ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: APPROP DPA/SE 12-3-0-0


HB 2040: industrial development bonds; preapproval; repeal

NOW: industrial development bonds; preapproval; threshold

Sponsor: Representative Bliss, LD 1

House Engrossed

Overview

Reduces the percentage of the state population that a county or municipality must have, from 7% to 3%, before it may approve corporations to issue certain bonds.

History

Statute outlines that municipalities may issue bonds to finance housing development projects (A.R.S. § 9-441.03).

Bonds that are issued by corporations to finance multifamily residential rental project must be approved by a municipality or county with a population size of at least 7% of the state's population or by the Arizona Finance Authority. A bond that does not meet these requirements is subject to approval by the Arizona Department of Housing (A.R.S. § 35-726).

Some other projects that require bonds to be pre-approved include clinics, medical hotels and nursing homes (A.R.S. § 35-726).

Provisions

1.   ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteAllows counties and municipalities with a population greater than 3%, rather than 7%, of the state's population to approve corporations to issue certain bonds. (Sec. 1)

2.   Makes technical changes. (Sec. 1)

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6.                     HB 2040

7.   Initials AF/LV        Page 0 House Engrossed

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