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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 into in 2010.
Background
In 2010, the Legislature required the ADOA to enter into a lease purchase agreement (agreement) for any state-owned facility (Laws 2010, Sixth Special Session, Chapter 4). The agreement is 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 into with a bank trustee selected by the Director of the ADOA and provide for the issuance of a certificate of participation. The agreement requires the state to retain the maintenance and operation 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 FY 2020 Baseline).
H.B. 2572 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 into in 2010.
2. Becomes effective on the general effective date.
House Action
APPROP 2/13/19 DP 7-3-0-1
3rd Read 2/25/19 46-14-0
Prepared by Senate Research
March 15, 2019
LMM/kja