ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
FINAL AMENDED
FACT SHEET FOR S.B. 1211
industrial development bonds, review exception.
Purpose
Allows an industrial development authority (IDA), the governing bodies that approve the formation of an IDA, and specified state agencies involved in the review of bond issuances, to cooperate in the review of an IDA project if it is for a nonprofit nursing home, rest home, skilled nursing facility or life care facility.
Background
Legislation enacted in 1968 authorized municipalities and counties to cause the formation of IDAs. This legislation provided that IDAs, which are incorporated as Arizona nonprofit corporations, are political subdivisions of the state and authorized IDAs to issue revenue bonds and to use the proceeds from the sale of the bonds to finance certain types of projects.
The Arizona Department of Housing (ADOH) is required to review and approve IDA bond issuances for multifamily residential rental projects, sanitariums, clinics, medical hotels, rest homes, nursing homes, skilled nursing facilities and life care facilities. The review considers the following:
a) The demand and feasibility of the project in the area where the facility is located.
b) The terms and conditions of the proposed bonds.
c) The proposed use of bond proceeds.
d) The benefit of the project to the public if it involves rental housing for persons of low and moderate income.
e) The benefit of the project including rent, fees and other charges to the public if it is a nursing home or life care facility.
ADOH is required to either approve or disapprove the project no later than 30 days after a request for an approval. If the project is approved, the IDA may issue the bonds described in the approval request.
S.B. 1211 allows reviewing entities to cooperate in the review process of bond issuances if it is for nonprofit nursing homes, rest homes, skilled nursing facilities or life care facilities.
There is no anticipated fiscal impact to the state General Fund associated with this measure.
Provisions
1. Allows a reviewing entity responsible for the review of bond issuances for a project involving a nonprofit nursing home, rest home, skilled nursing facility or life care facility to agree to share information, coordinate review schedules or jointly conduct reviews with another reviewing entity.
2. Allows a reviewing entity charged with the review of the project to adopt in whole or in part substantially similar review work on the project done by another reviewing entity.
3. Deems a reviewing entity that has adopted in whole or in part another agency’s review, to be in compliance with its own review responsibilities as if the review work had been performed by the reviewing entity itself.
4. Defines “reviewing entity” to mean an IDA, the governing bodies approving the formation of an IDA, ADOH, the Arizona Health Facilities Authority, or the Arizona Department of Insurance.
5. Repeals the multiple review provisions for certain nonprofit project bond issuances on January 1, 2010.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Eliminates the exemption from the ADOH approval process for the specified projects.
2. Allows an IDA, ADOH, and other state agencies to cooperate in the review process.
Amendments Adopted by Committee of the Whole
1. States agencies that adopt in whole or in part another agencies review work on the project financing are deemed to be in compliance with its review responsibilities.
2. Allows, instead of requires, agencies to schedule their reviews to minimize the overall review of the project.
3. Defines “agency.”
4. Adds a delayed repeal date.
Amendments Adopted by the House of Representatives
1. Adopted a strike everything amendment regarding the same subject.
2. States the specific entities that may cooperate in the review of bond issuances for a nonprofit nursing home, rest home, skilled nursing facility or life care facility.
3. Removes the specific provisions regarding the use of intergovernmental agreements and scheduling to minimize review time and states generally that the reviewing entities may agree to share information, coordinate schedules or jointly conduct reviews.
4. Defines terms.
5. Changes the repeal date.
6. Makes the provisions session law instead of statutory law.
Senate Action House Action
CED 2/15/06 DPA 7-0-1 HEALTH 3/29/06 DPA/SE 8-0-0-1
3rd Read 3/14/06 29-0-0-0 COM 3/21/06 W/D
Final Read 4/19/06 27-0-3-0 3rd Read 4/13/06 56-3-1-0
Signed by the Governor 4/25/06
Chapter 218
Prepared by Senate Research
May 1, 2006
BP/HG/ac