ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2598: public debt; refinance; JCCR review |
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PRIME SPONSOR: Representative Kern, LD 20 BILL STATUS: Transmitted to Governor
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Requires the Arizona Department of
Administration (ADOA) to submit for review proposed
refunding of any tax-exempt deficit financing agreement to the Joint Committee
on Capital Review (JCCR) prior to entering into any lease-purchase agreement or
issuing revenue bonds.
History
Laws 2009, Third Special Session, Chapter 6, section 32 required ADOA to enter into to enter into lease purchase agreements for state-owned facilities by June 30, 2010 for a fixed term of not more than 20 years and resulting in a total amount of net available proceeds to the GF of not more than $735.4 million. These bonds, referred to as Series 2010A were sold in January of 2010 and refinanced in January of 2019.
Laws 2010, Sixth Special Session, Chapter 4 section 2 required ADOA to enter into lease purchase agreements for state-owned facilities by September 30, 2010 for a fixed term of not more than 20 years and resulting in net proceeds to the GF of not more than $300 million. The law also requires ADOA to notify JCCR of the lease-purchase agreement's proposed terms and conditions at least 10 days before an initial public offering document is released. These bonds, referred to as Series 2010B were sold in June of 2010.
Title 5, Chapter 5.1, Article 1 required the Director of ADOA to issue lottery revenue bonds to provide for not more than $450 million for deposit into the GF by December 31, 2010. The law requires the Director of ADOA to notify the Joint Legislative Budget Committee of the bond's proposed terms and conditions at least 10 days before and initial public offering document is released. The lottery revenue bonds were refinanced in December of 2018.
Provisions
1. Requires ADOA to submit for review proposed refunding of any tax-exempt deficit financing agreement to the JCCR prior to entering into any lease-purchase agreement or issuing revenue bonds.
2. Defines tax-exempt financing as the agreements entered into pursuant to:
a. Laws 2009, Third Special Session, Chapter 6, section 32 (Series 2010A);
b. Laws 2010, Sixth Special Session, Chapter 4, section 2 (Series 2010B);
c. Title 5, Chapter 5.1, Article 1 (lottery revenue bonds). (Sec. 1)
3. Contains a delayed effective date of January 1, 2020.
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6. ---------- DOCUMENT FOOTER ---------
7. Fifty-fourth Legislature HB 2598
8. First Regular Session Version 5: Transmitted
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