Official Summary Text
SB1422 - 572R - Senate Fact Sheet
Assigned to
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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
Current Bill Text
Read the full stored bill text
Chapter 0226 - 572R - S Ver of SB1422
Senate Engrossed
credit enhancement
eligibility board; continuation
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 226
SENATE BILL 1422
AN
ACT
repealing section 41-3026.01,
Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona
Revised Statutes, by adding section 41-3036.01; relating to the credit
enhancement eligibility board.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1.
Repeal
Section 41-3026.01, Arizona Revised
Statutes, is repealed.
Sec. 2. Title 41, chapter 27, article 2,
Arizona Revised Statutes, is amended by adding section 41-3036.01, to read:
START_STATUTE
41-3036.01.
Credit enhancement eligibility board; termination July 1, 2036
A. The Credit enhancement eligibility
board terminates on July 1, 2036.
B. Title 41, chapter 56, articles 10
and 11 and this section are repealed on January 1, 2037 only if both of the
following apply:
1. The board has no outstanding
program funding obligations issued pursuant to title 41, chapter 56, article 11
or the legislature has otherwise provided for paying or retiring any
outstanding program funding obligations issued pursuant to title 41, chapter
56, article 11.
2. There are no outstanding
guaranteed financings approved pursuant to title 41, chapter 56, article 11.
C. If both of the conditions
prescribed by subsection B of this section do not exist on January 1, 2037,
title 41, chapter 56, articles 10 and 11 and this section are repealed thirty
days after both of the conditions prescribed by subsection B of this section
are met.
END_STATUTE
Sec. 3.
Purpose
Pursuant to section 41-2955,
subsection B, Arizona Revised Statutes, the legislature continues the credit
enhancement eligibility board to assist public schools in obtaining more
favorable financing.
Sec. 4.
Retroactivity
Sections 1 and 2 of this act apply
retroactively to from and after July 1, 2026.
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.