Bill Text: AZ HB2456 | 2018 | Fifty-third Legislature 2nd Regular | Chaptered
Bill Title: Stadium district; extension; Rio Nuevo
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2018-04-05 - Chapter 138 [HB2456 Detail]
Download: Arizona-2018-HB2456-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-third Legislature Second Regular Session 2018
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CHAPTER 138
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HOUSE BILL 2456 |
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AN ACT
Amending sections 42-5031, 48-4202, 48-4203 and 48-4204, Arizona Revised Statutes; relating to county stadium districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5031, Arizona Revised Statutes, is amended to read:
42-5031. Distribution of multipurpose facility revenues to district
A. Subject to the requirements of subsection D of this section, if a county stadium district is authorized by an election pursuant to section 48‑4237, subsection 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 until July 1, 2025 2035 or until the date all authorized debt service payments are completed as provided by section 48-4203, subsection B, paragraph 3, whichever date is earlier later.
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 before the month in which the public vote pursuant to section 48‑4237 is held. The amount paid to the district shall not exceed the amount required to service the debts and obligations of the district and to meet the purposes set forth in section 48-4204, subsection B.
C. The primary component, as 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 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 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 date referred to in subsection A of this section, distributions otherwise payable to the municipality pursuant to 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 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.
Sec. 2. Section 48-4202, Arizona Revised Statutes, is amended to read:
48-4202. Formation of district; termination
A. The board of supervisors of each county having a population of more than one million five hundred thousand persons 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 composed 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 the 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 board of supervisors of any county in which a state supported university is established may organize a single university athletic facilities district if the board determines that the public convenience, necessity or welfare will be promoted by establishing the district. The district shall include only the area in the county within the contiguous exterior boundaries of real property owned by the Arizona board of regents and shall exclude any such real property subject to an existing ground lease or subject to an existing agreement granting a third party the right or option to a ground lease. After formation, the boundaries of the district shall be altered only as the Arizona board of regents acquires and disposes of real property. 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 is deemed a county stadium district for the purposes of this chapter.
D. The county board of supervisors shall be the board of directors of a countywide district established under subsection A of this section.
E. The board of directors of a district established under subsection B of this section shall consist of persons who are residents of the county in which the district is located, at least four of whom must reside in the municipality in which the district is located and who are appointed as follows:
1. Five members who are appointed by the governor, each of whom must have experience in commercial real estate, construction, redevelopment, real estate law, architecture, economic development or commercial or public finance. The governor may receive nominations for appointment from any interested organization or person. Members appointed by the governor serve at the pleasure of the governor.
2. Two members who are appointed by the president of the senate. The members appointed by the president serve at the pleasure of the president.
3. Two members who are appointed by the speaker of the house of representatives. The members appointed by the speaker serve at the pleasure of the speaker.
F. The board of directors of a district established under subsection C of this section shall be established pursuant to an intergovernmental agreement between the county and the Arizona board of regents.
G. The directors of any district 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.
H. 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. The Arizona board of regents may pay the necessary costs incurred in connection with establishing a district under subsection C of this section from any monies available for that purpose.
I. Subject to limitations imposed by this chapter, by intergovernmental agreement and by 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.
J. Notwithstanding any other law, on the termination of a district established under subsection B of this section, the board of directors shall dispose of the district's real property and improvements as follows:
1. If the district leases property to a single lessee, the lessee has the first right to acquire title to the property at its appraised value. The board shall transmit all proceeds from the transaction to the state treasurer for deposit in the public safety personnel retirement fund established pursuant to title 38, chapter 5, article 4 for the purpose of paying the unfunded accrued liability under the public safety personnel retirement system.
2. If the district leases property to multiple lessees, each lessee has the right to offer a bid to purchase the entire property at fair market value, and the board shall accept the bid that will transfer and terminate the district's title to the property. The board shall transmit all proceeds from the transaction to the state treasurer for deposit in the public safety personnel retirement fund established pursuant to title 38, chapter 5, article 4 for the purpose of paying the unfunded accrued liability under the public safety personnel retirement system.
3. If the property is not conveyed pursuant to paragraph 1 or 2 of this subsection within six months after the board of directors offers it for disposal, but not later than the termination of the district, whichever occurs first, the property escheats to the state land trust for the benefit of the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona, and section 37-521.
Sec. 3. Section 48-4203, Arizona Revised Statutes, is amended to read:
48-4203. Powers and duties of board of directors; report; 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 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. A district established under section 48‑4202, subsection C shall not acquire or own real property or interests in real property.
