15-1682.03. University capital improvement lease-to-own and bond fund; lease-to-own and bond agreements for capital improvements; joint committee on capital review hearing and approval; exemption
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/az/title-15/15-1682-03A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The university capital improvement lease-to-own and bond fund is established consisting of the monies provided by the Arizona board of regents pursuant to this section, monies deposited pursuant to section 5-572 and monies appropriated by the legislature. The board shall administer the fund. On notice from the board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
B. Through revenues of the state university system, the board shall annually provide monies to the fund of at least twenty percent of the aggregate annual payments of lease-to-own and bond agreements entered into by the board pursuant to this section.
C. Subject to the requirements prescribed by subsection D of this section, the board shall distribute monies in the fund to make payments pursuant to lease-to-own and bond agreements entered into by the board pursuant to this section. The board may enter into lease-to-own and bond agreements for the purposes of building renewal projects and new facilities. The board may enter into lease-to-own and bond transactions up to a maximum of $1,125,000,000. Of the maximum of $1,125,000,000 in lease-to-own and bond agreements authorized by this section, the board shall allocate $325,000,000 as follows:
1. Beginning in fiscal year 2025-2026, $162,500,000 to Arizona state university, northern Arizona university and university of Arizona. The board shall allocate at least twenty-five percent but not more than forty-five percent to each university.
2. Beginning in fiscal year 2026-2027, $162,500,000 to Arizona state university, northern Arizona university and university of Arizona. The board shall allocate at least twenty-five percent but not more than forty-five percent to each university.
D. Beginning on September 26, 2025, the board shall submit to the joint committee on capital review the scope, purpose and estimated cost of each new project that will be financed pursuant to this section. The board may not distribute monies for a project that the board is required to submit pursuant to this subsection until the joint committee on capital review approves the project by a majority vote of a quorum of members. For the purposes of this subsection, "financed" means funded, in whole or in part, by either of the following:
1. Payments pursuant to lease-to-own agreements entered into by the board pursuant to this section.
2. The proceeds of one or more bond agreements entered into by the board pursuant to this section.
E. The joint committee on capital review must hear and approve or disapprove a project submitted pursuant to subsection D of this section not later than the committee's second meeting after the project is submitted to the committee.
F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate this state to provide any additional monies from the state lottery fund above the amounts authorized in this section and section 5-572, subsection F. In entering into lease-to-own and bond agreements pursuant to this section, the board shall not obligate any state general fund monies.