Bill Text: AZ HB2647 | 2012 | Fiftieth Legislature 2nd Regular | Engrossed
Bill Title: County stadium districts; Rio Nuevo
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2012-04-02 - Governor Vetoed [HB2647 Detail]
Download: Arizona-2012-HB2647-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HOUSE BILL 2647 |
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AN ACT
Amending sections 9-463.05, 9-835, 11-1102, 42-5031, 42-6004, 48-4201, 48‑4202, 48-4203, 48‑4204, 48-4231.01 and 48-4237, 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 9-463.05, Arizona Revised Statutes, is amended to read:
9-463.05. Development fees; imposition by cities and towns; infrastructure improvements plan; annual report; advisory committee; limitation on actions; definitions
A. A municipality may assess development fees to offset costs to the municipality associated with providing necessary public services to a development, including the costs of infrastructure, improvements, real property, engineering and architectural services, financing and professional services required for the preparation or revision of a development fee pursuant to this section, including the relevant portion of the infrastructure improvements plan.
B. Development fees assessed by a municipality under this section are subject to the following requirements:
1. Development fees shall result in a beneficial use to the development.
2. The municipality shall calculate the development fee based on the infrastructure improvements plan adopted pursuant to this section.
3. The development fee shall not exceed a proportionate share of the cost of necessary public services, based on service units, needed to provide necessary public services to the development.
4. Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the service area.
5. Development fees may not be used for any of the following:
(a) Construction, acquisition or expansion of public facilities or assets other than necessary public services or facility expansions identified in the infrastructure improvements plan.
(b) Repair, operation or maintenance of existing or new necessary public services or facility expansions.
(c) Upgrading, updating, expanding, correcting or replacing existing necessary public services to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards.
(d) Upgrading, updating, expanding, correcting or replacing existing necessary public services to provide a higher level of service to existing development.
(e) Administrative, maintenance or operating costs of the municipality.
6. Any development for which a development fee has been paid is entitled to the use and benefit of the services for which the fee was imposed and is entitled to receive immediate service from any existing facility with available capacity to serve the new service units if the available capacity has not been reserved or pledged in connection with the construction or financing of the facility.
7. Development fees may be collected if any of the following occurs:
(a) The collection is made to pay for a necessary public service or facility expansion that is identified in the infrastructure improvements plan and the municipality plans to complete construction and to have the service available within the time period established in the infrastructure improvement improvements plan, but in no event longer than the time period provided in subsection H I, paragraph 3 of this section.
(b) The municipality reserves in the infrastructure improvements plan adopted pursuant to this section or otherwise agrees to reserve capacity to serve future development.
(c) The municipality requires or agrees to allow the owner of a development to construct or finance the necessary public service or facility expansion and any of the following apply applies:
(i) The costs incurred or money advanced are credited against or reimbursed from the development fees otherwise due from a development.
(ii) The municipality reimburses the owner for those costs from the development fees paid from all developments that will use those necessary public services or facility expansions.
(iii) For those costs incurred the municipality allows the owner to assign the credits or reimbursement rights from the development fees otherwise due from a development to other developments for the same category of necessary public services in the same service area.
8. Projected interest charges and other finance costs may be included in determining the amount of development fees only if the monies are used for the payment of principal and interest on the portion of the bonds, notes or other obligations issued to finance construction of necessary public services or facility expansions identified in the infrastructure improvements plan.
9. Monies received from development fees assessed pursuant to this section shall be placed in a separate fund and accounted for separately and may only be used for the purposes authorized by this section. Monies received from a development fee identified in an infrastructure improvements plan adopted or updated pursuant to subsection D of this section shall be used to provide the same category of necessary public services or facility expansions for which the development fee was assessed and for the benefit of the same service area, as defined in the infrastructure improvements plan, in which the development fee was assessed. Interest earned on monies in the separate fund shall be credited to the fund.
10. The schedule for payment of fees shall be provided by the municipality. Based on the cost identified in the infrastructure improvements plan, the municipality shall provide a credit toward the payment of a development fee for the required or agreed to dedication of public sites, improvements and other necessary public services or facility expansions included in the infrastructure improvements plan and for which a development fee is assessed, to the extent the public sites, improvements and necessary public services or facility expansions are provided by the developer. The developer of residential dwelling units shall be required to pay development fees when construction permits for the dwelling units are issued, or at a later time if specified in a development agreement pursuant to section 9‑500.05. If a development agreement provides for fees to be paid at a time later than the issuance of construction permits, the deferred fees shall be paid no later than fifteen days after the issuance of a certificate of occupancy. The development agreement shall provide for the value of any deferred fees to be supported by appropriate security, including a surety bond, letter of credit or cash bond.
11. If a municipality requires as a condition of development approval the construction or improvement of, contributions to or dedication of any facilities that were not included in a previously adopted infrastructure improvements plan, the municipality shall cause the infrastructure improvements plan to be amended to include the facilities and shall provide a credit toward the payment of a development fee for the construction, improvement, contribution or dedication of the facilities to the extent that the facilities will substitute for or otherwise reduce the need for other similar facilities in the infrastructure improvements plan for which development fees were assessed.
