Bill Text: AZ HB2619 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: Sports authority district; tourism; board
Spectrum: Slight Partisan Bill (Democrat 5-3)
Status: (Introduced - Dead) 2015-02-19 - Referred to House RULES Committee [HB2619 Detail]
Download: Arizona-2015-HB2619-Introduced.html
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REFERENCE TITLE: sports authority district; tourism; board |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HB 2619 |
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Introduced by Representatives Leach, Andrade, Cardenas, Steele, Wheeler: Kern, Mitchell, Velasquez
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AN ACT
amending sections 5‑1101, 5‑1102, 5-1103 and 5‑1104, Arizona Revised Statutes; repealing sections 5‑1106 and 5-1107, Arizona Revised Statutes; amending sections 5-1133, 5-1134, 5-1135, 5-1136 and 5-1137, Arizona Revised Statutes; repealing section 5-1139, Arizona Revised Statutes; repealing title 5, chapter 9, article 3, Arizona Revised Statutes; repealing Laws 2009, chapter 122, section 4; amending laws 2010, chapter 117, section 18; relating to the sports authority district.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
The chapter heading of title 5, chapter 9, Arizona Revised Statutes, is changed from "SPORTS AUTHORITY DISTRICT" to "SPORTS AND TOURISM AUTHORITY DISTRICT".
Sec. 2. Section 5-1101, Arizona Revised Statutes, is amended to read:
5-1101. Definitions
In this chapter, unless the context otherwise requires:
1. "Advisory board" means the advisory board of the sports and tourism authority.
2. "Authority" means a sports and tourism authority established pursuant to this chapter.
3. "Authority board" means the governing board of the sports and tourism authority.
4. "Board of directors" means the county board of supervisors serving as the board of directors of the district.
5. "District" means a sports and tourism authority district established pursuant to this chapter.
6. "Multipurpose facility" means a stadium or a facility for youth and sports that is adapted for additional entertainment, cultural, civic, meeting, trade show or convention events, on-site infrastructure and related parking facilities and commercial activity within the facility.
7. "Stadium" means a facility intended primarily for use by one or more major league baseball spring training operations, including baseball stadiums, clubhouses, practice facilities, other related facilities, on-site infrastructure and related parking facilities and commercial activity within the facility.
8. 7. "Youth and sports" means recreational and amateur sporting related activities and competitions organized in the district.
Sec. 3. Section 5-1102, Arizona Revised Statutes, is amended to read:
5-1102. Formation of district; board of directors; duties
A. A sports and tourism authority district is established in each county having a population of more than five hundred thousand but less than two million persons. The boundaries of the district are the boundaries of the county.
B. The county board of supervisors shall serve as the board of directors of the district. The directors shall not receive compensation or reimbursement of expenses for their services as the board of directors.
C. The board of directors may call an election for the establishment of a sports and tourism authority district in the county as provided by section 5‑1103, subsection A.
D. The board of directors shall:
1. Appoint certain members of the governing board of the sports and tourism authority as provided by section 5‑1103, subsection D.
2. Approve a budget of the authority pursuant to section 5‑1131.
3. Approve the issuance of revenue bonds of the authority pursuant to article 3 of this chapter.
E. The district is a corporate and political body, separate and independent of this state or the county, and except as otherwise limited, modified or provided by this chapter, has all of the rights, powers and immunities of municipal corporations except to acquire real property by eminent domain. The board of directors and the district do not have the authority to levy or otherwise impose any tax or assessment, other than charges for the use of facilities owned or managed by the district. The qualified electors residing in the district may levy a tax for the fiscal needs of the authority as provided by this chapter, but the board of directors has no independent authority to impose a tax. Subject to that limitation, the district is considered to be a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona.
Sec. 4. Section 5-1103, Arizona Revised Statutes, is amended to read:
5-1103. Sports and tourism authority; establishment; authority board
A. The board of directors may call an election of the qualified electors of the district to authorize the establishment of a sports and tourism authority within and coterminous with the boundaries of the district. The election, if held, shall occur on one of the next eight general election dates held on the first Tuesday after the first Monday in November following the establishment of the district.
