REFERENCE TITLE: theme park districts; extension
State of Arizona
House of Representatives
First Regular Session
Representatives Cobb: Bolding, Ch  vez, Toma
amending sections 48-6201, 48-6202, 48-6204, 48-6231, 48-6232, 48-6233, 48-6253, 48-6272, 48-6280, 48-6281 and 48-6282, Arizona Revised Statutes; amending laws 2005, chapter 248, section 2, as amended by laws 2007, chapter 216, section 17 and laws 2012, chapter 206, section 13; relating to theme park districts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section  1. Section 48-6201, Arizona Revised Statutes, is amended to read:
In this chapter, unless the context otherwise requires:
1. "Board" means the board of directors of a district.
2. "District" means a theme park district established pursuant to this chapter.
3. "Site host" means a city,   or county or Indian tribe, nation, community or band.
4. "Theme park":
(a) Means any combination of recreational, entertainment, sports, amusement and cultural venues and parking facilities with a central access designed and built around a particular time, place, story or subject, including consistent presentation of architecture, costuming, merchandise, food, games, rides and attractions.
(b) includes any buildings and IMPROVEMENTS used for overnight lodging or ACCOMMODATION of theme park patrons and other guests.END_STATUTE
Sec.  2. Section 48-6202, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6202. Formation of district
A. The governing bodies of a city with a population of more than one million persons and a county with a population of more than one hundred twenty-five thousand but less than one hundred fifty thousand persons and a city with a population of more than three thousand persons but less than five thousand persons that is located entirely in that county may establish in any combination that includes the county a theme park district as provided by this chapter.   For the purposes of this subsection, the population shall be determined according to the most recent population estimate data produced by the office of economic opportunity at the time the district is established.   The district may include theme park sites in one or both cities or in the county establishing the district, or in any combination of a city or cities and a county, including a combination of a county with a population of more than one hundred twenty-five thousand but less than one hundred fifty thousand persons and a city with a population of more than three thousand persons but less than five thousand persons that is located entirely in that county. The city or cities and the county shall establish the geographical boundaries of the district, which shall include only the sites of the theme parks.   The district may be established with a single theme park site. ,   Any additional sites may be added after the district is initially established and the geographical boundaries of the district may be revised after it is initially established.
B. The district is a corporate and political body and, except as otherwise limited, modified or provided by this chapter, has all of the rights, powers and immunities of municipal corporations.
C. The district is considered to be a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona.
D. The district is regarded as performing a governmental function in carrying out the purposes of this chapter. The property acquired, leased or constructed by the district, the activities of the district in maintaining and caring for the property and the monies derived by the district from operating the property are exempt from state and local income and property taxation.  A hotel building that is located in a district that is less than twenty acres and contains less than one million square feet of building or other IMPROVEMENTS is not exempt from state and LOCAL property taxation.   At the CONCLUSION of the lease, That hotel building shall be returned to the lessee under the lease with the district and if subject to a ground lease with a tax exempt ENTITY, the hotel building and other improvements are SUBJECT to state and local property taxation as possessory IMPROVEMENTS on government property as defined in section 42-15301.END_STATUTE
Sec.  3. Section 48-6204, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6204. Administrative powers and duties
A. The board of directors, on behalf of the district, may:
1. Adopt and use a corporate seal.
2. Sue and be sued.
3. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter.
4. Adopt administrative rules as necessary to administer and operate the district and any property under its jurisdiction.
5. Acquire by any lawful means, except the power of eminent domain, and operate, maintain, encumber, lease and dispose of real and personal property and interests in property.
6. Retain legal counsel and other consultants as necessary to carry out the purposes of the district.
B. The board of directors shall:
1. Appoint from among its members a chairman chairperson, a secretary and such other officers as may be necessary to conduct its business.
2. Designate a fiscal agent to deposit, hold, invest and disburse the district   s monies.
3. Provide for the acquisition, construction, renovation, redevelopment, lease, use and maintenance of the properties and interests owned or controlled by the district.
4. Keep and maintain a complete and accurate record of all of its proceedings.   The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.
5. Enter into intergovernmental agreements with the county and city, pursuant to title 11, chapter 7, article 3, for administrative and staff support and meeting accommodations for accomplishing the purposes of the district.
6. Enter into contracts, leases and other agreements in the interest of the district or to carry out and accomplish the purposes of this chapter, including construction contracts and agreements with users of the theme parks.
7. Contract for consulting, legal, accounting and other outside professional services, including a professional facility management company. END_STATUTE
Sec.  4. Section 48-6231, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6231. Constructing and maintaining theme parks; limitation on retail sales
A. The district may provide for the construction, financing, furnishing and maintenance of one or more theme parks in both the city or cities and the county establishing the district. The district shall own or lease all buildings and other improvements it constructs, renovates or redevelops subject only to liens and other security interests of record.   The district may construct its facilities on real property owned or leased by the district or leased by the district from one or more site hosts as provided by section 48-6233.
