House of Representatives

HB 2362

greater Arizona development authority; assistance

Sponsors: Representative Flake

X	Committee on Counties & Municipalities
	Committee on Appropriations
	Caucus and COW
	Third Read
	As Passed the House

HB 2362 allows the Greater Arizona Development Authority (GADA) to use the Technical Assistance Loan Fund for interim finance purposes and modifies other operating procedures within GADA.

Summary of the proposed strike-everything amendment to HB 2362:

History

Laws 1997, Chapter 208, established GADA as a bonding authority for the primary purpose of assisting rural communities in developing and financing public infrastructure projects. Currently, political subdivisions, special districts and Indian tribes are eligible to receive technical assistance and financial assistance from GADA. The GADA revolving fund (Fund) was also established consisting of legislative appropriations, public and private grants, loan repayments, administrative fees, penalties, interest and other monies received. Monies appropriated by the Legislature to the Fund can be used to secure bonds issued by GADA, earnings on monies in the Fund can be used to secure bonds, provide technical assistance to local communities developing infrastructure projects, compensate staff and pay operating expenses.

Provisions

· Allows GADA to provide short-term assistance to political subdivisions, special districts, Indian tribes and tribal subdivisions and defines short-term assistance.

· Deletes the requirement that GADA review applications for technical and financial assistance only on an annual or semiannual basis.

· Allows applications for financial assistance to be accepted quarterly or monthly.

· Allows GADA to use the Technical Assistance Loan Fund for short-term assistance and states that GADA shall only provide short-term assistance if the applicant has an approved financial assistance application on file.

· Stipulates that an applicant shall repay short-term assistance pursuant to a technical assistance repayment agreement.

· Stipulates that the approval of financial assistance to a city, town or county shall only be conditioned on the approval of its voters if:

Ø The city or town has a population of more than 50,000 persons.

Ø The county has a population of more than 200,000 persons but less than one million persons.

· Stipulates that GADA may withhold state shared revenues due to political subdivisions for payment of interest or principal on bonds by the political subdivision that have been secured by a pledge of distributions (withholding is currently mandated).

· Makes other technical and conforming changes.

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· 45th Legislature

· Second Regular Session 2 March 25, 2002

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