Bill Text: AZ SB1194 | 2010 | Forty-ninth Legislature 2nd Regular | Chaptered
Bill Title: Arizona power authority; bonding
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2010-04-26 - Governor Signed [SB1194 Detail]
Download: Arizona-2010-SB1194-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Forty-ninth Legislature Second Regular Session 2010
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SENATE BILL 1194 |
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AN ACT
AMENDING SECTION 30-222, Arizona Revised Statutes; REPEALING SECTIONS 30‑223, 30-224 AND 30-225, Arizona Revised Statutes; AMENDING SECTIONS 30-226, 30‑227 AND 48-101, Arizona Revised Statutes; AMENDING TITLE 48, CHAPTER 1, ARTICLE 1, Arizona Revised Statutes, BY ADDING SECTION 48-102; RELATING TO REVENUE BONDS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 30-222, Arizona Revised Statutes, is amended to read:
30-222. Prerequisites to issuance
A. No revenue bonds shall be issued until provision is made by power or transmission purchase contracts in accordance with the provisions of this chapter adequate in the judgment of the authority to insure all necessary fiscal reserves, operation costs, maintenance and depreciation charges and payment of principal and interest of any bonds relating to any proposed project or facility involved and within the time fixed. Revenue bonds shall not be issued except upon requisition by the authority and approval by the state certification board, and no agreement, proposal or arrangement relating to or concerning the handling, sale, control or disposition of authority bonds, or relating to employment, or payment of fees of bond brokers or dealers, attorneys, engineers or accountants relating to or concerning the bond issue shall be of any force or effect unless and until approved by the state certification board.
B. Requisitions for approval of a bond issue or issues shall state the amount of the proposed issue or issues, the proposed interest rate and types and terms of bonds, that all other methods of necessary financing by the authority have been found impractical, inadvisable or inadequate and that the issuance of the bonds is necessary and advisable as proposed.
C. Requisitions shall be signed by the authority chairman and secretary and in support of the requisition the authority shall file, in such form, manner and content as the state certification board may by rule or regulation prescribe, pertinent engineering, economic and financial data, appropriate maps, drawings, plans, outlines, calculations, summaries, related agreements and any other essential information constituting a record appropriate to the requisition.
Sec. 2. Repeal
Sections 30-223, 30-224 and 30-225, Arizona Revised Statutes, are repealed.
Sec. 3. Section 30-226, Arizona Revised Statutes, is amended to read:
30-226. Issuance of bonds; provisions of bonds
A. Bonds issued under this article shall be authorized by resolution of the authority and may be issued in one or more series, shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding nine per cent per annum, be in such denomination or denominations and in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, payable in such medium of payment, at such place or places, and subject to such terms of redemption, with or without premium, as such resolution, any trust indenture, or the bonds so issued may provide. Bonds may be sold at public or private sale at not less than par premium, discount or par with accrued interest. Notwithstanding any provision of law to the contrary, bonds issued pursuant to this article shall be negotiable. the proceeds of the bond issue shall be controlled and administered solely by the authority as provided in this chapter.
B. The bonds shall provide that:
1. The bond is purchased and taken after a complete disclosure of and with a full knowledge of all the surrounding relevant facts and circumstances and not upon the representation, faith or credit of the state of Arizona or any of its subdivisions.
2. The holder in order to obtain payment may not compel the state or any subdivision thereof to exercise its appropriation or taxing power.
3. The bond does not constitute a debt of the state and is payable only from revenues of the authority.
C. The gross or net revenue of any project or any part thereof may be pledged to secure payment of any series of bonds.
Sec. 4. Section 30-227, Arizona Revised Statutes, is amended to read:
30-227. Additional provisions of bonds; certification by attorney general; sale
A. The authority may provide for reimbursement to the holder of all expenses of litigation and attorney fees incurred in collection of the bonds in the event of default, and may provide for and fix the powers and duties of a trustee if necessary to enforce collection. Bond resolutions, agreements and bonds may be in such form and contain such other conditions and terms as the authority deems appropriate or necessary to make the bonds fully salable and marketable.
