ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2622: international trade; authority; transportation |
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PRIME SPONSOR: Representative Rivero, LD 21 BILL STATUS: House Engrossed |
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Relating to the establishment,
requirements, bonding and budgeting of The International Transportation &
Trade Corridor Authority.
Provisions
The International Transportation & Trade Corridor Authority
1. Establishes the Authority as a corporate and political body with all the rights, powers and immunities of a municipal corporation. (Sec. 2)
2. Specifies that the Board and Authority do not have the power or independent authority to levy or impose any tax or assessment other than charges for the use of Authority facilities. (Sec. 2)
3. Permits the qualified electors of the Authority to levy a tax or surcharge for the fiscal needs of the Authority. (Sec. 2)
4. Specifies that the Authority is considered a tax-levying public improvement district for the purpose of exemption from Constitutional prohibitions against public entities gifting or loaning credit or becoming indebted. (Sec. 2)
5. Permits the Chairpersons of the Senate Commerce and Public Safety Committee and the House of Representatives Local & International Affairs Committee (of their successor committees) to:
a. Hold hearings to review the activities of the Authority; or
b. Require the Executive Director to appear before the Committee within 30 days to report on the activities and financial performance of the Authority (Sec. 2)
6. Terminates the Authority on July 1, 2022. (Sec. 3)
7. Appropriates $200,000 from the GF in FY 2019 to the Authority. (Sec. 5)
Transportation & Trade Facilities
8. Requires the Authority to construct, finance, improve, operate and promote the use of facilities and do all things necessary or convenient to accomplish those purposes. (Sec. 2)
9. Requires the Board to approve sites for the construction of facilities in consultation with jurisdictional sponsors before January 1, 2026. (Sec. 2)
10. Permits the Authority to use alternate systems and procedures to expedite the design and construction of its facilities or structures, including the use of the design-build method of construction and qualifications-based selection of experienced contractors by either direct selection or public competition. (Sec. 2)
11. Subjects any plans and specifications of facilities to Board review and requires the Board to inspect and approve facilities that conform to plans and engineering standards. (Sec. 2)
12. Requires the Authority to own facilities, subject only to leases, contracts, arrangements, liens and other securities or interests of the Board. (Sec. 2)
13. Permits the Authority to own or lease the land on which the facility is located and lease a facility for its operation and maintenance. (Sec. 2)
14. Outlines requirements of the Executive Director, including recommending and analyzing facility specifications and contractors and negotiating agreements or contracts relating to facilities, subject to Board approval. (Sec. 2)
15. Requires the Executive Director to negotiate agreements with jurisdictional sponsors concerning any provided land or infrastructure and requires the agreements to:
a. Indemnify and hold the Authority harmless from any liability resulting from provided access ways in which liability resulting from negligent or intentional acts or omissions by the sponsor; and
b. Require jurisdictional sponsors to maintain insurance or adequate self-insurance for any liability, with a waiver or sovereign immunity. (Sec. 2)
16. Permits jurisdictional sponsors to provide land associated with a facility on appropriate terms and conditions. (Sec. 2)
17. Requires the Board to be responsible for ensuring appropriate maintenance and operation of each facility. (Sec. 2)
18. Requires the Authority to perform either of the following actions in order to ensure any lessee, user or jurisdictional sponsor has the financial capability to perform its obligations:
a. Cause a review of their financial books and records by an independent certified public accountant, which must prepare a report for the Authority; or
b. Provide another method of assuring payment in an amount equal to their estimated obligations, including deposits in a construction trust-account, posting of a bond, providing a letter of credit or other similar financial assurance. (Sec. 2)
19. Requires the Authority to prepare a monthly progress report, which must be transmitted to the Governor, Legislature and Joint Legislative Budget Committee. (Sec. 2)
Organization & Structure of the Authority
20. Specifies that the Authority is governed by a 9-member Board, consisting of Executive and Legislative appointees. (Sec. 2)
21. Requires the Governor and Legislature to make appointments to the Authority within 10 days of the effective date and in order to produce a general geographically diverse representation of areas in the Authority. (Sec. 2, 4)
22. Specifies that Board members serve four-year terms and may be reappointed for one subsequent full term. (Sec. 2)
23. Specifies that the Board is a public body and must comply with all open meeting laws and public record requirements. (Sec. 2)
24. States that Board members are eligible to receive daily compensation of up to $30 per day. (Sec. 2)
25. Specifies that the Executive Director is responsible for managing, administering and supervising the activities of the Authority. (Sec. 2)
26. Classifies employees of the Authority as public employees subject to statutory requirements and benefits. (Sec. 2)
27. Specifies that directors, officers and employees of the Authority are subject to statutory conflict of interest and recusal requirements.
a. Classifies a violation of conflict of interest or recusal requirements as a class 1 misdemeanor (6 months/2,500 plus surcharges). (Sec. 2)
Authority Powers & Duties
28. Outlines administrative, structural, recordkeeping and legal powers of the Board. (Sec. 2)
29. Prohibits the Board from using public monies to pay or contract with an individual for lobbying services. (Sec. 2)
30. Requires the Executive Director to:
a. Negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the Authority or to carry out its purposes, including construction contracts and agreements with users of facilities;
i. Requires the acts to be subject to Board approval.
b. Employ a treasurer and administrative and clerical employees and prescribe the terms and conditions of their employment;
c. Recommend the employment of consultants by the Board, including outside counsel and a professional facility management company; and
d. Direct the activities of outside consultants. (Sec. 2)
31. Requires the Authority treasurer or fiscal agent to administer and account for all Authority monies and accounts and cancel all bonds upon payment. (Sec. 2)
32. Prohibits a principal or lobbyist from giving a gift to a Board member or employee and prohibits the Board member or employee from accepting a gift from a principal or lobbyist. (Sec. 2)
33. Outlines exemptions from the gift prohibition for Board members and employees. (Sec. 2)
34. Requires the following information to be included in any agreement between the Authority and an Indian tribe:
a. A waiver of sovereign immunity to allow enforcement by the Authority of the agreements;
b. A consent to the jurisdiction of state and federal courts by the Indian tribe;
c. A waiver of the right to require the Authority to exhaust Tribal remedies before bringing a court action; and
d. An acknowledgement that state and federal law will govern the interpretation of any agreement. (Sec. 2)
35. Permits the Board to regulate the sale, use and consumption of alcoholic beverages at locations on acquired, leased or subleased property. (Sec. 2)
36. Requires the Authority to:
a. Establish disadvantages enterprise participation goals for the design, engineering and construction of facilities based on the availability of disadvantaged business enterprises.
b. Establish procedures and reporting, compliance and contract requirements for these goals. (Sec. 2)
c. Impose sanctions if the Authority determines that a good faith effort was not made to comply with procedures; and
d. Provide that any contract for a facility require contractors to provide health insurance to their employees and dependents of their employees, except for those that work less than 120 hours per year. (Sec. 2)
Authority Finances
37. Requires the Board to adopt an annual budget, which must include certain information. (Sec. 2)
38. Requires the Authority to maintain a general fund, divided into a Construction Account, Facility Revenue Clearing Account and Operating Account and any other necessary accounts. (Sec. 2)
39. Requires the Construction Account to consist of the following funding sources and be used to pay for the costs of any facility:
a. Monies received by the Authority from any source for the purpose of acquiring land or funding the cost of constructing a facility, including financial participation for capital costs of the Facility from a private or public source; and
b. Proceeds of bonds issued by the Authority, which must be held in segregated bond-proceeds subaccounts. (Sec. 2)
40. Requires the Facility Revenue Clearing Account to consist of:
a. Revenues received from dedicated public funding sources;
b. Payments from leasing, subleasing or renting property under its control;
c. Revenues from concessions and other proceeds from concession facilities that are located within a facility owned or leased by the authority;
d. Gifts, grants and donations received for operating purposes;
e. Proceeds from the sale of any Authority property; and
f. Financial participation for operating costs received from the county or municipality in which a facility is located. (Sec. 2)
41. Requires the Authority treasurer to distribute all Facility Revenue Clearing Account monies, on the second Tuesday of each month, in the following order of priority:
a. 1/12 of the annual debt service on bonds and other debt obligations of the to the Debt Service Account, net of deposits made into the Debt Service Account from the Operating Account for payment or early redemption of bonded indebtedness; and
b. To the Operating Account. (Sec. 2)
42. Requires the Operating Account to consist of monies transmitted from the Construction Account and Facility Revenue Clearing Account and be used for costs incurred in:
a. Operating, marketing, promoting, furnishing and equipping a facility;
b. Paying all costs associated with administrative duties; and
c. Payment to the Debt Service Account to be used for payment or early redemption of bonded indebtedness. (Sec. 2)
43. Requires the Authority to establish the following reserves in the Operating Account:
a. A reserve to meet future operating costs of the Authority, including sufficient amounts to pay all costs associated with events held in facilities; and
b. A reserve for repair, replacement and removal costs associated with facilities equal to at least $25,000,000, adjusted for inflation each year after 2019. (Sec. 2)
44. Requires the Board to establish the following accounts if a bond is issued:
a. A Bond Proceeds Subaccount, consisting of monies received from the sale of bonds and used solely for facility purposes; and
b. A Debt Service Account consisting of solely of monies dedicated for repayment of the bonds and the payment of costs related to redeeming the bonds. (Sec. 2)
45. Requires the Board to use any remaining bond proceeds after payment of facility costs for repayment of any other outstanding indebtedness of the Authority or to the Operating Account. (Sec. 2)
46. Requires any excess balance in the Debt Service Account after bond and related expenses have been paid to be credited to the Authority's Operating Account. (Sec. 2)
47. Permits the Board to authorize the treasurer or fiscal agent of the Authority to invest monies in the Bond Proceeds subaccount or Debt Service Account. (Sec. 2)
a. Requires any order directing investment to state a date on which the proceeds from bond sales will be needed for use and requires the treasurer or fiscal agent to ensure investments mature before that date. (Sec. 2)
48. Permits monies in the Bond Proceeds Subaccount or the Debt Service Account to be invested in specified securities and requires the treasurer or fiscal agent to make the purchase of securities on Authority of a resolution by the Board. (Sec. 2)
49. Permits the Board to amend the budget on a finding of good cause. (Sec. 2)
50. Exempts the property acquired or constructed by the Authority, the activities of the Authority in maintaining and caring for the property and monies derived by the Authority for operating the property from state and local income and property taxation. (Sec. 2)
51. Permits the Authority to invest any unexpended monies in its general fund. (Sec. 2)
52. Requires the Authority's investments to mature when the fund assets will be required for statutory purposes. (Sec. 2)
53. Stipulates that if liquid assets in its general fund or any account become insufficient to meet obligations, the Board must direct the treasurer to liquidate sufficient securities to meet all the current obligations and immediately notify the OAG of the insufficiency. (Sec. 2)
54. Specifies that the State is not responsible for the operating costs of the Authority, including the operating, marketing, promotion, furnishing, equipping, repair and replacement costs of any facility or project. (Sec. 2)
Authority Bonding
55. Permits the Authority to issue negotiable bonds by resolution in a principal amount that the Board determines is necessary to:
a. Provide sufficient money for facility purposes;
b. Pay necessary bond-related expenses;
c. Establish and fully or partially fund any reserves or sinking accounts established by the bond resolution;
d. Issue refunding bonds, if the Board considered refunding to be expedient.
i. Permits the Board to provide for investigating and holding the proceeds of refunding bonds in trust for the benefit of holders of the bonds being refunded.
e. Refund any bonds issued by the Authority, if the bonds are secured from the same source of revenues as other Authority bonds by issuing new bonds, whether or not the bonds to be refunded have matured; and
f. Issue bonds partly to refund outstanding bonds and partly for facility purposes. (Sec. 2)
56. Outlines information that must be included in the Board resolution relating to the bond. (Sec. 2)
57. Permits bonds to be sold by competitive bid or negotiated sale for public or private offerings at the price and in terms specified in the resolution. (Sec. 2)
58. Specifies that statutory requirements for federal income tax considerations by a political subdivision for bonds applies to any bonds issued by the Board. (Sec. 2)
59. Permits the Board, by resolution, to regulate any authorized bonds, including pledging and providing for payment of bonds and related expenses, assigning and segregating funds into corresponding accounts and prescribe necessary procedures and requirements relating to payment and security. (Sec. 2)
60. Specifies that monies pledged to holder of bonds and received by the Authority are immediately subject to the lien of the pledge and that any lien of any pledge is valid and binding against all parties that have claims against the authority, regardless of whether the parties have notice of the lien. (Sec. 2)
61. Permits the Board to purchase bonds for cancelation at a price below:
a. The applicable redemption price plus accrued interest to the next payment if the bonds are redeemable; or
b. The applicable redemption price on the first date after purchase on which the bonds become subject to redemption, plus any accrued interest.
62. Exempts Board members and any person executing a bond from liability for the payment of bonds. (Sec. 2)
63. Permits the Board to place restrictions on reinvestment yield on bond proceeds or on any monies pledged to pay the bonds, if necessary to comply with Federal laws. (Sec. 2)
64. Requires bond proceeds to be deposited in a federally insured financial institution that has been approved by the Board. (Sec. 2)
65. Specifies that Authority-issued bonds are fully negotiable, subject only to any provisions for registration, regardless of whether the bonds actually constitute negotiable instruments in the Uniform Commercial Code. (Sec. 2)
66. Exempts bonds, bond transfers and income from bonds from taxation in the state. (Sec. 2)
67. Outlines that bonds issued by the Authority are:
a. Obligations of the Authority and not general, special or other obligations of the state;
b. Payable according to their terms;
c. Not considered a debt of the state;
d. Not enforceable against the state or payable from any monies other than those pledged and assigned to the holders of the bond;
e. Securities in which public bodies, corporations and others may invest; and
f. Securities that may be deposited with state or municipal officers and bodies for purposes that require the deposit of government bonds or obligations. (Sec. 2)
68. Specifies that Authority bonds remain valid and binding obligations of the Authority regardless of whether signing Authority officers of the bonds cease to work for the Authority. (Sec. 2)
69. Asserts that any amendment to Authority bonding statutes does not diminish or impair the bonds validity. (Sec. 2)
70. Asserts that the state pledges to bond holders that the state will not limit, alter or impair the vested rights of the Authority to receive necessary monies to fulfill the terms of any agreements made with bondholders or impair their rights and remedies until all bond obligations are fully met. (Sec. 2)
71. Specifies that no other law of the state regarding authorizing or issuing obligations in any way impedes or restricts performing acts required by the Authority. (Sec. 2)
72. Asserts that the validity of bonds issued by the Authority does not depend on the legality of any proceeding relating to the acquisition, construction, improvement, operation or maintenance of a facility for which the bonds are issued. (Sec. 2)
73. Permits the Board to submit finalized bonds to the Attorney General for certification of the validity of the bond and regularity of the proceedings. (Sec. 2)
74. Specifies that bonds certified by the Attorney General and including a recital that the bond is regularly issued pursuant to statute constitutes evidence of the legality of validity of the bonds.
a. Asserts that bonds containing these items are incontestable by the state or Authority. (Sec. 2)
Miscellaneous
75. Requires the OAG to investigate and audit the circumstances surrounding any depletion of the Authority's general fund or accounts and report findings to the Board. (Sec. 2)
76. Requires the Board to cause an annual audit to be conducted of each of the Authority's funds, accounts and subaccounts by an independent certified public accountant.
a. Requires the report to be filed with the OAG. (Sec. 2)
77. Permits the OAG to make any further audits or examinations as necessary and take appropriate action relating to statutory OAG audit or Committee of Reference examination requirements.
a. Stipulates that if no further action is taken by the OAG within 30 days of filing, the independent audit is considered sufficient. (Sec. 2)
78. Requires the Board to pay negotiated and approved fees and costs of a certified public accountant or OAG for any annual audit from the Operating Account. (Sec. 2)
79. Defines Authority, board, bond-related expenses, bonds, department, design-build, Indian tribe, jurisdictional sponsor, qualifications-based selection transportation and trade facility, and transportation and trade facility purposes. (Sec. 1, 2)
80. Makes technical and conforming changes. (Sec. 1)
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Fifty-third Legislature HB 2622
Second Regular Session Version 3: House Engrossed
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