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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
appropriation; debt; repayment; defeasance
Purpose
Appropriates $361,600,000 from the state General Fund (state GF) in FY 2022 to the Arizona Department of Administration (ADOA) to pay for the retirement or defeasance of outlined financing agreements.
Background
Laws 2007, Chapter 257 allowed ADOA to enter into a financing agreement in FY 2008 to generate savings on the cost for prison water and wastewater projects, a new forensic unit and infrastructure improvements at the Arizona State Hospital. Laws 2007, Chapter 261 allowed ADOA, in coordination with the Arizona Department of Corrections, to enter into a financing agreement in FY 2008 to generate savings on the cost for the design and construction of state-owned prison beds.
Laws 2003, Chapter 267 appropriated monies in FY 2008 through 2031 to the three state universities for lease-purchase capital financing for research infrastructure projects.
S.B. 1091 appropriates $361,600,000 from the state GF in FY 2022 to ADOA.
Provisions
1. Appropriates $361,600,000 from the state GF in FY 2022 to ADOA to pay for the retirement or defeasance of the following financing agreements:
a) $91,100,000 to retire or defease the financing agreements entered into in FY 2008; and
b) $270,500,000 to retire or defease the financing agreements relating to university research infrastructure facilities.
2. Allows the Director of ADOA, for and on behalf the Arizona Board of Regents, to execute and deliver documents, engage fiduciaries and take or direct all actions necessary in connection with the retirement and defeasance of the lease-purchase capital financing agreements relating to the university research infrastructure facilities.
3. Requires the Director of ADOA to notify the Director of the Joint Legislative Budget Committee within 10 days of executing each retirement and defeasance and to include the date and final cost of each.
4. Exempts the appropriation from lapsing.
5. Reverts any amounts remaining after the retirements or defeasances are executed to the state GF.
6. Makes conforming changes.
7. Becomes effective on signature of the Governor.
Prepared by Senate Research
January 21, 2022
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