HB2702 - 472R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-5031, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5031. Distribution of multipurpose facility revenues to district

A. Subject to the requirement requirements of subsection D of this section, if a county stadium district is authorized by an election pursuant to section 48‑4237, subsection F E, paragraph 5 to use the amounts paid to the district pursuant to subsection B of this section as permitted by law, then after delivery of a resolution of the district board of directors requesting payment, which resolution shall contain notice of the exercise of the option to begin payments provided for in this subsection, the state treasurer shall pay each month, beginning with the second calendar month after the optional payment commencement event contained in the resolution, from the amount designated as distribution base pursuant to section 42‑5029, subsection D, the amount determined under subsection B of this section to the district. Payments under this section shall continue for ten years after either the commencement or the completion of construction of the primary component of the multipurpose facilities, at the option of the district. until July 1, 2025.

B. The amount to be paid each month under subsection A of this section is one-half of the amount of state transaction privilege tax revenues received in the second preceding calendar month from all persons conducting business under any business classification under this article at a multipurpose facility site, or in the construction of a multipurpose facility, the public or district owned components of which cost at least two hundred million dollars to construct. In no event shall the amount to be paid each month under this section exceed the net new state transaction privilege tax revenues received from the multipurpose facility site as compared to the revenues received in the same month during the twelve months prior to the month in which the public vote pursuant to section 48‑4237 is held.

C. The primary component, as defined described in section 48‑4201, shall be constructed during the first phase of the project.

D. To qualify for payments under this section, the municipality in which the multipurpose facility site is located must either obtain voter approval for a local transaction privilege tax to pay costs associated with a multipurpose facility, or make a financial commitment by intergovernmental agreement between the municipality and the district to make direct payments to the district from any lawful source, including municipal transaction privilege tax taxes or to expend monies for land, infrastructure or other improvements directly related to the multipurpose facility or the multipurpose facility site, by the end of the ten year period date referred to in subsection A of this section in an aggregate amount equal to the amount received by the district pursuant to this section.

E. If the municipality in which the multipurpose facility site is located fails to satisfy the obligations of the municipality pursuant to subsection D of this section, then beginning six months after the end of the ten year period date referred to in subsection A of this section, distributions otherwise payable to the municipality pursuant to subsection C of section 42‑5029, subsection C shall be reduced by an amount equal to the excess of the amount received by the district pursuant to this section over the amount paid or expended by the municipality. The amount of the reduction shall be distributed to the district to satisfy the financial commitment of the municipality pursuant to subsection D of this section.

F. To comply with the requirements of this section, the county stadium district board of directors of or any city or town that is part of the county stadium district shall supply the department with all requested information necessary to administer this section. END_STATUTE

Sec. 2. Section 48-4201, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4201. Definitions

In this chapter, unless the context otherwise requires:

1. "Board" means the board of directors of a any district established under section 48-4202, subsection A or B.

2. "Bond" means any obligation authorized and issued pursuant to this chapter, including bonds, lease-purchase and installment purchase agreements, certificates of participation in a lease-purchase or installment purchase agreement and obligations that are authorized and issued to refund or refinance obligations that are authorized and issued pursuant to this chapter.

3. "District" means a any county stadium district established pursuant to this article section 48-4202, subsection A or B.

4. "Multipurpose facility" means any facility or facilities that include:

(a) A primary component that is located in the district on the multipurpose facility site and on lands that are adjacent to each other or separated by public rights-of-way, that the district owns or leases and that is used to accommodate sporting, events and entertainment, cultural, civic, meeting, trade show or convention events or activities, fire, police or other public safety facilities and tourism offices. The primary component may not include any structure or part of a structure that is used or designed for use as a COUNTY, city or town hall, as meeting space for the COUNTY, city or town governing body or for general municipal administrative office space other than for the administration, maintenance and operation of the multipurpose facility.

