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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
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HB 2679: SFB; department of administration
Sponsor: Representative Udall, LD 25
Committee on Education
Overview
Eliminates the School Facilities Board (SFB) and transfers its authority, powers, duties and responsibilities to the Arizona Department of Administration (ADOA) and the School Facilities Board (Oversight Board) established within ADOA.
History
SFB is tasked with making assessments of school facilities and equipment deficiencies and approving the distribution of monies from the Building Renewal Grant (BRG) Fund, Emergency Deficiencies Correction (EDC) Fund and New School Facilities (NSF) Fund. Its powers and duties include:
1) Maintaining a database of school facilities to administer the BRG Fund and the new school facilities formula;
2) Inspecting school buildings at least once every five years to ensure compliance with the building adequacy standards;
3) Reviewing and approving student population projections submitted by school districts;
4) Certifying that plans for new school facilities meet building adequacy standards;
5) Developing prototypical elementary and high school designs;
6) Developing relevant application forms, reporting forms and procedures, including establishing a project eligibility assessment for all projects submitted for BRG funding or EDC funding;
7) Submitting multiple reports regarding its activities and disbursements;
8) Adopting minimum school facility adequacy guidelines; and
9) Validating proposed adjacent ways projects (A.R.S. § 15-2002).
SFB is composed of nine voting members who are appointed by the Governor and meet requirements established by statute. The Superintendent of Public Instruction serves as an advisory nonvoting member (A.R.S. § 15-2001).
ADOA provides centralized general support services to state agencies, including accounting, financial, purchasing, building and grounds maintenance, personnel, information technology, motor pool, travel reduction and risk management services. Within ADOA is the State Procurement Office, which serves as the state's central procurement authority and is responsible for the authorization, oversight and management of the contracting and purchasing activities of the state.
Provisions
Oversight Board
1. Eliminates SFB and establishes the Oversight Board within ADOA. (Sec. 26, 27)
2. States that the Oversight Board within ADOA succeeds to the authority, powers, duties and responsibilities of SFB. (Sec. 75)
3. Specifies that this act does not alter the effect of any actions that were taken or impair the valid obligations of SFB in existence before the effective date of this act. (Sec. 75)
4. Clarifies that administrative rules and orders that were adopted by SFB continue in effect until superseded by administrative actions by the Oversight Board. (Sec. 75)
5. Transfers and renumbers Title 15, Chapter 16, A.R.S., relating to school capital finance, for placement in Title 41, A.R.S., relating to state government, as a new Chapter 56. (Sec. 16)
6. Amends the article heading of Title 41, Chapter 56, Article 1, as transferred and renumbered, from "SCHOOL FACILITIES BOARD" to "SCHOOL FACILITIES OVERSIGHT BOARD". (Sec. 26)
7. Authorizes the Oversight Board with the same powers and duties as SFB and adds that these powers and duties include:
a) Allowing ADOA to administer the BRG Fund; and
b) Adopting rules regarding the validation of adjacent ways projects. (Sec. 28)
8. Outlines membership of the Oversight Board as follows:
a) Upon appointment by the Governor and confirmation by the Senate:
i. One member who represents a statewide organization of taxpayers;
ii. Two members from private industry with knowledge and experience in school construction;
iii. One member who is a registered professional architect and who has current knowledge and experience in school architecture;
iv. One member with knowledge and experience in school facilities management in a public school system;
v. One member who is a registered professional engineer;
vi. One member who is an owner or officer of a private construction company whose business does not include school construction;
b) The Superintendent of Public Instruction (SPI) or their designee; and
c) The Director of ADOA or their designee (Sec. 27)
9. Specifies that the SPI or SPI's designee and the Director of ADOA or the Director's designee serve as advisory nonvoting members. (Sec. 27)
10. Designates the Director of ADOA or the Director's designee as chairperson of the Oversight Board. (Sec. 27)
11. Allows a member of SFB to continue to serve as a member of the Oversight Board until their current term of office expires. (Sec. 74)
12. Eliminates the position of executive director. (Sec. 28)
13. Terminates the Oversight Board on July 1, 2022. (Sec. 24)
Capital Additional Assistance Fund
14. Establishes the Capital Additional Assistance Fund that is administered by the State Treasurer. (Sec. 21)
a) States that the Capital Additional Assistance Fund consists of legislative appropriations.
