Assigned to CED                                                                                                         AS PASSED BY THE SENATE

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1211

industrial development bonds, review exception.

Purpose

            Allows any state agency or industrial development authority involved in the review of bond issuances to cooperate in the review of the 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 industrial development authorities (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:

• The demand and feasibility of the project in the area where the facility is located.
• The terms and conditions of the proposed bonds.
• The proposed use of bond proceeds.
• The benefit of the project to the public if it involves rental housing for persons of low and moderate income.
• 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 agencies 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 an agency responsible for the review of bond issuances for the financing of a nonprofit nursing home, rest home, skilled nursing facility or life care facility to cooperate in the review process in the following manner:

a) an agency charged with the review of the project may adopt in whole or in part a substantially similar review work on the project done by another agency.

b) an agency charged with the review of the project may enter into an intergovernmental agreement with other agencies involved in the review process in order to consolidate the review.

2. States agencies, to the extent practicable, may schedule their reviews in a way that minimizes the overall review of the project.

3. Deems an agency 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 agency itself.

4. Defines “agency” to mean an IDA, the ADOH and any other state agency responsible for the review of the specified bond issuances.

5. Repeals the multiple review provisions for certain nonprofit project bond issuances on January 1, 2011.

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.

Senate Action

CED                2/15/06     DPA     7-0-1

3^rd Read           3/14/06                   29-0-0-0

Prepared by Senate Research

March 20, 2006

BP/HG/ac