B. The election ballot shall include the following questions:
1. "Shall a sports and tourism authority be established in ____ county?".
2. "Shall the sports and tourism authority district be authorized to levy and collect taxes as provided by sections 5-1133 through 5‑1137, Arizona Revised Statutes, to be allocated as follows:
(a) Fifty percent of which shall be distributed to a duly recognized regional destination marketing organization for sponsoring market‑wide events and for marketing the destination.
(b) Twenty‑five percent of which shall be used for airport service retention and expansion to the destination.
(c) Twenty‑five percent of which shall be used to assist with operational expenses of county youth and amateur sports facilities?".
3. "Shall the sports authority district issue revenue bonds to finance the construction, renovation, expansion or repair of cactus league baseball stadiums, youth sports facilities and multipurpose facilities, to be paid exclusively from revenues of the authority?".
C. The board of directors shall order the establishment of the authority on the approval of all questions by a majority of the qualified electors voting on each issue in the election. If any question is disapproved, the authority shall not be established and further proceedings under this chapter shall be terminated.
D. Members of the authority board, who must reside in the district, shall be appointed within thirty days after the formation of the district as follows:
1. One member who is appointed by the board of directors and who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing hotel, motel and lodging businesses in the district.
2. One member who is appointed by the board of directors and who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing restaurant businesses in the district.
3. One member who is appointed by the board of directors and who is selected from a list of nominees submitted by the largest industry organization or trade association in this state specializing in on-sale and off-sale retail liquor distribution.
4. One member who is appointed by the board of directors, who represents youth and amateur sports in the district and who is selected from a list of nominees submitted by the largest youth or amateur sports organization in the district as measured by the size of its membership.
5. One member who is appointed by the governing body of the largest city in the district, as measured by population, and who is selected from a list of nominees submitted by the largest industry organization or trade association representing automobile rental businesses in the district.
6. One member who is appointed by the governing body of the largest city in the district, as measured by population, and who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing tourism businesses generally in the district.
7. One member who is appointed pursuant to subsection G of this section and who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing tourism businesses generally in the district.
8. One member who is appointed pursuant to subsection G of this section and who is selected from a list of nominees submitted by the largest chamber of commerce in the city making the appointment representing retail businesses generally in the district.
9. One member who is appointed pursuant to subsection G of this section and who has substantial knowledge and experience regarding major league baseball.
10. Two additional members who are appointed by the county board of supervisors, or by any city or town, that contributes at least twenty per cent of the cost of a project pursuant to section 5-1106, subsection C if the contribution has a value of at least fifteen million dollars. Members shall be appointed pursuant to this paragraph within thirty days after the execution of a binding agreement to make a qualifying contribution.
D. Members of the authority board, who must reside in the district, shall be appointed within thirty days after the formation of the district as follows:
1. Each member of the board of directors shall each appoint one member as follows:
(a) One member who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing hotel, motel and lodging businesses in the district.
(b) One member who is selected from a list of nominees submitted by the largest industry organization or trade association, as measured by its members' gross revenues, representing restaurant businesses in the district.
(c) One member who is selected from a list of nominees submitted by the largest industry organization or trade association representing automobile rental businesses in the district.
(d) One member who is selected from a list of nominees submitted by the largest chamber of commerce in the district representing retail businesses generally in the district.
(e) One member who is a representative of a duly recognized regional destination marketing organization in the district.
2. The county administrator shall appoint two members.
E. The appointing entities prescribed in subsection D of this section shall receive nominations for appointment to the authority board from specified commercial interests, and shall appoint the members from the nominees. The appointing entities shall make appointments to the authority board to provide broad geographic representation among the members. The initial members shall be appointed to terms of two, three and four years, chosen by lot. All subsequent members shall be appointed to terms of four years, except for interim appointments to fill unexpired terms. A member of the board may be removed on a two-thirds vote of all members. The removal is effective immediately.
F. A member of the authority board shall not hold any elected office while serving on the board. An authority board member who takes elective office, who files nominating petitions for elective office or who is appointed to an elective office is considered to have resigned from the authority board effective immediately.
