HB2673 - 452R - House Bill Summary

House of Representatives

HB 2673

development authority; correctional facilities

Sponsors: Representatives Voss, Miranda, Pearce, et al.

DP	Committee on Public Institutions & Rural Affairs
dp	Caucus and COW
x	Third Read	This bill as introduced contains *an Emergency clause.*
	As Passed the House

HB 2673 is an emergency measure that expands the definition of projects eligible to receive financing through an industrial development authority (IDA) to include new or existing correctional facilities that contract exclusively with the Arizona Department of Corrections or the Arizona Department of Juvenile Corrections for the housing of inmates or persons adjudicated delinquent.

Current Status

HB 2673 passed the Public Institutions & Rural Affairs Committee unamended. HB 2673 passed the Committee of the Whole as introduced.

History

Industrial development bonds are securities issued by or on behalf of a local government to provide debt financing for projects used by a private contractor. Also, since the interest on these types of bonds is exempt from federal income taxation the financing costs associated with industrial development bond financing is usually reduced. Currently, an industrial development authority (IDA), on behalf of a municipality or county, is the issuer of industrial development bonds. In addition, there are 18 categories of projects that an IDA may finance under Arizona law.

Provisions

· Expands the definition of projects with respect to a corporation formed with the permission of a municipality or county, other than the Arizona Board of Regents, to include new or existing correctional facilities that contract exclusively with the Arizona Department of Corrrections or the Arizona Department of Juvenile Corrections for the housing of inmates or persons adjudicated delinquent.

· Contains an emergency clause.

· Makes other technical and conforming changes.

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· 45th Legislature