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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
bonds; change of purpose; election
Purpose
Allows, until January 1, 2025, a governing body or board of a county, city, town or similar municipal corporation (governing entity) to call an election to change the purposes for which authorized bond monies may be spent if the bonds have not yet been issued. Requires the election to be held on the first Tuesday following the first Monday in November.
Background
A governing entity may issue bonds with the assent of a majority of the qualified electors voting in the election. The call for the election must include the: 1) aggregate amount of the bonds; 2) maximum rate of interest to be paid on the bonds; 3) minimum and maximum number of years bonds of any issue or series may run from their date; 4) purposes for which the money derived from the sale of bonds will be expended; and 5) current outstanding general obligation debt and the constitutional debt limitation of the political subdivision. The governing entity may use the monies received from the sale of the bonds only for the purposes stated in the ballot and for the necessary costs and expenses of the issuance and sale of the bonds (A.R.S. § 35-455).
At least 35 days prior to a political subdivision bond election, the governing entity must mail a copy of an informational pamphlet to every household within the political subdivision that contains a registered voter. The informational pamphlet must contain statutorily prescribed information, including the: 1) amount of the bond authorization; 2) maximum interest rate of the bonds; 3) estimated debt retirement schedule for the current amount of bonds outstanding and for the proposed bond authorization; 4) source of repayment; 5) estimated total cost of the proposed bond authorization; and 6) purpose for which the bonds are to be issued (A.R.S. § 35-454).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a governing entity to call an election to change the purposes for which the monies derived from the sale of bonds authorized at a prior bond election may be spent provided the bonds have not been issued.
2. Requires the governing entity to order the election to be held on the first Tuesday following the first Monday in November.
3. Requires the election notice and procedures to be conducted in the same manner as statutorily outlined for a governing entity to authorize indebtedness.
4. Requires, at least 35 days before the election, the governing entity to mail an informational pamphlet to each household within the political subdivision with a registered voter that contains the:
a) election date;
b) polling locations for the addressee;
c) hours when the polls will be open;
d) purposes for which the bonds were originally issued, as described in the informational pamphlet mailed before the prior bond election;
e) proposed new purposes for the authorized bond monies;
f) proposed new projects and expenditures for which the authorized bond monies will be spent; and
g) arguments for and against changing the purposes for which the authorized bond monies may be spent.
5.
Requires the ballot to contain the words "change capital
improvements, yes" and
"change capital improvements, no" and requires the voter to signify
their desired choice.
6. Repeals the governing entity change of purpose bond election on January 1, 2025.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Specifies that a change of purpose bond election may be called by a governing entity provided the bonds have not yet been issued.
House Action Senate Action
WM 2/17/21 DP 10-0-0-0 FIN 3/24/21 DPA 7-0-3
3rd Read 2/24/21 57-2-1
Prepared by Senate Research
March 24, 2021
MG/FDR/gs