House Engrossed

State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012

HOUSE BILL 2405

 

AN ACT

 

prescribing a temporary increase in bonded indebtedness for school districts.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Limitation on amount of school district bonded indebtedness through July 1, 2016

A.  Notwithstanding section 15‑1021, subsection B, Arizona Revised Statutes, from the effective date of this section until July 1, 2016, a school district may issue class B bonds for the purposes specified in section 15‑1021, Arizona Revised Statutes, and title 15, chapter 4, article 5, Arizona Revised Statutes, to an amount in the aggregate, including the existing class B indebtedness, not exceeding ten per cent of the taxable property used for secondary property tax purposes, as determined pursuant to title 42, chapter 15, article 1, Arizona Revised Statutes, within a school district as ascertained by the last assessment of state and county taxes previous to issuing the bonds, or one thousand five hundred dollars per student count pursuant to section 15‑901, subsection A, paragraph 13, Arizona Revised Statutes, whichever amount is greater.  A school district shall not issue class B bonds pursuant to this subsection until the proceeds of any class A bonds issued by the school district have been obligated in contract. The total amount of class A and class B bonds issued by a school district shall not exceed the debt limitations prescribed in article IX, section 8, Constitution of Arizona.

B.  Notwithstanding section 15‑1021, subsection D, Arizona Revised Statutes, from the effective date of this section until July 1, 2016, a unified school district, as defined under article IX, section 8.1, Constitution of Arizona, may issue class B bonds for the purposes specified in section 15‑1021, Arizona Revised Statutes, and title 15, chapter 4, article 5, Arizona Revised Statutes, to an amount in the aggregate, including the existing class B indebtedness, not exceeding twenty per cent of the taxable property used for secondary tax purposes, as determined pursuant to title 42, chapter 15, article 1, Arizona Revised Statutes, within a school district as ascertained by the last assessment of state and county taxes previous to issuing the bonds, or one thousand five hundred dollars per student count pursuant to section 15‑901, subsection A, paragraph 13, Arizona Revised Statutes, whichever amount is greater.  A unified school district shall not issue class B bonds until the proceeds of any class A bonds issued by the unified school district have been obligated in contract.  The total amount of class A and class B bonds issued by a unified school district shall not exceed the debt limitations prescribed in article IX, section 8.1, Constitution of Arizona.

C.  The amount of taxable property used for secondary property tax purposes that is to be used in calculating the limitation on bonded indebtedness is the greater of the following:

1.  The amount adopted by the county board of supervisors in August 2010.

2.  The amount most recently adopted by the county board of supervisors. 

D.  Any class B bonds issued pursuant to this act shall be considered special class B bonds.  Special class B bonds shall be treated like class A bonds for purposes of computing class B bond capacity when the increase prescribed in this act is no longer in effect.