HB 2180 — school facilities; replacement; renovation; funding

For a sale of property acquired by a school district before July 9, 1998, a school district shall transfer to the school facilities oversight board that portion of the proceeds that equals the cost of the acquisition of a more suitable school site.

If there are any remaining proceeds after the transfer of monies to the school facilities oversight board, a school district shall only use those remaining proceeds for future land purchases approved by the school facilities oversight board, or for capital improvements not funded by the school facilities oversight board for any existing or future facility.

(d) The transaction involves the sale of improved or unimproved property pursuant to a formally adopted plan and the school district uses the proceeds of this sale to purchase other property that will be used for similar purposes as the property that was originally sold if the sale proceeds of the improved or unimproved property are used within two years after the date of the original sale to purchase the replacement property.

If the sale proceeds of the improved or unimproved property are not used within two years after the date of the original sale to purchase replacement property, the sale proceeds shall be used toward paying any outstanding bonded indebtedness.

If any sale proceeds remain after paying for outstanding bonded indebtedness, or if the district has no outstanding bonded indebtedness, sale proceeds shall be used to reduce the district's primary tax levy.

A school district shall not use this subdivision unless all of the following conditions exist:

(i) The school district is the sole owner of the improved or unimproved property that the school district intends to sell.

(ii) The school district did not purchase the improved or unimproved property that the school district intends to sell with monies that were distributed pursuant to title 41, chapter 56.

- 2 - HB 2180 (iii) The transaction does not violate section 15-341, subsection G.

11.

Review the decision of a teacher to promote a pupil to a grade or retain a pupil in a grade in a common school or to pass or fail a pupil in a course in high school.

The pupil has the burden of proof to overturn the decision of a teacher to promote, retain, pass or fail the pupil.

In order to sustain the burden of proof, the pupil shall demonstrate to the governing board that the pupil has mastered the academic standards adopted by the state board of education pursuant to sections 15-701 and 15-701.01.

If the governing board overturns the decision of a teacher pursuant to this paragraph, the governing board shall adopt a written finding that the pupil has mastered the academic standards.

Notwithstanding title 38, chapter 3, article 3.1, the governing board shall review the decision of a teacher to promote a pupil to a grade or retain a pupil in a grade in a common school or to pass or fail a pupil in a course in high school in executive session unless a parent or legal guardian of the pupil or the pupil, if emancipated, disagrees that the review should be conducted in executive session and then the review shall be conducted in an open meeting.

If the review is conducted in executive session, the board shall notify the teacher of the date, time and place of the review and shall allow the teacher to be present at the review.

If the teacher is not present at the review, the board shall consult with the teacher before making its decision.

Any request, including the written request as provided in section 15-341, the written evidence presented at the review and the written record of the review, including the decision of the governing board to accept or reject the teacher's decision, shall be retained by the governing board as part of its permanent records.

12.

Provide transportation or site transportation loading and unloading areas for any child or children if deemed for the best interest of the district, whether within or without the district, county or state.

13.

Enter into intergovernmental agreements and contracts with school districts or other governing bodies as provided in section 11-952.

Intergovernmental agreements and contracts between school districts or between a school district and other governing bodies as provided in section 11-952 are exempt from competitive bidding under the procurement rules adopted by the state board of education pursuant to section 15-213.

14.

Include in the curricula it prescribes for high schools in the school district career and technical education, vocational education and technology education programs and career and technical, vocational and technology program improvement services for the high schools, subject to approval by the state board of education.

The governing board may contract for the provision of career and technical, vocational and technology education as provided in section 15-789.

15.

Suspend a teacher or administrator from the teacher's or administrator's duties without pay for a period of time of not to exceed - 3 - HB 2180 ten school days, if the board determines that suspension is warranted pursuant to section 15-341, subsection A, paragraph 21 or 22.

16.

Dedicate school property within an incorporated city or town to that city or town or within a county to that county for use as a public right-of-way if both of the following apply:

(a) Pursuant to an ordinance adopted by the city, town or county, there will be conferred on the school district privileges and benefits that may include benefits related to zoning.

(b) The dedication will not affect the normal operation of any school within the district.

17.

Enter into option agreements for the purchase of school sites.

18.

Donate surplus or outdated learning materials, educational equipment and furnishings to nonprofit community organizations if the governing board determines that the anticipated cost of selling the learning materials, educational equipment or furnishings equals or exceeds the estimated market value of the materials.

19.

Prescribe policies to assess reasonable fees for students to use district-provided parking facilities.

The fees are to be applied by the district solely against costs incurred in operating or securing the parking facilities.

Any policy adopted by the governing board pursuant to this paragraph shall include a fee waiver provision in appropriate cases of need or economic hardship.

20.

Establish alternative education programs that are consistent with the laws of this state to educate pupils, including pupils who have been reassigned pursuant to section 15-841, subsection E or F.

21.

Require a period of silence to be observed at the commencement of the first class of the day in the schools.

If a governing board chooses to require a period of silence to be observed, the teacher in charge of the room in which the first class is held shall announce that a period of silence not to exceed one minute in duration will be observed for meditation, and during that time no activities shall take place and silence shall be maintained.

22.

Require students to wear uniforms.

23.

Exchange unimproved property or improved property, including school sites, if the governing board determines that the improved property is unnecessary for the continued operation of the school district without requesting authorization by a vote of the school district electors and if the governing board determines that the exchange is necessary to protect the health, safety or welfare of pupils or if the governing board determines that the exchange is based on sound business principles for either:

(a) Unimproved or improved property of equal or greater value.