(b) Secondary components that are located in the district and that the board determines are necessary or beneficial to the primary component, limited to on-site infrastructure, artistic components, parking garages and lots, and public parks and plazas. In addition, secondary components may include related commercial facilities that are located within the multipurpose facility site.

5. "Multipurpose facility site" means the geographic area within the district which is depicted in the publicity pamphlet for an election held pursuant to section 48‑4237.

6. "Municipality" means a city or town that is incorporated or chartered under the constitution and laws of this state.

7. "Stadium" means a sports facility or facilities located in the district and designed to accommodate, but not be limited to, major league baseball events. END_STATUTE

Sec. 3. Section 48-4202, Arizona Revised Statutes, is amended to read:

END_STATUTE48-4202. Formation of district

A. The board of supervisors of each county having a population of more than one million five hundred thousand persons according to the most recent United States decennial census or any county in which a major league baseball organization has established or seeks to establish a spring training operation may organize a countywide district to include both the incorporated and unincorporated areas of the county, if the board determines that the public convenience, necessity or welfare will be promoted by establishing the district.

B. Two or more municipalities in the same county may organize a district for multipurpose facilities if the governing bodies of the municipalities determine that the public convenience, necessity or welfare will be promoted by establishing the district. The district shall be comprised of the areas within the corporate boundaries of the municipalities. After formation, the boundaries of the district shall not be altered. A district may be established under this subsection in the same county in which a district is established under subsection A of this section. A district formed pursuant to this subsection shall be deemed a county stadium district for purposes of this chapter. Notwithstanding any other law, a district may not be organized under this subsection from and after October 31, 1999, except that a district may be organized under this subsection after October 31, 1999 if before that date the governing body of two or more of the municipalities identified the location of a multipurpose facility site and has voted with the purpose of forming a district for multipurpose facilities under this subsection.

C. The county board of supervisors shall be the board of directors of a countywide district established under subsection A of this section. The board of directors of a district established under subsection B of this section shall consist of two members appointed for a definite term by the governing body of each municipality but may not include officers or employees of the municipality, and if the district enters into an intergovernmental agreement pursuant to section 48‑4203 with an Indian tribe or community, the board of directors shall include two members appointed by the Indian tribe or community. The directors are not eligible for compensation for their services but are eligible for reimbursement for their necessary expenses in attending to and traveling on district business.

D. The board of supervisors may pay the necessary costs incurred in connection with establishing a countywide district from any county monies available for that purpose. The municipalities may pay their proportionate share of the necessary costs incurred in establishing a district formed by two or more municipalities under subsection B of this section from any monies available for that purpose.

E. Subject to limitations imposed by intergovernmental agreement and the ordinance or resolution authorizing the formation of the district, the district is a tax levying public improvement district and a political taxing subdivision of this state and has all the powers, privileges and immunities granted generally to municipal corporations for the purposes of implementing this chapter, including eminent domain, as provided by section 48-4203, subsection A, paragraph 7, and immunity of its property, bonds and interest on and transfer of its bonds from taxation. START_STATUTE

Sec. 4. Section 48-4203, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4203. Powers and duties of board of directors; conflict of interest

A. The board of directors, on behalf of the district, may:

1. Adopt and use a corporate seal.

2. Sue and be sued.

3. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter. The district may contract with a county sports authority established under title 11, chapter 5 to carry out any power of the district.

4. Adopt administrative rules as necessary to administer and operate the district and any property under its jurisdiction.

5. Adopt rules that allow weighted voting by board members and establish conditions for terminating the district.

6. Employ an executive director and administrative and clerical employees, or contract for other management personnel, and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the district.

7. Acquire by any lawful means, including eminent domain consistent with section 48‑4206, and operate, maintain, encumber and dispose of real and personal property and interests in property. A district established under section 48-4202, subsection A may acquire real property by eminent domain. A district established under section 48-4202, subsection B shall not acquire real property by eminent domain.

8. Administer trusts declared or established for the district, receive and hold in trust or otherwise property located in or out of this state and, if not otherwise provided, dispose of the property for the benefit of the district.