12. The municipality shall forecast the contribution to be made in the future in cash or by taxes, fees, assessments or other sources of revenue derived from the property owner towards the capital costs of the necessary public service covered by the development fee and shall include these contributions in determining the extent of the burden imposed by the development. Beginning August 1, 2014, for purposes of calculating the required offset to development fees pursuant to this subsection, if a municipality imposes a construction contracting or similar excise tax rate in excess of the percentage amount of the transaction privilege tax rate imposed on the majority of other transaction privilege tax classifications, the entire excess portion of the construction contracting or similar excise tax shall be treated as a contribution to the capital costs of necessary public services provided to development for which development fees are assessed, unless the excess portion was already taken into account for such purpose pursuant to this subsection.
13. If development fees are assessed by a municipality, the fees shall be assessed against commercial, residential and industrial development, except that the municipality may distinguish between different categories of residential, commercial and industrial development in assessing the costs to the municipality of providing necessary public services to new development and in determining the amount of the development fee applicable to the category of development. If a municipality agrees to waive any of the development fees assessed on a development, the municipality shall reimburse the appropriate development fee accounts for the amount that was waived. The municipality shall provide notice of any such waiver to the advisory committee established pursuant to subsection G H of this section within thirty days.
14. In determining and assessing a development fee applying to land in a community facilities district established under title 48, chapter 4, article 6, the municipality shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and shall not assess a portion of the development fee based on the infrastructure or costs.
C. A municipality shall give at least thirty days' advance notice of intention to assess a development fee and shall release to the public and post on its website or the website of an association of cities and towns if a municipality does not have a website a written report of the land use assumptions and infrastructure improvements plan adopted pursuant to subsection D of this section. The municipality shall conduct a public hearing on the proposed development fee at any time after the expiration of the thirty day notice of intention to assess a development fee and at least thirty days before the scheduled date of adoption of the fee by the governing body. Within sixty days after the date of the public hearing on the proposed development fee, a municipality shall approve or disapprove the imposition of the development fee. A municipality shall not adopt an ordinance, order or resolution approving a development fee as an emergency measure. A development fee assessed pursuant to this section shall not be effective until seventy-five days after its formal adoption by the governing body of the municipality. Nothing in this subsection shall affect any development fee adopted before July 24, 1982.
D. Before the adoption or amendment of a development fee, the governing body of the municipality shall adopt or update the land use assumptions and infrastructure improvements plan for the designated service area. The municipality shall conduct a public hearing on the land use assumptions and infrastructure improvements plan at least thirty days before the adoption or update of the plan. The municipality shall release the plan to the public, post the plan on its website or the website of an association of cities and towns if the municipality does not have a website, including in the posting its land use assumptions, the time period of the projections, a description of the necessary public services included in the infrastructure improvements plan and a map of the service area to which the land use assumptions apply, make available to the public the documents used to prepare the assumptions and plan and provide public notice at least sixty days before the public hearing, subject to the following:
1. The land use assumptions and infrastructure improvements plan shall be approved or disapproved within sixty days after the public hearing on the land use assumptions and infrastructure improvements plan and at least thirty days before the public hearing on the report required by subsection C of this section. A municipality shall not adopt an ordinance, order or resolution approving the land use assumptions or infrastructure improvements plan as an emergency measure.
2. An infrastructure improvements plan shall be developed by qualified professionals using generally accepted engineering and planning practices pursuant to subsection E of this section.
3. A municipality shall update the land use assumptions and infrastructure improvements plan at least every five years. The initial five year period begins on the day the infrastructure improvements plan is adopted. The municipality shall review and evaluate its current land use assumptions and shall cause an update of the infrastructure improvements plan to be prepared pursuant to this section.
4. Within sixty days after completion of the updated land use assumptions and infrastructure improvements plan, the municipality shall schedule and provide notice of a public hearing to discuss and review the update and shall determine whether to amend the assumptions and plan.
5. A municipality shall hold a public hearing to discuss the proposed amendments to the land use assumptions, the infrastructure improvements plan or the development fee. The land use assumptions and the infrastructure improvements plan, including the amount of any proposed changes to the development fee per service unit, shall be made available to the public on or before the date of the first publication of the notice of the hearing on the amendments.
6. The notice and hearing procedures prescribed in paragraph 1 of this subsection apply to a hearing on the amendment of land use assumptions, an infrastructure improvements plan or a development fee. Within sixty days after the date of the public hearing on the amendments, a municipality shall approve or disapprove the amendments to the land use assumptions, infrastructure improvements plan or development fee. A municipality shall not adopt an ordinance, order or resolution approving the amended land use assumptions, infrastructure improvements plan or development fee as an emergency measure.
7. The advisory committee established under subsection G H of this section shall file its written comments on any proposed or updated land use assumptions, infrastructure improvements plan and development fees before the fifth business day before the date of the public hearing on the proposed or updated assumptions, plan and fees.
8. If, at the time an update as prescribed in paragraph 3 of this subsection is required, the municipality determines that no changes to the land use assumptions, infrastructure improvements plan or development fees are needed, the municipality may as an alternative to the updating requirements of this subsection publish notice of its determination on its website and include the following:
(a) A statement that the municipality has determined that no change to the land use assumptions, infrastructure improvements plan or development fee is necessary.
(b) A description and map of the service area in which an update has been determined to be unnecessary.
(c) A statement that by a specified date, which shall be at least sixty days after the date of publication of the first notice, a person may make a written request to the municipality requesting that the land use assumptions, infrastructure improvements plan or development fee be updated.
(d) A statement identifying the person or entity to whom the written request for an update should be sent.
9. If, by the date specified pursuant to paragraph 8 of this subsection, a person requests in writing that the land use assumptions, infrastructure improvements plan or development fee be updated, the municipality shall cause, accept or reject an update of the assumptions and plan to be prepared pursuant to this subsection.
