Reference Title: water infrastructure finance authority; continuation

AN ACT
REPEALING SECTION 41-2999.05, ARIZONA REVISED STATUTES; AMENDING TITLE 41, CHAPTER 27, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-3004.16; AMENDING TITLE 48, CHAPTER 4, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 48-609.01; AMENDING SECTION 49-1203, ARIZONA REVISED STATUTES; AMENDING SECTION 49-1203, ARIZONA REVISED STATUTES; RELATING TO THE WATER INFRASTRUCTURE FINANCE AUTHORITY.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Repeal

Section 41-2999.05 , Arizona Revised Statutes, is repealed.

Sec. 2. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3004.16, to read:

41-3004.16 . Water infrastructure finance authority; termination July 1, 2004

A. THE WATER INFRASTRUCTURE FINANCE AUTHORITY TERMINATES ON JULY 1, 2004.

B. SECTIONS 49-1201 THROUGH 49-1204, 49-1224 THROUGH 49-1226, 49-1244, 49-1245, 49-1246 AND 49-1261 THROUGH 49-1268 ARE REPEALED ON JANUARY 1, 2005, IF THE AUTHORITY:

1. HAS NO OUTSTANDING CONTRACTUAL OBLIGATIONS WITH THE UNITED STATES OR ANY UNITED STATES AGENCY.

2. HAS NO DEBTS, OBLIGATIONS OR GUARANTEES THAT WERE ISSUED FOR THE PURPOSES OF TITLE 49, CHAPTER 8.

3. HAS OTHERWISE PROVIDED FOR PAYING OR RETIRING SUCH DEBTS OR OBLIGATIONS.

C. IF ANY DEBT OR OBLIGATION LISTED IN SUBSECTION B OF THIS SECTION EXISTS AND NO SATISFACTORY PROVISION HAS BEEN MADE TO PAY OR RETIRE THE DEBT OR OBLIGATION, THE AUTHORITY AND STATUTES SHALL CONTINUE IN EXISTENCE UNTIL THE DEBT OR OBLIGATION IS FULLY SATISFIED.

Sec. 3. Title 48, chapter 4, article 2, Arizona Revised Statutes, is amended by adding section 48-609.01, to read:

48-609.01 . Special provisions pertaining to loan agreements

A. EACH MUNICIPALITY THAT HAS ENTERED INTO, OR ENTERS INTO, A LOAN AGREEMENT WITH THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA PURSUANT TO SECTION 48-622 SHALL, IF THE MUNICIPALITY ADOPTS AN ORDINANCE FOR COLLECTION OF ASSESSMENTS BY TAXATION PURSUANT TO SECTION 48-608, REMAINS CONTINGENTLY LIABLE FOR ALL AMOUNTS TO BE PAID PURSUANT TO THE LOAN AGREEMENT.

B. TO IMPLEMENT CONTINGENT LIABILITY THE MUNICIPALITY SHALL, NO LATER THAN TEN DAYS BEFORE IT IS REQUIRED TO PAY ANY AMOUNTS UNDER A LOAN AGREEMENT FROM SPECIAL ASSESSMENTS, TRANSFER FROM ITS GENERAL FUND TO THE COUNTY TREASURER AN AMOUNT EQUAL TO ANY THEN DUE AND UNPAID SPECIAL ASSESSMENTS SECURING A LOAN AGREEMENT BEING COLLECTED PURSUANT TO SECTION 48-608. THE MUNICIPALITY SHALL DETERMINE IF THE SPECIAL ASSESSMENTS ARE DELINQUENT. IF, DUE TO THE TIMING OF COLLECTIONS MADE PURSUANT TO SECTION 48-608, THE MUNICIPALITY IS UNABLE TO PAY ANY AMOUNTS DUE ON A LOAN AGREEMENT, THE MUNICIPALITY SHALL ADVANCE THE AMOUNTS FROM ITS GENERAL FUND AND REIMBURSE ITSELF FROM LATER SPECIAL ASSESSMENT COLLECTIONS THAT ARE NOT NEEDED TO MAKE PAYMENTS ON THE LOAN AGREEMENT.

