A.R.S. tit. 48 ch. 29 — Arizona Revised Statutes Title 48 Chapter 29 — Regional Public Transportation Authority

48-5101. Definitions In this chapter, unless the context otherwise requires: 1. "Authority" means a regional public transportation authority organized under this chapter. 2. "Board" means the board of directors of a regional public transportation authority. 3. "Fiscal agent" means a bank or trust company authorized to do business in this state or the county treasurer as designated by the board. 4. "Municipality" means an incorporated city or town. 5. "Operating area" means the area in which the authority provides transportation service, the boundaries of which are established pursuant to this chapter. 6. "Population" means the population determined in the most recent United States decennial census or the most recent special census as provided in section 28-6532. 7. "Public agency" includes this state and any county, city, town, district or other public agency or entity established under the laws of this state or the federal government. 8. "Public transportation" means local transportation of passengers by means of a public conveyance. 48-5102. Regional public transportation authority in counties with population of three million or more persons; establishment A. Beginning January 1, 2026, a regional public transportation authority is established in a county that has a population of three million or more persons and that approves a county transportation excise tax. B. An authority is a tax levying public improvement district for all purposes of article XIII, section 7, Constitution of Arizona, and has the powers, privileges and immunities specifically granted by law. The authority's property, bonds, debts and other obligations and interest on and transfer of its bonds and obligations are free from taxation. C. The authority may operate both within and outside the corporate limits of the member municipalities. 48-5103. Public transportation fund A. A public transportation fund is established for the authority. The fund consists of: 1. Monies appropriated by each municipality that is a member of the authority or the county, if it elected to enter into the authority. Each member municipality and member county shall appropriate monies to the public transportation fund in an amount determined by the board. 2. Monies appropriated by a county that has not elected to enter into the authority in an amount determined by the county board of supervisors. 3.  Transportation excise tax revenues that are allocated to the fund pursuant to sections 42-6105 and 42-6105.01. The board shall separately account for monies from transportation excise tax revenues allocated pursuant to section 42-6105, subsection D, paragraph 3 for: (a) A light rail public transit system. (b) Capital costs for other public transportation. (c) Operation and maintenance costs for other public transportation. 4. Monies distributed under title 28, chapter 17, articles 1 and 2. 5. Grants, gifts or donations from public or private sources. 6. Monies granted by the federal government or appropriated by the legislature. 7. Fares or other revenues collected in operating a public transportation system. B. On behalf of the authority, the fiscal agent shall administer monies paid into the public transportation fund. Monies in the fund may be spent pursuant to or to implement the public transportation element of the plan as defined in section 28-6351 developed and approved by the regional planning agency, including reimbursement for utility relocation costs as prescribed in section 48-5107 and for projects identified in the plan adopted by the regional planning agency pursuant to section 28-6352. C. Monies in the fund shall not be spent to promote or advocate a position, alternative or outcome of an election, to influence public opinion or to pay or contract for consultants or advisors to influence public opinion with respect to an election regarding taxes or other sources of revenue for the fund or regarding the plan as defined in section 28-6351. 48-5104. Municipality and county participation; withdrawal A. A municipality located in a county eligible to establish an authority may elect to enter into the authority by adopting an ordinance declaring its participation. B. The county may elect to enter into the authority by adopting a resolution declaring its participation. The county shall represent persons residing in the unincorporated areas of the county. C. A member municipality or member county may withdraw from the authority at the end of a fiscal year by adopting an ordinance or resolution not later than ninety days before the end of the fiscal year that states its intention to withdraw. The withdrawal from the authority shall not result in the cancellation of a contractual agreement entered into between the withdrawing member and the authority. 48-5105. Board of directors A. A board composed of the following members shall govern the authority: 1. From each municipality that enters into the authority, one elected official who is appointed by the respective governing body of the municipality. 2. One county supervisor who is appointed by the county board of supervisors, if the county enters into the authority. B. The term of each member is two years unless the member is no longer serving in the member's elected capacity, in which case the membership is vacant. The respective governing body shall fill a vacancy under subsection A of this section. C. Each municipality or county may provide for an alternate board member who is also an elected official. Section 11-211, subsection A does not apply to a county supervisor serving on the board. If an elected official of a municipality is prohibited from serving on the board, the governing body of the municipality shall appoint an official of the municipality who is not prohibited from serving on the board. D. The voting members of the authority are entitled to one vote for each member unless a voting member requests a weighted vote. If a weighted vote is requested, the following apply: 1. Each member of the board is entitled to a percentage vote based on the proportion of the population the member represents to the total population represented by all members of the board, except as provided in paragraph 4 of this subsection. 