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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: COM DPA 8-0-0-2 |
HB 2873: tourism improvement areas; municipalities; counties
Sponsor: Representative Wilmeth, LD 2
House Engrossed
Overview
Enables a governing body to approve the formation of a tourism improvement area.
History
Special taxing districts are usually created to fill a need and to enable the provision of services in an area that might otherwise be limited from receiving those services for various reasons, including size, location, financial limitations or unavailability of other government support. The formation of a special taxing district creates a funding stream to pay for the desired or needed services by placing the responsibility on those who benefit from that service.
Title 48 of the Arizona Revised Statutes currently allows and outlines the process for the formation of various types of special taxing districts including fire districts, irrigation districts, hospital districts, pest abatement districts and power districts. Although the specific process depends on the type of district created, the formation in many cases requires the submission of petitions to the county board of supervisors followed by a public hearing. Sometimes an election may be required to form a district.
Provisions
Tourism Improvement Area
1. Authorizes a governing body, on presentation of a petition, to approve the formation of a tourism improvement area. (Sec. 1)
2. Delineates information that a petition for the formation of the tourism improvement area must include. (Sec. 1)
3. Allows a lodging business owner to appoint an authorized agent to act as the lodging business owner's representative. (Sec. 1)
4. Deems the lodging business owner's representative as the business owner for the purposes of any required signature. (Sec. 1)
5. Asserts a governing body has no obligation to obtain other information as to the ownership of the lodging business and its determination of ownership is final and conclusive. (Sec. 1)
Tourism Improvement Area Plan
6. Requires a tourism improvement area plan be prepared before the required public hearing on the proposed tourism improvement area is held. (Sec. 1)
7. Outlines information that must be included in the tourism improvement area plan. (Sec. 1)
8. Asserts lodging business assessments levied will provide benefits to lodging businesses and associated industries located within the tourism improvement area that are subject to the assessment. (Sec. 1)
9. Specifies that lodging business assessments may vary by types or classes of lodging businesses as described in the tourism improvement area plan. (Sec. 1)
10. Allows the lodging business assessment to be levied based on:
a) a fixed amount;
b) rate per transaction;
c) fixed rate per transaction per day;
d) percentage of sales; or
e) any combination of such methods. (Sec. 1)
11. Outlines stipulations for contesting the validity of a lodging business assessment. (Sec. 1)
12. Requires tourism improvement area activities be designed to promote tourism and lodging to enhance the economic development climate in the improvement area. (Sec. 1)
Tourism Improvement Area Formation
13. Authorizes a governing body, upon receipt of a valid petition, to adopt a resolution of intention to consider the formation of a tourism improvement area. (Sec. 1)
14. Outlines information which must be included in the resolution of intention, including the date, time and place of a public hearing to consider the petition for formation of a tourism improvement area. (Sec. 1)
15. Provides requirements for noticing the public hearing provided the adoption of a resolution. (Sec. 1)
16. Instructs the governing body to conduct the public hearing at least 30 days after mailing the notice to all lodging business owners identified in the notice. (Sec. 1)
17. Requires the governing body to consider public testimony regarding a proposed tourism improvement area. (Sec. 1)
18. Allows an assessed lodging business to submit a written objection to the governing body prior to the conclusion of the public hearing (Sec. 1)
19. Stipulates for written objections received from lodging business owners representing 50% or more of the total rooms within the proposed tourism improvement area:
a) the public hearing must end; and
b) no further proceedings on the formation of the tourism improvement area may be held for a period of one year after the date of the hearing. (Sec. 1)
20. Prohibits the governing body of a municipality from forming a proposed tourism improvement area in an unincorporated territory of a county without consent from the county board of supervisors. (Sec. 1)
21. Prohibits a governing body or board of supervisors from forming a tourism improvement area within territorial jurisdiction of another municipality or county without consent of the governing body or board of supervisors of that area. (Sec. 1)
22. Limits the initial term and subsequent renewals of the tourism improvement area to 10 years. (Sec. 1)
