Assigned to TRANS                                                                                                                                      AS ENACTED

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR H.B. 2588/ S.B. 1244

 

transportation; parity bonds; limits.

 

Purpose

 

Increases, by $300 million, the cap on the principal amount of parity bonds that the State Transportation Board (Board) may have outstanding at any one time.

 

Background

 

State law authorizes the State Transportation Board to issue highway user revenue bonds to accelerate the construction of highway construction projects throughout Arizona. The maximum bonding capacity of the Board is statutorily set at $1 billion.  The pledged revenues for the bond issues are the highway user revenue fund monies deposited in the state highway fund. The bonds are an obligation of the State Transportation Board and are not considered general obligations of the State of Arizona.

 

According to the Arizona Department of Transportation, the Department has issued $776 million in parity bonds.  The annual debt service is $85 million through FY 2010-2011, $40 million through FY 2013-2014 and $26 million through FY 2018-2019.

 

Provisions

 

1.      Increases, from $1 billion to $1.3 billion, the cap on the principal amount of parity bonds that the State Transportation Board may have outstanding at any one time.

 

2.      Provides for a general effective date.

 

House Action                                                               Senate Action

 

TRANS           2/11/02            DP       9-1-0-0-0        3rd Read           3/21/01            24-5-1-0

3rd Read           3/18/02                        9-9-5-6-0        (H.B. 2588 was substituted for S.B. 1244

on 3rd read.)

 

Signed by Governor 3/27/02

Chapter 4

 

Prepared by Senate Staff

April 19, 2002