State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1256: school districts: procurement practices; auditors

PRIME SPONSOR: Senator Gray, LD 21

BILL STATUS: Education

                               

 

Overview

Removes restrictions on a school district auditing and consulting services, and repeals procurement contracts awarding the lowest qualified bidders. Establishes the School Procurement Consulting Pilot Program (Program)☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☒ Emergency (40 votes) ☐ Fiscal Note.

History

Current law prevents a school district from hiring the same auditor or auditing firm for more than 3 consecutive years and prohibits the auditor or auditing firm from receiving consulting fees from that school district (A.R.S. § 15-213).

A.R.S. § 15-213 requires the SBE to adopt rules for the procurement by school districts of any materials, services, goods, construction and construction services. These rules are established in A.A.C. R7-2-1001. Laws 2018, Ch. 285, §§ 5 and 32 (HB 2663) amended this statute by specifically requiring the SBE to adopt rules that school districts award contracts based on the lowest qualified bidder by June 30, 2019.

Provisions

Cycling Audit Firms

1.       Removes prohibitions for a school district to hire the same auditor or auditing firm for more than three consecutive years and removes prohibition on an auditor or auditing firm hired by school district from receiving consulting fees from that school district.   (Sec. 1)

School District Procurement Rules

2.       Repeals the requirement that the SBE adopt rules for school district procurement requiring contracts for materials, services, goods, construction or construction services to be awarded based on the lowest qualified bidder. (Sec. 2)

School District Procurement Pilot Program

3.       Requires the School Facilities Board (SFB) to select three school districts with ongoing or planned procurements of construction services using alternative project delivery methods either as a SFB-approved project or as a locally procure project by September 1, 2019. (Sec. 3)

4.       Specifies that one selected school district must have an average daily membership (ADM) between 2,000 and 8,000, and two selected school districts must have an ADM of less than 2,000. (Sec. 3)

5.       Directs the SFB to provide technical assistance and procurement consulting to the selected school. (Sec. 3)

6.       Mandates the SFB to submit a report of its findings to the Governor, President of the Senate and Speaker of the House of Representatives, the chairpersons of the Senate Education Committee and House of Representatives Education Committee, or their successor committees, and provide a copy to the Secretary of State, by September 1, 2020. (Sec. 3)

7.       Defines construction for purposes of the Program. (Sec. 3)

8.       Repeals the Program on February 16, 2021. (Sec. 3)

Miscellaneous

9.       Contains an emergency clause. (Sec. 4)

10.   Makes technical and conforming changes. (Sec. 1)

 

 

 

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Fifty-fourth Legislature                               SB 1256

First Regular Session                    Version 1: Education

 

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