ARIZONA HOUSE OF REPRESENTATIVES FIRST REGULAR SESSION - 1999

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_DPA_ For Committee on GOVERNMENT REFORM

_____ For Committee on ______________________________________

__X__ For Caucus and COW

_____ As Passed the House

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Abstract for HB 2616 (stadium district; multipurpose sport facility) Sponsors: Gardner W, Marsh, Cooley: Anderson, Groscost, Jarrett

Modifies current law relating to financing, construction, operation and formation of a county stadium district multipurpose facility.

Provisions

Clarifies that a county stadium district is authorized to use monies received from the state treasurer to secure bonds and other financial obligations to construct a multipurpose facility.

Provides that the amount to be received by the district is based on one-half the amount of state transaction privilege tax (TPT) collected in the district in the second previous month rather than an average of the amount collected in the prior year.

Limits the period of time that TPT proceeds can be used to repay bonds to 10 years after construction of the primary component of the facility is complete. Current law allows payment of TPT to continue until bonds are paid off or for 10 years after the bonds are issues, whichever is first.

Provides that in order to receive a portion of TPT, the first phase of the district must cost more than $200 million to construct.

Expands the definition of "multipurpose facility" to include secondary components (parking garages and parking lots, infrastructure and related commercial and residential facilities)

Defines "bond" to include any obligation, including lease-purchase and installment purchase agreements, and certificates of participation.

Limits the taxing authority of a district to that provided for by an intergovernmental agreement, ordinance or resolution authorizing the district.

Allows the board of directors of the district to:

- adopt rules providing for weighted voting by board members and to establish conditions to terminate the district;

- use TPT revenue to construct, operate, maintain and repair any part of a multipurpose facility;

- enter into agreements with developers, contractors, tenants and other users affiliated with the facility;

- pledge TPT revenue to secure bonds and other financial obligations for the facility.

Exempts the state and political subdivisions from liabilities (both financial and other obligations) of the district.

Specifically allows the district to use any other monies available to the district to build, operate and maintain a multipurpose facility.

Authorizes a district to use design-build method of construction for any of its structures, whether owned or leased.

Exempts two or more municipalities in the same county from election requirements relating to the time between a call for an election and the election date.

Makes technical and conforming changes, including several relating to blending multiple enactments.

The bill contains a retroactive date of July 1, 1998 which has the effect of allowing a stadium district established since that date to utilize the provisions of this bill.

HB 2616 was amended in the Government Reform Committee as follows:

Provided that the recapture payments could begin on commencement of construction and continue for 10 years. The original draft of the bill allowed for the recapture payments to begin after construction was completed.

Clarified that the district must own or lease the land that the multi-purpose facility is located on. The original draft of the bill allowed the district to just have permission to use the land for the multi-purpose facility.

Clarified the district's liability and the district's ability to use design build for the construction of the facility.

Made other technical and clarifying changes.

Prepared by: Elizabeth Hatch, Lee Payne

hb2616.cow 2/18/99 bh

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