ARIZONA STATE SENATE
Phoenix, Arizona
food stamps; finger imaging
program
(NOW: TSA funding; voter approval)
Purpose
Places a moratorium on
current Tourism & Sports Authority (Authority) activities. Provides for a countywide election to be
held in 2002 to determine the continuation of the Authority.
Background
In 2000, the Legislature
created the Tourism & Sports Authority (Authority) for the purpose of
constructing, financing, maintaining, operating and promoting a multipurpose
facility (Facility), major league baseball spring training facilities and
community youth and amateur sports facilities (Laws 2000, Chapter 372). As defined in statute, a Facility is any
facility that is suitable to be used to accommodate sporting events and
entertainment, cultural, civic, meeting, trade show or convention events or
activities and may include a stadium, on-site infrastructure, parking garages
and lots and related commercial uses within the facility.
The Authority was required
to be established in a county that has a population of more than two million
persons, which limited the potential sites to within Maricopa County. The Authority has no power to levy taxes to
finance the new Facility. However, the
Authority does collect revenues from a car rental surcharge and a tax on hotels
and has the power to issue bonds and pledge revenues to secure those
bonds. Additionally, the Authority
recaptures the transaction privilege tax (TPT) revenues generated at the
Facility and income taxes generated by the Arizona Cardinals football
franchise, its players and employees.
H.B. 2654 places a
moratorium on current Authority activities and provides for a countywide
election to be held in 2002 to determine the continuation of the Authority.
Provisions
1. Places a moratorium on the following activities of the Authority (until the date of the election to electorally determine whether the Authority may continue with its statutory functions), as follows:
a)
Enter
into any contracts.
b)
Issue
any revenue bonds.
c)
Incur
any short-term debt before issuing bonds.
d)
Select
any site or enter into any agreement for a Facility or approve any Facility
designs.
2. Requires voter approval of the continued funding of the Authority at a countywide election to be held in 2002.
3. Requires the Authority and the county to enter into an intergovernmental agreement (IGA) to conduct the election before September 16, 2002.
4. Requires the ballot to include the issue of whether to continue the funding of the Authority and specifies that the question be submitted to the voters, as follows:
“Do you favor the continuation of the current funding and activities of the tourism and sports authority?”
5. Specifies that a “yes” vote continues the Authority’s activities of providing for a Facility, funding major league baseball spring training facilities and youth sports facilities and promoting local tourism.
6. Specifies that a “no” vote terminates the Authority and its efforts to find and construct a Facility, placing the Authority into receivership to pay its debts and obligations.
7. Requires the Authority and county to enter into an IGA to prepare and print publicity pamphlets and distribute a copy of the pamphlet at least ten days before the election to each household containing a registered voter in the county.
8. Requires the pamphlet to include:
a)
An
analysis of the activities of the Authority to date in providing for a Facility
and providing funding for major league baseball spring training and amateur and
youth sports facilities and tourism promotion.
b)
An
analysis of the Authority’s expenditures and obligations incurred and currently
outstanding.
c)
A
detailed statement of the public monies to be spent on the Facility and their
source, private monies to be spent and their source and any other monies and
assets.
d)
The
ballot’s format.
e)
Arguments.
9. Prescribes the submission of arguments and printing of ballots.
Removal of Authority Powers,
Duties And Responsibilities
10. Removes the Authority’s ability to incorporate and all the related rights, powers and immunities of a municipal corporation, including eminent domain, if the voters terminate the Authority.
11. Removes the Authority’s board of directors (Board) ability to assess charges for the use of facilities owned by the Authority, if the voters terminate the Authority.
12. Removes the Authority’s ability to enter into an IGA with the Arizona Exposition and State Fair Board for the joint use of properties and facilities and other matters that would be beneficial to the purposes of the Facility and the state fair, if the voters terminate the Authority.
13. Removes the Authority’s ability to be a tax levying public improvement district, if the voters terminate the Authority.
14. Revokes the Authority’s discretion to pledge revenues and other monies to secure bonds or other debt obligations, if the voters terminate the Authority.