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:
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.
2. Enter into agreements with developers, contractors, tenants and other users of all or part of a multipurpose facility as determined appropriate.
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.
C. The board of directors of a district established pursuant to section 48‑4202, subsection B shall provide public outreach and education on the purpose and activities of the district, including:
1. Presentations to the governing bodies of the municipalities in the county in which the district is located.
2. Presentations to community, civic and business organizations.
3. Printed or electronic materials that support the purposes of this subsection.
D. 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 a member of the board with financial management or accounting experience or a person with whom the board has contracted for financial management as treasurer of the district. The county treasurer is designated ex officio as the treasurer of a district that is established pursuant to section 48‑4202, subsection C.
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.
3. Provide for the use, maintenance and operation of the properties and interests controlled by the district.
E. The board of directors of a district that is established pursuant to section 48‑4202, subsection B shall:
1. Determine by agreement the distribution of revenues from operating and using the multipurpose facilities among the municipalities and any participating Indian tribe or community.
2. Report to the legislature by October 1 of each year regarding the activities, operations, revenues and expenditures of the district for the immediately preceding fiscal year. The board shall submit the annual report to the president of the senate and the speaker of the house of representatives and provide a copy of the report to the secretary of state. At the discretion of the chairpersons of the senate finance committee and the house of representatives ways and means committee, or their successor committees, the committees may hold separate or joint hearings to consider the annual report prepared by the district.
3. Present to the joint legislative committee on capital review each project for the construction or reconstruction of any facility, structure, infrastructure or other improvement to real property of any kind in an amount exceeding five hundred thousand dollars.
F. The directors, officers and employees of the district are subject to title 38, chapter 3, article 8 relating to conflicts of interest.
G. This state and political subdivisions of this state other than the district are not liable for any financial or other obligations of the district and the financial or other obligations do not constitute a debt or liability of this state or any political subdivision of this state, other than the district.
Sec. 4. Section 48-4204, Arizona Revised Statutes, is amended to read:
48-4204. 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 that 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 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 monies identified in section 48‑4237, including funds monies distributed pursuant to section 42‑5031, may only be used for the components for a multipurpose facility that are owned by the district or that are publicly owned or for the following purposes:
1. Debt service for bonds issued by the district before January 1, 2009 2025.
2. Contractual obligations incurred by the district before June 1, 2009 2025.
3. Fiduciary, reasonable legal and administrative expenses of the district.
4. The design and construction of the hotel and convention center located on the multipurpose facility site.
C. For the public funds monies identified in section 48‑4237, including funds monies distributed pursuant to section 42‑5031, and from which the district board has planned an expenditure of five hundred thousand dollars or more, the following apply:
1. Each district board member shall provide advance notice of the consideration of the expenditure by the board to the person who holds the office that is responsible for that board member's appointment.
2. The notice prescribed in paragraph 1 of this subsection must be provided by regular mail delivered to the office that is responsible for that board member's appointment and may be preceded by any other form of notice. The notice must be provided at least two weeks before the date of the meeting and must be posted to the district's website on the day the notice is mailed.
3. The notice prescribed in paragraph 1 of this subsection must be accompanied by the board member's written statement as to whether the board member has any financial interest in the subject of the proposed expenditure by the board. The board members' written statements may be provided in a single document that is prepared by the board's administrative personnel but must be signed by the board members and must be posted to the district's website with the notice prescribed in paragraph 1 of this subsection.
4. The district board may not artificially divide or fragment planned expenditures so as to circumvent the requirements of this subsection.
D. A district established pursuant to section 48‑4202, subsection B may not use monies distributed pursuant to section 42‑5031 for the salaries or compensation of any employee of the municipality in which the district is located.
E. Pursuant to an intergovernmental agreement with the Arizona board of regents, from the revenues collected from assessments pursuant to section 48‑4235 for use with respect to Arizona board of regents owned intercollegiate athletic facilities, the district may construct, reconstruct, finance, furnish, maintain and improve existing intercollegiate athletic facilities located on Arizona board of regents' property, including utilities, roads, parking areas or buildings necessary for full use of the athletic facilities.
F. 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 or reconstruction 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.
G. For the purposes of financing, designing, constructing, reconstructing or operating facilities or structures, the district is not the agent of any municipality, this state or any agency or instrumentality of this state participating in the funding of such facilities or structures.
H. 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.
APPROVED BY THE GOVERNOR APRIL 5, 2018.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 5, 2018.
