ARIZONA STATE SENATE
Phoenix, Arizona
CORRECTED
arts facility authority
Purpose
Authorizes the creation and
termination of a municipal and county arts facility (MCAF) authority. Provides
powers and duties of the MCAF authorities, including issuing MCAF authority
bonds.
Background
The Arizona Commission on
the Arts was established as a state council by executive order of Governor
Goddard in January 1966. In 1967, the
Commission was recognized as a permanent state agency. The Commission’s mission is to enhance the
artistic development of all Arizona communities, arts organizations and artists
through partnership and stewardship of public funds. The Commission works to stimulate and encourage public interest
in the cultural resources through the study and presentation of the performing
arts and fine arts. The Commission is
required to take such steps as may be necessary and appropriate to encourage
public interest in the cultural heritage of Arizona and to expand the State’s
cultural resources.
While the Commission works
at the statewide level to carry out its goals, presently no statutory mechanism
exists to allow for the creation of a multijurisdictional entity authorized to
provide centralized control and funding of arts related facilities and
events. This legislation allows
municipalities, community college districts and counties to jointly participate
in the creation of an MCAF authority.
The creation of such an authority will allow for more local control of
arts infrastructure.
There is no anticipated
fiscal impact to the state general fund associated with this legislation.
Provisions
1. Allows the governing bodies of one or more cities or towns, a community college district governing board and the board of supervisors of a county to establish an MCAF authority to include the incorporated areas of a city or town, the community college district and the unincorporated areas of the county and to pay the necessary costs of formation with any monies available for that purpose.
2. Details the requirements of the hearing on the resolution to establish an MCAF authority.
3. Requires each governing body, the community college district governing board and the board of supervisors to declare the findings of the hearing and order the formation of the MCAF authority under the designated corporate name if it appears to the participating entities that the public interest, convenience and necessity will be served by establishing the MCAF authority. Requires a certified copy of the declaration proceedings to be filed with the county recorder.
4. Provides elements of the resolution: the authority’s name, boundaries, the necessity for the authority, a general statement of the facilities and the services to be provided and other matters deemed necessary by the board.
MCAF Authority Powers and Duties
5. Establishes MCAF authorities as corporate bodies with the powers and immunities of municipal corporations, including exemption of their property and bonds from taxation, and as political subdivisions of the state through consideration as public improvement districts.
6. Exempts an MCAF authority from limitations on political subdivisions relating to granting credit, owning stock and becoming joint owner with any person, company or corporation.
7. Requires a board of directors to govern the MCAF authority. Provides powers of the board.
8. Requires the board of the MCAF to consist of the mayor of each participating municipality or the mayor’s designee, a member of the participating community college governing board as designated by the chairman of the community college district governing board or that member’s designee and a member of the participating board of supervisors as designated by the chairman of the board of supervisors or that member’s designee.
9. Requires the board of the MCAF to appoint a chairman, secretary, treasurer and any other necessary officers from their members, to keep records of their proceedings, to operate under the state’s open meeting and public record laws, to actively promote the MCAF authority property and to provide for property and facility maintenance and operation.
10. Requires the board of the MCAF to hold an annual public hearing before July 1 to adopt and submit a budget for the following fiscal year to the governing bodies of each municipality and to the board of supervisors.
11. Provides elements of the budget.
12. Allows the budget to be amended during the year to account for unanticipated revenues received after the budget has been adopted.
13. Requires the MCAF authority treasurer to maintain an MCAF authority fund.
14. Allows the fund to include monies stemming from bonds or municipal or county revenues directed to the MCAF authority, payments received from leasing, subleasing or renting facilities, revenues received from events held at authority facilities, interest and other income received from fund investments and gifts, grants and donations from any public or private source.
15. Allows the board of the MCAF authority to segregate the fund into one or more accounts and subaccounts and provide that MCAF authority bonds are secured by a first lien on all or part of the monies paid into any account or subaccount.
16. Limits use of MCAF authority fund monies to the administration and operating expenses of the authority, to required lease or sublease of facilities by the authority and to repaying and redeeming bonds issued by the authority, including interest and redemption charges.
17. Provides powers and duties of the MCAF authority board treasurer relating to investment of fund monies.
18. Requires the board of the MCAF authority 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 to 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.
19. Requires the board of the MCAF authority to pay for all audit related costs of the independent certified public accountant and the Auditor General with MCAF authority fund monies.
20. Allows the MCAF authority, through its board, to issue negotiable MCAF authority bonds in an amount necessary to provide for its activities, to maintain sufficient reserves to secure the bonds, to pay necessary costs related to the bonds and to pay other MCAF authority expenses.
21. Requires the board of directors of the MCAF authority to authorize bonds by resolution. Provides required elements of the resolution.
22. Requires MCAF authority bonds to be sold by competitive bid or negotiated sale at a public or private offering at price, at or below par and on the terms determined by the MCAF authority board, and for such sales to be noticed in a manner consistent with market practice.
23. Provides allowed methods for securing the principal and interest on MCAF authority bonds, for purchase and cancellation of bonds by the MCAF authority boards and the priority of liens and pledges upon bond revenues.
24. Exempts MCAF authority board members from personal liability for payment of MCAF authority bonds. Stipulates that bonds bearing MCAF authority board member signatures prior to delivery of the bonds immediately terminates the individual’s membership on the board and that the bonds are incontestable by the board after their sale and delivery.
25. Allows the board of an MCAF authority to submit bonds to the county attorney or other legal counsel after all proceedings for their authorization are completed. Requires such 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.
26. Provides bond obligations and investment authority.
27. Allows a participating governing body of a municipality, the community college district governing board or the county board of supervisors to terminate its participation in an MCAF authority if it determines that the authority is no longer in the public interest, convenience or necessity.
28. Requires all MCAF authorities to include at least two municipalities or at least one municipality and the county in order to continue to operate. Terminates MCAF authorities if the minimum level of participation is not met. Provides termination procedures and establishes such terminations as effective on the following July 1.
29. Assigns all outstanding liabilities, obligations and all assets of the MCAF authority to the state.
30. Provides for a general effective date.
Prepared by Senate Staff
January 31, 2002