REFERENCE TITLE: public debt; reporting; penalties

 

 

 

State of Arizona

House of Representatives

Fifty-third Legislature

First Regular Session

2017

 

 

HB 2367

 

Introduced by

Representative Lovas

 

 

AN ACT

 

repealing section 18-304, Arizona Revised Statutes; amending sections 35‑501, 35-502, 35-505 and 41‑1277, Arizona Revised Statutes; appropriating monies; relating to public debt reporting.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Repeal

Section 18-304, Arizona Revised Statutes, is repealed.

Sec. 2.  Section 35-501, Arizona Revised Statutes, is amended to read:

START_STATUTE35-501.  State treasurer; debt issuance; reporting requirements; analysis; database; posting

A.  By June 30 of each year, The state treasurer shall ascertain and record in its office compile reports on all issues of debt, including bonds, certificates of participation, bank loans, lease purchases, third‑party financings or other securities issued for a term in excess of one year by the this state, including an agency, board, commission, department or other institution of this state, or a county, city, town, school district, irrigation district, other political subdivision or municipal property corporation within the this state during the latest full fiscal year.  The record shall show the date of issuance, amount, denomination, rates of interest, maturity, dates of the bonds, certificates of participation or securities and other information the state treasurer requires.

B.  The reports on or before August 15 of each year, each entity described in subsection A of this section shall file a report relating to the issuance of bonds and securities debt required under subsection A shall be filed with of this section in a form prescribed by the state treasurer.

C.  Within sixty days of after the issuance and shall contain of debt, each entity described in subsection A of this section shall file a report IN A FORM PRESCRIBED BY the state treasurer that contains the following information:

1.  The par amount of the bonds or securities.

2.  The interest rate, by maturity of the bonds or securities.

3.  The repayment schedule, showing both principal and interest for the issue.

4.  The sources of repayment.

5.  The original issue price and any premium or discount, by maturity, for the issue.

6.  A detailed listing of all issuance costs, regardless of source of payment, including underwriter's compensation, bond counsel fees, financial advisor fees, verification agent fees, placement agent fees, investment securities brokerage fees, registrar fees, trustee fees, credit enhancement fees, rating agency fees, printing costs, registration fees, transfer and recording fees and any other costs directly or indirectly earned or paid as a result of the issuance of the bonds or securities debt, as determined by the state treasurer.

7.  The total amount of parity bonds or securities outstanding, including the issue, at the time of issuance.

8.  The total amount of any bonds or securities, senior or subordinate to the issue outstanding at the time of issuance.

9.  The amount of any constitutional or statutory limitation on the issuance of bonds or securities of the type issued.

10.  The remaining amount of bonds or securities that may be issued within the limitation determined in paragraph 9 of this subsection.

11.  The amount of any constitutional or statutory voter authorization applicable to the issuance of bonds or securities of the type issued.

12.  The remaining amount of bonds or securities that may be issued within the authorization determined in paragraph 9 of this subsection.

13.  Any other similar or related information the state treasurer may determine.

C.  D.  By December 15 of each year, the state treasurer shall provide to the governor, the president of the senate and the speaker of the house of representatives a report of the information collected pursuant to subsection A of this section.  This report shall include an analysis of the outstanding indebtedness of each jurisdiction and the relationship of the outstanding indebtedness to the appropriate debt limitations in article IX, sections 5, 8 and 8.1, Constitution of Arizona.

D.  E.  If as a result of the analysis conducted pursuant to subsection D of this section the state treasurer determines that the outstanding indebtedness of a jurisdiction is in excess of the debt limitation prescribed by the Constitution or statutes of Arizona, the state treasurer shall notify the governing body or board of the jurisdiction, the governor, the president of the senate, the speaker of the house of representatives and, in the case of a school district, the superintendent of public instruction.

