay the cost, the court assesses a lesser amount. The city or town shall use the collected monies to offset operational costs of the program.

N. If the city or town establishes a home detention or continuous alcohol monitoring program under subsection L or M of this section, a prisoner must meet the following eligibility requirements for the program:

Subsection B of this section applies in determining eligibility for the program.
If the prisoner is sentenced under section 28-1381, subsection I, the prisoner first serves a minimum of one day in jail.
Notwithstanding section 28-1387, subsection C, if the prisoner is sentenced under section 28-1381, subsection K or section 28-1382, subsection D or E, the prisoner first serves a minimum of twenty per cent of the initial term of incarceration in jail before being placed under home detention or continuous alcohol monitoring.
If placed under home detention, the prisoner is required to comply with all of the following provisions for the duration of the prisoner's participation in the home detention program:

(a) All of the provisions of subsections C through G of this section.

(b) Testing at least once a day for the use of alcoholic beverages or drugs by a scientific method that is not limited to urinalysis or a breath or intoxication test in the prisoner's home or at the office of a person designated by the court to conduct these tests.

(c) Participation in an alcohol or drug program, or both. These programs shall be accredited by the department of health services or a county probation department.

(d) Prohibition of association with any individual determined to be detrimental to the prisoner's successful participation in the program.

(e) All other provisions of the sentence imposed.

Any additional eligibility criteria that the city or town may impose.

O. If a city or town establishes a home detention program under subsection L of this section, the court, on placing the prisoner in the program, shall require electronic monitoring in the prisoner's home and, if consecutive hours of jail time are ordered, shall require the prisoner to remain at home during the consecutive hours ordered. The detention device shall constantly monitor the prisoner's location to ensure that the prisoner does not leave the premises. Nothing in this subsection shall be deemed to waive the minimum jail confinement requirements under subsection N, paragraph 2 of this section.

P. The court may terminate a prisoner's participation in the home detention or continuous alcohol monitoring program and require the prisoner to complete the remaining term of the jail sentence by jail confinement if:

The prisoner fails to successfully complete a court ordered alcohol or drug screening, counseling, education and treatment program pursuant to subsection N, paragraph 4, subdivision (c) of this section or section 28-1381, subsection J or L.
If placed under home detention, the court finds that the prisoner left the premises without permission of the court or supervising authority during a time the prisoner is ordered to be on the premises.

Q. At any other time the court may terminate a prisoner's participation in the home detention or continuous alcohol monitoring program and require the prisoner to complete the remaining term of the jail sentence by jail confinement.

R. The governing body of the city or town may terminate the program established under subsection L of this section by a majority vote of the full membership of the governing body.

§ 9-499.08 Ability to build, finance and operate toll roads

Notwithstanding section 28-6805, subsection C, a city or town may construct, operate and finance the construction of toll roads within the corporate limits of the city or town.

§ 9-499.09 Indigent defendants; appointment of counsel; fee

A. The municipal court shall appoint legal counsel to represent indigent defendants pursuant to the Arizona rules of criminal procedure. In addition to court appointed attorney reimbursement costs, the court may order an indigent administrative assessment fee in an amount not to exceed twenty-five dollars.

B. Administrative assessment fees collected pursuant to subsection A shall be paid into the general fund of the city or town where the municipal court is located and used to defray the costs of court appointed counsel.

§ 9-499.10 Infill incentive districts

A. The governing body of a city or town may designate an infill incentive district in an area in the city or town that meets at least three of the following requirements:

There is a large number of vacant older or dilapidated buildings or structures.
There is a large number of vacant or underused parcels of property, obsolete or inappropriate lot or parcel sizes or environmentally contaminated sites.
There is a large number of buildings or other places where nuisances exist or occur.
There is an absence of development and investment activity compared to other areas in the city or town.
There is a high occurrence of crime.
There is a continuing decline in population.

B. If the governing body establishes an infill incentive district, it shall adopt an infill incentive plan to encourage redevelopment in the district. The plan may include:

Expedited zoning or rezoning procedures.
Expedited processing of plans and proposals.
Waivers of municipal fees for development activities as long as the waivers are not funded by other development fees.
Relief from development standards.

§ 9-499.11 Lighting standards for municipal buildings; life cycle costing; evaluation standards; shielding

A. A city or town with a population of fifty thousand or more persons shall provide for efficient and effective lighting systems for new construction and major renovations of municipal buildings, structures, facilities and areas as determined by an evaluation based on the illuminating engineering society of north America lighting handbook and recommended practices.

B. Life cycle costs as defined in section 34-454 shall be used to evaluate the design, equipment and materials that are considered pursuant to subsection A of this section.

C. All outdoor light fixtures that are owned and operated by a city or town and that are subject to the requirements of subsection A of this section shall be fully shielded as defined in section 49-1101, except that outdoor light fixtures for a municipal recreational area or municipal sports facility shall be fully or partially shielded as defined in section 49-1101. This subsection does not apply to those outdoor light fixtures that are not required to be shielded pursuant to section 49-1102.

§ 9-499.12 Municipal social workers; exemption

A person who is employed by a municipality of this state and who in the course of that employment engages in the practice of social work but who does not treat mental or emotional disorders and who does not assess, appraise, diagnose, evaluate or treat individuals, families or groups through the use of psychotherapy is exempt from the requirements of title 32, chapter 33.

§ 9-499.13 Sign walkers; regulation; exception; definition

A. From and after December 31, 2008, notwithstanding the authority to regulate signs pursuant to section 9-462.01, and as a matter of statewide concern, all municipalities shall allow the posting, display and use of sign walkers. Except as provided by subsection B of this section, municipalities may adopt reasonable time, place and manner regulations relating to sign walkers.

B. A municipality that adopts reasonable time, place and manner regulations relating to sign walkers may not restrict a sign walker from using a public sidewalk, walkway or pedestrian thoroughfare.

C. This section may be enforced in a private civil action and relief, including an injunction, may be awarded against a municipality. The court shall award reasonable attorney fees to a party that prevails in an action against a municipality for a violation of this section.

D. For the purposes of this section, "sign walker" means a person who wears, holds or balances a sign.

§ 9-499.14 Renewable energy incentive districts; definition

A. The governing body of a city or town may designate a renewable energy incentive district in an area in the city or town if all of the following apply:

The proposed district consists of a vacant or underused parcel or parcels of property, or any other parcel or parcels of property the governing body deems suitable for renewable energy and storage equipment, that are appropriate sizes for the construction and operation of renewable energy and storage equipment. The governing body may designate portions of land or noncontiguous portions of land as a renewable energy incentive district or districts.
The proposed district is located within an area of the city or town so that the construction and operation of renewable energy and storage equipment would not be incompatible with other uses of property in the area considering factors relating to the construction and operation of renewable energy and storage equipment, including:

(a) The ability to adequately buffer the district from surrounding incompatible uses.

(b) The noise level emanating from the district alone and in relation to ambient noise levels at the perimeter of the property falling within the proposed district and relative to other adjacent lands.

(c) The extent to which the district would be located in proximity to existing transportation and electrical transmission corridors.

(d) Compatibility with commercial and military air space requirements.

The governing body has evaluated the extent to which the proposed district is consistent with the existing general plan and has determined that the proposed district does not conflict with the plan. The governing body may determine that the district is not a major amendment to the general plan pursuant to section 9-461.06.

B. If the governing body establishes a renewable energy incentive district, it shall adopt a renewable energy incentive plan to encourage the construction and operation of renewable energy and storage equipment in the district. The plan may include:

Expedited zoning or rezoning procedures.
Expedited processing of plans, proposals and permits.
Waivers or abatement of zoning fees, processing fees, and improvement district fees and assessments for development activities.
Waiver or abatement of development standards and procedural requirements.

C. For the purposes of this section, "renewable energy and storage equipment" has the same meaning prescribed in section 42-14155.

§ 9-499.15 Proposed new or increased municipal taxes and fees; notification; exceptions

A. A municipality may not levy or assess any new taxes or fees or increase existing taxes or fees pursuant to statute on a business without complying with this section.

B. A municipality that proposes to levy or assess a tax or fee shall:

Prepare a schedule of the proposed new or increased tax or fee that includes the amount of the tax or fee and a written report or data that supports the new or increased tax or fee. A copy of the report or data shall be filed in the office of the clerk of the municipality.
If the proposed tax or fee is a new charge, provide written notice of the proposed charge, the schedule of the proposed new charge and the written report or data that supports the new charge on the home page of the municipality's website at least sixty days before the date the proposed new tax or fee is approved or rejected by the governing body of the municipality.
If the municipality proposes to increase the rate of an existing tax or fee on a business, provide written notice of the proposed increase, the schedule of the proposed increased tax or fee and the written report or data that supports the proposed increased tax or fee on the home page of the municipality's website at least sixty days before the date the proposed new rate is approved or rejected by the governing body of the municipality.
Prepare a notice of intent to establish or increase taxes, assessments or fees including assessments levied pursuant to section 48-572, subsection B, paragraph 2. The notice of intent shall include the date, time and place of the meeting of the governing body of the municipality in which the proposed new or increased tax or fee will be considered and a statement that a schedule of the proposed new or increased tax or fee that includes the amount of the tax or fee and a written report or data that supports the new or increased tax or fee is available on the municipality's website. The notice of intent shall be posted on the municipality's website at least fifteen days before the date the proposed new or increased tax or fee will be approved or rejected by the governing body of the municipality. If the municipality uses social media or other electronic communication tools, the notice of intent shall be distributed through the municipality's social media accounts or other electronic communication tools.

C. At least seventy-five days before the date a municipality proposes an ordinance to adopt or repeal a model or local option in the model city tax code, the municipality shall request from the department of revenue a list of all taxpayers within the municipality in the affected tax classification. At least sixty days before the date the proposed ordinance is approved or rejected by the governing body of the municipality, the municipality shall notify by mail all taxpayers in the affected tax classification of the proposed ordinance.

D. Subsection C of this section does not apply to ordinances that do either of the following:

Impose a use tax or a model or local option to exempt a city or town from use tax.
Impose a two-tiered tax rate structure for retail sales.

E. All departments, boards or other subdivisions of a municipality that are authorized to establish or modify taxes or fees shall follow the notice requirements prescribed in subsection B of this section before the date of the entity's consideration of the new or increased tax or fee.

F. Technological issues that either prevent the posting of the notice on the municipality's website or distribution of the notice through social media or other electronic communication tools do not preclude the governing body of the municipality from approving or rejecting the new or increased tax or fee at the meeting provided on the notice of intent.

G. A municipality shall demonstrate that the taxes or fees are imposed pursuant to statute.

H. Subsections A and B of this section do not apply to:

Any fee adopted pursuant to section 9-463.05.
Water and wastewater rates or rate components.
Fees for registration-based classes, programs or activities provided by the municipality.
Court fees established pursuant to state law.
Fees or charges established pursuant to federal law for public housing or other federally funded programs.
Other fees whose amounts are set by state or federal law.

I. If information is made available relating to the fees provided in subsection H of this section, that information shall be posted on the municipality's website and, if the municipality uses social media or other electronic communication tools, distributed through social media or other electronic communication tools.

J. In addition to any other limitation that may be imposed by law, a municipality shall not levy or impose an assessment, fee or tax on hospital revenues, discharges, beds or services for the purpose of receiving services or payments pursuant to title 36, chapter 29.

§ 9-499.16 Energy and water savings accounts

A. The governing body of a city or town may establish an energy and water savings account that consists of a designated pool of capital investment monies to fund energy or water savings projects in public facilities. A city or town may deposit in the account monies generated from the energy or water savings projects or measures implemented in public facilities. A city or town may use monies in the energy and water savings account for payments under a contract entered into pursuant to section 34-105.

B. A city or town shall use monies deposited in an energy and water savings account as a designated pool of capital investment monies to pay for the incremental cost of energy or water savings measures in facilities that are owned by the city or town. Any contract that is entered into pursuant to this section shall contain an agreement between the qualified provider and the energy or water services company that both parties have performed a reasonable investigation to determine that the measures contemplated by the contract will result in stated energy or water savings. Contract terms shall not exceed twenty-five years.

C. A city or town shall use expenditures from an energy and water savings account only for the following:

Projects or measures pursuant to a contract pursuant to this section or section 34-105 that save energy or water in facilities that are owned by the city or town. Monies may be used pursuant to this paragraph to provide technical assistance regarding energy or water savings to cities or towns by a qualified provider or energy or water services company.
Payment of principal, interest, related financing costs and prepayment premiums.

D. Before the implementation of the energy or water savings measures or services, the qualified provider or energy or water services company shall compute, and the city or town shall review and approve, the estimated amount of the energy or water savings and the associated impact on energy, water or other costs and revenue to be achieved by the city or town on an annual and monthly basis over the term of the contract and shall include these estimates in the contract. The qualified provider and the city or town shall update the annual and monthly energy or water savings and associated cost impact estimates annually based on actual experience for the term of the contract.

E. Before the implementation of the energy or water savings measures or services, the qualified provider or financial institution, trustee or paying agent and the city or town shall jointly develop a schedule of monthly or another mutually agreed on interval of payments for the repayment of capital investment monies. The repayment schedule must result in lower energy, water or other costs or increased revenue, which shall include the total cost of all the installed energy or water savings measures for the city or town over the term of the contract, which shall not exceed twenty-five years. The repayment schedule shall be included in the contract.

F. The city or town shall transfer the amount of the payment prescribed pursuant to subsection E of this section to the energy and water savings account from the maintenance and operation portion of the city's or town's budget to repay any unpaid balance of the capital investment previously deposited in the energy and water savings account from the qualified provider or energy or water services company plus a reasonable interest rate. For the period of time that the company's capital investment monies and reasonable interest rate remain unpaid, the qualified provider or energy or water services company shall provide a separate billing or billing component to repay the capital investment pursuant to the repayment schedule prescribed pursuant to subsection E of this section, which shall be paid by the city or town from the energy and water savings account.

G. After the balance of the qualified provider's or energy or water services company's capital investment monies deposited in the energy and water savings account plus a reasonable interest rate are repaid in full by the city or town, the city or town may discontinue the deposit in the energy and water savings account of amounts that are prescribed in subsection F of this section.

H. After the capital investment monies of the qualified provider or energy or water services company plus a reasonable interest rate are repaid in full, any monies associated with an energy or water savings project remaining in the energy and water savings account may be transferred to the maintenance and operation portion of the city's or town's budget.

I. A city or town may deposit energy-related rebate or grant monies in the energy and water savings account to assist in funding energy or water savings projects. A city or town may use these rebate or grant monies to reduce the total cost of energy or water savings projects and to reduce the amount of capital investment monies received from and repaid to energy or water services companies. A city or town is not required to repay the rebate or grant monies in the manner described in subsection F of this section pursuant to the agreements with the providers of rebate or grant funds.

J. A city or town may deposit monies from other funding sources in the energy and water savings account to fund energy or water saving projects in public facilities. These monies shall be repaid in a manner consistent with this section and pursuant to the contract between the city or town and the provider of the funding.

K. This section does not impose an obligation on any energy utility, water utility, public service corporation or agricultural improvement district to invest monies or contract with any city or town.

§ 9-499.17 Prohibition on municipal taxes and fees

Except for a municipality that, before December 31, 2013, has adopted an ordinance requiring property owners to obtain fire prevention and control services and except as provided in this title and titles 35 and 42, a municipality may not levy or assess a municipality-wide tax or fee against property owners based on the size or value of the owner's real property or improvements to real property for any public service provided by the municipality.

§ 9-499.18 Transportation safety zones; passenger convenience areas; definitions

A. A city or town may adopt a resolution or ordinance establishing passenger convenience areas and vehicle for hire lanes within a transportation safety zone. The governing body of a city or town may adopt resolutions or ordinances establishing hours of operation and procedures for the use of passenger convenience areas and vehicle for hire lanes.

B. The governing body of a city or town may establish, by resolution or ordinance, a transportation safety zone, if the governing body finds that a transportation safety zone is necessary to preserve the public health, safety and general welfare. A resolution or ordinance adopted pursuant to this subsection must include a map establishing the boundaries of the zone and traffic safety data used to justify the establishment of the zone. Each transportation safety zone must be no greater than three square miles, and a city or town may not create more than two transportation safety zones within its corporate boundaries. A transportation safety zone may not include any portion of a state highway or state route.

C. On establishment of a transportation safety zone, the city or town may place and maintain permanently affixed signs located in a visible manner at the public vehicular access points leading into the zone for the purpose of delineating the boundaries of the zone.

D. A city or town with a transportation safety zone may require a vehicle that is self-propelled entirely or partially by pedals operated by the passengers to operate pursuant to public safety and traffic ordinances.

E. Except in the event of a public safety emergency, a city or town may not prescribe the order in which a vehicle may load or unload passengers in a transportation safety zone. This subsection does not interfere with or restrict the ability of a city or town to regulate the flow of traffic or enforce any state law.

F. This section does not impose or authorize additional regulation, permitting or licensing requirements beyond those required by this section and title 28, chapter 30.

G. Drivers shall not leave vehicles unattended in a passenger convenience area.

H. For the purposes of this section:

"Passenger cart" means any motorized vehicle, except a bus, that is used to transport passengers on a public roadway in exchange for any form of payment or gratuity and that is not a vehicle for hire as defined in section 28-9501.
"Passenger convenience area" means an area designated by a city or town where taxis, passenger carts, livery vehicles or limousines may enter for the purpose of the loading and unloading of passengers.
"Vehicle for hire lane" means a designated traffic lane for use exclusively by vehicles picking up or dropping off passengers in exchange for any form of payment, including a fee, fare, donation or gratuity.

§ 9-500 Authority for providing for tax deferred annuity and deferred compensation plans for employees

A. The governing body of a city or town may provide through ordinance or resolution a plan or plans for their employees which provide tax deferred annuity and deferred compensation plans as authorized pursuant to title 26, United States Code Annotated.

B. Such plans shall be established to allow voluntary participation by all employees of a city or town.

C. Participating employees shall authorize the city or town to make reductions in their remuneration as provided in an executed deferred compensation agreement.

§ 9-500.01 Arson investigators; duties; powers; limitation

A. The governing body of a city or town may provide by ordinance that certain members of a fire department designated by such city or town are arson investigators. Such ordinance shall provide that the primary duty of arson investigators is the investigation, detection and apprehension of persons who have violated or are suspected of violating any provision of title 13, chapter 17.

B. A person appointed pursuant to the provisions of subsection A while engaged in arson investigation in this state possesses and may exercise law enforcement powers of peace officers of this state.

C. This section does not grant any powers of peace officers of this state to arson investigators other than those necessary for the investigation, detection and apprehension authority under subsection A.

D. Any individual designated as an arson investigator shall have law enforcement training under the provisions of section 41-1822.

§ 9-500.02 Emergency medical aid; assistance to other public bodies; limitation on liability

A. A city or town or its officers and employees, a private fire or ambulance company whose services are procured by a city or town or its officers and employees, a property owner or its officers or employees, a tenant or a licensed health care provider as defined in section 12-561 or an emergency medical care technician certified pursuant to title 36, chapter 21.1 who performs emergency medical aid, when rendering emergency medical aid provided by an emergency medical care technician, and who is certified by the director of the department of health services pursuant to section 36-2205, is not liable for civil or other damages to the recipient of the emergency medical aid as the result of any act or omission in rendering such aid or as the result of any act or failure to act to provide or arrange for further medical treatment or care for the sick or injured person. This subsection does not apply if the person providing emergency medical aid is guilty of gross negligence or intentional misconduct. The immunity provided for in this subsection does not extend to an emergency medical care technician while operating a motor vehicle.

B. A city or town, an employee of a city or town or a licensed health care provider if requested by a public body to assist at a traffic accident on a public right-of-way or to render emergency aid at an emergency occurrence outside of the corporate limits of such city or town is not liable for any civil or other damages as the result of any act or omission by the city or town or an employee of the city or town at the traffic accident, rendering emergency care or as the result of any act or failure to act to provide or arrange for further medical treatment or care for an injured person. This subsection does not apply if the city or town, an employee of the city or town or a licensed health care provider, while providing assistance at such a traffic accident, rendering such emergency care or acting or failing to act to provide such further medical treatment or care, is guilty of gross negligence.

C. This section does not abrogate the right of an employee who is injured while performing services as provided in subsection A of this section to recover benefits for which the employee may be eligible under title 23, chapter 6 from the city or town.

D. This section does not limit a plaintiff's right to recover civil damages from any applicable uninsured motorist coverage or underinsured motorist coverage.

E. This section does not apply to services provided in an emergency room.

F. This section applies to all actions brought under sections 46-455 and 46-456, regardless of whether the action is brought by the recipient of the emergency medical aid or by some other authorized person, organization or governmental entity.

§ 9-500.03 Maintenance and protection of parks; park rangers

A. A city or town may appoint park rangers.

B. A park ranger may be empowered to issue citations for violations of ordinances and park rules and regulations.

C. Nothing in this section shall be construed to grant park rangers other powers or benefits to which peace officers are entitled.

§ 9-500.04 Air quality control; definitions

A. The governing body of a city or town in area A or area B as defined in section 49-541 shall:

If the city has a population exceeding fifty thousand persons according to the 1995 special census, adjust the work hours of at least eighty-five per cent of municipal employees each year beginning October 1 and ending April 1 in order to reduce the level of carbon monoxide, ozone and particulate matter concentrations caused by vehicular travel.
In area A, in consultation with the designated metropolitan planning organization, synchronize traffic control signals on all existing and new roadways, within and across jurisdictional boundaries, that have average daily trips exceeding fifteen thousand motor vehicles per day.
In area A, beginning on January 1, 2008, develop and implement plans to stabilize targeted unpaved roads, alleys and unpaved shoulders on targeted arterials. The plans shall address the performance goals, the criteria for targeting the roads, alleys and shoulders, a schedule for implementation, funding options and reporting requirements. Priority shall be given to the following:

(a) Unpaved roads with more than one hundred average daily trips.

(b) Unpaved shoulders on arterial roads and other road segments where vehicle use on unpaved shoulders is evident or anticipated due to projected traffic volume.

In area A, acquire or utilize vacuum systems or other dust removal technology to reduce the particulates attributable to conventional crack sealing operations as existing equipment is retired.
In area A, in order to reduce particulate matter in ambient air:

(a) Beginning March 31, 2008, on any high pollution advisory day forecast by the department of environmental quality prohibit employees or contractors of that city or town from operating leaf blowers except while in vacuum mode and prohibit those employees or contractors from blowing landscape debris into public roadways at any time.

(b) No later than March 31, 2008, adopt, implement and enforce an ordinance that bans the blowing of landscape debris into public roadways at any time by any person.

In area A, no later than March 31, 2008, adopt or amend codes or ordinances and, no later than October 1, 2008, commence enforcement of those codes or ordinances as necessary to require that parking, maneuvering, ingress and egress areas at developments other than residential buildings with four or fewer units are maintained with one or more of the following dustproof paving methods:

(a) Asphaltic concrete.

(b) Cement concrete.

(d) A stabilization method approved by the city or town.

In area A, no later than March 31, 2008, adopt or amend codes or ordinances and, no later than October 1, 2009, commence enforcement of those codes or ordinances as necessary to require that parking, maneuvering, ingress and egress areas that are three thousand square feet or more in size at residential buildings with four or fewer units are maintained with a paving or stabilization method authorized by the city or town by code, ordinance or permit.
In area A, no later than March 31, 2008, adopt or amend codes or ordinances as necessary to restrict vehicle parking and use on unpaved or unstabilized vacant lots.
In area A, no later than March 31, 2008, require that new or renewed contracts for street sweeping on city streets must be conducted with street sweepers that meet the south coast air quality management district rule 1186 street sweeper certification specifications for pick up efficiency and PM-10 emissions in effect on January 1, 2007.
In area B, synchronize traffic control signals on all roadways that have average daily trips exceeding fifteen thousand motor vehicles per day.

B. The governing body of a city or town in area B as defined in section 49-541 may make and enforce ordinances to reduce or encourage the reduction of the commuter use of motor vehicles by employees of the city or town and employees whose place of employment is within the city or town.

C. Except as provided in subsection F of this section, the governing body of a city or town in area A as defined in section 49-541 in a county with a population of more than one million two hundred thousand persons according to the most recent United States decennial census shall develop and implement a vehicle fleet plan for the purpose of encouraging and progressively increasing the use of alternative fuels and clean burning fuels in city or town owned vehicles. The plan shall include a timetable for increasing the use of alternative fuels and clean burning fuels in fleet vehicles either through purchase or conversion.

D. The timetable shall reflect the following schedule and percentage of vehicles that operate on alternative fuels and clean burning fuels:

At least eighteen per cent of the total fleet by December 31, 1995.
At least twenty-five per cent of the total fleet by December 31, 1996.
At least fifty per cent of the total fleet by December 31, 1998.
At least seventy-five per cent of the total fleet by December 31, 2000 and each year thereafter.

E. The requirements of subsections C and D of this section may be waived on receipt of evidence acceptable to the city or town council that the city or town is unable to acquire or be provided equipment or refueling facilities necessary to operate vehicles using alternative fuels or clean burning fuels at a projected cost that is reasonably expected to result in net costs of no greater than ten per cent more than the net costs associated with the continued use of conventional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied. Applications for waivers shall be filed with the department of environmental quality pursuant to section 49-412. An entity that receives a waiver pursuant to this section shall retrofit fleet heavy duty diesel vehicles with a gross vehicle weight of eight thousand five hundred pounds or more, that were manufactured in or before model year 1993 and that are the subject of the waiver with a technology that is effective at reducing particulate matter emissions at least twenty five per cent or more and that has been approved by the United States environmental protection agency pursuant to the urban bus engine retrofit/rebuild program. The entity shall comply with the implementation schedule pursuant to section 49-555.

F. The plan prescribed by subsection C of this section shall include provisions for the use of alternative fuels and clean burning fuels in the bus fleet operated by that city or town or a regional public transportation authority, except that all newly purchased buses shall use alternative fuel or clean burning fuel. The bus fleet shall comply with the timetable prescribed by subsection D of this section, except that the requirements of subsections C and D of this section may be waived on receipt of certification supported by evidence acceptable to the department of environmental quality that the city or town is unable to acquire or be provided equipment or refueling facilities necessary to operate vehicles using alternative fuels or clean burning fuels at a projected cost that is reasonably expected to result in net costs of no greater than twenty per cent more than the net costs associated with the continued use of conventional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied.

G. If the requirements of subsections C, D and F of this section are met by the use of clean burning fuel, vehicle equivalents under those requirements shall be calculated as follows:

One vehicle equivalent for every four hundred fifty gallons of neat biodiesel or two thousand two hundred fifty gallons of a diesel fuel substitute prescribed in section 1-215, paragraph 7, subdivision (b).
One vehicle equivalent for every five hundred thirty gallons of the fuel prescribed in section 1-215, paragraph 7, subdivision (d).

H. Subsection A, paragraphs 5 through 8 of this section do not apply to any site that has a permit issued by a control officer as defined in section 49-471 for the control of fugitive dust from dust generating operations.

I. For the purposes of this section, "alternative fuel" and "clean burning fuel" have the same meanings prescribed in section 1-215.

§ 9-500.05 Development agreements; public safety; definitions

A. A municipality, by resolution or ordinance, may enter into development agreements relating to property in the municipality and to property located outside the incorporated area of the municipality. If the development agreement relates to property located outside the incorporated area of the municipality, the development agreement does not become operative unless annexation proceedings to annex the property to the municipality are completed within the period of time specified by the development agreement or any extension of such time.

B. A development agreement shall be consistent with the municipality's general plan or specific plan, if any, as defined in section 9-461, applicable to the property on the date the development agreement is executed.

C. A development agreement may be amended, or cancelled in whole or in part, by mutual consent of the parties to the development agreement or by their successors in interest or assigns.

D. No later than ten days after a municipality enters into a development agreement, the municipality shall record a copy of the agreement with the county recorder of the county in which the property subject to the development agreement is located, and the recordation constitutes notice of the development agreement to all persons. The burdens of the development agreement are binding on, and the benefits of the development agreement inure to, the parties to the agreement and to all their successors in interest and assigns.

E. Section 32-2181 does not apply to development agreements under this section.

F. Notwithstanding any other law, a municipality may provide by resolution or ordinance for public safety purposes, and with the written consent of an owner of property that has been granted a development agreement pursuant to this section, an owner of a protected development right pursuant to chapter 11 of this title or the owner of any other residential or commercial development subject to the supervision of a municipality pursuant to this title, for the application and enforcement of speed limits, vehicle weight restrictions or other safety measures on a private road that is located in any development in the municipality and that is open to and used by the public. A municipality may require payment from the property owner of the actual cost of signs for speed limits or other restrictions applicable on the private road, before their installation.

G. Notwithstanding section 19-142, subsection B, a decision by the governing body involving a development agreement may not be enacted as an emergency measure and that decision is not effective for at least thirty days after final approval of the development agreement.

H. In this section, unless the context otherwise requires:

"Development agreement" means an agreement between a municipality and a community facilities district pursuant to section 48-709, a landowner or any other person having an interest in real property that may specify or otherwise relate to any of the following:

(a) The duration of the development agreement.

(b) The permitted uses of property subject to the development agreement.

(d) Provisions for reservation or dedication of land for public purposes and provisions to protect environmentally sensitive lands.

(e) Provisions for preservation and restoration of historic structures.

(f) The phasing or time of construction or development on property subject to the development agreement.

(g) Conditions, terms, restrictions and requirements for public infrastructure and the financing of public infrastructure and subsequent reimbursements over time.

(h) Conditions, terms, restrictions and requirements for annexation of property by the municipality and the phasing or timing of annexation of property by the municipality.

(i) Conditions, terms, restrictions and requirements of deannexation of property from one municipality to another municipality and the phasing or timing of deannexation of property from one municipality to another municipality.

(j) Conditions, terms, restrictions and requirements relating to the governing body's intent to form a special taxing district pursuant to title 48.

(k) Any other matters relating to the development of the property.

"Governing body" means the body or board which by law is constituted as the legislative body of the municipality.
"Municipality" means an incorporated city or town.

§ 9-500.06 Hospitality industry; discrimination prohibited; use of tax proceeds; exemption; definitions

A. A city or town shall not discriminate against hospitality industry businesses in the collection of fees. For the purposes of this subsection:

"Discriminate" means any increase of fees on hospitality industry businesses by any dollar amount without a corresponding equal dollar amount of increase in the privilege license fees or other fees imposed on all other businesses in the city or town or increasing or imposing the fees on hospitality industry businesses where no similar fees are established and imposed on other businesses.
"Fees on hospitality industry businesses" means annual liquor license taxes or fees or annual renewal or reissuance fees for municipal business privilege licenses, however denominated.

B. A city or town shall not increase the fees on hospitality businesses in any year by an amount that exceeds the amount of any increase in the consumer price index compared to the average of the last five years of consumer price indexes.

C. On or after the effective date of this amendment to this section, if a city or town, by passing an ordinance or charter amendment by its governing council or by a public vote, establishes a discriminatory transaction privilege tax or increases its existing discriminatory transaction privilege tax on hospitality industry businesses greater than any increase imposed on other types of businesses in the city or town, the proceeds of the established discriminatory transaction privilege tax, except as provided in subsection D, and the proceeds of any increase above the existing discriminatory transaction privilege tax shall be used exclusively by the city or town for the promotion of tourism. For the purposes of this section a tax which is in effect on April 1, 1990 and is subsequently renewed by a majority of qualified electors voting at an election to approve the renewal is not considered a tax increase.

D. For the purposes of subsection C, expenditures by a city or town for the promotion of tourism include:

Direct expenditures by the city or town to promote tourism, including but not limited to sporting events or cultural exhibits.
Contracts between the city or town and nonprofit organizations or associations for the promotion of tourism by the nonprofit organization or association.
Expenditures by the city or town to develop, improve or operate tourism related attractions or facilities or to assist in the planning and promotion of such attractions and facilities.

E. If a city or town has not imposed a discriminatory transaction privilege tax up to a two per cent tax level on hospitality industry businesses as of April 1, 1990 and thereafter imposes or increases such a discriminatory transaction privilege tax, the first two percentage rate portion of the discriminatory transaction privilege tax is not subject to the provisions of subsection C.

F. The collection by a city or town of a fee or tax prohibited by this section shall be void and unlawful. For a five year period following the unlawful collection of the fee, the city or town shall reimburse the hospitality business for any reasonable expense incurred in collecting from the city or town any fees or tax unlawfully collected.

G. For the purposes of this section:

"Discriminatory transaction privilege tax" means any transaction privilege tax rate imposed by a city or town on hospitality industry businesses that is above the transaction privilege tax rate imposed by a city or town equally on all businesses subject to a transaction privilege tax.
"Hospitality industry businesses" means:

(a) A restaurant, bar, hotel, motel, liquor store, grocery store, convenience store or recreational vehicle park.

(b) A motor vehicle rental agency in a county stadium district which has imposed the car rental surcharge pursuant to section 48-4234.

§ 9-500.07 Recycling and waste reduction

A city or town shall provide its residents with an opportunity to engage in recycling and waste reduction.

§ 9-500.08 Enforcement of water conservation plumbing requirements

A. The governing body of a city or town may designate an appropriate official to enforce all or a portion of title 45, chapter 1, article 12, relating to water conservation plumbing requirements. If a city or town designates an official pursuant to this subsection, it shall notify the department of water resources, in writing, of its intent to do so. An election under this subsection divests the department of water resources of jurisdiction to enforce those provisions, except that the department may enforce those provisions against any person who manufactures or distributes to a wholesaler or retailer any plumbing fixture for use in this state.

B. The city or town may retain the revenues from all civil penalties and assessments collected by the city or town under this section and title 45, chapter 1, article 12 as reimbursement for the costs of past enforcement actions and to fund future enforcement efforts.

§ 9-500.09 Fair housing

The governing body of a city or town with a population of three hundred fifty thousand or more persons according to the 1990 United States decennial census may adopt a fair housing ordinance not later than January 1, 1995.

§ 9-500.10 Escort and escort agency advertising requirements; civil penalty; definitions

A. An escort or escort agency shall not advertise escort services unless the advertisement includes either:

The escort license number of the escort if the advertisement is for the services of a specific escort.
The business license number of the escort agency where the services are offered if the advertisement does not offer the services of a specific escort.

B. An escort or escort agency shall retain on file, for at least one year, proof of the age of any escort whose services are offered in any advertisement of escort services.

C. An escort or escort agency that violates this section is subject to a civil penalty of:

Five hundred dollars for a first violation.
One thousand five hundred dollars for a second violation.
Five thousand dollars for a third or subsequent violation.

D. The attorney general, county attorney or city or town attorney may bring an action to enforce this section.

E. The court shall deposit any civil penalties collected pursuant to subsection C of this section into the human trafficking victims assistance fund established by section 41-114.

F. It is an affirmative defense in a civil action for a first violation of subsection A of this section that the escort or escort agency possessed a valid license at the time the advertisement was published.

G. It is an affirmative defense in a civil action for a violation of subsection B of this section that the escort whose services were offered in an advertisement for escort services was eighteen years of age or older at the time the advertisement was published.

H. For the purposes of this section:

"Advertisement" means any message in any medium that offers or solicits any person to retain the services of the escort or escort agency depicted in the advertisement.
"Escort" has the same meaning prescribed in section 13-1422.
"Escort agency" has the same meaning prescribed in section 13-1422.

§ 9-500.11 Expenditures for economic development; definitions

(L05, Ch. 105, sec. 2)

A. In addition to any other powers granted to a city or town, the governing body of a city or town may appropriate and spend public monies for and in connection with economic development activities.

B. To fund economic development activities under this section, a city or town subject to the requirements of section 9-500.06 shall not impose a new fee or tax on a single specific industry or type of business.

C. Notwithstanding section 19-142, subsection B, a decision by the governing body involving an expenditure pursuant to this section may not be enacted as an emergency measure and that decision is not effective for at least thirty days after final approval of the expenditure.

D. For the purposes of this section:

"Economic development activities" means any project, assistance, undertaking, program or study, whether within or outside the boundaries of the city or town, including acquisition, improvement, leasing or conveyance of real or personal property or other activity, that the governing body of the city or town has found and determined will assist in the creation or retention of jobs or will otherwise improve or enhance the economic welfare of the inhabitants of the city or town.
"Expenditure" includes any waiver, exemption, deduction, credit, rebate, discount, deferral or other abatement or reduction of the normal municipal tax liability that otherwise applies to similar existing business entities and properties in that city or town, however denominated, computed or applied, and that is generally understood as an inducement to locate a business facility or other operation in the city or town.

§ 9-500.11 (Version 2) Expenditures for economic development; requirements; definitions

(L05, Ch. 200, sec. 1)

A. In addition to any other powers granted to a city or town, the governing body of a city or town may appropriate and spend public monies for and in connection with economic development activities.

C. Notwithstanding section 19-142, subsection B, a decision by the governing body involving an expenditure pursuant to this section shall not be enacted as an emergency measure and that decision is not effective for at least thirty days after final approval of the expenditure.

D. Before entering into a retail development tax incentive agreement, a city or town shall make a finding by a simple majority vote of the governing body without the use of consent calendar that includes both of the following:

That the proposed tax incentive is anticipated to raise more revenue than the amount of the incentive within the duration of the agreement.
That in the absence of a tax incentive, the retail business facility or similar retail business facility would not locate in the city or town in the same time, place or manner.

E. A city or town located in or within twenty-five miles of the exterior boundary of a metropolitan statistical area having a population of more than two million persons shall make a finding pursuant to subsection D of this section, by a two-thirds vote of the governing body.

F. A city or town shall not enter into a retail tax incentive agreement if the proposed tax incentive raises less revenue than the amount of the incentive.

G. A city or town shall present a status report of the revenues and expenses associated with the tax incentive every two years for the duration of the agreement in a public meeting.

H. The finding made pursuant to subsection D, paragraph 1 of this section shall be verified by an independent third party before the city or town enters into the retail development incentive agreement.

I. The adoption of the retail development tax incentive agreement shall be approved by a simple majority vote of the governing body without the use of consent calendar. For a city or town located in or within twenty-five miles of the exterior boundary of a metropolitan statistical area having a population of more than two million persons, the adoption of a retail development tax incentive agreement shall be approved by an affirmative vote of at least two-thirds of the governing body without the use of consent calendar.

J. A person or business entity receiving the retail development tax incentive agreement shall not finance the independent third party verification of the findings or have input into the selection of the independent third party verifying the findings.

K. A city or town shall adopt a notice of intent to enter into a retail development tax incentive agreement at least fourteen days before approving a retail development tax incentive agreement.

L. Subsection D of this section does not apply to tax incentives given to a business entity in an area that is designated by a city or town as a redevelopment project as defined in section 36-1471.

M. For the purposes of this section:

"Economic development activities" means any project, assistance, undertaking, program or study, whether within or outside the boundaries of the city or town, including acquisition, improvement, redevelopment, leasing or conveyance of improved or unimproved real or personal property or other activity, that the governing body of the city or town has found and determined will assist in the creation or retention of jobs or will otherwise improve or enhance the economic welfare of the inhabitants of the city or town.
"Expenditure" includes any waiver, exemption, deduction, credit, rebate, discount, deferral or other abatement or reduction of the normal municipal tax liability that otherwise applies to similar existing business entities and properties in that city or town, however denominated, computed or applied, and that is generally understood as an inducement to locate a business facility or other operation in the city or town.
"Metropolitan statistical area" means a geographical area consisting of cities, towns and other populated areas defined for federal statistical and census purposes by the United States office of management and budget with technical assistance from the United States bureau of the census.
"Retail" means the sale of tangible personal property, except the sale of tangible personal property to a person who is engaged in the business of selling such property.
"Retail development activities" means those economic development activities that involve the acquisition, improvement, leasing or conveyance of improved or unimproved real or personal property or other activity to facilitate the sale of goods at retail, including the sale of automobiles, or to facilitate other activities, including theater and restaurant development, that generate revenues that are subject to municipal transaction privilege taxation.
"Retail development tax incentive agreement" means an agreement between a city or town and a person engaged in or planning to engage in retail development activities within that city or town in which the city or town agrees to pay, refund, credit, rebate or otherwise provide to that person all or a portion of the sales, use or transaction privilege taxes payable to that city or town in connection with the construction, development or operation of the retail development activities.

§ 9-500.12 Appeals of municipal actions; dedication or exaction; excessive reduction in property value; burden of proof; attorney fees

A. Notwithstanding any other provision of this chapter, a property owner may appeal the following actions relating to the owner's property by a city or town, or an administrative agency or official of a city or town, in the manner prescribed by this section:

The requirement by a city or town of a dedication or exaction as a condition of granting approval for the use, improvement or development of real property. This section does not apply to a dedication or exaction required in a legislative act by the governing body of a city or town that does not give discretion to the administrative agency or official to determine the nature or extent of the dedication or exaction.
The adoption or amendment of a zoning regulation by a city or town that creates a taking of property in violation of section 9-500.13.

B. The city or town shall notify the property owner that the property owner has the right to appeal the city’s or town’s action pursuant to this section and shall provide a description of the appeal procedure. The city or town shall not request the property owner to waive the right of appeal or trial de novo at any time during the consideration of the property owner's request.

C. The appeal shall be in writing and filed with or mailed to a hearing officer designated by the city or town within thirty days after the final action is taken. The municipality shall submit a takings impact report to the hearing officer. No fee shall be charged for filing the appeal.

D. After receipt of an appeal, the hearing officer shall schedule a time for the appeal to be heard not later than thirty days after receipt. The property owner shall be given at least ten days' notice of the time when the appeal will be heard unless the property owner agrees to a shorter time period.

E. In all proceedings under this section the city or town has the burden to establish that there is an essential nexus between the dedication or exaction and a legitimate governmental interest and that the proposed dedication, exaction or zoning regulation is roughly proportional to the impact of the proposed use, improvement or development or, in the case of a zoning regulation, that the zoning regulation does not create a taking of property in violation of section 9-500.13. If more than a single parcel is involved this requirement applies to the entire property.

F. The hearing officer shall decide the appeal within five working days after the appeal is heard. If the city or town does not meet its burden under subsection E of this section, the hearing officer shall:

Modify or delete the requirement of the dedication or exaction appealed under subsection A, paragraph 1 of this section.
In the case of a zoning regulation appealed under subsection A, paragraph 2 of this section, the hearing officer shall transmit a recommendation to the governing body of the city or town.

G. If the hearing officer modifies or affirms the requirement of the dedication, exaction or zoning regulation, a property owner aggrieved by a decision of the hearing officer may file, at any time within thirty days after the hearing officer has rendered a decision, a complaint for a trial de novo in the superior court on the facts and the law regarding the issues of the condition or requirement of the dedication, exaction or zoning regulation. In accordance with the standards for granting preliminary injunctions, the court may exercise any legal or equitable interim remedies that will permit the property owner to proceed with the use, enjoyment and development of the real property but that will not render moot any decision upholding the dedication, exaction or zoning regulation.