10. Notwithstanding the notice and hearing requirements for adoption of an infrastructure improvements plan, a municipality may amend an infrastructure improvements plan adopted pursuant to this section without a public hearing if the amendment addresses only elements of necessary public services in the existing infrastructure improvements plan and the changes to the plan will not, individually or cumulatively with other amendments adopted pursuant to this subsection, increase the level of service in the service area or cause a development fee increase of greater than five per cent when a new or modified development fee is assessed pursuant to this section. The municipality shall provide notice of any such amendment at least thirty days before adoption, shall post the amendment on its website or on the website of an association of cities and towns if the municipality does not have a website and shall provide notice to the advisory committee established pursuant to subsection G H of this section that the amendment complies with this subsection.
E. For each necessary public service that is the subject of a development fee, the infrastructure improvements plan shall include:
1. A description of the existing necessary public services in the service area and the costs to upgrade, update, improve, expand, correct or replace those necessary public services to meet existing needs and usage and stricter safety, efficiency, environmental or regulatory standards, which shall be prepared by qualified professionals licensed in this state, as applicable.
2. An analysis of the total capacity, the level of current usage and commitments for usage of capacity of the existing necessary public services, which shall be prepared by qualified professionals licensed in this state, as applicable.
3. A description of all or the parts of the necessary public services or facility expansions and their costs necessitated by and attributable to development in the service area based on the approved land use assumptions, including a forecast of the costs of infrastructure, improvements, real property, financing, engineering and architectural services, which shall be prepared by qualified professionals licensed in this state, as applicable.
4. A table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of necessary public services or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial and industrial.
5. The total number of projected service units necessitated by and attributable to new development in the service area based on the approved land use assumptions and calculated pursuant to generally accepted engineering and planning criteria.
6. The projected demand for necessary public services or facility expansions required by new service units for a period not to exceed ten years.
7. A forecast of revenues generated by new service units other than development fees, which shall include estimated state-shared revenue, highway users user revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development based on the approved land use assumptions, and a plan to include these contributions in determining the extent of the burden imposed by the development as required in subsection B, paragraph 12 of this section.
F. A municipality's development fee ordinance shall provide that a new development fee or an increased portion of a modified development fee shall not be assessed against a development for twenty-four months after the date that the municipality issues the final approval for a commercial, industrial or multifamily development or the date that the first building permit is issued for a residential development pursuant to an approved site plan or subdivision plat, provided that no subsequent changes are made to the approved site plan or subdivision plat that would increase the number of service units. If the number of service units increases, the new or increased portion of a modified development fee shall be limited to the amount attributable to the additional service units. The twenty-four month period shall not be extended by a renewal or amendment of the site plan or the final subdivision plat that was the subject of the final approval. The municipality shall issue, on request, a written statement of the development fee schedule applicable to the development. If, after the date of the municipality's final approval of a development, the municipality reduces the development fee assessed on development, the reduced fee shall apply to the development.
G. A municipality shall not levy or assess an impact or development fee, however denominated or for any purpose, on the development of real property within the exterior boundaries of a multipurpose facility site in a county stadium district established pursuant to section 48-4202, subsection B.
G. H. A municipality shall do one of the following:
1. Before the adoption of proposed or updated land use assumptions, infrastructure improvements plan and development fees as prescribed in subsection D of this section, the municipality shall appoint an infrastructure improvements advisory committee, subject to the following requirements:
(a) The advisory committee shall be composed of at least five members who are appointed by the governing body of the municipality. At least fifty per cent of the members of the advisory committee must be representatives of the real estate, development or building industries, of which at least one member of the committee must be from the home building industry. Members shall not be employees or officials of the municipality.
(b) The advisory committee shall serve in an advisory capacity and shall:
(i) Advise the municipality in adopting land use assumptions and in determining whether the assumptions are in conformance with the general plan of the municipality.
(ii) Review the infrastructure improvements plan and file written comments.
(iii) Monitor and evaluate implementation of the infrastructure improvements plan.
(iv) Every year file reports with respect to the progress of the infrastructure improvements plan and the collection and expenditures of development fees and report to the municipality any perceived inequities in implementing the plan or imposing the development fee.
(v) Advise the municipality of the need to update or revise the land use assumptions, infrastructure improvements plan and development fee.
(c) The municipality shall make available to the advisory committee any professional reports with respect to developing and implementing the infrastructure improvements plan.
(d) The municipality shall adopt procedural rules for the advisory committee to follow in carrying out the committee's duties.
2. In lieu of creating an advisory committee pursuant to paragraph 1 of this subsection, provide for a biennial certified audit of the municipality's land use assumptions, infrastructure improvements plan and development fees. An audit pursuant to this paragraph shall be conducted by one or more qualified professionals who are not employees or officials of the municipality and who did not prepare the infrastructure improvements plan. The audit shall review the progress of the infrastructure improvements plan, including the collection and expenditures of development fees for each project in the plan, and evaluate any inequities in implementing the plan or imposing the development fee. The municipality shall post the findings of the audit on the municipality's website or the website of an association of cities and towns if the municipality does not have a website and shall conduct a public hearing on the audit within sixty days of the release of the audit to the public.
