HB 2320

Senate Engrossed
  House Bill
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_STATUTE15-492. Independent municipal advisors; duties; prohibition; exemption
A. Before calling an election for the purpose of deciding whether bonds of the school district shall
be issued and sold pursuant to this article, the governing board of a school
district shall hire, on a contingency fee basis, 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.
4. Receive compensation from the
school district only if voters authorize the school district to issue bonds in
the election for which the independent municipal advisor provides advice and
assistance.
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.
D. A school district is not required
to hire an independent municipal advisor pursuant to this section if the school
district is unable after reasonable effort to hire a qualified independent
municipal advisor on a contingency fee basis. END_STATUTE