Bill Text: AZ HB2264 | 2014 | Fifty-first Legislature 2nd Regular | Introduced
Bill Title: Arizona jobs bonds; finance
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2014-03-25 - Referred to Senate RULES Committee [HB2264 Detail]
Download: Arizona-2014-HB2264-Introduced.html
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REFERENCE TITLE: Arizona job finance bonds |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HB 2264 |
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Introduced by Representative Forese
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AN ACT
Amending title 35, Chapter 5, Arizona Revised Statutes, by adding article 7; relating to industrial development authorities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 5, Arizona Revised Statutes, is amended by adding article 7, to read:
ARTICLE 7. ARIZONA JOB FINANCE BONDS
35-781. Definitions
In this article, unless the context otherwise requires:
1. "Bonds" means bonds, loans, debentures, notes, certificates of participation or any other evidences of indebtedness issued to finance a project or to refund outstanding obligations.
2. "Employee" means an individual who receives wages or other remuneration as a result of providing services or labor.
3. "Full-time private sector employment":
(a) Means employment in a position that requires a minimum of thirty‑five working hours per week in this state.
(b) Includes a job-sharing arrangement in which two or more employees share a position that requires a minimum of thirty‑five working hours per week in this state.
(c) Does not include employment by a political subdivision of this state.
4. "Project" means a commercial enterprise or a veteran-owned small business located within or without this state that creates full-time private sector employment in this state for at least one employee.
5. "Project costs" means all costs that are directly or indirectly related to a project, including:
(a) Capital costs, including the costs of the construction of improvements, facilities, buildings, structures and permanent fixtures, the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and permanent fixtures, the acquisition of equipment and the clearing and grading of land.
(b) Financing costs, including interest during construction, capitalized debt service, repair and replacement reserve funds or other appropriate reserves.
(c) Real property costs.
(d) Professional service costs, including those costs incurred for architectural, planning, engineering and legal advice and services.
(e) Administrative costs.
(f) Working capital costs.
(g) Costs incidental to any of the costs specified in subdivisions (a) through (f) of this paragraph.
6. "Veteran‑owned small business" means a business that is certified as a veteran‑owned small business by the United States department of veteran affairs.
35-782. Bonds
A. In addition to the powers provided in section 35‑706, a corporation may issue revenue bonds from time to time, in its discretion, to finance any project costs or to refund any outstanding bonds.
B. Bonds issued pursuant to this article are deemed to be issued for an essential public and governmental purpose.
C. Bonds issued pursuant to this article must be authorized by resolution of the corporation and may be payable on demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in registered form, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium or payment, at such place or places, from such source of repayment or security, and be subject to such terms of redemption and such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto. The governing board of a corporation may require approval by the board of the proceedings under which bonds are issued under this article. For projects located outside the state, the corporation must determine by resolution that, in addition to creating full-time private sector employment in this state, the financing will benefit this state by either or both of the following:
1. Discouraging the loss of commerce, industry or employment.
2. Increasing employment.
D. Bonds may be sold by public or private sale at a price determined by the corporation in its sole discretion.
E. If a public official of the corporation whose signature appears on any bonds or coupons issued pursuant to this article ceases to be an official of the corporation before the delivery of the bonds or coupons, the signature is valid and sufficient for all purposes in the same manner as if the official had remained in office until delivery of the bond or coupon. Notwithstanding any other law, bonds issued pursuant to this article are fully negotiable.
F. In any suit, action or proceeding involving the validity or enforceability of any bond issued under this article or for the security of the bond, if the bond indicates that it has been issued in connection with a project, the bond is conclusively deemed to have been issued for that purpose and the project is conclusively deemed to have been planned, located, financed and carried out in accordance with this article.
G. A person, including a bank, trust company, banker, savings bank and institution, building and loan association, savings and loan association, investment company or other person carrying on a banking or investment business, an insurance company, insurance association or other person carrying on an insurance business, an executor, administrator, curator, trustee or other fiduciary or a political subdivision, may invest any sinking funds, monies or other funds belonging to them or within their control in any bonds or other obligations issued by a corporation pursuant to this article. This section does not relieve any person of any duty of exercising reasonable care in selecting securities.
H. In order to comply with section 147(f) of the United States internal revenue code of 1986, as amended, the authority of the corporation is derived from the state and the state is the government unit on behalf of which any approved bonds under this article are issued. The governor shall designate the state treasurer as an applicable elected official and statewide hearing officer for purposes of complying with any federal laws requiring a public hearing or approval by an applicable elected official before the issuance of bonds. The treasurer shall conduct a public hearing within thirty days after a written request by a corporation. The treasurer may charge a fee to cover the costs of the public hearing required by federal law, and the corporation shall pay the fee on or before the date set for the public hearing.
35-783. Public monies; prohibitions; statement
A. Neither the corporation nor a political subdivision of this state is liable on any bonds or other obligations issued pursuant to this article. The bonds or other obligations do not give rise to a general obligation or liability of the corporation, this state or a political subdivision of this state, or give rise to a charge against the general credit or taxing powers of the corporation, state or political subdivision and are not payable out of any funds or properties other than the specific project revenues pledged.
B. The bonds and other obligations must contain a statement on their face consistent with subsection A of this section.
C. The bonds and other obligations do not constitute an indebtedness or the pledging of faith and credit within the meaning of any constitutional or statutory debt limitation or restriction.
35-784. Limitations on review
A. A direct or collateral action attacking or otherwise questioning the validity of a project, the approval of any revenue bonds issued under this article or any of the findings or determinations of the corporation may not be brought until after the effective date of the resolution authorizing such bonds.
B. For a period of thirty days after the effective date of the resolution, any person in interest may contest the legality of the resolution or proceeding or any bonds that may be authorized by the resolution or proceeding. An action or proceeding to question the validity or legality of any resolution or proceeding, or of any bonds authorized by the resolution or proceeding, may not be brought in any court by any person for any cause more than thirty days after the effective date of the resolution or proceeding. thirty days after the effective date of the resolution or proceeding, the validity, legality and regularity of the resolution or proceeding and any bonds authorized by the resolution or proceeding are conclusively presumed, and a court may not inquire into the validity, legality and regularity of the resolution or proceeding or any bonds authorized by the resolution or proceeding after that date.
35-785. Job creation
In order to demonstrate that a project will create full-time private sector employment in this state, an applicant for financing under this article must provide to the corporation one of the following:
1. Documentation consisting of photocopies of relevant tax records for the employee, if that employee has already been hired.
2. A copy of a comprehensive business plan showing that, due to the nature and projected size of the project, the need for employees will result, including the approximate dates within the next two years when the employees will be hired.
3. Documentation that the project qualifies or has been approved for any of the following:
(a) Employment‑related incentives under the healthy forest enterprise incentives program pursuant to section 41-1516.
(b) Arizona job training program grants pursuant to section 41-1541.
(c) Grants related to new job creation from the Arizona competes fund pursuant to section 41-1545.02.
(d) Credit for new employment pursuant to section 43-1161.
(e) Credit for increased employment in military reuse zones pursuant to section 43-1167.
35-786. Powers supplemental; construction
This article is intended as an independent and comprehensive conferral of powers to accomplish the purposes set forth in this article. The powers conferred by this article are supplemental and alternative to other powers conferred by law and are deemed full authority for the issuance of bonds, for entering into agreements in connection with the issuance of the bonds and for the authorization, issuance and sale of the bonds pursuant to this article without regard to the procedure otherwise required by this chapter or by any other law.
Sec. 2. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