2. If a municipality is a member of the board, its proportion of the population shall be calculated on the basis of the population in the incorporated area of the municipality. 3. If the county is a member of the board, its proportion of the population shall be calculated on the basis of the population in the unincorporated area of the county. 4. The weighted vote of any single member shall not exceed forty per cent of the total weighted vote. If any member's proportion of the population as calculated in this subsection entitles it to a weighted vote in excess of forty per cent, the limitation on its percentage does not affect the calculation of the weighted vote of each other member. E. For the purpose of preliminary approval of a regional public transportation system plan, the voting provisions of subsection D of this section apply, except that if a weighted vote is requested, in addition to the provisions provided in subsection D of this section relating to a weighted vote, a minimum of one-third of the voting members is also required for preliminary approval of the plan. 48-5107. Utility relocation reimbursement; definition A. All costs for the relocation, and reasonable ongoing costs related to the relocation, of utility facilities incurred after July 1, 2003 as a direct result of the construction and operation of a light rail project shall be reimbursed by the light rail project to the utility. The board shall make the payments from transportation excise tax revenues allocated pursuant to section 48-5103, subsection A, paragraph 3, subdivision (a) within ninety days after presentation of a statement of verified expenses. The statement of verified expenses shall not include profit but may include a reasonable allocation of general overhead. The verified expenses may be reviewed and audited by the light rail operator, but the audit must be concluded within ninety days and shall be conducted pursuant to standard industry accounting principles. B. If the relocated utility has existing land rights, the light rail operator shall relocate the utility with equal land rights. If the relocated utility is operating in the right-of-way under a permit, the light rail operator shall relocate the utility according to the utility's existing rights under the permit within the right-of-way. C. The light rail operator shall be fully responsible for acts, negligence or omissions of all of its employees on the project that result in damage to utility facilities. D. For the purposes of this section, "utility" means any public service corporation, agricultural improvement district, licensed cable television system, licensed video service network, telephone line or telegraph line corporation or person engaged in the generation, transmission or delivery of electricity, natural gas, telephone, cable television, video, telegraph or water service, including this state or any political subdivision or agency of this state. 48-5122. Board powers and duties The board shall: 1. Implement the public transportation element of the regional transportation plan funded by the public transportation fund. 2. Determine whether to operate public transportation systems or to let contracts for their operation. 3. Adopt an annual budget and fix the compensation of its employees. 4. Adopt an administrative code by ordinance that: (a) Prescribes the powers and duties of the employees of the authority that are not inconsistent with this chapter. (b) Prescribes the method of appointing board employees. (c) Prescribes methods, procedures and systems of operating and managing the board. (d) May provide for, among other things, appointing a general manager and organizing the employees of the board into units for administration, design and construction, planning and operation, property acquisition and community relations and other units as the board deems necessary. 5. Cause a postaudit of the financial transactions and records of the board to be made at least annually by a certified public accountant. 6. Adopt all ordinances and make all rules proper or necessary to: (a) Regulate the use, operation and maintenance of its property and facilities, including its public transportation systems and related transportation facilities and services operating in its area of jurisdiction. (b) Carry into effect the powers granted to the board. 7. Appoint advisory commissions as it deems necessary. 8. Enter into agreements with the department of transportation, a regional planning agency, metropolitan planning organization or council of governments, a county, city or town or a designated grant recipient for the acceleration of a transportation project as defined in section 28-7671, and may advance monies to the department of transportation, a regional planning agency, metropolitan planning organization or council of governments, a county, city or town or a designated grant recipient pursuant to those agreements. The board may pledge any lawfully available monies, including excise taxes, to the repayment of all or any part of the principal, premium, if any, and interest on any borrowing to fund the advance. 9. Do all things necessary to carry out the purposes of this chapter. 48-5123. Contracts; eminent domain A. The board may contract and enter into stipulations of any nature and do all acts necessary and convenient for the full exercise of the powers granted in this chapter, except that the board shall not exercise the power of eminent domain. B. The cities and towns or county may exercise the right of eminent domain pursuant to title 12, chapter 8, article 2 for the purposes prescribed in this chapter, in behalf of the authority, and sell or lease to the authority any property acquired through eminent domain proceedings. 48-5141. Regional bus system The board may contract with a public agency or with a person on the terms and conditions the board finds in its best interest to operate a regional bus system. 48-5161. Definitions In this article, unless the context otherwise requires: 1. "Any public transportation purpose" includes any one or more of the following purposes: (a) The payment of public transportation obligations. (b) The cost of acquiring, constructing, reconstructing, equipping, maintaining and repairing a public transportation system. (c) The acquisition of real property for public transportation needs. (d) The payment of bond related expenses. 