H. I. On written request, an owner of real property for which a development fee has been paid after July 31, 2014 is entitled to a refund of a development fee or any part of a development fee if:
1. Pursuant to subsection B, paragraph 6 of this section, existing facilities are available and service is not provided.
2. The municipality has, after collecting the fee to construct a facility when service is not available, failed to complete construction within the time period identified in the infrastructure improvements plan, but in no event later than the time period specified in paragraph 3 of this subsection.
3. For a development fee other than a development fee for water or wastewater facilities, any part of the development fee is not spent as authorized by this section within ten years after the fee has been paid or, for a development fee for water or wastewater facilities, any part of the development fee is not spent as authorized by this section within fifteen years after the fee has been paid.
I. J. If the development fee was collected for the construction of all or a portion of a specific item of infrastructure, and on completion of the infrastructure the municipality determines that the actual cost of construction was less than the forecasted cost of construction on which the development fee was based and the difference between the actual and estimated cost is greater than ten per cent, the current owner may receive a refund of the portion of the development fee equal to the difference between the development fee paid and the development fee that would have been due if the development fee had been calculated at the actual construction cost.
J. K. A refund shall include any interest earned by the municipality from the date of collection to the date of refund on the amount of the refunded fee. All refunds shall be made to the record owner of the property at the time the refund is paid. If the development fee is paid by a governmental entity, the refund shall be paid to the governmental entity.
K. L. A development fee that was adopted before January 1, 2012 may continue to be assessed only to the extent that it will be used to provide a necessary public service for which development fees can be assessed pursuant to this section and shall be replaced by a development fee imposed under this section on or before August 1, 2014. Any municipality having a development fee that has not been replaced under this section on or before August 1, 2014 shall not collect development fees until the development fee has been replaced with a fee that complies with this section. Any development fee monies collected before January 1, 2012 remaining in a development fee account:
1. Shall be used towards the same category of necessary public services as authorized by this section.
2. If development fees were collected for a purpose not authorized by this section, shall be used for the purpose for which they were collected on or before January 1, 2020, and after which, if not spent, shall be distributed equally among the categories of necessary public services authorized by this section.
L. M. A moratorium shall not be placed on development for the sole purpose of awaiting completion of all or any part of the process necessary to develop, adopt or update development fees.
M. N. In any judicial action interpreting this section, all powers conferred on municipal governments in this section shall be narrowly construed to ensure that development fees are not used to impose on new residents a burden all taxpayers of a municipality should bear equally.
N. O. Each municipality that assesses development fees shall submit an annual report accounting for the collection and use of the fees for each service area. The annual report shall include the following:
1. The amount assessed by the municipality for each type of development fee.
2. The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to repay:
(a) Bonds issued by the municipality to pay the cost of a capital improvement project that is the subject of a development fee assessment, including the amount needed to repay the debt service obligations on each facility for which development fees have been identified as the source of funding and the time frames in which the debt service will be repaid.
(b) Monies advanced by the municipality from funds other than the funds established for development fees in order to pay the cost of a capital improvement project that is the subject of a development fee assessment, the total amount advanced by the municipality for each facility, the source of the monies advanced and the terms under which the monies will be repaid to the municipality.
5. The amount of development fee monies spent on each capital improvement project that is the subject of a development fee assessment and the physical location of each capital improvement project.
6. The amount of development fee monies spent for each purpose other than a capital improvement project that is the subject of a development fee assessment.
O. P. Within ninety days following the end of each fiscal year, each municipality shall submit a copy of the annual report to the city clerk and post the report on the municipality's website or the website of an association of cities and towns if the municipality does not have a website. Copies shall be made available to the public on request. The annual report may contain financial information that has not been audited.
P. Q. A municipality that fails to file the report and post the report on the municipality's website or the website of an association of cities and towns if the municipality does not have a website as required by this section shall not collect development fees until the report is filed and posted.
Q. R. Any action to collect a development fee shall be commenced within two years after the obligation to pay the fee accrues.
R. S. A municipality may continue to assess a development fee adopted before January 1, 2012 for any facility that was financed before June 1, 2011 if:
1. Development fees were pledged to repay debt service obligations related to the construction of the facility.
2. After August 1, 2014, any development fees collected under this subsection are used solely for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued before June 1, 2011 to finance construction of the facility.
S. T. Through August 1, 2014, a development fee adopted before January 1, 2012 may be used to finance construction of a facility and may be pledged to repay debt service obligations if:
1. The facility that is being financed is a facility that is described under subsection T U, paragraph 7, subdivisions (a) through (g) of this section.
2. The facility was included in an infrastructure improvements plan adopted before June 1, 2011.
3. The development fees are used for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations issued to finance construction of the necessary public services or facility expansions identified in the infrastructure improvement improvements plan.
T. U. For the purposes of this section:
1. "Dedication" means the actual conveyance date or the date an improvement, facility or real or personal property is placed into service, whichever occurs first.
2. "Development" means:
(a) The subdivision of land.
(b) The construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that adds or increases the number of service units.
(c) Any use or extension of the use of land that increases the number of service units.
3. "Facility expansion" means the expansion of the capacity of an existing facility that serves the same function as an otherwise new necessary public service in order that the existing facility may serve new development. Facility expansion does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
4. "Final approval" means:
(a) For a nonresidential or multifamily development, the approval of a site plan or, if no site plan is submitted for the development, the approval of a final subdivision plat.
(b) For a single family residential development, the approval of a final subdivision plat.
5. "Infrastructure improvements plan" means a written plan that identifies each necessary public service or facility expansion that is proposed to be the subject of a development fee and otherwise complies with the requirements of this section, and may be the municipality's capital improvements plan.
