ARIZONA STATE SENATE
Phoenix, Arizona
municipal bonds; electronic bidding
Allows municipal and county bonds to be sold by an electronic bidding process.
Background
Generally speaking, county and municipal debt financing through issuing bonds is specifically authorized in statute. Presently, such bonds must be sold through a competitive sale method and all bids must be sealed. This legislation allows, and provides guidelines for, the sale of municipal and county bonds through an electronic bidding process. Presently a number of states, including Washington, California, New York, Georgia, Maryland and Ohio, and cities sell bonds through electronic bidding processes.
This legislation has no direct impact to the state general fund.
1. Allows the following bonds to be sold by an electronic bidding process:
a. municipal housing development bonds.
b. municipal utility bonds.
c. municipal street and highway improvement bonds.
d. municipal general public improvement bonds.
e. county sewer system bonds.
f. county street and highway improvement bonds.
g. county and other municipal indebtedness bonds.
h. county stadium district bonds.
2. Allows bids for county and municipal bonds sold through an electronic bidding system to be:
a. concealed until a specified time or until disclosed in an on-line bidding process.
b. subject to improvement in favor of the municipality or county before a specified time.
c. for an entire issue of bonds or specified maturities according to the manner, terms and notice provisions ordered by the governing body.
3. Allows counties to sell sewer system bonds through an accelerated bidding process and generally applies conditions and restriction of municipal bonds to county sewer bonds.
4. Stipulates that bonds or obligations of a municipality cannot give rise to a general obligation or liability to the municipality and cannot be payable from any monies other than those statutorily authorized.
5. Defines “on-line bidding process” as a procurement process in which public agencies receive vendors’ bids for goods, services, construction or information services electronically over the internet in a real-time, competitive bidding event.
6. Provides for a general effective date.
House Action
CM 1/16/01 DP 9-0-0-1-0
EUT 1/24/01 DP 10-0-0-0-0
3rd Read 2/14/01 58-0-2-0
Prepared by Senate Staff
March 15, 2001