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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
state lease-purchase agreements; payoff
Purpose
Appropriates $190,000,000 from the state General Fund (GF) in FY 2020 to the Arizona Department of Administration (ADOA) to retire the June sale leaseback issuance entered in 2010.
Background
Laws 2010, Sixth Special Session, Chapter 4 required the ADOA to enter into a lease purchase agreement (agreement) for any state-owned facilities. The agreement was required to net available proceeds of no more than $300,000,000 to be deposited into the state GF. The agreement must be fixed for 20 years, be entered with a bank trustee selected by the Director of the ADOA and provide for the issuance of certificate of participation. The agreement required the state to retain the maintenance and operations of any facility that is sold. The ADOA sold the issuances in two series, one in January and one in June in 2010. The issuances range up to 20 years; however, the state is prohibited from prepayment until FY 2020 (JLBC 2020 Baseline).
Laws 2018, Chapter 276 appropriated $24,009,800 from the state GF in FY 2019 to the ADOA to make a debt service payment on the June 2010 sale leaseback issuance.
S.B. 1215 appropriates $190,000,000 from the state GF in FY 2020.
Provisions
1. Appropriates $190,000,000 from the state GF in FY 2020 to the ADOA to retire the June sale leaseback issuance entered in 2010.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 1, 2019
LMM/kja