9. Retain legal counsel and other consultants as necessary to carry out the purposes of the district.

B. The board of directors, on behalf of a district established pursuant to section 48-4202, subsection B, may:

10. 1. Use revenues paid to the district pursuant to section 42‑5031 and other revenues the district may receive from other sources, for the purposes set forth in section 48‑4204, subsection B.

11. 2. Enter into agreements with developers, contractors, tenants and other users of all or part of a multipurpose facility as determined appropriate.

12. 3. Pledge all or part of the revenues described in section 42‑5031, subsection B, to secure the district's bonds or other financial obligations issued or incurred under this chapter for the construction of all or part of a multipurpose facility.

B. C. The board of directors shall:

1. Appoint from among its members a chairman, a secretary and such other officers as may be necessary to conduct its business. The board of directors may appoint the chief financial officer of the county as the district treasurer of a countywide district established under section 48‑4202, subsection A. If the board does not appoint the chief financial officer, the county treasurer is designated ex officio as the treasurer. The board of directors of a district that is established pursuant to section 48‑4202, subsection B shall designate ex officio an officer of one of the municipalities as treasurer of the district.

2. Keep and maintain a complete and accurate record of all its proceedings. All proceedings and records of the board shall be open to the public as required by title 38, chapter 3, article 3.1 and title 39, chapter 1.

Sec. 5. Section 48-4204, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4204. Constructing and operating a stadium and other structures; regulating alcoholic beverages

A. From the taxes and surcharges levied pursuant to article 2 of this chapter for use with respect to major league baseball spring training, the district may acquire land and construct, finance, furnish, maintain, improve, operate, market and promote the use of existing or proposed major league baseball spring training facilities or stadiums and other structures, utilities, roads, parking areas or buildings necessary for full use of the training facilities or stadiums for sports and other purposes and do all things necessary or convenient to accomplish those purposes. The board shall require that any project undertaken by the district include financial participation from the county or municipality in which the project is located, from a private party or from any combination of these entities which equals or exceeds one-half of the amount to be expended or distributed by the district. Capital improvement funds expended at any time after June 1, 1991 by a county, municipality or private party for a purpose authorized by this section may be deemed financial participation with respect to any project the district may undertake.

B. From the taxes and charges levied or identified pursuant to section 48‑4237 for use with respect to multipurpose facilities and from other monies lawfully available to the district, the district may acquire land, including by eminent domain consistent with the requirements of section 48‑4206, and construct, finance, furnish, maintain, improve, operate, market and promote the use of multipurpose facilities and other structures, utilities, roads, parking areas or buildings necessary for full use of the multipurpose facilities and do all things necessary or convenient to accomplish those purposes. Public funds identified in section 48‑4237, including funds distributed pursuant to section 42‑5031, may only be used for the components for a multipurpose facility which are owned by the district or which are publicly owned.

C. Title 34 applies to the district, except that regardless of the funding source for design and construction of facilities and structures the district may establish alternative systems and procedures, including the use of the design-build method of construction or the use of qualifications-based selection of contractors with experience in stadium design or construction, to expedite the design and construction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement. For the purposes of this subsection:

1. "Design-build" means a process of entering into and managing a contract between the district and another party in which the other party agrees to both design and build a structure, a facility or other items specified in the contract.

2. "Qualifications-based selection" means a process of entering into and managing a contract between the district and another party in which the other party is selected by the district on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the district is authorized to construct or lease. The other party may be selected by direct selection or by public competition.

D. For purposes of financing, designing, constructing or operating facilities or structures, the district is not the agent of any municipality participating in the funding of such facilities or structures.

E. Subject to the requirements of title 4, the board of directors may permit and regulate the sale, use and consumption of alcoholic beverages at events held on property acquired, leased or subleased under this article.END_STATUTE

Sec. 6. Repeal

Section 48-4206, Arizona Revised Statutes, is repealed.

