Bill Text: AZ SB1091 | 2022 | Fifty-fifth Legislature 2nd Regular | Engrossed

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Bill Title: Appropriation; debt; repayment; defeasance

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2022-03-28 - House APPROP Committee action: Do Pass, voting: (8-5-0-0-0-0) [SB1091 Detail]

Download: Arizona-2022-SB1091-Engrossed.html

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Senate Engrossed

 

appropriation; debt; repayment; defeasance

 

 

 

 

State of Arizona

Senate

Fifty-fifth Legislature

Second Regular Session

2022

 

 

 

SENATE BILL 1091

 

 

 

AN ACT

 

amending Section 15-1670, Arizona Revised Statutes; appropriating monies; relating to public debt.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 15-1670, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1670. Appropriations for university research infrastructure facilities; university transfers; annual report; definitions

A. In fiscal years 2017-2018 through 2030-2031 2021-2022, the following sums are appropriated from the state general fund to Arizona state university for lease-purchase capital financing for research infrastructure projects:

1. In fiscal year 2017-2018, $13,481,000.

2. In fiscal year 2018-2019, $13,478,700.

3. In fiscal year 2019-2020, $13,456,300.

4. In fiscal year 2020-2021, $13,458,700.

5. In fiscal year 2021-2022, $13,451,900.

6. In fiscal year 2022-2023, $13,462,100.

7. In fiscal year 2023-2024, $13,468,200.

8. In fiscal year 2024-2025, $13,459,300.

9. In fiscal year 2025-2026, $13,453,900.

10. In fiscal year 2026-2027, $13,450,100.

11. In fiscal year 2027-2028, $13,436,200.

12. In fiscal year 2028-2029, $13,430,800.

13. In fiscal year 2029-2030, $13,423,500.

14. In fiscal year 2030-2031, $13,428,800.

B. In fiscal years 2017-2018 through 2030-2031 2021-2022, the following sums are appropriated from the state general fund to the university of Arizona for lease-purchase capital financing for research infrastructure projects:

1. In fiscal year 2017-2018, $14,249,300.

2. In fiscal year 2018-2019, $14,251,000.

3. In fiscal year 2019-2020, $14,250,200.

4. In fiscal year 2020-2021, $14,251,500.

5. In fiscal year 2021-2022, $14,248,900.

6. In fiscal year 2022-2023, $14,252,500.

7. In fiscal year 2023-2024, $14,255,300.

8. In fiscal year 2024-2025, $14,247,300.

9. In fiscal year 2025-2026, $14,248,400.

10. In fiscal year 2026-2027, $14,251,300.

11. In fiscal year 2027-2028, $14,254,100.

12. In fiscal year 2028-2029, $14,251,500.

13. In fiscal year 2029-2030, $14,252,500.

14. In fiscal year 2030-2031, $14,255,800.

C. In fiscal years 2017-2018 through 2030-2031 2021-2022, the following sums are appropriated from the state general fund to northern Arizona university for lease-purchase capital financing for research infrastructure projects:

1. In fiscal year 2017-2018, $5,896,500.

2. In fiscal year 2018-2019, $5,896,200.

3. In fiscal year 2019-2020, $5,899,500.

4. In fiscal year 2020-2021, $4,879,500.

5. In fiscal year 2021-2022, $5,039,800.

6. In fiscal year 2022-2023, $5,301,500.

7. In fiscal year 2023-2024, $5,302,900.

8. In fiscal year 2024-2025, $4,885,500.

9. In fiscal year 2025-2026, $4,884,500.

10. In fiscal year 2026-2027, $4,884,300.

11. In fiscal year 2027-2028, $4,894,000.

12. In fiscal year 2028-2029, $4,888,400.

13. In fiscal year 2029-2030, $4,892,000.

14. In fiscal year 2030-2031, $4,889,300.

D. Lease-purchase financing agreements under subsections A, B and C of this section:

1. Must be entered into before July 1, 2006.

2. Are subject to the requirements of section 15-1682.01.

E. The appropriations under subsections A, B and C of this section constitute continuing year-to-year appropriations but do not constitute an obligation of the legislature or this state to continue the appropriation in any fiscal year.  The annual appropriation is a current expense of this state in the fiscal year in which it occurs and is not a general obligation indebtedness of this state or of any university. If the appropriation is discontinued in any fiscal year, this state and the university are relieved of any subsequent obligation pursuant to this section.

