Bill
Number: S.B. 1146
Worsley
Floor Amendment
Reference
to: TRANSPORTATION AND
TECHNOLOGY
Committee amendment
Amendment
drafted by: Kaitlyn Neff
FLOOR
AMENDMENT EXPLANATION
Arizona
Highway Patrol Trust Fund (Trust Fund)
1. Establishes the Trust
Fund for the exclusive use of implementing, continuing and supporting the
Arizona Highway Patrol and Highway Patrol Reserve and for Highway Patrol law
enforcement purposes. The Director of the Department of Public Safety will
administer the Fund as a trustee.
2. Directs the State
Treasurer to accept, separately account for and hold in trust monies in the
Trust Fund and prohibits commingling with other monies, except for investment
purposes.
3. Designates the Highway
Patrol and Arizona Highway Patrol Reserve as beneficiaries.
4. Stipulates that monies
in the Trust Fund are exempt from lapsing and surplus monies do not revert to
the state General Fund.
Vehicle
License Tax (VLT)
5. Removes the specified
VLT for motor vehicles and trailers designated for highway patrol and replaces
with VLT amounts to be set by the Director of the Arizona Department of
Transportation.
6. Subjects alternative
fuel vehicles to the same VLT as gasoline- and diesel-powered motor vehicles
Transportation
Reinvestment Zones (TRZ)
7.
Allows
the governing body of a county, city or town to designate a contiguous
geographical area as a TRZ to promote one or more transportation projects on a
finding that the area is unproductive and undeveloped and that a TRZ will:
a)
promote
public safety;
b)
facilitate
the improvement, development or redevelopment of the property;
c)
facilitate
the movement of traffic; and
d)
enhance
the local entity's ability to sponsor a transportation project.
8.
Allows
the governing body to fund the TRZ through Tax Increment Financing (TIF).
9. Stipulates that the TIF
consists of tax revenue collected from all ad valorem property taxes levied by
all taxing jurisdictions, except school districts, on the full cash value of all
real property that is taxable by a county, city or town in a TRZ.
10. Requires all or part of
TIF revenues to be used to fund the transportation project or projects for
which the TRZ was designated, as well as aesthetic improvement within the zone.
11. Allows the governing
body to contract with a public or private entity to develop, redevelop or
improve a transportation project in the TRZ.
12. Prohibits the governing
body from rescinding any pledge to a contacted entity until all commitments of
the assignment have been satisfied.
13. Establishes a Board of
Directors not eligible for compensation for each TRZ to be appointed by the
Governing Body that established the TRZ.
14. Requires a performance
and financial audit of the TRZ to be completed 3 years after the establishment
of the TRZ and be conducted by the Auditor General or an independent auditor.
15. Requires the governing
body to hold a public hearing at least 30 days before proposing an ordinance
that designates a TRZ.
16. Requires the governing
body to provide seven days' notice of the hearing by newspaper of general
circulation and allow any interested party to speak or submit comments for or
against creation of the TRZ.
17.
Stipulates
that the ordinance designating a TRZ must:
a)
describe
the boundaries with sufficient definiteness;
b)
provide
that the TRZ takes effect immediately on the passage of the ordinance;
c)
state
that the base year is the year of passage or another year in the future;
d)
designate
whether all or a specified percentage of each taxing jurisdictions' tax increment
will be paid into the tax increment account;
e)
assign
a name to the TRZ for identification;
f)
designate
the base year for establishing the tax increment base;
g)
establish
a tax increment account for the zone; and
h)
contain
findings that the promotion of the transportation project or projects will
cultivate the improvement, development or redevelopment of the zone.
18.
Allows
the governing body to amend the boundaries of the zone at any time to
accommodate changes in the limits of a project.
19. Stipulates that the governing
body remains compliant without any further hearings or procedural formalities,
unless adding property to a TRZ.
20. Requires a governing
body to hold a hearing and adopt an ordinance if adding property to the TRZ.
21. Exempts school
districts from tax increment account obligations, unless the governing body of
the school district enters into an agreement with the governing body of the
county, city or town that created the TRZ.
22.
Allows
the governing body of a school district to enter into a binding agreement,
specifying the portion of the tax increment to be paid, at any time before or
after the TRZ is created or enlarged.
23.
Requires
the TRZ to terminate on December 31 of the:
a)
year
in which all contractual requirements for development, redevelopment or
improvement of TRZ projects has been satisfied; or
b)
tenth
year after the TRZ was created if the governing body has not entered into any
TRZ contracts.