b) Provides that Capital Additional Assistance Fund monies are continuously appropriated and are exempt from lapsing. (Sec. 21)
15. Directs the State Treasurer to invest and divest Capital Additional Assistance Fund monies and to credit monies earned from investment to the Capital Additional Assistance Fund. (Sec. 21)
16. Requires the State Treasurer to allocate monies in the Capital Additional Assistance Fund to school districts on a pro rata basis using weighted student count for the school district for the prior fiscal year. (Sec. 21)
17. Specifies that the weighted student count for a school district that serves as the district of attendance for nonresident students must be increased to include nonresident students who attend school in the school district. (Sec. 21)
18. Mandates each school district establish a local-level Capital Additional Assistance Fund to receive allocations from the state-level Capital Additional Assistance Fund. (Sec. 21)
19. Directs the Auditor General to modify the budget format, financial record requirements, accounting forms and financial report forms in accordance with the establishment of district-level Capital Additional Assistance Funds. (Sec. 21)
20. Requires the Auditor General to provide support and guidance to assist school districts in complying with the reporting requirements of district-level Capital Additional Assistance Funds. (Sec. 21)
21. Instructs the State Treasurer and the Joint Legislative Budget Committee to review the documents developed by the Auditor General. (Sec. 21)
22. Requires a school district to submit a request to the State Treasurer to receive capital additional assistance and requires the State Treasurer to automatically transmit the requested amount to the school district. (Sec. 21)
23. Prohibits the State Treasurer from transmitting more than the amount of a district's capital additional assistance allocation. (Sec. 21)
24. Allows a school district to use capital additional assistance monies on projects for buildings or any part of a building in the Oversight Board's database for:
a) Major renovations or repairs to a building that is used for student instruction or other academic purposes;
b) Upgrading systems and areas that will maintain or extend the useful life of a building;
c) Infrastructure costs; and
d) Project or construction assessments, or both.
25. Prohibits a school district from using capital additional assistance monies for:
a) New construction;
b) Remodeling interior space for aesthetic or preferential reasons;
c) Exterior beautification;
d) Demolition;
e) Routine preventative maintenance; or
f) Any project in a building, or part of a building, that is being leased to another entity. (Sec. 21)
26. Requires a school district that receives capital additional assistance monies to account for all expenditures of these monies on a form prescribed by the State Treasurer.
a) Instructs a school district to submit the form to the State Treasurer in a manner prescribed by the State Treasurer. (Sec. 21)
27. Directs the State Treasurer to compile a monthly report that details all expenditures of capital additional assistance monies.
a) Requires the State Treasurer to submit the report to the Oversight Board. (Sec. 21)
28. Specifies that accommodation schools are not eligible for capital additional assistance monies. (Sec. 21)
BRG, NSF and EDC Funds
29. Requires ADOA to administer the BRG Fund. (Sec. 35)
30. Instructs ADOA to distribute monies from the BRG Fund based on grant requests from school districts to fund primary building renewal projects. (Sec. 35)
31. Prohibits ADOA from distributing monies from the BRG Fund unless the projected cost of the project request exceeds 50% of the school district's allocation from the Capital Additional Assistance Fund. (Sec. 35)
32. Directs ADOA to:
a) Implement policies and procedures to require a school district to report the preventative maintenance activities completed during the previous twelve months for the facility for which BRG monies are being requested; and
b) Submit a monthly report to the Oversight Board that details how monies from the BRG Fund have been distributed. (Sec. 35)
33. Requires the Oversight Board to establish a project eligibility assessment for all projects submitted for BRG funding or EDC funding and to adopt rules regarding the approval of building renewal grants. (Sec. 35)
34. Directs the Oversight Board to administer the EDC and NSF Funds. (Sec. 34, 36)
Adjacent Ways Projects
35. Requires ADOA to:
a) Validate proposed adjacent ways projects submitted by school districts pursuant to rules adopted by the Oversight Board; and
b) Submit a monthly report to the Oversight Board that details each adjacent ways project that was validated. (Sec. 12, 22)
Appropriations
36. Appropriates $40,000,000 from the state General Fund (GF) in FY 2021 to the Capital Additional Assistance Fund. (Sec. 76)
37. Appropriates $60,000,000 from the state GF in FY 2021 to the BRG Fund. (Sec. 76)
Miscellaneous
38. Makes a conforming change, subject to Proposition 105 requirements. (Sec. 77)
39. Makes technical and conforming changes. (Sec. 1-75)
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Initials CH Education
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