Arizona Revised Statutes

Ariz. Rev. Stat. § 9-502 (2026)

Petition for franchise; publication; estimate; election; term; expenditures

✓ current as of May 2026

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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.

Notes of Decisions

Cited in 3 cases, 1976–2007 · leading case: City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007).

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City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007). · cites it 4× “” See A.R.S. § 9-502 (requiring that a franchise be approved by a majority of the electorate before it can be granted); see also Iowa Elec.”

Kelman v. Bohi, 550 P.2d 671 (Ariz. Ct. App. 1976). “§§ 44-3148 (B) and 44-3150(B) [UCC §§ 9-502 and 9-504] state, in part, “If the security agreement secures an indebtedness, the secured party must account to the debtor for any surplus.”

City of Bisbee v. Arizona Water Co. (Ariz. Ct. App. 2007). · cites it 4× “” Thus, although the trial court’s ruling was overbroad in requiring franchises for all public utility operations, we cannot say the trial court erred in concluding that, on the City’s request, AWC was obligated to obtain a franchise in order to continue its water service…”

— Ariz. Rev. Stat. § 9-502(A) — 2 cases

City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007). “” See A.R.S. § 9-502 (requiring that a franchise be approved by a majority of the electorate before it can be granted); see also Iowa Elec.”

City of Bisbee v. Arizona Water Co. (Ariz. Ct. App. 2007). “” Thus, although the trial court’s ruling was overbroad in requiring franchises for all public utility operations, we cannot say the trial court erred in concluding that, on the City’s request, AWC was obligated to obtain a franchise in order to continue its water service…”

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