23. Requires any lodging business subject to lodging business assessment commencing operations during the term of a tourism improvement area be subject to the lodging business assessment. (Sec. 1)
Tourism Improvement Area Management
24. Requires an owners' board or their authorized representatives to govern the tourism improvement area and permits the representative of a municipality or county to have a nonvoting, ex officio seat on the governing board. (Sec. 1)
25. Instructs the governing body to contract with its destination marketing organization (DMO) to manage and implement the tourism improvement area activities. (Sec. 1)
26. Asserts the DMO managing the tourism improvement area includes any powers possessed by a nonprofit corporation, including accepting donations and receiving grants. (Sec. 1)
27. Prescribes reporting requirements for the DMO managing the tourism improvement area. (Sec. 1)
Tourism Improvement Area Plan Amendments
28. Allows a governing body to amend the tourism improvement area plan on written request of the DMO managing the tourism improvement area. (Sec. 1)
29. Instructs a governing body, for tourism improvement area plan amendments that include a new or increase lodging assessment, to hold a public hearing on the amendment and provide a meeting notice to the owner of each lodging business subject to the lodging business assessment. (Sec. 1)
30. Stipulates the governing body must hold a public hearing on the amendment if the amendment does not include a new or increased assessment. (Sec. 1)
Lodging Business Assessments
31. Requires the DMO managing the tourism improvement area to establish, charge and collect lodging business assessments on the lodging businesses located in the tourism improvement area. (Sec. 1)
32. Limits the assessments to $5 or 5% per room sold per night on the lodging business rooms in the tourism improvement area and allows the assessment rate to be tiered based on the annual average daily room rate for the affected lodging business. (Sec. 1)
33. Outlines the process for the lodging business owner in levying the assessments and paying the assessments to the Department of Revenue (DOR). (Sec. 1)
34. Instructs DOR to report the amount of assessments collected to the State Treasurer. (Sec. 1)
35. Instructs the State Treasurer to transmit monthly the amount collected from lodging business assessments within the tourism improvement area to the treasurer or officer exercising the functions of treasurer of the municipality or county where the tourism improvement area is located. (Sec. 1)
36. Requires the DMO managing the tourism improvement area and the participating governing body to report the amount of the lodging business assessment to DOR and to supply DOR and the State Treasurer any requested information. (Sec. 1)
37. Requires DOR and the participating governing body to enter into an intergovernmental agreement that provides for DOR to be reimbursed for its expenses in administering the lodging business assessment from the proceeds of that assessment. (Sec. 1)
Tourism Improvement Area Renewal and Dissolution
38. Allows a tourism improvement area to be renewed and engage in different tourism improvement activities than the original tourism improvement area. (Sec. 1)
39. Specifies any remaining monies held by the tourism improvement area be transferred to the renewed tourism improvement area. (Sec. 1)
40. Stipulates a 30-day period each year in which the lodging business owners may request dissolution of the tourism improvement area. (Sec. 1)
41. Outlines the process for tourism improvement area dissolution, including petition submission and holding a public hearing. (Sec. 1)
42. Allows the governing body to adopt a resolution dissolving the tourism improvement area upon the area satisfying all debts of the tourism improvement area. (Sec. 1)
43. Stipulates the governing body may dissolve the tourism improvement area upon finding that there has been misappropriation of monies, malfeasance or a violation of law in connection with the management of the tourism improvement area. (Sec. 1)
44. Requires the resolution dissolving the tourism improvement area to:
a) state the reason for the dissolution;
b) state the time and date of the public hearing; and
c) contain a proposal to dispose of any assets acquired with the monies of the lodging business assessments levied within the tourism improvement area. (Sec. 1)
45. Provides notice and public hearing requirements relating to the dissolution. (Sec. 1)
46. Requires, on the dissolution or expiration without renewal, remaining monies of the tourism improvement area to the spent in accordance with the area plan or refunded to the appropriate lodging business owners. (Sec. 1)
47. Stipulates monies must be refunded using the same method and basis that was used to calculate the assessments levied in the fiscal year in which the tourism improvement area is dissolved or expires. (Sec. 1)
Miscellaneous
48. Defines pertinent terms. (Sec. 1)
49. Contain a legislative findings clause. (Sec. 2)
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53. HB 2873
54. Initials PB Page 0 House Engrossed
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