6. "Land use assumptions" means projections of changes in land uses, densities, intensities and population for a specified service area over a period of at least ten years and pursuant to the general plan of the municipality.
7. "Necessary public service" means any of the following facilities that have a life expectancy of three or more years and that are owned and operated by or on behalf of the municipality:
(a) Water facilities, including the supply, transportation, treatment, purification and distribution of water, and any appurtenances for those facilities.
(b) Wastewater facilities, including collection, interception, transportation, treatment and disposal of wastewater, and any appurtenances for those facilities.
(c) Storm water, drainage and flood control facilities, including any appurtenances for those facilities.
(d) Library facilities of up to ten thousand square feet that provide a direct benefit to development, not including equipment, vehicles or appurtenances.
(e) Street facilities located in the service area, including arterial or collector streets or roads that have been designated on an officially adopted plan of the municipality, traffic signals and rights‑of‑way and improvements thereon.
(f) Fire and police facilities, including all appurtenances, equipment and vehicles. Fire and police facilities do not include a facility or portion of a facility that is used to replace services that were once provided elsewhere in the municipality, vehicles and equipment used to provide administrative services, helicopters or airplanes or a facility that is used for training firefighters or officers from more than one station or substation.
(g) Neighborhood parks and recreational facilities on real property up to thirty acres in area, or parks and recreational facilities larger than thirty acres if the facilities provide a direct benefit to the development. Park and recreational facilities do not include vehicles, equipment or that portion of any facility that is used for amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses, community centers greater than three thousand square feet in floor area, environmental education centers, equestrian facilities, golf course facilities, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, zoo facilities or similar recreational facilities, but may include swimming pools.
(h) Any facility that was financed and that meets all of the requirements prescribed in subsection R S of this section.
8. "Qualified professional" means a professional engineer, surveyor, financial analyst or planner providing services within the scope of the person's license, education or experience.
9. "Service area" means any specified area within the boundaries of a municipality in which development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the infrastructure improvements plan.
10. "Service unit" means a standardized measure of consumption, use, generation or discharge attributable to an individual unit of development calculated pursuant to generally accepted engineering or planning standards for a particular category of necessary public services or facility expansions.
Sec. 2. Section 9-835, Arizona Revised Statutes, is amended to read:
9-835. Licensing time frames; compliance; consequence for failure to comply with time frame; exception
A. For any new ordinance or code requiring a license, a municipality shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame.
B. On or before December 31, 2012, a municipality that issues licenses required under existing ordinances or codes shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame. Municipalities shall prioritize the establishment of time frames for those licenses that have the greatest impact on the public. A municipality shall employ its best efforts for issuing or denying municipal building permits to any applicant for any project within the exterior boundaries of a multipurpose facility site in a county stadium district established within the municipality pursuant to section 48-4202, subsection B within thirty days after the submission of a complete and correct application.
C. In establishing time frames, municipalities shall consider all of the following:
1. The complexity of the licensing subject matter.
2. The resources of the municipality.
3. The economic impact of delay on the regulated community.
4. The impact of the licensing decision on public health and safety.
5. The possible use of volunteers with expertise in the subject matter area.
6. The possible increased use of general licenses for similar types of licensed businesses or facilities.
7. The possible increased cooperation between the municipality and the regulated community.
8. Increased municipal flexibility in structuring the licensing process and personnel including:
(a) Adult businesses and other licenses that are related to the first amendment.
(b) Master planned communities.
(c) Suspension of the substantive and overall time frames for purposes including public hearings or state or federal licenses.
D. A municipality shall issue a written or electronic notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame. If the permit sought requires approval of more than one department of the municipality, each department may issue a written or electronic notice of administrative completeness or deficiencies.
E. If a municipality determines that an application for a license is not administratively complete, the municipality shall include a comprehensive list of the specific deficiencies in the written or electronic notice provided pursuant to subsection D of this section. If the municipality issues a written or electronic notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the municipality receives the missing information from the applicant. The municipality may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information. If the permit sought requires approval of more than one department of the municipality, each department may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information.
F. If a municipality does not issue a written or electronic notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete. If a municipality issues a timely written or electronic notice of deficiencies, an application shall not be complete until all requested information has been received by the municipality.
G. During the substantive review time frame, a municipality may make one comprehensive written or electronic request for additional information. If the permit sought requires approval of more than one department of the municipality, each department may issue a written or electronic request for additional information. The municipality and applicant may mutually agree in writing or electronically to allow the municipality to submit supplemental requests for additional information. If a municipality issues a comprehensive written or electronic request or a supplemental request by mutual written or electronic agreement for additional information, the substantive review time frame and the overall time frame are suspended from the date the request is issued until the date that the municipality receives the additional information from the applicant.
H. By mutual written or electronic agreement, a municipality and an applicant for a license may extend the substantive review time frame and the overall time frame. An extension of the substantive review time frame and the overall time frame may not exceed twenty-five per cent of the overall time frame.
I. Unless a municipality and an applicant for a license mutually agree to extend the substantive review time frame and the overall time frame pursuant to subsection H of this section, a municipality shall issue a written or electronic notice granting or denying a license to an applicant. If a municipality denies an application for a license, the municipality shall include in the written or electronic notice at least the following information:
1. Justification for the denial with references to the statutes, ordinances, codes or substantive policy statements on which the denial is based.
