SB1729 introduces the Arizona Credit Enhancement Program designed to support school districts and charter schools in securing better financing terms for capital facilities by providing a guarantee for the payment of principal and interest on their debt obligations. The program will be overseen by the newly created Arizona Credit Enhancement Eligibility Board, which will be responsible for administering the program, adopting operational rules, and managing legal actions related to the program.
The legislation also establishes the Arizona Credit Enhancement Fund, which will be managed by the State Treasurer and funded through various sources, including fees and donations. This fund will be used to cover payments on guaranteed financing when schools are unable to do so, with the expectation that schools will reimburse the fund with interest. Schools wishing to participate in the program must meet specific criteria, including financial stability and, for charter schools, a minimum "BB" bond rating. The bill includes provisions for regular reporting on the program's financial status and activities.