Rep. Vince Leach’s bill, HB2402, is expected to be voted on today by the Arizona House of Representatives. The bill was requested by Pima County Supervisor Ally Miller in order to increase transparency in bonding.
Activists are encouraging the public to contact legislators to support this bill.
HB 2402 specifies information that must be included in county and municipal bond election pamphlets and ballots.
Provisions
1. Requires the following information to appear on bond election pamphlets distributed by a county or municipality:
a. The estimated tax impact of debt service for the bond, at the maximum interest rate authorized by the voters.
b. The estimated total cost of the bond, including principal and interest at the maximum interest rate authorized by the voters.
c. A disclosure that the expenditure authorized by the bond is governed by the general purposes of the bond and not the proposed projects listed in the pamphlet.
2. Requires a county or municipal bond election ballot to include a disclosure that a “yes” vote may increase the primary tax rate to pay for the maintenance and operation of projects funded by the bond.
3. Makes technical and conforming changes.
Current Law
A.R.S. § 35-454 establishes informational requirements for county and municipal bond election pamphlets and ballots. Counties and municipalities are required to distribute a bond election pamphlet at least 35 days before an election to each household under their jurisdiction, containing all of the following information:
· The amount of the bond authorization.
· The maximum interest rate of the bond.
· The estimated debt retirement schedule for the current amount of bonds outstanding and the proposed bond, the current net assessed value and the current adopted and estimated tax rates.
· The source of repayment.
· The estimated issuance costs.
· The estimated tax impact of debt service for the bond.
· The estimated total cost of the proposed bond.
· The current outstanding general obligation debt and constitutional debt limitation.
· Projects and expenditures for which the bond is to be issued.
· The purpose of the bond
· The hours during the day when the polls will be open.
· The arguments for and against the authorization of one or more of the bond propositions.