G. The appointment of the authority board members pursuant to subsection D, paragraphs 7, 8 and 9 of this section shall be determined as follows:
1. The first appointment shall be made by the governing body of the second largest city in the district.
2. The second appointment shall be made by the governing body of the third largest city in the district.
3. Each subsequent appointment shall be made by the governing bodies of the next largest cities in the district in order of population, until governing bodies of all cities in the district have made an appointment.
4. Subsequent appointments shall repeat the sequence of appointments provided in paragraphs 1, 2 and 3 of this subsection.
5. For the purposes of this subsection, the population of cities and towns in the district shall be based on the population at the time of each appointment made by the second largest city in the district.
6. If there is a vacancy of a member of the authority board appointed pursuant to subsection D, paragraph 7, 8 or 9 of this section, the governing body that appointed the vacating member shall appoint a replacement for the remainder of the unexpired term.
Sec. 5. Section 5-1104, Arizona Revised Statutes, is amended to read:
5-1104. Sports and tourism authority plan; authority board powers and duties; advisory board
A. The authority board shall submit a plan for the operation of the sports and tourism authority, including proposals for the construction, renovation, expansion or repair of stadiums, multipurpose facilities and youth sports facilities as provided in this chapter. The authority board shall collaborate with the duly recognized regional destination marketing organization in the district and the county on the use of the monies distributed pursuant to this chapter. The duly recognized regional destination marketing organization and the county shall each submit a proposed annual plan and budget to the authority board for review and comment. The plan shall:
1. Be developed and submitted to the board of directors within ninety days after the appointment of the initial authority board.
2. Be finalized following public hearings and meetings held in the authority.
3. Specify the general purposes for which the monies of the authority, including tax revenues pursuant to sections 5-1133 through 5‑1137, will be spent during the first twenty years of the authority's operations.
B. In addition, the authority board, on behalf of the sports and tourism authority, shall:
1. Promote major league baseball spring training in the authority.
2. Acquire, construct, lease, finance, lease-purchase or otherwise obtain use of facilities for major league baseball spring training and related activities.
3. 1. Provide grants and assistance to political subdivisions of this state and to nonprofit corporations for the development and operations of sporting activities.
4. 2. Approve capital projects that are provided by the budget.
5. Issue revenue bonds pursuant to article 3 of this chapter.
6. 3. Appoint from among its members a chairperson, a secretary and such other officers as may be necessary to conduct its business.
7. 4. Employ an executive director and prescribe the terms and conditions of employment.
8. 5. Keep and maintain a complete and accurate record of all of its proceedings. The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.
9. 6. Provide for the use, maintenance and operation of the properties and interests owned or managed by the authority.
7. Be responsible for the Completion of all financial reports, including tax returns.
8. Report to the board of directors at least annually on all projects financed by the authority and the results of those projects.
C. The authority board may:
1. 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.
2. Adopt administrative rules as necessary to administer and operate the authority and any property under its jurisdiction.
3. Acquire by any lawful means, other than eminent domain, and operate, maintain, encumber and dispose of real and personal property and interests in property.
4. Retain legal counsel and other consultants as necessary to carry out the purposes of the authority.
5. Enter into contracts for the lease or rental of any facility or facilities of the authority with a nonprofit community based organization that sponsors a professional or youth sporting event that provide for the payment to the organization of a ticket surcharge or facility user fee associated with parking if the authority has fully paid the current year's required principal and interest payments on any outstanding authority bonds for which these revenues were pledged pursuant to article 3 of this chapter.
D. The authority shall comply with zoning, lighting and all other laws and ordinances of the county, city or town with zoning jurisdiction over any property owned by the authority.
E. The authority board shall appoint an advisory board consisting of members representing a broad spectrum of interested parties for the purpose of advising the authority in its activities to fully perform and accomplish its purposes.
Sec. 6. Repeal
Sections 5-1106 and 5-1107, Arizona Revised Statutes, are repealed.
