ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: ED DPA 6-4-0-0 | APPROP DP 8-4-0-1

HB 2180: school facilities; replacement; renovation; funding

Sponsor: Representative Udall, LD 25

Caucus & COW

Overview

Allows New School Facilities (NSF) Fund monies to be used for the renovation or replacement of eligible school facilities that pose a health or safety threat and that are beyond their useful life.

History

Laws 2021, Chapter 404 transferred the authorities, powers and duties of the School Facilities Board to the School Facilities Oversight Board (SFOB) and Division of School Facilities (Division), both of which are housed within the Arizona Department of Administration.

The NSF Fund is administered by the Division at the direction of the SFOB. Currently, NSF Fund monies may be used to construct new school facilities and contracted expenses, like construction project management services, assessments for school buildings and land acquisition.

School districts are required to annually submit a capital plan to SFOB that includes enrollment projections for the school district, a description of new schools or additions to existing schools needed to meet building adequacy standards and long-term projections of the need for land for new schools. If an enrollment projection indicates that additional space or a new school facility will be needed to meet the guidelines, statute outlines formulas SFOB must follow when determining the amounts to provide to eligible school districts (A.R.S. §§ 41-5702, 41-5741).

SFOB is required to adopt rules establishing the guidelines that provide the minimum quality and quantity of school buildings, facilities and equipment necessary for students to achieve academic standards (A.A.C. Title 7, Chapter 6, Article 2).

Provisions☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

1.   Adds NSF Fund monies may be used for renovating or replacing facilities that a school district believes poses a health or safety threat to students and are beyond their useful life. (Sec. 4)

2.   Directs SFOB to prescribe a uniform format for school district governing boards to use in developing a capital plan for construction to renovate or replace school facilities. (Sec. 4)

3.   Details the capital plan must include:

a)   The condition of the facility; and

b)   A description of all school district facilities of the same type that are not currently being used for education and that are within a five-mile radius of the school facility. (Sec. 4)

4.   Allows a school district to apply to SFOB for NSF Fund monies to renovate or replace an existing school facility. (Sec. 4)

5.   Requires SFOB to review a school district's application for monies to renovate or replace an existing school facility. (Sec. 4)

6.   Prohibits SFOB from approving an application if the school district does not satisfy one or more of qualifications necessary for approval. (Sec. 4)

7.   Instructs SFOB to notify the Division that it must procure an assessment that:

a)   Determines whether the facility poses a health or safety threat to students;

b)   Determines whether the facility is beyond its useful life; and

c)   Includes a facility condition index to determine whether the cost to repair the facility is 50% or more over a five-year period than the cost to renovate or replace the facility. (Sec. 4)

8.   Prohibits the Division from procuring an assessment if it determines that the school district does not satisfy one or more of the qualifications necessary for approval. (Sec. 4)

9.   Requires the Division to submit its assessment and recommendation or determination to SFOB and SFOB to determine whether the facility is suitable for renovation or replacement. (Sec. 4)

10.  Instructs the Division, at the direction of SFOB and subject to legislative appropriation, to distribute NSF Fund monies as determined by SFOB after review of the assessment if:

a)   The school district does not have access to underutilized school facilities of the same type that could serve as an adequate replacement within a five-mile radius of the school facility;

b)   The school district does not have sufficient and underutilized school facilities of the same type and on the same property as the proposed project;

c)   The Division's assessment reveals that the cost to repair the facility over a five-year period is at least 50% of the cost to meet the minimum school facility adequacy guidelines, the facility poses a health or safety threat to students and is beyond its useful life;

d)   The school at which the facility will be renovated or replaced has an enrollment of at least 75% of the amount generated by the minimum adequate gross square footage requirements and has not received a D or F letter grade on the three most recent report cards; and

e)   The Legislature appropriates sufficient monies for construction costs for the renovation or replacement. (Sec. 4)

11.  Limits the scope of renovation or replacement projects according to the number of pupils served or projected to be served by the school, geographic factors and compliance with minimum school facility adequacy requirements. (Sec. 4)

12.  Stipulates a project for which a school district receives NSF Fund monies is not eligible for BRG Fund monies. (Sec. 3)

13.  Excludes renovation or replacement projects from statute that allows school districts to be reimbursed by SFOB for approved land or new school construction projects paid for by the school district when legislative appropriations are made available. (Sec. 4)

14.  Deletes language that allows:

a)   SFOB or the Division to contract for assessments for school buildings to determine if the buildings have outlived their useful life or have been condemned; and

b)   A school district to submit an application to SFOB for NSF Fund monies if one or more school buildings have outlived their useful life or have been condemned. (Sec. 2, 4)

15.  Contains a delayed effective date of January 1, 2023. (Sec. 6)

16.  Makes technical and conforming changes. (Sec. 1, 2, 3, 4)

 

 

 

 

Amendments

Committee on Education

1.   Directs SFOB to prescribe a uniform application, rather than capital plan, for school district governing boards to use when applying for NSF Fund monies.

2.   Specifies the application must require a school district governing board to demonstrate that the proposed project reasonably appears to satisfy the qualifications for approval.

3.   Removes the requirement that, to qualify for NSF Fund monies, a school district not have access to underutilized school facilities of the same type that could serve as an adequate replacement within a five-mile radius.

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7.                     HB 2180

8.   Initials CH Page 0 Caucus & COW

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