Sec. 7. Section 48-4234, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4234. Car rental surcharge for major league spring training; rate; administration; credit; definition

A. If the board of directors of a district established pursuant to section 48-4202, subsection A determines that it is necessary in order to retain, attract or relocate a major league baseball spring training operation, the board may levy and, if levied, the department of revenue shall collect a car rental surcharge pursuant to subsection B of this section in addition to or in lieu of other revenues collected pursuant to this article to be used and expended for the purposes set forth in section 48‑4204, subsection A. The surcharge is effective and shall be collected beginning January 1 or July 1, whichever date first occurs at least three months after the board approves the surcharge.

B. The board shall set the car rental surcharge as follows:

1. Except as provided in paragraph 2, at a rate not to exceed two dollars fifty cents on each lease or rental of a motor vehicle licensed for hire for less than one year and designed to carry fewer than fifteen passengers regardless of whether such vehicle is licensed in this state.

2. In a county with a population of more than five hundred thousand but less than two million persons, according to the most recent United States decennial census, the board shall set the surcharge at a rate not to exceed three dollars fifty cents on each lease or rental of a motor vehicle licensed for hire for less than one year and designed to carry fewer than fifteen passengers regardless of whether the vehicle is licensed in this state.

C. The surcharge is not taxable under section 42‑5071.

D. The surcharge does not apply to the lease or rental of a motor vehicle to an automobile dealership, a repair facility, an insurance company or any other person that provides that vehicle at no charge to a person whose own motor vehicle is being repaired, adjusted or serviced.

E. The surcharge applies throughout the district, but if a business demonstrates that it is subject to a surcharge imposed by the voters under section 5‑839, the business is entitled to a credit against the surcharge imposed pursuant to this section equal to the amount of the surcharge paid pursuant to section 5‑839, except that the credit shall not exceed the amount of the surcharge imposed pursuant to this section.

F. Unless the context otherwise requires, section 42‑6102 governs the administration of a surcharge imposed under this section which shall be reported on a form prescribed by the department of revenue.

G. Each month the state treasurer shall remit to the district treasurer the net revenues collected under this section during the preceding month. The district treasurer shall deposit the monies in the county stadium district fund.

H. The board of directors may pledge all or part of the surcharge levied under this section to secure district bonds or financial obligations under this chapter. The surcharge shall not be terminated until all bonds, obligations and associated payments that are secured by the surcharge are fully met and discharged.

I. For the purposes of this section, "motor vehicle" means a self‑propelled vehicle that is operated on the streets and highways of this state, that is primarily intended to carry passengers and that is licensed for hire in the district without a driver. END_STATUTE

Sec. 8. Section 48-4236, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4236. Transaction privilege tax; spring training; rate; administration

A. If the board of directors of a district established pursuant to section 48-4202, subsection A in a county with a population of less than one million five hundred thousand persons, according to the most recent United States decennial census, determines that it is necessary in order to retain, attract or relocate a major league baseball spring training operation, the board may by resolution order that a question seeking authority for the district to levy a transaction privilege tax be placed on the ballot of an election pursuant to this section, in addition to or in lieu of other revenues collected pursuant to this article to be used and expended for the purposes set forth in section 48‑4204, subsection A. If a majority of the qualified electors voting at the election approves the county stadium district transaction privilege tax, the board may by resolution levy and, if levied, the department of revenue shall collect a transaction privilege tax pursuant to this section to be used and expended for the purposes set forth in section 48‑4204, subsection A. The board of directors may pledge all or part of the tax levied under this section to secure the district's bonds or other financial obligations issued or incurred under this chapter.

B. If approved at an election pursuant to this section, the district board of directors may levy a transaction privilege tax, for up to five years, at a rate of not more than two per cent of the tax rate prescribed by section 42‑5010, subsection A applying on January 1, 1990 to each person engaging or continuing in the district in a business taxed under title 42, chapter 5, article 1 or in the case of persons subject to the tax imposed under section 42‑5352, subsection A, at a rate of not more than .061 cents per gallon of jet fuel sold. The tax is effective and shall be collected beginning January 1 or July 1, whichever date first occurs at least three months after the board levies the tax.

