SB1116 - 451R - House Bill Summary

House of Representatives

SB 1116

arts facility authority

Sponsors: Senators Cirillo, Mitchell; Representatives Blendu: Gleason

DP	Committee on Counties & Municipalities
DP	Committee on Public Institutions & Rural Affairs
X	Caucus and COW
	As Passed the House

SB 1116 permits the governing bodies of one or more cities or towns and the board of supervisors of a county to establish municipal and county arts facility (MCAF) authorities. The bill outlines the powers and duties of the authorities and provides bonding and termination procedures.

History

The Arizona Commission on the Arts was established on a statewide level in 1967 to stimulate and encourage throughout the state the study and presentation of the performing arts, fine arts, and public interest and participation therein. The Commission is also required to take necessary and appropriate steps to encourage public interest in the cultural heritage of Arizona and to expand the state’s cultural resources.

SB 1116 provides a statutory mechanism to allow for the formation of a local multijurisdictional arts authority to provide central funding and control of arts related events and facilities.

Provisions

· Allows the governing bodies of one or more cities or towns and the county board of supervisors to establish an MCAF authority to include the incorporated areas of the city or town and the unincorporated areas of the county.

· Requires the city or town governing bodies and the county board of supervisors that participate in the MCAF authority to:

Ø Adopt a resolution stating the name and boundaries of the proposed authority, the necessity of the proposed authority, a general statement of facilities and services to be provided by the authority and other matters the board deems necessary.

Ø Properly notice and conduct a public hearing on the resolution. After the hearing has taken place each participant shall declare its findings and order the formation of the authority under the designated corporate name.

Ø File a certified copy of the proceedings with the county recorder.

· Stipulates that established MCAF authorities shall be corporate bodies with the powers and immunities of a municipal corporation, including the exemption of its property and bonds from taxation and shall be considered a tax levying public improvement district.

· Requires a board of directors to govern the MCAF authority and provides powers of the board.

· Stipulates that at a minimum, the board shall consist of the mayor from each participating city or town and a member of the board of supervisors as designated by the chairman of the board of supervisors.

· Provides that the board shall appoint from its members a chairman, secretary and treasurer and other officers it deems necessary. Stipulates other duties of the board.

· Allows the MCAF authority, through its board of directors, to issue negotiable MCAF authority bonds in a principal amount as necessary to provide sufficient monies for its activities, to maintain sufficient reserves in the MCAF authority fund to secure the bonds, to pay costs associated with issuing the bonds and other operating expenses.

· Requires the MCAF authority board of directors to authorize the bonds by resolution and stipulates the resolution shall prescribe:

Ø The rate or rates of interest and the denominations of the bonds.

Ø The date or dates of the bonds and maturity, not exceeding 20 years.

Ø The coupon or registered form of the bonds.

Ø The manner of executing the bonds.

Ø The medium and place of payment.

Ø The terms of redemption.

· Outlines procedures for the sale of the bonds and provisions that the board of directors may adopt by resolution, in order to secure the principal and interest on the bonds.

· Stipulates that any monies received by the treasurer of the authority shall be placed in the MCAF authority fund and are immediately subject to the lien of the pledge without any future physical delivery or further act.

· Stipulates that members of the board of directors or any person executing the bonds shall not be held personally liable for the payment of the bonds.

· Allows MCAF authority boards to submit bonds to the county attorney or other legal counsel after all proceedings for their authorization have been completed. Requires counsel to examine and pass on the validity of the bonds and the regularity of the bond proceedings. Requires counsel to certify on the back of each bond that it is issued according to the Arizona Constitution and state law.

· Outlines bond obligations and investment authority.

· Requires MCAF authority boards, no later than June 30 of each year, to hold a public hearing to adopt and submit to the governing body of each municipality and to the county board of supervisors a budget for the following fiscal year.

· Outlines what the annual budget shall include and allows the budget to be amended during the year to account for unanticipated revenues received.

· Requires the treasurer of the MCAF authority board to establish and maintain a MCAF authority fund and provides elements of what the fund may include.

· Stipulates that in order to enhance the security of the bonds, the board of directors by resolution may segregate the fund into one or more accounts and sub-accounts and provide that bonds issued are secured by a first lien on any monies paid into those accounts.

· Outlines for which purposes monies in the fund may be used for.

· Provides powers and duties of the MCAF authority board treasurer relating to investment of fund monies.

· Requires the MCAF authority board to subject the fund to an annual audit by an independent certified public accountant within 30 days after the end of the fiscal year. Requires the audit be filed with the Auditor General who may then make additional audits. Specifies that an audit is deemed sufficient if the Auditor General takes no official action within 30 days.

· Requires the MCAF authority to pay for any audit related costs of the independent audit with MCAF authority fund monies.

· Stipulates that the governing body of the city or town or the board of supervisors may terminate its participation in the authority if it deems the authority is no longer in the public interest, convenience or necessity.

· Requires all MCAF authorities to include at least two cities or towns or one city or town and the county in order to operate and states that any termination is effective from and after the following June 30.

· States that upon termination, the county shall assume all outstanding liabilities and obligations of the MCAF authority and the assigns all assets of the authority to the county.

SB 1116 passed the Counties & Municipalities Committee unamended.

SB 1116 passed the Public Institutions & Rural Affairs Committee unamended.

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45th Legislature