B. The authority may provide that any holder of bonds, or a trustee designated by the authority at the time of issuing the bonds, may upon proper showing secure by mandamus, or other proper proceedings, an order of court requiring the authority, subject to the provisions of contracts with purchasers of electrical energy or transmission service from the authority then in effect, to fix and collect rates and charges which will produce revenues and income permitting the setting up of adequate yearly reserves with which to meet future payments in accordance with the terms of the bond.
C. All bonds issued by the authority and agreements of the authority with respect thereto shall be subject to the provisions of this chapter, and no bond or agreement shall contain any provisions in conflict with this chapter. No amendment of this chapter shall ever diminish or impair the remedy and rights of the bondholder.
D. The bonds shall be signed by the chairman or vice‑chairman and the secretary of authority in office at the date of signing, and shall be valid obligations of the authority although before delivery or sale the persons whose signatures appear on the bonds have ceased to be members of the authority.
E. The validity of the bonds shall not be dependent on or affected by the legality of any proceeding relating to the acquisition, construction, improvement or extension of a project for which the bonds are issued. The bonds shall recite that they are regularly issued pursuant to this chapter and such recital shall be prima facie evidence of their legality and validity.
F. Before delivery or sale the authority may submit the bonds to the attorney general of the state, and he shall examine them and inquire into the legality of all proceedings bearing upon the validity of the bonds. If satisfied that they are legally issued, he shall certify in substance on the back of each bond that it is issued in accordance with the constitution and laws of this state.
G. Bonds so issued may be sold if and when the money is needed for the purposes for which they were issued. Pending the preparation or execution of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of bonds.
Sec. 5. Section 48-101, Arizona Revised Statutes, is amended to read:
48-101. State certification board
A. The state certification board shall consist of the attorney general, the director of water resources and the superintendent of financial institutions.
B. The board shall elect one of its members chairman, and appoint a secretary who shall keep the records and minutes of the board. One or more members of the board shall from time to time, as may be required, designate from his or their regularly employed personnel the secretary and such clerks and assistants as are necessary to perform the duties of the board but without extra compensation.
C. The governor shall be an ex officio member of the board without additional compensation. The office of the board shall be at phoenix, where records concerning all proceedings taken under this article shall be kept.
D. The board shall meet on a call of the chairman or on the written request of three of its members at a fixed time within official business hours, on not less than two days prior written notice, but notice may be waived in writing. Meetings may be recessed or adjourned from time to time without giving further notice and continuances may be granted for good cause. A majority shall constitute a quorum and matters pending before the board shall be decided by majority vote. The board shall be authorized to adopt and promulgate necessary rules of procedure and regulations for the conduct of its affairs and discharge of its duties under this article. No fees other than for necessary stenographic services, printing or publication, shall be charged or collected from the applicant by the board.
E. The scope and subjects of the board’s examination, consideration and determination shall be confined to the matters prescribed and embraced in the record filed by the applicant in support of its application and its proposed bond issue, proof offered in respect thereto, and the adequacy, weight and sufficiency thereof to justify the proposed bond issue.
Sec. 6. Title 48, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 48-102, to read:
48-102. Findings of state certification board
A. If the state certification board finds that the record offered in support of the application submitted sustains the application and that all requirements and conditions precedent have been fulfilled, it shall approve the bond application either in whole or in part, or shall otherwise disapprove the bond issue as a whole or as to the features or proposals that do not meet essential requirements. When the board has made and entered its findings, a decision shall be made accordingly. The rejection of any document or report or the contents of the document or report or the rejection of an entire application shall not preclude filing amended applications, documents, reports, statistics, plans, maps or other records or the subsequent consideration of any amended or altered bond proposal.
B. The decision of the state certification board based on findings of fact supported by a preponderance of the evidence and that are not arbitrary or unreasonable shall be final and conclusive.
C. The state certification board after approval of the application shall not exercise further control of the proceeds of any bond issue but they shall be controlled and administered solely by the applicant as provided in this chapter.
Sec. 7. 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.
