Assigned to GES FOR CAUCUS & FLOOR ACTION

ARIZONA STATE SENATE

Phoenix, Arizona
REVISED

FACT SHEET FOR H.B. 2640
stadium districts; eminent domain

Purpose

Sets forth standards for the use of eminent domain by a multipurpose facilities district to acquire real and personal property of an existing retail business.

Background

Pursuant to §48-4203, Arizona Revised Statutes, the board of directors of a multipurpose facilities district, may on behalf of the district, acquire real and personal property, and interests in property, by eminent domain. H.B. 2640 requires a district to establish clear and convincing evidence, prior to acquiring retail property through the use of eminent domain and that the acquisition is compatible with the greatest public good and the least private injury.

H.B. 2640 also clarifies that a multipurpose facilities district is a "displacing agency." This designation requires districts to follow relocation assistance procedures, including project planning that identifies actions that may cause displacements and provides problem resolution to minimize adverse impacts. Relocation assistance also requires a displacing agency to make a payment to a displaced person for actual reasonable moving expenses, actual direct losses of tangible personal property as a result of moving or discontinuing a business, actual reasonable expenses for searching for a replacement business and actual reasonable expenses to reestablish a small business at its new site.

There is no general fund impact.

Provisions

1. Requires a multipurpose facilities district, prior to utilizing its power of eminent domain, to establish by clear and convincing evidence that the acquisition is compatible with the greatest public good and the least private injury. Applies this requirement to the acquisition of real or personal property of existing retail commercial businesses in the district.

2. Specifies the question of compatibility is a judicial one, to be determined without regard to any legislative assertion of compatibility.

3. Designates that a district is considered a displacing agency for the purpose of providing relocation assistance.

4. Limits the ability to form a multipurpose facilities district from and after December 31, 1998. Specifies that a multipurpose facilities district may only be formed after December 31, 1998 if, prior to that date, the governing body of one or more of the municipalities identified the location of the proposed multipurpose facilities district and voted with the purpose of forming the proposed district.

5. Adds a conditional repeal of statute authorizing the board of directors of a multipurpose facilities district to levy taxes, including a transaction privilege tax.

FACT SHEET H.B. 2640 - Revised Page

6. Makes conforming changes.

7. Applies this act retroactively to June 30, 1998.

Amendments Adopted by GES Committee

1. Limits the ability to form a multipurpose facilities district from and after December 31, 1998.

2. Specifies criteria to be met to form a multipurpose facilities district after December 31, 1998.

3. Adds a conditional repeal of statute authorizing the board of directors of a multipurpose facilities district to levy taxes.

House Action Senate Action

GOV REF 2/10/99 DP 5-0-1-1 GES 3/22/99 DPA 9-0-0-0

3rd Read 3/1/99 31-22-7-0

Prepared by Senate Staff

March 23, 1999

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