H. All matters presented to the superior court pursuant to this section have preference on the court calendar on the same basis as condemnation matters, and the court shall further have the authority to award reasonable attorney fees incurred in the appeal and trial pursuant to this section to the prevailing party. The court may further award damages that are deemed appropriate to compensate the property owner for direct and actual delay damages on a finding that the city or town acted in bad faith.

§ 9-500.13 Compliance with court decisions

A city or town or an agency or instrumentality of a city or town shall comply with the United States supreme court cases of Dolan v. City of Tigard, _____ U.S. _____ (1994), Nollan v. California Coastal Commission, 483 U.S. 825 (1987), Lucas v. South Carolina Coastal Council, _____ U.S. _____ (1992), and First English Evangelical Lutheran Church v. County of Los Angeles, 482 U.S. 304 (1987), and Arizona and federal appellate court decisions that are binding on Arizona cities and towns interpreting or applying those cases.

§ 9-500.14 Use of city or town resources or employees to influence elections; prohibition; civil penalty; definitions

A. A city or town shall not spend or use its resources, including the use or expenditure of monies, accounts, credit, facilities, vehicles, postage, telecommunications, computer hardware and software, web pages, personnel, equipment, materials, buildings or any other thing of value of the city or town, for the purpose of influencing the outcomes of elections. Notwithstanding this section, a city or town may distribute informational pamphlets on a proposed bond election as provided in section 35-454 if those informational pamphlets present factual information in a neutral manner. Nothing in this section precludes a city or town from reporting on official actions of the governing body.

B. The prohibition on the use of public resources to influence the outcome of bond, budget override and other tax-related elections includes the use of city-focused or town-focused promotional expenditures that occur after an election is called and through election day. This prohibition does not include routine city or town communications.

C. This section does not prohibit the use of city or town resources, including facilities and equipment, for government-sponsored forums or debates if the government sponsor remains impartial and the events are purely informational and provide an equal opportunity to all viewpoints. The rental and use of a public facility by a private person or entity that may lawfully attempt to influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate.

D. Employees of a city or town shall not use the authority of their positions to influence the vote or political activities of any subordinate employee.

E. The attorney general or the county attorney of the county in which an alleged violation of this section occurred may initiate a suit in the superior court in the county in which the city or town is located for the purpose of complying with this section.

F. For each violation of this section, the court may impose a civil penalty not to exceed five thousand dollars plus any amount of misused funds subtracted from the city or town budget against a person who knowingly violates or aids another person in violating this section. The person determined to be out of compliance with this section is responsible for the payment of all penalties and misused funds. City or town funds or insurance payments shall not be used to pay these penalties or misused funds. All misused funds collected pursuant to this section shall be returned to the city or town whose funds were misused.

G. Nothing contained in this section shall be construed as denying the civil and political liberties of any employee as guaranteed by the United States and Arizona Constitutions.

H. For the purposes of this section:

"Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters.
"Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral.
"Misused funds" means city or town monies or resources used unlawfully as proscribed by this section.
"Routine city or town communications" means messages or advertisements that are germane to the functions of the city or town and that maintain the frequency, scope and distribution consistent with past practices or are necessary for public safety.

§ 9-500.15 Referral of public transportation questions to voters

By resolution, the governing body of a city or town, including a charter city, may voluntarily refer an advisory question relating to public transportation to a vote of the qualified electors of the city or town at a special or general election.

§ 9-500.16 Clean burning fireplace ordinance

A. By December 31, 1998, a city or town that is located in area A as defined in section 49-541 shall adopt, implement and enforce an ordinance that complies with the clean burning fireplace standards adopted by the metropolitan planning organization that is responsible for air quality planning in area A. The ordinance shall prohibit the installation or construction of a fireplace or wood stove unless it is one of the following:

A fireplace that has a permanently installed gas or electric log insert.
A fireplace, a wood stove or any other solid fuel burning appliance that is any of the following:

(a) Certified by the United States environmental protection agency as in compliance with 40 Code of Federal Regulations part 60, subpart AAA in effect on July 1, 1990.

(b) A wood stove tested and listed by a nationally recognized testing agency to meet performance standards equivalent to those in 40 Code of Federal Regulations part 60, subpart AAA in effect on July 1, 1990.

(c) Determined by the county air quality control officer to meet performance standards equivalent to those in 40 Code of Federal Regulations part 60, subpart AAA in effect on July 1, 1990.

A fireplace that has a permanently installed wood stove insert that complies with paragraph 2, subdivision (a), (b) or (c) of this section.

B. The ordinance shall prohibit the subsequent conversion or alteration of a permitted fireplace or wood stove to a nonpermitted use.

C. The ordinance may provide for exemptions from regulation for heating or industrial equipment, cooking devices and outdoor fireplaces.

§ 9-500.17 Acceleration agreements; loan repayment agreements

A. Pursuant to section 28-7677, a city or town may enter into agreements with the department of transportation for the acceleration of right-of-way acquisition, design or construction of an eligible highway project or an eligible transit capital project as defined in section 28-7671 and may advance monies to the department of transportation pursuant to those agreements.

B. A loan repayment agreement as defined in section 28-7671 entered into by a city or town may be paid from and may be secured by a pledge of highway user revenues received by the city or town from this state pursuant to title 28, chapter 18, article 2 and section 42-6107. The pledge may be on a parity with any pledge previously or hereafter made by the city or town pursuant to section 48-690. If a city or town pledges those highway user revenues to a loan repayment agreement, the principal and interest requirements on the loan repayment agreement may be treated as if they were principal and interest on bonds issued under title 48, chapter 4, article 4 for all purposes of sections 48-689 and 48-691.

C. Pursuant to title 28, chapter 21, article 7, a city or town may do both of the following:

Enter into agreements with the department of transportation, a regional planning agency, metropolitan planning organization or council of governments, a regional public transportation authority established pursuant to section 48-5102 or a designated grant recipient for the acceleration of a transportation project as defined in section 28-7671.
Advance monies to the department of transportation, a regional planning agency, metropolitan planning organization or council of governments, a regional public transportation authority or a designated grant recipient pursuant to the agreements described in paragraph 1 of this subsection.

§ 9-500.18 School district construction fees; prohibition; exception

Notwithstanding any other law, a city or town shall not assess or collect any fees or costs from a school district or charter school for fees pursuant to section 9-463.05, except that a city or town may assess or collect fees for streets and water and sewer utility functions only if the development as defined in section 9-463.05 is not funded in whole or in part with monies distributed from the new school facilities fund pursuant to section 41-5741.

§ 9-500.19 Vehicle refueling apparatus

Notwithstanding any other law and because the legislature finds it is a matter of statewide concern, a city or town shall not effectively prohibit the installation or use of a vehicle refueling apparatus as defined in section 43-1086.01. This section does not preclude a city or town from ensuring the proper installation of a vehicle refueling apparatus to protect public health and safety.

§ 9-500.20 Outside emergency services; costs

A city or town may provide or assist in providing emergency fire or emergency medical services outside of its corporate limits, if those services are otherwise unavailable or are provided at the request of any law enforcement agency, fire district, fire department or private person, and may receive reimbursement for the costs of providing the emergency services. The person receiving the services, or on whose behalf the services are provided, is liable to the city or town for the costs, and these costs constitute a debt of that person and may be collected by the city or town. In this section the costs of providing emergency fire or medical services are those costs set forth in resolutions adopted by a city or town establishing fee schedules for emergency response, standby charges, fees for fire cause determination or any other fee that may be required or appropriate to provide emergency fire and medical services outside of its corporate limits.

§ 9-500.21 Civil enforcement of municipal ordinances

A city or town that classifies ordinance violations as civil offenses shall establish procedures to hear and determine these violations that may include:

Filing of a complaint before a hearing officer. The city or town magistrate may serve as a hearing officer or the city or town may appoint a separate hearing officer.
Timely notice of the citation to the violator. If the city or town is unable to personally serve the notice, the notice may be served in the same manner prescribed for alternative methods of service by the Arizona rules of civil procedure or by certified or registered mail, return receipt requested.
Procedures for the hearing, record on appeal, default by a defendant and rules of evidence that generally comply with those for civil traffic offenses.
Imposition of a civil penalty. At the conclusion of the hearing, the hearing officer shall determine whether a violation exists and, if so, may impose civil penalties of up to the maximum amount specified in section 9-240 for ordinance violations for each day a violation exists beyond the initial notice constituting a separate offense. The hearing officer may also order abatement of the violation pursuant to section 9-499.
A provision that if the violator does not comply with a civil enforcement action, the city or town may file a criminal charge. A civil enforcement action is not a prerequisite to the filing of a criminal charge.
Judicial review of the final decisions of the hearing officer pursuant to section 12-124.

§ 9-500.22 Prosecution diversion programs

A. The chief prosecuting officer of a city or town may establish a diversion program that provides for the dismissal of a criminal complaint on successful completion of the program's requirements. Diversion shall not be available to persons accused of a crime involving the discharge, use or threatening exhibition of a deadly weapon or dangerous instrument.

B. The prosecutor has sole discretion to decide whether to divert prosecution of an offender when the diversion occurs before a guilty plea or trial. The diversion program may be structured to require a guilty plea before entry into the program.

§ 9-500.23 Authority to provide fire protection and emergency services outside corporate limits

In addition to the powers provided by section 9-500.20 if approved by a municipal resolution, a city or a town may provide fire and emergency medical services outside its corporate limits to a county island as provided by section 11-251.12 or 48-853. A city or town that provides fire and emergency medical services outside its corporate limits pursuant to section 11-251.12 or 48-853 and the county treasurer for the county in which the municipality is located may enter into an agreement for the county treasurer to collect municipal fire and emergency services fees from owners of record in that area of the county. The municipality and the county treasurer may provide by agreement for the payment of the county treasurer's collection expenses from these fees, and if so provided, the fees shall include an amount for compensation of the county treasurer. Any compensation received by the county treasurer pursuant to this section shall be deposited pursuant to section 11-496.

§ 9-500.24 Federal patent easements; city and town abandonment

A city or town, by its own motion or at the request of a property owner, may abandon a federal patent easement established by the small tract act of 1938 that the city or town determines, after notifying and obtaining the consent of all affected utilities, is not being used by the public or is no longer necessary in the same manner as other easements are abandoned.

§ 9-500.25 Work centers; aliens; prohibition

A city or town shall not construct or maintain a work center if any part of the center is to facilitate the knowing employment of an alien who is not entitled to lawful residence in the United States.

§ 9-500.26 Authority to regulate the entry of minors into Mexico; exemption from liability

A. The governing body of an incorporated city or town may adopt an ordinance pursuant to chapter 7 of this title allowing a peace officer of a city or town to prevent the entry from this state into the republic of Mexico at the border by any resident of this state who is under eighteen years of age if the minor is unaccompanied by a parent or guardian or does not have written consent for entry from a parent or guardian. The authority of the peace officer is only to prevent entry and not to otherwise detain the minor.

B. This section shall not be construed to limit the authority of a peace officer pursuant to any other law.

C. A city or town is not civilly or criminally liable for not adopting an ordinance pursuant to this section.

§ 9-500.27 Off-road vehicle ordinance; applicability; violation; classification

A. No later than March 31, 2008, in area A, as defined in section 49-541, a city or town shall adopt, implement and enforce an ordinance that prohibits the operation of any vehicle, including an off-highway vehicle, an all-terrain vehicle or an off-road recreational motor vehicle, on an unpaved surface that is not a public or private road, street or lawful easement and that is closed by the landowner by rule or regulation of a federal agency, this state, a county or a municipality or by proper posting if the land is private land.

B. This section does not apply to the operation of vehicles used in the normal course of business or the normal course of government operations.

C. This section does not prohibit or preempt the enforcement of any similar ordinance that is adopted by a city or town in area A, as defined in section 49-541, before March 31, 2008 for purposes of dust abatement.

D. A person who violates an ordinance adopted pursuant to subsection A of this section is guilty of a class 3 misdemeanor.

E. In addition to or in lieu of a fine pursuant to this section, a judge may order the person to perform at least eight but not more than twenty-four hours of community restitution or to complete an approved safety course related to the off-highway operation of motor vehicles, or both.

§ 9-500.28 Disclosure of filings; military electronics range; definition

A. A city or town that contains any portion of a military electronics range as delineated in the military electronics range map prepared by the state land department pursuant to section 37-102 shall notify the office of the installation commander when an application is deemed complete by the city or town to do any of the following within any portion of the military electronics range:

Rezone the property.
Issue a building or other development permit, including an application for construction or installation of a publicly or privately operated utility, for the property.
Subdivide the property or otherwise divide the property, including any land division into five or fewer lots, whether for residential, industrial, commercial or any other use.

B. If the installation chooses to make official comments on the proposed land use change, those comments shall be made in writing and received by the city or town seven days before the first public hearing on the proposed land use change. If the proposed land use change described in subsection A of this section does not require a public hearing, this subsection shall not be construed to allow or require a public hearing by the city or town on written comments by the installation. If the installation chooses not to submit official comments, and if there is a hearing, the city or town shall note at the public hearing on the proposed land use change that the installation has not indicated an objection to the proposed land use change.

C. The city or town shall provide notice to the office of the installation commander pursuant to this section by providing a copy of the application and the relevant documentation that is necessary to adequately describe the proposed land use change as it relates to the military operations at the installation. This documentation shall include a basic outline of the procedures the city or town uses when processing land use change applications and deadlines for submitting official comments.

D. This section shall not be construed to allow or require a city or town to deny any use or occupancy permit, building permit, zoning approval or any other permit, approval or other authorization based on the existence of the military electronics range or its proximity to a parcel of real estate.

E. This section shall not be construed to require a city or town to meet the notification requirements of this section if the state land department has not prepared a map of the military electronics range.

F. For the purposes of this section, "military electronics range" means the geographically defined area in which electronic communication, monitoring or other devices are routinely tested as a part of the military mission of a military installation.

§ 9-500.29 Federal and state regulations; local coordination; standing; definitions

A. If a city or town has laws, regulations, plans or policies that are less restrictive than a federal or state regulation, rule, plan or policy, the city or town shall demand by any lawful means that the federal or state government coordinate with the city or town before the federal or state government implements, enforces, expands or extends the federal or state regulation, rule, plan or policy within the city's or town's jurisdictional boundaries. This subsection is mandatory unless the city or town specifically votes to not demand coordination.

B. If the federal or state government fails to coordinate in good faith with the city or town, the city or town shall hold public hearings, consider the evidence and vote on whether to authorize litigation to enforce the city's or town's coordination rights.

C. If a person who resides or does business in this state serves each member of the city's or town's governing body with a written demand that the city or town comply with this section and, within sixty days after service of the written demand, the city or town governing body fails to comply with this section in a manner that causes injury to the person, the person may submit a written demand for a response. The written demand must specify the city or town law, regulation, plan or policy with which the federal or state government failed to coordinate. Within thirty days after receiving the written demand for a response, the city or town shall hold a public hearing to present information on the decision not to demand coordination.

D. For the purposes of this section:

"Coordinate" means the action necessary to achieve coordination.
"Coordination" means the process by which the federal or state government seeks in good faith to reach consistency between a federal or state regulation, rule, plan or policy and a city or town law, regulation, plan or policy that is less restrictive than the federal or state regulation, rule, plan or policy.
"Less restrictive" means a city or town law, regulation, plan or policy imposes or would impose less of a burden on the exercise of rights, privileges or immunities enjoyed by individuals, organizations and businesses within the city's or town's jurisdictional boundaries.

§ 9-500.30 Federal monies; prohibition; union labor preference

A city or town is prohibited from accepting federal monies for a construction project if as a condition of accepting the federal monies the city or town is required to give a preference to union labor.

§ 9-500.31 Prohibition on adopting landlord tenant bedbug control requirements

A. Except as provided in subsection B of this section, a city or town shall not adopt requirements by ordinance or otherwise for landlords or tenants that relate to the control of bedbugs as defined in section 33-1319, other than the requirements prescribed by section 33-1319.

B. A city or town may adopt requirements relating to the proper disposal of items that are infested with bedbugs.

§ 9-500.32 License fees for dogs; prohibition; violation; classification

A. A city or town may not charge an individual who has a disability and who uses a service animal as defined in section 11-1024, a person that trains a service animal as defined in section 11-1024 or an individual who uses a search and rescue dog a license fee for that dog.

B. An applicant for a license for a search and rescue dog shall provide adequate proof satisfactory to the enforcement agent that the dog is a search and rescue dog.

C. An applicant for a license for a service animal shall sign a written statement that the dog is a service animal as defined in section 11-1024. A person who makes a false statement pursuant to this subsection is guilty of a petty offense and is subject to a fine that does not exceed fifty dollars. The statement to be signed shall be substantially in the following form:

By signing this document, I declare that the dog to be licensed is a service animal as defined in section 11-1024, Arizona Revised Statutes, and I understand that a person who makes a false statement pursuant to section 9-500.32, Arizona Revised Statutes, is guilty of a petty offense and is subject to a fine that does not exceed fifty dollars.

§ 9-500.33 County island sewer connection; prohibition; state preemption

Notwithstanding any other law, a city or town may not require the owner of a property located in the city's or town's municipal planning area to connect to the city's or town's sewer system if the property is located in a county island as defined in section 11-251.12 unless the department of environmental quality has determined that connection is necessary to abate an environmental nuisance as defined in title 49, chapter 1, article 3 or to eliminate a threat to a water quality standard established pursuant to title 49, chapter 2, article 2. The property rights of property owners in this state are of statewide concern. This section preempts all local laws, ordinances and charter provisions to the contrary.

§ 9-500.34 Prohibition on retail business security requirements; state preemption

A. A municipality may not adopt an ordinance that requires a retail business to comply with specific security requirements, including the installation of security cameras or security lights, based on the size of the retail business, the type of the retail business or the number of calls the retail business made to law enforcement per year. For the purposes of this section, retail business does not include a bar, hotel, restaurant or a business that has live entertainment, dispenses or cultivates medical marijuana or that requires age verification for admission.

B. The legislature finds that the imposition of security requirements on retail businesses in a uniform and consistent manner is a matter of statewide concern. The imposition of security requirements on retail businesses as provided in this section is not subject to further regulation by a city, charter city or town.

§ 9-500.35 Garbage collection services; payment responsibility

For residential property of four or fewer units, a garbage collection service provider that operates within a city or town may not require payment of garbage collection service rates and charges by anyone other than the person who has contracted with the garbage collection service provider to provide the service, who physically resides or resided at the property and who receives or received the service. The property owner, an immediate family member of the person who does not reside at the property or any other entity, at their sole discretion, may establish service in their name with the garbage collection service provider and is responsible for payment.

§ 9-500.36 Prohibition on requirement of energy measuring and reporting; state preemption

A. A city or town may not require an owner, operator or tenant of a business, commercial building or multifamily housing property to measure and report energy usage and consumption, including energy consumption benchmarking and building facility energy efficiency audits.

B. The regulation of an owner, operator or tenant of a business, commercial building or multifamily housing property relating to measuring and reporting energy usage and consumption is a matter of statewide concern. The regulation of measuring and reporting energy usage and consumption by an owner, operator or tenant of a business, commercial building or multifamily housing property pursuant to this section are not subject to further regulation by a city or town.

C. This section does not prohibit a city or town that operates an electric or gas utility from metering or otherwise measuring and reading energy deliveries, usage and consumption in the course of providing public utility service to businesses, commercial buildings and multifamily housing properties.

§ 9-500.37 Improvements to private property not in corporate boundaries; prohibition

A city or town may not require the owner of property that is not located in the city's or town's corporate boundaries to make an improvement as a condition of providing water or wastewater service unless the improvement has a substantial nexus to the water or wastewater service that is to be provided to the owner's property by the city or town.

§ 9-500.38 Prohibition on regulation of auxiliary containers; state preemption; definition

A. A city or town may not:

Impose a tax, fee, assessment, charge or return deposit on a consumer or an owner, operator or tenant of a business, commercial building or multifamily housing property for auxiliary containers.
Regulate the sale, use or disposition of auxiliary containers by an owner, operator or tenant of a business, commercial building or multifamily housing property.

B. The regulation of the sale, use and disposition of auxiliary containers is a matter of statewide concern. The regulation of the sale, use or disposition of auxiliary containers by an owner, operator or tenant of a business, commercial building or multifamily housing property pursuant to this section is not subject to further regulation by a city or town.

C. This section does not prevent a city or town from continuing a voluntary recycling and waste reduction program as authorized by section 9-500.07 or ensuring that discarded auxiliary containers defined as solid waste pursuant to section 49-701.01 are disposed of properly.

D. For the purposes of this section, "auxiliary container" includes reusable bags, disposable bags, boxes, beverage cans, bottles, cups and containers that are made out of cloth, plastic, extruded polystyrene, glass, aluminum, cardboard or other similar materials and that are used for transporting merchandise or food to or from a business or multifamily housing property. Auxiliary container does not include a stationary receptacle intended solely for use by the public for voluntary donation of goods and materials intended for subsequent reuse, sale or recycling.

§ 9-500.39 Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties; transaction privilege tax license suspension; definitions

A. A city or town may not prohibit vacation rentals or short-term rentals.

B. A city or town may not restrict the use of or regulate vacation rentals or short-term rentals based on their classification, use or occupancy except as provided in this section. A city or town may regulate vacation rentals or short-term rentals as follows:

To protect the public's health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control and solid or hazardous waste and pollution control, if the city or town demonstrates that the rule or regulation is for the primary purpose of protecting the public's health and safety.
To adopt and enforce use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004.
To limit or prohibit the use of a vacation rental or short-term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.
To require the owner of a vacation rental or short-term rental to provide the city or town with emergency contact information for the owner or the owner's designee who is responsible for responding to complaints or emergencies in a timely manner in person if required by public safety personnel, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short-term rental. In addition to any other penalty imposed pursuant to this section, the city or town may impose a civil penalty of up to $1,000 against the owner for every thirty days the owner fails to provide contact information as prescribed by this paragraph. The city or town shall provide thirty days' notice to the owner before imposing the initial civil penalty.
To require the owner of a vacation rental or short-term rental to obtain and maintain a local regulatory permit or license. As a condition of issuance of a permit or license, the application for the permit or license may require an applicant to provide only the following:

(a) The name, address, telephone number and email address for the owner or owner's agent.

(b) The address of the vacation rental or short-term rental.

(d) Contact information required pursuant to paragraph 4 of this subsection.

(e) Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances.

(f) A fee not to exceed the actual cost of issuing the permit or license or $250, whichever is less.

To require, before offering a vacation rental or short-term rental for rent for the first time, the owner or the owner's designee of a vacation rental or short-term rental to notify all single-family residential properties adjacent to and directly and diagonally across the street from the vacation rental or short-term rental. Notice shall be deemed sufficient in a multifamily residential building if given to residents on the same building floor. A city or town may require additional notification pursuant to this paragraph if the contact information previously provided changes. Notification provided in compliance with this paragraph shall include the permit or license number if required by the city or town, the address of the vacation rental or short-term rental and the information required pursuant to paragraph 4 of this subsection. The owner or the owner's designee shall demonstrate compliance with this paragraph by providing the city or town with an attestation of notification compliance that consists of the following information:

(a) The permit or license number of the vacation rental or short-term rental, if required by the city or town.

(b) The address of each property notified.

(c) A description of the manner in which the owner or owner's designee chose to provide notification to each property subject to notification.

(d) The name and contact information of the person attesting to compliance with this paragraph.

To require the owner or owner's designee of a vacation rental or short-term rental to display the local regulatory permit number or license number, if any, on each advertisement for a vacation rental or short-term rental that the owner or owner's designee maintains. A city or town that does not require a local regulatory permit or license may require the owner or owner's designee of a vacation rental or short-term rental to display the transaction privilege tax license number required by section 42-5042 on each advertisement for a vacation rental or short-term rental that the owner or owner's designee maintains.
To require the vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through an online lodging marketplace that provides equal or greater coverage.
To require the owner of a vacation rental or short-term rental to reside on the property if the property contains an accessory dwelling unit and if a certificate of occupancy, certificate of completion or similar final approval for the accessory dwelling unit was issued by the municipality on or after September 14, 2024. This paragraph does not apply to an owner of a vacation rental or short-term rental if the property contains an accessory dwelling unit and the certificate of completion, the certificate of occupancy or a similar final approval for the accessory dwelling unit was issued on or before September 13, 2024.

C. A city or town that requires a local regulatory permit or license pursuant to this section shall issue or deny the permit or license within seven business days of receipt of the information required by subsection B, paragraph 5 of this section and otherwise in accordance with section 9-835, except that a city or town may deny issuance of a permit or license only for any of the following:

Failure to provide the information required by subsection B, paragraph 5, subdivisions (a) through (e) of this section.
Failure to pay the required permit or license fee.
At the time of application the owner has a suspended permit or license for the same vacation rental or short-term rental.
The applicant provides false information.
The owner or owner's designee of a vacation rental or short-term rental is a registered sex offender or has been convicted of any felony offense that resulted in death or serious physical injury or any felony use of a deadly weapon within the past five years.

D. A city or town that requires a local regulatory permit or license pursuant to this section shall adopt an ordinance to allow the city or town to initiate an administrative process to suspend a local regulatory permit or license for a period of up to twelve months for the following verified violations associated with a property:

Three verified violations within a twelve-month period, not including any verified violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
One verified violation that results in or constitutes any of the following:

(a) A felony offense committed at or in the vicinity of a vacation rental or short-term rental by the vacation rental or short-term rental owner or owner's designee.

(b) A serious physical injury or wrongful death at or related to a vacation rental or short-term rental resulting from the knowing, intentional or reckless conduct of the vacation rental or short-term rental owner or owner's designee.

(c) An owner or owner's designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses or prostitution, or operating or maintaining a sober living home, in violation of a regulation or ordinance adopted pursuant to subsection B, paragraph 3 of this section.

(d) An owner or owner's designee knowingly or intentionally allowing the use of a vacation rental or short-term rental for a special event that would otherwise require a permit or license pursuant to a city or town ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.

Notwithstanding paragraphs 1 and 2 of this subsection, any attempted or completed felony offense, arising from the occupancy or use of a vacation rental or short-term rental, that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property's use as a vacation rental or short-term rental for a period of time that shall not exceed twelve months.

E. A city or town that requires sex offender background checks on a vacation rental or short-term rental guest shall waive the requirement if an online lodging marketplace performs a sex offender background check of the booking guest.

F. Notwithstanding any other law, a city or town may impose a civil penalty of the following amounts against an owner of a vacation rental or short-term rental if the owner receives one or more verified violations related to the same vacation rental or short-term rental property within the same twelve-month period:

Up to $500 or up to an amount equal to one night's rent for the vacation rental or short-term rental as advertised, whichever is greater, for the first verified violation.
Up to $1,000 or up to an amount equal to two nights' rent for the vacation rental or short-term rental as advertised, whichever is greater, for the second verified violation.
Up to $3,500 or up to an amount equal to three nights' rent for the vacation rental or short-term rental as advertised, whichever is greater, for a third and any subsequent verified violation.

G. A vacation rental or short-term rental that fails to apply for a local regulatory permit or license in accordance with subsection B, paragraph 5 of this section, within thirty days of the local regulatory permit or license application process being made available by the city or town issuing such permits or licenses, must cease operations. In addition to any civil penalties imposed pursuant to subsection F of this section, a city or town may impose a civil penalty of up to $1,000 per month against the owner if the owner or owner's designee fails to apply for a regulatory permit or license within thirty days after receiving written notice of the failure to comply with subsection B, paragraph 5 of this section.

H. If multiple verified violations arise out of the same response to an incident at a vacation rental or short-term rental, those verified violations are considered one verified violation for the purpose of assessing civil penalties or suspending the regulatory permit or license of the owner pursuant to this section.

I. If the owner of a vacation rental or short-term rental has provided contact information to a city or town pursuant to subsection B, paragraph 4 of this section and if the city or town issues a citation for a violation of the city's or town's applicable laws, regulations or ordinances or a state law that occurred on the owner's vacation rental or short-term rental property, the city or town shall make a reasonable attempt to notify the owner or the owner's designee of the citation within seven business days after the citation is issued using the contact information provided pursuant to subsection B, paragraph 4 of this section. If the owner of a vacation rental or short-term rental has not provided contact information pursuant to subsection B, paragraph 4 of this section, the city or town is not required to provide such notice.

J. This section does not exempt an owner of a residential rental property, as defined in section 33-1901, from maintaining with the assessor of the county in which the property is located information required under title 33, chapter 17, article 1.

K. A vacation rental or short-term rental may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license pursuant to a city or town ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.

L. For the purposes of this section:

"Accessory dwelling unit" has the same meaning prescribed in section 9-461.18.
"Online lodging marketplace" has the same meaning prescribed in section 42-5076.
"Transient" has the same meaning prescribed in section 42-5070.
"Vacation rental" or "short-term rental":

(a) Means any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium or cooperative that is also a transient public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001.

(b) Does not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.

"Verified violation" means a finding of guilt or civil responsibility for violating any state law or local ordinance relating to a purpose prescribed in subsection B, D, F or K of this section that has been finally adjudicated.

§ 9-500.41 911 telephone calls; medical assistance requests; Good Samaritans

A city or town that receives 911 telephone calls shall report to the department of health services, in a format prescribed by the department, the number of telephone calls received under section 13-3423 and any related overdose deaths.

§ 9-500.42 Prohibition on regulation of using computational power or running node on blockchain technology; state preemption; definitions

A. A city or town may not prohibit or otherwise restrict an individual from lawfully accessing or using computational power or running a node on blockchain technology in a residence.

B. The regulation of the act of lawfully accessing or using computational power or running a node on blockchain technology in a residence is of statewide concern and not subject to further regulation by a city or town.

C. For the purposes of this section:

"Computational power" means the use of computer hardware and software to process data, run algorithms or perform tasks requiring significant computing resources, including artificial intelligence, blockchain, scientific research and cloud computing.
"Running a node on blockchain technology" means providing computing power to validate or encrypt transactions in blockchain technology as defined in section 44-7061.

§ 9-500.43 Prohibition on mandated provision of health insurance; state preemption

A. A city or town may not require an employer to provide health insurance to the employer's employees.

B. The regulation of health insurance is of statewide concern and not subject to further regulation by a city or town.

§ 9-500.44 Communications; accessibility; emergency response interpreters

A. Pursuant to the Americans with disabilities act of 1990 (P.L. 101-336; 104 Stat. 327; 42 United States Code sections 12101 through 12213) and its regulations, a city or town shall take reasonable steps to ensure that its communications with persons with disabilities, including online communications and emergency communications, are equally as effective as the city's or town's communications with persons without disabilities. The city or town shall take reasonable steps to ensure that persons with disabilities are able to communicate with, receive information from and convey information to the city or town. The city or town shall provide auxiliary aids and services when needed to communicate effectively with persons with communication disabilities.

B. A city or town shall establish a protocol to take reasonable steps to secure an interpreter who is licensed by the commission for the deaf and the hard of hearing pursuant to title 36, chapter 17.1, article 2, with preference for an interpreter who is certified through the department of emergency and military affairs' emergency response interpreter credentialing program, to interpret emergency communications that are presented live to the media for broadcast or delivered through a live online communication, including an official government statement or press conference relating to an emergency situation.

C. This section does not prevent a city or town from communicating to the public during an emergency situation if an interpreter is unavailable.

§ 9-500.45 Drug disposal programs; business assessments prohibited; restrictions; state preemption; definition

A. A city or town may not:

Impose a tax, fee, assessment or charge on any consumer or owner or operator of a business to pay for or support a drug disposal program in the city's or town's jurisdiction.
Require an owner or operator of a business to establish, pay for or operate a drug disposal program in the city's or town's jurisdiction.

B. Subsection A of this section does not prohibit a city or town from using other general fund monies for the purpose of operating a drug disposal program.

C. The establishment or regulation of a drug disposal program by an owner or operator of a business that complies with state and federal law and rules adopted pursuant to those laws is a matter of statewide concern and is not subject to further regulation by a city or town.

D. For the purposes of this section, "drug disposal program" means a program to collect, transport or dispose of prescription drugs, including controlled substances, nonprescription drugs, needles or sharps that are no longer wanted by the owner or that have been abandoned or discarded or are intended to be abandoned or discarded by the owner.

§ 9-500.46 Parking; public service and public safety emergency vehicles; definitions

A. Notwithstanding any provision in rule or ordinance, a city, including a charter city, or town may not prohibit a resident from parking a motor vehicle on a street or driveway in the city or town if the vehicle is required to be available at designated periods at the person's residence as a condition of the person's employment and either of the following applies:

The resident is employed by a public service corporation that is regulated by the corporation commission, an entity that provides emergency telephone service, an entity regulated by the federal energy regulatory commission or a municipal utility and the public service corporation, emergency telephone service provider, federally regulated utility or municipal utility is required to prepare for emergency deployments of personnel and equipment for repair or maintenance of natural gas, electrical, telecommunications, emergency telephone or water infrastructure, the vehicle has a gross vehicle weight rating of twenty thousand pounds or less and is owned or operated by the public service corporation, emergency telephone service provider, federally regulated utility or municipal utility and the vehicle bears an official emblem or other visible designation of the public service corporation, emergency telephone service provider, federally regulated utility or municipal utility.
The resident is employed by a public safety agency, including police or fire service for a federal, state, local or tribal agency or a private fire service provider or an ambulance service provider that is regulated pursuant to title 36, chapter 21.1, and the vehicle has a gross vehicle weight rating of ten thousand pounds or less and bears an official emblem or other visible designation of that agency.

B. This section does not prevent a city, including a charter city, or town from enforcing public health, safety and welfare requirements, including requirements relating to parking and traffic that are applied on a uniform and nondiscriminatory basis.

C. For the purposes of this section:

"Emergency telephone service" means a service that provides voice transmissions to emergency or public safety agencies through 911 or a similarly designated telephone number. Emergency telephone service does not include commercial mobile radio services.
"Telecommunications" means the transmission of information of the user's choosing between or among points specified by the user without change in the form or content of the information as sent and received. Telecommunications does not include commercial mobile radio services.

§ 9-500.47 Firefighter; peace officer; residency requirement; prohibition; exemption; definitions

A. A city or town shall not impose any residency requirement on any firefighter or peace officer as a condition of employment.

B. This section does not apply to any of the following:

Executive-level firefighters and executive-level peace officers.
Peace officers employed by a city or town with a population of five thousand persons or less.

C. For the purposes of this section:

"Firefighter" means a professional firefighter who is a member of a city, town, county or fire district fire department.
"Peace officer" means a marshal, police officer and any other city or town officer vested by law with a duty to maintain public order and make arrests.

§ 9-500.48 Deceased cats and dogs; owner notification

A city or town shall require an employee or a contractor or subcontractor that has contracted with the city or town to remove deceased cats and dogs from a public place to thoroughly scan the cat or dog for the presence of a microchip and make a reasonable effort to contact the owner before disposing of the cat or dog if the disposal will be at a landfill.

§ 9-500.49 Administrative review and approval; self-certification program; expedited approval; applicability; definitions

A. Notwithstanding any other law, the legislative body of a city or town shall by ordinance do the following:

Authorize administrative personnel to review and approve site plans, development plans, land divisions, lot line adjustments, lot ties, preliminary plats, final plats and plat amendments without a public hearing.
Authorize administrative personnel to review and approve design review plans based on objective standards without a public hearing.
Allow at-risk submittals for certain on-site preliminary grading and drainage work or infrastructure.
Allow applicants with a history of compliance with building codes and regulations to be eligible for expedited permit review.

B. Notwithstanding any other law, the legislative body of a city or town may by ordinance adopt a self-certification program allowing registered architects and professional engineers to certify and be responsible for compliance with all applicable ordinances and construction standards for projects that the ordinance identifies as being qualified for self-certification.

C. Applications for a license pursuant to this section are subject to chapter 7, article 4 of this title.

D. This section does not apply to any of the following:

Land in an area that is designated as a district of historical significance pursuant to section 9-462.01, subsection A, paragraph 10.
Land in an area that is designated as historic on the national register of historic places.
Land in an area that is designated historic by a local government.

E. For the purposes of this section:

"License" has the same meaning prescribed in section 9-831.
"Objective" means not influenced by personal interpretation, taste or feelings of a municipal employee and verifiable by reference to an adopted benchmark, standard or criterion available and knowable by the applicant or proponent.

§ 9-500.50 Disclosure of filing; military installation or range or Arizona national guard site; definitions

A. A city or town that contains any portion of a military installation or range or Arizona national guard site or contains any portion of the influence area of a military installation or range or Arizona national guard site, as delineated in the map prepared by the state land department pursuant to section 37-102, shall notify the office of the military installation or range or Arizona national guard site commander when an application is deemed complete by the city or town to do any of the following in any portion of the influence area:

Amend, modify or change a general plan or comprehensive plan land use designation.
Establish, amend, modify or change an area plan, character plan, master development plan or site plan.
Amend, modify or change the zoning designation, overlay zoning designation or the regulations related to allowed uses, structure or building heights or outdoor lighting in the applicable designations.
Subdivide the property or otherwise divide the property, including any land division, into five or fewer lots, regardless of the proposed development or use.

B. The city or town shall provide the notice required pursuant to subsection A of this section by providing a copy of the application and the relevant documentation that are necessary to adequately describe the proposed application pursuant to subsection A of this section. The notice shall include procedures for providing electronic or written comments, and the date comments must be received.

C. In all cases, comments from the military installation or range or Arizona national guard site shall be received by the city or town seven days before the first public hearing. If the application does not require a public hearing, comments shall be provided to the city or town within the normal review and comment timelines for such application. If comments are provided, this section does not require a public hearing for comments on applications that do not otherwise require a public hearing.

D. If the military installation or range or Arizona national guard site chooses not to submit official comments and a public hearing is required, the city or town shall note at the public hearing that the military installation or range or Arizona national guard site was notified and has not provided comment on the application.

E. This section does not require a city or town to deny any application, permit, approval or authorization based on the existence of the military installation or range or Arizona national guard site or its proximity to the parcel of real estate.

F. This section does not require a city or town to meet the notification requirements of this section if the state land department has not prepared maps of military installations or ranges or Arizona national guard sites.

G. For the purposes of this section:

"Influence area" means all property located within two miles of the exterior perimeter or fence line of the military installation or range or Arizona national guard site.
"Military installation or range or Arizona national guard site":

(a) Includes:

(i) United States naval observatory Flagstaff station.

(ii) Barry M. Goldwater range.

(iii) Yuma proving grounds.

(iv) Buckeye training site.

(v) Camp Navajo.

(vi) Florence military reservation.

(vii) Papago park military reservation.

(viii) Picacho peak stagefield.

(ix) Rittenhouse training site.

(x) Silverbell army heliport.

(b) Does not include:

(i) The Laguna army airfield.

(ii) Any military airport or ancillary military facility as defined in section 28-8461.

§ 9-500.51 Youth businesses; license; permit; exemption

Notwithstanding any other law, a municipality may not require any type of license or permit for a business that is both of the following:

Operated by a person who is under nineteen years of age.
Operated only occasionally.

§ 9-500.52 Construction; summertime hours; prohibition on restriction

A. A municipality may not enact or enforce any noise ordinance, rule or regulation that prohibits any general construction activities between May 1 and October 15 of each year between the hours of 5:00 a.m. and 7:00 p.m. each business day and between the hours of 7:00 a.m. and 7:00 p.m. on Saturday if the construction work is being performed pursuant to a validly issued building permit issued by the municipality.

B. The municipality shall allow concrete to be poured at least one hour before the time that general construction activities are regularly scheduled to begin.

§ 9-500.53 Initial active management areas; landscaping requirements; prohibition; statewide concern; definitions

A. Notwithstanding any other law, a municipality that is located within an initial active management area may not adopt or enforce any code, ordinance, rule, regulation, standard, stipulation or other requirement that directly or indirectly requires any of the following in a subdivision where groundwater savings credits have been pledged to a certificate of assured water supply:

A minimum number of trees, except for trees included on the low-water-use and drought-tolerant plant list that is published by the department of water resources for the current management plan for the initial active management area.
A minimum size for trees or shrubs.
A minimum percentage of irrigated ground cover.
A minimum amount of turf.
An area for active open space that exceeds the greater of the following:

(a) Ten percent of the gross acres within the subdivision.

(b) What is required for retention.

Rights-of-way that require landscaping on more than twenty percent of the cross section.
Construction or maintenance of water parks or decorative water features, including lakes, ponds or lagoons, except as provided in section 45-132, subsection B, paragraph 4, subdivision (a).

B. In a subdivision where groundwater savings credits have been pledged to a certificate of assured water supply, a municipality may not:

Increase lot sizes or reduce lot yield once zoning is approved.
Increase the size of a right-of-way required as of September 26, 2025 for the purpose of additional landscape area.

C. The efficient use of water is a matter of statewide concern.

D. For the purposes of this section:

"Groundwater savings credit" means a groundwater savings credit as prescribed in section 45-465.05.
"Initial active management area" has the same meaning prescribed in section 45-402.
"Subdivision" has the same meaning prescribed in section 32-2101.

Chapter 5 Public Utilities

Article 1 Franchise by Municipality

§ 9-501 Grant of franchise

A. A municipal corporation shall not grant a franchise for a public utility to be operated by the grantee unless authorized by a majority vote of the qualified voters of the municipal corporation at a regular election or at a special election duly and regularly called by the governing body of the municipal corporation for that purpose.

B. A telecommunications corporation may apply for either a license or a franchise from a municipal corporation under section 9-583, and the municipal corporation shall not require a franchise for a public utility for its provision of telecommunications services as defined in section 9-581.

§ 9-502 Petition for franchise; publication; estimate; election; term; expenditures

A. A person desiring to obtain a franchise to operate a public utility from a municipal corporation shall present the franchise desired to the governing body of the municipal corporation, and it shall be filed among its records.

B. If the governing body deems the granting of the franchise beneficial to the municipal corporation, it shall pass a resolution, to be spread on its record, stating that fact, and shall submit the question to the qualified electors as to whether or not the franchise shall be granted at the following regular election held in the municipal corporation or at a special election called for that purpose.

C. The proposed franchise shall be published in full in some newspaper of general circulation published in the municipal corporation for at least thirty consecutive days before the election.

D. The ballot shall include an estimate of any proposed fees or taxes that are not related to franchise work or franchise fees.

E. If a majority of the votes cast is in favor of granting the franchise, the governing body shall grant the franchise only in the form filed and published.

F. A franchise shall not be granted for a longer term than twenty-five years.

G. An election held pursuant to this section shall be held on a date prescribed by section 16-204.

H. A public utility that spends only its own monies or resources in support of its proposed franchise from a municipal corporation to operate a public utility is exempt from the requirements of title 16, chapter 6.

Article 1.1 Cable Television Systems

§ 9-505 Definitions

In this article, unless the context otherwise requires:

"Area of jurisdiction" means that part of a city or town, or that part of the unincorporated area of a county, or both when applied to a cable television system within parts of more than one jurisdiction, for which a license is issued.
"Cable operator" means a person that is issued a license by the licensing authority to construct, operate and maintain a cable television system in public streets, roads and alleys.
"Cable service" means the transmission to subscribers of video programming or other programming service and subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service.
"Cable television system" means any facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service that includes video programming and that is provided to multiple subscribers within a community. Cable television system does not include:

(a) A facility that serves fewer than fifty subscribers.

