Official Summary Text
HB2320 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
H.B. 2320
school districts;
bonds; financial advisors
Purpose
Requires a school district governing board (governing board) to hire an
independent municipal advisor before calling an election for outlined purposes
to assist the governing board with the election and any issuance of school
district bonds. Outlines requirements and duties for an independent municipal
advisor who is hired by a school district.
Background
A governing board may, and on petition of 15 percent of the school
district electors must, hold an election to: 1) locate or change the location
of school buildings; 2) purchase, sell or construct school sites or buildings
as prescribed; 3) decide whether school district bonds be issued and sold for
specified purposes; 4) lease school buildings or grounds for a period of more
than 20 years; or 5) change the list of capital projects or purposes authorized
by prior voter approval to issue bonds. School district bonds must be issued
and sold to: 1) purchase or lease school lots;
2) build or renovate school buildings; 3) supply school buildings with
furniture, equipment and technology; 4) improve school grounds; 5) purchase
pupil transportation vehicles; or 6) liquidate any indebtedness already
incurred for such purposes. Bond counsel, financial advisory, printing cost and
paying agent fees associated with the issuance of school district bonds must be
paid from the amount authorized by the electors or current operating funds.
School district bond election expenses must be paid only from current operating
funds (
A.R.S.
� 15-491
).
A
municipal advisor
means a person who provides advice to, or on
behalf of, a municipal entity or obligated person with respect to municipal
financial products or the issuance of municipal securities, including advice
with respect to the structure, timing, terms and other matters concerning such
financial projects or issues. A
municipal advisor
includes financial
advisors, guaranteed investment contract brokers, third-party marketers,
placement agents, solicitors and swap advisors. Federal law requires a municipal
advisor to register with the U.S. Securities and Exchange Commission (U.S. SEC)
to provide advice relating to municipal financial products or the issuance of
municipal securities (
15
U.S.C. � 78o-4
).
There is no anticipated fiscal impact
to the state General Fund associated with this legislation.
Provisions
1.
Stipulates
that, before calling an election relating to school building location,
purchasing, selling or leasing school sites, issuing school district bonds or
changing the list of projects or purposes authorized by prior voter approval to
issue bonds, a governing board must hire an independent municipal advisor who
is registered and in good standing with the U.S. SEC, or its successor, to
advise and assist the governing board and school district with:
a)
the election; and
b)
if a
majority of votes cast at a school district bond election favors issuing the
bonds, each bond issue authorized by the election.
2.
Requires
an independent municipal advisor who is hired by a school district to:
a)
assist the governing board and school district in preparing the school
district bond election informational pamphlet;
b)
act in the best interests of the school district; and
c)
advise the governing board and school district on all aspects of issuing
school district bonds to assist the school district in achieving the most
effective cost of borrowing, including:
i.
determining the repayment structure of school district bonds;
ii.
if
necessary, obtaining ratings on school district bonds;
iii.
hiring other
professionals necessary to sell and issue school district bonds; and
iv.
assisting in any
other matter that is related to school district bond issuance.
3.
Prohibits
an independent municipal advisor who is hired by a school district from:
a)
colluding in advising on the selection of other professionals to assist
the school district; or
b)
if the person served as the independent municipal advisor for the
issuance of the school district bonds, purchasing or underwriting any issue of
school district bonds.
4.
Becomes
effective on the general effective date.
House Action
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Prepared by Senate Research
March 17, 2026
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Current Bill Text
Read the full stored bill text
HB2320 - 572R - H Ver
House Engrossed
school districts;
bonds; financial advisors
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2320
AN
ACT
amending title 15, chapter 4, article 5,
Arizona Revised Statutes, by adding section 15-492; relating to school
bond elections.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 4, article 5,
Arizona Revised Statutes, is amended by adding section 15-492, to read:
START_STATUTE
15-492.
Independent municipal advisors; duties; prohibition
A. Before calling an election
pursuant to this article, the governing board of a school district shall hire
an independent municipal advisor who is registered and in good standing with
the securities and exchange commission, or its successor, to advise and assist
the school district governing board and the school district with both:
1. The election.
2. If a majority of votes cast at the
bond election favors issuing the bonds, each bond issue authorized by the
election.
B. An independent municipal advisor
who is hired pursuant to subsection A of this section shall:
1. Advise the school district
governing board and the school district on all aspects of issuing the bonds to
assist the school district in achieving the most effective cost of borrowing,
including:
(
a
) Determining
the repayment structure of the bonds.
(
b
) Obtaining
ratings, if necessary, on the bonds.
(
c
) Hiring
other professionals necessary to sell and issue the bonds.
(
d
) Assisting
in any other matter that is related to the issuance of the bonds.
2. Assist the school district
governing board and the school district in preparing the informational pamphlet
required pursuant to title 35.
3. Act in the best interests of the
school district.
C. An independent municipal advisor
who is hired pursuant to subsection A of this section may not:
1. Collude in advising on the
selection of other professionals to assist the school district.
2. Purchase or underwrite any issue
of school district bonds, if the person served as the independent municipal
advisor for that issue of bonds.
END_STATUTE