ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: ED DP 6-1-0-0 | 3rd Read 27-1-2-0

SB 1503: continuation; school facilities oversight board

Sponsor: Senator Farnsworth, LD 10

Committee on Education

Overview

Continues the School Facilities Oversight Board (SFOB) for five years. Establishes requirements relating to the disclosure of substantial interests for SFOB employees.

History

Laws 2021, Chapter 404 transferred the powers and duties of the School Facilities Board to SFOB and the Division of School Facilities (Division), both of which are within the Arizona Department of Administration (ADOA). Statute details the responsibilities of SFOB, which include: 1) reviewing and approving student population projections submitted by school districts for the purposes of New School Facilities (NSF) Fund distributions; 2) approving the Division to distribute NSF Fund monies; 3) approving or rejecting school district requests to reduce pupil square footage; 4) adopting minimum school facility adequacy guidelines and certifying that plans for new school facilities meet these guidelines; 5) reviewing the policies developed by the Division to administer the Emergency Deficiencies Correction Fund and the Building Renewal Grant Fund; and 6) submitting multiple reports detailing SFOB's and the Division's activities (A.R.S. §§ 41-5702, 41-5703, 41-5711, 41-5721, 41-5731 and 41-5741).

SFOB consists of seven members who meet prescribed requirements and who are appointed by the Governor and confirmed by the Senate, as well as the Superintendent of Public Instruction and the ADOA director (or their designees), both of whom serve as advisory nonvoting members (A.R.S. § 41-5701.02).

SFOB terminates on July 1, 2025. The House of Representatives Education Committee of Reference (COR) met on January 14, 2025 to conduct the sunset review of SFOB and recommended that SFOB be continued for two years (A.R.S. § 41-3025.07) (COR Minutes).

Provisions

1. Continues, retroactive to July 1, 2025, SFOB until July 1, 2030. (Sec. 2, 5)

2. Repeals SFOB, the Division and related statutes on January 1, 2031, only if:

a) SFOB has no outstanding state school facilities revenue bonds, state school improvement revenue bonds and lease-to-own transactions; or

b) the Legislature has otherwise provided for paying or retiring any outstanding state school facilities revenue bonds, state school improvement revenue bonds and lease-to-own transactions. (Sec. 2)

3. Provides that if neither of these conditions has occurred by January 1, 2031, SFOB, the Division and related statutes are repealed 30 days after the retirement of all revenue bonds and outstanding lease-to-own transactions. (Sec. 2)

4. Instructs the SFOB director to require each employee to disclose in writing to SFOB at least annually any interest the employee has in any contract, sale, purchase, service or other transaction of SFOB, the Division or a school district. (Sec. 3)

5. Directs SFOB to determine whether an interest disclosed by an employee is a substantial interest and to maintain a record of all identified substantial interests. (Sec. 3)

6. Contains a purpose statement. (Sec. 4)

7. Makes technical and conforming changes. (Sec. 1, 3)

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11. SB 1503

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