(b) A facility that serves subscribers without using any public street, road or alley.

(d) A facility of a common carrier that is subject, in whole or in part, to 47 United States Code sections 201 through 276, except that the facility is considered a cable television system, other than for purposes of 47 United States Code section 541(c), to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand services.

(e) An open video system that complies with 47 United States Code section 573.

(f) A facility of an electric utility that is used solely for operating its electric utility system.

"Existing cable television system" means a cable television system in operation on April 1, 1974, a cable television system under construction on April 1, 1974 or a cable television system which had received authorization for construction as of April 1, 1974.
"Gross revenues" means all cash, credits, property of any kind or nature, or other consideration, less related bad debt not to exceed one and one-half per cent annually, that is received directly or indirectly by the cable operator, its affiliates, subsidiaries or parent or any person, firm or corporation in which the cable operator has a financial interest or that has a financial interest in the cable operator and that is derived from the cable operator’s operation of its cable system to provide cable service in the area of jurisdiction. Gross revenues include all revenue from charges for cable service to subscribers and all charges for installation, removal, connection or reinstatement of equipment necessary for a subscriber to receive cable service, and any other receipts from subscribers derived from operating the cable system to provide cable service, including receipts from forfeited deposits, sale or rental of equipment to provide cable service, late charges, interest and sale of program guides. Gross revenues also include all income the cable operator receives from the lease of its facilities located in the public streets, roads and alleys, unless services that the lessee provides over the leased facilities are subject to a transaction privilege tax of the licensing authority. Gross revenues do not include revenues from commercial advertising on the cable system, the use or lease of studio facilities of the cable system, the use or lease of leased access channels or bandwidth, the production of video programming by the cable operator, the sale, exchange, use or cablecast of any programming by the cable operator in the area of jurisdiction, sales to the cable operator’s subscribers by programmers of home shopping services, reimbursements paid by programmers for launch fees or marketing expense, license fees, taxes or other fees or charges that the cable operator collects and pays to any governmental authority, any increase in the value of any stock, security or asset, or any dividends or other distributions made in respect of any stock or securities.
"Intergovernmental contract" means the joint exercise of powers authorized by title 11, chapter 7, article 3.
"License" means that ordinance or resolution which contains the right, authority or grant, given by a licensing authority enabling a person to construct, operate and maintain a cable television system.
"Licensing authority" means the board of supervisors of a county or the governing body of an incorporated city, including a charter city, or town.
"Other programming service" means information that a cable operator makes available to all subscribers generally.
"Video programming" means programming that is provided by, or generally comparable to programming provided by, a broadcast television station.

§ 9-506 Authority to issue license; limitations; permits for Wi-Fi radio equipment; definitions

A. For the purpose of authorizing and regulating the construction, operation and maintenance of cable television systems, the licensing authority of a city, including a charter city, or town for an incorporated area, or the licensing authority of the county for unincorporated areas, either individually or jointly by intergovernmental contract, may issue a license to any person to use public streets, roads and alleys and shall impose conditions, restrictions and limitations on the use of public streets, roads and alleys and on the construction, operation and maintenance of cable television systems.

B. Subject to the limitations of this section, a licensing authority may adopt resolutions or ordinances implementing and controlling the license or joint license, issue a license containing other terms and conditions and impose a license fee on gross revenues. In addition to the limitations of this section, the license is subject to the limits established by the communications act of 1934, as amended (47 United States Code sections 151 through 615b) and the federal communications commission.

C. Other than the license fee on gross revenues authorized by this article and transaction privilege taxes as provided in this subsection, a licensing authority may not levy a tax, rent, fee or charge, however denominated, on a cable operator for the use of the public streets, roads or alleys to provide cable service or levy a tax, fee or charge on the privilege of engaging in the business of providing cable service in the area of jurisdiction. Taxes, rents, fees and charges include all:

Access channel support except for in-kind services or payments as provided in subsection D of this section.
Rental, application, construction, permit, inspection, inconvenience and other fees and charges related to a cable operator's use of the public streets, roads and alleys, including the use authorized by subsection I of this section. This subsection does not prohibit a licensing authority from levying fees and charges on a cable operator or its affiliates for microcell equipment pursuant to section 9-584 or for small wireless facilities pursuant to article 8 of this chapter or title 11, chapter 13, article 1 without an offset for license fees. In addition, the following apply:

(a) Any transaction privilege taxes otherwise authorized by law to be levied on the business of providing cable service or in relation to use of the public streets, roads or alleys to provide cable service may be levied on a cable operator if the taxes are levied only on gross revenues and the rate of the taxes is subject to subdivision (c) of this paragraph. This subsection does not authorize the imposition of transaction privilege taxes on interstate telecommunications services.

(b) The license fee and any transaction privilege taxes levied on gross revenues constitute a franchise fee within the meaning of 47 United States Code section 542(g)(1).

(c) Under no circumstances may the total of the rates of the license fee and of any transaction privilege taxes on gross revenues levied or assessed by a licensing authority for the privilege of providing cable service and related use of the public streets, roads or alleys to provide cable service exceed a rate of five percent, except during the transition period for certain licenses as provided in subsection H of this section.

(d) A cable operator shall pass on to subscribers any reduction in the amount of fees, taxes or other charges paid by a cable operator and itemized to subscribers that results from the implementation of the amendment to this section effective on September 21, 2006.

D. A licensing authority may not require a cable operator to provide in-kind services, make in-kind payments or pay a fee in addition to the monetary license fee levied or assessed as provided in this section as part of or as a condition of issuing a license to provide cable service, except that:

A licensing authority may require a cable operator to provide channel capacity to transmit programming over which the cable operator exercises no editorial control except as authorized by 47 United States Code section 531(e). The channel capacity shall be limited to not more than two channels of public, educational or governmental access programming in the basic service tier of the cable television system and not more than two channels of noncommercial governmental programming, at least one of which may be programmed by the federal government, in the digital programming tier of the cable television system. If channel capacity is required, the programming shall be specified in the license and the cable operator may require that the channels regularly display an unobtrusive logo or other suitable identifier of the cable operator as set forth in the license.
A licensing authority may require a cable operator to incur costs and expenses to provide, maintain and operate facilities and equipment of the cable television system, including facilities and equipment for signal carriage, processing, reformatting and interconnection:

(a) To connect the cable television system, as it may be relocated from time to time, to transmit programming to and from existing locations of public, educational or governmental access facilities and to allow monitoring of access programming at the facilities.

(b) To transmit public, educational and governmental access channels to subscribers with the same prevailing quality, functionality and identification as other channels.

A licensing authority may require a cable operator to provide the basic service tier of cable service at no monthly service charge to offices and facilities of the licensing authority.
The value of any channel capacity provided pursuant to paragraph 1 of this subsection, the costs and expenses incurred pursuant to paragraph 2 of this subsection and the value of basic service provided pursuant to paragraph 3 of this subsection may not be offset against the license fee levied or assessed under this section.

E. This section does not prohibit a cable operator from agreeing to provide in-kind services or make in-kind payments in the area of jurisdiction that are prohibited by subsection D of this section if the agreement with the licensing authority is not part of, or entered into as a condition of being issued, a new, renewed or amended license to provide cable service. An agreement that requires in-kind cable service or payments shall set forth the total annual fair market value of the in-kind cable service and payments, which shall be less than or equal to and offset against the license fee levied or assessed annually pursuant to this section. The license shall authorize the cable operator to retain license fees and taxes collected from its subscribers in the amount of this offset. In-kind cable services and payments include any channel capacity and all capital costs and charges for or in support of the use of any channel capacity that the cable operator agrees to provide under this subsection.

F. Notwithstanding subsection C of this section, a licensing authority may require that a cable operator:

Bear reasonable costs that are associated with damage caused to public streets, roads and alleys by construction, maintenance and operation of its facilities in the public streets, roads and alleys and that are imposed on a competitively neutral and nondiscriminatory basis in relation to costs borne by telecommunications corporations under section 9-582, subsection C.
Pay fines, fees, charges or damages for breach of the terms and conditions of the license.

G. This section does not affect the authority of a licensing authority to manage the public streets, roads and alleys within its boundaries or to exercise its police powers.

H. A license that is in effect on September 21, 2006, including one that is later renewed or extended for a term that begins before July 1, 2007, is enforceable in accordance with its terms and conditions as of July 1, 2007 and is not subject to the provisions of the amendment to this section effective on September 21, 2006. If a license that is in effect on September 21, 2006 is later extended or renewed for a term that begins after June 30, 2007, the extended or renewed license is subject to the provisions of the amendment to this section effective on September 21, 2006 and the amendment to this section effective on September 19, 2007, effective on the first day of the renewal or extension term, unless the term begins before January 1, 2008, in which case the limitation in subsection C, paragraph 2, subdivision (c) of this section on the rates of the license fee and of any transaction privilege taxes on gross revenues is:

Five percent, if the gross effective rate is five percent or less.
If the gross effective rate is more than five percent, five percent plus the following percentage:

(a) In the first year of the extension or renewal term, the gross effective rate minus five percent, multiplied by two-thirds.

(b) In the second year of the term, the gross effective rate minus five percent, multiplied by one-third.

I. On application a licensing authority shall issue to a cable operator or its affiliate a permit to attach allowed Wi-Fi radio equipment to the cable television system in public streets, roads and alleys in the area of jurisdiction. The permits shall allow installation, operation and maintenance of the allowed Wi-Fi radio equipment. A licensing authority may require that all of the allowed Wi-Fi radio equipment at a single location fit within a fifteen-inch cube and be contained entirely within a ground-mounted pedestal otherwise allowed by the license or be connected directly to and mounted at the same height as one of the cable operator's aerial horizontal conductors otherwise allowed by the license.

J. Subsection I of this section does not:

Affect any authority of a political subdivision, including an agricultural improvement district or any other special taxing district, the licensing authority or any other person controlling utility poles in the public streets, roads and alleys to deny, limit, restrict or determine the terms and conditions for the use of or attachment to the utility poles or attachments to other poles of the political subdivision, licensing authority or other person by a cable operator.
Prohibit a licensing authority from imposing competitively neutral and nondiscriminatory requirements for a cable operator to underground aerial facilities to which allowed Wi-Fi equipment is attached.
Prohibit the imposition of a tax, rent, fee or charge on revenue from services provided through allowed Wi-Fi radio equipment.
Affect the authority of a licensing authority to manage the public streets, roads and alley within its boundaries or to exercise its police powers including review and approval of an application before issuing a permit.

K. For the purposes of this section:

"Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a cable operator.
"Allowed Wi-Fi radio equipment" means radio equipment that uses only unlicensed radio spectrum and that enables wireless communication with a communications network for unlicensed services such as Wi-Fi service.
"Gross effective rate" means one hundred percent multiplied by the fraction in which the numerator is the sum of all taxes, fees and charges of the licensing authority that the cable operator itemized to subscribers and paid to the licensing authority under the license for the twelve calendar months immediately preceding September 21, 2006 and the denominator is the cable operator's gross revenues for that period in the area of jurisdiction.

§ 9-507 Application for license; hearing; terms; conditions

A. Any person desiring to obtain a license to construct, operate and maintain a cable television system from a licensing authority shall make application to such licensing authority in the form specified by the licensing authority and shall comply with requirements specified by the licensing authority.

B. Prior to the issuance of a license, the licensing authority shall provide for the holding of a public hearing within the proposed service area, following reasonable notice to the public, at which every applicant and its proposals shall be examined and the public and all interested parties afforded a reasonable opportunity to be heard. Reasonable notice to the public shall include causing notice of the time and place of such hearing to be published in a newspaper of general circulation in the proposed service area once a week for two consecutive weeks. The first publication shall be not less than fourteen days before the day of such hearing. If there is no such newspaper in the proposed service area, then notice shall be posted in a conspicuous place in the city or town hall, if applicable, or other suitable location determined by the respective licensing authority for a period of not less than fourteen days before the day of such hearing.

§ 9-508 License required before construction; provisions existing systems

A. A new cable television system shall not be constructed within any incorporated city or town or within the unincorporated area of a county without a license therefor having first been issued pursuant to the provisions of this article. This subsection shall not apply to extensions of existing cable television systems wholly within the area of jurisdiction.

B. Existing cable television systems with existing licenses for a fixed term of years shall be in compliance with this article for the term of such license.

C. All other existing cable television systems with existing licenses not specifying a fixed term shall have a term expiring April 1, 1989, or upon the termination of the license by the licensing authority.

D. Nothing in this section shall preclude a licensing authority from amending a license to bring the license into conformance with the applicable rules and regulations of the federal communications commission.

E. A licensing authority may terminate a license according to its terms and conditions if a license holder is in default thereunder.

§ 9-509 Municipal ownership

A city or town shall not acquire an ownership interest in any commercial cable television system unless the ownership interest is acquired at not less than fair market value.

§ 9-510 Control of programming

A licensing authority shall not directly or indirectly control the content of any of the programming on a cable television system except those channels dedicated to government access.

Article 2 Municipal Ownership

§ 9-511 Power to engage in business of public nature; outside water rates; right of eminent domain

A. A municipal corporation may engage in any business or enterprise which may be engaged in by persons by virtue of a franchise from the municipal corporation, and may construct, purchase, acquire, own and maintain within or without its corporate limits any such business or enterprise. A municipal corporation may also purchase, acquire and own real property for sites and rights-of-way for public utility and public park purposes, and for the location thereon of waterworks, electric and gas plants, municipal quarantine stations, garbage reduction plants, electric lines for the transmission of electricity, pipelines for the transportation of oil, gas, water and sewage, and for plants for the manufacture of any material for public improvement purposes or public buildings. If a municipality provides water to another municipality, the rates it charges for the water to the public in the other municipality shall be one of the following:

The same or less than the rates it charges its own residents for water.
The same or less than the rates the other municipality charges its residents for water.
If the other municipality does not provide water, the average rates charged for water to the residents in the other municipality by private water companies.
Rates determined by a contract which is approved by both municipalities and in which such rates are justified by a cost of service study or by any other method agreed to by both municipalities.

B. Nothing in this section shall affect a surcharge on water provided to another municipality adopted prior to July 1, 1986 provided that the surcharge did not exceed thirty per cent of the rates the municipality providing the water charges its own residents and except that any increase in the percentage of such surcharge proposed after August 13, 1986 shall be subject to the requirements of this section.

C. The municipality may exercise the right of eminent domain either within or without its corporate limits for the purposes as stated in subsection A, and may establish, lay and operate a plant, electric line or pipeline upon any land or right-of-way taken thereunder, and may manufacture material for public improvement purposes and barter or exchange it for other material to be used in public improvements in the municipal corporation, or sell it to other municipal corporations for like purposes, and for any and all such purposes.

§ 9-511.01 Water and wastewater business; rates; procedures; responsibility for payments

A. A municipality engaging in a domestic water or wastewater business shall not increase any water or wastewater rate or rate component, fee or service charge without complying with the following:

Prepare a written report or supply data supporting the increased rate or rate component, fee or service charge. The report or supporting data shall include cash flow projections that indicate all anticipated revenues from residential and nonresidential customers and the overall expenses for providing water or wastewater service. A copy of the report and cash flow projections shall be made available to the public by filing a copy in the office of the clerk of the municipality governing board and posting the report and cash flow projections on the municipality's website or the website of an association of cities and towns if the municipality does not have a website at least thirty days before the public hearing described in paragraph 2 of this subsection.
Adopt a notice of intention by motion at a regular council meeting to increase water or wastewater rates or rate components, fees or service charges and set a date for a public hearing on the proposed increase that shall be held at least sixty days after adoption of the notice of intention. A copy of the notice of intention showing the date, time and place of the hearing shall be published one time in a newspaper of general circulation within the boundaries of the municipality not less than twenty days before the public hearing date.

B. After holding the public hearing, the governing body may adopt, by ordinance or resolution, the proposed rate or rate component, fee or service charge increase or any lesser increase.

C. Notwithstanding section 19-142, subsection B, the increased rate or rate component, fee or service charge shall become effective thirty days after adoption of the ordinance or resolution.

D. Any proposed water or wastewater rate or rate component, fee or service charge adjustment or increase shall be just and reasonable.

E. Rates and charges demanded or received by municipalities for water and wastewater service shall be just and reasonable. Every unjust or unreasonable rate or charge demanded or received by a municipality is prohibited and unlawful.

F. A municipality may not assess or collect a fee on new water or wastewater service connections at the time of the establishment of service to those connections for the purpose of recovering the municipality's costs of acquiring, whether by purchase or by eminent domain, the utility plant, facilities, system or other property of a public service corporation or another municipality engaged in the business of providing water or wastewater service. This subsection does not apply to water or wastewater fees adopted before January 1, 2016 or to water or wastewater fees included in a notice of intent to adopt or increase water or wastewater rates and fees adopted before January 1, 2016.

G. For residential property of four or fewer units, a municipality shall not require payment of unpaid water and wastewater service rates and charges by anyone other than the person who the municipality has contracted with to provide the service, who physically resides or resided at the property and who receives or received the service. A property owner, an immediate family member of the person who does not reside at the property or any other entity, at its sole discretion, may contract for water and wastewater service with a municipality and shall provide payment.

H. For residential property of four or fewer units, a municipality shall not refuse service within the municipality's service area for the unpaid water and wastewater rates and charges to anyone other than the person who physically resided and received the service at the property. A property owner, at the owner's sole discretion, may contract for water and wastewater service with a municipality and shall provide payment for that service.

§ 9-511.02 Utility user fees; lien enforcement; procedures; payment responsibility; definition

A. A city or town may file a lien on property for the nonpayment of utility user fees for services provided to the property if the payment of the fees is delinquent for more than ninety days.

B. Before filing the lien, the city or town shall provide written notice to the owner of the property. The notice shall be given at least thirty days before filing the lien and shall include an opportunity for a hearing with a designated city or town official. The notice shall be either personally served or mailed to the property owner, at the last known address by certified mail, or to the address to which the tax bill for the property was last mailed. If the owner does not reside on the property, the notice shall be sent to the last known address.

C. The unpaid utility user fees, from the date of recording in the office of the county recorder in the county in which the property is located, are a lien on the property until the fees are paid. The lien is subject and inferior to the lien for general taxes and to all prior recorded mortgages and encumbrances of record. A sale of the property to satisfy a lien obtained under this section shall be made on judgment of foreclosure and order of sale. A city or town may bring an action to enforce the lien in the superior court in the county in which the property is located at any time after the recording, but failure to enforce the lien by this action does not affect its validity. The recorded unpaid utility user fees are prima facie evidence of the truth of all matters recited in the recording and of the regularity of all proceedings before the recording.

D. Unpaid utility user fees pursuant to this section accrue interest at the rate prescribed by section 44-1201.

E. A prior assessment of unpaid utility user fees for the purposes provided in this section does not bar a subsequent assessment for these purposes and any number of liens on the same lot or tract of land may be enforced in the same action.

F. Subsection A of this section does not apply to residential property occupied by a lessee where the lessee is responsible for payment of the utility user fees. The city or town shall determine the status of leased residential property prior to filing the lien.

G. For residential property of four or fewer units, a city or town may not require payment of unpaid utility user fees by anyone other than the person who has contracted with the city or town to provide the service, who physically resides or resided at the property and who receives or received the service. The property owner, an immediate family member of the person who does not reside at the property or any other entity, at their sole discretion, may establish service in their name for utility service with a city or town and shall be responsible for payment.

H. For purposes of this section "utility user fees" means fees charged for the provision of sewer.

§ 9-511.03 Outside waste or garbage collection, landfill services or recycling collection or processing services; requirements; exceptions

A. If a city or town provides waste or garbage collection services, landfill services or recycling collection or processing services outside of its boundaries, for those services the city or town shall:

Keep all records of the services separate from all other city or town municipal records.
For land and equipment dedicated to providing services outside of its boundaries and for any net income generated from providing services outside its boundaries, make an in-lieu contribution to all state, city, town, county and other taxing districts equal to the taxes that would be required of private companies performing the same service.
For the portion of equipment or land used by a city or town to provide services outside its boundaries, make an in-lieu contribution to all state, city, town, county and other taxing districts equal to the taxes that would be required of private companies performing the same services, including any income tax obligation that would be incurred by a private company for services provided by the city or town outside of the city or town.
Pay an in-lieu contribution to the recycling fund established by section 49-837 equal to the federal taxes that would be required of private companies performing the same service.
Pay all fees and costs that are applicable to private companies, including landfill fees.
Ensure that no city or town taxes, fees or revenues are used to subsidize those services outside the city or town.

B. This section does not restrict the ability of a city or town to enter into mutual aid or intergovernmental agreements with other cities or towns to respond to requests for emergency assistance.

C. This section does not apply to a city or town if all of the following apply:

The city or town provides waste or garbage collection services, landfill services or recycling collection or processing services outside its boundaries in an unincorporated territory that is within three miles of its boundaries and within its municipal planning area as designated in the land use map of the municipality's general plan.
The city or town does not provide waste or garbage collection services, landfill services or recycling collection or processing services in an incorporated area other than its own.
The city or town is located in a county with a population exceeding two million persons or the city or town has a population of less than two thousand five hundred persons and allows private enterprise to provide commercial and residential waste or garbage collection services, landfill services or recycling collection or processing services in the city or town.

D. For a city or town that has entered into a contract or mutual aid, reciprocal assistance or intergovernmental agreement with another entity before January 1, 2015 for landfill services or recycling collection or processing services outside of its boundaries, this section does not apply until the contract or mutual aid, reciprocal assistance or intergovernmental agreement expires or terminates or January 1, 2020, whichever is earlier.

E. This section does not apply to the disposal of noncommercial solid waste from a single-family residence brought to a municipal landfill by a private person who resides outside of the municipal boundaries.

F. This section does not apply to a city or town with a population of less than five thousand persons and that only provides landfill services or recycling collection or processing services outside of its boundaries.

§ 9-512 Issuance of bonds; service rates

A. The municipal corporation, for any and all purposes provided in section 9-511, may issue and sell bonds bearing interest not to exceed nine per cent per annum.

B. When the enterprise or public improvement has been purchased or constructed by means derived from the sale of bonds, the municipality shall fix the rates charged for service to the public as nearly as practicable so as to pay the interest and not less than three per cent per annum on the principal of the bonds, in excess of the expense of maintenance and operation.

§ 9-513 Lease of privately owned utility

A. When it is impracticable to issue bonds as provided by section 9-512 for an improvement or enterprise deemed necessary for the public welfare, the municipal corporation may lease at a stipulated rental a public improvement or utility.

B. The rental contract shall reserve to the municipal corporation the option to purchase the improvement or utility in the future.

§ 9-514 Authority to engage in utility business

A. Except as provided in section 9-571, before construction, purchase, acquisition or lease by a municipal corporation, as authorized in sections 9-511, 9-511.01, 9-511.02, 9-512 and 9-513, of any plant or property or portion of plant or property devoted to the business of or services rendered by a public utility shall be undertaken, the construction, purchase, acquisition or lease shall be authorized by the affirmative vote of a majority of the qualified electors who are taxpayers of the municipal corporation voting at a general or special municipal election duly called and held for the purpose of voting on the question.

B. This section does not apply to the construction, purchase, acquisition or lease of water or sewage system utilities by a city or town incorporated pursuant to section 9-101.02.

§ 9-515 Purchase of existing utility plant and property; valuation; appeal

A. When a municipal corporation and the residents thereof are being served under an existing franchise by a public utility, the municipal corporation, before constructing, purchasing, acquiring or leasing, in whole or in part, a plant or property engaged in the business of supplying services rendered by such public utility, shall first purchase and take over the property and plant of the public utility.

B. The property and plant shall become the property of the municipal corporation upon payment by the municipal corporation of the fair valuation thereof within eighteen months after the determination of the valuation in the manner hereinafter provided.

C. The fair valuation of the public utility shall be the equivalent of the compensation to be paid for the taking of private property for public use as provided by article 2, chapter 8 of title 12, and the amount shall be determined by one of the following methods:

By agreement between the municipal corporation and the public utility.
By arbitrators chosen in a manner agreed upon at the time by the municipal corporation and the public utility.
By a court of competent jurisdiction determining the compensation for the taking of private property for public use as provided by article 2, chapter 8 of title 12.

D. The municipal corporation and the public utility shall have right of appeal as provided by article 2, chapter 8 of title 12.

§ 9-516 Declaration of public policy; eminent domain

A. It is declared as the public policy of the state that when adequate public utility service under authority of law is being rendered in an area, within or without the boundaries of a city or town, a competing service and installation shall not be authorized, instituted, made or carried on by a city or town unless or until that portion of the plant, system and business of the utility used and useful in rendering such service in the area in which the city or town seeks to serve, has been acquired.

B. The city or town which seeks to acquire the facilities of a public service corporation shall have the right to do so under eminent domain. Such action shall be brought and prosecuted in the same manner as other civil actions.

C. A city or town acquiring the facilities of a public service corporation rendering utility service without the boundaries of such city or town, or which renders utility service without its boundaries, shall not discontinue such service, once established, as long as such city or town owns or controls such utility. A city or town which renders utility service outside of its boundaries as prescribed by this subsection shall not be prohibited from selling a part of its utility operation to another utility which operates under regulations prescribed by law.

D. It is declared the public policy of the state that when a city or town has purchased the property or plant of a public utility serving in an area within or without the boundaries of the city or town pursuant to this article, the corporation commission shall not be authorized or empowered to grant a new certificate of convenience and necessity or franchise to any person, firm or corporation to provide the same kind of public utility service within the area or territory previously authorized to said public utility under its certificate of convenience and necessity or franchise, but if the city or town refuses to provide utility service to a portion or part of the area or territory previously authorized to the public utility, the corporation commission may issue a new certificate of convenience and necessity or franchise to a public utility to provide utility service in that portion or part of the area or territory.

§ 9-517 Exception to purchase requirement

When a public utility operating under an existing franchise wilfully and persistently violates any provision of the franchise, the municipal corporation shall thereby be relieved from purchasing or taking over the property or plant of the public utility.

§ 9-518 Compensation for taking public utility; procedure for determining

A. Whenever the fair valuation of the plant and property of a public utility has not for any reason been determined by any other method provided by law, or where no other method is provided, the city or town may, subject to the provisions of this section, by the exercise of the right of eminent domain institute an action pursuant to article 2, chapter 8, of title 12, and the court or jury shall, in the manner hereinafter provided, ascertain and assess the compensation to be paid for the taking of the plant and property of the public utility.

B. The court or jury shall ascertain the compensation to be paid for the taking of the plant and property of the public utility, which shall include the fair and equitable value of such plant and property, including its value as a going concern, and the actual and consequential damages, if any, sustained by the public utility by reason of the severance from the other plant and property of the public utility of the plant and property to be taken. Compensation and damages shall be fixed as of the date of the commencement of the trial at which such compensation and damages are finally determined.

C. Any party of the action may appeal to the supreme court in the same manner as is provided for appeals in other civil actions by filing a notice of appeal with the superior court within thirty days from the entry of the judgment or order appealed from and posting a bond for costs. Any such appeal to the supreme court shall be preferred and shall be heard and determined in preference to other civil matters, except election actions, habeas corpus, quo warranto, mandamus, injunction and other extraordinary writs to state officers and inferior courts of which the supreme court has original jurisdiction.

D. Within six months after the date when the judgment has become final following an appeal, or within six months after the expiration of the time allowed by this section for appeal if no appeal is taken, the city or town shall pay into court the amount fixed by the judgment for the use of the public utility and such other persons as the judgment may provide. The public utility and such other persons as the judgment may provide who are entitled to the money paid into court may demand and receive the money at any time after its deposit upon filing a satisfaction of the judgment or a receipt for the money. If the city or town fails or refuses to pay the amount of the judgment into court within such period of six months, the court shall vacate the judgment and enter judgment dismissing the complaint and taxing costs in favor of the defendants in the action, including in such event a reasonable allowance for engineering costs and expert witness fees.

E. Within thirty days after the date when the judgment becomes final following an appeal, or within thirty days after the expiration of the time allowed for appeal if no appeal is taken, the public utility shall file with the court a report, verified under oath, of the amounts actually expended by it for additions, betterments, improvements and extensions which it has been required to make between the date of the commencement of trial and the date of such report, together with an estimated forecast of the amounts it will be required to make for the public convenience and necessity during the ensuing six months. Thereafter, and until the expiration of the time provided for the payment by the city or town of the amount of the judgment into court, the public utility shall every thirty days file with the court a verified supplemental report of the amounts it has actually expended for such purposes since the date of the initial report. Such reports may be considered by the court in determining the amount of the deposit to be made or bond to be posted by the city or town as provided by subsection F, and may be considered at the trial provided by subsection I but shall not be conclusive of the amount to be ascertained as the compensation to be paid by the city or town for such additions, betterments, improvements and extensions.

F. Upon payment of the amount of the judgment into court within the time provided, the city or town shall make application to the court for an order permitting it to take possession of, and use and operate the plant and property of the public utility, including the additions, betterments, improvements and extensions for the public convenience and necessity which the public utility has been or will be required to make between the date of the commencement of the trial and the date of taking possession thereof by the city or town. Upon filing the application a time shall be fixed by the court for a hearing to determine the probable fair and equitable value of such additions, betterments, improvements and extensions, and written notice of such hearing shall be given to the public utility and other defendants, if any, at least ten days prior to the date fixed, by service of a copy of such notice in such manner as the court directs. On the day fixed for the hearing, the court shall determine the probable value of the additions, betterments, improvements and extensions which the public utility has been required to make since the date of the commencement of the trial, and shall direct that upon deposit of money, or the posting of a bond with good and sufficient sureties, in the amount so determined, the city or town shall be let into the possession and full use of the plant and property of the public utility described in the judgment, together with the additions, betterments, improvements and extensions made since the date of commencement of the trial. Upon deposit of the money or the posting of a bond in the required amount, the city or town may go into the possession and full use of the plant and property of the public utility, described in the judgment, together with the additions, betterments, improvements and extensions referred to in the order of the court. No appeal may be taken from an order of the court determining the amount of the deposit to be made or the bond to be posted by the city or town.

G. The parties may stipulate as to the amount of the deposit or of the bond in lieu of the deposit; but such stipulation or evidence of such deposit or of the bond shall not be introduced in evidence or used to the prejudice of any party to the action.

H. At the hearing to fix the probable value of the additions, betterments, improvements and extensions, the court shall direct the parties to file such supplemental pleadings as the court may deem necessary to set forth the claims of the public utility with respect to such value and the response of the city or town thereto, shall fix the time within which such pleadings should be filed, and shall set the matter for trial before the court or a jury for the purpose of ascertaining the compensation to be paid for the additions, betterments, improvements and extensions required to be made by the public utility between the date of commencement of the trial and the date the city or town is let into possession of the public utility's plant and property.

I. The court or jury shall ascertain the compensation to be paid for additions, betterments, improvements and extensions, which shall be the fair and equitable value thereof as of the date the city or town took possession of the public utility plant and property, and the amount so determined shall draw interest at the legal rate from such date. In fixing such value such additions, betterments, improvements and extensions shall not be considered or treated as being severed from the plant and property included in the judgment theretofore entered. Such additions, betterments, improvements or extensions shall be deemed to have been made for the public convenience and necessity, if such additions, betterments, improvements or extensions are found by the court to have been reasonably necessary and prudently made as incidental capital expense in the ordinary and usual conduct of a public utility business, or if the additions, betterments, improvements or extensions were ordered to be made by the corporation commission. Upon such value being determined a supplemental judgment shall be entered therefor, from which any party to the action may appeal to the supreme court in the same manner and within the same time as is provided for appeals from the judgment in the action, except that any asserted grounds for appeal shall be limited to those arising in the proceeding to fix the compensation to be paid for the betterments, additions, improvements and extensions.

J. Within ninety days after the date said supplemental judgment has become final following an appeal, or within ninety days after the expiration of the time allowed for appeal if no appeal is taken, the city or town shall pay into court all amounts fixed by the supplemental judgment for the use of the public utility and such other persons as the supplemental judgment shall provide, less any amount theretofore deposited with the court if such amount be less than the supplemental judgment. If the city or town shall have posted a bond, all amounts provided by the supplemental judgment shall be paid into court and the bond exonerated. The public utility and such other persons as the supplemental judgment may provide may demand and receive from the money deposited the amount of the supplemental judgment with interest and costs, if any.

K. If the complaint of the city or town is dismissed as provided by subsection D, no action in court to acquire or take the same plant and property of the public utility, or any portion thereof, shall be instituted by the city or town within three years after such dismissal.

L. All proceedings and trials provided by this section shall be preferred and shall be heard and determined in preference to other civil matters, except election actions.

M. The provisions of this section for ascertaining and assessing compensation for the taking of the plant and property of a public utility and the obtaining of possession and use of such property by a city or town are intended to be remedial.

§ 9-519 Common carriers; duplication of service prohibited

When territory within or without the corporate limits of a municipal corporation is being adequately served by a common carrier of passengers under authority of law, the municipal corporation shall not engage in business as a common carrier of passengers over the route or routes or within the territory being served by the common carrier.

Article 3 Municipal Bonds for Financing Utilities

§ 9-521 Definitions

In this article, unless the context otherwise requires:

"Bond" means any bond issued pursuant to this article, including any tax secured bond.
"Governing body" means the board, commission or other body having charge of the financial affairs of a municipality.
"Municipality" means any incorporated city or town.
"Tax secured bond" means any bond authorized and issued pursuant to both this article and title 35, chapter 3, article 3.
"Utility undertaking" means any one or combination of the following:

(a) Electric light or power, water, storm water, sewer, gas, common carrier of passengers, garbage, or rubbish plant or system, including but not limited to disposal, treatment or reduction plants, buildings, incinerators, dams and reservoirs.

(b) Airport buildings or other airport facilities or buildings or structures to provide off-street parking of motor vehicles, together with all parts thereof and appurtenances thereto.

§ 9-521.01 Recreational facilities

A. For the purposes of this article only, the term "utility undertaking", in addition to the definition prescribed in section 9-521, shall mean recreational facilities.

B. "Recreational facilities" means swimming pools, parks, playgrounds, municipal golf courses, and ball parks.

C. Provisions of this section shall apply only to municipalities of seventy-five thousand or less.

§ 9-522 Power to issue bonds

A. In addition to its other powers, a municipality may:

Subject to the requirements and restrictions of sections 9-515 through 9-518, within or without its corporate limits, construct, improve, reconstruct, extend, operate, maintain and acquire, by gift, purchase or the exercise of the right of eminent domain, a utility undertaking or part thereof, and acquire in like manner land, rights in land or water rights in connection therewith.
Issue its bonds to finance the cost thereof.
Pledge to the punctual payment of the bonds and interest on such bonds an amount of the revenue of the utility undertaking, including improvements or extensions thereafter constructed or acquired, sufficient to pay the bonds and interest as they become due, and create and maintain reasonable reserves therefor. The amount pledged may consist of all or any part of such revenue.
With respect to tax secured bonds, pledge its full faith and credit to the payment of the bonds and interest on such bonds and if such pledge is made shall provide for the levy of a tax for the payment of the bonds pursuant to title 35, chapter 3, article 3.

B. The governing body of the municipality, in determining the cost of the utility undertaking for which bonds are to be issued, may include all costs and estimated costs of issuance of the bonds, all engineering, inspection, fiscal and legal expenses allowed by law and interest which it is estimated will accrue on money borrowed or which will be borrowed during the construction period and for six months thereafter.

§ 9-523 Bond election

Questions on bond issues under this article shall be submitted to the qualified electors of the municipality. No bonds shall be issued without the assent of a majority of the qualified electors voting at an election held for that purpose as provided in this article.

§ 9-524 Election order and call; publication; posting

A. The governing body shall order and call an election upon the question of the issuance of bonds. The order and call shall state in substance:

The maximum amount of bonds to be issued.
The purpose for which the bonds are to be issued.
The maximum rate of interest which the bonds are to bear.
A brief concise statement, which need not include any detail other than the mere statement of the fact, showing that the bonds will be payable solely from revenues unless the bonds are to be tax secured bonds in which case the order and call shall state in substance that the bonds shall be payable from revenues and shall additionally be payable from taxes levied upon all taxable property in the municipality.
The date on which the election is to be held as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d).
The places where votes may be cast.
The hours between which polling places will be open.

B. The order and call of election shall be published in full at least once, not less than fifteen nor more than thirty days prior to the date of the election, in a newspaper published in the county and of general circulation in the municipality. If there is no such newspaper, the order and call shall be printed in full and posted in five conspicuous places in the municipality not less than fifteen nor more than thirty days prior to the date of the election.

C. If the bonds are to be tax secured bonds, the order and call of election shall state, in addition to the requirements of subsection A of this section, the matters required by title 35, chapter 3, article 3 and shall be posted and published as required by that article rather than as provided in subsection B of this section.

§ 9-525 Registration of voters

The governing body may require the registration of all persons desiring to vote at the election, in which case the election resolution shall state the dates, times and places when and where such persons may register. Registration shall begin not less than ten and shall close not less than five days prior to the date of the election.

§ 9-526 Form of ballot

At the election the ballot shall contain the phrases "for the bonds" and "against the bonds." To the right of and opposite each phrase shall be placed a square approximately the size of squares placed opposite the names of candidates on ballots. The voter shall indicate his vote "for the bonds" or "against the bonds" by inserting the mark "x" in the square opposite such phrase. No other question, word or figure need be printed on the ballot. The ballot need not be any particular size, nor need sample ballots be printed, posted or distributed. A number of ballots, exceeding by not less than ten per cent the number of registered voters whose names appear on the precinct register of the precinct, town or city for which printed, shall be printed and furnished each polling place.

§ 9-527 Canvass of votes

A. The governing body shall canvass the returns and declare the result of the election. If it appears to the governing body that a majority of the qualified electors voting thereon assent to issuance of the bonds, the governing body shall provide for their issuance.

B. The determination of the governing body that a majority of the qualified electors voting thereon have assented to issuance of the bonds shall be conclusive in any action or proceeding involving the validity of the election or determination or declaration of the result thereof instituted after the date of delivery of and payment for the bonds.

§ 9-528 Application of election laws

Except as otherwise provided in this article, the manner of conducting the registration and election, keeping the poll lists, making the returns, declaring the results and doing all acts relating to the election shall conform to the procedure provided by law for the registration and qualification of electors and holding elections wherein the question of issuance of bonds of municipal corporations is submitted to an election.

§ 9-529 Form of bonds; payment and call; interest; sale; bids; interim receipts; rates and procedures; definition

A. Bonds issued under this article shall be fully negotiable within the meaning and for all purposes of title 47. They may be in one or more series, may bear dates, may be payable in a medium of payment, at places, may carry registration privileges, shall be executed in a manner, may contain other terms, covenants and conditions, and shall be in a form as the governing body may by resolution prescribe. They shall be payable at one time, or from time to time, in a manner and in maturities not longer than thirty years from their date as the governing body may prescribe. Any or all of the bonds may be callable at times, on terms and in a manner as the governing body by resolution may prescribe.

B. Any or all of the bonds may be sold by calling for bids at public sale, through an on-line bidding process, under an accelerated bidding process or by negotiated sale. If sold under an accelerated bidding process, the bonds shall be sold at the lowest cost the governing body deems then available after having received at least three pricing quotations from recognized purchasers of bonds of the type being sold, and if sold at public sale or through an on-line bidding process to the person offering the best bid.

C. The bonds may be sold below, at or above par. If the bonds are sold below par, the aggregate amount of discount plus interest to be paid on the bonds must not exceed the amount of interest that would be payable on the bonds over the maturity schedule prescribed by the governing body at the maximum rate set out in the resolution calling the election at which the bonds were voted.

D. If sold at public sale, the governing body shall call for bids by giving notice of the sale at least once a week for two successive weeks in cities having a population of fifteen thousand or more persons, and once a week for four successive weeks in all other cities and towns by publication in a newspaper of general circulation within the county. The notice shall be in the form the governing body prescribes. If bonds are sold through an on-line bidding process, bids for the bonds that are entered into the system may be concealed until a specified time or disclosed in the on-line bidding process, may be subject to improvement in favor of the municipality before a specified time and may be for an entire issue of bonds or specified maturities according to the manner, terms and notice provisions ordered by the governing body. These bids shall be for the entire bond issue unless the governing body by resolution allows bidding in parcels for less than the entire issue.

E. Notwithstanding any other provision of this section, bonds may be sold to natural persons residing in this state by negotiated sale on terms the governing body deems to be the best then available and may bear interest payable at such times as determined by the governing body. The bonds may be sold below, at or above par, but if an issue of bonds is sold below par, the aggregate amount of discount plus interest to be paid on the bonds must not exceed the amount of interest that would be payable on the bonds over the maturity schedule prescribed by the governing body at the maximum rate set out in the resolution calling the election at which the bonds were voted.

F. Pending preparation of the definitive bonds, interim receipts or certificates may be issued to the purchasers of the bonds in a form and with provisions as the governing body may determine.

G. Bonds issued by municipalities may bear interest at any rate or rates not in excess of the maximum rate of interest set forth in the resolution calling the election, payable at the times determined by the governing body, provided that each bond may be evidenced by one instrument, or if commercial paper by a succession of instruments each bearing interest payable only at maturity. Bonds or commercial paper issued under this article shall be subject to the following:

The bonds may bear interest at a fixed, variable or combination rate, none of which exceeds the maximum rate of interest set forth in the resolution calling the election.
A variable rate shall be based on any objective measure of the current value of money borrowed such as the announced prime rate of a bank, the rates borne by obligations of the United States or an index or other formula provided for by the governing body. The governing body shall employ a recognized agent in municipal bonds to market and remarket the bonds or commercial paper issued and to establish an interest rate in accordance with the approved index or formula.
The governing body may grant to the owner of any bond a right to tender or may require the tender of the bond for payment or purchase at one or more times before maturity and may enter into appropriate agreements with any bank, other financial institution, insurance company or indemnity company for the purchase of bonds so tendered. The agreement may provide that while the bonds are held by the bank, financial institution, insurance company or indemnity company the bonds may bear interest at a rate higher than when the bonds are held by other owners, but not in excess of the maximum rate of interest set forth in the resolution calling the election.
If bonds are tendered before maturity under an agreement to pay for or purchase bonds when tendered, the municipality may provide for the purchase and resale of the bonds pursuant to the tenders without extinguishing the obligation represented by them or incurring a new obligation on the resale, whether or not the bonds are represented by the same instruments when purchased as when resold.
Compensation for the resale of the bonds shall not be based on or measured by the difference between the price at which the bonds are purchased and the price at which they are resold.
The governing body may:

(a) Contract with a bank, other financial institution, insurance company or indemnity company to provide additional security for the bonds in the form of a line of credit, letter of credit, insurance policy or other security.

(b) Pay the costs of the additional security from amounts provided in the bond issue or from other available sources and may enter into reimbursement obligations in connection with the cost of the additional security.

