A. A capital infrastructure fund is established for each university. Monies in each capital infrastructure fund are continuously appropriated for the purposes of this section. Each university shall administer its own capital infrastructure fund. Monies in the capital infrastructure funds are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. In fiscal year 2018-2019, the following amounts are appropriated from the state general fund for deposit in the capital infrastructure fund of each university:

1. $11,927,400 to Arizona state university.

2. $10,551,700 to the university of Arizona.

3. $4,520,900 to northern Arizona university.

C. In fiscal years 2019-2020 through 2042-2043, an amount is appropriated annually from the state general fund for deposit in the capital infrastructure fund of each university. The amount appropriated each fiscal year is equal to the amount appropriated pursuant to this section in the preceding fiscal year, adjusted by a growth rate of either two percent or the change in the implicit price deflator for the gross domestic product reported by the United States department of commerce from the second quarter of the second preceding calendar year to the second quarter of the calendar year immediately preceding the fiscal year, whichever is less, but not below the amount appropriated in the preceding fiscal year. Each annual appropriation amount is a current expense of this state in the fiscal year in which it occurs and is not a general obligation indebtedness of this state or of any university.

D. In each fiscal year in which monies are appropriated pursuant to this section, each respective university shall also deposit from its own funds to its capital infrastructure fund a matching amount equal to the amount of general fund monies used for paying debt service on debt financing for capital projects pursuant to subsection E of this section.

E. Each university shall use the monies in its capital infrastructure fund, from whatever source, exclusively for either the costs of, or paying debt service on debt financing for, capital projects. Monies from the capital infrastructure funds established by this section may not be used:

1. For any project reviewed by the joint committee on capital review before April 15, 2017.

2. For the construction, use, furnishing, improvement, operation, marketing, promotion or maintenance of a facility that is used primarily by a professional sports franchise.

3. To pay for operating expenditures.

F. The Arizona board of regents shall not issue total debt financing for which debt service is paid with monies pursuant to this section in a principal amount of more than $1,000,000,000.

G. Each university shall report the required information relating to its capital infrastructure fund in the budget estimate filed by the university pursuant to section 35-113.

H. Before spending any monies in the capital infrastructure fund for any capital project not paid with debt financing, each university shall submit the scope, purpose and estimated cost of the project for review by the joint committee on capital review pursuant to section 41-1252.

I. Before spending any monies in the capital infrastructure fund for any capital project paid with debt financing, each university shall submit the scope, purpose and estimated cost of the project to the joint committee on capital review pursuant to Section 15-1682.01 or 15-1683. The project may not proceed until the committee approves the project by a majority vote of a quorum of members.

J. The joint committee on capital review must hear and review a project submitted under subsection H of this section and hear and approve or disapprove a project submitted under subsection I of this section not later than the committee’s second meeting after the project is submitted to the committee.

K. The Arizona board of regents, on behalf of each university under its jurisdiction, may enter into or issue debt financings and may additionally secure, pledge for or make payment on such debt financings in whole or in part from monies in the capital infrastructure fund of that university. Debt service payments funded with monies from a university’s capital infrastructure fund shall be included in the calculation of that university’s debt service limit as prescribed by section 15-1683.

L. The Arizona board of regents, on behalf of each university under its jurisdiction, may refund any debt financing paid with monies pursuant to this section. The refunding debt financing must be secured from the same source of revenues as the debt financing authorized by this section. The refunding debt financing may be issued at or before maturity of the debt financing being refunded. Refunding debt financing issued as provided by this subsection:

1. Must be submitted by the board for review by the joint committee on capital review. The committee must hear and review a refunding debt financing submitted pursuant to this subsection not later than the committee’s second meeting after the refunding debt financing is submitted to the committee.

2. Is not subject to the $1,000,000,000 limit prescribed by subsection F of this section.

M. For the purposes of this section:

1. "Capital project" or "project" means any building, structure, infrastructure or facility that, as determined by the university, is required by or necessary for the use or benefit of the university, including appurtenant equipment and utilities. Capital project does not include a project that is intended to be commercial in nature and for which the majority of the project’s business is anticipated to come from the nonuniversity population.

2. "Debt financing" means a lease-purchase or lease-to-own agreement, subject to Section 15-1682.01, the issuance of bonds or the entering into of bond agreements pursuant to article 5 of this chapter by the Arizona board of regents on behalf of a university under the board’s jurisdiction.

3. "Debt service" means the principal of and interest and premium, if any, on long-term indebtedness, when due, and the costs of registrars, trustees, underwriters and other agents necessary to handle debt instruments and the costs of credit enhancement or liquidity support.

4. "Infrastructure" means nonbuilding improvements that directly support the operation of a building, structure or facility such as utility systems, roadway systems, external lighting systems, irrigation systems, sidewalks and parking lots.