E.  F.  The state treasurer shall notify the person or governing body responsible for complying with this section of a failure to comply in whole or in part with the requirements of this section.  Any person or governing body so notified shall comply within thirty days.  Any county, city, town, school district, irrigation district or other political subdivision of the state that fails to comply fully with the provisions of this article shall not issue any additional bonds or other securities. maintain an online accessible and searchable database of the reports required by this section.  Each entity that is required to file a report pursuant to this section shall provide a valid e-mail address to the state treasurer on or before June 1 of each year.  The state treasurer shall post on the state TREASURER'S website a list of each entity that is not in full compliance with this section and shall submit the list to each nationally recognized bond rating agency in the United States. END_STATUTE

Sec. 3.  Section 35-502, Arizona Revised Statutes, is amended to read:

START_STATUTE35-502.  Reports to state treasurer; omission or refusal to comply; violation; classification

A.  The governing body of the county, city, town, district or other political subdivision shall make such reports to the state treasurer as the state treasurer requires relating to the issuance of the bonds and securities debt provided by section 35‑501 and shall notify the state treasurer of the retirement of any such bonds debt, and of all payments of interest thereon on the debt, immediately upon on retirement of the bond debt or payment of interest.

B.  The state treasurer shall notify Each entity required to file a report pursuant to section 35-501 of the entity's failure to comply in whole or in part with the requirements of section 35-501.  Any entity that is notified of a failure to comply shall comply within thirty days after the notification and may not issue any additional debt until the entity is in full compliance with section 35-501.

C.  If an entity is not in full compliance with section 35-501 on October 15, the state treasurer shall suspend all financial distributions from the state treasurer's office until the entity is in full compliance with section 35-501.

B.  D.  Any person or member of any governing body knowingly omitting or refusing to comply with the orders of the state treasurer issued pursuant to this article is guilty of a class 2 misdemeanor.

END_STATUTE

Sec. 4.  Section 35-505, Arizona Revised Statutes, is amended to read:

START_STATUTE35-505.  Exemption; industrial development

This article does not apply to corporations formed pursuant to chapters 5 and 6 of this title, except that the Arizona finance authority shall continue to report debt of the greater Arizona development authority, the Arizona health facilities authority, the Arizona housing finance authority and the water infrastructure finance authority of Arizona, or their successor entities. END_STATUTE

Sec. 5.  Section 41‑1277, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1277.  Joint legislative budget committee; annual report; debt; definitions

A.  On or before January 31 of each year, the joint legislative budget committee staff shall present to the appropriations committees of the senate and the house of representatives a report on state debt and obligations, including:

1.  Outstanding general obligation bonds.

2.  Long‑term notes and obligations.

3.  Certificates of participation and other obligations pursuant to any lease‑purchase agreements.

4.  Revenue bonds.

5.  Deferred rollover payment obligations.

B.  The report shall contain, for the most recent fiscal year:

1.  The statewide aggregate level of outstanding principal and the principal and interest payments, by type of debt or obligation.  The report shall be based on data available from the searchable database required by section 18‑304 35‑501.

2.  Itemization, by budget unit, of the original due date of each deferred payment for deferred rollover payment obligations, the amount of interest paid to date due to the deferral and the amount of yearly interest to be paid in the most recent and the next fiscal year due to the deferral.

3.  Information on per capita state debt and obligations.

4.  Information on the ten year ten‑year history of state debt and obligations based on available data.

C.  The report and a link to the searchable database required by section 18‑304 35‑501 shall be posted on the joint legislative budget committee's website, and a copy of the report shall be provided to any member of the public who makes a request.

D.  For the purposes of this section:

1.  "Deferred rollover payment obligation" means an obligation to make a payment in a fiscal year that was due in and deferred from a previous fiscal year.

2.  "State debt and obligations" means debt and obligations whose principal or interest is paid with state funds. END_STATUTE

Sec. 6.  Appropriation; state treasurer

The sum of $___ is appropriated from the state general fund in fiscal year 2017-2018 to the state treasurer for the purposes provided in this act.