Any reimbursement obligation entered into with the bank, financial institution, insurance company or indemnity company shall not provide for the payment of interest in excess of the maximum rate of interest set forth in the resolution calling the election. The reimbursement obligation does not constitute a general obligation of the municipality and is payable from the same source as the bonds, or from other available revenues, as determined by the governing body. However, use of other available revenues does not create an indebtedness under article IX, section 8, Constitution of Arizona.
Variable rate bonds and commercial paper may be sold at competitive public sale, through an on-line bidding process or at negotiated sale. A competitive public sale may be accomplished pursuant to a notice of sale published at the times and in the manner provided in this section. The notice shall provide terms and conditions as may be determined by the governing body.
If bonds are to be issued in the form of commercial paper, the governing body shall first establish the schedule for the maturities of the bonds within the maximum period permitted by the voted proposition. The individual instruments representing the bonds may mature over shorter periods and may be retired before maturity with proceeds of subsequent instruments, or with the proceeds of definitive bonds, but they shall be finally paid according to the schedule of bond maturities or earlier.
Bonds issued in the form of commercial paper may be sold through an agent in the form of instruments which mature at intervals the agent determines to be most advantageous to the issuer after giving public notice to potential investors as determined by the governing body.
Bonds may be issued as compound interest bonds bearing interest payable only at maturity but compounded periodically until that date at a fixed rate no higher than the rate set forth in the resolution calling the election.

H. For purposes of this section, "on-line bidding process" means a procurement process in which the governing body receives bids electronically over the internet in a real-time, competitive bidding event.

§ 9-530 Service charges; taxation and budgeting; computation

A. The governing body of the municipality issuing the bonds shall prescribe service charges, and shall revise them when necessary, so that a utility undertaking for which the bonds were issued shall always remain self-supporting with revenue sufficient:

To pay when due all bonds, interest and continuing fees and expenses on the bonds or, if applicable, on the reimbursement agreement, for the payment of which the revenue has been pledged, encumbered or charged.
To provide for all expenses of operation, maintenance, expansion and replacement of facilities.
To provide reasonable reserves.

B. Until payment of all bonds on any public utility issued under this article, and the expiration of the municipal fiscal year in which the bonds are paid in full, no receipts segregated or collected for the purpose of paying the principal of and interest and redemption charges on bonds and other lawful long-term obligations issued or incurred for a specific capital purpose shall be subject to the provisions of title 42, chapter 17.

C. In computing the annual interest requirements of bonds described in section 9-529, subsection G, the governing body shall determine a rate which is not more than the maximum rate permitted under the terms of their issuance. In making the determination, the governing body shall set a rate that is not less than one hundred twenty-five per cent of the rate in effect on the date of determination, or if the bonds are not then issued, one hundred twenty-five per cent of the initial rate on the bonds, except that if such determination exceeds the maximum rate permitted under the terms of issuance, the rate shall be the maximum rate.

§ 9-531 Provisions of resolution for bond issue; covenants

A. A resolution pertaining to issuance of bonds under this article may contain covenants as to:

The purpose to which the proceeds of sale of the bonds may be applied and to the use and disposition thereof.
The use and disposition of the revenue of the utility undertaking for which the bonds are to be issued.
The issuance of other or additional bonds, payable from the revenue of the utility undertaking.
The operation and maintenance of the utility undertaking.
The insurance to be carried thereon and the use and disposition of insurance monies.
Books of account and the inspection and audit thereof.
The terms and conditions upon which the holders of the bonds, or any proportion of them or a trustee therefor, shall be entitled to the appointment of a receiver, who may enter and take possession of the utility undertaking, operate and maintain it, prescribe charges and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the municipality itself might do.

B. The provisions of this article and any such resolution shall be deemed a contract with the holders of the bonds, and the duties of the municipality and its governing body and officers under this article and such resolution shall be enforceable by mandamus or other appropriate action in a court of competent jurisdiction.

§ 9-532 Utility receipts and bond proceeds; handling and disposition

A. All proceeds received from sale of the bonds, all fees, rents, tolls or other charges received by the municipality from a utility undertaking financed by the bonds, and all monies received from any source in connection therewith shall be paid to the finance officer of the municipality designated by the governing body thereof for such purposes. The finance officer shall not commingle any money received under the terms of this article with any other monies, but the monies received shall be deposited in a separate bank account in the name of the municipality.

B. The governing body may by resolution provide that all deposits of such proceeds, fees, rents, tolls or other charges, and the monies received under the terms of this article shall be secured by obligations of the United States or of this state of a market value equal at all times to the amount of the deposits provided by this article, and all banks and trust companies are authorized to give such security for the deposits.

§ 9-533 Validity of bonds

A. Bonds issued under this article and bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the municipality issuing the bonds.

B. The validity of the bonds shall not be dependent on or affected by the validity or regularity of any proceedings relating to the construction, acquisition, improvement, reconstruction or extension of the utility undertaking financed by the bonds or taken in connection therewith.

§ 9-534 Certification of bonds by attorney general

A. A municipality may submit to the attorney general bonds to be issued under this article after all proceedings for their issuance have been taken, and thereupon it shall be the duty of the attorney general to examine the bonds and pass upon the validity thereof and the regularity of the proceedings authorizing their issuance.

B. If such proceedings conform to the provisions of this article, and the bonds when delivered and paid for will constitute binding and legal obligations of the municipality according to the terms thereof, the attorney general shall certify in substance upon the back of each bond that it is issued in accordance with the constitution and laws of this state.

§ 9-535 Prior lien of bonds

A. Except as otherwise provided in the resolution authorizing the bonds, all bonds of the same issue under this article shall have a prior and paramount lien on the revenue of the utility undertaking for which the bonds have been issued over and ahead of bonds of an issue payable from that revenue which may be subsequently authorized, and over and ahead of claims or other obligations of any nature against that revenue subsequently arising or subsequently incurred.

B. Bonds of the same issue issued under this article shall be equally and ratably secured, without priority by reason of number, date, sale, execution or delivery, by a lien on the revenue in accordance with the terms of the resolution authorizing the bonds.

§ 9-535.01 Refunding bonds and revenue-producing undertaking; refunding utility purchase contracts; form; sale and investment of proceeds; limitation on amount issued

A. Bonds may also be issued hereunder for the purpose of refunding any bonds issued under authority of this article or any bonds issued under the authority of title 35, chapter 3, article 3 or 4, for the acquisition, construction or improvement of any utility undertaking. If any city or town has outstanding unpaid balances on contracts heretofore entered into for the acquisition of water or other utility properties or facilities and such contracts are payable solely from the revenues thereof or of the utility undertaking extended or added to with the properties or facilities so acquired, whether or not title to such properties or facilities shall have vested in such city or town, all or any part of such unpaid balances may also be refunded hereunder and all such contracts so refunded are hereby validated and declared to be effective in accordance with their terms. No election on the issuance of such bonds shall be required, but if such bonds are combined into a single issue with bonds authorized for nonrefunding purposes hereunder, the bonds so authorized for nonrefunding purposes shall have been submitted at an election as otherwise provided in this article.

B. Refunding bonds issued hereunder shall have such details, shall bear such rate or rates of interest, and shall be otherwise issued, sold and secured as provided by the governing body of the city or town and as otherwise provided in this article, except that such changes in the security and revenues pledged to the payment of the obligations so refunded may be made by the governing body as may be provided by it in the proceedings authorizing such bonds, but in no event shall such bonds ever become a general obligation of the municipality issuing such refunding bonds unless such refunding bonds or the bonds to be refunded are tax secured bonds.

C. Refunding bonds issued hereunder may be exchanged for no less than a like principal amount of the bonds or unpaid contract obligations to be refunded, may be sold at a private or public sale or may be exchanged in part and sold in part. If sold, the net proceeds may be invested in obligations issued by the United States government, or one of its agencies, or obligations fully guaranteed by the United States government as to principal and interest so long as such investments will mature with interest so as to provide funds to pay when due, or called for redemption, the bonds or unpaid contract obligations to be refunded together with interest thereon and redemption premiums, if any, and such proceeds or obligations shall, and other funds legally available to the city or town for such purposes may be deposited in trust with a banking corporation or association doing business in Arizona that is a member of the federal deposit insurance corporation, or any successor thereto, to be held for the payment and redemption of bonds or unpaid contract obligations to be refunded and such deposit and any reinvestment thereof shall be held in trust by the escrow agent for the payment of bonds or unpaid contract obligations with interest and redemption premiums, if any, on maturity or on an available redemption date or on an earlier voluntary surrender with the consent of the issuer. As to obligations so escrowed for the payment of contract balances payable in amounts or at times not fixed but dependent on earnings of the undertaking, it shall be sufficient if the obligations so purchased, if liquidated on the market at the par value thereof, will produce enough to pay such balances as the governing body estimates would have become payable under the terms of the contracts had such balances not been refunded, but the escrowed obligations must be not less in principal amount than the principal amount of the balances so refunded, and if at any time the income from the escrowed obligations is insufficient to pay all interest when payable on such refunded balances, such deficiencies shall be made up from the earnings of the undertaking on such priority basis as would have been applicable to such payment had such balances not been refunded. The term "net proceeds" as used above shall mean the gross proceeds of the refunding bonds after the deduction therefrom of all accrued interest and expenses incurred in connection with the authorization and issuance of the bonds and the refunding of the outstanding obligations, including all cost and expenses resulting from price variation to par or otherwise incurred in the purchase of obligations for escrow and in the distribution of the refunding bonds. The determination of the governing body issuing refunding bonds that the limitations herein imposed on the issuance of refunding bonds have been met shall be conclusive in the absence of fraud or arbitrary and gross abuse of discretion.

D. Bonds or unpaid contract obligations not maturing or callable for redemption under their terms may not be refunded hereunder without the consent of the holders unless the proceedings authorizing the issuance of the refunded bonds provide that they may be so refunded.

E. With respect to bonds issued to refund tax secured bonds, the provisions of title 35, chapter 3, article 4 shall govern in the event of any inconsistency between such article and this section.

§ 9-536 Payment of bonds

A. No holder of bonds issued under this article shall have the right to compel any exercise of the taxing power of the municipality to pay the bonds or the interest on such bonds. Each bond issued under this article shall recite in substance that payment of the bond and interest on such bond is enforceable exclusively from the revenue pledged to its payment.

B. Bonds issued under this article shall not be a debt of the municipality, nor shall payment of such bonds be enforceable out of any funds other than the revenue pledged to the payment of such bonds.

C. This section shall not apply to tax secured bonds issued pursuant to both this article and title 35, chapter 3, article 3.

§ 9-537 Supplemental nature of article

In so far as the provisions of this article are inconsistent with any other provision of law, the provisions hereof shall be controlling. The powers conferred by this article shall be in addition and supplemental to the powers conferred by any other law. Except as expressly provided in this article, the utility undertaking may be constructed, improved, reconstructed, extended and acquired, notwithstanding any other law providing for the construction, improvement, reconstruction, extension or acquisition of a like utility undertaking and without regard to the requirements, restrictions or other provisions contained in any law, including, but not limited to, sections 9-511 to 9-514, inclusive. Bonds may be issued under this article for any utility undertaking, notwithstanding that any other law may provide for the issuance of bonds for a like purpose and without regard to the requirements, restrictions or provisions contained in any other law.

§ 9-538 Validation of prior bonds

Bonds lawfully issued under the provisions of chapter 4, session laws of 1940, first special session, and chapter 107, session laws of 1941, regular session, are validated and confirmed.

§ 9-539 General powers of municipality under article

There is vested in a municipality by this article full power:

To issue revenue bonds for the purpose of paying the cost of the improvement, reconstruction, extensions and additions to any existing revenue-producing utility of any kind or class at the time owned and operated by the municipality, however acquired.
To pledge to the punctual payment of the revenue bonds and interest thereon the revenues of such existing revenue-producing utility, after making reasonable allowance for the cost of maintenance and operation thereof, together with the revenues of such utility undertaking, improvement, reconstruction, extensions and additions thereto for which the revenue bonds are to be issued.
To provide in the resolution pertaining to the issuance of revenue bonds for the use and disposition of all revenues pledged therein to the payment of principal and interest of the bonds, including the revenues of the existing revenue-producing utility to the fullest extent provided in the resolution and in addition thereto the revenues of the utility undertaking for which the bonds are to be issued, all on such terms and in such manner as the governing body of the municipality may provide or has in the resolution so provided.

§ 9-540 Validation of prior acts and proceedings; criterion for compliance

All acts and proceedings taken prior to March 13, 1947 by a municipality under this article, or under color of this article, for the authorization, issuance or sale of revenue bonds for any purpose stated therein, are confirmed, validated and declared legally effective, including all acts and proceedings of the governing body of such municipality and of any person, public officer, board or agency done or taken prior to March 13, 1947 upon the question of the authorization, issuance or sale of such bonds. All bonds authorized to be issued under this article whenever delivered in substantially the form contemplated in such authorization, shall be in the form and manner in which delivered valid, legal and binding obligations of the municipality, payable in accordance with the resolution pertaining to their issuance and secured by the revenues therein pledged and allocated to their payment, and by the covenants and agreements set forth in the resolution authorizing their issuance.

Article 4 Industrial Gas Pipelines

§ 9-551 Definitions

In this article, unless the context otherwise requires:

"Industrial gas pipeline" means any pipeline or system of pipelines and all necessary appurtenances to the pipeline or system used to transport inert, nontoxic, nonflammable gas for industrial purposes to industrial users who pay for the service but does not include any pipeline or system of pipelines that transports gas for power, light or fuel.
"Intergovernmental contract" means a joint exercise of powers agreement authorized by title 11, chapter 7, article 3.
"License" means that ordinance or resolution which contains the right, authority or grant given by a licensing authority enabling the license holder to construct, operate and maintain an industrial gas pipeline.
"Licensing authority" means the board of supervisors of a county or the governing body of an incorporated city or town.

§ 9-552 Authority to issue license

A. For the purpose of authorizing and regulating the construction, operation and maintenance of industrial gas pipelines, the licensing authority of a city or town for an incorporated area, or the licensing authority of a county for an unincorporated area, either individually or jointly by intergovernmental contract, may issue a license to any person to use public streets, roads and alleys and shall impose conditions, restrictions and limitations upon the use of the public streets, roads and alleys and upon the construction, operation and maintenance of industrial gas pipelines.

B. The licensing authority may adopt resolutions or ordinances implementing and controlling the license or joint license. The license issued by a licensing authority may contain provisions and may establish a permit fee.

§ 9-553 Application for license; hearing; terms; conditions

A. Any person desiring to obtain a license to construct, operate and maintain an industrial gas pipeline from a licensing authority shall apply to the licensing authority in a form specified by the licensing authority and shall comply with requirements specified by the licensing authority.

B. Prior to the issuance of a license, the licensing authority shall hold a public hearing within the city, town or county where application has been made, following reasonable notice to the public, at which every applicant and its proposals shall be examined and the public and all interested parties afforded a reasonable opportunity to be heard. Reasonable notice to the public includes causing notice of the time and place of the hearing to be published in a newspaper of general circulation in the city, town or county where application has been made once a week for two consecutive weeks. The first publication shall not be less than fourteen days before the day of the hearing. If there is no such newspaper in the city, town or county where application has been made, notice shall be posted in a conspicuous place in the city or town hall, if applicable, or other suitable location determined by the respective licensing authority for a period of not less than fourteen days before the day of the hearing.

§ 9-554 License required before construction

A. A new industrial gas pipeline shall not be constructed within any incorporated city or town or within the unincorporated area of a county before a license is issued as provided in this article.

B. A licensing authority may terminate a license according to its terms and conditions if a license holder is in default under the license.

Article 6 Financial Assistance from the Water Infrastructure Finance Authority of Arizona

§ 9-571 Wastewater treatment and drinking water treatment facilities and nonpoint source projects; financial assistance loan repayment agreements; definitions

A. Notwithstanding any other law, a city or town may construct, acquire from a willing seller or improve a wastewater treatment facility, drinking water facility or nonpoint source project with monies borrowed from or financial assistance including forgivable principal provided by the water infrastructure finance authority of Arizona.

B. To repay financial assistance from the water infrastructure finance authority of Arizona a city or town may enter into a financial assistance loan repayment agreement with the authority. A financial assistance loan repayment agreement is payable from any revenues otherwise authorized by law to be used to repay long-term obligations. If revenue from a property tax assessment is the designated source of repayment under the agreement, the property tax assessed and levied is a secondary property tax levy for purposes of article IX, Constitution of Arizona.

C. For any city or town, the following apply:

For a city or town with a population of more than one hundred fifty thousand persons, the governing body of the city or town shall submit the question of entering and performing a financial assistance loan repayment agreement to the qualified electors voting at a regular or special election in the city or town, except that if revenue from a secondary property tax levy is the designated source of repayment or if the project is constructed with an improvement district, the question shall be submitted to the qualified electors at an election held on the first Tuesday following the first Monday in November.
For a city or town with a population of one hundred fifty thousand persons or less, the revenues of the city's or town's utility system or systems may be pledged to the payment of the repayment agreement without an election, if the pledge of revenues does not violate any covenant pertaining to the utility system or systems or the revenues pledged to secure outstanding bonds or other obligations of the city or town.
An election is not required if voter approval has previously been obtained for substantially the same project with another funding source.
If a majority of the qualified electors voting on the question:

(a) Approves, the governing body may execute, deliver and perform the financial assistance loan repayment agreement.

(b) Disapproves, the governing body shall not execute a financial assistance loan repayment agreement.

D. Payments made pursuant to a financial assistance loan repayment agreement are not subject to section 42-17106.

E. A financial assistance loan repayment agreement entered into pursuant to this section shall contain the covenants and conditions pertaining to constructing, acquiring or improving a wastewater treatment or drinking water facility or nonpoint source project and repaying the loan as the water infrastructure finance authority of Arizona deems proper. Financial assistance loan repayment agreements may provide for paying interest on the unpaid principal balance of such agreement at the rates established in the agreement. The agreement may also provide for paying the city's or town's proportionate share of the expenses of administering the clean water and drinking water revolving funds established by sections 49-1221 and 49-1241 and may provide that the city or town pay financing and loan administration fees approved by the water infrastructure finance authority. These costs may be included in the levy or assessment amounts pledged to repay the financial assistance. Cities and towns are bound by and shall fully perform the loan repayment agreements, and the agreements are incontestable after the loan is funded by the water infrastructure finance authority of Arizona. The city or town shall also agree to pay the authority's costs in issuing bonds or otherwise borrowing to fund a loan.

F. A financial assistance loan repayment agreement under this section does not create a debt of the city or town, and the authority shall not require that payment of a financial assistance loan repayment agreement be made from other than those sources allowed in subsection B of this section and as prescribed by sections 49-1225 and 49-1245.

G. A city or town may employ attorneys, accountants, financial consultants and such other experts in their field as deemed necessary to perform services with respect to the financial assistance loan repayment agreement.

H. This section is supplemental and alternative to any other law under which a city or town may borrow money or issue bonds. This section is not the exclusive authorization to enter into loan agreements with the authority.

I. A city or town may borrow additional monies or enter into additional financial assistance loan repayment agreements with the water infrastructure finance authority in an amount up to the amount approved by the voters pursuant to subsection C of this section less the amount that the city or town is already obligated to repay to the water infrastructure finance authority pursuant to a financial assistance loan repayment agreement.

J. The water infrastructure finance authority may not provide funds to a city or town to either:

Condemn or acquire through eminent domain any assets of a public service corporation that is regulated by the corporation commission without a written statement from the public service corporation certifying that it is a willing seller and consenting to the provision of funding.
Refinance any loan, bond or other financing arrangement used by a city or town to condemn or acquire through eminent domain any assets of a public service corporation that is regulated by the corporation commission without a written statement from the public service corporation certifying that it is a willing seller and consenting to the provision of funding.

K. For the purposes of this section:

"City" includes both cities formed pursuant to this title and charter cities.
"Nonpoint source project" has the same meaning prescribed in section 49-1201.

Article 7 Charges for Use of Public Highways by Telecommunications Providers

§ 9-581 Definitions

In this article, unless the context otherwise requires:

"Commercial mobile radio service" means two-way voice commercial mobile radio service as defined by the federal communications commission in 47 United States Code section 157.
"Political subdivision" means a city, town or county, or a special district of a city, town or county.
"Public highway" or "highway" means all roads, streets and alleys and all other dedicated public rights-of-way and public utility easements of this state or a political subdivision.
"Telecommunications" means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received. The term does not include commercial mobile radio services, pay phone services, interstate services or cable services.
"Telecommunications corporation" means any public service corporation to the extent that it provides telecommunications services in this state.
"Telecommunications services" means the offering of telecommunications for a fee directly to the public, or to such users as to be effectively available directly to the public, regardless of the facilities used.

§ 9-582 Taxes and other charges; telecommunications facilities; limitations

A. A political subdivision shall not levy a tax, rent, fee or charge on a telecommunications corporation, including a telecommunications corporation that provides interstate services as described in section 9-583, subsection C, for the use of a public highway to provide telecommunications services, or levy a tax, fee or charge on the privilege of engaging in the business of providing telecommunications services within that political subdivision other than:

Any transaction privilege tax authorized by law on the business of providing telecommunications services, except that this section does not allow the imposition of a transaction privilege tax on the business of providing interstate telecommunications services. Any transaction privilege tax authorized by law on the business of providing commercial mobile radio service shall not exceed the tax rate levied on the business of providing telecommunications services.
A telecommunications application fee for the issuance of a telecommunications license or franchise if the application fee applies on a competitively neutral and nondiscriminatory basis to all telecommunications corporations that use the public highways to provide telecommunications services. A political subdivision may require only one application fee and one license or franchise for each telecommunications corporation whether the telecommunications corporation provides local services only or local and long-distance services, including intrastate or interstate services. An application fee is not required for a telecommunications corporation described in subsection E of this section.
A telecommunications construction permit fee for the issuance of a construction permit to place telecommunications facilities in the public highways if the permit fee applies on a competitively neutral and nondiscriminatory basis to all telecommunications corporations that place telecommunications facilities in the political subdivision's public highways to provide telecommunications services. Political subdivisions shall establish a nonbinding outside arbitration procedure to attempt to resolve disputes over recovery of reasonable, proportionate and attributable costs of construction permit fees pursuant to this paragraph and other fees pursuant to this article before the disputes are submitted to a court for resolution.
A fee under section 9-583, subsection C.

B. All application fees, permit fees and charges levied by a political subdivision on telecommunications corporations pursuant to subsection A, paragraphs 2 and 3 of this section shall be levied on a competitively neutral and nondiscriminatory basis and directly related to the costs incurred by the political subdivision in providing services relating to the granting or administration of applications or permits. These fees and charges also shall be reasonably related in time to the occurrence of the costs.

C. Notwithstanding subsections A and B of this section, a political subdivision may require a telecommunications corporation to bear all of the reasonable costs associated with construction, maintenance and operation of its facilities in the public highway used to provide telecommunications services, including bearing reasonable costs associated with damage caused to public highways.

D. Notwithstanding subsections A and B of this section, in a license or franchise, a political subdivision and a telecommunications corporation may agree to in-kind payments for use of the public highways different from those specified in subsection A or B of this section. The license or franchise shall be structured so that the in-kind payments made for use of the public highways to provide interstate telecommunications services under the license or franchise are less than or equal to and are offset against any linear foot charge owed pursuant to section 9-583, subsection C, paragraphs 2 and 3. The license or franchise shall be structured so that the in-kind payments made under the license or franchise pursuant to subsection A, paragraph 1 of this section are less than or equal to and are offset against any transaction privilege license tax on the business of providing telecommunications services. The valuation of any in-kind benefits shall be set forth in such agreements. The in-kind facilities that are used to offset any or all payments in this subsection are limited to the costs of the in-kind facilities and shall remain in possession and ownership of the political subdivision after the term of the existing license or franchise expires. In-kind facilities may be offset for either payments of intrastate transaction privilege taxes or for interstate linear foot charges but shall not be offset for any combination of intrastate and interstate charges. However, a political subdivision shall not require a telecommunications corporation to provide in-kind services, make in-kind payments or pay a fee in addition to the fees described in subsections A, B and C of this section as a condition of consent to use a highway to provide telecommunications services.

E. Notwithstanding subsection D of this section, any telecommunications corporation that was providing telecommunications service within this state on November 1, 1997 pursuant to a grant made to it or its lawful predecessors before the effective date of the Arizona Constitution may continue to provide telecommunications service pursuant to that state grant until it is lawfully repealed, revoked or amended. Such telecommunications corporation shall require no additional grant from any political subdivision to provide telecommunications services.

F. This article does not affect the terms or conditions of any franchise, license or permit issued by a political subdivision before November 1, 1997, or to release any party from its obligations thereunder. Those franchises, licenses or permits shall remain fully enforceable in accordance with their terms. A political subdivision may lawfully enter into agreements with franchise holders, licensees or permittees to modify or terminate an existing franchise, license or agreement.

G. A political subdivision may not discriminate against a cable operator in its use of its cable system or prevent a cable operator from using its cable system in the public highways to provide telecommunications services and other noncable services if the cable operator complies with applicable federal and state requirements. This subsection does not do either of the following:

Limit the authority of any political subdivision to license cable systems and to establish conditions on those licenses that are competitively neutral and nondiscriminatory with conditions applicable to telecommunications corporations and that are consistent with federal and state law.
Affect the authority of a political subdivision to manage the public highways within its boundaries or exercise its police powers and land use powers.

§ 9-583 Issuance of license or franchise; use of public highways; limitations

A. A political subdivision shall not adopt any ordinance that may prohibit or have the effect of prohibiting the ability of any telecommunications corporation to provide telecommunications service. Nothing in this section affects the authority of a political subdivision to manage the public highways within its jurisdiction or to exercise its police powers.

B. The governing board of a political subdivision may issue to a telecommunications corporation a license or franchise to use the public highways within the political subdivision to construct, install, operate and maintain telecommunications facilities. The political subdivision shall issue licenses or franchises on a competitively neutral and nondiscriminatory basis to persons subject to this section, within a reasonable period of time after application. As a condition of issuing a license or franchise to use the public highways to construct, install, operate and maintain telecommunications facilities, or a renewal thereof, a political subdivision may impose reasonable, competitively neutral and nondiscriminatory requirements on applicants which may include only:

Proof that the applicant has received a certificate of convenience and necessity from the Arizona corporation commission.
Public highway use requirements.
Mapping requirements.
Insurance, performance bonds, indemnification or similar requirements.
Enforcement and administrative provisions, consistent with this section.

C. A political subdivision may require a telecommunications corporation that will place underground facilities in the public highways, exclusive of facilities used by the local network and the portion of the interstate network that carries intrastate calls, for interstate telecommunications services to pay a fee as provided in this subsection and, subject to section 9-582, subsection A, paragraph 2, to obtain a license or franchise under this subsection to use the public highways to construct, install, operate and maintain facilities for these services. Subsections A, B, D and E of this section apply except:

The requirement provided in subsection B, paragraph 1 of this section does not apply to a telecommunications corporation that provides solely interstate telecommunications services within this state.
A political subdivision may require a telecommunications corporation operating under this subsection to pay an annual fee based on the number of linear feet of trench in the public highways in which the telecommunications corporation has placed facilities that carry interstate traffic between and among the telecommunications corporation's interstate points of presence exclusive of facilities used by the local network and the portion of the interstate network that carries intrastate calls.
The rate per linear foot used in paragraph 2 of this subsection shall not exceed the highest rate per linear foot a political subdivision in this state charged any licensee or franchisee on or before December 31, 1999. The rate per linear foot shall not be increased in any calendar year by more than the increase in the average consumer price index as published by the United States department of labor, bureau of labor statistics.

D. A telecommunications licensee or franchisee may enter into contracts for use of the licensee's or franchisee's facilities within the public highways to provide telecommunications services. A political subdivision may require a telecommunications licensee or franchisee to disclose all persons with whom it contracts to use its facilities in the public highways within the political subdivision to provide telecommunications services. A political subdivision may require a person using a licensee's or franchisee's facilities in the public highways within the political subdivision to obtain from the political subdivision a telecommunications license or franchise if the person constructs, installs, operates or maintains telecommunications facilities within the public highways of the political subdivision.

E. The requirements imposed in a telecommunications license or franchise shall treat similarly situated telecommunications corporations similarly. The requirements may be changed over time and applied prospectively. Nothing in this subsection or subsection B of this section affects section 9-582, subsection D. A political subdivision may distinguish between a telecommunications corporation described in section 9-582, subsection E and other telecommunications corporations to a justifiable extent based on differences in legal rights.

F. Subsections B through E of this section do not apply to a telecommunications corporation described in section 9-582, subsection E.

G. The requirements of this section apply to applicants for licenses or franchises filed and acted on after December 1, 1998 or if earlier, the date after August 1, 1998 that a political subdivision adopts an ordinance implementing this article. Licenses or franchises issued pursuant to this section shall be for a term of five years and shall be renewed if:

The telecommunications corporation satisfies the conditions of the renewal license or franchise.
The renewal applicant has complied with the material terms of its prior license or franchise and applicable law. However, renewal shall not be denied for failure to comply with license or franchise terms unless the licensee or franchisee has had written notice and a reasonable opportunity to cure the defect in past performance. A license or franchise may be revoked for failure to comply with the material terms of the license or franchise or applicable law. Revocation may occur only if the telecommunications corporation is given written notice of the defect in performance and the defect in performance is not cured within sixty days of the notice, unless the political subdivision finds that the defect in performance is due to intentional misconduct, is a violation of criminal law or is part of a pattern of violations if the telecommunications corporation has already had notice and an opportunity to cure. A political subdivision shall hold a hearing before revoking or refusing to renew a license or franchise if requested by the licensee or franchisee.

§ 9-584 Microcell equipment in public highways; permits; fees; limitations; definitions

A. A political subdivision shall allow the following persons and their affiliates to install, operate and maintain microcell equipment in the public highways that are under the jurisdiction of the political subdivision:

A telecommunications corporation within the licensed area of a license issued by the political subdivision under this article.
A telecommunications corporation described in section 9-582, subsection E.
A cable operator as defined in section 9-505 in the area of jurisdiction licensed by the political subdivision under section 9-506.
A video service provider in the service area licensed by the political subdivision.

B. On application a political subdivision shall issue permits for the installation, operation and maintenance of microcell equipment in the public highways within the political subdivision on a competitively neutral and nondiscriminatory basis to all persons specified in subsection A of this section. Only a qualified service provider may use microcell equipment to provide commercial mobile radio service.

C. All application fees, permit fees and charges levied by a political subdivision for applications or permits shall be levied on a competitively neutral and nondiscriminatory basis and directly related to the costs incurred by the political subdivision in providing services relating to the granting or administration of applications or permits. These fees and charges also shall be reasonably related in time to the occurrence of the costs.

D. A political subdivision may not charge a recurring fee, rent or other charge for use of aerial strand-mounted microcell equipment in public highways within the political subdivision if the political subdivision levies a rent, fee or charge on a person identified in subsection A of this section for the use of the public highways to provide a service. This subsection does not prohibit a political subdivision from charging a competitively neutral and nondiscriminatory rent, fee or charge for the use of utility poles or other poles of the political subdivision.

E. Except as the political subdivision agrees in the political subdivision's sole discretion, at each site microcell equipment is limited to:

Not more than two strand-mounted antennas and radio pairs that are owned by a person specified in subsection A of this section or a qualified service provider and that are used to provide commercial mobile radio service.
Related devices that are owned by a person specified in subsection A of this section and that are mounted on strand between utility poles, including power supplies, housings, cables and similar supporting furnishings and improvements.

F. This section does not:

Affect any authority of a political subdivision, an agricultural improvement district or any other special taxing district, or any other person controlling utility poles in the public highways to deny, limit, restrict or determine the terms and conditions for use of or attachment to the utility poles or attachments to other poles of the political subdivision, district or other person by a person specified in subsection A of this section.
Prohibit a political subdivision from imposing competitively neutral and nondiscriminatory requirements for a person identified in subsection A of this section to underground aerial facilities to which microcell equipment is attached.
Prohibit a political subdivision from imposing a tax, rent, fee or charge on revenue from services provided through microcell equipment.
Affect any authority of a political subdivision to manage the public highways within the political subdivision's boundaries or to exercise the political subdivision's police powers and land use powers, including review and approval of an application before issuing a permit.
Affect the application of federal law on processing applications, issuing permits and levying charges for the construction, management, installation, operation, maintenance and control of microcell equipment in the public highways.

G. For the purposes of this section:

"Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a person specified in subsection A of this section.
"Microcell equipment" means devices that are connected to the aerial facilities of a person specified in subsection A of this section and that are used solely for transmitting, processing and receiving voice and data wireless telecommunications services. Microcell equipment does not include any ground-based equipment.
Political subdivision does not include an agricultural improvement district or other special taxing district that controls utility poles or an irrigation district.
"Qualified service provider" means a person that has all applicable authorizations required to provide commercial mobile radio service using microcell equipment.
"Utility pole" means a pole or similar structure and attached appurtenances including strand that is designed for telecommunications, cable, data or electric functions.

Article 8 Use of Public Highways and Private Property by Wireless Providers

§ 9-591 Definitions

In this article, unless the context otherwise requires:

"Antenna" means communications equipment that transmits or receives electromagnetic radio frequency signals and that is used in providing wireless services.
"Applicable codes" means uniform building, fire, electrical, plumbing or mechanical codes that are adopted by a recognized national code organization or local amendments to those codes that are enacted to address threats of destruction of property or injury to persons and to an extent that is not inconsistent with this article.
"Applicant" means any person that submits an application and that is a wireless provider.
"Application" means a request that is submitted by an applicant to an authority for a permit to collocate small wireless facilities or to approve the installation, modification or replacement of a utility pole or wireless support structure.
"Authority" means any city, town, special district or political subdivision of this state that is authorized to make legislative, quasi-judicial or administrative decisions concerning an application. Authority does not include any state court that has jurisdiction over an authority and does not include a county, special taxing district, or electric cooperative.
"Authority utility pole" means a utility pole that is owned or operated by an authority and that is in a right-of-way. Authority utility pole does not include a utility pole for electric distribution.
"Cable operator" has the same meaning prescribed in section 9-505 and includes a video service provider. Cable operator does not include a special taxing district.
"Collocate" or "collocation" means to install, mount, maintain, modify, operate or replace wireless facilities on, within or adjacent to a wireless support structure or utility pole.
"Communications service" means cable service as defined in 47 United States Code section 522(6), information service as defined in 47 United States Code section 153(24), telecommunications service as defined in 47 United States Code section 153(53) or wireless service.
"Communications service provider" means a cable operator, a provider of information service as defined in 47 United States Code section 153(24), a telecommunications carrier as defined in 47 United States Code section 153(51) or a wireless services provider.
"Fee" means a onetime charge.
"Law" means any federal, state or local law, statute, common law, code, rule, regulation, order or ordinance.
"Monopole" means a wireless support structure that is not more than forty inches in diameter at the ground level and that has all of the wireless facilities mounted on the pole or contained inside of the pole.
"Permit" means written permission required by an authority to install, mount, maintain, modify, operate or replace a utility pole or monopole, to collocate a small wireless facility on a utility pole or wireless support structure or to collocate wireless facilities on a monopole.
"Person" means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including an authority.
"Private easement" means an easement or other real property right that is only for the benefit of the grantor and grantee and the grantor's or grantee's successors and assigns.
"Rate" means a recurring charge.
"Right-of-way" means the area on, below or above a public roadway, highway, street, sidewalk, alley or utility easement. Right-of-way does not include a federal interstate highway, a state highway or state route under the jurisdiction of the department of transportation, a private easement, property that is owned by a special taxing district, or a utility easement that does not authorize the deployment sought by the wireless provider.
"Small wireless facility" means a wireless facility that meets both of the following qualifications:

(a) All antennas are located inside an enclosure of not more than six cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of the antenna's exposed elements could fit within an imaginary enclosure of not more than six cubic feet in volume.

(b) All other wireless equipment associated with the facility is cumulatively not more than twenty-eight cubic feet in volume, or fifty cubic feet in volume if the equipment was ground mounted before August 9, 2017. The following types of associated ancillary equipment are not included in the calculation of equipment volume pursuant to this subdivision:

(i) An electric meter.

(ii) Concealment elements.

(iii) A telecommunications demarcation box.

(iv) Grounding equipment.

(v) A power transfer switch.

(vi) A cutoff switch.

(vii) Vertical cable runs for the connection of power and other services.

"Special taxing district" means a special district formed pursuant to title 48, chapter 11, 12, 17, 18, 19, 20 or 22.
"Utility pole" means a pole or similar structure that is used in whole or in part for communications services, electric distribution, lighting or traffic signals. Utility pole does not include a monopole.
"Wireless facility":

(a) Means equipment at a fixed location that enables wireless communications between user equipment and a communications network, including both of the following:

(i) Equipment associated with wireless communications.

(ii) Radio transceivers, antennas, coaxial or fiber-optic cables, regular and backup power supplies and comparable equipment, regardless of technological configuration.

(b) Includes small wireless facilities.

(c) Does not include the structure or improvements on, under or within which the equipment is collocated, wireline backhaul facilities, coaxial or fiber-optic cable that is between wireless support structures or utility poles or coaxial or fiber-optic cable that is otherwise not immediately adjacent to, or directly associated with, an antenna.

(d) Does not include Wi-Fi radio equipment described in section 9-506, subsection I or microcell equipment described in section 9-584, subsection E.

"Wireless infrastructure provider" means any person that is authorized to provide telecommunications service in this state and that builds or installs wireless communications transmission equipment, wireless facilities, utility poles or monopoles but that is not a wireless services provider. Wireless infrastructure provider does not include a special taxing district.
"Wireless provider" means a cable operator, wireless infrastructure provider or wireless services provider.
"Wireless services" means any services that are provided to the public and that use licensed or unlicensed spectrum, whether at a fixed location or mobile, using wireless facilities.
"Wireless services provider" means a person that provides wireless services. Wireless services provider does not include a special taxing district.
"Wireless support structure":

(a) Means:

(i) A freestanding structure, such as a monopole.

(ii) A tower, either guyed or self-supporting.

(iii) A sign or billboard.

(iv) Any other existing or proposed structure designed to support or capable of supporting small wireless facilities.

(b) Does not include a utility pole.

§ 9-592 Applicability; wireless provider; use of right-of-way; rates, fees and terms; right to access; damage and repair

A. This section applies to the activities of a wireless provider within a right-of-way.

B. An authority may not enter into an exclusive arrangement with a wireless provider for use of a right-of-way for any of the following:

The construction, installation, maintenance, modification, operation or replacement of utility poles or monopoles.
The collocation of small wireless facilities on utility poles or wireless support structures.
The collocation of wireless facilities on monopoles.

C. An authority may charge a wireless provider a rate or fee for the use of a right-of-way for the construction, installation, maintenance, modification, operation or replacement of a utility pole in the right-of-way or the collocation of a small wireless facility in the right-of-way, only if the authority charges other communications service providers or publicly, cooperatively or municipally owned utilities for the use of the right-of-way and the authority has the legal authority to do so. If an authority charges a rate or fee pursuant to this section, the rate or fee for a wireless provider must be:

Limited to not more than the direct and actual cost of managing the right-of-way.
Competitively neutral in regard to other users of the right-of-way, including investor-owned, authority-owned or cooperatively owned entities, unless other users are exempt from such rates or fees under applicable law.

D. A rate or fee charged pursuant to subsection C of this section may not do any of the following:

Result in a double recovery where existing rates, fees or taxes already recover the direct and actual costs of managing a right-of-way.
Be in the form of a franchise or other fee based on revenue or customer counts.
Be unreasonable or discriminatory.
Exceed an annual amount equal to fifty dollars multiplied by the number of small wireless facilities that are in the authority's geographic jurisdiction and that are placed by the wireless provider in the right-of-way.

E. An authority shall establish and make available rates, fees and terms for all of the following, within six months after August 9, 2017 or three months after receiving the first request by a wireless provider, whichever is later:

The construction, installation, mounting, maintenance, modification, operation or replacement of a utility pole or monopole by a wireless provider in a right-of-way.
The collocation of a small wireless facility by a wireless provider in a right-of-way.
The collocation of a wireless facility on or within a monopole by a wireless provider in a right-of-way.

F. The rates, fees and terms established pursuant to subsection E of this section must be made available for acceptance by a wireless provider. At the wireless provider's option, a wireless provider may request different or additional terms that the parties shall negotiate in good faith. Documents that reflect rates, fees and terms with each wireless provider are public records. Rates, fees and terms must comply with this article, and the terms:

May not be unreasonable or discriminatory.
May include requirements applicable to other users of the right-of-way.
May require that the wireless provider's operation of the small wireless facilities in the right-of-way does not interfere with the authority's public safety communications.
Subject to subsection K of this section and section 9-593, subsection F, may not require the placement of small wireless facilities on any specific utility pole or category of poles or require multiple antenna systems on a single utility pole.
Subject to subsection K of this section and section 9-593, subsection F, may not limit the placement of small wireless facilities by minimum separation distances.

G. Agreements between authorities and wireless providers that are in effect on August 9, 2017 and that relate to the collocation of small wireless facilities in the right-of-way, including the collocation of small wireless facilities on authority utility poles, remain in effect, subject to applicable termination provisions. The wireless provider may accept the rates, fees and terms established under subsections E and F of this section for small wireless facilities and utility poles that are the subject of an application submitted after the rates, fees and terms become effective.

H. Subject to this section and the approval of an application, if required, a wireless provider may do any of the following:

Collocate small wireless facilities.
Construct, install, modify, mount, maintain, operate and replace utility poles that are associated with the collocation of small wireless facilities along, across, on and under the right-of-way.
Construct, install, modify, mount, maintain, operate and replace monopoles that are associated with the collocation of wireless facilities along, across, on and under the right-of-way. The installation, modification and replacement of monopoles are subject to review under section 9-594 regardless of the height of the monopole.

I. Subject to subsection K, paragraph 2, subdivision (c) of this section, a new, replacement or modified utility pole that is associated with the collocation of small wireless facilities and that is installed in the right-of-way is not subject to zoning review and approval under section 9-594 if the utility pole does not exceed the greater of either:

Ten feet in height above the tallest existing utility pole, other than a utility pole supporting only wireless facilities, that is in place on August 9, 2017, that is located within five hundred feet of the new, replacement or modified utility pole and that is in the same right-of-way within the jurisdictional boundary of the authority, but not more than fifty feet above ground level.
Forty feet above ground level.

J. New small wireless facilities collocated on a utility pole or wireless support structure in the right-of-way are not subject to zoning review and approval if they do not extend more than ten feet above the utility pole or wireless support structure and do not exceed fifty feet above ground level.

K. An authority may require an application under this section for the installation of new, replacement or modified utility poles associated with the collocation of small wireless facilities. An authority shall approve an application unless the authority finds that the utility pole fails to comply with any of the following:

Applicable codes.
Local code provisions or regulations that concern any of the following:

(a) Public safety.

(b) Objective design standards and reasonable stealth and concealment requirements.

