ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: FIN DP 8-0-2-0 | 3^rd Read 29-0-1-0 House: WM DP 9-0-0-1

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SB 1123: community colleges; lease-purchase agreements; indebtedness

Sponsor:  Senator Mesnard, LD 17

Caucus & Cow

Overview

Outlines based on county population, the maximum amount of allowable outstanding indebtedness for community college districts based on county population. Extends the maximum obligation period for lease or lease-purchase agreements entered into by a community college district board (board).

History

A board may enter into lease or lease-purchase agreements for real property, including buildings and improvements to the property. Under current law, a lease or lease-purchase agreement may not create an obligation of payment by the district for periods longer than 15 years (A.R.S. § 15-1446).

Current law provides that the amount of outstanding indebtedness due to acquiring real property by lease-purchase for each community college district may not exceed $2,500,000 (A.R.S. § 15-1446(D)).

Provisions

1. Specifies that the amount of outstanding indebtedness due to acquiring real property by lease-purchase for each district may not exceed:

a) $2,500,000 in one year and $15,000,000 in the aggregate for a district located in a county with a population of less than 750,000 persons; or

b) $25,000,000 in one year and $50,000,000 in the aggregate for a district located in a county with a population of 750,000 persons or more. (Sec. 1)

2. Increases from 15 to 20 years the obligation period for lease or lease-purchase agreements entered into by a community college district board. (Sec. 1)

3. Makes technical and conforming changes. (Sec. 1)

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7.                   SB 1123

8. Initials VP/EB        Page 0 Caucus & COW

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