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¦ REFERENCE TITLE: municipal water rates; outside charges ¦
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¦ State of Arizona ¦
¦ House of Representatives ¦
¦ Forty-fourth Legislature ¦
¦ Second Regular Session ¦
¦ 2000 ¦
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¦ HB 2217 ¦
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¦ Introduced by ¦
¦ Representative Schottel ¦
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AN ACT
AMENDING SECTION 9-511, ARIZONA REVISED STATUTES; AMENDING TITLE 40, CHAPTER 2, ARTICLE 11, ARIZONA REVISED STATUTES, BY ADDING SECTION 40-465; RELATING TO MUNICIPAL WATER RATES.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-511, Arizona Revised Statutes, is amended to read:
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, AND 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 OR TO RESIDENTS OF A COUNTY, the rates it charges for the water to the public inOUTSIDE the other municipality shall be one of the following:
1. The same or less than the rates it charges its own residents for water.
2. The same or less than the rates the other municipality OR COUNTY charges its residents for water.
3. If the other municipality OR COUNTY does not provide water, the average rates charged for water to the residents in the other municipality by private water companies.
4. Rates determined by a contract whichTHAT is approved by both municipalities, OR BY THE MUNICIPALITY AND THE RESIDENTIAL UTILITY CONSUMER OFFICE PURSUANT TO SECTION 40-465 FOR RESIDENTS OF THE COUNTY, and in which such rates are justified by a cost of service study or by any other method agreed to by both municipalities, OR BY THE MUNICIPALITY AND THE RESIDENTIAL UTILITY CONSUMER OFFICE PURSUANT TO SECTION 40-465.
B. Nothing in this section shall affectAFFECTS 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 chargesCHARGED its own residents and except that any increase in the percentage of such surcharge proposed after August 13, 1986 shall beIS 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, OF THIS SECTION 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.
AND THAT EXCEEDS THIRTY PER CENT OF THE MUNICIPAL CORPORATION'S SERVICE AREA.
2. THE MUNICIPAL CORPORATION PROVIDES UTILITY SERVICES TO A NUMBER OF PERSONS RESIDING OUTSIDE THE CORPORATE BOUNDARIES OF THE MUNICIPALITY THAT EXCEEDS THIRTY PER CENT OF THE CUSTOMER BASE WITHIN THE CORPORATE BOUNDARIES.
Sec. 2. Title 40, chapter 2, article 11, Arizona Revised Statutes, is amended by adding section 40-465, to read:
40-465.Municipal water utility rates for county residents; determination; assessment; deposit
A. IN ADDITION TO OTHER POWERS AND DUTIES OF THE OFFICE, THE OFFICE MAY RECEIVE CONTACTS CONCERNING WATER RATES FROM MUNICIPAL WATER UTILITY CONSUMERS WHO RESIDE IN UNINCORPORATED AREAS OUTSIDE OF THE MUNICIPALITY THAT PROVIDES WATER TO THE CONSUMERS. BASED ON THE NUMBER AND NATURE OF CONTACTS, THE DIRECTOR MAY REQUIRE THE MUNICIPAL WATER UTILITY TO ENTER INTO A CONTRACT FOR WATER RATES PURSUANT TO SECTION 9-511, SUBSECTION A, PARAGRAPH 4, IF THE CHARGES FOR WATER BY THE MUNICIPAL WATER UTILITY ARE NOT WITHIN THE LIMITS PRESCRIBED BY SECTION 9-511, SUBSECTION A, PARAGRAPH 1, 2 OR 3.
B. TO FUND THE MUNICIPAL WATER UTILITY RATE FUNCTION OF THE OFFICE PURSUANT TO THIS SECTION, THE OFFICE SHALL ANNUALLY ASSESS EACH MUNICIPAL WATER UTILITY IN THIS STATE SO THAT THE TOTAL OF THE ASSESSMENTS IS SUFFICIENT TO EQUAL THE ACTUAL COST TO THE OFFICE OF ADMINISTERING THIS SECTION AS DETERMINED BY THE BOARD. THE ASSESSMENT SHALL BE MADE BY JUNE 15 OF EACH YEAR AND SHALL BE PAID WITHIN FIFTEEN DAYS AFTER MAILING BY CERTIFIED MAIL TO EACH MUNICIPAL WATER UTILITY THE NOTICE OF ASSESSMENT AND A STATEMENT OF THE AMOUNT.
C. MONIES FROM ASSESSMENTS SHALL BE DEPOSITED IN A SEPARATE ACCOUNT OF THE RESIDENTIAL UTILITY CONSUMER OFFICE REVOLVING FUND ESTABLISHED BY SECTION 40-409.
D. NOTWITHSTANDING SUBSECTION B OF THIS SECTION, UNTIL JUNE 30, 2001, THE OFFICE SHALL USE MONIES IN THE RESIDENTIAL UTILITY CONSUMER OFFICE REVOLVING FUND FOR THE PURPOSES OF THIS ACT AND MAKE THE FIRST MUNICIPAL WATER UTILITY ASSESSMENT ON JUNE 15, 2001.
Sec. 3. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.