C. Unless the context otherwise requires, section 42‑6102 governs the administration of a tax imposed under this section.

D. Each month the state treasurer shall remit to the district treasurer the net revenues collected under this section during the preceding month. The district treasurer shall deposit the monies in the county stadium district fund.

E. If the board of directors proposes such a tax levy, the board, by resolution, shall either order and call a district-wide special election or place the issue on the ballot of a regular general election held in the district. The board shall specify on the ballot the purpose of the tax, the rate of tax and the number of years for which the tax will be authorized. The rate of tax shall not exceed the limits prescribed by this section. To be valid the tax authorization must be approved by a majority of the qualified electors voting at the election.

F. In addition to other requirements prescribed by law, the board shall prepare, print and distribute publicity pamphlets concerning the tax issue proposed. The board shall distribute one copy of the publicity pamphlet at least ten but not more than thirty days before the election to each household in the district containing a registered voter. The publicity pamphlet shall contain all of the following:

1. The date of the election.

2. Polling places and the times the polling places will be open.

3. A true copy of the title and text of the resolution proposing the tax.

4. A summary of the purposes for which the tax is proposed to be levied.

5. The estimated revenue needs for the described purpose.

6. An estimate of the annual amount of revenues to be raised from the proposed tax.

7. Arguments for and against the proposed tax levy. END_STATUTE

Sec. 9. Section 48-4237, Arizona Revised Statutes, is amended to read:

START_STATUTE48-4237. Transaction privilege tax; multipurpose facilities; rate; administration

A. The board of directors of a district established pursuant to section 48-4202, subsection B by resolution may seek authority for the district to levy a transaction privilege tax for multipurpose facilities or other taxes or charges pursuant to subsection F E of this section, in addition to or in lieu of other revenues collected pursuant to this article, to be used and spent for the purposes described in section 48‑4204, subsection B for the multipurpose facilities.

B. A countywide district shall present the question to the county board of supervisors. If the board of supervisors authorizes an election, and if a majority of the qualified electors voting at the election approves the multipurpose facilities district transaction privilege tax, the board by resolution may levy and, if levied, the department of revenue shall collect a transaction privilege tax pursuant to this section to be used and spent for the purposes described in section 48‑4204, subsection B for the multipurpose facilities.

C. B. The board of directors of a district that is established pursuant to section 48‑4202, subsection B and that is formed by two or more municipalities shall present the question to the governing bodies of the participating municipalities. A district that is established pursuant to section 48‑4202, subsection B The district is exempt from section 16‑226. The governing body of each municipality by resolution may approve the district's request to place a question seeking authority for the district to levy a multipurpose facilities district transaction privilege tax solely within the district, or to impose other taxes or charges pursuant to subsection F E of this section on the ballot of an election pursuant to this section held on the same date or on the same ballot as the regularly scheduled election of one or more of the participating municipalities or the state or on any of the four dates prescribed by section 16‑204. If the governing body of each municipality approves the district's request for an election, and if a majority of the qualified electors from each municipality voting at the election approves the multipurpose facilities district transaction privilege tax or other taxes or charges pursuant to subsection F E of this section, the board by resolution may levy and, if levied, the department of revenue shall collect a transaction privilege tax solely within the district pursuant to this section or other taxes or charges pursuant to subsection F E of this section to be used and spent for the purposes described in section 48‑4204, subsection B for the multipurpose facilities. If a question fails to receive a majority approval among the voters in one municipality, but receives a majority approval among the voters in at least two other municipalities, the governing bodies of the approving municipalities, by majority vote of each governing body, may elect to form a new district and authorize the district to levy the tax solely within the boundaries of the new district subject to the conditions authorized by the voters in the election.

