House of Representatives

HB 2378

parks and recreation district

Sponsors: Representatives McClure, Somers, Binder, et al.

dp	Committee on Counties & Municipalities
W/D	Committee on Public Institutions & Rural Affairs
x	Committee on Ways & Means
	Caucus and COW
	Third Read
	As Passed the House

HB 2378 permits the governing bodies of one or more cities or towns and the board of supervisors (Board) of one or more counties, upon a public vote, to establish a Parks and Recreation District (District). The bill outlines District formation, the powers and duties of the District and provides taxation and termination procedures.

Current Status

HB 2378 passed the Counties & Municipalities Committee unamended.

History

Current law provides for the formation of 29 different special taxing districts. HB 2378 would allow a county to form a special district for the purpose of establishing, operating and maintaining parks, recreation and cultural facilities. Cities and towns within a county may join the district. In addition, the district could include more than one county. As with other special districts, a proposed parks and recreation district must be approved by the voters, along with the funding. If approved, the district would be funded primarily from a ¼ cent transaction privilege tax.

According the County Supervisors Association, Santa Cruz County has brought forth the proposal for the establishment of a parks and recreation district. Other counties that have expressed an interest in a possible parks and recreation district are Maricopa and Pinal Counties. Currently, Santa Cruz County has a general county excise tax of .5%. There are two incorporated cities within Santa Cruz County, Nogales and Patagonia. The current transaction privilege tax rate in Nogales is 1.25% and 3.0% in Patagonia.

Provisions

· Allows the governing bodies of one or more cities and the Board, upon receipt by the Board of a petition signed by at least 10% of the qualified electors of the county, to resolve to establish a District to include the incorporated areas of the city or town and the unincorporated areas of the county.

· Requires the petition for formation to include the following.

Ø The name of the proposed District.

Ø The necessity for the district, including a statement that the public interest, convenience and necessity will be promoted by establishing the District.

Ø A general statement of the parks, recreation and cultural facilities and services to be provided by the District.

· Requires the Board to properly notice and conduct a public hearing on the resolution. After the hearing has taken place, the Board shall declare its findings and order that an election be held on the matter at the next regular general election.

· States that if established, the District shall be a corporate body with the powers and immunities of a municipal corporation, including the exemption of its property and bonds from taxation.

· Requires a board of directors to govern the District and outlines its membership.

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

· Requires the any participating Board or city or town to place on the ballot, at the next general election, the question of the transaction privilege tax along with the question of the formation of the district.

· States that if the formation and taxation questions are approved by a majority of qualified voters in the unincorporated areas of the county and by qualified voters in participating cities or towns, then the board of directors may levy a transaction privilege tax of not more than 5% of the state tax rate applying on January 1, 2001.

· Stipulates that the tax is effective January 1 or July 1, whichever date first occurs at least three months after the board of directors levies the tax.

· Requires the State Treasurer to transmit the net revenues collected each month from the tax to the district treasurer and stipulates the district treasurer shall deposit those funds in the Parks and Recreation District Fund (Fund).

· Requires the district treasurer to maintain the Fund and states the Fund may include:

Ø Proceeds of any transaction privilege tax levied by the District.

Ø Interest and other income received from investing monies in the Fund.

Ø Gifts, grants and donations received from any public or private source.

· Stipulates monies in the Fund may only be used for the following purposes:

Ø Ordinary and necessary administration and operation expenses of the district.

Ø Distributing the proceeds of any transaction privilege tax levied by the District. Monies shall be distributed quarterly among participating cities, towns and counties based on population.

· Requires the District 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 District board to pay for any audit related costs of the independent audit with Fund monies.

· Outlines termination procedures for the District.

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· 45th Legislature

· Second Regular Session 3 March 15, 2002

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