Bill Text: AZ HB2011 | 2017 | Fifty-third Legislature 1st Regular | Chaptered
Bill Title: Bonds; levy; net of cash
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-04-28 - Chapter 212 [HB2011 Detail]
Download: Arizona-2017-HB2011-Chaptered.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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CHAPTER 212
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HOUSE BILL 2011 |
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AN ACT
amending section 35-458, Arizona Revised Statutes; relating to public indebtedness.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 35-458, Arizona Revised Statutes, is amended to read:
35-458. Levy of tax for payment of bonds; security
A. After the bonds are issued, the governing body or board shall enter on its minutes a record of the bonds sold and their numbers and dates, and shall annually levy and cause to be collected a tax, at the same time and in the same manner as other taxes are levied and collected on all taxable property in such political subdivision, sufficient to pay the annual interest on the bonds when due, and shall likewise annually levy a tax sufficient to redeem the bonds when they mature. The annual levy shall not exceed the net amount necessary to meet annual payments of principal and interest, projected payments of principal and interest on new debt planned for the ensuing year, a reasonable delinquency factor, including an amount necessary to correct prior year errors or shortages in the levy, if applicable, and any expenses and fees required in conjunction with the authorization pursuant to section 35‑512. The levy shall be the net of all cash in excess of ten percent of the annual payments of principal and interest in the current fiscal year from the previous year remaining in the fund or funds prescribed by subsection B of this section.
B. Monies derived from the levy of the tax when collected shall constitute a fund for payment of interest and the bonds. The fund shall be kept separately and shall be known as the "interest fund" and "redemption fund", or the two funds may be combined into a single "interest and redemption fund. ".
C. All bonds, whenever issued, are secured by a lien on all revenues received pursuant to the tax levy. The lien arises automatically without the need for any action or authorization by the political subdivision or the political subdivision's governing body or board. The lien is valid and binding from the time of the issuance of the bonds. The revenues received pursuant to the levy of the tax are immediately subject to the lien. The lien attaches immediately to the revenues and is effective, binding and enforceable against the political subdivision, the political subdivision's successors, transferees and creditors and all other parties asserting rights in the revenues, irrespective of whether the parties have notice of the lien, without the need for any physical delivery, recordation, filing or further act.
Sec. 2. Tax levy; cash reserves; exception
Notwithstanding section 35-458, Arizona Revised Statutes, as amended by this act, the governing body or board of a political subdivision that has cash reserves in excess of ten percent in its interest and redemption fund in fiscal year 2017‑2018 may reduce the excess reserves in equal amounts in fiscal years 2017‑2018 and 2018‑2019, except that a city with a population of 500,000 or more persons may reduce the excess reserves in fiscal years 2017-2018 through 2022-2023.
APPROVED BY THE GOVERNOR APRIL 28, 2017.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 28, 2017.
