ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
bond or override; contracts; prohibition
Purpose
Precludes a person who makes a contribution to an entity promoting the passage of a school district bond or override from bidding on a contract funded as a result of the bond or override.
Background
A school district governing board (governing board) may, and on petition of 15 percent of the school district electors must, hold an election on the first Tuesday after the first Monday in November to decide whether school district bonds will be sold to raise monies for specified purposes in the number and amount provided and payable from the school district's debt service fund. Monies to redeem bonds and pay interest are raised by assessing secondary property taxes in the school district (A.R.S. §§ 15-491 and 15-1023).
If a school district's proposed budget exceeds the
statutory aggregate budget limit, the governing board must order a maintenance
and operations override, special programs override or capital improvements
override election for the school district's qualified electors to affirm or
reject the proposed budget increase. An override election may be held to exceed
the revenue control limit or district additional assistance and may be funded
by assessing secondary property taxes or from revenues other than a property
tax levy. If the election is to require or authorize the school district to
assess secondary property taxes, the election must be held on the Tuesday after
the first Monday in November. The governing board must prepare a proposed
budget increase as well as an alternate budget without a budget increase, which
is adopted if the voters reject the proposal (A.R.S.
§ 15-481).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits, from bidding on a contract that is funded as a result of a bond or override approved by a vote of the qualified electors of a school district, a person who makes a contribution to an entity promoting the passage of the bond or override.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 6, 2023
LB/MH/slp