2. An explanation of the applicant's right to appeal the denial. The explanation shall include the number of working days in which the applicant must file a protest challenging the denial and the name and telephone number of a municipal contact person who can answer questions regarding the appeals process.
J. If a municipality does not issue the applicant the written or electronic notice granting or denying a license within the overall time frame or within the mutually agreed upon time frame extension, the municipality shall refund to the applicant all fees charged for reviewing and acting on the application for the license and shall excuse payment of any fees that have not yet been paid. The municipality shall not require an applicant to submit an application for a refund pursuant to this subsection. The refund shall be made within thirty working days after the expiration of the overall time frame or the time frame extension. The municipality shall continue to process the application. Notwithstanding any other statute, the municipality shall make the refund from the fund in which the application fees were originally deposited.
K. This section does not apply to licenses issued within seven working days after receipt of the initial application or a permit that expire within twenty‑one working days after issuance.
Sec. 3. Section 11-1102, Arizona Revised Statutes, is amended to read:
11-1102. County development fees; annual report
A. If a county has adopted a capital improvements plan, the county may assess development fees within the covered planning area in order to offset the capital costs for water, sewer, streets, parks and public safety facilities determined by the plan to be necessary for public services provided by the county to a development in the planning area.
B. Development fees assessed under this section are subject to the following requirements:
1. Development fees shall result in a beneficial use to the development.
2. Monies received from development fees shall be placed in a separate fund and accounted for separately and may only be used for the purposes authorized by this section. Interest earned on monies in the separate fund shall be credited to the fund.
3. The county shall prescribe the schedule for paying the development fees. The county shall provide a credit toward the payment of the fee for the required dedication of public sites and improvements provided by the developer for which that fee is assessed. The developer of residential dwelling units shall be required to pay the fees when construction permits for the dwelling units are issued.
4. The amount of any development fees must bear a reasonable relationship to the burden of capital costs imposed on the county to provide additional necessary public services to the development. In determining the extent of the burden imposed by the development, the county shall consider, among other things, the contribution made or to be made in the future in cash by taxes, fees or assessments by the property owner toward the capital costs of the necessary public service covered by the development fee.
5. Development fees shall be assessed in a nondiscriminatory manner.
6. In determining and assessing a development fee applying to land in a community facilities district established under title 48, chapter 4, article 6, the county shall take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and shall not assess a portion of the development fee based on the infrastructure or costs.
7. The county shall not assess or collect development fees from a school district or charter school, other than fees assessed or collected for streets and water and sewer utility functions.
C. Before assessing or increasing a development fee, the county shall:
1. Give at least one hundred twenty days' advance notice of intention to assess a new or increased development fee.
2. Release to the public a written report including all documentation that supports the assessment of a new or increased development fee.
3. Conduct a public hearing on the proposed new or increased development fee at any time after the expiration of the one hundred twenty day notice of intention to assess a new or increased development fee and at least fourteen days before the scheduled date of adoption of the new or increased fee.
D. A development fee assessed pursuant to this section is not effective for at least ninety days after its formal adoption by the board of supervisors.
E. A county shall not levy or assess an impact or development fee, CONNECTION or hookup fee or any other assessment, however denominated or for any purpose, on the development of real property within the exterior boundaries of a multipurpose facility site in a county stadium district established pursuant to section 48-4202, subsection B.
E. F. Each county that assesses development fees shall submit an annual report accounting for the collection and use of the fees. The annual report shall include the following:
1. The amount assessed by the county for each type of development fee.
2. The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to repay:
(a) Bonds issued by the county to pay the cost of a capital improvement project that is the subject of a development fee assessment.
(b) Monies advanced by the county from funds other than the funds established for development fees in order to pay the cost of a capital improvement project that is the subject of a development fee assessment.
5. The amount of development fee monies spent on each capital improvement project that is the subject of a development fee assessment and the physical location of each capital improvement project.
6. The amount of development fee monies spent for each purpose other than a capital improvement project that is the subject of a development fee assessment.
F. G. Within ninety days following the end of each fiscal year, each county shall submit a copy of the annual report to the clerk of the board of supervisors. Copies shall be made available to the public on request. The annual report may contain financial information that has not been audited.
G. H. A county that fails to file the report required by this section shall not collect development fees until the report is filed.
H. I. This section does not affect any development fee adopted before May 18, 2000.
Sec. 4. 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 C 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 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.
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. 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. C. 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. D. If the municipality in which the multipurpose facility site is located fails to satisfy the obligations of the municipality pursuant to subsection D C 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 C of this section.
F. E. 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. 5. Section 42-6004, Arizona Revised Statutes, is amended to read:
42-6004. Exemption from municipal tax
A. A city, town or special taxing district shall not levy a transaction privilege, sales, use or other similar tax on:
1. Exhibition events in this state sponsored, conducted or operated by a nonprofit organization that is exempt from taxation under section 501(c)(3), 501(c)(4) or 501(c)(6) of the internal revenue code if the organization is associated with a major league baseball team or a national touring professional golfing association and no part of the organization's net earnings inures to the benefit of any private shareholder or individual.
2. Interstate telecommunications services, which include that portion of telecommunications services, such as subscriber line service, allocable by federal law to interstate telecommunications service.
3. Sales of warranty or service contracts.
4. Sales of motor vehicles to nonresidents of this state for use outside this state if the vendor ships or delivers the motor vehicle to a destination outside this state.
5. Interest on finance contracts.
6. Dealer documentation fees on the sales of motor vehicles.
7. Sales of food or other items purchased with United States department of agriculture food stamp coupons issued under the food stamp act of 1977 (P.L. 95‑113; 91 Stat. 958) or food instruments issued under section 17 of the child nutrition act (P.L. 95‑627; 92 Stat. 3603; P.L. 99‑661, section 4302; 42 United States Code section 1786) but may impose such a tax on other sales of food. If a city, town or special taxing district exempts sales of food from its tax or imposes a different transaction privilege rate on the gross proceeds of sales or gross income from sales of food and nonfood items, it shall use the definition of food prescribed by rule adopted by the department pursuant to section 42‑5106.
8. Sales of internet access services to the person's subscribers and customers. For the purposes of this paragraph:
(a) "Internet" means the computer and telecommunications facilities that comprise the interconnected worldwide network of networks that employ the transmission control protocol or internet protocol, or any predecessor or successor protocol, to communicate information of all kinds by wire or radio.
(b) "Internet access" means a service that enables users to access content, information, electronic mail or other services over the internet. Internet access does not include telecommunication services provided by a common carrier.
9. The gross proceeds of sales or gross income retained by the Arizona exposition and state fair board from ride ticket sales at the annual Arizona state fair.
10. Through August 31, 2014, sales of Arizona centennial medallions by the historical advisory commission.
11. The gross proceeds of sales or gross income derived from a commercial lease in which a reciprocal insurer or a corporation leases real property to an affiliated corporation. For the purposes of this paragraph:
(a) "Affiliated corporation" means a corporation that meets one of the following conditions:
(i) The corporation owns or controls at least eighty per cent of the lessor.
(ii) The corporation is at least eighty per cent owned or controlled by the lessor.
(iii) The corporation is at least eighty per cent owned or controlled by a corporation that also owns or controls at least eighty per cent of the lessor.
(iv) The corporation is at least eighty per cent owned or controlled by a corporation that is at least eighty per cent owned or controlled by a reciprocal insurer.
(b) For the purposes of subdivision (a) of this paragraph, ownership and control are determined by reference to the voting shares of a corporation.
(c) "Reciprocal insurer" has the same meaning prescribed in section 20‑762.
12. The gross proceeds of sales or gross income derived from a commercial lease in which a corporation leases real property to a corporation of which at least eighty per cent of the voting shares of each corporation are owned by the same shareholders.
B. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, on natural gas or liquefied petroleum gas used to propel a motor vehicle.
C. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on gross proceeds of sales or gross income derived from any of the following:
1. A motor carrier's use on the public highways in this state if the motor carrier is subject to a fee prescribed in title 28, chapter 16, article 4.
2. Leasing, renting or licensing a motor vehicle subject to and upon which the fee has been paid under title 28, chapter 16, article 4.
3. The sale of a motor vehicle and any repair and replacement parts and tangible personal property becoming a part of such motor vehicle to a motor carrier who is subject to a fee prescribed in title 28, chapter 16, article 4 and who is engaged in the business of leasing, renting or licensing such property.
4. Incarcerating or detaining in a privately operated prison, jail or detention facility prisoners who are under the jurisdiction of the United States, this state or any other state or a political subdivision of this state or of any other state.
5. Transporting for hire persons, freight or property by light motor vehicles subject to a fee under title 28, chapter 15, article 4.
6. Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the model city tax code or by a contractor providing services to the taxpayer. For the purposes of this paragraph:
(a) The attributable amount shall not exceed the value of the development fees actually imposed.
(b) The attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees.
(c) "Development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to section 9‑463.05, section 11‑1102 or title 48 regardless of the jurisdiction to which the fees are paid.
D. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, in excess of one-tenth of one per cent of the value of the entire product mined, smelted, extracted, refined, produced or prepared for sale, profit or commercial use, on persons engaged in the business of mineral processing, except to the extent that the tax is computed on the gross proceeds or gross income from sales at retail.
E. In computing the tax base, any city, town or other taxing jurisdiction shall not include in the gross proceeds of sales or gross income:
1. A manufacturer's cash rebate on the sales price of a motor vehicle if the buyer assigns the buyer's right in the rebate to the retailer.
2. The waste tire disposal fee imposed pursuant to section 44‑1302.
F. A city or town shall not levy a use tax on the storage, use or consumption of tangible personal property in the city or town by a school district or charter school.
G. Notwithstanding any other law or provision of the model city tax code pursuant to article 2 of this chapter, a city may elect to waive or exempt from its transaction privilege tax the gross proceeds of sales or gross income from prime contracts for the construction of new or expanded fixed capital assets within the exterior boundaries of a multipurpose facility site in a county stadium district established pursuant to section 48-4202, subsection B.
Sec. 6. Section 48-4201, Arizona Revised Statutes, is amended to read:
48-4201. Definitions
In this chapter, unless the context otherwise requires:
1. "Board" means the board of directors of any district established under section 48‑4202, subsection A, B or C.
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 any county stadium district established pursuant to section 48‑4202, subsection A, B or C.
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, 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 district, including 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 and any other commercial real estate development project within the multipurpose facility site if the project will benefit the district and will increase employment and tax revenue within the district. The secondary component may include a real estate parcel that is partially within and partially outside 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 or intercollegiate athletic events.
Sec. 7. Section 48-4202, Arizona Revised Statutes, is amended to read:
48-4202. 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 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:
1. Five members who are appointed by the governor, at least three of whom must reside in the municipality in which the district is located and 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, at least one of whom must reside in the municipality in which the district is located. 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, at least one of whom must reside in the municipality in which the district is located. 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:
1. Eminent domain, as provided by section 48‑4203, subsection A, paragraph 7. , and
2. Immunity of its property, bonds and interest on and transfer of its bonds from taxation.
3. Exemption from the provisions of article IX, section 7, Constitution of Arizona, as provided by article XIII, section 7, Constitution of Arizona.
Sec. 8. Section 48-4203, Arizona Revised Statutes, is amended to read:
48-4203. 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 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.
4. Enter into contracts, agreements and other transactions that may survive the district's termination. Such a transaction must include provisions for the succession to the district's interest until all of the obligations and interests of the district are satisfied.
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 determine by agreement the distribution of revenues from operating and using the multipurpose facilities among the municipalities and any participating Indian tribe or community.
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. 9. 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 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 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, except that monies paid to the district pursuant to section 42-5031 may only be used for the following purposes until a notice to proceed is issued for a hotel and convention center located on as a primary or secondary component of the multipurpose facility site as defined in section 48-4201, paragraph 4, subdivision (a) or (b):
1. Debt service for bonds issued by the district before January 1, 2009.
2. Contractual obligations incurred by the district before June 1, 2009.
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. Any component of the multipurpose facility or other commercial real estate development under subsection B of this section may include privately‑owned projects as follows:
1. The project must comply with all applicable municipal codes.
2. In the board's judgment, the project must either:
(a) Substantially increase tax revenue, employment or public pedestrian traffic at the project site.
(b) Create an extraordinary increase in tax revenue, employment or public pedestrian traffic throughout all or part of the district.
3. Any financial assistance for the project may not violate article IX, section 7, Constitution of Arizona, relating to donations or grants of public monies.
4. The developer may transfer to the district, and the district may accept and hold one or more conservation easements over the project pursuant to title 33, chapter 2, article 4 in return for financial assistance from the district to the project.
C. 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.
D. 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.
E. 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.
F. 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.
G. 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.
Sec. 10. Section 48-4231.01, Arizona Revised Statutes, is amended to read:
48-4231.01. Financial and performance audits of districts owning multipurpose facilities; appearance before joint committee on capital review
A. Beginning in 2010 and every three years thereafter, the auditor general shall contract with an independent auditor to conduct a performance audit as defined in section 41-1278, including a financial audit, of each district organized under section 48-4202, subsection B. The independent auditor must have national status with expertise in evaluating public construction, ownership and management of capital improvements that include hospitality, convention and sports venue facilities. The audit must be completed within one hundred twenty days after the end of the fiscal year.
B. The audit shall include consideration of:
1. Capital costs, including debt service, of the multipurpose facility and other assets of the district.
2. The level of the district's indebtedness, the amount of principal, interest and other debt service expenses paid in the preceding fiscal year and the remaining term to maturity with respect to each outstanding bond issue.
3. Operation and maintenance costs of the multipurpose facility and other assets of the district.
4. The district's overall expenditures in the preceding fiscal year, including:
(a) The level of expenses for administration, planning, travel and entertainment.
(b) The success of those expenditures in supporting and achieving the district's purposes.
5. A description of and the amount of municipal payments pursuant to section 42-5031, subsection D C during the preceding fiscal year and the cumulative amount of those payments through the end of the preceding fiscal year.
6. The public use of each component of the multipurpose facility.
7. Revenues derived from each component of the multipurpose facility and other revenues of the district by source.
8. District projects that are currently under construction and that are included in the district's plans for capital improvements and investment.
C. The audit shall make findings and recommendations regarding the construction, financing, operation and maintenance of each component of the multipurpose facility, including whether the facility exceeds, meets or fails to meet nationally recognized design and performance standards.
D. The district and the board of directors shall cooperate with and submit to the auditor general and the auditor contracted to conduct the audit information necessary to conduct and complete the audit in a timely manner.
E. Within forty-five days after the audit is released, the board of directors shall:
1. Hold a public hearing on the audit's findings and recommendations and allow any person to make or submit oral or written comments on the audit.
2. By majority vote adopt a public response agreeing, agreeing with reservations or disagreeing with each finding and recommendation in the audit.
F. The auditor general shall distribute copies of the audit and the board of director's response to:
1. The mayor and governing body of the municipality in which the district is located.
2. The governor.
3. The president of the senate and the speaker of the house of representatives.
4. The department of revenue and the state treasurer.
5. The secretary of state.
6. Any other person who requests a copy of the audit.
G. The cost incurred by the auditor general in contracting with independent auditors under this section is an operating expense of the district and shall be paid from revenues payable to the district pursuant to section 42-5031. The auditor general shall deposit the payments in the audit services revolving fund established by section 41-1279.06.
H. At the request of the chairperson of the Joint committee on capital review, the executive director or a representative of the board of directors shall appear before the joint committee on capital review to report on any aspect of the district's operation, including the activities and financial performance of the district during the previous fiscal year, the district's plans for capital improvements and investment and the district's response to the audit conducted under this section.
Sec. 11. Section 48-4237, Arizona Revised Statutes, is amended to read:
48-4237. 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 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. The board of directors shall present the question to the governing bodies of the participating municipalities. 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 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 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 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.
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 E of this section.
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.
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.
F. Unless the context otherwise requires, section 42‑6102 governs the administration of any tax imposed under this section.
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.
H. In addition to other requirements prescribed by law, the board shall prepare, print and distribute publicity pamphlets concerning the proposed 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 E of this section.