F. Beginning in fiscal year 2018-2019 and in each subsequent fiscal year for which an appropriation is made pursuant to subsections A, B and C of this section, for each individual licensure agreement, royalty agreement or agreement for the sale or transfer of intellectual property developed by a university that is entered into by the university or a component unit of the university and for which the net income for the individual agreement reaches $1,000,000 over its cumulative lifetime, each university shall transfer to the state treasurer not later than October 1 following the close of the fiscal year an amount equal to twenty percent of the cumulative net income exceeding the $1,000,000 threshold minus amounts deposited in previous years. The state treasurer shall deposit the monies received from the universities pursuant to this subsection in the financial aid trust fund established pursuant to section 15-1642.

G. When calculating the cumulative net income pursuant to subsection F of this section, the university may not reduce its required deposits from any agreements due to net income or expenses associated with other projects.

H. The amount transferred to the state treasurer in each fiscal year by each university pursuant to subsection F of this section shall not exceed the amount appropriated in that fiscal year under subsection A, B or C of this section and section 15-1671, subsections B and C, respectively.

I. On or before October 1 of each year, each university shall report to the joint legislative budget committee the total amount of income and the total amount of net income the university received in the preceding fiscal year from each category of income that is subject to deposit pursuant to subsection F of this section.

J. For the purposes of this section:

1. "Component unit of the university":

(a) Means an entity that is legally separate from, but related to, the university and whose primary purpose is to support the university.

(b) Includes a university foundation and an entity that contracts with the university to manage technology transfer activities.

2. "Net income" means payments received from individual licensure and royalty agreements and the sale or transfer of intellectual property developed by the university, net of expenses related to individual agreements. For the purposes of this paragraph, "expenses related to individual agreements" includes any of the following:

(a) Revenue shares paid to inventors and inventors' laboratories in support of their research activities.

(b) Expenses related to pursuing, maintaining or protecting intellectual property.

(c) Expenses related to commercializing, licensing or litigating intellectual property.

(d) Contractually required distributions to third parties.

(e) Reimbursement holds related to future contractual reimbursements.

(f) Operational management fees.

3. "Research infrastructure" means installations and facilities for continuance and growth of scientific and technological research activities at the university. END_STATUTE

Sec. 2. Supplemental appropriation; department of administration; financing agreements; notification; exemption

A. In addition to any other appropriations made in fiscal year 2021-2022, the sum of $93,500,000 is appropriated from the state general fund in fiscal year 2021-2022 to the department of administration to pay for the retirement or defeasance of the financing agreements entered into pursuant to Laws 2007, chapter 257, section 8 and Laws 2007, chapter 261, section 9.

B. The director of the department of administration shall notify the director of the joint legislative budget committee not more than ten days after each retirement or defeasance is executed as required in subsection A of this section.  Each notification shall include the date and final cost of each retirement or defeasance.

C. The monies appropriated in subsection A of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations. Any amounts remaining after the retirements or defeasances are executed as required by subsection A of this section revert to the state general fund.

Sec. 3. Supplemental appropriation; Arizona board of regents; financing agreements; notification;  exemption

A. In addition to any other appropriations made in fiscal year 2021-2022, the sum of $273,500,000 is appropriated from the state general fund in fiscal year 2021-2022 to the Arizona board of regents for and on behalf of each state university to pay for the retirement or defeasance of the lease-purchase capital financing agreements entered into pursuant to section 15-1670, Arizona Revised Statutes, as amended by this act.

B. The executive director of the Arizona board of regents shall notify the director of the joint legislative budget committee not more than ten days after each retirement or defeasance is executed as required in subsection A of this section.  Each notification shall include the date and final cost of each retirement or defeasance.

C. The monies appropriated in subsection A of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations.  Any amounts remaining after the retirements or defeasances are executed as required by subsection A of this section revert to the state general fund.