ARIZONA STATE SENATE
RESEARCH STAFF
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BRANDI LEASE LEGISLATIVE RESEARCH ANALYST EDUCATION COMMITTEE Telephone: (602) 926 -3171
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TO: MEMBERS OF THE SENATE EDUCATION COMMITTEE
SUBJECT: Strike everything amendment for S.B. 1154, relating to school districts; capital; accountability
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Purpose
Modifies requirements for school district and charter school procurement.
Background
Statute requires the State Board of Education (SBE) to adopt rules prescribing procurement practices for all school districts that are consistent with the Arizona Procurement Code, including rules for construction procurement costing less than $150,000 and procurement for school districts and charter schools of goods and information services. After bids are submitted, school district governing boards must make available for public inspection, all information, bids, proposals and qualifications submitted.
The Auditor General (OAG) may conduct discretionary reviews, investigations and audits of the financial and operational procurement activities of school districts, nonexempt charter schools and school purchasing cooperatives. Statute authorizes the Attorney General (AG) or county attorney to enforce school procurement regulations and to seek relief for violations through an appropriate civil or criminal action in superior court (A.R.S. § 15-213).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the SBE to adopt rules for school district and charter school procurement of any materials, services, goods, construction or construction services that ensure maximum practicable competition.
2. Holds personally liable for the recovery of all public monies plus interest, a person who contracts for or purchases any materials, services, goods, construction or construction services in a manner contrary to the SBE procurement rules.
3. Stipulates a person who intentionally or knowingly contracts or purchases any materials, services, goods, construction or construction services pursuant to a scheme or artifice to avoid the SBE procurement rules is guilty of a class 4 felony.
4. Prohibits a person preparing procurement specifications from receiving any direct or indirect benefit from the utilization of those specifications.
5. Prohibits a person who serves on a selection committee for procurement from:
a) being a contractor or subcontractor under a contract awarded under the procurement; or
b) providing any specified professional services, construction, construction services, materials or other services under the contract.
6. Stipulates a person who serves on a selection committee for procurement is subject to a civil penalty if the person fails to do either of the following:
a) disclose contact with a representative of a competing vendor; or
b) provide required accurate information.
7. Requires the SBE to adopt rules requiring school districts and charter schools to obtain and maintain a record of proof that a construction or construction services provider awarded a contract with the school district, charter school or school purchasing cooperative, has a valid license to practice in Arizona.
8. Requires a school district governing board to make available for public inspection, the rationale for awarding a contract for any specified professional services, construction, construction services or materials to an entity selected from a qualified select bidders list or through a school purchasing cooperative.
9. Allows the OAG to refer a suspected violation of the SBE procurement rules to the AG for investigation.
10. Allows the AG, if the AG has reasonable cause to believe a person has violated the SBE procurement rules, to:
a) require that person to file a statement or report in writing and under oath as to all facts and circumstances concerning a violation and other information the AG deems necessary; and
b) examine under oath any person in connection with a violation of the SBE procurement rules.
11. Prohibits school district or charter school employees who have control over personnel actions from taking reprisal against a school district or charter school employee for disclosure of information to a public body that is a matter of public concern, including violations of the SBE procurement rules.
12. Makes technical and conforming changes.
13. Becomes effective on the general effective date.