(c) Undergrounding requirements that prohibit the installation of new or the modification of existing utility poles or monopoles in a right-of-way without prior approval, if such requirements include a waiver, zoning or another process that addresses requests to install such new utility poles or monopoles or modify such existing utility poles or monopoles and do not prohibit the replacement of utility poles or monopoles.

Requirements that are imposed by a contract between an authority and a private property owner and that concern design standards applicable to utility poles in the right-of-way.
The authority's public safety and reasonable spacing requirements that concern the location of new utility poles in a right-of-way.

L. An authority shall process applications under subsection K of this section in compliance with applicable law. If an authority fails to approve or deny an application within the time frame specified by applicable law, the application shall be deemed approved. Any application fee is subject to the requirements provided in section 9-593, subsection J. The total application fee, if allowed, may not exceed seven hundred fifty dollars.

M. The construction, installation, mounting, maintenance, modification, operation or replacement for which a permit is granted shall be completed within one hundred eighty days after the permit issuance date, unless the authority and wireless provider agree to extend this period or a delay is caused by a lack of commercial power at the site.

N. Approval of an application by an authority authorizes the applicant to do both of the following:

Undertake the requested deployment.
Subject to applicable relocation requirements, the authority's terms as described in this section and the wireless provider's right to terminate at any time, operate and maintain the wireless provider's new, modified or replacement utility pole for a period of not less than ten years, which must be renewed for equivalent durations unless the authority makes a finding that the new or modified utility pole does not comply with the requirements described in subsection K of this section.

O. An authority may require a wireless provider to repair all damage to the authority's property and the right-of-way that is caused by the activities of the wireless provider or the wireless provider's contractor while occupying, installing, repairing or maintaining small wireless facilities, wireless support structures or utility poles in the right-of-way and to return the damaged property to the same condition as before the damage pursuant to the competitively neutral, reasonable requirements and specifications of the authority. If the wireless provider fails to make the repairs required by the authority within a reasonable time after the authority provides written notice to the wireless provider, the authority may make the repairs and charge the applicable party the reasonable, documented cost of the repairs.

P. This article does not relieve a wireless provider from any applicable requirement to obtain a franchise, license or other permission to provide communications service or to install, place, maintain or operate facilities or structures that are not authorized by this article in the right-of-way to provide a communications service.

§ 9-593 Applicability; collocation of small wireless facilities; permits; application; fee

A. This section applies to the activities of a wireless provider within a right-of-way.

B. Except as provided in this section and sections 9-592, 9-594, 9-595, 9-597, 9-598 and 9-599, as applicable, an authority may not prohibit, regulate or charge for the collocation of small wireless facilities.

C. Subject to this section and section 9-592, subsection J, a small wireless facility is classified as a permitted use and is not subject to zoning review or approval if the small wireless facility is collocated in a right-of-way in any zone.

D. An authority may require an applicant to obtain one or more permits to collocate a small wireless facility if the permit requirement is of general applicability and does not apply exclusively to wireless facilities. An applicant seeking to collocate multiple small wireless facilities within the jurisdiction of a single authority may file a consolidated application for the collocation of up to twenty-five small wireless facilities if the collocations each involve substantially the same type of small wireless facilities and substantially the same type of structure.

E. An application must include an attestation that the small wireless facilities will be collocated on the utility pole or wireless support structure and that the small wireless facilities will be operational for use by a wireless services provider to provide service within one hundred eighty days after the permit issuance date, unless the authority and the wireless provider agree to extend this period or a delay is caused by a lack of commercial power at the site.

F. An authority:

Shall accept applications for, process and issue permits to collocate small wireless facilities.
Within twenty days after receiving an application, shall determine and notify the applicant whether the application is complete. If an applicant is not notified within the twenty-day period, the application is deemed complete. If an application is incomplete, the authority must specifically identify the information missing from the application.
Shall process each application on a nondiscriminatory basis. A complete application is deemed approved if the authority fails to approve or deny the application within seventy-five days after receiving a complete application.
Shall approve an application unless the application does not meet the applicable codes, local code provisions or regulations that concern public safety, objective design standards for decorative utility poles or reasonable stealth and concealment requirements or public safety and reasonable spacing requirements concerning the location of ground-mounted equipment in a right-of-way. If an authority determines that applicable codes or local code provisions or regulations require that the utility pole or wireless support structure be replaced before the requested collocation, approval may be conditioned on such replacement of the utility pole or wireless support structure. The wireless provider's request for a replacement utility pole or wireless support structure will be processed pursuant to section 9-592.
If an application is denied, shall document the basis for the denial, including the specific code provisions, regulations or requirements on which the denial was based, and send the documentation to the applicant on or before the date that the application is denied. The applicant may cure the deficiencies identified by the authority and resubmit the application within thirty days after the denial without paying an additional application fee. The authority shall approve or deny the revised application within thirty days after receiving the revised application. Any subsequent review is limited to the deficiencies cited in the denial.
If an application includes multiple small wireless facilities, may remove small wireless facility collocations from the application and treat separately small wireless facility collocations for which incomplete information has been provided or that do not qualify for consolidated treatment or that are denied. The authority may issue separate permits for each collocation that is approved in a consolidated application.

G. An authority may not:

Directly or indirectly require an applicant to perform services that are unrelated to the collocation for which approval is sought, such as in-kind contributions to the authority, including reserving fiber, conduit or pole space on the wireless provider's monopole or utility pole for the authority.
Require an applicant to provide more information to obtain a permit than the authority requires of a communications service provider that is not a wireless provider and that requests to attach facilities to a structure. An authority may require the applicant to certify that the small wireless facilities to be collocated comply with the federal communications commission's regulations concerning radio frequency emissions referenced in 47 United States Code section 332(c)(7)(B)(iv).
Institute, either expressly or de facto, a moratorium on filing, receiving or processing applications or issuing permits or other approvals, if any, for the collocation of a small wireless facility.
Require an application for routine maintenance or the replacement of small wireless facilities with small wireless facilities that are substantially similar or the same size or smaller. An authority may require a permit to work within a right-of-way for such activities, if applicable. A permit issued pursuant to this paragraph is subject to the requirements of this section.

H. Collocation for which a permit is granted shall be completed within one hundred eighty days after the permit issuance date, unless the authority and the wireless provider agree to extend this period or a delay is caused by the lack of commercial power at the site.

I. Approval of an application by an authority allows the applicant to do both of the following:

Collocate the small wireless facilities.
Subject to applicable relocation requirements, the wireless provider's right to terminate at any time and the authority's terms described in section 9-592, operate and maintain the small wireless facilities for a period of not less than ten years, which must be renewed for equivalent durations unless the authority makes a finding that the small wireless facilities do not comply with the applicable codes or local code provisions or regulations described in subsection F, paragraph 4 of this section.

J. An authority may charge an application fee that is limited to the actual, direct and reasonable costs that are incurred by the authority and that relate to the granting or processing of an application. An application fee shall be reasonably related in time to the incurring of such costs. If such costs are already recovered by existing fees, rates or taxes that are paid by a wireless provider, an authority may not charge an application fee to recover such costs. An application fee may not include:

Third-party travel expenses that are incurred to review an application.
The direct payment or reimbursement of third-party rates or fees that are charged on a contingency basis or pursuant to a result-based arrangement.

K. The total application fee, if allowed, may not exceed one hundred dollars each for up to five small wireless facilities addressed in an application and fifty dollars for each additional small wireless facility addressed in the application.

L. This article does not allow a person to collocate small wireless facilities on a privately owned utility pole, a privately owned wireless support structure or private property without the consent of the property owner.

§ 9-594 Structures subject to zoning; time frames; application; fees

A. The following activities that take place inside of a right-of-way are subject to this section and all of the authority's codes and regulations, including the authority's zoning codes and other regulatory processes governing use of the rights-of-way, unless the activities are exempt from zoning review and approval under section 9-592, subsection I or J or section 9-593, subsection C:

The installation of new monopoles, utility poles or wireless facilities.
The collocation of wireless facilities.

B. Notwithstanding any provision in this article to the contrary, the construction, installation, maintenance, modification, operation or replacement of a monopole or associated wireless facility in a right-of-way is subject to all of the authority's codes and regulations, including the authority's zoning codes and other regulatory processes governing use of the rights-of-way.

C. An authority shall:

Accept and process applications for the modification of existing or the installation of new monopoles, utility poles or wireless facilities and the collocation of wireless facilities.
Within thirty days after receiving an application, notify the applicant whether the application is complete. If an application is incomplete, the authority must specifically identify the information missing from the application.
Process each complete application on a nondiscriminatory basis. A complete application is deemed approved if the authority fails to approve or deny the application within one hundred fifty days after receipt of an application for the modification of existing or the installation of new monopoles, utility poles or wireless facilities or within ninety days after receipt of a complete application for the collocation of wireless facilities. The time period for approval may be tolled to accommodate timely requests for information required to complete the application or may be extended by mutual agreement between the applicant and authority.
If a complete application is denied, notify the applicant in writing and provide substantial supporting evidence of the reason for denial in the written record. The written notification of the denial and the supporting evidence shall be publicly released contemporaneously. There must be a reasonable basis for the denial of an application. An authority may not deny an application if the denial is discriminatory against the applicant with respect to the placement of the facilities of other wireless providers.

D. An authority may not:

Require an applicant to submit information about the applicant's business decisions regarding the need for the monopole, utility pole or wireless facilities.
Require an applicant to submit information about, or evaluate an applicant's business decisions regarding, the applicant's service, customer demand for service or quality of service.
Institute, either expressly or de facto, a moratorium on filing, receiving or processing applications or issuing decisions for modifications or installations that are not a permitted use.

E. An authority, in addition to other rights the authority has under federal, state or local law, may:

Adopt reasonable requirements regarding the appearance and concealment of facilities, including those relating to materials used for arranging, screening or landscaping.
Adopt setback or fall zone requirements that are substantially similar to setback or fall zone requirements that are imposed on other types of commercial structures of a similar height.
Charge an application fee. Any application fee is subject to the requirements provided in section 9-593, subsection J. The total application fee, if allowed, may not exceed one thousand dollars for the modification of existing or the installation of new monopoles or utility poles or for the collocation of wireless facilities.
Charge a rate or fee for the use of the right-of-way for the installation of a monopole and associated wireless facility that is limited to not more than the direct and actual costs of managing the right-of-way and that is not in the form of a franchise or other fee based on revenue or customer counts.

F. An applicant's business decisions regarding the type and location of wireless facilities, monopoles or utility poles or the technology to be used are presumed to be reasonable. This presumption does not apply to the height or appearance of wireless facilities, monopoles or utility poles. An authority may consider the height of such structures in the zoning or other regulatory review, provided that the authority does not unreasonably discriminate between the applicant and other communications service providers that install wireless facilities.

G. Subject to applicable relocation requirements, the authority's terms described in section 9-592 and the wireless provider's right to terminate at any time, the approval term of an application shall be for a period of not less than ten years, which must be renewed for equivalent durations unless the authority makes a finding that the structure or facilities do not comply with the applicable codes or terms of the zoning or other regulatory process approval. Construction of the approved structure or facilities shall be completed within one hundred eighty days after the permit issuance date, unless the authority and the wireless provider agree to extend this period or a delay is caused by the lack of commercial power at the site.

§ 9-595 Access to authority utility poles; rates and fees; collocations for other commercial projects or uses

A. An authority may not enter into an exclusive arrangement with any person for the right to attach to authority utility poles.

B. The rates and fees for the collocation of small wireless facilities on authority utility poles shall be nondiscriminatory regardless of the services provided by the collocating person.

C. The rate to collocate small wireless facilities on authority utility poles may not exceed fifty dollars per authority utility pole, per year.

D. An authority shall establish and make available rates, fees and terms for the collocation of small wireless facilities on authority utility poles within six months after August 9, 2017 or three months after receiving a request to collocate the first small wireless facility on such poles, whichever is later. The rates, fees and terms shall be made available for acceptance by a wireless provider. At the wireless provider's option, a wireless provider may request different or additional terms that the parties shall negotiate in good faith. Documents reflecting rates, fees and terms with each wireless provider shall be made publicly available. The rates, fees and terms shall comply with the following requirements:

The rates, fees and terms must be nondiscriminatory, competitively neutral and commercially reasonable and comply with this section and section 9-592, subsections E and F. Requests for collocating a small wireless facility on an authority utility pole will be processed pursuant to section 9-593. The authority may require a wireless provider to replace the authority utility pole if the authority determines that applicable codes or local code or regulatory provisions that concern public safety require replacement of the authority utility pole. The wireless provider's request to install a replacement utility pole will be processed pursuant to section 9-592. The authority shall retain ownership of the utility pole.
Terms must reasonably accommodate power supply and electric metering for the small wireless facility.

E. An authority may prohibit, regulate and charge for the collocation of a wireless facility on a wireless support structure owned by the authority.

§ 9-596 Scope of local authority

A. Subject to this article and applicable federal law, an authority may exercise zoning, land use, planning and permitting authority and the authority's police power within the authority's territorial boundaries, including for the installation, modification and replacement of wireless support structures and utility poles.

B. An authority does not have any jurisdiction or authority over the design, engineering, construction, installation or operation of any small wireless facility located in an interior structure or on the site of any campus, stadium or athletic facility that is not owned or controlled by the authority, other than to require compliance with applicable codes.

C. This article does not authorize this state or any political subdivision of this state, including an authority, to require small wireless facility deployment or to regulate wireless services.

D. If an authority determines that a utility pole, monopole or wireless support structure of a wireless provider will be relocated to accommodate a public project, all wireless facilities deployed on such utility pole, monopole or wireless support structure shall be relocated at no cost to the authority.

§ 9-597 Dispute resolution

A court of competent jurisdiction in this state shall determine all disputes arising under this article.

§ 9-598 General requirements for use of the right-of-way

Structures and facilities deployed by wireless providers pursuant to this article shall be constructed, maintained and located as to not obstruct, endanger or hinder the usual travel or public safety on the right-of-way, damage or interfere with any other utility facilities in the right-of-way or interfere with a utility's use of the utility's facilities in the right-of-way. Construction and maintenance by the wireless provider shall comply with the national electrical safety code and all applicable laws and regulations for the protection of underground and overhead utility facilities. An authority shall treat a wireless provider's facilities located within a right-of-way on an equal basis with other utility facilities, except that an authority may adopt reasonable regulations to address the separation of the wireless provider's facilities from the other utility facilities within the right-of-way to prevent any damage to or interference with such other utility facilities or interference with a utility's use of the utility's facilities located or to be located within the right-of-way.

§ 9-599 Applicability

This article does not:

Affect the authority of a special taxing district, investor-owned electric utility or electric cooperative that owns, controls or operates utility poles or wireless support structures to deny, limit, restrict or determine the rates, fees, terms and conditions for the use of or attachment to its utility poles or wireless support structures by a wireless provider.
Confer on any authority any zoning, land use, planning, permitting or other regulatory authority over the utility poles, wireless support structures or small wireless facilities owned, controlled or operated by a special taxing district, investor-owned electric utility or electric cooperative or the installation of such utility poles, wireless support structures or small wireless facilities by a special taxing district, investor-owned electric utility or electric cooperative.
Amend, modify or otherwise affect any private easement. Any and all rights for the use of a right-of-way are subject to the rights granted pursuant to any private easement.

§ 9-600 Antenna use; private property; applicability

A. If an antenna is installed on property within the exclusive use or control of the antenna user whether the user has a direct or indirect ownership or leasehold interest in the property, an authority may not:

Unreasonably delay or prevent installation, maintenance or use of the antenna.
Unreasonably increase the cost of installation, maintenance or use of the antenna.
Prevent reception of acceptable signal quality.

B. This section applies to antennas that are not larger than one meter in diameter and installed on private property and are designed to receive video programming services via broadband radio service or to receive or transmit wireless signals other than via satellite.

C. This section does not apply to antennas used to transmit signals to and or receive signals from multiple customer locations.

Chapter 6 Convention Centers

Article 1 Arizona Convention Center Development Fund

§ 9-601 Arizona convention center development fund; purpose

The Arizona convention center development fund is established to encourage and enable eligible cities under section 9-604 to develop and expand municipally operated major convention center facilities designed to serve large conventions and trade shows attended primarily by residents of other states and to encourage the tourism and visitor industries in this state.

§ 9-602 Fund operation

A. The Arizona convention center development fund consists of monies deposited pursuant to sections 42-5029 and 42-5030.

B. The state treasurer shall administer the fund. The state treasurer shall invest and divest monies in the fund as provided by section 35-313 as needed to facilitate distributions from the fund, and monies earned from investment shall be credited to the fund.

C. On or before August 1 of each year, the state treasurer shall distribute the amounts computed in subsection D of this section to each eligible city that has filed a certificate of completion of construction pursuant to section 9-622 for each eligible project under section 9-605.

D. The amount to be distributed pursuant to subsection C of this section shall be computed by dividing the total cost of the eligible project not funded from municipal sources as identified in the certificate of completion of construction filed pursuant to section 9-622 by three hundred million and multiplying the quotient by the following amounts:

In fiscal year 2009-2010, five million dollars.
In fiscal year 2010-2011, ten million dollars.
In fiscal year 2011-2012, zero dollars.
In fiscal year 2012-2013, $5,595,000.
In fiscal years 2013-2014, 2014-2015, 2015-2016 and 2016-2017, $20,449,000.
In fiscal year 2017-2018, $22,499,000.
In fiscal year 2018-2019, $22,996,250.
In fiscal year 2019-2020, $23,499,950.
In fiscal year 2020-2021, $23,997,900.
In fiscal year 2021-2022, $24,498,450.
In fiscal year 2022-2023, $24,999,400.
In fiscal year 2023-2024, $25,498,550.
In fiscal year 2024-2025, $25,998,700.
In fiscal year 2025-2026, $26,497,375.
In fiscal year 2026-2027, $26,997,100.
In fiscal year 2027-2028, $27,495,125.
In fiscal year 2028-2029, $27,998,700.
In fiscal year 2029-2030, $28,499,525.
In fiscal year 2030-2031, $28,999,575.
In fiscal year 2031-2032, $29,495,550.
In fiscal year 2032-2033, $29,999,150.
In fiscal year 2033-2034, $29,996,250.
In fiscal year 2034-2035, $29,995,775.
In fiscal year 2035-2036, $29,999,975.
In fiscal year 2036-2037, $29,995,825.
In fiscal year 2037-2038, $29,995,850.
In fiscal year 2038-2039, $29,996,750.
In fiscal year 2039-2040, $29,995,225.
In fiscal year 2040-2041, $29,997,975.
In fiscal year 2041-2042, $29,996,150.
In fiscal year 2042-2043, $29,996,175.
In fiscal year 2043-2044, $29,998,925.

E. If sufficient distributions have been made to provide for all of the uses of the fund monies pursuant to section 9-603 for an eligible project, the chief financial officer of the eligible city shall certify to the state treasurer that no additional distributions are required for the project, and on receiving the certification the state treasurer shall make no further distributions to the city for that project.

F. After the distributions required by subsection C of this section, any monies remaining in the fund on receipt of the certification of satisfaction of annual obligations pursuant to section 9-623, or on the first Monday in August if a certificate of completion of construction has not been previously filed pursuant to section 9-622, shall be transferred to the state general fund.

§ 9-603 Use of fund monies

A. The monies in the Arizona convention center development fund shall be used only for the purposes specified in this chapter.

B. The state treasurer shall disburse monies from the fund as provided in section 9-602. Any amounts remaining in the fund after the distributions made pursuant to section 9-602, subsection C shall be held in reserve for the purposes of the distributions until the certificate of satisfaction of annual obligations is received by the state treasurer or until the first Monday in August if a certificate of completion of construction has not been previously filed pursuant to section 9-622.

C. A city that receives monies distributed from the fund:

Shall segregate and separately account for the monies and shall not commingle the monies from the fund with monies from any other source. Those monies shall be designated as a special fund of the eligible city, separate from the city's general fund. Any amount not immediately used to meet scheduled payments or current expenses shall remain in the special fund, shall not be transferred to the city's general fund and shall be used only for the permitted purposes in the future.
May use monies from the fund only for the following purposes in connection with an eligible project under section 9-605:

(a) The design, development, construction and related costs for a convention center and related development.

(b) Financing costs and any other costs incurred in connection with any financings undertaken to facilitate the accomplishment of the uses of the monies in the fund as provided in this section.

(c) Funding financial reserves created in connection with any financings undertaken to facilitate the accomplishment of the uses of the monies in the fund as provided in this section.

(d) Reimbursement of any amounts plus interest advanced by an eligible city but for which the eligible city does not have ultimate responsibility to pay any portion of financing or related costs incurred in connection with any financings undertaken to facilitate the accomplishment of the other uses of the monies in the fund as provided in this section.

(e) Any other costs necessary to effectuate the uses and purposes specified in this article.

D. Amounts distributed from the fund are in addition to any other amounts distributed to eligible cities pursuant to any other law.

§ 9-604 Eligible cities

To be eligible to receive distributions from the Arizona convention center development fund a municipality must:

Be a charter city.
Have a population of more than:

(a) One million persons according to the most recent United States decennial census at the time of the distribution.

(b) Five hundred fifty thousand persons according to the most recent United States decennial census, or a special census conducted pursuant to section 42-5033, at the time of the initial distribution.

Operate a convention center facility with at least two hundred thousand square feet of exhibition space that was constructed with monies from municipal sources.

§ 9-605 Eligible projects

A. An eligible city may not spend monies from the Arizona convention center development fund for uses other than those permitted by section 9-603 and only in connection with an eligible convention center development project.

B. A project is eligible only if:

The voters of the eligible city have approved the project and any required financing for the project.
Specifically identified municipal sources have been dedicated to provide funding for at least one-half of the total project cost.
The total cost of the project does not exceed six hundred million dollars.

C. In the case of an eligible city described in section 9-604, paragraph 2, subdivision (b), a project is eligible under this section only if:

The joint legislative budget committee has conducted a financial analysis of the proposed project that indicates that the project will result in an increase in state general fund revenues greater than the amounts of distributions pursuant to section 9-602 in connection with the project.
The total cost of the project does not exceed sixty million dollars.

Article 2 Development

§ 9-621 Authority to receive and spend distributions

In addition to any other powers conferred by law, an eligible city described in section 9-604 may receive and spend distributions from the Arizona convention center development fund pursuant to this chapter.

§ 9-622 Certification of completion of construction

A. When construction or expansion of an eligible convention center development project is complete, the chief financial officer of the city shall certify the completion to the state treasurer and transmit a copy of the certification to the auditor general.

B. As a part of the certification, the chief financial officer of the city shall:

Notify the state treasurer if the city has entered into any agreements that require future scheduled payments and the amounts of any such payments.
Certify to the state treasurer that a project meets all of the eligibility requirements of section 9-605 before any distributions for the project from the Arizona convention center development fund to the city.
Certify to the state treasurer the total cost of the eligible project and the part of the total cost to be funded from municipal sources.

§ 9-623 Certification of satisfaction of annual obligations

A. In any year that a scheduled payment is due as stated in the certification of completion of construction from monies in the special fund established by the eligible city for receipt of distributions from the Arizona convention center development fund, on receiving distributions from the Arizona convention center development fund, the chief financial officer shall deposit into the appropriate account a sufficient amount from those distributions to make any scheduled payments or deposits for the current fiscal year.

B. The chief financial officer shall certify to the state treasurer the satisfaction of the annual obligations on depositing into the appropriate funds or accounts sufficient monies to make any scheduled payments or deposits for the current fiscal year.

§ 9-624 Request for state lease purchase

A. The chief financial officer may file a notice with the director of the department of administration requesting this state to undertake lease purchase financing in connection with an eligible project pursuant to section 41-791.04. The notice shall include a detailed description of the part of the eligible project that the state is requested to lease purchase.

B. The department of administration shall promptly respond to the proposal in the manner prescribed by section 41-791.04.

C. If a notice is filed and the lease purchase financing is completed pursuant to this section, no distributions shall be made by the state treasurer pursuant to section 9-602 to the eligible city for the eligible project.

§ 9-625 Tax exemption

An eligible city is regarded as performing a governmental function in carrying out the purposes of this chapter and the eligible project is considered to be municipal property for the purposes of article IX, section 2, Constitution of Arizona.

§ 9-626 Construction progress reports; auditor general performance measures

A. The eligible city shall report progress on the development of any eligible project to the joint committee on capital review twice annually during construction of the eligible project.

B. Within five years after the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622, and after consultation with the eligible city, the auditor general shall conduct or contract for an economic and fiscal impact analysis of the eligible project in its fifth year of operation following the filing of the certificate of completion of construction. At a minimum, the analysis shall:

Estimate the effects of direct, indirect and induced economic activity in this state associated with:

(a) Regional and national conventions and trade shows held at the site of the eligible project, the total amount of state general fund revenues derived from that economic activity and the estimated average annual attendance at those events assuming:

(i) The eligible project had not been completed.

(ii) The eligible project has been completed.

(b) The construction of the eligible project and the total amount of state general fund revenues derived from the construction activity.

Compute the total cumulative amount of distributions pursuant to section 9-602 for the first through fifth years following the filing of the certificate of completion of construction for the eligible project pursuant to section 9-622 and from the first through each subsequent fifth year.
Compute the net cumulative distributions for the eligible project by subtracting the amount determined pursuant to paragraph 1, subdivision (b) of this subsection from either the amounts determined pursuant to paragraph 2 of this subsection or, if applicable, the amount of state monies paid under a lease purchase agreement pursuant to section 41-791.04.
Based on the analysis conducted pursuant to this subsection, estimate the minimum required attendance at the eligible project for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter. The estimates shall be computed as follows:

(a) Divide the total state general fund revenues estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection by the attendance estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection.

(b) Divide the net cumulative distribution amounts for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter computed pursuant to paragraph 3 of this subsection by the quotient computed pursuant to subdivision (a) of this paragraph.

(c) Add the average annual attendance estimated pursuant to paragraph 1, subdivision (a), item (i) of this subsection to each of the quotients determined pursuant to subdivision (b) of this paragraph. The resulting sums are the minimum required attendance amounts for each year.

C. Beginning in the fifth calendar year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter, the auditor general shall:

Estimate the average annual attendance at regional and national conventions and trade shows held at the site of the eligible project using any appropriate method to estimate the attendance. The eligible city shall cooperate with and assist the auditor general in developing the estimates.
Compute the ratio of the cumulative sum of the estimated attendance amounts developed pursuant to paragraph 1 of this subsection for all years through the current year to the cumulative sum of the minimum required attendance amounts for those years computed pursuant to subsection B, paragraph 4, subdivision (c) of this section.
Notify the president of the senate, the speaker of the house of representatives and the governor of:

(a) The minimum required attendance amounts for those years computed pursuant to subsection B, paragraph 4, subdivision (c) of this section.

(b) The attendance estimate developed pursuant to paragraph 1 of this subsection.

D. Except as provided in paragraph 4 of this subsection, if the ratio computed pursuant to subsection C, paragraph 2 of this section is less than one:

The auditor general shall compute the difference between the estimated state general fund revenues and the net cumulative distributions by multiplying the net cumulative distributions computed pursuant to subsection B, paragraph 3 of this section by the difference between the ratio computed pursuant to subsection C, paragraph 2 of this section and one.
The auditor general shall notify the state treasurer of:

(a) The ratio computed pursuant to subsection C, paragraph 2 of this section.

(b) The difference computed pursuant to paragraph 1 of this subsection.

At the time of the next regularly scheduled distribution, the state treasurer shall withhold from the amount that would otherwise be distributed to the eligible city pursuant to section 42-5029 an amount equal to the amount stated in the notice received pursuant to paragraph 2 of this subsection. If the amount available for distribution is less than the amount to be withheld, the state treasurer shall continue withholding from subsequent distributions until the full amount stated in the notice has been withheld.
The eligible city may request and the auditor general shall conduct or contract for a complete economic and fiscal impact analysis of the eligible project. If an analysis is requested:

(a) The auditor general shall not notify the state treasurer pursuant to paragraph 2 of this subsection, and the state treasurer shall not withhold pursuant to paragraph 3 of this subsection, pending completion of the analysis.

(b) The analysis shall be similar to the analysis described in subsection B of this section, except that the analysis shall examine the operations of the eligible project in the year for which the ratio is less than one.

(c) The analysis, at a minimum, shall estimate the total cumulative incremental revenues to the state general fund resulting from the completion of the eligible project including the revenues resulting from the construction activity associated with the completion of the eligible project.

(d) And the analysis demonstrates that the total cumulative incremental revenues to the state general fund exceed the total cumulative amount of distributions pursuant to section 9-602 as computed in subsection B, paragraph 3 of this section, the auditor general shall not notify the state treasurer pursuant to paragraph 2 of this subsection and the state treasurer shall not withhold pursuant to paragraph 3 of this subsection.

(e) And the analysis demonstrates that the total cumulative incremental revenues to the state general fund are less than the total cumulative amount of distributions pursuant to section 9-602 as computed in subsection B, paragraph 3 of this section:

(i) The auditor general shall subtract the amount of the total cumulative incremental revenues to the state general fund from the amount of the total cumulative distributions.

(ii) The auditor general shall notify the state treasurer of the difference computed pursuant to item (i) of this subdivision.

(iii) At the time of the next regularly scheduled distribution, the state treasurer shall withhold from the amount that would otherwise be distributed to the eligible city pursuant to section 42-5029 an amount equal to the amount stated in the notice received pursuant to item (ii) of this subdivision. If the amount available for distribution is less than the amount to be withheld, the state treasurer shall continue withholding from subsequent distributions until the full amount stated in the notice has been withheld.

E. The eligible city shall reimburse the auditor general for any costs incurred in complying with the requirements of this section.

Chapter 7 Ordinances and Codes; Publication; Elections and Voters

Article 1 Enactment of Code or Public Record by Reference

§ 9-801 Definitions

In this article, unless the context otherwise requires:

"Code" means a published compilation of rules or regulations prepared by a technical trade association and includes any building code, electrical wiring code, health or sanitation code, fire prevention code, wildland-urban interface code, inflammable liquids code, code for slaughtering, processing and selling meat and meat products or for production, pasteurizing and sale of milk and milk products, or other code that embraces rules and regulations pertinent to a subject that is a proper subject of municipal legislation.
"Municipality" means a city or town organized in accordance with law, including a home rule or charter city.
"Public record" includes a statute, rule or regulation of the United States, this state or the municipality that is desired to be adopted by reference.
"Published" means printed, lithographed, multigraphed, mimeographed or otherwise reproduced, including electronic reproduction online.

§ 9-802 Procedure for adoption by reference

A municipality may enact the provisions of a code or public record theretofore in existence without setting forth the provisions, but the adopting ordinance shall be published in full. Exhibits are not required to be published as long as the words "exhibits on file at" and the location where they can be located are printed on the bottom of the adopting ordinance. At least three paper copies or one paper copy and one electronic copy maintained in compliance with section 44-7041 of the code or public record shall be filed in the office of the clerk of the municipality and kept available for public use and inspection. A code or public record enacted by reference may be amended in the same manner.

§ 9-803 Limitation on enactment of penalty clauses

No penalty clause shall be enacted by reference thereto. A penalty clause contained in a code or public record adopted by reference shall be set forth in full in the adopting ordinance.

§ 9-804 Ratification of certain enactments by reference

The enactment of any municipality which has adopted a code or public record by reference thereto prior to March 29, 1951 is ratified and declared effective upon the filing of three copies of the code or public record with the clerk of the municipality.

§ 9-805 Building code moratorium on residential and commercial buildings

Beginning June 30, 2009 through June 30, 2011, any new or modified residential or commercial building code or other related code that is adopted by a municipality does not apply to a residential or commercial building that received a final site plan or subdivision plat, planned area development or similar approval by a municipality before June 1, 2009. This section does not prohibit any code changes to the extent and duration required to comply with conditions for federal stimulus funding.

§ 9-806 Wildland-urban interface code

A. A city or town may adopt a current wildland-urban interface code. The code may be adapted from a model code adopted by a national or international organization or association for mitigating the hazard to life and property.

B. A city or town must follow written public procedures in the development and adoption of the code and any revisions to the code to provide effective, early and continuous public participation through:

The broad dissemination and publicity of the proposed code and any revisions to the code.
The opportunity for submission and consideration of written public comments.
Open discussions, communications programs and information services.
Consultation with federal agencies and state and local officials.

§ 9-807 Mandated fire sprinklers in certain residences prohibited; exception; permit application format

A. A municipality shall not adopt a code or ordinance or part of a uniform code or ordinance that prohibits a person or entity from choosing to install or equip or not install or equip fire sprinklers in a single family detached residence or any residential building that contains not more than two dwelling units. A municipality shall not impose any fine, penalty or other requirement on any person or entity for choosing to install or equip or not install or equip fire sprinklers in such a residence. This section does not apply to any code or ordinance that requires fire sprinklers in a residence and that was adopted before December 31, 2009.

B. A fire sprinkler permit application may be in either print or electronic format.

C. A municipality shall include the provisions of subsection A of this section on fire sprinkler permit applications that are for a single family detached residence or any residential building that contains not more than two dwelling units.

§ 9-808 Fire apparatus access road or approved route; fire watch requirements; enforcement; intent; state preemption; definitions

A. A municipality may not adopt any, or part of any, fire code, ordinance, stipulation or other legal requirement for an approved fire apparatus access road or a fire apparatus access road extension, or both, or an approved route or a route extension, or both, that directly or indirectly requires a one or two family residence or a utility or miscellaneous accessory building or structure to install fire sprinklers. A fire code official may increase or extend an approved fire apparatus access road or a fire apparatus access road extension, or both, or an approved route or a route extension, or both, to comply with this section. Compliance with this subsection is not grounds to deny or suspend a license or permit.

B. Nothing in subsection A of this section prohibits a municipality from adopting fire codes or ordinances to provide sufficient fire access and fire routes that ensure public health and safety.

C. If a municipality's fire code requires the use of a fire watch, an employee who works at the building in which a fire watch is required may serve as the fire watch. A person who is designated as a fire watch shall be equipped with means to contact the local fire department, and the person's only duty while keeping watch for fires shall be to perform constant patrols of the protected premises. The municipality shall provide the fire watch with printed instructions from the office of the state fire marshal and may provide a free training session before the person's deployment as the fire watch begins.

D. Subsection A of this section may be enforced in a private civil action and relief, including an injunction, may be awarded against a municipality. The court shall award reasonable attorney fees, damages, lost opportunity costs, interest and the cost of the sprinkler system to a party that prevails in an action against a municipality for a violation of subsection A of this section.

E. The legislature finds and determines that property rights are a matter of statewide concern and a fundamental element of freedom. A property owner's right to use the property owner's property must be protected from unreasonable abridgment by municipal regulation and enforcement. This section supersedes and preempts any regulation adopted by a municipality regarding an approved fire apparatus access road, fire apparatus access road extension, approved route or route extension.

F. For the purposes of this section:

"Fire code" includes the international fire code, however denominated.
"Fire watch" means a person who is stationed in a building or in a place relative to a building to observe the building and its openings when the fire protection system for the building is temporarily nonoperational or absent.
"Utility or miscellaneous accessory building or structure" includes an agricultural building, aircraft hangar, accessory to a residence, barn, carport, fence that is more than six feet high, grain silo, greenhouse, livestock shelter, private garage, retaining wall, shed, stable, tank or tower.

§ 9-809 Semipublic swimming pools; locking device; pool barrier gates; exception

A. From and after December 31, 2014, a code or ordinance or part of a uniform code or ordinance that is adopted by a city or town applies to locking devices for pool barrier gates used for means of ingress or egress for semipublic swimming pools. Any new construction or major renovation of a semipublic swimming pool from and after December 31, 2014 must meet the requirements of the code or ordinance or part of the uniform code or ordinance that is adopted by the city or town.

B. Subsection A of this section does not apply to a locking device for a pool barrier gate used for means of ingress or egress for a semipublic swimming pool that was installed before January 1, 2015, if the locking device meets the requirements prescribed in section 36-1681, subsection B, paragraph 3.

§ 9-810 State preemption; utilities; restrictions; prohibition; limitation; definition

A. The regulation of a utility provider's authority to operate and serve customers is a matter of statewide concern. A person's or entity's ability to use the services of a utility provider that is capable and authorized to provide utility service is not subject to further regulation by a municipality pursuant to this section.

B. Any code, ordinance, land use regulation or general or specific plan provision or part of a code, ordinance, land use regulation or general or specific plan provision adopted by a municipality may not prohibit or have the effect of restricting a person's or entity's ability to use the services of a utility provider that is capable and authorized to provide utility service at a person's or entity's property.

C. A municipality may not impose a fine, penalty or other requirement that has the effect of restricting a utility provider's authority to operate or serve customers.

D. This section does not affect any authority of a municipality to manage the public highways within the municipality's boundaries or to exercise the municipality's police powers to review and approve an application before issuing a permit to perform work in the public highways or to enforce associated permit conditions.

E. This section does not affect any authority of a municipality to manage or operate a municipally owned utility.

F. For the purposes of this section, "utility service" means water, wastewater, natural gas, including propane gas, or electric service provided to an end user.

§ 9-810.01 Building codes; refrigerants

Any code, ordinance or general or specific plan provision or part of a code, ordinance or general or specific plan provision adopted by a municipality may not prohibit the use of refrigerants that are listed as acceptable pursuant to the clean air act (69 Stat. 322; 42 United States Code section 7671k) if the equipment used is listed and installed in accordance with the use conditions prescribed in the clean air act.

Article 2 Publication of Proceedings and Ordinances

§ 9-811 Publication of record of proceedings of governing body

The minutes of the proceedings of the governing body of an incorporated city or town, or an abstract of the minutes, may be published as the council or board by resolution entered upon their minutes may direct.

§ 9-812 Publication of notices and ordinances

A. Notices of election, invitations for bids, notices of letting contracts, laws and ordinances, and other notices of a public character issued by authority of the governing body of any city or town, shall be published in one of the following:

A newspaper that is printed and published within the city or town.
A newspaper printed and published within the county in which the city or town is located with a greater circulation to residents of the city or town.

B. In cases of laws or ordinances enacted on behalf of a private person, he shall pay the expense of publication, and may designate the newspaper.

C. Subsection A of this section shall further apply to notices and resolutions that require newspaper publication under title 48, chapter 4 unless otherwise stated in title 48.

§ 9-813 Posting of ordinances and notices

Every ordinance imposing a penalty, fine, forfeiture or other punishment, in addition to the provisions of section 9-812, shall be published after its enactment by posting at city or town hall or in one public place, within the city or town, on the city's or town's website and any additional public notice as is reasonable and practicable and shall be in force from and after the date of posting. Exhibits to the ordinance may be excluded from the postings pursuant to this section if the city or town lists in the postings where the exhibits are available for public use and inspection. Posting may be established by the affidavit of the person who posted the ordinance filed with the clerk.

Article 3 Elections and Voters

§ 9-821 Law governing municipal elections

The manner of conducting and voting at elections of a city or town, of keeping the poll lists, counting and canvassing the votes, certifying the returns, declaring the results and notifying the persons elected, contesting the election, and all acts relating to the election, shall conform to the provisions of law relating to the general election of county officers as nearly as possible, except that the returns shall be made to the clerk of the city or town, and the governing body of the city or town shall canvass the returns, declare the result and issue the certificates of the election.

§ 9-821.01 Declaration of statewide concern; nonpartisan city and town elections; districts; procedure

A. Arizona courts have recognized that the Constitution of Arizona requires the legislature's involvement in issues relating to elections conducted by charter cities, including initiative and referendum elections, the method of elections other than by ballot, laws relating to primary elections, voter registration laws to prevent abuse and fraud and campaign finance laws. The legislature finds that the conduct of elections described in this section is a matter of statewide concern.

B. Notwithstanding any other law, a city or town shall not hold any election on candidates for which there is any indication on the ballot of the source of the candidacy or of the support of the candidate.

C. Notwithstanding any other law, for any city or town that provides for election of city or town council members by district, ward, precinct or other geographical designation, only those voters who are qualified electors of the district, ward, precinct or other geographic designation are eligible to vote for that council member candidate in the city or town's primary, general, runoff or other election.

D. Notwithstanding any other law or any charter provision, a city or town may by ordinance provide that at the primary election any candidate for the office of mayor or city council who receives a majority of all votes cast at that election for that office shall be declared elected to the office for which the person is a candidate, effective as of the date of the general election, and a further election may not be held as to such candidate, except that if the person holding the office of mayor or city council at the time of the primary election is holding that office by appointment as prescribed by section 9-235, the following apply:

A candidate for the remainder of that term in office who receives a majority of all votes cast at the primary election both:

(a) Shall be declared elected after the canvass and certification of the results of that primary election and on taking the oath of office.

(b) Shall be seated in accordance with subsection E of this section.

A candidate for a new term in that office who receives a majority of all votes cast at the primary election both:

(a) Shall be declared elected to the new term of office, effective after the canvass and certification of the results of that primary election and on taking the oath of office.

(b) May be seated to complete the remainder of existing term in accordance with subsection E of this section.

E. If more than one candidate receives a majority of all votes cast at the primary for an office that is currently being served by a person who is appointed as provided in subsection D of this section, the order of seating the candidates shall be determined by the highest number of votes.

F. For the purposes of subsection D of this section, the majority of votes cast is determined by:

Calculating the total number of actual votes cast for all candidates for an office whose names were lawfully on the ballot for that office.
Dividing the sum reached pursuant to paragraph 1 of this subsection by the number of seats to be filled for the office.
Dividing the number reached pursuant to paragraph 2 of this subsection by two and rounding that number to the highest whole number.

G. If more candidates receive a majority of votes cast than there are seats to be filled for the office pursuant to subsection D of this section, from among those candidates who receive a majority of votes cast, the candidates who receive the highest number of votes equal to the number of seats to be filled for the office shall be declared elected to that office.

H. If at the primary election no candidate receives the majority of the votes cast or the number of seats to be filled for the office is more than the number of candidates who receive a majority of votes cast, of the candidates who did not receive a majority of votes cast, the number of candidates who advance to the general or runoff election shall be equal in number to twice the number of seats to be filled for the office and the candidates who received the highest number of votes for the office shall be the only candidates at the general or runoff election. If more than one candidate received an equal number of votes and that number was the highest number of votes for the office, then all candidates receiving the equal number of votes shall be candidates at the general or runoff election. The candidates equal in number to the seats to be filled for the office who receive the highest number of votes at the general or runoff election shall be declared elected to that office. If two or more candidates receive an equal number of votes cast for the same office, and a higher number than any other candidate, the candidate who shall be declared elected shall be determined by lot in the presence of the candidates. A write-in candidate may not advance to the general or runoff election if the write-in candidate did not receive a number of votes equivalent to at least the same number of signatures required by section 16-322 for nominating petitions for the same office.

I. In addition to subsection D of this section, any town with a population of five thousand persons or less may by majority vote of the qualified electors of the town voting on the question provide that at the primary election those candidates receiving the highest number of votes for the offices to be filled shall be declared elected to the office, and a further election may not be held if at least three-fifths of the seats are filled by persons receiving a majority of the votes cast as provided in subsection D of this section.