D. C. The board shall state on the ballot the purpose of the tax, the maximum rate of the tax and the maximum number of years for which the tax will be authorized. The tax shall terminate upon the expiration of the years authorized or the completion of the purpose specified in the ballot, whichever is earlier. The rate of tax shall not exceed the limits prescribed by this section. The ballot question may propose to authorize the district to levy and collect taxes and charges pursuant to subsection F E of this section.

E. D. The board shall set the rate of the tax at not more than five per cent of the transaction privilege tax rate prescribed by section 42‑5010, subsection A applying on January 1, 1990 to each person engaging or continuing in the district in a business taxed under title 42, chapter 5, article 1, or in the case of persons subject to the tax imposed under section 42‑5352, subsection A, at a rate of not more than .1525 cents per gallon of jet fuel sold.

F. E. If authorized by an election held pursuant to this section, the board may:

1. Pledge all or part of the revenues from a tax under this section to secure the district's bonds or other financial obligations issued or incurred under this chapter for the multipurpose facilities.

2. Pledge all or part of the incremental increase in the municipal transaction privilege taxes generated in all or a designated geographic area of the district during a period of time before, during and after any specified national championship sporting event or international games hosted in the multipurpose facilities to secure the district's bonds or other financial obligations issued or incurred under this chapter for the construction of the multipurpose facilities.

3. Impose a surcharge pursuant to the procedures and limits of section 48‑4234 in all or a designated geographic area of the district during a period of time before, during and after any specified national championship sporting event or international games hosted in the multipurpose facilities except that a car rental surcharge imposed pursuant to this paragraph shall not apply to the lease or rental of a motor vehicle as a replacement vehicle owned by the lessee for personal use. For the purposes of this paragraph, "replacement vehicle" means a vehicle loaned by a motor vehicle repair facility or dealer, or that an individual rents temporarily, to use while a vehicle owned by the individual is not in use because of breakdown, repair, service, damage, or loss as defined in the individual's applicable private passenger automobile insurance policy.

4. Levy and, if levied, the department of revenue shall collect a tax at a rate of not to exceed one per cent of the gross proceeds of sales or gross income from the business of every person engaging or continuing in the district in a business taxed under sections 42‑5070 and 42‑5074 during a period of time before, during and after any specified national championship sporting event or international games hosted in the multipurpose facilities to secure the district's bonds or other financial obligations issued or incurred under this chapter for the construction of the multipurpose facilities.

5. Use amounts paid to the district pursuant to section 42‑5031 and received from the multipurpose facility site the boundaries or boundary amendment of which are described in the publicity pamphlet as allowed by law, including securing the district's bonds or other financial obligations issued or incurred under this chapter for the construction of the multipurpose facilities which are owned by the district or which are publicly owned.

G. F. Unless the context otherwise requires, section 42‑6102 governs the administration of any tax imposed under this section.

H. G. Each month the state treasurer shall remit to the district treasurer the net revenues collected under this section during the second preceding month. The district treasurer shall deposit the monies in the stadium district fund. Revenues from a tax under this section shall not be commingled with revenues collected pursuant to this article for any other purpose but shall be separately accounted for and used solely with respect to uses authorized in section 48‑4204, subsection B.

I. H. In addition to other requirements prescribed by law, the board shall prepare, print and distribute publicity pamphlets concerning the proposed tax issue to be submitted to the voters. The board shall distribute one copy of the publicity pamphlet at least ten but not more than thirty days before the election to each household containing a registered voter in the district. The publicity pamphlet shall contain all of the following:

1. The date of the election.

2. The location of the polling places and the times the polling places will be open.

3. A true copy of the title and text of the resolution proposing the tax.

4. A summary of the purposes for which the tax is proposed to be levied and a description of the multipurpose facilities.

5. The estimated cost of the multipurpose facility to be financed.

6. An estimate of the annual amount of revenues to be raised from the proposed tax.

7. The geographic area, time period and amount of any tax, tax distribution, or surcharge proposed under subsection F E of this section.END_STATUTE