ARIZONA HOUSE OF REPRESENTATIVES

SB 1066: school facilities board; reforms

PRIME SPONSOR: Senator Brophy McGee, LD 28

BILL STATUS: Education

Abstract

Relating to SFB programs.

Provisions

1. Allows school district governing boards to delegate authority in writing to the district's superintendent to submit NSF plans for minimum adequacy certification. (Sec. 1)

2. Includes SFB employees in conflict of interest requirements and prohibits SFB employees from having a direct or indirect financial interest in purchases, construction or contracts financed with SFB or public monies.

a. Classifies knowing violations as a Class 1 misdemeanor (6 months/$2,500 + surcharges). (Sec. 2)

3. Requires SFB to establish policies and procedures for BRG change orders that:

a. Require SFB to approve or reject a change order within two business days; and

b. Instruct school districts to be responsible for the cost and construction of projects that the school district approves prior to SFB approving the change order. (Sec. 2)

4. Requires SFB to establish policies and procedures to:

a. Notify school districts in a uniform manner of the services and funding available from SFB at least annually and update and post the information to its website by July 1.

b. Establish a project eligibility assessment for BRG or EDC projects.

i. Allows SFB to review the costs and scope of the project with bidders prior to approval.

c. Ensure the maintenance of standardized documentation for proposed and approved projects, including outlined eligibility criteria.

d. Require school districts to submit specified contact information for each proposed project.

e. Require school districts to provide justification for each project that includes specified items.

f. Require school districts to report preventative maintenance activities on the facility in the previous year when applying for BRG monies.

g. Require initial applications to be considered incomplete until all necessary information is submitted.

h. Allow school districts to submit incomplete applications and request technical assistance if the district is unable to provide sufficient information.

i. Require complete applications to be received at least 15 business days before the next regular Board meeting to be considered.

i. Allows incomplete applications to be considered if both SFB staff and the school district's superintendent deem the project critical.

j. Allow SFB staff to notify school districts in writing that the project does not meet eligibility criteria before review.

i. Requires notification to include documentation supporting the determination.

ii. Allows school districts to appeal the determination of ineligibility to the Executive Director and appeal the Executive Director's determination of ineligibility to the Board.

k. Prohibit SFB staff from requesting that a school district withdraw a project application from Board review if the initial staff review determines that the project may be ineligible. (Sec. 3)

5. Instructs SFB to maintain a list of persons responsible for facilities management at each school district and requires school districts to promptly notify SFB of any changes in personnel.

a. Directs SFB to annually update and post the information to its website by July 1. (Sec. 2)

6. Allows school districts to appeal the denial of a request for monies or any other appealable action to OAH.

a. Defines appealable action. (Sec. 3)

7. Removes BRG application prioritization for school districts that can provide matching monies. (Sec. 4)

8. Requires BRG monies for major renovations and repairs to be used for buildings that are used for student instruction or other academic purposes. (Sec. 4)

9. Requires SFB to categorize each BRG project that is eligible for monies as critical or noncritical.

a. Requires projects to be designated as critical if the project immediately impacts student safety, results in a building closure or results in operational disruptions.

b. Directs SFB to prioritize critical projects. (Sec. 4)

10. Instructs SFB to notify school districts if sufficient monies are unavailable for an approved noncritical BRG project that monies will be distributed from the BRG Fund only if sufficient monies are appropriated. (Sec. 4)

11. Makes technical and conforming changes (Sec. 1-4)

Current Law

SFB primarily administers three programs: BRG, EDC and NSF.  The BRG program allows school districts to apply to SFB for building renewal project monies for projects that include major renovations and repairs, upgrading systems and areas to improve building lifespan and infrastructure costs.  Project requests are prioritized by SFB based on whether the school district has provided routine preventative maintenance and can provide a match of monies (A.R.S. § 15-2032). The EDC program allows schools to apply for funding to correct an emergency which is defined as a serious need for materials, services, construction or expenses in excess of the district's adopted budget that seriously threatens the functioning of the school district, the preservation nor protection or property or public health, welfare or safety (A.R.S. § 15-2022). The NSF program allow school districts to apply for SFB approval to receive legislatively appropriated monies to construct new facilities (A.R.S. § 15-2041). 

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  SB 1066

Second Regular Session                               Version 1: Education

---------- DOCUMENT FOOTER ---------