|
Senate Engrossed |
|
State of Arizona Senate Fifty-fourth Legislature Second Regular Session 2020
|
|
SENATE BILL 1335 |
|
|
|
|
AN ACT
amending title 9, Arizona Revised Statutes, by adding chapter 14; amending title 11, Arizona Revised Statutes, by adding chapter 15; relating to tourism.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 9, Arizona Revised Statutes, is amended by adding chapter 14, to read:
CHAPTER 14
TOURISM MARKETING AUTHORITY
ARTICLE 1. GENERAL PROVISIONS
9-1601. Definitions
In this chapter, unless the context otherwise requires:
1. "Authority" means a tourism marketing authority that is formed pursuant to this chapter.
2. "Board" means the board of directors of a tourism marketing authority.
3. "Governing body" means the body or board that by law is constituted as the legislative department of the municipality or county.
4. "Municipality" means a city or town.
5. "Transient lodging room" means a room that is intended for transient occupancy in a hotel or motel, including an inn, tourist home or house, dude ranch or resort.
9-1602. Petition; approval; formation
A. On presentation of a petition pursuant to this section, the governing body of one or more municipalities or one or more municipalities and a county with a population of less than two million persons may adopt a resolution forming a tourism marketing authority consisting of the property within the corporate boundaries of the authority as described in the petition. The petition for the formation of the authority shall include and identify the following:
1. The geographic boundaries of the authority.
2. The nonprofit tourism promotion organization that the municipality and county, if applicable, will contract with to provide the tourism marketing services for the authority.
3. A statement that the tourism marketing authority will provide for the promotion and enhancement of tourism in the authority.
4. The amount of the assessment stated in dollars per room per night on the transient lodging rooms within the boundaries of the authority and the transient lodging facilities to be assessed.
5. a description of the AUTHORITY'S obligation to report annually to the governing body of each MUNICIPALITy and county that is participating in the authority.
6. A statement that the authority may be terminated by petition of the transient lodging room owners or legally authorized representatives and shall terminate after ten years unless renewed by further action by petition to and approval of one or more of the governing bodies participating in the authority.
B. If a petition prescribed by subsection A of this section is signed by the owners or legally authorized representatives of at least sixty-seven percent of the transient lodging rooms within the geographic area of the authority, and includes two or more properties with transient lodging rooms, the governing body of each participating municipality and county by affirmative vote may approve the formation of the authority. On approval of each participating municipality and county, the authority is ESTABLISHED.
9-1603. Authority powers and duties; contracts; assessments
A. On ESTABLISHMENT of the authority, the governing body of each MUNICIPALITY and county participating in the authority shall:
1. Contract with a recognized tourism promotion agency in the municipality and county that is a nonprofit corporation exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least five years. If there is no recognized TOURISM promotion agency in the municipality, the municipality may contract with the municipality's tourism promotion office. The contract shall provide that the municipality and any participating county shall distribute to the recognized tourism promotion agency all monies that are received from assessments collected pursuant to this chapter.
2. enter into intergovernmental agreements as prescribed in title 11, chapter 7, article 3 for the purposes of supporting the authority.
B. The authority shall Establish, charge and provide for the collection of assessments on transient lodging rooms. The authority may levy an assessment of not more than $5 per room sold per night on the transient lodging rooms in the authority. The assessment rate or rates may be tiered based on the average daily room rate for the affected transient lodging.
C. The transient lodging room owner or legally authorized representative shall pay the assessment to the department of revenue at the same time as paying the transaction privilege tax under section 42‑5014. If the transient lodging room owner for any reason does not pay transaction privilege tax, the assessment imposed by this chapter is due and payable to the department, and is delinquent if not paid, as provided in section 42‑5014, subsection A. The department shall report to the state treasurer the amount of monies collected pursuant to this subsection.
D. the state treasurer shall transmit to the treasurer or officer exercising the functions of treasurer of the participating MUNICIPALITY or county, if applicable, each month, beginning with the third calendar month after the date specified in the petition for the authority, the amount collected from properties within the authority. The municipal location of a property in the authority is the same municipality from which the department of revenue receives the municipal transient lodging tax assessed pursuant to title 42, chapter 6. The department of revenue shall separately account for the monies paid under this chapter and shall deposit, pursuant to sections 35‑146 and 35‑147, the net revenues collected under this chapter in the state general fund.
E. The board and any municipality or county that is participating in the authority shall supply the department of revenue and the state treasurer with all requested information necessary to administer this section.
9-1604. Authority governance; limitation; meetings; report
A. The AUTHORITY shall be GOVERNED by the board of directors of the recognized tourism PROMOTION agency with at least one member of one or more of the governing bodies participating in the authority. THE authority may Employ staff and consultants, Reimburse a municipality or county for staff, services and FACILITies supplied by the municipality or county, enter into contracts and accept grants.
B. The authority may not finance or facilitate the acquisition, maintenance, construction or operation of a hotel, motel, resort or other transient lodging or any sports or entertainment facility.
C. The authority and its board shall maintain the RECORDS of the authority, including RECORDS of its accounts showing all monies RECEIVED and DISBURSED AND its annual budget, and shall keep the authority's monies and operations separated from the tourism promotion agency's other monies and activities. The board shall comply with title 38, chapter 3, article 3.1 and title 39, chapter 1.
D. The board shall report at least annually to the governing bodies of the participating municipalities and county on the activities and expenditures of the AUTHORITY and the impacts of the authority's expenditures and activities.
9-1605. Termination; petition; renewal; modification of boundaries
A. An AUTHORITY may be terminated at any time on presentation of a petition that is signed by the owners or legally authorized representatives of at least fifty‑one percent of the transient lodging rooms within the geographic area of the authority. On receipt of a petition, the governing body of each participating municipality and county shall terminate its participation in the authority and notify the department of revenue, which shall cease collection of any assessment.
B. An authority shall terminate ten years after its formation unless one or more municipalities or one or more municipalities and a county by petition as prescribed by section 9-1602 and by resolution approve the renewal of the authority before its termination. An authority may be renewed and its boundaries modified if fewer than all of the original entities resolve to renew their participation in the authority except that an authority must include at least one municipality. On approval of one or more governing bodies' resolutions, the authority is renewed for ten additional years. An authority may continue to be renewed every ten years thereafter.
Sec. 2. Title 11, Arizona Revised Statutes, is amended by adding chapter 15, to read:
CHAPTER 15
TOURISM MARKETING AUTHORITY
ARTICLE 1. GENERAL PROVISIONS
11-2101. Definitions
In this chapter, unless the context otherwise requires:
1. "Authority" means a tourism marketing authority that is formed pursuant to this chapter.
2. "Board" means the board of directors of a tourism marketing authority.
3. "Governing body" means the board of supervisors of a county.
4. "Transient lodging room" means a room that is intended for transient occupancy in a hotel or motel, including an inn, tourist home or house, dude ranch or resort.
11-2102. Petition; approval; formation
A. On presentation of a petition pursuant to this section, the governing body of a county with a population of less than two million persons may adopt a resolution forming a tourism marketing authority consisting of all of the property within the boundaries of the county. The petition for the formation of the authority shall include and identify the following:
1. The geographic boundaries of the authority.
2. The nonprofit tourism promotion organization that the county will contract with to provide the tourism marketing services for the authority.
3. A statement that the tourism marketing authority will provide for the promotion and enhancement of tourism in the authority.
4. The amount of the assessment stated in dollars per room per night on the transient lodging rooms within the boundaries of the authority and the transient lodging facilities to be assessed.
5. a description of the authority's obligation to report annually to the governing body of the county that is participating in the authority.
6. A statement that the authority may be terminated by petition of the transient lodging room owners or legally authorized representatives and shall terminate after ten years unless renewed by further action by petition to and approval of the governing body.
B. If a petition prescribed by subsection A of this section is signed by the owners or legally authorized representatives of at least sixty-seven percent of the transient lodging rooms within the geographic area of the authority, and includes two or more properties with transient lodging rooms, the governing body of the county by affirmative vote may approve the formation of the authority. On approval of the county, the authority is ESTABLISHED.
11-2103. Authority powers and duties; contracts; assessments
A. On establishment of the authority, the governing body of the county participating in the authority shall:
1. Contract with a recognized tourism promotion agency in the county that is a nonprofit corporation exempt from taxation under section 501(c)(6) of the internal revenue code and that has been in continuous existence for at least five years. If there is no recognized tourism promotion agency in the county, the county may contract with the county's tourism promotion office. The contract shall provide that the county shall distribute to the recognized tourism promotion agency all monies that are received from assessments collected pursuant to this chapter.
2. Enter into intergovernmental agreements as prescribed in chapter 7, article 3 of this title for the purposes of supporting the authority.
B. The authority shall establish, charge and provide for the collection of assessments on transient lodging rooms. The authority may levy an assessment of not more than $5 per room sold per night on the transient lodging rooms in the authority. The assessment rate or rates may be tiered based on the average daily room rate for the affected transient lodging.
C. The transient lodging room owner or legally authorized representative shall pay the assessment to the department of revenue at the same time as paying the transaction privilege tax under section 42‑5014. If the transient lodging room owner for any reason does not pay transaction privilege tax, the assessment imposed by this chapter is due and payable to the department, and is delinquent if not paid, as provided in section 42‑5014, subsection A. The department shall report to the state treasurer the amount of monies collected pursuant to this subsection.
D. the state treasurer shall transmit to the treasurer or officer exercising the functions of treasurer of the participating county each month, beginning with the third calendar month after the date specified in the petition for the authority, the amount collected from properties within the authority. The department of revenue shall separately account for the monies paid under this chapter and shall deposit, pursuant to sections 35‑146 and 35‑147, the net revenues collected under this chapter in the state general fund.
E. The board and the county that is participating in the authority shall supply the department of revenue and the state treasurer with all requested information necessary to administer this section.
11-2104. Authority governance; limitation; meetings; report
A. The authority shall be governed by the board of directors of the recognized tourism promotion agency with at least one member of the governing body participating in the authority. The authority may employ staff and consultants, reimburse a county for staff, services and facilities supplied by the county, enter into contracts and accept grants.
B. The authority may not finance or facilitate the acquisition, maintenance, construction or operation of a hotel, motel, resort or other transient lodging or any sports or entertainment facility.
C. The authority and its board shall maintain the records of the authority, including records of its accounts showing all monies received and disbursed and its annual budget, and shall keep the authority's monies and operations separated from the tourism promotion agency's other monies and activities. The board shall comply with title 38, chapter 3, article 3.1 and title 39, chapter 1.
D. The board shall report at least annually to the governing body of the county on the activities and expenditures of the authority and the impacts of the authority's expenditures and activities.
11-2105. Termination; petition; renewal; modification of boundaries
A. An authority may be terminated at any time on presentation of a petition that is signed by the owners or legally authorized representatives of at least fifty‑one percent of the transient lodging rooms within the geographic area of the authority. On receipt of a petition, the governing body of the county shall terminate its participation in the authority and notify the department of revenue, which shall cease collection of any assessment.
B. An authority shall terminate ten years after its formation unless a county by petition as prescribed by section 11-2102 and by resolution approve the renewal of the authority before its termination. On approval of the governing body's resolution, the authority is renewed for ten additional years. An authority may continue to be renewed every ten years thereafter.