§ 9-822 Qualifications of voters

A. Except as provided in subsection B of this section, a person is not entitled to vote at an election in a city or town if the person has not been a qualified elector as defined in section 16-121 in the city or town for at least twenty-nine days preceding the election.

B. Any person who has resided for at least twenty-nine days preceding an election in an area annexed at least twenty-nine days before such election by a city or town is entitled to vote at any such city or town election, if the person is a qualified elector as defined in section 16-121 on the twenty-ninth day before the election.

§ 9-823 Registration of voters; change of registration

A. A city or town by ordinance or resolution in writing may provide for and require a registration of the voters of the city or town. The registration may be required every two years, and shall begin within sixty days before, and shall be closed ten days before, the regular city or town election.

B. The registration shall show:

The name in full of each registered voter.
The appropriate title of the voter and that the voter is eighteen years of age or over.
Place of birth.
Place of residence by street and number, or ward.
The date of entry of the registration on the register.

C. The voter may change the voter's place of residence as recorded on the register at any time before the closing of the register.

D. No person shall vote at any election in any district except the one in which the person has lived for at least ten days next preceding the election and as shown on the register.

E. Notwithstanding this section or sections 9-824, 16-104 and 16-105, no city or town may maintain a local voter registration list after July 1, 1985 if the county recorder of the county in which such city or town is located complies with section 16-172.

§ 9-824 Registration for elections

In elections where the question of issuing bonds of the municipal corporation is submitted to the qualified electors, the governing body by resolution may require a registration of all persons to vote at the elections, who possess such qualifications. The resolution shall be passed at least thirty days prior to holding the election, and the registration shall begin at least thirty days before and close ten days prior to holding the election.

§ 9-825 Election boards; appointment

At least ten days before an election held in a city or town not exceeding two thousand in population, according to the last official census thereof, the governing body shall appoint, from the qualified electors thereof, one inspector, two judges and two clerks, who shall constitute the election board. In a city or town exceeding two thousand in population, according to the last official census thereof, the governing body shall appoint one inspector, two judges and two clerks for each precinct within the corporate limits thereof who shall constitute the election board for such precinct.

§ 9-826 Publicity pamphlet format; state preemption; bond and tax measures

A. The legislature finds and determines that for the purposes of increasing voter knowledge and government transparency it is a matter of statewide concern that all municipalities fully inform voters of the effects of any vote to approve a bond, sales tax or property tax measure and, therefore, the legislature finds and declares that the publicity pamphlet format for these measures is of statewide concern. This section preempts all local laws, ordinances and charter provisions to the contrary.

B. Notwithstanding any other law, for any municipal election to approve a bond, sales tax or property tax measure, the publicity pamphlet shall include the following:

For a bond approval, an estimate of the annual levy of property taxes sufficient to pay the debt on the bonds.
For a sales tax levy, the amount of the tax increase.
For a property tax levy, an estimate of the tax for:

(a) A single-family residence that is valued at one hundred thousand dollars.

(b) Commercial property that is valued at two hundred fifty thousand dollars.

Article 4 Municipal Regulations

§ 9-831 Definitions

In this article, unless the context otherwise requires:

"Fire and life safety inspection" means an inspection of a regulated person or facility conducted to ensure fire safety compliance.
"Food and swimming pool inspection" means an inspection of a regulated person or facility conducted to ensure the safety of food services, swimming pools and other bathing places.
"License" includes the whole or part of any municipal permit, certificate, approval, registration, charter or similar form of permission required by law. License does not include a transaction privilege tax license.
"Licensing" includes the municipal process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal or amendment of a license.
"Municipal" or "municipality" means an incorporated city or town.
"Person" means an individual, partnership, corporation, association, governmental subdivision or unit of a governmental subdivision or a public or private organization of any character.
"Request for corrections" means a request for technical or clarifying corrections from an applicant who has submitted an administratively complete application for a license.
"Substantive policy statement" means a written expression that is only advisory and that informs the general public of a municipality's current approach to, or opinion of, the requirements of the ordinances or codes, including, if appropriate, the municipality's current practice, procedure or method of action based on that approach or opinion. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the municipality and that do not impose additional requirements or penalties on regulated parties or confidential information.
"Working day" means a twenty-four hour period excluding weekends and legal holidays.

§ 9-832 Regulatory bill of rights

To ensure fair and open regulation by municipalities, a person:

Is eligible for reimbursement of fees and other expenses if the person prevails by adjudication on the merits against a municipality in a court proceeding regarding a municipality decision as provided in section 12-348.
Is entitled to receive information and notice regarding inspections as provided in section 9-833.
Is entitled to have a municipality not base a licensing decision in whole or in part on licensing conditions or requirements that are not specifically authorized as provided in section 9-834, subsection A.
May have a municipality approve or deny the person's license application within a predetermined period of time as provided in section 9-835.
Is entitled to receive written or electronic notice from a municipality on denial of a license application that:

(a) Justifies the denial with references to the statute, ordinance, code or authorized substantive policy statements on which the denial is based as provided in section 9-835.

(b) Explains the applicant's right to appeal the denial as provided in section 9-835.

Is entitled to receive information regarding the license application process at the time the person obtains an application for a license as provided in section 9-836.
May inspect all ordinances, codes and substantive policy statements of a municipality, including a directory of documents, at the office of the municipality or on the municipality's website as provided in section 9-837.
Unless specifically authorized, may expect municipalities to avoid duplication of other laws that do not enhance regulatory clarity and to avoid dual permitting to the maximum extent practicable as provided in section 9-834.
May file a complaint with the municipality concerning an ordinance, code or substantive policy statement that fails to comply with this section.
As provided in section 9-834, is entitled to have a municipality not request or initiate discussions about waiving any of the rights prescribed in this section.

§ 9-833 Inspections; applicability

A. A municipal inspector or regulator who enters any premises of a regulated person for the purpose of conducting an inspection shall:

Present photo identification on entry of the premises.
On initiation of the inspection, state the purpose of the inspection and the legal authority for conducting the inspection.
Disclose any applicable inspection fees.
Except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection, afford an opportunity to have an authorized on-site representative of the regulated person accompany the municipal inspector or regulator on the premises, except during confidential interviews.
Provide notice of the right to have:

(a) Copies of any original documents taken from the premises by the municipality during the inspection if the municipality is permitted by law to take original documents.

(b) A split or duplicate of any samples taken during the inspection if the split or duplicate of any samples, if appropriate, would not prohibit an analysis from being conducted or render an analysis inconclusive.

Inform each person whose conversation with the municipal inspector or regulator during the inspection is tape recorded that the conversation is being tape recorded.
Inform each person interviewed during the inspection that statements made by the person may be included in the inspection report.

B. On initiation of, or two working days before, an inspection of any premises of a regulated person, except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection that has up to one working day after an inspection, a municipal inspector or regulator shall provide the following in writing or electronically:

The rights described in subsection A of this section.
The name and telephone number of a municipal contact person available to answer questions regarding the inspection.
The due process rights relating to an appeal of a final decision of a municipality based on the results of the inspection, including the name and telephone number of a person to contact within the municipality and any appropriate municipality, county or state government ombudsman.

C. A municipal inspector or regulator shall obtain the signature of the regulated person or on-site representative of the regulated person on the writing prescribed in subsection B of this section indicating that the regulated person or on-site representative of the regulated person has read the writing and is notified of the regulated person's or on-site representative of the regulated person's inspection and due process rights. The municipality shall maintain a copy of this signature with the inspection report. Unless the regulated person at the time of the inspection is informed how the report can be located electronically, the municipality shall leave a copy with the regulated person or on-site representative of the regulated person. If a regulated person or on-site representative of the regulated person is not at the site or refuses to sign the writing prescribed in subsection B of this section, the municipal inspector or regulator shall note that fact on the writing.

D. A municipality that conducts an inspection shall give a copy of, or provide electronic access to, the inspection report to the regulated person or on-site representative of the regulated person either:

At the time of the inspection.
Notwithstanding any other state law, within thirty working days after the inspection.
As otherwise required by federal law.

E. The inspection report shall contain deficiencies identified during an inspection. Unless otherwise provided by law, the municipality may provide the regulated person an opportunity to correct the deficiencies unless the municipality determines that the deficiencies are:

Committed intentionally.
Not correctable within a reasonable period of time as determined by the municipality.
Evidence of a pattern of noncompliance.
A risk to any person, the public health, safety or welfare or the environment.

F. If the municipality allows the regulated person an opportunity to correct the deficiencies pursuant to subsection E of this section, the regulated person shall notify the municipality when the deficiencies have been corrected. Within thirty working days of receipt of notification from the regulated person that the deficiencies have been corrected, the municipality shall determine if the regulated person is in substantial compliance and notify the regulated person whether or not the regulated person is in substantial compliance, unless the determination is not possible due to conditions of normal operations at the premises. If the regulated person fails to correct the deficiencies or the municipality determines the deficiencies have not been corrected within a reasonable period of time, the municipality may take any enforcement action authorized by law for the deficiencies.

G. A municipality's decision pursuant to subsection E or F of this section is not an appealable municipal action.

H. At least once every month after the commencement of the inspection, a municipality shall provide the regulated person with an update, in writing or electronically, on the status of any municipal action resulting from an inspection of the regulated person. A municipality is not required to provide an update after the regulated person is notified that no municipal action will result from the municipality's inspection or after the completion of municipal action resulting from the municipality's inspection.

I. This section does not authorize an inspection or any other act that is not otherwise authorized by law.

J. This section applies only to inspections necessary for the issuance of a license or to determine compliance with licensure requirements. This section does not apply:

To criminal investigations and undercover investigations that are generally or specifically authorized by law.
If the municipal inspector or regulator has reasonable suspicion to believe that the regulated person may be or has been engaged in criminal activity.
To inspections by a county board of health or a local health department pursuant to section 36-603.

K. If a municipal inspector or regulator gathers evidence in violation of this section, the violation shall not be a basis to exclude the evidence in a civil or administrative proceeding, if the penalty sought is the denial, suspension or revocation of the regulated person's license or is a civil penalty of more than one thousand dollars.

L. Failure of a municipal employee to comply with this section:

Constitutes cause for disciplinary action or dismissal pursuant to adopted municipal personnel policy.
Shall be considered by the judge and administrative law judge as grounds for reduction of any fine or civil penalty.

M. A municipality may adopt rules or ordinances to implement this section.

N. This section:

Shall not be used to exclude evidence in a criminal proceeding.
Does not apply to a municipal inspection that is requested and scheduled by the regulated person.

§ 9-834 Prohibited acts by municipalities and employees; enforcement; notice

A. A municipality shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule, ordinance or code. A general grant of authority does not constitute a basis for imposing a licensing requirement or condition unless the authority specifically authorizes the requirement or condition.

B. Unless specifically authorized, a municipality shall avoid duplication of other laws that do not enhance regulatory clarity and shall avoid dual permitting to the maximum extent practicable.

C. This section does not prohibit municipal flexibility to issue licenses or adopt ordinances or codes.

D. A municipality shall not request or initiate discussions with a person about waiving that person's rights.

E. This section may be enforced in a private civil action and relief may be awarded against a municipality. The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against a municipality for a violation of this section.

F. A municipal employee may not intentionally or knowingly violate this section. A violation of this section is cause for disciplinary action or dismissal pursuant to the municipality's adopted personnel policy.

G. This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.

H. A municipality shall prominently print the provisions of subsections A, B, C, D, E, F and G of this section on all license applications.

I. The licensing application may be in either print or electronic format.

§ 9-835 Licensing time frames; compliance; consequence for failure to comply with time frame; exemption

A. For any new ordinance or code requiring a license, a municipality shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the municipality's website or the website of an association of cities and towns if the municipality does not have a website.

B. A municipality that issues licenses required under existing ordinances or codes shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the municipality's website or the website of an association of cities and towns if the municipality does not have a website. Municipalities shall prioritize the establishment of time frames for those licenses that have the greatest impact on the public.

C. In establishing time frames, municipalities shall consider all of the following:

The complexity of the licensing subject matter.
The resources of the municipality.
The economic impact of delay on the regulated community.
The impact of the licensing decision on public health and safety.
The possible use of volunteers with expertise in the subject matter area.
The possible increased use of general licenses for similar types of licensed businesses or facilities.
The possible increased cooperation between the municipality and the regulated community.
Increased municipal flexibility in structuring the licensing process and personnel including:

(a) Adult businesses and other licenses that are related to the first amendment.

(b) Master planned communities.

(c) Suspension of the substantive and overall time frames for purposes including delays caused by the need for public hearings, state or federal licenses or approvals from public utilities on residential or commercial development projects.

That the substantive review time frames and overall time frames do not include the time required for an applicant to obtain other nonmunicipal licenses or to participate in meetings as required by law.
The time frames prescribed in section 9-470.01.

D. A municipality shall issue a written or electronic notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame. If the permit sought requires approval of more than one department of the municipality, each department may issue a written or electronic notice of administrative completeness or deficiencies.

E. If a municipality determines that an application for a license is not administratively complete, the municipality shall include a comprehensive list of the specific deficiencies in the written or electronic notice provided pursuant to subsection D of this section. If the municipality issues a written or electronic notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the municipality receives the missing information from the applicant. The municipality may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information. If the permit sought requires approval of more than one department of the municipality, each department may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information.

F. If a municipality does not issue a written or electronic notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete. If a municipality issues a timely written or electronic notice of deficiencies, an application is not complete until all requested information has been received by the municipality. A municipality may consider an application withdrawn if, by fifteen days or more after the date of notice, as established by the municipality, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

G. During the substantive review time frame, a municipality may make one comprehensive written or electronic request for corrections. If the municipality identifies legal requirements that were not included in the comprehensive request for corrections, the municipality may amend the comprehensive request for corrections once to include the legal requirements and the legal authority for the requirements. Within ten working days after a request by the applicant, the municipality shall meet or discuss with the applicant the request for corrections and provide sufficient information and instruction to allow the applicant to provide the requested corrections. If the permit sought requires approval of more than one department of the municipality, each department may issue a comprehensive written or electronic request for corrections. If the applicant fails to resolve an issue identified in a request for corrections, the municipality may make supplemental written or electronic requests for corrections that are limited to issues previously identified in a comprehensive request for corrections. If a municipality issues a comprehensive written or electronic request or a supplemental request for corrections, the substantive review time frame and the overall time frame are suspended from the date the request is issued until the date that the municipality receives the corrections from the applicant. If an applicant requests significant changes, alterations, additions or amendments to an application that are consistent with the purposes of the original application and that are not in response to the request for corrections, a municipality may make one additional comprehensive written or electronic request for corrections and may have not more than an additional fifty percent of the substantive review time frame as established by the municipality for that license to grant or deny the license. Nothing shall prevent communication between a municipality and an applicant regarding a comprehensive written or electronic request for corrections or a supplemental request for corrections. Except for an application submitted pursuant to chapter 4, article 6 or 6.1 of this title, a municipality may not deny a residential license application that is necessary for land development or building construction unless the municipality considers the application withdrawn or the municipality has notified the applicant and the property owner within fifteen working days after the submission of the application that the application may be subject to denial because of excessive substantive deficiencies. A municipality may consider an application withdrawn if, by thirty days or more after the date of notice, as established by the municipality, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

H. Nothing shall prevent the municipality from continuing to process the application during the suspension of the substantive review time frame and overall time frame.

I. By mutual written or electronic agreement, a municipality and an applicant for a license may extend the substantive review time frame and the overall time frame. An extension of the substantive review time frame and the overall time frame may not exceed fifty percent of the overall time frame.

J. Unless a municipality and an applicant for a license mutually agree to extend the substantive review time frame and the overall time frame pursuant to subsection I of this section, a municipality shall issue a written or electronic notice granting or denying a license to an applicant. If a municipality denies or withdraws an application for a license, the municipality shall include in the written or electronic notice at least the following information:

Justification for the denial or withdrawal with references to the statutes, ordinances, codes or substantive policy statements on which the denial or withdrawal is based.
An explanation of the applicant's right to appeal the denial or withdrawal. The explanation shall include the number of working days in which the applicant must file a protest challenging the denial or withdrawal and the name and telephone number of a municipal contact person who can answer questions regarding the appeals process.
An explanation of the applicant's right to resubmit the application, the total amount of fees that will be assessed if the applicant resubmits the application and the method in which those fees were calculated.

K. If a municipality makes more than one comprehensive written or electronic request for corrections and one supplemental written or electronic request for corrections to a license application necessary for residential building construction or land development limited to previously identified issues or in response to modifications made by the applicant or does not issue the applicant the written or electronic notice granting, conditionally granting or denying a license within the overall time frame or within the mutually agreed on time frame extension, the municipality shall refund to the applicant all fees charged for reviewing and acting on the application for the license and shall excuse payment of any fees that have not yet been paid. The municipality shall not require an applicant to submit an application for a refund pursuant to this subsection. The refund shall be made within thirty working days after the expiration of the overall time frame or the time frame extension. The municipality shall continue to process the application. Notwithstanding any other statute, the municipality shall make the refund from the fund in which the application fees were originally deposited. The right to receive a refund of fees charged for reviewing and acting on the application for the license may not be waived by an applicant.

L. If an application for a license is denied and the applicant resubmits the application for the same purposes with only revisions or corrections to the original application, the municipality shall not assess any additional application fees that exceed the cost of processing the resubmitted revisions or corrections. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

M. If an application for a license is withdrawn and the applicant resubmits the application for the same purpose, the municipality shall not assess any additional application fees that exceed fifty percent of the original application fees that have not been refunded to the applicant. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

N. A municipality may not modify, rescind or request any subsequent modifications or revisions to an approved plan or permit for residential land development or residential building construction during construction if the construction is done in accordance with the approved plan or permit unless the modification, rescission or revision is any of the following:

Required to address a field condition that was unknown when the plan or permit was reviewed.
Made at the request of the applicant, the applicant's designee or a subsequent owner or owner's designee if the property that is the subject of the approved plan or permit changes ownership. For the purposes of this paragraph, "applicant" means a person that is seeking approval or has received approval from a municipality for construction or land development activities.
Made by the municipality to correct noncompliance with a code requirement unless the code requirement was identified before the plan was approved and the municipality made a decision or interpretation on which the approval was based.

O. This section does not apply to a license that is issued within seven working days after receipt of the initial application or a permit that expires within twenty-one working days after issuance.

§ 9-836 License application process; notice

A. A municipality that issues licenses shall provide the following information to an applicant at the time the applicant obtains an application for a license:

A list of all of the steps the applicant is required to take in order to obtain the license.
The applicable licensing time frames.
The name and telephone number of a municipal contact person who can answer questions or provide assistance throughout the application process.
The website address and any other information, if applicable, to allow the regulated person to use electronic communication with the municipality.
Notice that an applicant may receive a clarification from the municipality of its interpretation or application of a statute, ordinance, code or authorized substantive policy statement as provided in section 9-839.

B. A municipality that issues a business license shall provide notice of any model or local option in the model city tax code that will apply to an applicant at the time the applicant obtains a business license application.

§ 9-837 Directory of documents

The municipality shall publish, or prominently place on the municipal website, at least annually a directory summarizing the subject matter of all currently applicable ordinances, codes and substantive policy statements. The municipality shall keep copies of this directory and all substantive policy statements at one location. The directory, ordinances, codes, substantive policy statements and any materials incorporated by reference in the documents shall be open to public inspection at the office of the municipality or the municipal website.

§ 9-838 Complaints; governing body review

The governing body may receive complaints concerning ordinances, codes, substantive policy statements or municipality practices alleged to violate this article. The governing body may review any ordinance, code, substantive policy statement or municipal practice alleged to violate this article and may hold hearings regarding the allegations. The governing body may recommend actions to alleviate the aspects of the ordinances, codes, substantive policy statements or municipality practices alleged to violate this article.

§ 9-839 Clarification of interpretation

A. An applicant for a license subject to this article may request a municipality to clarify its interpretation or application of a statute, ordinance, code or authorized substantive policy statement affecting the procurement of that license by providing the municipality with a written request that states:

The name and address of the applicant requesting the clarification.
The statute, ordinance, code or authorized substantive policy statement or part of the statute, ordinance, code or authorized substantive policy statement that requires clarification.
Any facts relevant to the requested ruling.
The applicant's proposed interpretation of the applicable statute, ordinance, code or authorized substantive policy statement or part of the statute, ordinance, code or authorized substantive policy statement that requires clarification.
Whether, to the best knowledge of the applicant, the issues or related issues are being considered by the municipality in connection with an existing license or license application.

B. On receipt of a request that complies with subsection A, the municipality may meet with the applicant to discuss the written request and shall respond within thirty days of the receipt of the written request with a written explanation of its interpretation or application as raised in the written request. The municipality shall provide the applicant with an opportunity to meet and discuss the municipality's written explanation.

C. The municipality may modify a written explanation provided under subsection B on written notice to the applicant if required by a change in the law that was applicable at the time the clarification of interpretation was issued, including changes caused by legislation, administrative rules formally adopted by the governing body or a court decision.

§ 9-840 Exemptions

This article does not apply to:

An ordinance, code, regulation or substantive policy statement that relates only to the internal management of a municipality and that does not directly and substantially affect the procedural or substantive rights or duties of any segment of the public.
An ordinance, code, regulation or substantive policy statement that relates only to the physical servicing, maintenance or care of municipally owned or operated facilities or property.
An ordinance, regulation or substantive policy statement that relates to inmates or committed youth, a correctional or detention facility under the jurisdiction of the municipality or a patient admitted to an institution or treatment center pursuant to court order.
An ordinance, code, regulation or substantive policy statement that relates to a municipal contract.
The function or operation of a municipal airport, public safety department, police department, town marshal's office, fire department, ambulance service or zoning adjustment process pursuant to 9-462.06.

§ 9-841 Limitation on regulatory actions; health, safety and welfare; goods and services; definitions

A. Unless authorized by federal, state or local law a city or town may not take any action that materially increases the regulatory burdens on a business unless there is a threat to the health, safety and welfare of the public that has not been addressed by legislation or industry regulation within the proposed regulated field.

B. Unless authorized by federal, state or local law, a city or town may not apply a regulation to a qualified marketplace platform if the purpose of that regulation is to regulate a business that provides goods or services directly to the customer.

C. For the purposes of this section:

"Qualified marketplace contractor" means any person or organization, including an individual, corporation, limited liability company, partnership, sole proprietor or other entity, that enters into an agreement with a qualified marketplace platform to use the qualified marketplace platform's digital platform to provide goods or services to third-party individuals or entities seeking those services.
"Qualified marketplace platform" means an organization, including a corporation, limited liability company, partnership, sole proprietor or any other entity, that operates a digital platform that facilitates the provision of goods or services by qualified marketplace contractors to third-party individuals or entities seeking those goods or services.

§ 9-842 Regulation of occupation, trade or profession; notice; hearing; exemptions; definition

A. A city or town may not impose an occupational licensing requirement on any occupation, trade or profession unless the new occupational licensing requirement is necessary to protect the health, safety or welfare of the public.

B. Beginning August 3, 2018, a city or town may not impose an occupational licensing requirement on any occupation, trade or profession on which the city or town has not previously imposed a fee, requirement or other regulation unless the city or town adopts the occupational licensing requirement pursuant to the procedures prescribed in subsection C of this section and demonstrates that the new occupational licensing requirement is necessary to protect the health, safety or welfare of the public.

C. Before adopting an occupational licensing requirement on any occupation, trade or profession, a city or town shall hold at least one public hearing on the proposed occupational licensing requirement. The city or town shall publish notice of the time and place of the public hearing on the occupational licensing requirement, including a general explanation of the matter to be considered, pursuant to section 9-812.

D. If the city or town adopts an occupational licensing requirement pursuant to this section, the city or town shall determine and establish administrative rules and procedures for the application and enforcement of the occupational licensing requirement. The city or town may:

Assign or delegate administrative powers and duties to any agency, as necessary.
Create administrative agencies.
Provide for officials and for monies for the compensation of officers, employees and agencies and for the support of their work.

E. A city or town that does not adopt an occupational licensing requirement is not prohibited from adopting an occupational licensing requirement in the future if the city or town follows the procedures in subsection C of this section when reconsidering the requirement.

F. An occupational licensing requirement adopted pursuant to this section shall terminate five years after its adoption unless the city or town continues the occupational licensing requirement after following the procedures prescribed in subsection C of this section at least three months before the occupational licensing requirement expires.

G. An occupational licensing requirement that is in effect on August 3, 2018 shall terminate August 3, 2023 unless the city or town continues the occupational licensing requirement after following the procedures prescribed in subsection C of this section at least three months before the occupational licensing requirement expires and demonstrates that the occupational licensing requirement is necessary to protect the health, safety or welfare of the public.

H. This section does not apply to an occupational licensing requirement on an individual who works or seeks employment in a lawful occupation, trade or profession at:

A structured sober living home as defined in section 9-500.40.
An establishment that provides an adult service as defined in section 11-811.
An adult oriented business as defined in section 11-811.
A public airport under title 28, chapter 25.

I. For the purposes of this section, "occupational licensing requirement":

Means:

(a) A rule, regulation, practice or policy that is adopted by a city or town and that allows an individual to use an occupational title or work in a lawful occupation, trade or profession or a regulatory requirement that prevents an individual from using an occupational title or working in a lawful occupation, trade or profession.

(b) A fee or tax that a city or town imposes on an individual to use an occupational title or work in a lawful occupation, trade or profession.

Does not include:

(a) A business license, facility license, building permit or zoning and land use regulation.

(b) Any license or regulation that is required by federal law.

§ 9-843 Licensing; permitting; free speech or assembly; land use; density; time frames; criteria; clarity

A. Notwithstanding any other law, if a municipality requires a license or permit for any free speech or assembly activity or any activity that changes the use, appearance or density of a structure or land, the municipality shall specify in clear and unambiguous language the criteria for granting the license or permit, unless criteria are established by existing state or federal law.

B. A municipality shall approve or deny application submittals for the activities prescribed in subsection A of this section within sixty days after a submittal is deemed administratively complete pursuant to section 9-835 unless another time frame is specified by a municipal ordinance or state or federal law. If the municipality does not take action on a submittal within the applicable time frame, the submittal is deemed approved, unless the submittal is incomplete, the municipality provides notice pursuant to sections 9-495 and 9-835 and the applicant fails to complete the submittal.

C. In a court proceeding involving a denial of a license or permit for any of the activities prescribed in subsection A of this section, the court, without deference to a previous determination made by the municipality, shall determine whether the approval criteria language is clear and unambiguous.

Chapter 8 Police and Fire Departments

Article 1 Minimum Wages

§ 9-901 Definitions

In this article, unless the context otherwise requires:

"Classification" means the names of the positions, and the ranks and classes thereof, in the police and fire departments and peace officers' units subject to this article.
"Month" means thirty days.
"Peace officers" include regularly salaried deputy sheriffs, policemen and police officers of duly organized police departments.
"Professional firefighter" means a member of an organized and paid fire department.

§ 9-903 Coverage of article

This article shall not be construed to apply to a person holding a courtesy or honorary commission in the police, peace officers or fire forces of a city or town, or to persons not appointed in accordance with the rules, regulations, ordinances, charter provisions or statutes concerning appointments to the police, peace officers or fire department to which appointment is claimed, or to those officers employed in part time service.

§ 9-904 Violations; classification

A person, municipal corporation or other political subdivision of the state violating any provision of this article is guilty of a class 2 misdemeanor.

Article 2 Police Pensions

§ 9-911 Definitions

In this article, unless the context otherwise requires:

"Board" means the police pension board.
"Department" means the police department.
"Departmental member" means a member of the police pension board chosen from among the members of the department other than the chief of police.
"Fund" means the police pension fund.
"Governing body" means the city commission, city or town council or other governing body of the municipality.
"Member" or "member of the department" means a member of the police department, duly commissioned and sworn as a peace officer with all the powers and duties thereof, and includes all ranks and both sexes. Any person employed in the police department who has actually contributed to the police pension fund before the first day of January, 1964, and who is not included within this definition, shall be allowed to continue to contribute to the police pension fund and to receive the benefits conferred by this article but all other persons are excluded.

§ 9-912 Police pension fund

In each city having a population, according to the last federal census, of not less than twenty thousand inhabitants, there is created, and in each incorporated city or town having a population of less than twenty thousand inhabitants, there may be created by ordinance, a police pension fund, which shall be managed, controlled and distributed in accordance with the provisions of this article.

§ 9-913 Administration of fund; police pension board; membership

A. The police pension fund shall be administered by a police pension board. In cities in which the provisions of this article are or shall hereafter become mandatory, the board shall be composed of the president of the civil service commission, if there is one, and if there is none, then the head of the governing body of the municipality, and the clerk, the treasurer, the chief of police and three subordinate members of the police department. In cities or towns in which the fund is established by ordinance, the board shall consist of the mayor, or other head of the governing body of the municipality, the clerk, the treasurer and two members of the department.

B. The president of the civil service commission, mayor or other head of the governing body, as the case may be, shall be ex officio chairman, the clerk shall be ex officio secretary, and the treasurer shall be ex officio treasurer of the board.

§ 9-914 Election of departmental members of board

The governing body of a municipality, within thirty days after the provisions of this article become effective as to the municipality, shall call an election for the purpose of selecting departmental members of the board. The election shall be held at the city or town hall or such other convenient place as the governing body may determine, and during such hours as will enable all qualified persons to cast their ballots. Balloting shall be secret and each permanent member of the police department, regularly appointed and qualified, shall be entitled to vote for as many candidates as there are places to be filled. The vote shall be canvassed and the result announced by the governing body within one week after the election. The members of the department, to the number of places to be filled, successively receiving the highest number of votes, shall be declared elected. Thereafter a regular election shall be held annually on the second Monday in January of each year.

§ 9-915 Terms of departmental members

The terms of office of departmental members of the board shall end at noon on the third Monday in January of the year following the year in which they are elected, but the members shall continue to serve until their successors are elected and qualify.

§ 9-916 Vacancies in departmental membership

A vacancy occurring in the departmental membership of the board shall be filled at a special election. Notice of the election shall be given not less than one week prior thereto. The election shall be called by the governing body upon occurrence of the vacancy.

§ 9-917 Oath of office

The oath of office shall be administered to departmental members by the presiding officer of the board.

§ 9-918 Compensation of pension board members; liability on bonds

No member of the board shall receive compensation for services performed as a member or employee of the board. The ex officio members shall be liable on their official bonds for any misconduct in connection with the performance of their duties as such.

§ 9-919 Organizational meeting

Within one week after declaration of the result of the first election held as prescribed in section 9-914, the chairman ex officio of the board shall call a meeting for the purpose of organization, the adoption of rules and such other action as may be necessary to carry out the purposes of this article.

§ 9-920 Meetings of pension board

The board shall hold regular monthly meetings on a date fixed by its rules, and such other meetings, after due notice to each member, as the board deems necessary. A majority of the members shall constitute a quorum, but no retirement shall be ordered, application for pension approved, warrant authorized or money paid out of the fund except upon the affirmative votes of a majority of the members taken by roll call, and entered in the official record of proceedings of the meeting at which such action is taken. All meetings shall be public.

§ 9-921 Powers and duties of the board; audit

A. The police pension board shall have exclusive control and management of the police pension fund, subject to this article. It shall make rules, not inconsistent with this article, for its government, the conduct of its proceedings and the management of the fund, and shall do all things necessary to carry out this article. It may compel witnesses to attend hearings, or produce records and papers, and testify with respect to applications for pensions, or on any matter connected with the fund, and any member of the board may administer oaths to such witnesses.

B. The board may invest or reinvest, in the name of the board, that portion of the fund which in its judgment is available for investment in such interest-bearing securities as follows:

Bonds of the United States.
Federal housing insured mortgage bonds of the United States.
Bonds, debentures or other obligations issued by the federal land banks, the federal intermediate credit banks or the banks for cooperatives.
Any bonds on which the payment of interest and principal is guaranteed by the United States.
Bonds issued by any United States government instrumentality or federal agency that qualify and are acceptable as security for public funds of the United States government.
General obligation bonds of the state or of the counties, incorporated cities and towns and school districts.
Revenue bonds of the incorporated cities and towns of this state, the Arizona board of regents, the Arizona power authority or any other legally constituted state authority or agency authorized by law to issue revenue bonds, except revenue bonds for recreational purposes issued by cities and towns.
Bonds of agricultural improvement districts and agricultural improvement and power districts organized under the laws of this state when issued or guaranteed, with the approval of the secretary of the interior, by corporations operating a United States reclamation project within the state.
Bonds of incorporated cities or towns of this state issued under sections 48-595, 48-596, 48-597, 48-598, 48-599, 48-600, 48-601, 48-602, 48-603, 48-604, 48-605, 48-606, 48-607, 48-608, 48-609, 48-609.01 and 48-610.
First lien bonds of sanitary districts issued pursuant to title 48, chapter 14.
Registered warrants of the state, or registered county or school district warrants when offered as security for monies of the county or school district by which they are issued.
Interest-bearing savings accounts or certificates of deposit in banks doing business in this state whose accounts are insured by the federal deposit insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.
Interest-bearing savings accounts or certificates of deposit in savings and loan associations doing business in this state whose accounts are insured by the federal savings and loan insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.
Deposits placed in accordance with the procedures prescribed in section 35-323.01.

C. The board shall cause an annual audit and report of the fund to be made by a certified public accountant, and shall also cause actuarial studies of the fund to be made periodically, but not less than once in each three years, by a qualified actuary who is a member of the society of actuaries. The actuary shall make specific recommendations as to the contributions to be made to the fund in accordance with section 9-923, subsection A, paragraph 10 in order to maintain the fund on an actuarially sound basis.

§ 9-922 Annual report of board

The board shall submit a written report to the governing body on the first Monday in January of each year, showing in detail the condition of the fund and transactions of the board during the preceding year.

§ 9-923 Contents of fund; choice of method of payment by municipality

A. The police pension fund shall consist of:

Five per cent of the compensation paid to each member of the department to be deducted from each salary warrant issued in payment for the services of a member, which shall be refunded to any member who is discharged or otherwise separated from the service, with interest at the rate of two per cent per annum.
An equal amount to be paid by the city or town in which the pension fund is established, and not to be refunded.
All monies received from fines imposed upon members of the department for violation of the rules.
All rewards given or paid to members of the department.
Ten per cent of all monies received from municipal licenses or permit fees for keeping places wherein spirituous, malt, or other intoxicating liquors are sold in cities or towns within the provisions of this article.
Twenty-five per cent of all monies received from the licensing of pawnbrokers, second-hand dealers, junk dealers, billiard-hall keepers, pool or pigeon-hole table keepers and card-room keepers, in cities and towns within the provisions of this article.
Twelve and one-half per cent of all monies collected as fines for violating city or town ordinances in cities or towns within the provisions of this article.
Earnings upon the deposit, loan or investment of the fund.
Monies received from taxes levied by the state for support of the fund.
Contributions which shall be made to the fund by the municipality annually pursuant to the advice and as recommended by the actuary provided for in section 9-921. The governing body shall provide for the payment of the contributions from the general fund of the municipality.

B. The governing body may elect to place the percentages of annual monies received under this section into the general fund of the municipality. If the governing body so elects, then upon the basis of each actuarial determination and appraisal provided for in this article, the board shall prepare an estimate of the amounts necessary to be appropriated by the municipality to provide for the payment in full of all obligations accruing during the ensuing fiscal year. The governing body shall cause to be included annually in the budget a sum sufficient to provide for such obligations of the city or town.

C. The treasurer or other comptroller of the municipality shall pay annually from the general fund of the municipality such sums into the police pension fund as shall be determined by actuarial determination.

§ 9-924 Payment of pensions

Pensions shall be paid from the fund in cases specified in this section and sections 9-925 through 9-928. It is the intention to restrict the operation of this article to situations not covered by the workers' compensation law and to prohibit payments from the fund to persons receiving, or for whose benefit there is being paid, compensation under the workers' compensation law. This limitation shall not apply to a retired member who suffers an occupational disease, or an injury or death as the result of an industrial accident arising out of employment after retirement.

§ 9-925 Computation of pension upon voluntary retirement or upon mandatory retirement; limitation

A. A member of the police department whose membership began prior to July 1, 1952 and who serves the department twenty years in the aggregate may, upon application, be retired, and shall be paid during his lifetime a monthly pension equal to fifty per cent of the average monthly compensation received by him during the period of five years immediately prior to the date of application for retirement. A member of the police department whose membership begins on or after July 1, 1952, and who serves the department twenty-five years in the aggregate may, upon application made after he has reached the age of fifty-five years, be retired, and shall be paid during his lifetime a monthly pension equal to fifty per cent of the average monthly compensation received by him during the period of five years immediately prior to the date of application for retirement.

B. In the case of a member of the police department continuing in active service after the date when he is eligible to make application for retirement under the provisions of this section, upon his retirement the percentage of his average monthly compensation applicable in computing his monthly pension shall be increased by two per cent for each full year of service beyond the date when he was eligible to make application for retirement, but in no case shall the percentage of his average monthly compensation applicable in computing his monthly pension exceed sixty per cent. In the absence of an application for retirement by a member eligible to make application under the provisions of this section, the board may, when it deems such action to be for the best interests of the department, on its own motion propose any such member for retirement, and upon certification of the city or town physician that the member is physically unfit for further police service he shall be retired, and shall thereafter receive the pension prescribed in this section. Nothing in this section shall prohibit the governing body of a municipality from setting a mandatory retirement age by ordinance to be applicable to persons eligible for pensions under this article.

§ 9-926 Computation of pension upon permanent or temporary retirement for injury or disease

A. Any member who has served in the department an aggregate of five years, and who, within the hours he is required to be on active duty, and while engaged in the performance of his duty, contracts a disease or sustains an injury due to his occupation, not compensable under the workers' compensation law, and is found, upon physical examination held as provided in section 9-932, to be unfit physically or mentally for police service by reason of the disease or injury, shall, if the disability is permanent, be retired, and shall be paid, during his lifetime, a monthly pension equal to fifty per cent of the average monthly compensation received by him during the period of five years immediately prior to the order of retirement.

B. If the disability resulting from the disease or injury is temporary, he shall be temporarily retired, and shall be paid, during the period of retirement, one-half the monthly compensation being received by him at the time of his retirement, and he shall submit to a physical examination every six months from the date of retirement, or more often if required by the board, in order to be eligible for the temporary pension.

§ 9-927 Benefits to dependents upon death of member

A. If upon the death, from any cause, of a member retired under the provisions of section 9-925, or of a member after ten years' service and while in the service, or if upon the death of a member retired under the provisions of section 9-926 resulting from disease contracted or injury sustained as provided in section 9-926, the member leaves surviving a spouse, a dependent child under the age of eighteen years, or a dependent parent, a monthly pension shall be paid:

To the surviving spouse, until death or remarriage, if the spouse is the widow or widower of a retired member, an amount equal to two thirds of the monthly pension being paid the retired member at the time of death, or if the surviving spouse is the widow or widower of a member dying after ten years' service and while in the service, an amount equal to one third of the monthly compensation of the deceased at the time of death.
To the guardian of each dependent child who survives in addition to the surviving spouse, until such child is eighteen years of age, or until his dependency shall earlier terminate, ten dollars per month, but if the total of the pensions to the surviving spouse and dependent children would exceed the amount of the pension to which deceased, if living and retired, would be entitled, then an amount equal to one third of the amount of the pension shall be prorated among the children.
To the guardian of the dependent child or children, if there is no surviving spouse entitled to a pension, the amount a surviving spouse so entitled would receive shall be prorated among the children.
To the dependent parent, if there is no surviving spouse or dependent child entitled to a pension, the amount a surviving spouse so entitled would receive, and if there are two dependent parents, the pension shall be paid to the one the board shall determine, or it may be prorated.

B. A pension shall not be payable to the surviving spouse of a retired member whose marriage to the decedent occurred subsequent to such member's retirement, or to any issue of such marriage.

C. For the purpose of this section, the term "dependent parent" means a parent over half of whose support at the time of the death of the member was received by the parent from the member.

§ 9-928 Effect of service as public officer upon pension

A. A person who has been retired from service under the provisions of this article and awarded compensation in accordance therewith, and who after retirement receives a salary as an officer or employee of the municipality from which he was retired shall forfeit and shall not at any time receive compensation for the period during which he receives a salary as such officer or employee, but upon termination of service as such officer or employee all the rights of the pensioner, other than the right to receive compensation for the period after retirement during which he receives a salary as an officer or employee of the municipality from which he was retired, shall be recognized. In no event shall any person ever be entitled to draw a pension from more than one fund provided for under this article.

B. This section shall not be construed to exclude a person retiring from serving on a board or commission the services for which are paid on a per diem basis.

C. Nothing in this section shall be deemed to amend, modify or repeal the provisions of this article relating to death benefits.

§ 9-929 Fund requirements precedent to payment of pensions

A retirement shall not be ordered, or an application for pension allowed, or a warrant or check drawn upon the fund until there is to the credit of the fund a sum equal to one hundred and fifty dollars for each member of the department.

§ 9-930 Payments from fund

Monies paid from the fund shall be paid by the treasurer only upon warrants signed by the chairman and countersigned by the secretary of the board.

§ 9-931 Exemption of pensions from process; prohibition on assignments; exception

A. No pension allowed under this article shall be subject to garnishment, attachment, judgment, execution or other legal process. No person entitled to a pension shall have the right to assign it, nor shall the board recognize an attempted assignment of the pension or pay over any sum which has been assigned or attempted to be assigned.

B. Nothing in this section exempts property from court orders which are the result of a judgment for arrearages of child support or for a child support debt.

§ 9-932 Physical examination of active or temporarily retired member

A member, whether active or temporarily retired, ordered by the board to undergo a physical examination, shall submit himself for examination before the chief medical officer of the municipality, or such other regularly licensed and practicing physician as the board designates, but the member shall have the right to be represented at the examination by a physician of his own choice, whose fee shall be paid from the fund.

§ 9-933 Effect of military service

A member of a police department who served in the military establishment of the United States during a period of national emergency immediately following service as a member of the police department, shall not be required to contribute to the police pension fund by salary deduction or otherwise for the period covered by his military service, but in computing the length of service of a member of a police department for the purpose of determining eligibility for retirement, the period of military service, as prescribed by this section, shall be included.

§ 9-934 Inapplicability of article

A. Effective from and after June 30, 1968, this article shall be amended, and employees employed after June 30, 1968, shall be covered by the provisions of the public safety retirement personnel system in those cities which have established a pension system under the provisions of this article prior to the effective date of this section, subject to the right of election provided for in section 38-854.

B. All funds accumulated and all liabilities for benefits created by authority of title 9, chapter 8, article 2, sections 9-911 to 9-934, inclusive, through June 30, 1968, shall be transferred to the fund maintained under the public safety personnel retirement system on July 1, 1968, and accounted for by each employer. Each employee employed after June 30, 1968, shall be covered by the provisions of the public safety personnel retirement system which continues and amends this section.

