ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

 

HB 2834: economic development; project certification

Sponsor:  Representative Dunn, LD 13

Committee on Commerce

Overview

Enables a city, town or county to establish an Economic Development Improvement Program.

History

The Arizona Commerce Authority's (ACA) mission is to provide private sector leadership in growing and diversifying the economy, creating high quality employment through expansion, attraction and retention of businesses and marketing (A.R.S. § 41-1502).

Provisions

Economic Development Improvement Programs (Program) (Sec. 1)

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NotePermits a county, in unincorporated areas of the county, or a city or town to propose the establishment of an economic development improvement program. 

a)   Allows real and person property in a project of a program eligible for reclassification after certification by the ACA.

2.   Requires, prior to establishing a Program, the city or county to apply for the authority for certification as a Program if a project's infrastructure improvements will be dedicated to multiple jurisdictions.

3.   Requires the application to include a plan for at least one project that meets the statutory capital investment requirements and meets further criteria as prescribed.

4.   Validates a program certification for 10 years after being established.

a)   Allows the certification to be renewed provided it continues to meet the prescribed criteria.

b)   Directs the ACA to establish a renewal process.

5.   Permits a city or county, after receiving certification and establishing a Program, to enter into development agreements with property owners to contract projects.

a)   Requires the agreement to be recorded with the appropriate county recorder.

6.   Directs the ACA to certify projects that qualify for property tax incentives.

a)   Provides qualifications and limitations for certification.

b)   Specifies the certification is effective on January 1 of the valuation year following completion of the required minimum capital investment and ACA certification.

7.   Specifies the city or town is solely responsible for informing the ACA on which project to certify.

8.   Directs the city or county seeking initial certification to apply for precertification.

a)   Outlines information that must be included in the application.

9.   Provides requirements to qualify for reclassification as a class 6 property.

10.  Considers a retail project eligible if the retail project meets all other project criteria and is approved by the appropriate governing body.

11.  Asserts real and personal property that are fixed assets of a certified project to be assessed as class six property.

12.  Prohibits property from qualifying for property tax incentives if the ownership of the property that is classified as class six property changes, unless the new owner submit a new application for certification and receives appropriate approval.

13.  Instructs the staff of each city or county to annually submit a report to the respective governing body which must contains specified information.

14.  Directs the clerk of the governing body to provide an approved copy of the report to the ACA and the appropriate county assessor.

Class 6 Property Classification (Sec. 2)

15.  Includes, to statute relating to Class 6 property, real and personal property and improvements that are fixed assets of an ACA certification project and that are valued at full cash value, subject to specified terms and conditions.

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19.                    HB 2834

20.  Initials PRB           Page 0 Commerce

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