HB 4064 Arizona House · 57th Legislature - Second Regular Session

municipal improvement districts; petitions

HB 4064 amends Arizona law to streamline the formation of municipal improvement districts for specific infrastructure projects, including pedestrian malls, parking facilities, retention basins, and parkways. It allows a governing body to immediately approve such districts if a petition signed by all real property owners (excluding mortgagees) is submitted, skipping standard public notice requirements. This directly affects property owners within proposed districts by simplifying the process for funding and maintaining these shared public improvements. The key change reduces procedural steps when unanimous owner support is demonstrated, shifting funding to either ad valorem taxes or proportional property assessments. The bill focuses on administrative efficiency rather than altering funding mechanisms.

Issues: ✓ Transportation

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 10, 2026 Last action Mar 17, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (03/10/2026) · 7 edits · Mar 10, 2026

MODERATE

This bill reorganizes the formatting of the legislation and introduces significant new rules for forming special improvement districts. It creates two new categories of districts: one for pedestrian malls and parking facilities, and another for enhanced municipal services in designated areas. The most critical change is a new requirement that almost all improvement districts must now be approved by a petition signed by property owners before the city can proceed, replacing the previous system where a simple city resolution was often enough.

Scope change

The bill expands the scope of allowable improvement districts to include pedestrian malls, off-street parking, and enhanced services in blighted areas, while simultaneously tightening the eligibility requirements for forming these districts by mandating owner petitions.

SCOPE

Added a new category for improvement districts specifically for pedestrian malls, off-street parking, retention basins, and parkways.

Added a new category for improvement districts providing enhanced municipal services (like safety or landscaping) within designated slum or blighted areas.

REQUIREMENT

Changed the formation process for most improvement districts to require a petition signed by property owners before the city can order the work, whereas previously a city resolution alone was often sufficient.

Added a new dissolution process allowing property owners to petition to close a district if more than 50% of owners agree.

Modified the rules for adding or removing territory from a district to include stricter public notice requirements and conditions.

ELIGIBILITY

Established specific voting thresholds for petitions: districts levying taxes require 51% of assessed valuation, while others require 51% of acreage.

TECHNICAL

Removed the requirement to publish and post a 'resolution of intention' before forming a district when a full owner petition is submitted.

Floor votes · House Mar 10, 2026

How they voted

48–7

Passed · 5 other

Total votes 60

Mar 10, 2026

D Democratic27

23 Yea 4

85% Yea

R Republican33

25 Yea 7 Nay 1

75% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Lower · Passed

PASSED

lower

Mar 5, 2026

Lower · Passed

lower

Feb 18, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors