Reference Title: Gila river bridge

AN ACT
AMENDING SECTION 28-401, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1995, CHAPTER 147, SECTION 2; AMENDING TITLE 28, CHAPTER 21, ARIZONA REVISED STATUTES, BY ADDING ARTICLE 4; AMENDING SECTION 42-1341, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 186, SECTION 3; AMENDING TITLE 42, CHAPTER 8, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 42-1342; RELATING TO BRIDGE FINANCING.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-401, Arizona Revised Statutes, as amended by Laws 1995, chapter 147, section 2, is amended to read:

28-401 . Intergovernmental agreements

A. The department may contract under title 11, chapter 7, article 3 with a state public agency in this state or any other state if the general welfare of this state will be promoted and protected and if not in conflict with any other provision of law.

B. The director shall enter into agreements on behalf of this state with political subdivisions or Indian tribes for the improvement or maintenance of state routes or for the joint improvement or maintenance of state routes.

C. THE DEPARTMENT MAY ENTER INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO TITLE 11, CHAPTER 7, ARTICLE 3 WITH A COUNTY WITH A POPULATION OF MORE THAN TWO MILLION PERSONS ACCORDING TO THE MOST RECENT UNITED STATES DECENNIAL CENSUS FOR THE CONSTRUCTION, DESIGN, ACQUISITION AND ATTENDANT ACQUISITION COSTS OF A COUNTY HIGHWAY BRIDGE TO PROVIDE DIRECT ACCESS TO COMMERCIAL, RESIDENTIAL AND RECREATIONAL FACILITIES. THE AGREEMENT SHALL:

1. CONTAIN THE COMMITMENT OF THE COUNTY TO PAY OTHER MONIES FOR THE PURPOSE OF FINANCING THE BRIDGE.

2. STATE THE RESPONSIBILITIES OF EACH PARTY WITH REGARD TO PLANNING, DESIGNING, CONSTRUCTING, OWNING AND MAINTAINING THE BRIDGE.

3. PROVIDE THAT PAYMENT FOR THE COSTS OF THE BRIDGE SHALL BE MADE FROM CONTRIBUTIONS FROM THE PARTIES TO THE AGREEMENT AND OTHER CONTRIBUTORS BEFORE THE USE OF STATE TRANSACTION PRIVILEGE TAX DISTRIBUTIONS.

Sec. 2. Title 28, chapter 21, Arizona Revised Statutes, is amended by adding article 4, to read:

Article 4. Bonds secured by bridge construction revenues

28-7651 . Definitions

IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

1. "BOND" MEANS A BOND SECURED SOLELY BY BRIDGE CONSTRUCTION REVENUES AS AUTHORIZED AND ISSUED PURSUANT TO THIS ARTICLE.

2. "BRIDGE CONSTRUCTION REVENUES" MEANS MONIES RECEIVED PURSUANT TO SECTION 42-1342 AND DEPOSITED IN THE INTEREST FUND OR REDEMPTION FUND UNDER SECTION 28-7656.

28-7652 . Agreement for construction of bridge

A. THE DEPARTMENT AND A COUNTY WITH A POPULATION OF MORE THAN TWO MILLION PERSONS ACCORDING TO THE MOST RECENT UNITED STATES DECENNIAL CENSUS MAY ENTER INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO TITLE 11, CHAPTER 7, ARTICLE 3 FOR THE CONSTRUCTION OF A BRIDGE TO PROVIDE DIRECT ACCESS TO COMMERCIAL, RESIDENTIAL AND RECREATIONAL FACILITIES.

B. THE AGREEMENT SHALL:

1. CONTAIN THE COMMITMENT OF THIS STATE AND THE COUNTY TO TRANSFER BRIDGE CONSTRUCTION REVENUES TO THE COUNTY TREASURER FOR DEPOSIT IN THE INTEREST FUND OR REDEMPTION FUND UNDER SECTION 28-7656 FOR THE PURPOSE OF FINANCING THE CONSTRUCTION, DESIGN, ACQUISITION AND ATTENDANT ACQUISITION COSTS OF THE BRIDGE.

2. CONTAIN THE COMMITMENT OF THE COUNTY TO PAY OTHER MONIES FOR THE PURPOSE OF FINANCING THE BRIDGE.

3. INCLUDE THIS STATE'S PLEDGE OF SUFFICIENT BRIDGE CONSTRUCTION REVENUES TO FULFILL THIS STATE'S OBLIGATION FOR FUNDING THE BRIDGE.

4. STATE THE RESPONSIBILITIES OF EACH PARTY WITH REGARD TO PLANNING, DESIGNING, CONSTRUCTING, OWNING AND MAINTAINING THE BRIDGE.

5. PROVIDE THAT PAYMENT FOR THE COSTS OF THE BRIDGE SHALL BE MADE FROM CONTRIBUTIONS FROM THE PARTIES TO THE AGREEMENT AND OTHER CONTRIBUTORS BEFORE THE USE OF BOND PROCEEDS.

28-7653 . Bonds secured by bridge construction revenues

A. IF A MAJORITY OF THE MEMBERS OF THE COUNTY BOARD OF SUPERVISORS AUTHORIZES THE ISSUANCE OF BONDS BY RESOLUTION DATED BEFORE JULY 1, 1998, THE COUNTY MAY ISSUE THE BONDS SO AUTHORIZED IN THE MANNER PROVIDED IN THIS ARTICLE. THE BONDS MAY BE AUTHORIZED IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT MORE THAN FIVE MILLION DOLLARS.

B. THE BONDS SHALL NOT BE CONSIDERED TO BE A DEBT OF THE COUNTY OR THE STATE WITHIN ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT.

C. WHEN THE BONDS ARE SOLD, A SCHEDULE SHALL BE FILED WITH THE COUNTY TREASURER SHOWING THE AMOUNTS OF PRINCIPAL AND INTEREST TO BE PAID AT EACH PRINCIPAL AND INTEREST PAYMENT DATE.

D. THE COUNTY SHALL PLEDGE ALL OR ANY PART OF THE BRIDGE CONSTRUCTION REVENUES TO BE RECEIVED AND THE COUNTY'S RIGHTS IN THE INTERGOVERNMENTAL AGREEMENT TO THE PAYMENT OF AN AMOUNT OF THE BONDS. THIS PLEDGE CONSTITUTES AN IRREVOCABLE ASSIGNMENT TO THE OFFICER CHARGED WITH PAYING THE BONDS THAT IS BINDING ON THE COUNTY. NO NOTICE OF THE ASSIGNMENT NEED BE FILED OR RECORDED AND NO PUBLIC NOTICE OF ANY NATURE IS REQUIRED TO MAKE THE PLEDGE EFFECTIVE AGAINST ANY PERSON CLAIMING AN INTEREST IN THE BRIDGE CONSTRUCTION REVENUES EXCEPT A HOLDER OF THE BONDS. ON RECEIPT OF ANY PAYMENT OF BRIDGE CONSTRUCTION REVENUES, THE COUNTY TREASURER SHALL CAUSE A SUFFICIENT PORTION OF THE AMOUNT RECEIVED TO BE DEPOSITED IN THE REDEMPTION FUND AND INTEREST FUND ESTABLISHED UNDER SECTION 28-7656 PERTAINING TO THE BONDS.

E. NO BONDHOLDER MAY CLAIM A PREFERENCE AS TO SOURCE OF PAYMENT OVER ANY OTHER BONDHOLDER OF THE SAME SERIES.

28-7654 . Issuance of bonds

A. THE COUNTY BOARD OF SUPERVISORS IS AUTHORIZED TO ISSUE BONDS SECURED BY A PLEDGE OF BRIDGE CONSTRUCTION REVENUES.

B. THE BONDS MAY BE ISSUED IN ONE OR MORE SERIES, BEAR THE DATES, BE PAYABLE IN THE MEDIUM OF PAYMENT AND AT THE PLACES, BEAR THE RATES OF INTEREST, INCLUDING VARIABLE RATES, CARRY THE REGISTRATION PRIVILEGES AND PRIOR REDEMPTION PROVISIONS, BE EXECUTED IN THE MANNER, CONTAIN THE OTHER TERMS, COVENANTS AND CONDITIONS AND BE IN THE FORM THE BOARD OF SUPERVISORS PRESCRIBES. THE BONDS SHALL BE SOLD AT, ABOVE OR BELOW PAR IN THE MANNER AS THE BOARD OF SUPERVISORS DETERMINES.

28-7655 . Characteristics of bonds

THE BONDS ISSUED UNDER THIS ARTICLE:

1. ARE FULLY NEGOTIABLE WITHIN THE MEANING AND FOR ALL PURPOSES PROVIDED BY TITLE 47.

2. ARE PAYABLE ONLY ACCORDING TO THEIR TERMS FROM BRIDGE CONSTRUCTION REVENUES AND ARE NOT GENERAL, SPECIAL OR OTHER OBLIGATIONS OF THE ISSUING COUNTY OR THIS STATE. THE BONDS DO NOT CONSTITUTE A LEGAL DEBT OF THIS STATE AND ARE NOT ENFORCEABLE AGAINST THIS STATE. PAYMENT OF THE BONDS SHALL NOT BE MADE FROM ANY MONIES OTHER THAN THOSE ALLOWED TO BE PLEDGED.

28-7656 . Interest fund; redemption fund

THE TREASURER OF THE COUNTY ISSUING THE BONDS SHALL ESTABLISH AN INTEREST FUND AND A REDEMPTION FUND FOR PAYING THE BONDS. THE TREASURER SHALL DEPOSIT INTO THE FUNDS BRIDGE CONSTRUCTION REVENUES IN AMOUNTS SUFFICIENT TO PAY THE INTEREST AND PRINCIPAL OF THE BONDS AS THEY MATURE. THE FUNDS SHALL BE USED SOLELY TO PAY PRINCIPAL AND INTEREST ON THE BONDS.

28-7657 . Pledge of revenues to secure debt instruments

A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, A COUNTY THAT RECEIVES BRIDGE CONSTRUCTION REVENUES MAY PLEDGE, BY SEPARATE COVENANT INCLUDED IN THE RESOLUTION AUTHORIZING THE ISSUANCE OF ANY BONDS UNDER THIS ARTICLE OR OBLIGATIONS IT MAY INCUR, FUTURE RECEIPTS OF THE REVENUES TO THE PAYMENT OF THE BONDS OR TO THE COSTS OF THE BRIDGE. THE PLEDGE MAY BE INCLUDED IN THE RESOLUTION AUTHORIZING THE ISSUANCE OF THE BONDS.

B. THE RESOLUTION AUTHORIZING THE BONDS MAY ALSO AUTHORIZE ASSIGNING BRIDGE CONSTRUCTION REVENUES TO A TRUSTEE OR PAYING AGENT TO SECURE THE BONDS.

28-7658 . Agreement of state

A. THIS STATE PLEDGES TO AND AGREES WITH THE HOLDERS OF THE BONDS THAT IT WILL NOT LIMIT, ALTER OR IMPAIR THE RIGHTS VESTED IN A COUNTY UNDER THIS ARTICLE TO RECEIVE BRIDGE CONSTRUCTION REVENUES NECESSARY TO PRODUCE SUFFICIENT REVENUE TO FULFILL THE TERMS OF ANY INTERGOVERNMENTAL AGREEMENTS MADE WITH THE COUNTY, OR IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS TO RECEIVE BRIDGE CONSTRUCTION REVENUES, UNTIL ALL BONDS ISSUED UNDER THIS ARTICLE, ARE FULLY MET AND DISCHARGED.

B. THE COUNTY MAY INCLUDE THIS PLEDGE AND UNDERTAKING IN ITS RESOLUTIONS AND INDENTURES SECURING THE BONDS UNDER THIS ARTICLE.

28-7659 . Supplemental law

THIS ARTICLE IS SUPPLEMENTAL AND ALTERNATIVE TO ANY OTHER PROVISION OF LAW THAT ALSO ENABLES A COUNTY TO ISSUE ANY FORM OR TYPE OF BONDS.

Sec. 3. Section 42-1341, Arizona Revised Statutes, as amended by Laws 1996, chapter 186, section 3, is amended to read:

42-1341 . Remission and distribution of monies

A. The department shall transmit all revenues collected under this article and chapters 8.1, 9.2 and 11 of this title to the state treasurer pursuant to section 42-127, separately accounting for payments of estimated tax under section 42-1322, subsection D and revenues collected pursuant to section 42-1310.10. The state treasurer shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account on notification by the department of the allocation of monies. The state treasurer shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-1317, 42-1465, 42-1573 and 42-1725. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and chapters 8.1, 9.2 and 11 of this title.

B. Each month the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-1465, 42-1573 and 42-1725, after deducting warrants drawn against the account pursuant to sections 42-124 and 42-129.

C. Of the monies designated as distribution base the state treasurer shall:

1. Pay twenty-five per cent to the various incorporated municipalities in this state in proportion to their population as shown by the last United States decennial or special census, or revisions to the decennial or special census certified by the United States bureau of the census, to be used by the municipalities for any municipal purpose.

2. Pay 38.08 per cent to the counties in this state by averaging the following proportions:

(a) The proportion that the population of each county bears to the total state population, as shown by the most recent United States decennial or special census, or revisions to the decennial or special census certified by the United States bureau of the census.

(b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-1465, subsection B, section 42-1573 and section 42-1725 bear to the total distribution base monies collected under this article, section 42-1465, subsection B, section 42-1573 and section 42-1725 throughout the state for the calendar month.

3. Pay an additional 2.43 per cent to the counties in this state as follows:

(a) Average the following proportions:

(i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item.

(ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-1465, subsection B, section 42-1573 and section 42-1725 bear to the total distribution base monies collected under this article, section 42-1465, subsection B, section 42-1573 and section 42-1725 throughout the state for the calendar month.

(b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the state treasurer shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection.

4. After any distributions required by section SECTIONS 42-1342 AND 42-1342.01, credit the remainder of the monies designated as distribution base to the state general fund. From this amount the legislature shall annually appropriate to:

(a) The department sufficient monies to administer and enforce this article and chapters 8.1, 9.2 and 11 of this title.

(b) The department of economic security monies to be used for the purposes stated in title 46, chapter 1.

(c) The tourism fund an amount equal to the sum of the following:

(i) Two million dollars.

(ii) Seventy-five per cent of the amount by which revenues derived from a one-half percentage rate portion of the total tax rate imposed on the transient lodging classification for the current fiscal year, beginning with fiscal year 1990-1991, exceed the revenues derived from a one-half percentage rate portion of that tax in the previous fiscal year.

(d) The water quality assurance revolving fund two million nine hundred thousand dollars.

(e) The Arizona arts endowment fund established by section 41-986, the full amount by which revenues derived from the amusement classification pursuant to section 42-1310.13 for the current fiscal year exceed the revenues that were derived from that classification in fiscal year 1993-1994, except that this amount shall not exceed two million dollars in any fiscal year. This subdivision applies for fiscal years through June 30, 2007.

D. The state treasurer shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund.

E. Notwithstanding subsection C of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or chapters 8.1, 9.2 and 11 of this title and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. The department shall notify the state treasurer of that amount plus the proportionate share of additional allocated costs required to be paid to the taxpayer. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by one thirty-sixth of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten per cent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered.

Sec. 4. Title 42, chapter 8, article 1, Arizona Revised Statutes, is amended by adding section 42-1342, to read:

42-1342 . Distribution of bridge construction revenues to county; definitions

A. THROUGH JUNE 30, 2010, IF, BY JUNE 30, 1998, THE DEPARTMENT OF TRANSPORTATION ENTERS INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 28-7652 OR SECTION 28-401 FOR THE CONSTRUCTION OF A BRIDGE, THE STATE TREASURER SHALL PAY EACH MONTH, BEGINNING FROM AND AFTER JUNE 30, 1998, PURSUANT TO SECTION 42-1341, SUBSECTION C, PARAGRAPH 4, ONE-TWELFTH OF THE AMOUNT DETERMINED UNDER SUBSECTION B OF THIS SECTION TO A COUNTY THAT ISSUES BONDS PURSUANT TO TITLE 28, CHAPTER 21, ARTICLE 4 OR ENTERS INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 28-401.

B. THE AMOUNT TO BE PAID UNDER SUBSECTION A OF THIS SECTION IS THE AMOUNT OF STATE TRANSACTION PRIVILEGE TAX REVENUES RECEIVED EACH CALENDAR YEAR, UP TO FOUR HUNDRED SIXTEEN THOUSAND SIX HUNDRED SIXTY-SEVEN DOLLARS, FROM ALL PERSONS CONDUCTING BUSINESS UNDER ANY BUSINESS CLASSIFICATION UNDER THIS ARTICLE AT A SPORTS ENTERTAINMENT FACILITY, DESTINATION RESORT OR RETAIL CENTER THAT BOTH:

1. PRODUCES A TOTAL OF AT LEAST SIX HUNDRED THOUSAND DOLLARS EACH YEAR IN TRANSACTION PRIVILEGE TAX REVENUES TO THIS STATE PURSUANT TO THIS ARTICLE.

2. WILL ACQUIRE DIRECT COUNTY HIGHWAY ACCESS ACROSS A RIVER BY THE BRIDGE CONSTRUCTED.

C. THE DEPARTMENT SHALL REPORT THE AMOUNT UNDER SUBSECTION B OF THIS SECTION TO THE STATE TREASURER ON OR BEFORE MARCH 31 OF EACH YEAR FOR PAYMENT FOR THE FOLLOWING FISCAL YEAR.

D. FOR PURPOSES OF THIS SECTION:

1. "DESTINATION RESORT" MEANS A PERSON ENGAGED IN BUSINESSES CLASSIFIED UNDER BOTH THE TRANSIENT LODGING CLASSIFICATION AND THE AMUSEMENT CLASSIFICATION THAT PROVIDES ON-SITE RECREATIONAL FACILITIES SUCH AS A GOLF COURSE, TENNIS COURTS OR A RIDING STABLE.

2. "RETAIL CENTER" MEANS A COMPLEX CONSISTING OF AT LEAST TWO BUSINESSES CLASSIFIED UNDER THE RETAIL CLASSIFICATION.

3. "SPORTS ENTERTAINMENT FACILITY" MEANS A COMPLEX LOCATED ON AT LEAST THREE HUNDRED ACRES THAT REQUIRES A TICKET FOR ADMISSION FOR VIEWING A SPORTING EVENT.

Sec. 5. Effective date

This act is effective from and after September 30, 1997.