Assigned to FIN                                                                                                                               FOR COMMITTEE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2076

 

schools; revenue bonds; investments

 

Purpose

 

Broadens the investment authority of the State Treasurer or bond trustee for school facilities revenue bonds and school improvement revenue bonds.

 

Background

 

Current statute allows the School Facilities Board (SFB) to authorize up to $800 million in revenue bonds to correct existing size and quality related school facilities deficiencies (ARS §15-2081). The Legislature established the school improvement revenue bond debt service fund, a separate debt service revenue bond fund for bonds issued to correct school deficiencies separate from the new construction debt service fund allowed for under Students FIRST, the school facilities revenue bond debt service fund (Laws 2000, Chapter 1).

 

Currently, the State Treasurer or bond trustee is authorized to invest monies from the school improvement revenue bond debt service fund and the school facilities revenue bond debt service fund (Laws 2000, Chapter 1).  H.B. 2076 broadens the investment authority of the State Treasurer or bond trustee for school facilities revenue bonds and school improvement revenue bonds.

 

According to the State Treasurer’s office, there will be an anticipated 20 to 30 point increase in the yield and investments due to the expanded authority. The State Treasurer’s office also anticipates, based on a $415 million fund balance, an annual return of $660,000.

 

Provisions

 

1.      Requires, instead of allows, the State Treasurer or bond trustee to invest and divest monies from the following:

 

a)      The school facilities revenue bond proceeds fund or the school facilities revenue debt service fund.

b)      The school improvement revenue bond proceeds fund or the school improvement revenue debt service fund.

 

2.      Requires the State Treasurer, on notice from the SFB, to invest and divest monies from the relevant funds.

 

3.      Broadens the State Treasurer’s investment authority.

 

4.      Makes technical and conforming changes.

 

5.      Provides for a general effective date.

 

House Action

 

ED                   1/28/02            DP       9-0-0-1

APPROP         1/31/02            DP       11-0-0-5

3rd Read           2/12/02                        59-0-1-0

 

 

Prepared by Senate Staff

March 21, 2002