C. THE PAYMENT BY THE MUNICIPALITY TO THE COUNTY TREASURER PURSUANT TO SUBSECTION B OF THIS SECTION SHALL NOT SATISFY THE AMOUNT OF TAXES DUE, BUT SHALL OPERATE AS AN ASSIGNMENT OF ALL RIGHTS TO TAXES COLLECTED THEREAFTER, INCLUDING PENALTIES AND INTEREST, TO THE MUNICIPALITY AND THE TAXES SHALL REMAIN SUBJECT TO COLLECTION IN THE SAME MANNER AS ALL OTHER GENERAL TAXES. ON THE PAYMENT OF TAXES OR SALE OF THE PROPERTY ASSESSED, THE COUNTY TREASURER SHALL RETURN THE PORTION PAID BY THE MUNICIPALITY, PLUS A PRO-RATA SHARE OF ALL PENALTIES AND INTEREST TO REIMBURSE AMOUNTS PAID FROM THE MUNICIPALITY'S GENERAL FUND.

D. THE MUNICIPALITY MAY ALSO ENFORCE ALL DELINQUENT ASSESSMENTS SECURING A LOAN AGREEMENT THROUGH THE SUMMARY SALE PROVISIONS OF TITLE 35, CHAPTER 3, ARTICLE 4.1 AND MAY REFUND THE SPECIAL ASSESSMENTS IN THE MANNER PROVIDED IN TITLE 35, CHAPTER 3, ARTICLE 4.

Sec. 4. Section 49-1203, Arizona Revised Statutes, is amended to read:

49-1203 . Powers and duties of authority

A. The authority is a corporate and politic body and shall have an official seal that shall be judicially noticed. The authority may sue and be sued, contract and acquire, hold, operate and dispose of property.

B. The authority, through its board, may:

1. Issue negotiable water quality bonds pursuant to section 49-1261 for the following purposes:

(a) To generate the state match required by the clean water act for the clean water revolving fund and to generate the match required by the safe drinking water act for the drinking water revolving fund.

(b) To provide financial assistance to political subdivisions, Indian tribes and eligible drinking water facilities for constructing, acquiring or improving wastewater treatment facilities, drinking water facilities, nonpoint source projects and other related water quality facilities and projects.

2. Provide financial assistance to political subdivisions and Indian tribes from monies in the clean water revolving fund to finance wastewater treatment projects.

3. Provide financial assistance to drinking water facilities from monies in the drinking water revolving fund to finance these facilities.

4. Guarantee debt obligations of, and provide linked deposit guarantees through third party lenders to:

(a) Political subdivisions that are issued to finance wastewater treatment projects.

(b) Drinking water facilities that are issued to finance these facilities.

5. Provide linked deposit guarantees through third party lenders to political subdivisions and drinking water facilities.

6. Apply for, accept and administer grants and other financial assistance from the United States government and from other public and private sources.

7. Enter into capitalization grant agreements with the United States environmental protection agency.

8. Adopt rules pursuant to title 41, chapter 6 governing the application for and awarding of wastewater treatment facility, drinking water facility and nonpoint source project financial assistance under this article, the administration of the clean water revolving fund and the drinking water revolving fund and the issuance of water quality bonds.

9. HIRE A DIRECTOR AND STAFF FOR THE AUTHORITY.

9. 10. Contract for the services of outside advisors, attorneys, consultants and aides reasonably necessary or desirable to allow the authority to adequately perform its duties.

10. 11. Contract and incur obligations as reasonably necessary or desirable within the general scope of authority activities and operations to allow the authority to adequately perform its duties.

11. 12. Assess financial assistance origination fees and annual fees to cover the reasonable costs of administering the authority and the monies administered by the authority. Any fees collected pursuant to this paragraph constitute governmental revenue and may be used for any purpose consistent with the mission and objectives of the authority.

C. The board shall transmit any monies received pursuant to subsection B, paragraph 6 of this section to the state treasurer for deposit in the appropriate fund as prescribed by the grant or other financial assistance agreement.

D. Disbursements of monies by the water infrastructure finance authority pursuant to a financial assistance agreement are not subject to title 41, chapter 23.

Sec. 5. Purpose

Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the water infrastructure finance authority to provide a source of financing for capital projects for water treatment, including applying for and acquiring any federal financial assistance that is available and to enhance security for authority loan agreements.

Sec. 6. Retroactivity

Sections 1 and 2 of this act are effective retroactively to July 1, 1999.

APPROVED BY THE GOVERNOR MAY 18, 1999.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 18, 1999.