SB1211

House of Representatives

industrial development bonds; review exception.

Sponsors: Senator Martin, Senator Verschoor, Representative Quelland et al

DPA S/E	Committee on Health
W/D	Committee on Commerce
DPA S/E	Caucus and COW
X	As Transmitted to the Governor

SB1211 allows one agency to adopt, in whole or in part, the work product of another agency when multiple agencies are charged with reviewing project financing for a nonprofit nursing home, rest home, skilled nursing facility or life care facility and the project has been reviewed and approved by an industrial development authority.

History

Industrial development bonds are securities issued by or on behalf of a local government to provide debt financing for projects used most often by a private user. Industrial development bond financing normally results in reduced financing costs since interest on the bonds is not subject to federal income taxes. The bonds are an obligation of the private user, not the issuing authority.

In Arizona, the issuer of industrial development bonds is an industrial development authority (IDA) on behalf of a municipality or county. Currently, there are multiple categories of facilities (each called a “project”) which an IDA may finance under Arizona law, and all are eligible for tax-exempt financing if the facility is owned by a 501(c)(3) entity and used by the 501(c)(3) entity for its nonprofit purpose.

Provisions

· Allows agencies to cooperate in the review of a project financing in the following manner:

1. An agency may adopt in whole or in part substantially similar review work performed on the project financing by another agency also charged with review of the project financing.

2. One or more agencies may enter into an intergovernmental agreement for the purpose of consolidating all or part of their review activities of the project financing.

· Allows an agency to schedule its review of project financing in a manner that minimizes the overall review time of the project financing by all agencies.

· Stipulates that an agency that adopts, in whole or in part, review work performed on the project financing by another agency is deemed for all purposes to have complied with its review responsibilities as if the review work had been performed by the agency itself.

· Defines agency to mean an industrial development authority established pursuant to this chapter, the Arizona Department of Housing and any other Arizona state agency charged with review of the project financing for a nonprofit nursing home, nonprofit rest home, nonprofit skilled nursing facility or nonprofit life care facility.

END_STATUTE

· Changes to session law under this bill are repealed as of December 31, 2009.

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Forty-seventh Legislature