B. On full repayment of the bonds prescribed by section 48-6253, ANY REAL PROPERTY, BUILDINGS OR OTHER IMPROVEMENTS CONVEYED OR LEASED TO THE DISTRICT WILL BE RECONVENED BY THE DISTRICT TO THE LESSEE UNDER THE LEASE WITH THE DISTRICT.
C. ANY CONSTRUCTION ON OR FOR THE THEME PARK MAY INCLUDE THE RENOVATION OR REDEVELOPMENT OF EXISTING BUILDINGS OR IMPROVEMENTS and theme park facilities are not limited to NEW BUILDINGS OR IMPROVEMENTS.
B. D. Not more than one-half of the business conducted at any theme park facility may consist of retail sales of tangible personal property, measured either by the number of employees assigned to retail sales or the square footage of the facility used for retail sales.   For the purposes of this subsection, "retail sales" means the sale of tangible personal property to an ultimate consumer.   Retail sales do not include:
1. Sales of food and beverages for consumption on the premises of the theme park facility.
2. The distribution without charge of promotional products that display the theme park logo or trademark.
3. Sales solely to employees of the theme park.
C. E. Title 34 applies to the district, except that Notwithstanding title 34 or title 41, chapter 23, the district may use alternative systems and procedures, including design-build construction and qualifications-based selection of contractors or any other system or procedure that the district deems appropriate, either by direct selection or by public competition, to expedite the design and construction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement.   NOTWITHSTANDING any other provision of THIS SECTION OR ANY OTHER statute, THE DISTRICT SHALL APPROVE ALL ARCHITECTS, DESIGNERS, ENGINEERS AND CONTRACTORS that are SELECTED BY THE DEVELOPER.   For the purposes of this subsection:
1. "Design-build" means a process of entering into and managing a contract between the district and another party in which the other party agrees to both design and build any structure, facility or other items specified in the contract.
2. "Qualifications-based selection" means a process of entering into and managing a contract between the district and another party in which the other party is selected by the district on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the district is authorized to construct or lease. END_STATUTE
Sec.  5. Section 48-6232, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6232. Operational powers of district
The district, through the board of directors, may:
1. Approve contractors and architects for the construction of to construct facilities, unless an architect will be employed directly by a contractor.
2. Negotiate agreements with the contractor and architect, unless the architect will be employed directly by the contractor.
3. Work with the users, contractors and architects to prepare a themed design for the facilities.
4. Prepare construction budgets and schedules.
5. Prepare the annual operating budget for the district pursuant to section 48-6251.
6. Negotiate lease or use agreements with parties that will occupy and use the district facilities.
7. Review construction change order requests.
8. Arrange for capital financing, as needed.
9. In consultation with the users of the district's facilities, negotiate one or more contracts for the lease, use, management, operation and maintenance of the district's facilities.
10. Take any other actions that are necessary to ensure that the district's facilities are constructed according to the schedule and budget. END_STATUTE
Sec.  6. Section 48-6233, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6233. Site host relations
A. The district may locate any of its facilities on real property leased from one or more site hosts.   The district may negotiate agreements with site hosts, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 if a site host is a public agency as defined in section 11-951, concerning the real property, infrastructure and parking to be provided by the site host.   All agreements must:
1. Provide that the site host shall indemnify and hold the district harmless from any liability to the extent resulting from the negligent or intentional acts or omissions of the site host or its representatives and agents or employees resulting from any access ways provided by the site host and reasonably used by the public for ingress and egress to the land, infrastructure and parking facilities provided by the site host for use in connection with any theme park.
2. Require the site host to maintain insurance or an adequate self-insurance plan for any liability of the site host, with a waiver of sovereign immunity if necessary.
B. Before entering into an agreement with any site host, the district shall require assurance that the site host has the financial capability to perform its obligations under any agreement with the district.
C. If a site host is an Indian tribe, nation, band or community:
1. The site host must provide assurance to the district that the real property is not and will not be made part of an Indian reservation under the laws of the United States during the term of the lease agreement with the site host.
2. The site host must provide assurance to the district that the site host has legal authority to lease the real property to the district for uses consistent with the purposes of this chapter for the term of the lease agreement with the site host.
3. The district shall require as terms of the agreement between the district and the site host:
(a) A waiver of sovereign immunity to allow the district to enforce the agreement.
(b) The site host's consent to the jurisdiction of state and federal courts.
(c) A waiver of the right to require the district to exhaust tribal remedies before bringing an action in state or federal courts.
(d) That state and federal law will govern the interpretation of any agreements entered into between the district and the site host.
(e) That the site host will not prevent, impair or impede the imposition, collection and administration of district taxes as provided by section 48-6253.
4. Gambling shall not be allowed in the district pursuant to any tribal-state gaming compact under title 5, chapter 6.   The district shall require, as a term of the agreement between the district and the site host, that the site host shall not operate or support gambling within fifty miles of the exterior boundaries of the district pursuant to any tribal-state gaming compact under title 5, chapter 6. END_STATUTE
Sec.  7. Section 48-6253, Arizona Revised Statutes, is amended to read:
START_STATUTE48-6253. Transaction privilege tax; administration; expiration