2. "Bond related expenses" means expenses incurred by the authority to issue and administer its bonds, including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other expert fees and expenses, cost of credit enhancement fees, attorney and accounting fees and expenses related to credit enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and telephone expenses and all other fees deemed necessary by the board in order to market and administer the bonds. 3. "Bonds" means bonds of the authority issued pursuant to this article. 4. "Real property for public transportation needs" means real property and any appurtenances to the real property that are designated or may be designated by the board as a location for the construction of a public transportation system project, including all lands or interests in lands, the use or occupancy of which are necessary or appropriate in the construction, reconstruction, repair, maintenance, extension, development, improvement or operation of public transportation facilities and improvements. 48-5162. Bond authority Subject to this article the board may: 1. Issue negotiable bonds in a principal amount that, in the opinion of the board, is necessary to provide sufficient monies for any public transportation purpose that is included in the regional public transportation system plan, to establish reserves to secure the bonds and to provide for the payment of all other expenditures of the board incidental, necessary and convenient to carry out these purposes. 2. Issue refunding bonds if the board deems refunding expedient. 3. Refund any bonds issued by the board if the bonds are secured from the same source of revenues as the bonds authorized in this article by the issuance of new bonds, whether or not the bonds to be refunded have matured. 4. Issue bonds partly to refund bonds then outstanding and partly for any public transportation purpose consistent with this article. Regardless of whether or not the bonds are of such form or character as to be negotiable instruments under the terms of the uniform commercial code, the bonds are fully negotiable within the meaning and for all purposes of the uniform commercial code. 48-5163. Bond requirements The bonds authorized by this article shall: 1. Be authorized by resolution of the board. 2. Bear such date or dates and shall mature at such time or times as the resolution or resolutions may provide. 3. If the transportation excise tax has a final termination date, mature at or before the final termination date. 4. Bear interest at such rate or rates, whether fixed or variable, be in such denominations, be in such form, be executed in such manner, be payable in such medium of payment at the office of the fiscal agent or at such other place or places and be subject to such terms of redemption as the resolution or resolutions may provide. 5. Be sold at public or private sale at the price and on the terms the board determines, except that bonds to fund or refund other bonds may be either sold or exchanged with the holders of bonds being funded or refunded on terms the board determines. 48-5164. Bond payment; security In connection with the issuance of the bonds authorized by this article to secure the payment of the bonds and interest on the bonds, the board by resolution may: 1. Provide that bonds issued under this article may be secured by a first lien on all or any part of the monies paid into the public transportation fund. 2. Establish and segregate one or more bond accounts in the public transportation fund to set aside monies to be used to pay principal, interest and premium, if any, on the bonds and provide conditions and terms for the use of the accounts. 3. Pledge and assign to or in trust for the benefit of the holder or the holders of the bonds all or any part of the monies that are paid into the public transportation fund and that will be necessary to pay the principal of and interest on the bonds as the bonds become due. 4. Set aside, regulate and dispose of reserves and sinking funds. 5. Provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fully or partly fund all reserves or sinking funds set up in the bond resolution. 6. Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given. 7. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other monies available to the authority. 8. Do any other matters, of like or different character, that may in any way affect the security and protection of the bonds or affect interest on the bonds. 48-5165. Pledges; liens A. A pledge made pursuant to this article is valid and binding from the time when the pledge is made. The monies pledged pursuant to this article and placed in a bond account of the public transportation fund are immediately subject to the lien of the pledge without any future physical delivery or further act. B. A lien of any pledge is valid or binding against all parties having claims of any kind in tort, contract or otherwise against the board, regardless of whether the parties have notice. When placed in the records of the board, the official resolution or trust indenture or any instrument by which this pledge is created is notice to all concerned of the creation of the pledge, and these instruments are not required to be recorded in any other place to perfect the pledge. 48-5166. Liability; bond validity A. The members of the board or a person executing the bonds is not personally liable for the payment of the bonds. B. The bonds are valid and binding obligations of the authority notwithstanding the fact that before the delivery of the bonds any of the officers whose signatures appear on the bonds cease to be officers of the authority. C. From and after the sale and delivery of the bonds, the bonds are incontestable by this state, the county or the authority. 48-5167. Bond purchase; cancellation The board may purchase bonds out of any monies available and cancel these bonds. 48-5168. Financial interest prohibited; violation; classification A. A member of the board or an employee of the authority shall not have a direct or indirect financial interest in any real property for public transportation needs that is purchased from monies made available by the issuance of bonds. B. A person who violates this section is guilty of a class 2 misdemeanor. 