15. Requires, by October 1, 2002, the Governor to appoint a Receiver for the Authority to complete the termination of the Authority, if the voters terminate the Authority.
16. Replaces and endows the Receiver, in lieu of the Board, with the Authority’s administrative powers and duties, if the voters terminate the Authority.
17. Specifies that the Authority or the Governor appointed receiver (Receiver), rather than the Board, has no independent authority to impose or collect a tax or assessment, if the voters terminate the Authority.
18. Charges the Receiver with the orderly termination of Authority activities and the disposition of Authority owned properties and interests, if the voters terminate the Authority.
19. Excludes, from the duties and powers of the Receiver, if the voters terminate the Authority, the authority to:
a)
Adopt
administrative rules.
b)
Acquire
property.
c)
Manage,
administrate and supervise the Authority’s activities.
d)
Employ
a treasurer to serve as a fiscal agent.
e)
Recommend
the employment of consultants.
20. Prohibits the Receiver from having a financial interest in Authority owned property, if the voters terminate the Authority.
21. Requires, by October 1, 2002, the Receiver to enact an audit of the Authority’s funds and accounts by an independent certified public accountant and within ten days before issuing the final report, if the voters terminate the Authority.
22. Requires the Receiver to file a certified copy of the report with the Auditor General and eliminates the 30-day statute of limitations for the Auditor General to find the audit insufficient, if the voters terminate the Authority.
23. Requires the Receiver pay the certified public accountant and Auditor General for services rendered from the operating account, if the voters terminate the Authority.
24. Requires the Receiver, upon completion of all duties and responsibilities, to issue a final report detailing the Receiver’s activity and the Authority’s financial disposition. Requires the Receiver to transmit copies to the Governor, President of the Senate, Speaker of the House of Representatives, Joint Legislative Budget Committee, Legislative Council, Secretary of State and the Arizona State Library, Archives and Public Records, if the voters terminate the Authority.
25. Requires the report to include, if the voters terminate the Authority:
a)
The
amounts of revenue, itemized by source, received each month by the Authority
after August 30, 2002.
b)
Itemized
monthly expenditures after August 30, 2002.
c)
A
complete monthly asset and liability statement for each month after August 30,
2002.
d)
The
amount of cash on hand, including amounts invested by the State Treasurer, at
the end of each month after August 30, 2002.
26. Terminates the Authority upon issuance of the Receiver’s final report, if the voters terminate the Authority.
27. Replaces the Authority with the County Stadium District (District), as the administrator of the cactus league promotion account, if the voters terminate the Authority.
28. Replaces, the Authority with the District, as the administrator of the youth and amateur sports facilities account, if the voters terminate the Authority.
29. Places mandatory local financial participation for new projects under the jurisdiction of the District, rather than the Authority, if the voters terminate the Authority.
30. Specifies that the District is not the agent of any other party participating in the funding of a facility or structure, if the voters terminate the Authority.
31. Allows the District, instead of the Authority, to consider anticipated required renovation costs prior to constructing new facilities, if the voters terminate the Authority.
32. Requires the District, when evaluating projects, to give priority to youth recreational facilities adjacent, in proximity or of benefit to public schools, if the voters terminate the Authority.
Removal of Reporting Requirements
and Tax Revenue Allocations for the Authority
33. Eliminates tax revenue allocations to the Authority’s revenue clearing account, if the voters terminate the Authority.
34. Extends, through June 30, 2005, tax revenue allocations to the corrections fund, if the voters terminate the Authority.
35. Removes the requirement that the Department of Revenue (DOR) (for the purposes of calculating the amount paid to the Authority’s facility revenue clearing account) separately account for revenues collected under the retail and restaurant classification of TPT, if the voters terminate the Authority, for sales:
a)
On
an Authority Facility.
b)
At
professional football contests held in the stadium of an institution under the
jurisdiction of the Arizona Board of Regents (ABOR).
36. Removes, from items subject to taxation under the amusement classification of TPT, Authority operated or sponsored events, if the voters terminate the Authority.
