AZ HB2271

Authorizes the Arizona Board of Regents to issue commercial paper (short-term notes) with maturities up to 270 days to finance capital projects at universities under its jurisdiction.

Commercial paper may be secured by pledges of revenues allowed under existing bond financing provisions or paid from amounts budgeted by the board for the current fiscal period.

Establishes that commercial paper paid from budgeted amounts is a current expense (not general obligation debt) and the board's payment obligations cease if future funding is not budgeted.

Limits outstanding commercial paper to no more than 25 percent of a university's total debt capacity and requires board establishment of final maturity dates and maximum interest rates.

Permits the board to obtain letters of credit, lines of credit, or insurance as additional security for commercial paper and to enter into reimbursement agreements with financial institutions.