48-5169. Public transportation bond proceeds fund A. The public transportation bond proceeds fund is established. After deducting the necessary costs and expenses of the issuance and sale of the bonds, the authority shall promptly transfer the proceeds received from the sale and delivery of the bonds to the fiscal agent for deposit in the public transportation bond proceeds fund. The fiscal agent shall maintain the fund separate and apart from all other funds, except that the authority's treasurer or fiscal agent shall first apply those amounts of the bond proceeds provided in the resolution issuing the bonds to all reserve and sinking funds created in the bond resolution. The authority may spend monies in the fund for any public transportation purpose not inconsistent with the resolutions authorizing the bonds. B. The board may order the investment of monies in the public transportation bond proceeds fund by the fiscal agent in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities and any investments that are authorized by any other agencies of the United States government and that are now authorized for use to secure public deposits or state, county or municipal bonds issued in this state on which the payments of interest have not been deferred. C. The order directing the fiscal agent to invest the monies shall set forth the approximate time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the fiscal agent shall invest the proceeds from the sale of the bonds in the securities prescribed in subsection B in such a way as to mature at the specified date. D. The board shall use the monies or securities in the public transportation bond proceeds fund solely for the purposes set forth in the bond resolution, except that, if the revenues pledged to secure the bonds ever are insufficient to pay the annual principal and interest on the bonds, the board shall order: 1. The liquidation of the securities remaining in the fund. 2. The fiscal agent to apply all such monies in the fund as necessary to make current all payments then due on the bonds. E. Title 35, chapter 3, article 7 applies to the bonds and the authority. 48-5170. Regional public transportation authority monies; treasurer; investments A. No monies derived from the sale of bonds issued under this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds may be required to be paid into the state or county treasury. B. The authority may appoint a treasurer or fiscal agent to hold, deposit or invest the authority's monies. C. Monies derived from the sale of bonds issued under this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds: 1. May be invested in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities or shall be deposited by the treasurer or other fiscal officer of the board in the banks or trust companies as designated by the board and, if required by the board, shall be secured by obligations of the United States. 2. Shall be disbursed as the board may direct and according to the terms of any agreements with the holder or holders of any bonds. D. This section does not limit the power of the board to agree in connection with the issuance of any of its bonds as to the custody and disposition of the monies received from the sale of the bonds or from the income and revenues pledged or assigned to or in trust for the benefit of the holder or holders of the bonds. 48-5171. Agreement of state A. This state pledges to and agrees with the holders of the bonds that this state will not limit or alter the rights vested in the board to collect the revenues pledged for repayment of the bonds as may be necessary to produce sufficient revenue to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until all bonds issued under this article, interest on the bonds, interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders are fully met and discharged. B. The board as agent for this state may include this pledge and undertaking by this state in its resolutions and indentures securing its bonds. 48-5172. Taxation exemption The board is regarded as performing a governmental function in carrying out the purposes of this article and is not required to pay taxes or assessments on any of the property acquired or constructed or on the activities of the board in maintaining and caring for the real property or in the monies derived from the real property. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state. 48-5173. Attorney general bond certification A. The board may submit to the attorney general any bonds to be issued under this article after all proceedings for the authorization of the bonds have been taken. On the submission of the proceedings to the attorney general, the attorney general shall investigate and determine the validity of the bonds and the regularity of all proceedings in connection with the issuance. B. If the proceedings conform to this article and if the bonds when delivered and paid for will constitute binding and legal obligations of the board enforceable according to the terms of the bonds, 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. 48-5174. Bond obligations of the board A. Bonds issued pursuant to this article: 1. Are obligations of the board issuing the bonds. 2. Are payable only pursuant to the terms of the bonds. 3. Are not obligations that are general, special or otherwise of this state. 4. Are not a legal debt of this state. 5. Are not enforceable against this state. B. Payment of the bonds issued pursuant to this article is not enforceable out of any monies of the authority other than the income and revenue pledged and assigned to or in trust for the benefit of the holder or holders of the bonds. 48-5175. Bonds; legal investments Bonds issued under this article are made securities: 1. In which all of the following may properly and legally invest monies including capital in their control or belonging to them: (a) Public officers and bodies of this state. (b) Municipalities and political subdivisions of this state. (c) Insurance companies and associations and other persons carrying on an insurance business. (d) Banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business. (e) Administrators, guardians, executors, trustees and other fiduciaries. (f) Other persons authorized to invest in bonds or other obligations of this state. 2. That may be deposited with and may be received by all public officers and bodies of this state and all municipalities and political subdivisions of this state for any purpose for which the deposit of bonds or other obligations of this state is authorized.