24. Allows the governing
body to use surplus TIF revenues for non-TRZ purposes.
Miscellaneous
25.
Makes
technical and conforming changes.
26. Removes the Proposition
108 clause, which requires the affirmative vote of at least two-thirds of each
chamber of the Legislature.
Page 3, line
9, strike "3." insert "2."
Line 28,
strike "4." insert "3."
Page 4, line
3, strike "the following:"
Line 4,
strike "1."
Strike lines
7 through 9
Line 23,
after "patrol" insert "trust"
Line 24,
strike "41‑1752" insert "41‑1752.01"; strike "fifty cents"
insert "the rate established by the director"
Page 5, line
4, after "patrol" insert "trust"
Line 5,
strike "41‑1752" insert "41‑1752.01"; strike "fifty‑two
cents" insert "the rate established by the
director"
Line 19,
strike "of nineteen dollars" insert "established by the director"
Line 21,
after "patrol" insert "trust"
Line 22,
strike "41‑1752" insert "41‑1752.01"
Line 25,
strike "of thirteen dollars" insert "established by the director"
Line 27,
after "patrol" insert "trust"
Line 28,
strike "41‑1752" insert "41‑1752.01"
Page 6, line
3, strike "of ninety-three dollars" insert
"established by the director"
Line 5,
after "patrol" insert "trust"
Line 6,
strike "41‑1752" insert "41‑1752.01"
Line 12,
strike "sixty-three dollars" insert "An amount established by the director"
Line 14,
after "patrol" insert "trust";
strike "41‑1752" insert "41‑1752.01"
Page 6, line
18, strike "eighteen dollars" insert "An amount established by the director"
Line 20,
after "Patrol" insert "trust";
strike "41-1752" insert "41-1752.01"
Page 7, between
lines 3 and 4, insert:
"Sec. 4.
Repeal
Section
28-5805, Arizona Revised Statutes, is repealed."
Page 8,
lines 13 and 25, strike "28-5805,"
Page 10,
strike lines 3 through 31
Page 11,
strike lines 1 through 9, insert:
"Sec. 6. Title
28, chapter 19, Arizona Revised Statutes, is amended by adding article 5, to
read:
ARTICLE
5. TRANSPORTATION REINVESTMENT ZONES
START_STATUTE28-6841. Definitions
In this article, unless the
context otherwise requires:
1. "Captured full
cash value" means the total full cash value of all real
property that is taxable by a county, city or town and that is located in a
transportation reinvestment zone minus the tax increment base of the county,
city or town.
2. "Full cash value"
has the same meaning prescribed in section 42‑11001.
3. "governing body"
means the board of supervisors of a county, the city or town council or another
elected governing board of a city or town.
4. "Tax increment"
means the amount of tax revenue collected from all ad valorem property taxes
levied by all taxing jurisdictions, except school districts, on the captured
full cash value.
5. "Tax increment base"
means the total full cash value of all real property that is taxable by a
county, city or town and located in a transportation reinvestment zone for the
tax year in which the Zone was designated under this article.
6. "Zone" means a
transportation reinvestment zone established pursuant to this article. END_STATUTE
START_STATUTE28-6842. Designation
of transportation reinvestment zone
A. The governing body
of a county, city or town, by ordinance, may designate a contiguous
geographical area in the jurisdiction of the county, city or town to be a
transportation reinvestment zone to promote one or more transportation projects
on a finding that:
1. the area is
unproductive and undeveloped.
2. Action under this
article will further the following purposes:
(a) Promote
public safety.
(b) Facilitate
the improvement, development or redevelopment of property.
(c) Facilitate
the movement of traffic.
(d) Enhance
a local entity's ability to sponsor a transportation project.
B. The governing body
must hold a public hearing on the designation of the zone and its benefits to
the county, city or town and to property in the proposed zone. The hearing
must be held at least thirty days before the date the county, city or town
proposes to adopt an ordinance designating the transportation reinvestment
zone. Notice of the hearing must be given at least seven days before the date
of the hearing by publication in a newspaper of general circulation in the
county, city or town and by posting on the county's, city's or town's website.
At the hearing any interested person may speak or
submit written comments for or against the creation of the zone or its boundaries.
C. The ordinance
designating an area as a transportation reinvestment zone must:
1. Describe the boundaries of the zone
with sufficient definiteness to identify with ordinary and reasonable certainty
the territory included in the zone.
2. Provide that the zone takes effect
immediately on passage of the ordinance and that the base year is the year of
passage of the ordinance or another year in the future.
3. Designate whether
all or a specified percentage of each taxing jurisdiction's tax increment will
be paid into the tax increment account established pursuant to paragraph 6 of
this subsection.
4. Assign a name to the zone for
identification, with the first zone designated as "transportation
reinvestment zone number one, (name of county, city or town)", and
subsequently designated zones assigned names in the same format, numbered
consecutively in the order of their designation.
5. Designate the base year for the
purposes of establishing the tax increment base.
6. Establish a tax increment account for
the zone.
7. Contain findings that promotion of the
transportation project or projects will cultivate the improvement, development
or redevelopment of the zone.
D. COMPLIANCE WITH THE
REQUIREMENTS OF THIS SECTION CONSTITUTES DESIGNATION OF THE AREA AS A
TRANSPORTATION REINVESTMENT ZONE WITHOUT FURTHER HEARINGS OR OTHER PROCEDURAL
FORMALITIES.
E. The governing body
may amend the boundaries of a zone at any time to accommodate changes in the
limits of a project for which the zone was designated, except that property may
not be added to a designated zone unless the governing body complies with this
section. END_STATUTE
START_STATUTE28-6843. Exclusion
of school district tax increment
A. A school district is
not required to pay into a tax increment account any of its tax increment
produced from property located in a zone unless the governing body of the
school district enters into an agreement to do so with the governing body of
the county, city or town that created the zone.
B. The governing body
of a school district may enter into an agreement under this section at any time
before or after the zone is created or enlarged. The agreement may include
conditions for payment of the school district's tax increment but must specify
the portion of the tax increment to be paid and the year or years for which
that tax increment is to be paid. The agreement and the conditions in the
agreement are binding on the school district and the county, city or town. END_STATUTE
START_STATUTE28-6844. Use
of tax increment revenues for transportation projects
A. From taxes collected
on property in a transportation reinvestment zone, the governing body shall pay
into the tax increment account for the zone the tax increment produced by the
county, city or town.
B. All or a portion, as
specified by the governing body, of the monies deposited in a tax increment
account must be used to fund the transportation project or projects for which
the zone was designated, as well as aesthetic improvements within the
zone. Any remaining monies deposited in the tax increment account
may be used for other purposes as determined by the governing body.
C. The governing body
may contract with a public or private entity to develop, redevelop or improve a
transportation project in the zone and may pledge and assign all or a specified
amount of monies in the tax increment account to that entity. After a pledge
or assignment is made, the governing body may not rescind its pledge or
assignment until the contractual commitments that are the subject of the pledge
or assignment have been satisfied. END_STATUTE
START_STATUTE28-6845. Termination
of transportation reinvestment zone
A. A
transportation reinvestment zone terminates on the later of the following:
1. December 31 of the
year in which the county, city or town completes all contractual requirements
or the repayment of monies owed under any agreement for development,
redevelopment or improvement of the project or projects for which the zone was
designated.
2. December 31 of the
tenth year after the year the zone was designated if, before that date, the
county, city or town has not entered into a contract described in section
28-6844, subsection C or has otherwise not used the zone for the purpose for
which it was designated.
B. Any surplus
remaining in a tax increment account on termination of a zone may be used for
other purposes as determined by the governing body. END_STATUTE
Sec. 7. Title 41,
chapter 12, article 3, Arizona Revised Statutes, is amended by adding section
41-1752.01, to read:
START_STATUTE41-1752.01. Arizona
highway patrol trust fund
A. The Arizona highway
patrol trust fund is established consisting of monies deposited pursuant to
section 28‑5801. The trust fund shall be used exclusively for
the purpose of implementing, continuing and supporting the highway patrol and
the Arizona highway patrol reserve and administering the provisions of law
relating to the highway patrol and the ARizona highway patrol reserve.
B. The director shall
administer the trust fund as trustee. The state treasurer shall accept,
separately account for and hold in trust any MONIES DEPOSITED in the state
treasury, which are considered to be trust monies as defined in section 35‑310
and which may not be commingled with any other monies in the state treasury
except for investment purposes. On notice from the director, the state
treasurer shall invest any trust fund monies deposited in the state treasury
pursuant to sections 35‑313 and 35‑314.03, and all interest earned
on these monies shall be credited to the trust fund.
C. The BENEFICIARIES of
the TRUST are the highway patrol and the Arizona highway patrol reserve.
D. Monies
in the trust fund are exempt from the provisions of section 35‑190
relating to lapsing of appropriations. Surplus monies, including any
unexpended and unencumbered balance at the end of the fiscal year, do not
revert to the state general fund."END_STATUTE
Amend title to conform