37. Removes, from items excluded from taxation under the amusement classification of TPT, admission sales for intercollegiate football games held in facilities not owned or operated by the Authority, if the voters terminate the Authority.
38. Removes the requirement that DOR separately account for admission sales (subject to taxation under the amusement classification of TPT) to events held in an Authority Facility or stadium at an institution under the jurisdiction of ABOR, if the voters terminate the Authority.
39. Removes the requirement that DOR separately account for revenues (subject to taxation under the prime contracting classification of TPT) collected from prime contractors engaged in the preparation or construction of an Authority Facility and related infrastructure, if the voters terminate the Authority.
40. Removes the requirement for professional football franchise organizations domiciled in the state of Arizona to annually provide by December 31 the taxpayer identification number of each employee rendering services in the state of Arizona and repeals the applicable noncompliance fines, if the voters terminate the Authority.
41. Removes the requirement that DOR account and report revenues collected from any professional franchise domiciled in the state of Arizona or employees of such a franchise, if the voters terminate the Authority.
42. Repeals the Authority’s powers, duties and responsibilities as related to the following, if the voters terminate the Authority:
a)
Board
of Directors.
b)
Gift
ban.
c)
Constructing
and operating the Facility.
d)
Regulating
the sale, use and consumption of alcoholic beverages.
e)
Decennial
performance audit.
f)
Disadvantaged
business enterprises.
g)
Annual
budgets.
h)
Construction
account.
43. Repeals the following powers, duties and responsibilities of the Authority upon issuance of the final report of the Authority’s receiver, if the voters terminate the Authority:
a)
Formation
of the Authority.
b)
Administrative
powers and duties.
c)
Executive
director duties.
d)
Conflict
of interest violations.
e)
General
fund investments.
f)
Operating
account.
g)
Annual
audits.
44. Deletes provisions for the division of the Authority’s general fund into construction and facility revenue clearing accounts, if the voters terminate the Authority.
45. Requires the maintenance of a separate tourism revenue clearing account, if the voters terminate the Authority.
46. Removes the Authority’s jurisdiction over the tourism revenue clearing account, if the voters terminate the Authority.
47. Reduces deposits to the cactus league promotion account to a flat $250,000 per month, if the voters terminate the Authority.
48. Terminates disbursements to the Authority’s operating account after the Receiver issues a final report, if the voters terminate the Authority.
49. Removes Authority debt service from the Treasurer’s priority fund distribution list for monies disbursed from the tourism revenue clearing account, if the voters terminate the Authority.
50. Limits authorized expenditures from the Authority’s operating account to those required to pay administrative costs, if the voters terminate the Authority.
51. Removes required reserves in the operating account, if the voters terminate the Authority.
52. Removes the requirement for bonds to be issued in order for counties to retain monies from the car rental surcharge and tax revenues collected under the transient lodging classification of TPT, if the voters terminate the Authority.
53. Eliminates allocation of monies derived from the car rental surcharge to the county stadium district fund and requires those monies to be deposited into the tourism revenue clearing account, if the voters terminate the Authority.
54. Requires the State Treasurer to deposit the TPT revenues collected under the transient lodging classification directly to the tourism revenue clearing account, if the voters terminate the Authority.
55. Changes the statutory heading of the Authority from “Tourism and Sports Authority” to “Tourism, Cactus League and Amateur Sports Facilities Funding”, if the voters terminate the Authority.
56. Removes the definition of “Board”, “Multipurpose facility” and “professional football franchise”, if the voters terminate the Authority.
57. Adds the definition of “district” and “receiver”, if the voters terminate the Authority.
58. Provides for a conditional enactment clause.
59. Specifies that the enactment of this act, conditioned on the results of the countywide election, does not constitute submission to the voters under the power of referendum.
60. Makes technical and conforming changes.
61. Provides for a general effective date.
House Action
APPROP 4/2/02 DPA/SE 10-2-2-2-0
3rd Read 4/10/02 34-22-4-0
Prepared by Senate Staff
April 18, 2002