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House Engrossed |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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CHAPTER 156
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HOUSE BILL 2367 |
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AN ACT
amending sections 18‑304, 35‑501, 35-502 and 35‑504, Arizona Revised Statutes; 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. Section 18-304, Arizona Revised Statutes, is amended to read:
18-304. Debt reporting by state and local governments; database
A. State
government and all local governments shall report to the state treasurer department of administration all incurred
debt, including the date
of issue, purpose, original amount, current balance, interest paid to date and
principal and interest paid in the latest full fiscal year according to a
schedule determined by the treasurer department.
B. The
state treasurer department of administration shall maintain an
online accessible and searchable database and, subject to approval by the joint
legislative budget committee, may require additional information that is not listed in this
section.
Sec. 2. Section 35-501, Arizona Revised Statutes, is amended to read:
35-501. Records of bond issues; debt-level analysis and report
A. By
June 30 of each year, the state treasurer
department of administration
shall ascertain and record in its office all issues of bonds, certificates of
participation or other securities issued for a term in excess of one year by the this
state or a county, city, town, school district, irrigation district, other
political subdivision or municipal property corporation within the this
state. 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 department of administration requires.
B. The
reports relating to the issuance of bonds and securities required under
subsection A of this section shall
be filed with the state treasurer department of administration
within sixty days of after the issuance and shall
contain 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, as determined by the state treasurer department of administration.
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 department
of administration may determine.
C. By
December 15 of each year, the state treasurer
department of administration
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. If
as a result of the analysis conducted pursuant to subsection C of this section the state treasurer department of administration 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 department of administration 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. The
state treasurer department of administration 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 this
state that fails to comply fully with the
provisions of this article shall not issue any additional bonds or
other securities.
Sec. 3. Section 35-502, Arizona Revised Statutes, is amended to read:
35-502. Reports; 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 department
of administration as the treasurer
department requires
relating to the issuance of the bonds and securities provided by section 35‑501, and shall notify the treasurer department of the retirement of any such bonds, and of all payments of interest thereon on the bonds, immediately upon
on retirement of the
bond or payment of interest.
B. Any
person or member of any governing body knowingly omitting or refusing to comply
with the orders of the state treasurer department of administration
issued pursuant to this article is guilty of a class 2 misdemeanor.
Sec. 4. Section 35-504, Arizona Revised Statutes, is amended to read:
35-504. Debt oversight commission; membership; compensation; duties; commission termination
A. In
order to provide more accurate and meaningful information to the public
regarding bond issues, the debt oversight commission is established in the office of the state treasurer department of administration.
B. The
commission consists of the state treasurer
director of the department of
administration, who serves as chairman, and four private citizens who are knowledgeable in the
area of finance or bond financing, one who is appointed by the governor and three who are appointed jointly by
the president of the senate and the speaker of the house of representatives.
The terms of appointive members are three years.
C. An appointment to fill a vacancy on the commission resulting from other than expiration of term is for the unexpired portion of the term.
D. The
office of the state treasurer department of administration
shall provide secretarial and staff support services to the commission.
E. The
private citizen members of the commission are eligible to receive fifty dollars
per day for time spent in the performance of their duties. These monies shall
be paid from monies appropriated to the state
treasurer department
of administration.
F. The commission shall meet at least annually and, in addition, at the call of the chairman. The commission shall meet at such times and places as convenient or necessary to conduct its affairs and shall render its findings, reports and recommendations in writing to the governor and to the legislature.
G. The commission shall:
1. Review
the information provided to the state treasurer
department of administration
as prescribed in section 35‑501.
2. Ascertain the bonded indebtedness of all taxing jurisdictions and the relationship to the appropriate debt limitation.
H. The commission established by this section ends on July 1, 2026 pursuant to section 41‑3103.
APPROVED BY THE GOVERNOR APRIL 17, 2017.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 17, 2017.