Bill Text: AZ SB1382 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: Special districts; debt level; report
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2015-02-16 - Senate SDBR Committee action: Held [SB1382 Detail]
Download: Arizona-2015-SB1382-Introduced.html
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REFERENCE TITLE: special districts; debt level; report |
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State of Arizona Senate Fifty-second Legislature First Regular Session 2015
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SB 1382 |
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Introduced by Senator Dial
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AN ACT
amending sections 48-251 and 48-253, Arizona Revised Statutes; relating to special taxing districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 48-251, Arizona Revised Statutes, is amended to read:
48-251. Annual report
A. Each district organized or operating under this title and not exempted under subsection C of this section shall submit an annual report as prescribed by this section that contains the following information:
1. A schedule of the beginning and ending fund balances and all revenues and expenditures for the preceding fiscal year on a form prescribed by the auditor general or the same information contained in a financial statement for the preceding fiscal year that has been attested to by an independent certified public accountant. The schedule or statement shall include all monies, gifts or donations that are received from all sources and that have a value exceeding one hundred dollars.
2. Legal descriptions of any boundary changes occurring during the preceding fiscal year.
3. The names, occupations and business telephone numbers of all members of the governing board and officers of the district on the last day of the preceding fiscal year.
4. The schedule and location of regular meetings of the district governing board.
5. The location or locations where public notices of meetings are posted pursuant to section 38‑431.02.
6. The name and title of the person or persons completing the reporting requirements pursuant to this subsection.
7. Except for a district organized pursuant to chapter 5, article 3 of this title, a copy of any audit or financial review required to be prepared pursuant to section 48‑253, subsection G.
8. A statement of the amount of outstanding debt of the district as a percentage of the total assessed valuation of all real property in the district.
B. The secretary or other officer of the district governing board shall submit the report within two hundred forty days of after the close of the district's fiscal year to the clerk of the board of supervisors of each county in which the district is located and to the state treasurer.
C. Districts organized under chapters 4, 6, 17, 22, 27 and 28 of this title are exempt from the requirements of this section. Districts that do not provide services or otherwise operate during the entire period covered by the report and that notify the clerk of the board of supervisors in writing of these circumstances within the time for filing the report are exempt from the requirements of subsection A of this section.
D. If a district fails to submit a report as required by this section, any taxpayer residing in the district may petition the superior court in a county in which the district is organized to order the district to show cause why the report has not been submitted. On a failure to show cause the court shall order the district to file all reports as required by this section. A failure to obey the order of the court is punishable as contempt of court.
E. If the court finds that a district has violated this section, it shall award the taxpayer attorney fees and costs associated with bringing the action.
F. The board of supervisors of each county shall submit annually by March 31 a report on compliance with the requirements of this section to the president of the senate, the speaker of the house of representatives and the governor. The annual report shall include a listing of all those districts required to comply with the requirements of this section, the districts in compliance and not in compliance with the requirements and an analysis of the sufficiency of each district report.
G. The board of supervisors shall notify each district not in compliance with the reporting requirements of this section to comply within thirty days after receipt by certified mail of the noncompliance and that the district is subject to a civil penalty if it fails to comply. The board of supervisors shall assess, and the county treasurer shall collect from the monies of a district remaining in noncompliance thirty days after receipt of certified mail a penalty assessment of one hundred dollars per day for each day that the district is not in compliance with the reporting requirements of this section from thirty days after receipt by certified mail of the noncompliance notice until such time as the board of supervisors receives a copy of the district's annual report, to the extent that district monies are available and unencumbered. Penalty monies collected shall be deposited in the county general fund.
Sec. 2. Section 48-253, Arizona Revised Statutes, is amended to read:
48-253. District audits and financial reviews
A. Each district that is organized or operating under this title, that is not exempt under subsection G or H of this section and that is required to make an annual report under this article shall have its reports audited in accordance with generally accepted government auditing standards and the following:
1. Audits required by this section shall be performed annually for districts whose budgets are one million dollars or more. Districts whose budgets are one hundred thousand dollars or more but less than one million dollars shall have a financial review performed annually. Districts whose budgets are more than fifty thousand dollars and less than one hundred thousand dollars shall have a financial review performed at least biennially. Districts whose budgets are fifty thousand dollars or less shall have a financial review performed at the request of the county board of supervisors or on receipt of a request for a financial review that is signed by at least ten residents of that district. A district shall not be required to perform a financial review more than once per fiscal year.
2. A district may select an outside auditor who is a certified public accountant or a representative who is selected by the board of supervisors and who is trained as an auditor.
3. A district may advertise and use competitive bidding practices to select an agent to perform the audits or financial reviews required by this section.
B. Each district that submits a financial statement for the preceding fiscal year that has been attested to by an independent certified public accountant pursuant to section 48‑251 is deemed to have complied with this section by submitting a copy of the financial statement to the county treasurer.
C. Each district shall submit a copy of the completed audit or financial review to the state TREASURER, the county treasurer and the board of supervisors within two hundred forty days after the close of the district's fiscal year or within one hundred eighty days after a request for a financial review is received by the district pursuant to subsection A, paragraph 1 of this section.
D. If a district fails to submit an audit or financial review as required by this section, any taxpayer residing in the district, the board of supervisors or the county treasurer may petition the superior court in a county where the district is organized to show cause why the audit or financial review has not been submitted. On a failure to show cause the court shall order the district to submit the audit or financial review within ten days after the judgment is entered. Except for a district organized pursuant to chapter 5, article 3 of this title, on complaint made to the county attorney, the county attorney may investigate any claimed failure to comply with this section, report publicly on the investigation's findings and take any enforcement action deemed appropriate by the county attorney.
E. If the court enters a judgment against the district under this section, the court may award the taxpayer, board of supervisors or county treasurer reasonable attorney fees and costs associated with bringing the action.
F. For districts organized under chapter 19 of this title, a district with an annual budget of at least five million dollars shall have an audit performed annually and a district with an annual budget of at least one million dollars but less than five million dollars shall have an audit performed every five years and a financial review performed each year an audit is not performed. A district with an annual budget of at least one hundred thousand dollars but less than one million dollars shall have an audit performed every ten years and a financial review performed each year an audit is not performed.
G. For districts organized under chapter 5 of this title and except for districts organized under chapter 5, article 3 of this title, a district that receives five hundred thousand dollars or more in total revenues shall perform an annual audit. For the purposes of this subsection, revenues include monies generated by tax levies, monies received through appropriations, grants and other federal and state sources and monies received from services or other private sources, including ambulance and similar services. If a district's total budgeted revenues in a fiscal year are less than five hundred thousand dollars and the district receives total actual revenues in a fiscal year of five hundred thousand dollars or more, the district shall have an audit performed for that preceding fiscal year as if the audit had originally been required by this section. Districts whose total annual revenues are one hundred thousand dollars or more but less than five hundred thousand dollars shall have a financial review performed annually. Districts whose total annual revenues are more than fifty thousand dollars and less than one hundred thousand dollars shall have a financial review performed at least biennially. Districts whose total annual revenues are fifty thousand dollars or less shall have a financial review performed at the request of the county board of supervisors or on receipt of a request for a financial review that is signed by at least ten residents of that district. A district shall not be required to perform a financial review more than once per fiscal year. All financial reviews prescribed by this section must be conducted according to generally accepted government auditing standards.
H. Districts organized under chapters 4, 6, 17, 22, 27 and 28 of this title are exempt from the requirements of this section.