Article 3 Fire Fighters' Relief and Pension Fund

§ 9-951 Disposition of fire insurance premium tax proceeds; composition of fund

A. The proceeds of the annual tax provided by law on the gross amount of all premiums received on policies and contracts of fire insurance covering property within this state, after deducting cancellations, return premiums, dividends and the amount received as reinsurance on business in this state, are appropriated and set aside for distribution to cities and towns and legally organized fire districts that procure the services of private fire companies and for the payment of benefits pursuant to this article, article 4 of this chapter or title 38, chapter 5, article 4.

B. Not later than April 30 of each year, the office of the state fire marshal shall certify to the state treasurer the incorporated cities and towns that have organized fire departments, the incorporated cities and towns and legally organized fire districts that procure the services of a private fire company and the areas served by legally organized fire districts, and the department of insurance and financial institutions shall certify to the state treasurer the respective amounts of tax on fire premiums paid in the previous year for properties located in this state. Not later than June 15 of each year, the department of revenue shall certify to the state treasurer the full cash value of the real property and improvements for the previous year in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a fire department or a legally organized fire district. The total amount of the tax proceeds shall then be prorated among the several incorporated cities and towns and legally organized fire districts in proportion to the full cash value of the real property and improvements in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a department or a legally organized fire district to the total full cash value of all incorporated cities and towns and legally organized fire districts that procure the services of a private fire company and incorporated cities and towns that have a fire department and legally organized fire districts in this state.

C. Each incorporated city or town that has an organized fire department and each legally organized volunteer fire district shall deduct five percent from the salaries or compensation of its firefighters and add a like amount from its general revenues. The employer or the employee may add a contribution greater than that specified in this subsection to the fire fighters' relief and pension fund. The total of the two amounts shall be paid each month into the fire fighters' relief and pension fund. The treasurer of each board shall keep a record of the salary deductions. If a firefighter dies under circumstances that do not entitle the firefighter's dependents to a benefit from the fire fighters' relief and pension fund, or if the firefighter becomes separated from the service voluntarily or involuntarily without having become eligible for retirement benefits under the fire fighters' relief and pension fund, all deductions previously made from the firefighter's salary under this article, plus interest as determined by the board, are payable to the firefighter's beneficiary in the event of the firefighter's death, or otherwise to the firefighter.

D. Payroll deductions made under subsection C of this section, plus any additional sums the board of trustees may add, shall be set aside in a permanent reserve fund, the income of which but no part of the principal shall be used to pay retirement benefits or relief, but in order to pay the refunds provided for in subsection C of this section, that portion of the principal that accrues from salary deductions may be drawn on when necessary.

E. For the purposes of this section and section 9-952, full cash value of real property and improvements for the previous year with respect to each incorporated city and town that procures the services of a private fire company are limited to thirty percent of the amount certified by the department of revenue and the percentage shall be utilized in computing the entitlement of an incorporated city or town that procures the services of a private fire company.

§ 9-951.01 Definition

As used in this article, "volunteer fire company" includes "volunteer fire district".

§ 9-952 Disposition of fire insurance premium tax

Not later than July 31 of each year, the state treasurer, using the information provided by the cities and towns and legally organized fire districts, the office of the state fire marshal, the department of insurance and financial institutions and the department of revenue as provided in section 9-951, subsection B, shall distribute the fire insurance premium tax to the respective incorporated cities and towns and legally organized fire districts in proportion to the full cash value of the real property and improvements in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a fire department or legally organized fire district. The warrant issued by the state treasurer to incorporated cities and towns and legally organized fire districts having organized fire departments and to legally organized fire districts shall be identified as "fire fighters' relief and pension fund". The warrant issued by the state treasurer to an incorporated city or town or legally organized fire district procuring the services of a private fire company that has a pension plan covering firefighting personnel shall be identified for deposit in the municipality's general fund or, in the case of a fire district, in the fire fighters' relief and pension fund.

§ 9-953 Fire districts or departments; certification by the office of the state fire marshal

The office of the state fire marshal shall certify the existence of fire districts organized under title 48 and fire departments of incorporated cities and towns. The office of the state fire marshal shall provide this information annually to the state treasurer pursuant to section 9-951, subsection B.

§ 9-954 Board of trustees of fund; membership

A. The mayor or the mayor's designee, the fire chief, the elected chief and secretary-treasurer of a fire district or, if administered by a district board, a board member and the fire chief, four members elected from the fire department or from the fire district and one lay member appointed by the city, town or district constitute the board of trustees of the fire fighters' relief and pension fund for that incorporated city or town or fire district. The board of trustees shall provide for the disbursement of the fund and designate the beneficiaries of the fund as directed in this article.

B. The fire department of each incorporated city or town and each fire district shall elect by ballot from its membership four members of the board of trustees, or number of members as, when added to the incumbent members thereof, will constitute four members in addition to the chief. If two members in addition to the chief are already on the board of trustees, two additional members shall be elected to hold office for the same respective terms as the two incumbent members. At the expiration of the two shorter terms, and thereafter biennially, two members shall be elected for terms of four years each.

C. For an incorporated city or town, the mayor, with the council's consent, shall appoint lay members to fill the elected positions on the board when active volunteers are no longer available. For a fire district, the fire chief, with district board consent, shall appoint lay members to fill the elected positions on the board when active volunteers are no longer available.

§ 9-955 Officers of board; meetings; procedure for disbursements

A. The board of trustees shall elect from its members the president and secretary of the board for the ensuing year. The city or town treasurer, or the county treasurer, as the case may be, shall be treasurer, except that if the board of trustees of a fire district assumes the responsibility for investing and reinvesting the funds pursuant to section 9-957, subsection B, the board of trustees may elect from its members a treasurer who is responsible for the custody of the cash and securities of the fund and for executing the decisions of the board of trustees with respect to investments, reinvestments, receipts and disbursements.

B. The board shall meet annually and at such other times as the president may direct.

C. The board shall issue orders signed by the president and the secretary to the beneficiaries of the amounts ordered paid to such beneficiaries from the fund stating the conditions of the payment. The board of trustees of a fire fighters' relief and pension fund of a fire district that procures the services of a private fire protection company pursuant to section 48-805, subsection B, paragraph 9 may pay directly to the board of the fire district an amount each year of not to exceed the cost of the private fire protection company's pension plan but only to the extent monies are available in the fund. The board shall keep a public record of its proceedings. At each regular meeting it shall transmit to the city, town or county treasurer, as the case may be, a written list of all persons entitled to benefits from the fund, stating the reason and amount of the benefits. The list shall be certified and signed by the president and secretary and attested under oath. The treasurer of the city or town, or in the case of unincorporated towns, the county treasurer, shall enter a copy of the list on a book kept for that purpose. The fund shall not be disbursed without a majority vote of the members of the board, the vote to be entered on the minutes.

D. Notwithstanding the provisions of subsections A and C of this section, if the board of trustees of a fire district assumes the responsibility for investing and reinvesting the funds pursuant to section 9-957, subsection B, the duties of the treasurer may be performed by a member of the board elected by the board. If the duties of the treasurer are performed by a member of the board, the member shall be bonded for an amount determined by the board that shall not be less than the maximum amount of funds in the account at any one time during the previous year.

§ 9-956 Annual audit; report of secretary; sanction

A. The board shall cause an annual audit and report of the fire fighters' relief and pension fund.

B. The secretary shall report, using a form approved by the office of the state fire marshal, annually on or before January 1 to the board the condition of the fire fighters' relief and pension fund and the receipts and disbursements, with a complete list of the fund's beneficiaries and the amounts paid.

C. The board shall send a copy of the annual audit and report of the fire fighters' relief and pension fund to the office of the state fire marshal.

D. If the annual pension fund report is not received by March 31 by the office of the state fire marshal, the participating incorporated city or town or fire district is not eligible to receive its share of fire insurance premium tax monies under section 9-952.

§ 9-957 Powers and duties of board; investments; review of decisions

A. The board may compel witnesses to attend and testify on any matter pertaining to this article, and its president or any member may administer oaths. The board may provide for payment of its necessary expenses, except that no compensation is payable to members of the board for duties performed under this article.

B. Funds that are not immediately required for the payment of pensions or benefits under this article may be invested or reinvested, at the discretion of the board of trustees, by the county treasurer or by the board of trustees, as follows:

In bonds of the United States.
In federal housing insured mortgage bonds of the United States.
In federal land bank bonds.
Any bonds on which the payment of interest and principal is guaranteed by the United States.
Bonds issued by any United States government instrumentality or federal agency that qualify and are acceptable as security for public funds of the United States government.
General obligation bonds of this state or of the counties, incorporated cities and towns and school districts of this state.
Revenue bonds of the incorporated cities and towns of this state, the Arizona board of regents, the Arizona power authority or any other legally constituted state authority or agency authorized by law to issue revenue bonds, except revenue bonds for recreational purposes issued by cities and towns.
Bonds of agricultural improvement districts and agricultural improvement and power districts organized under the laws of this state when issued or guaranteed, with the approval of the secretary of the interior, by corporations operating a United States reclamation project within the state.
Bonds of incorporated cities or towns of this state issued under sections 48-595, 48-596, 48-597, 48-598, 48-599, 48-600, 48-601, 48-602, 48-603, 48-604, 48-605, 48-606, 48-607, 48-608, 48-609, 48-609.01 and 48-610.
First lien bonds of sanitary districts issued pursuant to title 48, chapter 14.
Registered warrants of the state, or registered county or school district warrants when offered as security for monies of the county or school district by which they are issued.
Interest-bearing savings accounts or certificates of deposit in banks doing business in this state whose accounts are insured by the federal deposit insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.
Interest-bearing savings accounts or certificates of deposit in savings and loan associations doing business in this state, whose accounts are insured by the federal savings and loan insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of this state.
Deposits placed in accordance with the procedures prescribed in section 35-323.01.

C. All matters pertaining to the benefits granted by this article to firefighters and their dependents shall be presented to the board, and any person aggrieved by a decision of the board, at any time within thirty days after its decision, may petition for a writ of certiorari, and the court may on final hearing reverse or affirm, wholly or partly, or may modify, the decision reviewed.

§ 9-958 Election to transfer excess assets from fire fighters' relief and pension fund; public safety personnel retirement system; alternate pension and benefit plan; unfunded liability

A. Notwithstanding any other law, if a fire district that is organized pursuant to section 48-803 and that has at least five full-time firefighters, excluding firefighters employed by the fire district pursuant to a contract with a corporation, elects to provide coverage to its full-time firefighters under the public safety personnel retirement system pursuant to section 38-851, the amount of monies accumulated pursuant to this article that is in excess of the amount necessary to provide benefits for volunteer firefighters may be transferred to the public safety personnel retirement fund for the purposes of paying any past, present or future service costs of the district attributable to the full-time firefighters who are included in the public safety personnel retirement system either at the time the fire district executes the joinder agreement with the system or thereafter. Before transferring any monies to the public safety personnel retirement fund, the fire district board shall determine by actuarial procedures prescribed by the manager of the fire fighters' relief and pension fund the amount necessary to fully fund any benefits accrued for volunteer firefighters as of the date or dates of the proposed transfer of monies authorized by this subsection.

B. Excess monies in the fire fighters' relief and pension fund that a fire district elects to transfer to the public safety personnel retirement fund pursuant to subsection A of this section may be transferred in a lump sum at the time the fire district executes its joinder agreement with the public safety personnel retirement system or may be transferred in installments or in any other manner allowed by the fund manager of the public safety personnel retirement system.

C. If a fire district has monies in the fire fighters' relief and pension fund in excess of the amount necessary to provide benefits for volunteer firefighters and the fire district has not made an election to cover its full-time firefighters under the public safety personnel retirement system pursuant to section 38-851 and subsection A of this section, that fire district may apply the excess monies to an alternate pension and benefit plan established pursuant to article 4 of this chapter by that district for the benefit of either its part-time or full-time firefighters, or both. The amounts that may be transferred to the alternate pension and benefit plan shall be determined in the same manner as set forth in subsection A of this section.

D. Notwithstanding any other law, a city or town that maintains a fire fighters' relief and pension fund for past or present volunteer firefighters, or both, or past or present part-time firefighters, or both, may elect to transfer excess monies from the fund to the public safety personnel retirement system to be applied to any past or present unfunded liability. Before transferring any monies to the public safety personnel retirement system, the city or town shall determine by actuarial procedures prescribed by the fire fighters' relief and pension fund board of trustees the amount necessary to fully fund any benefits accrued for part-time or volunteer firefighters as of the date or dates of the proposed transfer of monies authorized by this subsection.

§ 9-963 Grant of temporary relief by board; procedures for immediate pension relief

A. The board of trustees may grant temporary relief and assistance from the fund to any qualified member of a legally organized volunteer fire district or department, or to such member's surviving spouse or surviving dependents.

B. The president, secretary and board shall provide procedures to expedite regular pension payments for immediate distribution to a qualified surviving spouse or dependents of a member who dies as a result of or in the performance of his duties as a fire fighter.

§ 9-965 Termination of benefits

If a beneficiary is declared to be an incapacitated person, pursuant to section 14-5101, or disobeys any requirement of this article, the board may order his pension or allowance discontinued. Thereafter his benefit is payable to his immediate dependents or to his guardian.

§ 9-967 Pension for volunteer fire fighter

A. A person duly appointed and having served either as a member of a legally organized fire district or as a member of a fire department of any incorporated city or town for twenty-five years or more, or who has reached sixty years of age, and served twenty years or more, shall be paid a monthly pension not to exceed four hundred dollars per month based on the benefits available to members of that fire department or district as determined by the board of trustees. The pension shall be paid from the fire fighters' relief and pension fund of his fire district or fire department. Such pension if paid may be increased or decreased in amount, or discontinued at the discretion of the board of trustees.

B. If the funds provided in the volunteer fire fighters' relief and pension fund are insufficient to pay fully the pensions authorized pursuant to this section, the fund shall be prorated among those entitled thereto.

§ 9-967.01 Paid fire fighters who are also volunteers; eligibility for pension benefits

Any person who is a paid member of a fire department and an active member of the public safety personnel retirement system is not eligible to receive pension benefits under this article from that same department.

§ 9-968 Exemption of pension from process; prohibition of assignments; exception

A. No portion of the pension fund or the distributive portions thereof shall be subject to attachment, execution or other judicial process for the satisfaction of a debt or claim against the member or his beneficiaries, and assignments or transfers of any distributive portion shall be void.

B. Nothing in this section exempts property from court orders which are the result of a judgment for arrearages of child support or for a child support debt.

§ 9-969 Applicability of workers' compensation law

This article shall be supplemental and in addition to the workers' compensation law, but firemen and their beneficiaries receiving compensation under those provisions of law shall not receive the benefits provided by this article during the period they receive such compensation, except in the event such compensation is less than the benefits provided by this article, then the relief and pension fund shall pay the deficiency as determined by the board of trustees.

§ 9-970 Effect of military service

A member of a fire department or district who has served as a member of the military establishment of the United States during a period of national emergency, immediately following service as a member of the fire department or district, shall not be required to contribute to the fire fighters' relief and pension fund by salary deduction or otherwise for the period during which the member was in military service. The period of military service shall be included in computing the length of service of the firemen in determining eligibility for retirement.

§ 9-971 Reinstatement after military service

A member of a fire district inducted into the military establishment of the United States for military training shall, upon his discharge from such service, be reinstated with his previous service credits.

§ 9-972 Inapplicability of article

A. Effective from and after June 30, 1968, this article shall be amended as to all full-time paid firemen, and employees other than volunteer firemen employed after June 30, 1968, shall be covered by the public safety personnel retirement system in those cities that have established a pension system under this article before July 1, 1968, subject to the right of election provided for in section 38-854. However, those employers presently participating under sections 9-912 through 9-971 shall not come under the social security act as to their employees.

B. Notwithstanding any provision of law to the contrary, effective from and after June 30, 1968, this article shall apply only to volunteer firemen and all amounts accumulated under this article for full-time paid firemen, as determined by actuarial procedures prescribed by the board of trustees of public safety personnel retirement system, shall be transferred to the fund maintained under the public safety personnel retirement system, and accounted for by each employer. Each full-time paid fireman employed after June 30, 1968, shall be covered by the public safety personnel retirement system, which continues and amends this fund in regard to full-time paid employees.

§ 9-973 Disability insurance for volunteer fire fighters

In addition to the authority granted pursuant to other provisions of this article, the board of trustees, with the approval of the mayor and council if for a volunteer fire department or the board of trustees with the approval of the board of supervisors if for a volunteer fire district, may purchase disability insurance for the volunteer firemen with funds from the volunteer fire fighters' relief and pension fund.

Article 4 Alternate Pension and Benefit Plan

§ 9-981 Authority to purchase alternative pension and benefit plan

A. In lieu of pension and relief benefits provided for under the provisions of article 3 of this chapter, a city, town or fire district may provide for an alternative pension and benefit program for fire fighters not covered under the provisions of article 3 of this chapter or under the public safety personnel retirement system.

B. The fire insurance premium tax received by the city, town or district under section 9-952, contributions from the city, town or district, and deductions from the salaries or compensation of firemen may be used to purchase a private pension or benefit program for firemen. Firemen not covered under the public safety personnel retirement system may elect to be covered under the provisions of the alternative pension and benefit program upon filing a request in writing with the city, town or district.

C. The terms, conditions, benefits, eligibility requirements and contribution rates of the alternative pension and benefit program shall be established by:

For a city or town, by the adoption of a resolution of the city or town council.
For a fire district with a board, by the adoption of a resolution of the board.
For a fire district without a board, by the adoption of a resolution of the board of trustees of the firemen's relief and pension fund and the approval of the board of supervisors.

D. Notwithstanding any other provision of law, pension and benefit programs authorized under this article shall not be construed to be a contract between the employee and employer and are subject to annual appropriations of the city, town or district.

Article 5 Fire Fighters' Training

§ 9-991 Training requirement

A professional fire fighter as defined in section 9-901 shall complete training certified by the director of the department of health services on the nature of sudden infant death syndrome as part of the basic training to become a fire fighter.

Chapter 10 Townsites

Article 1 General Provisions

§ 9-1101 Entry at federal land office of land for townsites

When the governing body of an incorporated city or town, or the board of supervisors of the county in which an unincorporated town is located, hereinafter designated trustee, has entered at the proper land office the land or any part of the land, settled and occupied as the site of the city or town, pursuant to the act of Congress, the governing body or the board of supervisors shall dispose of and convey the title to the lands, or parcels of the land to the persons specified in this article. If three or more of the inhabitants of the town make written request that the entry be made and furnish the money necessary therefor, the entry shall be made.

§ 9-1102 Trustee's bond; keeping of accounts and records

A. Before entering on the discharge of the trustee's duties, the trustee shall execute a bond to the state, with sureties in the sum of $2,000, which shall be filed with the county recorder of the county in which the townsite is located, conditioned to account for all money that may come into the trustee's hands and to discharge the duties of the trust according to the best of the trustee's ability. Action may be brought on the bond by any party aggrieved by the action of the trustee.

B. The trustee shall keep a strict account of all money received and disbursed by the trustee and shall file and keep all books and papers used by or before the trustee, subject to inspection of the inhabitants of the city or town.

§ 9-1103 Survey and plat of townsite; recording

Within three months after the entry, the trustee shall cause the land to be surveyed and platted into blocks, lots, streets and alleys and a plat thereof made, conforming as near as possible to existing rights and claims of occupants. The plat shall be recorded in the office of the county recorder of the county in which the townsite is located. Thereafter the streets and alleys designated in the plat shall remain permanently dedicated to the public use.

§ 9-1104 Notice of entry of land as townsite; statement and filing of claims to land

A. The trustee shall then cause a notice to be published in all the newspapers published in the city or town, or if no newspaper is published therein, then by posting the notice in five public places in the city or town for sixty days successively, giving notice of the entry of the land and requiring every claimant of a lot to file a statement of his claim in the office of the trustee on or before ninety days from the first publication. The statement shall be in writing, signed and sworn to by the claimant, or if absent from the county, by his agent, and shall be recorded in a book to be kept for that purpose by the trustee. It shall specify the grounds of the claim, particularly describe the lots claimed, the date and name, as near as possible, of the first actual occupant, what improvements have been made thereon, and that at the time of making the statement the lots are actually possessed and occupied by the claimant, or that the right to possession and occupation is in him, if then occupied by another.

B. The statement to the trustee shall be accompanied by a fee of twenty cents a folio for filing and recording. The claimant shall within sixty days after expiration of the time for filing claims, make proof of the facts alleged in his statement before the trustee. No proof can be made after that time, unless the claimant has appeared within that time and obtained and had entered in the records an order of continuance by the trustee.

§ 9-1105 Financial statement of trustee; disposition of funds

A. Within sixty days after the first publication provided for by this article, the trustee shall make a full and true statement in writing of all monies expended by the trustee, and the trustee's reasonable charges for time and services in the administration of the trust to that time that shall be and remain a first charge on the lands in favor of the trustee.

B. The money collected shall be applied first to reimburse the parties who advanced the money to enter the townsite with interest at ten percent a year, and then to the discharge of other outstanding claims incurred in entering the townsite or executing the trust. Any surplus shall be paid to the governing body of the city or town, if incorporated, for making public improvements, or, if unincorporated, for making such public improvements as may be directed by a meeting of the citizens of the town to be held after thirty days notice by the trustee.

§ 9-1106 Index of claimants and property

The trustee shall keep an index of the name of every person filing a claim or contest in which the name shall be entered at the time of filing the statement or contest. When the statement is recorded, the trustee shall add to the index the number of the page of the record. The trustee shall keep a like index with a description of all property disposed of by the trustee.

§ 9-1107 Limitations on claims of land

A. The number of lots which one claimant may enter shall not exceed in the aggregate fourteen thousand square feet, and such additional lots not exceeding seven thousand square feet to the lot, upon which the claimant shall have substantial improvements of a value of not less than one hundred dollars.

B. When a claimant makes application to enter more than four lots, he shall specially designate the lots in the statement, particularly describe the nature and value of the improvements on each of the additional lots, and shall at the time of making the proof prove to the satisfaction of the trustee, by one or more reliable witnesses, the facts entitling him to enter the additional lots.

§ 9-1108 Proof of nonconflicting claims; execution of deed

After the expiration of the period for filing statements, the trustees shall hear the proofs on nonconflicting claims, as near as possible in the order in which filed, of such claimants as appear and offer to make proof. If the proof complies with the legal requirements, the trustee shall make and enter a decision to that effect, and execute a good and sufficient deed to the lots to the claimant upon payment of a fee of five dollars.

§ 9-1109 Referral to court of conflicting claims; trial; appeal

A. When conflicting claims have been filed, the trustee shall transmit the statement of the claimant and the adverse claim, and all papers pertaining thereto, to the clerk of the superior court of the county in which the property is located, and give notice thereof to the respective claimants. The papers shall be filed by the clerk and docketed in the name of the claimant as plaintiff and the conflicting claimant as defendant, and the court shall thereupon direct pleadings to be framed setting forth the respective claims of the parties. The matter shall thereupon be tried before the court without a jury and notice of the judgment shall be given to each of the parties.

B. An appeal may be taken within twenty days after notice of the judgment. If an appeal is not taken the trustee shall execute a deed in accordance with the judgment.

§ 9-1110 Payment of purchase price by claimants

Each claimant or contestant shall, with his statement or contest, pay the trustee the sum of ten dollars for each lot claimed, not exceeding seven thousand square feet per lot, as the purchase price therefor. Such money shall be refunded to the claimant by the trustee if it is finally determined that the party is not entitled to a deed, after first deducting costs or fees that may be due from such party.

§ 9-1111 Trustee as claimant

If the trustee is possessed or entitled to any part of the lands, the trustee shall make a verified statement of the trustee's claim and record it, and if no adverse claim thereto is filed within the time allowed, the trustee shall be deemed to be possessed and seized of the title thereto in fee simple, but subject to all assessments and taxes thereafter to be levied. If the trustee's claim is in conflict, the conflicting claims shall be transferred to the court and determined as other conflicting claims.

§ 9-1112 Selection and conveyance of sites for public purposes

A. After the plat of the townsite has been recorded and on petition of at least ten resident house-holders of the city or town, the trustee, by and with the advice of the board of school trustees of the district, shall set apart a site for a district school house, and the trustee shall deed the lots embraced in the site to the board of school trustees. If the city or town is a county seat, the trustee, on a like petition, may set apart and deed to the county a site for a courthouse and other county buildings. On petition signed by a majority of the property holders of the city or town designating the site, the trustee may set apart a public square or park.

B. Such locations shall not include any lot held by a bona fide claimant nor interfere with vested rights.

§ 9-1113 Execution of deed to cemetery association

The trustee may deed to a cemetery association, organized as provided by law for the incorporation of nonprofit corporations, an amount of land, not exceeding two blocks, as may be necessary for the purposes of the association. The deed shall be executed upon petition of the officers of the cemetery association. The petition shall describe the land, and be accompanied by proof satisfactory to the trustee that it has been and is being used for cemetery purposes, that no discrimination is practiced in granting permits for burial therein and that there is no conflicting claim to the land.

§ 9-1114 Rights of lienholders

No lien against the interests of a claimant shall be affected by the deed of the trustee to the claimant. The holder of a lien or certificate of sale, upon proof by affidavit of such fact, may file a statement in behalf of the claimant or contest claims in conflict with the rights of the claimant, or may intervene and support the rights of the party against whom he holds the liens, the same as such party might do himself. The money thus necessarily expended shall become a part of his claim against his debtor and a part of his lien.

§ 9-1115 Claims against trustee or municipality

Within the time provided for filing statements of claims, every person having a claim against the trustee or the city or town for money advanced or services rendered in obtaining a patent, or the execution of the trust thereunder, shall file an itemized statement thereof with the trustee, verified by affidavit, that the claim is correct, that no payments have been made thereon which are not credited and that there are no setoffs thereto. Claims not filed within the time shall be disallowed, and right of action thereon barred.

§ 9-1116 Obtaining funds to pay expenses

A. If the money paid to the trustee for the purchase of lots is insufficient to pay expenses, the trustee shall sell at public auction so many of the remaining lots, the title to which remains in the trustee and against which no claim or contest is pending, as is necessary to raise the amount required. The trustee shall first give such notice of the sale as the sheriff gives on the sale of real property on execution. The lots shall be sold separately, no lot shall be sold for less than $10, and the lots shall not exceed seven thousand square feet.

B. If sufficient money is not raised, the trustee shall make an assessment and levy a tax on all the lots the title to which does not remain in the trustee, according to the value of the lots and the improvements on the lots, and the assessment and tax shall be a lien on the lots so assessed until paid, and may be recovered by the trustee in a civil action.

§ 9-1117 Disposal of unclaimed lots

A. The grounds undisposed of within the townsite, the title of which remains in the trustee, may be sold at public auction when the trustee deems it advisable. The trustee shall appoint three persons to appraise the lots the trustee desires to sell, and they shall take oath to faithfully and impartially appraise the value of the lots.

B. On making the appraisement, the trustee shall give notice of the sale by publication. At the time and place specified in the notice, the trustee shall offer the lots for sale separately to the highest bidder, but for not less than the appraised value of the lots.

C. Any person who has actually settled and made improvements to the value of not less than $100 on any lot, may make application to purchase the lot any time before sale, and accompany the person's application with the amount of the appraised value and $5 for each lot as compensation for making the deed, which shall be returned by the trustee, if it is finally determined that the party is not entitled to a deed, after first deducting any costs or fees that may be due from the party.

D. The trustee shall hear proof as to the right of preference before executing the trustee's deed. If the application is denied, the applicant may bring an action in the superior court against the trustee and any adverse claimant to determine the applicant's right to a deed under the application, and the lot shall not be sold until the action is determined.

E. The trustee shall execute a deed to the purchaser on payment of the purchase price, and $5 for each lot sold, to be retained by the trustee as the trustee's compensation. The fees for the trustee for applications for preferred right shall be $.20 per folio for filing and recording. Contests between applicants shall be transferred to the superior court for determination.

F. The proceeds of the sales shall be applied to the payment of the costs and expenses of sale and appraisal, and any surplus shall be paid as directed in this article in the case of other surplus funds in the hands of the trustee.

§ 9-1118 Accounting by trustee to successor

On termination of the trustee's term of office, the trustee shall deliver to the trustee's successor in office all books and papers of the trustee's office, together with all money in the trustee's possession as trustee, and shall accompany them with an itemized written statement of all money received and paid out by the trustee under the trust. Thereafter the trust shall be discharged by the trustee's successor in office.

Article 2 Sale of Lands Acquired Prior to Statehood

§ 9-1131 Disposal of unclaimed lots acquired prior to statehood

A. Every trustee of lands acquired before February 14, 1912, under the act of Congress entitled "an act for the relief of inhabitants of cities and towns upon the public lands," approved March 2, 1867, or the trustee's successor in office, may sell at public auction to the highest bidder for cash, any parcel of such lands undisposed of within the townsite, the title to which remains in the trustee or the trustee's successor in office, when the trustee deems it advisable to sell. The trustee shall appoint three disinterested persons to appraise the parcels the trustee desires to sell, and they shall faithfully and impartially appraise the value of the parcels and shall certify their appraisal under oath to the trustee.

B. On making the appraisement, the trustee shall give notice of the sale by publication for not less than once each week for two successive weeks in a newspaper of general circulation within the city or town, or if there is none, then in the newspaper of general circulation published nearest the land to be sold. The notice shall describe the parcels of land to be sold and the time, place and condition of sale. At the time and place specified in the notice, the trustee shall offer the parcels of land for sale separately to the highest bidder, but for not less than the appraised value of the parcels of land. The trustee shall execute a deed to the highest bidder on payment of the purchase price.

§ 9-1132 Procedure to establish right of preference

A. Notwithstanding any other provision of law, a person who, together with the person's predecessors in interest, for a period of five years immediately preceding the application provided for in this article, has been in actual or constructive possession of and paid taxes on a parcel of land included within a townsite entered before February 14, 1912, may purchase the title or claim to the parcel of land that the trustee could, at the time of the application assert or convey under any other provision of law by making an application for the parcel of land to the trustee.

B. The application shall contain a detailed statement under oath as to possession of the parcel and payment of taxes on the parcel and shall be accompanied by a filing fee of $1 for the application and an additional $5 as the purchase price for each parcel of land described by the application, which shall be returned in event of final determination that the applicant is not entitled to a deed. All contiguous lots or portions of lots included in a single application shall be deemed to be one parcel of land.

C. On filing the application, the trustee shall conduct a hearing on the application and shall give notice thereof by publication in the same manner as provided in section 9-1131, and on the hearing the trustee shall take evidence on the applicant's right of preference. If the trustee finds the applicant and the applicant's predecessors in interest have held possession of the land for five years immediately before filing the application and have paid taxes on the land for a period of five years immediately before filing the application, the trustee shall execute and deliver the trustee's deed to the applicant, conveying the parcel or parcels described in the application, on the applicant paying to the trustee the applicant's proportionate share of the cost of advertising as determined by the trustee.

D. If the application is denied or if conflicting applications are filed with the trustee on or before the date of the hearing, the trustee shall proceed no further and the applicant, within ten days after denial or the date set for the hearing, may bring an action in the superior court against the trustee and any other applicant to determine the applicant's right to a deed. No parcel of land embraced in such action shall be sold until the action is determined.

§ 9-1133 Disposition of proceeds from sale

The proceeds of sales made as provided in this article shall be applied first to the payment of costs and expenses of sale. Any surplus shall be paid to the governing body of the city or town, if incorporated, to be placed in the general fund, or, if unincorporated, for making such public improvements as may be directed by a meeting of the citizens of the town to be held after thirty days notice by the trustee.

Article 3 Subdivision of Private Lands in Townsite

§ 9-1141 Procedure for subdivision of private lands into townsite

A. An owner of a tract of land desiring to plat or subdivide it into tracts of twenty acres or less for the purpose of townsites, shall first have it surveyed and platted, showing lots, blocks or subdivisions, size of each lot, name and width of each street and width of alleys, and shall dedicate the streets, public grounds and alleys to the public use, sign the dedication and acknowledge it as a conveyance of real property, and file the plat in the office of the county recorder for record.

B. No property shall be described in a conveyance or other instrument by reference to any plat of a townsite, addition or subdivision, or any lot, block or parcel contained therein, unless the plat has been executed, acknowledged and recorded, as provided in this article.

Chapter 11 Protected Development Rights

Article 1 General Provisions

§ 9-1201 Definitions

In this chapter, unless the context otherwise requires:

"Landowner" means any owner of a legal or equitable interest in real property, including the heirs, devisees, successors, assigns and personal representative of the owner, or a representative authorized by a landowner to submit to a city or town a development application for a property for approval.
"Property" means all real property subject to zoning regulations and restrictions by a city or town.
"Protected development right" means the right to undertake and complete the development and use of property under the terms and conditions of a protected development right plan and this article, without compliance with subsequent changes in zoning regulations and development standards, except as provided by section 9-1204.
"Protected development right plan" means a plan submitted by a landowner to a city or town, that, if approved by the legislative body of the city or town and if identified as a protected development right plan at the time it is submitted, grants the landowner, for a specified period of time, a protected development right to undertake and complete the development as shown on the plan. The protected development right plan shall be submitted to a city or town for site development approval. A protected development right plan for a phased development shall be in the form of a plan for a master planned development which may include a planned unit development, planned community development or district, planned residential development or district or planned area development or district if such land use category or district is recognized and provided for in the zoning ordinance of the city or town. A protected development right plan for a nonphased development must provide the final site development approval needed for issuance of a building permit.

§ 9-1202 Protected development right; establishment; plan requirements; variance

A. A city or town may provide by ordinance or resolution the requirements for a development to be a phased development. If a city or town does not adopt an ordinance or resolution that includes the requirements for a development to be a phased development, a plan submitted as a protected development right plan may be identified as a plan for a phased development at the time the plan is submitted.

B. A protected development right plan, at a minimum, shall describe with a reasonable degree of certainty all of the following:

The proposed uses of the site.
The boundaries of the site.
Significant topographical and other natural features affecting development of the site.
For other than a phased development, the general location on the site of the proposed buildings, structures and other improvements.
The number of dwelling units and, for other than a phased development, the square footage and height of the proposed buildings and other structures.
The location of all existing and proposed utilities and a provision for other infrastructure on the site, including water, sewers, roads and pedestrian walkways.

C. Nothing in this section is intended to or shall preclude a city or town from establishing additional requirements for submittal or approval of development plans for any land use category or district and such requirements may include traffic reports or studies, drainage reports or studies, master street plans, development phasing schedules and phased public infrastructure schedules. A city or town shall require submission of a more detailed plan for each phase of a phased development in order to obtain final site development approval to develop the property.

D. A final subdivision plat that meets the requirements of subsection B, and section 9-463.01 shall be a protected development right plan.

E. A protected development right is established only for the specific elements of the development or other specific matters shown on the approved protected development right plan. A protected development right is not established for any elements or other matters, or portions of any elements of the development or other matters not shown on the approved protected development right plan.

F. The legislative body of a city or town may designate by ordinance or resolution a development plan that is not identified as a protected development right plan at the time it is submitted as a protected development right plan upon a finding by such legislative body that granting a protected development right to undertake and complete the development shown on the plan will promote reasonable certainty, stability and fairness in the land use planning and regulatory process and secure the reasonable investment backed expectations of the landowner.

G. A protected development right shall be deemed established with respect to a property on the effective date of a valid approval of a protected development right plan. The protected development right confers on the landowner the right to undertake and complete the development and use of the property under the terms and conditions of the protected development right plan and this article.

H. A city or town shall not require a landowner to waive a protected development right as a condition of development approval.

I. A protected development right is subject to the terms and conditions imposed by the city or town on the protected development right plan approval and nothing in this section is intended to or shall preclude a city or town from establishing such terms and conditions.

J. A protected development right plan approved with a condition or stipulation that a variance be obtained does not confer a protected development right until the necessary variance is obtained. Approval of a protected development right plan does not guarantee approval of a variance.

§ 9-1203 Duration of a protected development right; termination

A. A protected development right established under a protected development right plan is valid for three years for a nonphased development or five years for a phased development.

B. A city or town may extend for a maximum of two additional years the duration of a protected development right obtained through approval of a protected development right plan, if a longer time period is warranted by all relevant circumstances, including the size, type and phasing of the development on the property, the level of investment of the landowner, economic cycles and market conditions. The decision to extend the time period for a protected development right is in the discretion of the city or town. However, a protected development right shall not remain established for more than five years for a nonphased development or seven years for a phased development.

C. After the approval of a protected development right plan, the plan may be subject to subsequent reviews and approvals by the city or town to ensure compliance with the terms and conditions of the original approval if these reviews and approvals are not inconsistent with the original approval. The city or town may revoke its approval of the protected development right plan for failure to comply with applicable terms and conditions imposed on the approval.

D. A protected development right terminates at the end of the applicable period established under this section. If a building permit has been issued before the date of termination of a protected development right, the protected development right remains valid until the building permit expires, but in no event for longer than one year. On expiration, only principal structures for which footings or foundations have been completed may be finished under the protected development right. On the expiration of a protected development right, development may continue based on a valid building permit and according to standards in effect at that time. An unexpired building permit issued for a property with a protected development right neither expires nor shall be revoked merely because a protected development right expires under the time limitations specified in this section.

§ 9-1204 Subsequent changes prohibited; exceptions

A. A protected development right established under this section precludes the enforcement against the property to which the protected development right applies of any legislative or administrative land use regulation by a city or town or pursuant to an initiated measure that would change, alter, impair, prevent, diminish, delay or otherwise impact the development or use of the property as set forth in an approved protected development right plan, except under any one or more of the following circumstances:

With the written consent of the affected landowner.
On findings, by ordinance or resolution, and after notice and a public hearing, that natural or man-made hazards on or in the immediate vicinity of the property, if uncorrected, would pose a serious threat to the public health, safety and welfare if the project were to proceed as approved in the protected development right plan.
On findings, by ordinance or resolution, and after notice and a hearing, that the landowner or his representative intentionally supplied inaccurate information or made material misrepresentations that made a difference in the approval of the protected development right plan by the city or town.
On the enactment of a state or federal law or regulation that precludes development as approved in the protected development right plan, in which case the governing body of the city or town, after notice and a hearing, may modify the affected provisions, on a finding that the change in state or federal law has a fundamental effect on the protected development right plan.

B. A protected development right does not preclude the enforcement of a subsequently adopted overlay zoning classification that imposes additional requirements and that does not affect the allowable type or density of use, or ordinances or regulations that are general in nature and that are applicable to all property subject to land use regulation by the city or town, such as building, fire, plumbing, electrical and mechanical codes.

C. Notwithstanding any other provision of this article, the establishment of a protected development right does not preclude, change or impair the authority of a city or town to adopt and enforce zoning ordinance provisions governing nonconforming property or uses.

D. This article does not alter or diminish the authority of a city or town to exercise its eminent domain powers.

§ 9-1205 Protected development right; exercise; agreements

A. A protected development right obtained under this chapter is not a personal right but attaches to and runs with the applicable property. After approval of a protected development right plan, all successors to the original landowner are entitled to exercise the protected development rights.

B. Nothing in this article precludes judicial determination, based on common law principles or statutory provisions, that a vested right exists in a particular case or that a compensable taking has occurred. Except as expressly provided in this chapter, nothing in this chapter shall be construed to alter the existing common law of vested rights.

C. Nothing in this article shall preclude, change or limit the ability of a city or town to enter into a development agreement under section 9-500.05.

Chapter 12 Residential Rental Inspection Programs

Article 1 General Provisions

§ 9-1301 Definitions

In this chapter, unless the context otherwise requires:

"Building code" means the construction codes that were in force at time of building construction, including plumbing and mechanical codes, electric codes, residential construction codes, energy conservation codes and existing building construction codes, and includes any property maintenance codes, neighborhood preservation codes, anti-blight codes or other similar codes, however denominated. With respect to mobile homes as defined in section 33-1409, building code means the federal construction codes applicable to homes constructed after June 15, 1976, and the Arizona codes applicable to homes constructed before that date.
"Citywide residential rental property inspection program" means any program that includes systematic or periodic inspections of a majority of rental properties in the city that have not previously been found to meet the requirements of section 9-1302.
"Exterior inspection" means the visual inspection of any portion of a residential dwelling unit that can be seen from a public street or other right-of-way, or that can be seen from an adjacent property if a complaint or consent is received from the adjacent property owner, lawful resident or lawful tenant.
"Initial inspection" means the first inspection of a residential rental dwelling unit after the establishment by ordinance or resolution of a residential rental inspection program.
"Interior inspection" means a physical or visual inspection of the interior of a residential rental dwelling unit and other portions of a residential rental dwelling unit that are not visible from a public street, right-of-way or neighboring property that is made for the purpose of looking for building code violations.
"Mobile home park" has the same meaning as prescribed in section 33-1409.
"Multifamily housing" means site built buildings containing residential dwelling units, but does not include mobile home parks.
"Owner" means the person, corporation, limited liability company, partnership, limited partnership, trust or real estate investment trust shown on the lawfully recorded title to the property.
"Residential dwelling unit" means a building or structure or part of a building or structure that is used for a home or residence by one or more persons who maintain a household. It also means a mobile home regardless of ownership of the land.
"Residential rental dwelling unit" means a dwelling unit that is leased or rented to one or more tenants. A dwelling unit that is occupied in part by the owner of the dwelling unit is not a residential rental dwelling unit unless a tenant occupies a part of the dwelling unit that has its own cooking and sleeping areas, a bathroom and a separate entrance, unless otherwise provided in a zoning ordinance of the city or town. Residential rental dwelling unit does not include an owner occupied mobile home in a mobile home park that is not owned by the landlord of the mobile home park.
"Residential rental licensing requirement" means a requirement established by a city or town that property owners or property managers obtain a license or permit from the city or town, with or without an associated fee, before they can legally engage in the rental of dwelling units in the city or town.
"Residential rental registration requirement" means any requirement established by a city or town for rental housing owners or managers to submit information to the city or town as already required to be submitted to the county assessor under section 33-1902.

§ 9-1302 Individual property inspections

A. For individual residential rental properties the city or town may conduct interior inspections if an exterior inspection of the property reveals or if the property is found to have any of the following:

Conditions that materially affect the health and safety of the occupants as prescribed by section 9-1303.
A significant level of crime associated with the property.
A documented history of building code violations.
The owner repeatedly fails to comply with building code enforcement requirements imposed by the city or town.
There is probable cause that the residential rental property is not in compliance with the city's building code.
A complaint is received from or consent for inspection is given by the owner of record, agent or property manager, a lawful resident or a lawful tenant of the residential rental unit.

B. If the city or town determines pursuant to subsection A of this section that an interior inspection is reasonably necessary and the property's tenant has vacated, the city or town may require an additional inspection and approval by the city or town before a new occupancy is permitted.

C. Before entry the city or town shall receive consent of the owner of record or a lawful tenant or on issuance of a warrant.

D. This section does not limit the authority of a city or town to:

Perform an exterior inspection of any property in the city or town's jurisdiction at any time.
On receipt of a complaint or consent from the owner or lawful tenant, perform an interior inspection of any property in the city or town's jurisdiction.
Perform interior, exterior or construction job site inspections of new construction before issuance of a certificate of occupancy.
Perform interior or exterior inspections of illegal construction that occurred without a required building permit.
Perform an interior inspection of any property during an emergency or natural disaster.

