Bill Text: AZ HB2561 | 2016 | Fifty-second Legislature 2nd Regular | Chaptered
Bill Title: Sanitary district refunding bonds
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-05-17 - Chapter 264 [HB2561 Detail]
Download: Arizona-2016-HB2561-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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CHAPTER 264
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HOUSE BILL 2561 |
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AN ACT
Amending title 48, chapter 14, Arizona Revised Statutes, by adding article 3; relating to sanitary district financing.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 48, chapter 14, Arizona Revised Statutes, is amended by adding article 3, to read:
ARTICLE 3. REFUNDING BONDS
48-2091. Refunding bonds
A. The board of directors of a sanitary district may issue bonds for the purpose of refunding any bonds issued pursuant to article 2 of this chapter. Refunding bonds may be issued only if the total amount of principal of and interest on the refunding bonds does not exceed the total amount of remaining principal of and interest on the bonds to be refunded.
b. REfunding bonds shall be issued and sold and contain such details as the board of directors prescribes.
c. Interest on refunding bonds is payable on January 1 and July 1 each year.
D. The due dates of refunding bonds are January 1 and July 1 in the years they are due.
48-2091.01. Use of net proceeds of refunding bonds; authorized investments
A. Refunding bonds issued under this article may be:
1. Exchanged for bonds of at least the same principal amount of the bonds to be refunded.
2. Sold at, above or below par at a negotiated or public sale.
3. Exchanged in part and sold in part.
B. If the refunding bonds are sold, the net proceeds of the refunding bonds, together with all or part of the amounts held in the debt service fund for payment of principal of and interest on the bonds being refunded, amounts in any reserve fund for the bonds being refunded and other amounts lawfully available, may be invested if the investments and any reinvestment will mature with interest so as to provide monies to pay the bonds to be refunded when due, or when called for redemption, plus interest and redemption premiums, if any, at maturity or on an available redemption date or on an earlier voluntary surrender with the consent of the board of directors. On receipt, these amounts and investments shall be deposited in trust with a national banking corporation, or an association authorized to do trust business in this state, that is a member of the federal deposit insurance corporation, or any successor. After the deposit, the bonds being refunded are considered to have been paid and have no further interest in the assessments for the bonds being refunded. For the purposes of this subsection, "net proceeds" means the gross proceeds of the refunding bonds, after the deduction of:
1. All accrued interest.
2. Costs and expenses incurred:
(a) In connection with the authorization and issuance of the refunding bonds.
(b) In connection with the refunding of the bonds being refunded.
(c) Resulting from price variation to par.
(d) In the purchase of obligations for the trust.
(e) In the distribution of the refunding bonds.
C. The treasurer of the sanitary district may enter into trust agreements with banking corporations or associations for the handling, safekeeping and administration of the amounts and investments that are derived from, or contributed to, the refunding.
D. Monies that are invested pursuant to subsection B of this section shall be invested and reinvested at the board's discretion in:
1. Obligations issued by the United States government or one of its agencies.
2. Obligations fully guaranteed by the United States government as to principal and interest.
48-2091.02. Modified assessment; notice and hearing
A. If refunding bonds are issued, the board of directors shall file a modified assessment reflecting the reduction in the assessment.
B. If the modified assessment does not increase the assessment on any parcel or lot in the sanitary district, the board may approve the modified assessment without notice or hearing. If the modification results in an increase in the assessment to any parcel or lot in the district, notice and, if required, a hearing must be provided in the manner prescribed by section 48-2062.
48-2091.03. Security for and payment of bonds; special fund
A. Refunding bonds shall be secured by and are payable from the special assessments levied to pay the bonds being refunded. On the issuance of refunding bonds, the board of directors shall cause the remaining unpaid installments of the special assessments to be recalculated and modified so that the amounts to be collected equal the amounts necessary to repay the refunding bonds.
B. Section 48-2062 does not apply to the recalculation and modification of the assessments authorized by this subsection. All other provisions of article 2 of this chapter regarding the collection, payment and enforcement of the assessments of the bonds being refunded and the validity and priority of the lien of the assessments for the bonds being refunded continue in force and effect. Except as provided by this article, the assessments survive the payment or defeasance of the bonds being refunded and remain in force and effect, securing the refunding bonds until they are paid in full. The special assessments are the same first liens on the property that was assessed for the bonds being refunded, subject only to the lien for general property taxes and prior special assessments. The full faith and diligence of the district are irrevocably pledged for the assessment or reassessment, collection and payment of the special assessments.
C. Refunding bonds are payable only from a special fund to be established and collected from the special assessments. The fund is set apart solely to pay the principal of and interest on refunding bonds and for no other purpose. All monies collected from the special assessment shall be deposited in the special fund.
48-2091.04. Collection of assessments
The treasurer of the sanitary district and the county treasurer may provide by agreement for:
1. The county treasurer to collect the special assessments under this article at the same time and in the same manner as provided by law for the collection and enforcement of general ad valorem property taxes.
2. the payment of the county treasurer's collection expenses directly related to the special assessment and, if so provided, the levy of the special assessment may include an amount for compensation of the county treasurer directly related to the collection of the special assessment. The compensation received by the county treasurer pursuant to the agreement is governed by section 11-496.
48-2091.05. Determination of board of directors
The determination by the board of directors that the limitations and conditions prescribed by this article relating to issuing refunding bonds have been met is conclusive in the absence of fraud or arbitrary and gross abuse of discretion.
APPROVED BY THE GOVERNOR MAY 17, 2016.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 17, 2016.
