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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: RED DP 7-0-0-0 |
HB 2950: tourism improvement areas; municipalities; counties
Sponsor: Representative Wilmeth, LD 2
Caucus & COW
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, serving on a board or other purposes authorized by the owner. (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 must 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. Specifies the lodging business assessment may be levied based on:
a. a fixed rate per transient lodging transaction per day; or
b. the percentage of transient lodging sales. (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 that must be included in the resolution of intention. (Sec. 1)
15. Provides requirements for noticing and conducting the public hearing relating to the resolution of intention. (Sec. 1)
16. Requires the governing body to consider public testimony regarding a proposed tourism improvement area. (Sec. 1)
17. Allows a lodging business to submit a written objection to the governing body prior to the conclusion of the public hearing. (Sec. 1)
18. Stipulates on receiving written objections 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)
19. Provides restrictions relating to forming a proposed tourism improvement area in an unincorporated territory or within the territorial jurisdiction of another municipality or county without consent. (Sec. 1)
20. Limits the initial term and subsequent renewals of the tourism improvement area to 10 years. (Sec. 1)
21. Subjects a lodging business that commences operation during the term of the tourism improvement area to the lodging business assessment. (Sec. 1)
Tourism Improvement Area Management
22. 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)
23. Instructs the governing body to contract with its destination marketing organization (DMO) to manage and implement the tourism improvement area activities. (Sec. 1)
24. Asserts the DMO has any powers possessed by a nonprofit corporation, including accepting donations and receiving grants. (Sec. 1)
25. Prescribes reporting requirements for the DMO. (Sec. 1)
Tourism Improvement Area Plan Amendments
26. Allows a governing body to amend the tourism improvement area plan on written request of the DMO. (Sec. 1)
27. 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)
28. Stipulates a public hearing is not required if the amendment does not include a new or increased assessment. (Sec. 1)
29. Restricts amendments from including any changes to the tourism improvement area's boundaries. (Sec. 1)
Lodging Business Assessments
30. Requires the DMO to establish, charge and collect lodging business assessments on the lodging businesses located in the tourism improvement area. (Sec. 1)
31. Limits the assessments to $5 or 5% per room sold per night on the lodging business rooms in the tourism improvement area. (Sec. 1)
32. Outlines the process and requirements for levying, collecting and disbursing the assessments from lodging businesses to the local government's treasurer where the tourism improvement area is located. (Sec. 1)
33. Provides reporting requirements relating to the amount of the assessments collected. (Sec. 1)
34. Specifies the statutory provisions relating to transaction privilege taxes govern the administration of levying the assessment with exceptions. (Sec. 1)
Tourism Improvement Area Renewal and Dissolution
35. Allows a tourism improvement area to be renewed and engage in different tourism improvement activities than the original tourism improvement area. (Sec. 1)
36. Specifies any remaining monies held by the tourism improvement area be transferred to the renewed tourism improvement area. (Sec. 1)
37. Stipulates a 60-day period each year in which the lodging business owners may request dissolution of the tourism improvement area. (Sec. 1)
38. Outlines the process and requirements for tourism improvement area dissolution, including petition submission and holding a public hearing. (Sec. 1)
39. Allows the governing body to adopt a resolution dissolving the tourism improvement area upon:
a. the area satisfying all debts of the tourism improvement area; or
b. 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)
40. 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)
41. 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
42. Defines pertinent terms. (Sec. 1)
43. Contains a legislative findings clause. (Sec. 2)
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47. Initials PB HB 2950
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