SB1422

Official summary

SB1422 - 572R - Senate Fact Sheet Assigned to ED���������������������������������������������������������������������������������������������������������������������� FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session FACT SHEET FOR S.B. 1422 credit enhancement eligibility board; continuation Purpose Continues the Credit Enhancement Eligibility Board (Board) for 10 years. Background The Board oversees the Arizona Public School Credit Enhancement Program (Program), which assists public schools in obtaining more favorable financing by guaranteeing the payment of principal and interest on guaranteed financing issued by, or on behalf of, achievement district schools. To be eligible to participate in the Program, a public school or charter school must first apply to the Board to qualify as an achievement district school. The Board reviews and approves or denies achievement district school applications for guaranteed financing, and may deliver nonnegotiable program funding obligations in an aggerate principal amount not exceeding $80,000,000 ( A.R.S. �� 41-5841 � 41-5857 ). The Board consists of: 1) the Governor, or the Governor's designee; 2) the State Treasurer, or the State Treasurer's designee; and 3) the Director of the Arizona Department of Administration (ADOA), or the ADOA Director's designee. The Division of School Facilities within the ADOA must provide staff as requested by the Board to support the Board's activities (A.R.S. �� 41-5852 and 41-5853 ). The Senate Education Committee of Reference (COR) held a public meeting on January 21, 2026, to review and evaluate Board's responses to the sunset review factors and receive public testimony. The COR recommended that the Legislature continue the Board for 10 years, until July 1, 2036 ( COR Report ). The Board terminates on July 1, 2026, unless continued by the Legislature ( A.R.S. � 41-3026.01 ). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Continues, retroactive to July 1, 2026, the Board until July 1, 2036. 2. Repeals the Board on January 1, 2037, if: a) the Board has no outstanding Program funding obligations issued or the Legislature has otherwise provided for paying or retiring any outstanding Program funding obligations issued; and b) there are no outstanding guaranteed financings approved by the Board. 3. Repeals the Board, if neither of the conditions relating to outstanding Program funding obligations and guaranteed financings are met by January 1, 2037, 30 days after the retirement of all Program funding obligations and any outstanding guaranteed financings.� 4. Contains a purpose statement. 5. Becomes effective on the general effective date, with a retroactivity provision as noted. Prepared by Senate Research February 2, 2026 MH/SM/hk