Bill Text: AZ HB2333 | 2012 | Fiftieth Legislature 2nd Regular | Introduced
Bill Title: Community colleges; bonds; lease purchase
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Passed) 2012-04-12 - Governor Signed [HB2333 Detail]
Download: Arizona-2012-HB2333-Introduced.html
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REFERENCE TITLE: community colleges; bonds; lease‑purchase |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2333 |
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Introduced by Representatives Jones, Gowan, Pancrazi, Stevens: Barton, Chabin, Crandell, Goodale, Judd, McLain, Saldate, Urie
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AN ACT
amending sections 15‑1446 and 15‑1484, Arizona Revised Statutes; relating to community colleges.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-1446, Arizona Revised Statutes, is amended to read:
15-1446. Lease‑purchase agreements
A. A district board may enter into lease or lease‑purchase agreements for real property, including buildings and improvements to the property.
B. Lease or lease‑purchase agreements authorized by subsection A of this section or section 15‑1444, subsection A, paragraph 11 shall not create an obligation of payment by the district under the terms of the lease or lease‑purchase agreement for periods longer than fifteen years.
C. Notwithstanding subsection B of this section, a district board may enter into lease agreements for real property, including buildings and improvements to the property, that obligate the district for more than fifteen years if such agreements are with an Indian tribe, involve land owned or controlled by the federal government or by a joint powers airport authority organized under title 28, chapter 25, article 8 or involve real property that is owned by a nongovernmental nonprofit corporation and that is offered for lease in an amount not to exceed one thousand dollars per year to a community college district for purposes of expanding health care education programs.
D. The amount of outstanding indebtedness due to acquisition of real property by lease‑purchase for each district shall not exceed two million five hundred thousand dollars in any one year and fifteen million dollars in the aggregate. A district board may pledge tuitions, fees, rentals and other charges to any payments due under lease‑purchase agreements.
E. Notwithstanding subsection D of this section, periodic payments and any option payments for acquisition of real property by lease‑purchase are restricted to payment from capital outlay funds.
F. E. Districts that acquire real property by lease‑purchase are not entitled to receive monies pursuant to section 15‑1463 pertaining to the specific real property acquired by lease‑purchase.
G. F. Notwithstanding any other law, payments on lease or lease‑purchase agreements entered into pursuant to subsection A of this section or section 15‑1444, subsection A, paragraph 11 are obligations of the district within the meaning of the constitutional limit against indebtedness set out in article IX, section 8, Constitution of Arizona.
Sec. 2. Section 15-1484, Arizona Revised Statutes, is amended to read:
15-1484. Powers to secure bonds
A. In connection with the issuance of the bonds authorized by section 15‑1483, or in order to secure the payment of such bonds and interest thereon, the board shall have power by resolution to:
1. Fix and maintain tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
2. Provide that bonds issued under this article may be secured by a first, exclusive and closed lien on all or any certain part of the income and revenue derived from, and shall be payable from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
3. Pledge and assign to, or in trust for the benefit of, the holder or holders of the bonds issued hereunder an amount of the income and revenue derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
4. Covenant with or for the benefit of the holder or holders of bonds issued under this article to acquire any project, that as long as any such bonds remain outstanding and unpaid the board will fix, maintain and collect in such installments as may be agreed upon an amount of the tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project, which shall be sufficient to pay when due the bonds issued hereunder to acquire such project, and interest thereon, and to create and maintain reasonable reserves therefor and to pay the costs of operation and maintenance of such project including, but not limited to, reserves for extraordinary repairs, insurance and maintenance, which costs of operation and maintenance shall be determined by the board in its absolute discretion.
5. Make and enforce and agree to make and enforce parietal rules that shall insure the use of any project by all students in attendance at the institution to the maximum extent to which such project is capable of serving such students, or if any part of the project is designed for occupancy as living quarters for the faculty members, by as many faculty members as may be served thereby.
6. Covenant that as long as any of the bonds issued under this article remain outstanding and unpaid it will not, except upon such terms and conditions as may be determined:
(a) Voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien of the bonds issued under this article upon any of the income and revenues derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.
(b) Convey or otherwise alienate the project to acquire which such bonds shall have been issued or the real estate upon which such project shall be located, except at a price sufficient to pay all the bonds then outstanding issued under this article to acquire such project and interest accrued thereon, and then only in accordance with any agreements with the holder or holders of such bonds.
(c) Mortgage or otherwise voluntarily create or cause to be created any encumbrance on the project to acquire which such bonds shall have been issued or the real estate upon which it shall be located.
7. Covenant as to the procedure by which the terms of any contract with a holder or holders of such bonds may be amended or abrogated, the amount or percentage of bonds the holder or holders of which must consent to an amendment or abrogation and the manner in which such consent may be given.
8. Vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds; and execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute events of default and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.
9. Vest in a trustee or trustees or the holder or holders of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver or receivers of the income and revenue pledged and assigned to or for the benefit of the holder or holders of such bonds, which receiver or receivers may have and be granted such powers and duties as such court may order or decree for the protection of the bondholders.
10. Make covenants with any federal agency, private agency, corporation or individual to perform any and all acts and to do any and all such things as may be necessary or convenient or desirable in order to secure such bonds or as may in the judgment of the board tend to make the bonds more marketable, notwithstanding that such acts or things may not be enumerated herein, and to lease any project for the best interests of the institution, and to perform all acts and to do all things not inconsistent with the constitution of this state as may be necessary or convenient or desirable for the issuance of such bonds and for their security.
11. Enter into any and all contracts and agreements necessary to accomplish the acquisition of the project or projects including agreements for construction, engineering and architectural services and agreements covering disposition and application of the proceeds received from the sale of the bonds.
B. No bond shall be issued for any institution which causes the total aggregate face amount of all bonds issued for classrooms to exceed the greater of twenty‑five per cent of all bonds then issued for such institution or one million dollars. For purposes of this subsection, classroom does not include any building which would have been included within the definition of project prior to September 30, 1988.