Sec. 7. Section 5-1133, Arizona Revised Statutes, is amended to read:
5-1133. Excise tax on car rentals
A. The qualified electors, by majority vote at an election held pursuant to section 5-1103, may levy and, if levied, the department of revenue shall collect an excise tax on the gross proceeds of sales or gross income from the business of leasing or renting motor vehicles in the authority by a person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42‑5071, beginning on the first day of the first month beginning ninety days after the election. The tax shall be in effect for three hundred sixty months except as provided by section 5‑1139. The tax imposed pursuant to this section is in addition to any other taxes levied by this state or any other political subdivision of this state.
B. Except as provided by section 5-1139, The rate of the tax is .35 per cent percent of the tax base prescribed by section 42‑5071.
C. The tax applies to the business of leasing or renting in the authority, for less than one year, motor vehicles for hire without a driver that are designed to operate on the streets and highways of this state and that are primarily intended to carry not more than fourteen passengers, regardless of whether the vehicle is registered or licensed in this state.
D. The tax does not apply to the lease or rental of:
1. A motor vehicle as a temporary replacement vehicle that is loaned at no charge by a repair facility or dealer for use while the vehicle that it is replacing is not in service because of breakdown, repair, service, damage or loss.
2. 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 tax is not taxable under section 42-5071.
Sec. 8. Section 5-1134, Arizona Revised Statutes, is amended to read:
5-1134. Excise tax on hotels and motels
A. The qualified electors, by majority vote at an election held pursuant to section 5‑1103, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42‑5070 within the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months except as provided by section 5‑1139.
C. Except as provided by section 5‑1139, The rate of the tax is .45 per cent percent of the tax base prescribed by section 42‑5070.
Sec. 9. Section 5-1135, Arizona Revised Statutes, is amended to read:
5-1135. Tax on restaurants and bars
A. The qualified electors, by majority vote at an election held pursuant to section 5‑1103, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42‑5074 in the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months except as provided by section 5‑1139.
C. Except as provided by section 5‑1139, The rate of the tax is .25 per cent percent of the tax base prescribed by section 42‑5074.
Sec. 10. Section 5-1136, Arizona Revised Statutes, is amended to read:
5-1136. Tax on amusements and sporting events
A. The qualified electors, by majority vote at an election held pursuant to section 5‑1103, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from persons taxed under title 42, chapter 5 and classified under section 42‑5073 in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months except as provided by section 5-1139.
C. Except as provided by section 5‑1139, The rate of the tax is .35 per cent percent of the tax base prescribed by section 42‑5073.
Sec. 11. Section 5-1137, Arizona Revised Statutes, is amended to read:
5-1137. Tax on retail
A. The qualified electors, by majority vote at an election held pursuant to section 5‑1103, may levy and, if levied, the department of revenue shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in a business taxed under title 42, chapter 5 and classified under section 42‑5061 in the authority. A tax under this section is in addition to the tax imposed by title 42, chapter 5 and any tax imposed by any other political subdivision in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day of the first month beginning ninety days after the election, and shall continue in this manner for three hundred sixty months except as provided by section 5‑1139.
C. Except as provided by section 5‑1139, The rate of the tax is .15 per cent percent of the tax base prescribed by section 42‑5061.
Sec. 12. Repeal
Section 5-1139, Arizona Revised Statutes, is repealed.
Sec. 13. Repeal
Title 5, chapter 9, article 3, Arizona Revised Statutes, is repealed.
Sec. 14. Repeal
Laws 2009, chapter 122, section 4 is repealed.
Sec. 15. Laws 2010, chapter 117, section 18 is amended to read:
Sec. 18. Conditional repeal
A. If a majority of the qualified electors voting on the issue in the first an election has not been held before November 30, 2018 pursuant to section 5-1103, Arizona Revised Statutes, reject the levy of taxes and issuance of bonds for the purposes of establishing a sports and tourism authority district, title 5, chapter 9, Arizona Revised Statutes, is repealed.
B. The clerk of the board of supervisors that conducts the election secretary of state shall notify in writing the director of legislative council of the results of the election and whether the condition described in subsection A of this section occurred.
