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REFERENCE TITLE: bank created monies; transportation infrastructure |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2175 |
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Introduced by Representative Seel
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AN ACT
amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to bank created money for transportation funding.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 6, Arizona Revised Statutes, is amended by adding chapter 18 effective from and after December 31, 2011, to read:
CHAPTER 18
BANK CREATED MONEY FOR TRANSPORTATION FUNDING
ARTICLE 1. GENERAL PROVISIONS
6-1801. Use of bank created monies for transportation funding
Notwithstanding any other law, in lieu of taxation or bonding, the funding of all state, county, city, including charter city, and town highways, streets, roads, bridges, transit systems and other transportation infrastructure projects must be achieved through the use of banks to create monies as provided in this chapter.
6-1802. Project monies; procedure
Any governmental agency sponsoring a project described in section 6‑1801 shall submit documentation of the project to the state treasurer. The documentation must contain the accepted, verified and authorized project bid. The state treasurer shall assign the project a unique project number and shall arrange funding of the authorized bid value with the wealth based monies authorized by this chapter.
6-1803. Origination and movement of project monies
A. The state treasurer shall notify all banks of the project number assigned and the total bid value authorized pursuant to section 6‑1802. The bid value must be divided among all banks in proportion to their capital and surplus as of the due date of their financial reports submitted to the superintendent pursuant to section 6‑186 for the most recent reporting period that ended at least ninety days before the date of notification to the banks regarding that project. Using the accepted ability of banks to create monies, each bank shall create monies equal to its share of the bid value of each project.
B. Each bank shall electronically transfer the monies to the state treasurer.
C. The state treasurer shall electronically transfer the monies as payment under the terms of the project contract into a checking account maintained by the contractor in a bank. The state treasurer shall make the payments only at the direction of the governmental agency for which the project is performed.
6-1804. Direction to bank examiners
The banks are free of any reserve requirement affected by the creation of monies required under this chapter. The monies are deemed to be an asset to the bank, this state and the people of this state and are not a liability to anyone.
6-1805. Audits; public transparency
The auditor general and the director of the joint legislative budget committee shall ensure an ongoing and accurate accounting for and of the total amount of monies created to fund transportation infrastructure projects under this chapter. The auditor general shall update this accounting on the first business day of the third week of each month and make it available online to all residents of this state.
6-1806. Noncompliance or fraud; violation; classification
Any noncompliance or fraud relating to this chapter by any officer or employee of a bank, any official or employee of this state, a county, a city, including a charter city, or a town or any officer or employee of a contractor or subcontractor is a class __ felony, except that any person found guilty of noncompliance or fraud relating to this chapter is subject to a fine of up to one hundred million dollars or imprisonment of up to forty years, or both.
6-1807. Cooperation required
The director of the department of commerce, the director of the department of transportation and the state treasurer shall work together with the banks to monetize this state's transportation infrastructure system with wealth based debt free monies through the procedure provided in this chapter. END_STATUTE
Sec. 2. Pilot project; light rail project
Notwithstanding any other law, within ninety days after the effective date of this act, the state treasurer and the director of the department of transportation shall implement, administer and complete a pilot project to test and ensure the successful implementation of all procedures required by title 6, chapter 18, Arizona Revised Statutes, as added by this act. The first project after the pilot project must be a light rail transit system project.
Sec. 3. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.