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REFERENCE TITLE: government lending programs; auditor general |
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State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022
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SB 1262 |
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Introduced by Senator Livingston
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AN ACT
amending title 35, chapter 1, article 2, arizona revised statutes, by adding section 35-126; relating to budget preparation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 1, article 2, Arizona Revised Statutes, is amended by adding section 35-126, to read:
35-126. Auditor general; lending programs and credit support programs; reports; definitions
A. On or before June 30 of each year, the auditor general shall issue a report that is specified by program on state lending programs and credit support programs and includes the following:
1. A list of all state lending programs and credit support programs in a single document, including a citation for their authority to operate.
2. The total amount of all state lending programs and the total amount of the debt supported by all credit support programs.
3. Reasonable estimates of the projected defaults of the state lending programs and credit support programs using private-sector accounting standards for credit losses.
B. Based on the auditor general's most recent estimates, the governor and legislature shall include the following information in their budget proposals:
1. Changes in returns or projected defaults of state lending programs and credit support programs in the previous fiscal year, including new expenses or new revenues.
2. Changes in expenses or revenues of state lending programs and credit support programs in the previous fiscal year, which shall be included as expenses or revenues for the purposes of calculating a balanced budget.
3. Projected expenses from defaults of any new state lending program or credit support program established during the fiscal year using private-sector accounting standards for the purposes of calculating a balanced budget.
C. For the purposes of this section:
1. "Credit support program" means any state program that guarantees or provides credit enhancements, such as state support for interest or principal payments, to the debt of private parties or political subdivisions of this state, under which this state would be required to provide monies if the borrower failed to pay.
2. "State Lending Program" means any state program that offers monies to private parties or political subdivisions of this state that comes with the expectation of repayment.
Sec. 2. Short title
Section 35-126, Arizona Revised Statutes, as added by this act, may be cited as the "Government Lending Transparency Act".
Sec. 3. Effective date
This act is effective from and after June 30, 2023.