E. A city or town may designate any of its departments to perform all or part of the duties granted to the city or town pursuant to this chapter.

§ 9-1303 Material affect on health and safety of occupants

For the purposes of this chapter, a condition that materially affects the health and safety of the occupants of a residential rental dwelling unit includes any of the following conditions:

Inadequate sanitation, ventilation or space requirements, including the following:

(a) Lack of or inadequate water closets, lavatories, bathtubs or showers.

(b) Lack of a required kitchen sink or a kitchen sink that does not comply with the building code of the city or town in which the property is located.

(d) Lack of adequate heating and cooling.

(e) Lack of or improper operation of required ventilating equipment or broken or missing windows or doors that create a hazardous condition or a potential attraction to trespassers.

(f) Lack of minimum amounts of natural light and ventilation as required by the building code.

(g) Inadequate room and space dimensions as required by the building code.

(h) Lack of required adequate electricity and lighting as required by the building code.

(i) Infestation of insects, vermin or rodents.

(j) Lack of connection to a sewage disposal system as required by the building code.

(k) Lack of adequate garbage and rubbish storage and removal facilities.

Structural hazards, including the following:

(a) Significantly deteriorated or inadequate foundations or foundation areas that are not provided with adequate drainage.

(b) Flooring or floor supports of insufficient size to carry imposed loads with safety.

(c) Members of walls, partitions or other vertical supports that split, lean, list or buckle due to defective material or deterioration.

(d) Members of ceilings, roofs, ceiling and roof supports or other horizontal members that significantly sag, split or buckle due to defective material or deterioration.

(e) Fireplaces or chimneys that list, bulge or settle due to defective material or deterioration or that are of insufficient size or strength to carry imposed loads with safety.

Hazardous wiring that does not conform with the building code or that has not been maintained in good condition, or both, and that is not being used in a safe manner.
Hazardous plumbing that does not conform with the building code or that has not been maintained in good condition, or both, and that is not free of cross-connections and siphonage between fixtures.
Hazardous mechanical equipment including vents that do not conform with the building code or that have not been maintained in good and safe condition and that are not working properly.
Faulty weather protection that may include:

(a) Significantly deteriorated, crumbling or loose plaster.

(b) Deteriorated or ineffective waterproofing of exterior walls, roof, foundations or floors, including broken windows or doors.

(c) Defective or lack of weather protection for exterior wall coverings, including lack of paint, or weathering due to lack of paint or other approved protective covering.

(d) Broken, rotted, split or buckled exterior wall coverings or roof coverings.

Fire hazards or inadequate fire protection, including:

(a) Any building or portion of a building or any device, apparatus, equipment, combustible waste or vegetation that is not in compliance with the building code and that is in such a condition as to cause a fire or explosion or to provide a ready fuel to augment the spread and intensity of a fire or explosion arising from any cause.

(b) Any building or portion of a building that is not provided with fire-resistive construction or fire extinguishing systems or equipment required by the building code, except those buildings or portions of buildings that conformed with all applicable building code laws and that have fire-resistive integrity and fire extinguishing systems or equipment that has been adequately maintained and improved in relation to any increase in occupant load, alteration or addition, or any change in occupancy.

Faulty materials or construction that is not specifically allowed or approved by the building code or that has not been adequately maintained in good and safe condition.
Hazardous or unsanitary premises, including those premises on which an accumulation of weeds, vegetation, refuse, dead organic matter, debris, garbage, offal, rat harborages, stagnant water, combustible materials and similar materials or conditions constitute fire, health or safety hazards.
Inadequate maintenance, including any building or portion of a building that is determined to be an unsafe building in accordance with the building code.
Unhealthy conditions, including any condition as defined in the building code that results in the failure to maintain minimum standards of sanitation, health or safety or that renders air, food or drink unwholesome or detrimental to health.
Inadequate exits, including all buildings or portions of a building that are not provided with adequate exit facilities as required by the building code and that have been adequately maintained and increased in relation to any increase in occupant load, alteration or addition, or any change in occupancy.
Improper occupancy, including all buildings or portions of a building that are occupied for living, sleeping, cooking or dining purposes and that were not designed and permitted to be used for such occupancies, or that are occupied in excess of the maximum occupancy load allowed by any applicable provision of the building code or state law.

§ 9-1304 Citywide residential rental property inspection program requirements; residential rental licensing or registration prohibition

A. A city or town may adopt a citywide residential rental property inspection program only if the following occurs:

The city or town conducts a public hearing and adopts the rental property inspection program ordinance or resolution at a regularly held city or town council meeting that occurs at least thirty days after the public hearing.
The ordinance or resolution is adopted by at least a three-fourths vote of the entire council.
The city or town notifies all owners of residential rental properties who are then currently registered with the county assessor of the county in which the property is located.
The notice to owners is mailed by first class mail at least twenty days before the required public hearing.
A notice of the public hearing is published in a local newspaper of general circulation and posted on any official municipal website not less than two weeks before the required public hearing.

B. A city or town shall not adopt a residential rental licensing requirement for residential rental properties or property owners.

C. A city or town shall not adopt a residential rental registration requirement. A city or town shall obtain rental registration information only from the county assessor's office for the county in which the residential rental property is located.

§ 9-1305 Inspection fees; penalties

A. A city or town shall not charge a fee for nonpermit related initial exterior inspections, initial interior inspections that are requested by an owner of record or a lawful tenant, for initial interior inspections pursuant to issuance of a warrant, initial annual inspection pursuant to a residential rental inspection program or for an initial follow-up inspection where all building code violations identified to the property owner with a written notice or citation have been corrected.

B. A city or town may charge a reasonable fee:

For each subsequent follow-up interior or exterior inspection to ensure compliance with a citation or notice issued for violations of the building code that materially affect the health and safety of residents.
If an owner fails to correct a violation for which a notice or citation has been issued and the owner has been given adequate time to correct the violation. For the purposes of this paragraph, adequate time shall be no less than fifteen calendar days. For the purpose of this section, a reasonable fee may include the costs incurred by the city or town for all related inspections prior to the failure of the owner to correct identified violations.

C. Notwithstanding subsection B, a violation of the building code that immediately threatens the health and safety of occupants shall be cited and repaired immediately.

Chapter 13 Video Service

Article 1 General Provisions

§ 9-1401 Definitions

In this chapter, unless the context otherwise requires:

"Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a video service provider.
"Agreement" means any agreement or contract.
"Boundaries of a local government" or "boundaries" means all of the area within the corporate limits of the city or town.
"Cable operator" has the same meaning prescribed in 47 United States Code section 522.
"Cable service" has the same meaning prescribed in 47 United States Code section 522.
"Cable system" has the same meaning prescribed in 47 United States Code section 522.
"Commercial mobile service provider" means a person that provides commercial mobile service as defined in 47 United States Code section 332(d) or commercial mobile radio service as described in 47 Code of Federal Regulations section 20.3.
"Day" means a calendar day, except a Saturday or Sunday or a holiday prescribed in section 1-301.
"Gross revenue":

(a) Means all cash, credits, property of any kind or nature or other consideration that is received directly or indirectly by a video service provider, its affiliates, or any person, firm or corporation in which the video service provider has a financial interest or that has a financial interest in the video service provider and that is derived from the video service provider's operation of its video service network to provide video service in the service area.

(b) Includes all revenue from charges for video service to subscribers and all charges for installation, removal, connection or reinstatement of equipment necessary for a subscriber to receive video service and any other receipts from subscribers derived from the video service provider's operation of the video service network to provide video service, including receipts from forfeited deposits, sale or rental of equipment to provide video service, late charges, interest and sale of program guides.

(i) Any revenue not received, even if billed, such as bad debt net of any recoveries of bad debt or any refunds, credits, allowances or discounts to subscribers to the extent that the refund, rebate, credit, allowance or discount is attributed to video service.

(ii) Revenue from commercial advertising on the video service network, the use or lease of studio facilities of the video service network, internet access service, the use or lease of its facilities located in the highways, the use or lease of leased access channels or bandwidth, the use or lease of towers, the production of video programming by the video service provider, the sale, exchange, use or cablecast of any programming by the video service provider in the service area, sales to the video service provider's subscribers by programmers of home shopping services, reimbursements paid by programmers for launch fees or marketing expenses, license fees, taxes or other fees or charges that the video service provider collects and pays to any governmental authority, any increase in the value of any stock, security or asset, or any dividends or other distributions made from any stock or securities.

"Highway" means all roads, streets and alleys and other dedicated public rights-of-way that are operated and maintained by a local government.
"Holder" means a video service provider that has been issued a uniform video service license pursuant to this chapter.
"Holdover cable operator" means an incumbent cable operator that elects under sections 9-1412 and 9-1413 to continue to operate within its service area pursuant to its local license.
"Incumbent cable operator" means a cable operator or other video service provider that on December 31, 2019 is providing video service in this state pursuant to a local license.
"Information service" has the same meaning prescribed in 47 United States Code section 153.
"Interactive computer service" has the same meaning prescribed in 47 United States Code section 230(f).
"License" means a franchise as defined in 47 United States Code section 522.
"License fee" means a license fee imposed by a local government on a video service provider for using the highways to provide and for the privilege of providing video service.
"Local government" means any city, including a charter city, or town.
"Local law" means any charter, code, ordinance, resolution, regulation or other law of a local government.
"Local license" means any license, agreement, permit or similar authorization that meets all of the following:

(a) Allows a person to construct or operate a video service network within the boundaries of a local government.

(b) Is issued, granted, approved, extended or renewed by the local government before January 1, 2020 pursuant to the authority of any federal, state or local law in effect at the time of the issuance, grant, approval, extension or renewal.

(c) Is effective under federal, state or local law on December 31, 2019 for the person to continue to construct or operate a video service network within the boundaries of a local government.

"Multichannel video programming distributor" has the same meaning prescribed in 47 United States Code section 522.
"Service area" means that part of the boundaries of a local government within which a video service provider is authorized to provide video service pursuant to a uniform video service license or a local license.
"Subscriber":

(a) Means any person in this state that purchases video service.

(b) Does not include any person that purchases video service for resale and that, on resale, is required to pay a license fee pursuant to this chapter or the terms of a local license.

"Telecommunications":

(a) Means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information sent and received, regardless of the facilities, equipment or technology used.

(b) Does not include commercial mobile radio service, pay phone service, interstate service or cable service.

"Telecommunications provider" means a person that is required to obtain from the corporation commission a certificate of public convenience and necessity to provide telecommunications service.
"Telecommunications service" means the offering of telecommunications for a fee directly to the public, or to such users as to be effectively available directly to the public, regardless of the equipment, facilities or technology used.
"Uniform video service license" means a license that is issued by a local government in the form of a uniform video service license agreement as adopted pursuant to section 9-1411.
"Video service":

(a) Means the provision by a video service provider of multichannel video programming generally considered comparable to video programming delivered by a television broadcast station, video service or other digital television service, whether provided as part of a tier, on demand or on a per-channel basis, without regard to the technology used to deliver the video service, including internet protocol technology or any successor technology.

(b) Includes cable service.

(i) Video programming accessed through a service that enables users to access content, information, email, messaging or other services that are offered via the internet, including streaming content.

(ii) Direct-to-home satellite services as defined in 47 United States Code section 303(v).

(iii) Wireless multichannel video programming that is provided by a commercial mobile service provider.

"Video service network":

(a) Means a wireline network, or any component of a wireline network, that is located in this state, constructed in whole or in part in, on, under or over any highway and used to provide video service.

(b) Includes a cable system.

"Video service provider":

(a) Means any person that provides or offers to provide video service over a video service network to subscribers in this state.

(b) Includes an incumbent cable operator that elected pursuant to sections 9-1412 and 9-1413 to terminate its local license and a multichannel video programming distributor.

(i) A holdover cable operator.

(ii) A provider of video programming accessed through a service that enables users to access content, information, email, messaging or other services that are offered via the internet, including streaming content.

(iii) A provider of direct-to-home satellite services as defined in 47 United States Code section 303(v).

§ 9-1402 State preemption; uniform regulation and licensing

A. The licensing of video service providers and the regulation and use of video service are matters of statewide concern. Except as provided in this chapter, the licensing of video service providers and the regulation and use of video service are not subject to further regulation by a local government. The regulation of video service pursuant to this chapter, including application to the local licenses of incumbent cable operators, is reasonable and necessary to promote all of the following:

Provision of competitive video, telecommunications and information service throughout this state.
More uniform regulation of competitive video service throughout this state.
Streamlined licensing by local governments and more uniform terms and conditions for video service providers that use highways to provide video and other services over video service networks.
Continued management by local governments of use of their highways with reasonable burdens on construction and maintenance across boundaries between local governments for video service providers to use highways to provide video and other services over video service networks.
Continued levying of license fees by local governments on subscriber service revenues derived from operating video service networks to provide video service.
Support for federal subscriber service standards.

B. To the fullest extent allowed by federal law, this chapter occupies the entire field of licensing and regulation of video service.

C. Except as otherwise provided in this chapter, from and after December 31, 2019 this chapter preempts and limits the ability of a local government to regulate or enforce all of the following:

The application of chapter 5, article 1.1 of this title to video service providers.
Any local law and any agreement with a local government that does any of the following:

(a) Requires a person other than a holdover cable operator to obtain or hold from a local government any license, permit or similar authorization that is a prerequisite to providing video service or to constructing, maintaining or using the highways to operate a video service network in the highways within its boundaries.

(b) Regulates the provision of video service or the construction or operation of a video service network if the local law does not conform to this chapter.

(c) Imposes on a video service provider any requirement that is related to infrastructure, facilities or deployment of equipment that does not conform to this chapter, including office location, institutional network, build-out, line extension, investment or other operational requirements that are not directly related to the local government's management of the highways.

(d) Requires a video service provider to obtain a license or other authorization from the local government to provide telecommunications service, information service, interactive computer service or other service if the video service provider uses its video service network within the boundaries of the local government to provide the service.

(e) Requires a video service provider to pay to locate in ducts or conduits or on poles owned by the local government if the local government requires installation in the ducts or conduits or on the poles.

§ 9-1403 Limited application

This chapter does not:

Prevent a telecommunications provider from exercising any rights or authority that the telecommunications provider has as a public utility under federal or state law.
Affect any authority of a local government, an agricultural improvement district, any special taxing district or any other person that controls utility poles on the highways to deny, limit, restrict or determine the rates, terms and conditions for the use of or attachment by a video service provider to utility or other poles owned by the local government or other person. For the purposes of this paragraph, "authority of a local government" includes police powers.
Vest in the corporation commission any authority or jurisdiction over video service, video service providers or video service networks or over the rates, terms and conditions of pole attachments under 47 United States Code section 224.
Affect or preempt any generally applicable local laws, including a local government's police power, to manage the use and occupancy of the highways within the local government's boundaries or to exercise the local government's police powers if the local government applies the local laws and the exercise of police powers to all users of the highways in a nondiscriminatory manner.

Article 2 Local Licenses

§ 9-1411 Local governments; uniform video service license agreements; forms; provisions

A. From and after December 31, 2019, a local government has the exclusive authority to issue a uniform video service license to a person to provide video service and to construct and operate a video service network in any service area within its boundaries.

B. On or before July 1, 2019, each local government shall adopt a standard form of uniform video service license agreement for video service providers to be used by the local government and a standard form of application and affidavit as described in section 9-1414. A local government shall prescribe other forms only as necessary to implement this chapter.

C. The uniform video service license agreement adopted under subsection B of this section must include all of the following provisions in substantially the following form and may not include any other provisions:

The name of the video service provider, its type of entity and its jurisdiction of formation.
The address and telephone number of the video service provider's principal place of business.
The name and address of the video service provider's principal executive officers or general partners and any persons authorized to represent the video service provider before the local government.
If the video service provider is not an incumbent cable operator, the date on which the provider expects to provide video service in the area identified under paragraph 5 of this subsection.
An exact description of the service area to be served, as identified by a geographic information system digital boundary that meets or exceeds national map accuracy standards.
A requirement that the video service provider pay the license fees required under this chapter and all other lawful fees and charges imposed by the local government.
A requirement that the video service provider file in a timely manner with the federal communications commission all forms required by that agency before offering video service in the service area, including the forms required by 47 Code of Federal Regulations section 76.1801.
A requirement that the video service provider agrees to comply with and be subject to all valid and enforceable federal and state laws.
A requirement that the video service provider agrees to comply with all generally applicable, nondiscriminatory local laws, including highway use, mapping, insurance, performance bonds, security fund, indemnification, letters of credit or similar requirements that apply to the use and occupation of any highway and that conform to this chapter.
A requirement that the video service provider comply with the public, education and government programming requirements of this chapter.
A requirement that the video service provider comply with all customer service rules of the federal communications commission under 47 Code of Federal Regulations section 76.309(c) applicable to cable operators.
A requirement that the video service provider comply with the consumer privacy requirements of 47 United States Code section 551 applicable to cable operators.
A grant of authority by the local government to provide video service in the service area as described under paragraph 5 of this subsection.
A grant of authority by the local government to use and occupy the highways in the delivery of the video service, subject to the laws of this state and the police powers of the local government.
The term of the uniform video service license.
A requirement that the parties to the agreement are subject to and must comply with this chapter.

D. Except as otherwise provided in this chapter, from and after December 31, 2019 a person may not act as a video service provider or construct or operate a video service network within the boundaries of a local government without first having been issued and continuing to hold a uniform video service license with a service area encompassing the boundaries.

E. A local license shall remain enforceable in accordance with its terms until terminated under section 9-1412, subsection B.

§ 9-1412 Incumbent cable operator; election on local license; procedure to obtain uniform video service license and terminate local license

A. From and after December 31, 2019, an incumbent cable operator may elect to do either of the following:

Continue to operate within a service area as defined in the local license pursuant to section 9-1413.
Terminate the incumbent cable operator's local license for a service area by applying for and obtaining a uniform video service license pursuant to this article.

B. On or before July 1, 2020, to elect to terminate a local license under subsection A of this section in the same manner as any other video service provider, an incumbent cable operator shall apply for a uniform video service license that includes only the service area that is defined in the local license. If an incumbent cable operator obtains a uniform video service license for the service area, both of the following apply:

The applicant's local license is terminated as to the service area by operation of law from and after the date the local government issues the uniform video service license.
The incumbent cable operator shall operate within the service area defined in the local license unless the incumbent cable operator elects under section 9-1414, subsection C to apply for a uniform video service license for a service area that consists of the boundaries of the local government.

§ 9-1413 Incumbent cable operator; procedure to continue operating under local license

A. If an incumbent cable operator does not timely elect to terminate a local license for a service area pursuant to section 9-1412, subsection B, the person shall continue to operate the cable system as a holdover cable operator within the service area defined in the local license and shall comply with the local license for as long as it remains in effect for the service area. The local license is not effective for the service area from and after the date the local license expires by its terms. The local government may not unilaterally renew or extend the term of the local license for the service area. The local government and the holdover cable operator shall comply with all of the following, which shall continue to apply to the local license:

Chapter 5, article 1.1 of this title.
Section 9-584.
Chapter 5, article 8 of this title.
Title 11, chapter 13, article 1.

B. To operate within a service area from and after the date the local license expires, the holdover cable operator must apply for and obtain a uniform video service license in the same manner as any other video service provider.

C. If a holdover cable operator is issued a uniform video service license with a service area that includes the service area defined under the local license while operating pursuant to the local license under subsection A of this section, the uniform video service license does not become effective until the local license expires.

D. A holdover cable operator that elects to apply for a uniform video service license shall do so at least one month before the local license expires.

§ 9-1414 Uniform video service license; application; fees

A. To obtain a uniform video service license, a person shall file with the clerk of the local government an application and affidavit that are signed by one of the principal executive officers or general partners of the applicant and that comply with this section.

B. The application and affidavit shall be in the form required by the local government and shall be required to contain all of and not more than the following:

Each service area in which the applicant intends to provide video service in the format as described in section 9-1411, subsection C. Except as provided in section 9-1412, subsection B, paragraph 2, under a uniform video service license the boundaries of the local government are a single service area and the service area consists of all of the territory within the boundaries of that local government.
The information prescribed by section 9-1411, subsection C, paragraphs 1 through 4. The holder shall notify the local government in writing of changes to this information within thirty days after the change occurs.
The term of the uniform video service license, which may not exceed ten years.
An agreement to pay all lawful fees and charges imposed by the local government.

C. An incumbent cable operator described in section 9-1412, subsection B, paragraph 2 may elect to apply for a uniform video service license for a service area that consists of the boundaries of a local government.

D. If the local government determines that the application and affidavit are incomplete or otherwise deficient for failure to comply with this section, the local government shall provide written notice to the applicant not later than fifteen days after the date of filing of the application and affidavit. The written notice shall do both of the following:

Explain the incompleteness or deficiency in detail.
Specify the information or other items that are necessary under this section for proper completion of the application and affidavit.

E. The local government may not do any of the following:

Charge a fee for filing or processing an application, affidavit, notice or other document under this article.
Except as provided in this article, vote on or take other official action regarding the application, affidavit, notice or other document.
Require the applicant to obtain the approval of the local government regarding the application, affidavit, notice or other document.
Require the applicant to enter into an agreement as described in section 9-1442, subsection I.

§ 9-1415 Authority granted by uniform video service license; conditions and limitations prohibited; providing video service

A. Within the time frame that the local government has in place pursuant to section 9-835, but not later than forty-five days after the date an applicant files a completed application and affidavit pursuant to section 9-1414, the local government shall issue a uniform video service license to the applicant in the form prescribed by section 9-1411. If the local government does not notify the applicant about the completeness of the uniform video service license agreement within the time period prescribed by section 9-1414, subsection D or issue the agreement within the time period required under this subsection, the agreement shall be considered complete and issued to the applicant in the form submitted.

B. The uniform video service license issued to an applicant, including an incumbent cable operator, by a local government is a nonexclusive license granting to the holder of the uniform video service license the authority for the term requested in the application to do all of the following:

Provide video service in all service areas designated in the application and affidavit filed with the local government.
Construct and operate a video service network in the highways in each service area in compliance with this chapter and all local laws that conform to this chapter and the purposes and objectives of this chapter.

C. A local government may not condition or limit a uniform video service license by imposing any obligation or requirement that is not authorized by this chapter, including any of the following:

Any office location, institutional network or other build-out, line extension, investment or other requirements relating to the overall scope, extent and timing of infrastructure, facilities or deployment of equipment.
Any requirements to pay to any person any application, document, license, service or other fee, tax, charge or assessment that is not authorized by this chapter.

D. A holder of a uniform video service license shall provide video service in accordance with the certifications made by the holder in each application and affidavit that the holder files with a local government pursuant to this article.

§ 9-1416 Amendment of uniform video service license to add service area

A. To add one or more new service areas to a uniform video service license, the holder shall file with the clerk of the local government an application for an amendment to the uniform video service license to add each new service area.

B. The application is subject to the same procedures, requirements, limitations and time periods as an application for issuance of a uniform video service license pursuant to sections 9-1414 and 9-1415.

§ 9-1417 Termination of service

A. To terminate the authority to provide video service to an existing service area authorized under the uniform video service license, the holder of the uniform video service license shall file with the clerk of the local government written notice of the termination.

B. The holder may terminate service on and after the date that the holder files the written notice with the clerk of the local government.

C. The holder shall:

Comply with applicable federal laws, including rules and regulations of the federal communications commission.
Give all affected subscribers and local governments notice at least ninety days before termination of service in all of a service area that consists of the boundaries of the local government.

§ 9-1418 Boundary change; license fees; exemption; notice

A. Each local government whose boundaries change shall notify in a timely manner each video service provider that operates in the boundaries. Notification shall be made by certified mail, email or personal delivery.

B. A video service provider may not be subject to or required to pay license fees on gross revenues as prescribed in section 9-1443 within the area encompassed by a boundary change for at least thirty days after the notification of a boundary change, required by subsection A of this section, is provided to the video service provider.

C. The notice required by subsection A of this section shall be provided to the contact person and address specified by the video service provider. The video service provider shall inform the local government of any change in the designated contact person or address by providing written notice to the governing body of the local government.

§ 9-1419 Transfer of uniform video service license

A. Except as otherwise provided in this section or otherwise required by federal law, including rules and regulations of the federal communications commission, a uniform video service license is fully transferable to any person whether the transfer arises through merger, sale, assignment, restructuring, change of control or other type of transaction. A transfer does not include an assignment of a uniform video service license for the purpose of securing indebtedness. A transfer may include less than all service areas associated with a uniform video service license.

B. The holder shall file with the clerk of the local government written notice of the transfer of the uniform video service license. On the filing of notice under this subsection the transferee becomes the holder.

§ 9-1420 Extension

A. To extend the term of a uniform video service license, the holder of the uniform video service license shall file with the clerk of the local government at least one month before the end of the term of the uniform video service license a notice to extend the term for a specified period not to exceed ten years.

B. Effective on the date the holder files the written notice with the clerk of the local government, the term is extended for the specified period from and after the date of the end of the then-current term.

C. Transferring, amending or modifying a uniform video service license under other sections of this article does not extend the term of the uniform video service license.

§ 9-1421 Subscriber complaints

A. A subscriber may submit complaints about video service to any of the following:

The local government where the subscriber resides.
The attorney general.
The federal communications commission.
Other authorities as provided by law.

B. A local government may choose to monitor and assist subscribers with the subscriber service standards pursuant to 47 Code of Federal Regulations section 76.309(c) or to be identified on bills to subscribers as the local franchise authority for a service area consistent with rules of the federal communications commission.

Article 3 Duties of Video Service Providers

§ 9-1431 Video service; revocation for nonuse

A. Not later than twenty-four months after the date that a local government issues a uniform video service license pursuant to sections 9-1414 and 9-1415 or an amended uniform video service license pursuant to section 9-1416, the holder of the uniform video service license shall offer and provide video service to at least one subscriber within each service area authorized by the uniform video service license or amended uniform video service license unless the holder cannot meet the requirement for reasons beyond the holder's control.

B. If a holder fails to comply with subsection A of this section, a local government may revoke the holder's uniform video service license for affected service areas.

§ 9-1432 Reports; confidentiality; definition

A. A video service provider that is not an incumbent cable operator and that holds a uniform video service license with a service area within the boundaries of a local government shall prepare and submit to the local government a semiannual report that identifies the locations within the boundaries that are able to receive video service from the video service provider. This reporting requirement applies until the video service provider has constructed all of the facilities the video service provider intends to construct within the boundaries of the local government.

B. The video service provider shall file the report with the local government not later than twenty days after the last day of the second and fourth calendar quarters of each year.

C. Information contained in a report that is submitted to a local government pursuant to this section:

Is confidential proprietary information of the video service provider.
Is not a public record.
Must be managed so that any critical infrastructure information contained in the report is protected as provided by law.
May not be disclosed to any person who is not an officer or employee of the local government unless the video service provider has consented in writing to the disclosure.

D. For the purposes of this section, "critical infrastructure information" has the same meaning prescribed in section 41-1801.

§ 9-1433 Nondiscriminatory manner; compliance with standards and federal law

A. A video service provider shall activate and offer video service in a nondiscriminatory manner within each service area and may not deny access to video service to any group of potential residential subscribers within a particular part of a service area because of the income profile of the persons who reside in that part of the service area.

B. In providing video service, a video service provider shall comply with all of the following:

47 United States Code section 551.
All engineering and safety codes applicable to the video service provider's construction practices and installation of equipment.
Any technical standards governing the design, construction and operation of a video service network required by federal law.
47 Code of Federal Regulations part 11, as adopted and as may be amended by the federal communications commission, to the extent those provisions require a video service provider to participate in the emergency alert system.
47 Code of Federal Regulations sections 76.309, 76.1601, 76.1602, 76.1603, 76.1604, 76.1618, 76.1619, 76.1620, 76.1621 and 76.1622, as adopted and as may be amended by the federal communications commission, on standards governing the quality of video service and subscriber service. A video service provider may not be required to comply with any subscriber service standards that are more burdensome than those set forth in this paragraph.

Article 4 Local Governments

§ 9-1441 Management of highways; local governments; permits or licenses

A. In managing a highway under local laws as prescribed in section 9-1411, subsection C, paragraph 9, a local government may manage the use of the highway, including all of the following:

Requiring a video service provider that is constructing, installing, working within, maintaining or repairing facilities in, on, under or over any highway to obtain a construction, encroachment or occupancy permit for the work.
Inspecting the construction, installation, maintenance or repair work performed on such facilities.
Limiting the installation of new aerial facilities.

B. If a video service provider requests a permit or inspection, the local government shall grant or deny the request within the time frame that the local government has in place under section 9-835.

C. If emergency response work or repair becomes necessary in, on, under or over any highway, a video service provider may begin that work or repair without prior approval from a local government if the video service provider notifies the local government as promptly as reasonably possible after learning that the work or repair is necessary.

§ 9-1442 Fees and charges; emergency alert; damage; undergrounding; wireless facilities; definition

A. Except the license fee on gross revenue authorized by section 9-1443 and transaction privilege taxes as provided in subsection B of this section, a local government may not levy a tax, rent, fee or charge, however denominated, on a video service provider for the use of the highways to provide video service or levy a tax, fee or charge on the privilege of engaging in the business of providing video service in the service area. Taxes, rents, fees and charges include all of the following:

Access channel support except for in-kind services, goods or payments as provided in subsection C of this section.
Rental, application, construction, permit, inspection, inconvenience and other fees and charges related to a video service provider's use of the highways, including the use authorized by subsection D of this section except that a local government may impose on a video service provider some or all of the fees and charges described in this paragraph. A video service provider shall offset the fees and charges imposed pursuant to this paragraph against the next license fee payment made pursuant to section 9-1443.

B. Any transaction privilege taxes otherwise authorized by local law to be levied on the business of providing video service or in relation to use of the highways to provide video service may be levied on a video service provider if the taxes are levied only on gross revenue and the rate of the taxes is subject to this subsection. This subsection does not authorize the imposition of transaction privilege taxes on interstate telecommunications service. The license fee and any transaction privilege taxes levied on gross revenue constitute a franchise fee within the meaning of the term in 47 United States Code section 542(g). The total of the rates of the license fee and of any transaction privilege taxes on gross revenue levied or assessed by a local government for the privilege of providing video service and related use of the highways to provide video service may not exceed a rate of five percent.

C. Subsection A of this section does not prohibit a local government from levying fees and charges on a video service provider or its affiliates pursuant to section 9-584 or pursuant to chapter 5, article 8 of this title without an offset against license fees.

D. A local government may not require a video service provider to provide in-kind goods or services, make in-kind payments, assessments or obligations or pay a fee in addition to the monetary license fee levied or assessed as provided in section 9-1443, except for any of the following:

A local law may impose and enforce obligations equally and uniformly on all video service providers that are operating within the boundaries of a local government and on all holdover cable operators that hold a local license that remains in effect under section 9-1414, subsection A. Under the local law, a local government:

(a) May require all video service providers to provide channel capacity for the video service provider to transmit programming over which the video service provider exercises no editorial control except as authorized by 47 United States Code section 531(e). The channel capacity shall be limited to one of the following:

(i) Not more than two channels of public, educational or governmental access programming in the basic service tier of the video service network and not more than two channels of noncommercial governmental programming, at least one of which may be programmed by the federal government, in the digital programming tier of the video service network.

(ii) Not more than two lines of access programming with each line of programming carried on up to two standard definition channels and two switched digital high-definition channels.

(b) Shall specify the programming and the video service provider may require that the channels regularly display an unobtrusive logo or other suitable identifier of the video service provider, if the local government requires channel capacity pursuant to subdivision (a) of this paragraph.

(c) May require all video service providers to incur costs and expenses to provide, maintain and operate facilities and equipment of the video service network, including facilities and equipment for signal carriage, processing, reformatting and interconnection for all of the following:

(i) To connect the video service network or cable system, as it may be relocated from time to time, to transmit programming to and from existing locations of public, educational or governmental access facilities and to allow monitoring of access programming at the facilities.

(ii) To transmit public, educational and governmental access channels to subscribers with the same prevailing quality, functionality and identification as other channels.

(d) May require all video service providers and incumbent cable operators to provide at no initial or recurring charge the basic service tier of video service to one outlet and one receiving device at each building occupied by the local government if the building is not more than two hundred feet from the nearest technically and commercially feasible point of connection on the video service network.

A local government may retain nonreceiving equipment that it owns without charge for the equipment's use and at the local government's expense, including equipment previously provided by an incumbent cable operator.

E. A local law may not impose any obligation on a video service provider under subsection D of this section that is more burdensome than the least burdensome requirement under any local license with a service area within the boundaries of the local government that was in effect on February 1, 2019.

F. None of the annual fair market value of any channel capacity provided pursuant to subsection D, paragraph 1, subdivision (a), the annual costs and expenses incurred pursuant to subsection D, paragraph 1, subdivision (c) and the annual fair market value of basic service and line extension provided pursuant to subsection D, paragraph 1, subdivision (d) may be offset against the license fee levied or assessed under this section.

G. Notwithstanding subsection A of this section, by a nondiscriminatory local law that imposes and enforces the obligations equally and uniformly on all video service providers operating within the boundaries of a local government, a local government may require that a video service provider bear all of the reasonable costs that are associated with repair and restoration of damage caused to private property or highways by the repair, replacement, installation, construction, maintenance or operation of the video service provider's facilities in the highways and that are imposed on a competitively neutral and nondiscriminatory basis in relation to costs borne by telecommunications corporations under section 9-582, subsection C.

H. On application, a local government shall issue to a video service provider or its affiliate a permit to attach allowed Wi-Fi radio equipment to the video service network in the highways within the boundaries of the local government. The permit shall allow installation, operation and maintenance of allowed Wi-Fi radio equipment. A local government may require that all of the allowed Wi-Fi radio equipment at a single location fit within a fifteen-inch cube and be contained entirely within a ground-mounted pedestal or be connected directly to and mounted at the same height as one of the video service provider's aerial horizontal conductors. This subsection does not do any of the following:

Prohibit a local government from requiring a video service provider to place underground aerial facilities to which allowed Wi-Fi equipment is attached.
Prohibit the imposition of a tax, rent, fee or charge on revenue from services provided through allowed Wi-Fi radio equipment.
Affect the authority of a local government to manage the highways within its boundaries or to exercise its police powers, including review and approval of an application before issuing a permit.
Affect any authority of a political subdivision, including an agricultural improvement district or any other special taxing district, the local government or any other person controlling utility poles in the highways to deny, limit, restrict or determine the terms and conditions for the use of or attachment to the utility poles or attachments to other poles of the political subdivision, local government or other person by a video service provider.

I. This section does not prohibit a video service provider from agreeing with a local government to provide in-kind services or goods or make in-kind payments in the service area that are otherwise prohibited by this section if the agreement with the local government is not entered into as a condition of operating in the service area under a uniform video service license issued pursuant to this chapter. The agreement may authorize the video service provider to retain license fees and taxes collected from its subscribers in the amount of any offset to license fees specified in the agreement.

J. For the purposes of this section, "allowed Wi-Fi radio equipment" means radio equipment that uses only unlicensed radio spectrum and that enables wireless communication with a communications network for unlicensed services such as Wi-Fi service.

§ 9-1443 License fee; requirements, conditions and limitations; pass through to subscribers

A. For the privilege of a video service provider to occupy or use, in whole or in part, any highway within the boundaries of a local government to provide video service through a video service network, the local government may require a video service provider to pay a license fee to the local government based on the gross revenue that the video service provider receives from its subscribers located within the boundaries of the local government. The license fee both:

Is subject to the limit prescribed in section 9-1442, subsection B and to offset, including amounts collected from subscribers, as prescribed by section 9-1442, subsections A and I and subsection D of this section.
Shall be due no more often than quarterly.

B. If the local government requires a license fee pursuant to subsection A of this section, the local government shall adopt a local law that imposes the license fee equally and uniformly on all of the following that are operating within the boundaries of the local government:

Video service providers.
Holdover cable operators.

C. A video service provider shall pay the entire amount of the license fee directly to the local government in a check, draft or note or automated clearinghouse transaction that is payable in legal tender as defined in section 43-1021.

D. A video service provider may do all of the following:

Pass the license fee through to and collect the license fee from its subscribers within the boundaries of the local government, including for an incumbent cable operator any change in license fees that results from a change in the applicable definition of gross revenue.
Designate the amount of the license fee collected from each subscriber as a separate line item on the subscriber's bill.

§ 9-1444 Ownership of a video service network

A local government may not acquire an ownership interest in a video service network unless the ownership interest is acquired at not less than fair market value.

§ 9-1445 Review and audit; bundling discounts; action to recover underpayment or overpayment

A. Not more than once every three years, a local government, on reasonable written notice, may audit the business books and records of a video service provider to the extent necessary to ensure payment of license fees pursuant to this chapter. A local government may assess additional license fees due at any time within four years after the date on which the fees were required to be paid. Any audit of a period of time before issuance of a uniform video service license shall be conducted pursuant to the local laws in effect during the period of time.

B. Except as otherwise provided by federal law, if a video service provider offers video service bundled with other services that are not video service for a single discounted price, all of the following apply:

The method that the video service provider uses to determine gross revenue subject to license fees by allocating the single discounted price among the bundle of video service and nonvideo services shall be reasonable and supported by the video service provider's books and records.
The local government shall accept as reasonable, for purposes of meeting the video service provider's burden of proof, an allocation based on an objective and verifiable method using the books and records that the video service provider kept in the regular course of business for other purposes, including nontax purposes.
A video service provider may not use bundled offerings as a means to evade paying license fees.

C. The local government and the video service provider shall each pay its own costs and fees relating to each audit performed pursuant to subsection A of this section. If the sum determined to be underpaid exceeds five percent of the total fees that the audit determines should have been paid for the period, the video service provider shall pay the local government's reasonable costs of the audit.

D. The rate of interest for both underpayments and overpayments is the federal short-term rate determined pursuant to 26 United States Code section 6621(b), plus three percentage points.

E. A person that performs a review and audit under subsection A of this section may not receive compensation that is based, in whole or in part, on either of the following:

Finding a particular result.
The amount of any underpayment or overpayment of the license fee that is identified because of the review and audit.

F. A complaint by a local government for underpayment of a license fee from a video service provider or by a video service provider for overpayment of a license fee to a local government shall be made pursuant to article 5 of this chapter.

G. A complaint for a violation of the license fee obligations under this chapter may not be made unless a written demand by a local government for payment of the license fees or a written demand by a video service provider for refund of license fees is made within four months after the local government or video service provider realizes it has been damaged or knows or reasonably should know of the damage caused by the alleged violation.

H. A complaint must be filed pursuant to article 5 of this chapter within three years after the written demand is made pursuant to subsection G of this section but not sooner than six months after the written demand.

Article 5 Enforcement

§ 9-1451 Enforcement; office of administrative hearings; fees; fund

A. A local government may file a written complaint against a video service provider and a video service provider may file a written complaint against a local government alleging a violation of this chapter or the uniform video service license agreement. Unless the matter arises under the constitution, laws, or treaties of the United States, including the communications act of 1934 (P.L. 73-416; 47 United States Code sections 151 through 615b) and all other applicable federal law, the office of administrative hearings has original jurisdiction over all matters under this chapter. Unless otherwise provided in section 9-1445, subsections F, G and H or this section:

To the extent allowed by federal law, all complaints must be filed with the office of administrative hearings. If a matter arises under the constitution, laws, or treaties of the United States, the complaint may be brought before the federal communications commission or a federal court of competent jurisdiction.
The complainant must serve a copy of the complaint on the party that is the subject of the complaint by personal delivery or certified mail, return receipt requested, or by any other method reasonably calculated to effect actual notice to the local government's last address of record for the party that is the subject of the complaint.
The party that is the subject of the complaint may file a response to the complaint with the office of administrative hearings within twenty days after service pursuant to paragraph 2 of this subsection. Responses shall be served pursuant to paragraph 2 of this subsection.

B. Before filing a complaint pursuant to this section both of the following apply:

The complainant must provide notice of the alleged violation of this chapter to the party that is the subject of the complaint.
The party that is the subject of the complaint must have a period of not less than twenty days after the date it receives the notice to resolve the alleged violation.

C. Subsection B of this section does not apply to a complaint made in a written demand pursuant to section 9-1445, subsection G.

D. A hearing before the office of administrative hearings shall be held if a complaint that complies with this section is filed with the office of administrative hearings. Unless other deadlines are established for a particular complaint, all of the following apply:

The hearing shall be held within two months after the date that the complaint is filed and service is completed pursuant to subsection A of this section.
The date scheduled for the hearing may be advanced or delayed on the agreement of the parties or on a showing of good cause.

E. The office of administrative hearings shall prepare and serve a notice of hearing on all parties at least one month before the hearing that states the time and place of the hearing.

F. A prehearing conference may be held pursuant to section 41-1092.05.

G. Unless it conflicts with the requirements of this section, the hearing shall be conducted pursuant to section 41-1092.07.

H. The complainant has the burden of persuasion at a hearing under this section.

I. The decision of the administrative law judge is the final administrative decision with respect to the complaint. The office of administrative hearings shall serve a copy of the administrative law judge's decision on all parties. The final administrative decision may be appealed to the superior court pursuant to title 12, chapter 7, article 6. The superior court proceeding shall be a trial de novo.

J. A party may move for rehearing pursuant to section 41-1092.09 and the office of administrative hearings shall rule on the motion. Moving for rehearing or review is not necessary for the party to seek judicial review of the decision of the administrative law judge under subsection I of this section.

K. Service is complete on personal service or five days after the date that the office of administrative hearings mails the final administrative decision to each party's last known address of record with the local government.

L. The office of administrative hearings shall adopt rules pursuant to title 41, chapter 6 to administer hearings under this chapter and title 11, chapter 14. The rules shall apply uniformly to hearings involving local governments and counties.

M. The office of administrative hearings shall establish, administer and collect fees in an amount to be determined by the director of the office of administrative hearings. The director shall deposit, pursuant to sections 35-146 and 35-147, all monies in the video service provider complaint fund established by subsection N of this section.

N. The video service provider complaint fund is established consisting of monies collected pursuant to subsection M of this section and section 11-1951, subsection M. The office of administrative hearings shall administer the fund. Monies in the fund are continuously appropriated. The office of administrative hearings shall use the monies in the fund for the purpose of administering the duties specified in this article and title 11, chapter 14, article 5.

§ 9-1452 Statute of limitations; costs and attorney fees; federal subscriber service requirements

A. Except as provided in section 9-1445, subsections F, G and H, a complaint under this article must be filed within two years after the complainant realizes it has been damaged and knows or reasonably should know the cause, source, act, event, instrumentality or condition that caused or contributed to the alleged violation.

B. Each party to a dispute under this chapter shall bear its own attorney fees and costs.

C. This article does not apply to claims that a video service provider has failed to meet subscriber service standards prescribed by section 9-1433, subsection B, paragraph 5 or has violated title 44, chapter 10, article 7. Claims of violations of federal subscriber service standards shall be made pursuant to the procedure established under federal law.