ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: APPROP DP 8-2-0-1-0-0

HB 2666: appropriation; financing agreement; retirement; defeasance

Sponsor:  Representative Cobb, LD 5

Caucus & COW

Overview

Appropriates $81,000,000 from the General Fund in FY 2021 to the Arizona Department of Administration (ADOA) for the retirement or defeasance of the 2016 re-financing agreement of a facility housing Arizona Department of Correction (ADC) inmates.

History

The FY 2017 criminal justice budget reconciliation bill authorized the ADOA to enter into an agreement to refinance the ADC Kingman private prison (Laws 2016, chapter 119, section 24). Prior to 2016, the cost of the facility was included as part of the service payment to the private prison provider. In 2016, pursuant to the new law, the State restructured the financing of the private prison as debt against the State. This refinancing agreement, referred to as Series 2016, resulted in a net savings of approximately $8,800,000 to the State per year. The total FY 2018 payment on the debt was $17,463,300 from the GF (FY 2018 Annual Report on State Debt and Obligations).

 

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAppropriates $81,000,000 from the GF in FY 2021 to the ADOA for the retirement or defeasance of the financing agreement entered into pursuant to the FY 2017 criminal justice reconciliation bill.

 

 

 

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Initials TG             Appropriations

 

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