SB 1592 — governor's declaration; fiscal impact analysis

BillSenate Number:Engrossed governor's declaration;

S.B.fiscal impact analysis State of Arizona Senate Fifty-fifth Legislature Second Regular Session SENATE BILL 1592 AN ACT AMENDING SECTION 9-626, ARIZONA REVISED STATUTES;

1592RELATING GrayTO FloorCONVENTION AmendmentCENTER ReferenceDEVELOPMENT. to:

printed(TEXT billOF AmendmentBILL draftedBEGINS by:ON NEXT PAGE) - i - S.B.

Mike1592 HansBe FLOORit AMENDMENTenacted EXPLANATIONby • Specifies that the prohibitionLegislature of withholding state shared revenues from a city with a convention center project applies to the yearState inof whichArizona: a public health emergency is initially declared.

•Section Specifies1. that the modified economic impact estimate for an eligible convention center project by the Auditor General applies to the year of an initial public health emergency declaration and the year following that declaration.

•Section Makes9-626, conformingArizona changes.Revised Statutes, is amended to read:

Amendment9-626. explanation prepared by Mike Hans 02/24/2022 Fifty-fifth Legislature Gray Second Regular Session S.B.

1592Construction GRAYprogress FLOORreports; AMENDMENT SENATE AMENDMENTS TO S.B.

1592auditor (Referencegeneral toperformance printedmeasures bill)A. Page 4, Line 4 strike "THE GOVERNOR HAS DECLARED" Line 5 after the third "EMERGENCY" insert "IS INITIALLY DECLARED BY THE GOVERNOR" Line 10 after the first "THE" insert "INITIAL" Line 13 after the second "THE" insert "INITIAL" Line 16 after "AN" insert "INITIAL" Amend title to conform RICK GRAY 1592GRAY0750.docx 02/24/2022 07:50 AM S:

MH/slpThe -eligible 1city -shall report progress on the development of any eligible project to the joint committee on capital review twice annually during construction of the eligible project.

B.

Within five years after the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622, and after consultation with the eligible city, the auditor general shall conduct or contract for an economic and fiscal impact analysis of the eligible project in its fifth year of operation following the filing of the certificate of completion of construction.

At a minimum, the analysis shall:

1.

Estimate the effects of direct, indirect and induced economic activity in this state associated with:

(a) Regional and national conventions and trade shows held at the site of the eligible project, the total amount of state general fund revenues derived from that economic activity and the estimated average annual attendance at those events assuming:

(i) The eligible project had not been completed.

(ii) The eligible project has been completed.

(b) The construction of the eligible project and the total amount of state general fund revenues derived from the construction activity.

2.

Compute the total cumulative amount of distributions pursuant to section 9-602 for the first through fifth years following the filing of the certificate of completion of construction for the eligible project pursuant to section 9-622 and from the first through each subsequent fifth year.

3.

Compute the net cumulative distributions for the eligible project by subtracting the amount determined pursuant to paragraph 1, subdivision (b) of this subsection from either the amounts determined pursuant to paragraph 2 of this subsection or, if applicable, the amount of state monies paid under a lease purchase agreement pursuant to section 41-791.04.

4.

Based on the analysis conducted pursuant to this subsection, estimate the minimum required attendance at the eligible project for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter.

The estimates shall be computed as follows:

(a) Divide the total state general fund revenues estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection by the attendance estimated pursuant to paragraph 1, subdivision (a), item (ii) of this subsection.

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1592 (b) Divide the net cumulative distribution amounts for the fifth year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter computed pursuant to paragraph 3 of this subsection by the quotient computed pursuant to subdivision (a) of this paragraph.

(c) Add the average annual attendance estimated pursuant to paragraph 1, subdivision (a), item (i) of this subsection to each of the quotients determined pursuant to subdivision (b) of this paragraph.

The resulting sums are the minimum required attendance amounts for each year.

C.

Beginning in the fifth calendar year following the filing of the certificate of completion of construction of an eligible project pursuant to section 9-622 and each year thereafter, the auditor general shall:

1.

Estimate the average annual attendance at regional and national conventions and trade shows held at the site of the eligible project using any appropriate method to estimate the attendance.

The eligible city shall cooperate with and assist the auditor general in developing the estimates.

2.

Compute the ratio of the cumulative sum of the estimated attendance amounts developed pursuant to paragraph 1 of this subsection for all years through the current year to the cumulative sum of the minimum required attendance amounts for those years computed pursuant to subsection B, paragraph 4, subdivision (c) of this section.

3.