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House Engrossed
school districts; bonds; financial advisors |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2320 |
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AN ACT
amending title 15, chapter 4, article 5, Arizona Revised Statutes, by adding section 15-492; relating to school bond elections.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 4, article 5, Arizona Revised Statutes, is amended by adding section 15-492, to read:
15-492. Independent municipal advisors; duties; prohibition
A. Before calling an election pursuant to this article, the governing board of a school district shall hire an independent municipal advisor who is registered and in good standing with the securities and exchange commission, or its successor, to advise and assist the school district governing board and the school district with both:
1. The election.
2. If a majority of votes cast at the bond election favors issuing the bonds, each bond issue authorized by the election.
B. An independent municipal advisor who is hired pursuant to subsection A of this section shall:
1. Advise the school district governing board and the school district on all aspects of issuing the bonds to assist the school district in achieving the most effective cost of borrowing, including:
(a) Determining the repayment structure of the bonds.
(b) Obtaining ratings, if necessary, on the bonds.
(c) Hiring other professionals necessary to sell and issue the bonds.
(d) Assisting in any other matter that is related to the issuance of the bonds.
2. Assist the school district governing board and the school district in preparing the informational pamphlet required pursuant to title 35.
3. Act in the best interests of the school district.
C. An independent municipal advisor who is hired pursuant to subsection A of this section may not:
1. Collude in advising on the selection of other professionals to assist the school district.
2. Purchase or underwrite any issue of school district bonds, if the person served as the independent municipal advisor for that issue of bonds.