AZ SB1729

Establishes the Arizona Credit Enhancement Program to help school districts and charter schools obtain more favorable financing terms by guaranteeing principal and interest payments on debt obligations for capital facilities.

Creates a three-member Arizona Credit Enhancement Eligibility Board consisting of the governor, state treasurer, and superintendent of public instruction to administer the program and approve applications.

Requires charter schools to meet eligibility criteria including letter grades of A or B, high academic outcomes, enrollment demand with waiting lists, sound financial plans, and BB or comparable bond ratings; school districts must meet board-established criteria.

Establishes the Arizona Credit Enhancement Fund to be administered by the state treasurer, funded by program participation fees, grants, bond proceeds, and investment income, with the permanent state school fund providing backup funding if needed.

Requires quarterly reporting to legislative leadership detailing all outstanding guaranteed financings, distributions made, fund balance, and program leverage ratios, with a maximum leverage ratio of 3.5 to 1.