(b) Unimproved property that the owner contracts to improve if the value of the property ultimately received by the school district is of equal or greater value.

- 4 - HB 2180 24.

For common and high school pupils, assess reasonable fees for optional extracurricular activities and programs conducted when the common or high school is not in session, except that fees shall not be charged for pupils' access to or use of computers or related materials.

For high school pupils, the governing board may assess reasonable fees for fine arts and vocational education courses and for optional services, equipment and materials offered to the pupils beyond those required to successfully complete the basic requirements of any other course, except that fees shall not be charged for pupils' access to or use of computers or related materials.

Fees assessed pursuant to this paragraph shall be adopted at a public meeting after notice has been given to all parents of pupils enrolled at schools in the district and shall not exceed the actual costs of the activities, programs, services, equipment or materials.

The governing board shall authorize principals to waive the assessment of all or part of a fee assessed pursuant to this paragraph if it creates an economic hardship for a pupil.

For the purposes of this paragraph, "extracurricular activity" means any optional, noncredit, educational or recreational activity that supplements the education program of the school, whether offered before, during or after regular school hours.

25.

Notwithstanding section 15-341, subsection A, paragraphs 7 and 9, construct school buildings and purchase or lease school sites, without a vote of the school district electors, if the buildings and sites are totally funded from one or more of the following:

(a) Monies in the unrestricted capital outlay fund, except that the estimated cost shall not exceed $250,000 for a district that uses section 15-949.

(b) Monies distributed at the direction of the school facilities oversight board established by section 41-5701.02 or by the school facilities division OF SCHOOL FACILITIES within the department of administration pursuant to title 41, chapter 56.

(c) Monies specifically donated for the purpose of constructing school buildings.

This paragraph does not eliminate the requirement for an election to raise revenues for a capital outlay override pursuant to section 15-481 or a bond election pursuant to section 15-491.

26.

Conduct a background investigation that includes a fingerprint check conducted pursuant to section 41-1750, subsection G for certificated personnel and personnel who are not paid employees of the school district, as a condition of employment.

A school district may release the results of a background check to another school district for employment purposes.

The school district may charge the costs of fingerprint checks to its fingerprinted employee, except that the school district may not charge the costs of fingerprint checks for personnel who are not paid employees of the school district.

- 5 - HB 2180 27.

Unless otherwise prohibited by law, sell advertising as follows:

(a) Advertisements shall be age appropriate and not promote any substance that is illegal for minors such as alcohol, tobacco and drugs or gambling.

Advertisements shall comply with the state sex education policy of abstinence.

(b) Advertising approved by the governing board for the exterior of school buses may appear only on the sides of the bus in the following areas:

(i) The signs shall be below the seat level rub rail and not extend above the bottom of the side windows.

(ii) The signs shall be at least three inches from any required lettering, lamp, wheel well or reflector behind the service door or stop signal arm.

(iii) The signs shall not extend from the body of the bus so as to allow a handhold or present a danger to pedestrians.

(iv) The signs shall not interfere with the operation of any door or window.

(v) The signs shall not be placed on any emergency doors.

(c) The school district shall establish an advertisement fund that is composed of revenues from the sale of advertising.

The monies in an advertisement fund are not subject to reversion.

28.

Assess reasonable damage deposits to pupils in grades seven through twelve for using textbooks, musical instruments, band uniforms or other equipment required for academic courses.

The governing board shall adopt policies on any damage deposits assessed pursuant to this paragraph at a public meeting called for this purpose after providing notice to all parents of pupils in grades seven through twelve in the school district.

Principals of individual schools within the district may waive the damage deposit requirement for any textbook or other item if the payment of the damage deposit would create an economic hardship for the pupil.

The school district shall return the full amount of the damage deposit for any textbook or other item if the pupil returns the textbook or other item in reasonably good condition within the time period prescribed by the governing board.

For the purposes of this paragraph, "in reasonably good condition" means the textbook or other item is in the same or a similar condition as it was when the pupil received it, plus ordinary wear and tear.

29.

Notwithstanding section 15-1105, expend surplus monies in the civic center school fund for maintenance and operations or unrestricted capital outlay if sufficient monies are available in the fund after meeting the needs of programs established pursuant to section 15-1105.

30.

Notwithstanding section 15-1143, spend surplus monies in the community school program fund for maintenance and operations or unrestricted capital outlay if sufficient monies are available in the fund - 6 - HB 2180 after meeting the needs of programs established pursuant to section 15-1142.

31.

Adopt guidelines to standardize the format of the school report cards required by section 15-746 for schools within the district.

32.

Adopt policies that require parental notification when a law enforcement officer interviews a pupil on school grounds.

Policies adopted pursuant to this paragraph shall not impede a peace officer from performing the peace officer's duties.

If the school district governing board adopts a policy that requires parental notification:

(a) The policy may provide reasonable exceptions to the parental notification requirement.

(b) The policy shall set forth whether and under what circumstances a parent may be present when a law enforcement officer interviews the pupil, including reasonable exceptions to the circumstances under which a parent may be present when a law enforcement officer interviews the pupil, and shall specify a reasonable maximum time after a parent is notified that an interview of a pupil by a law enforcement officer may be delayed to allow the parent to be present.

33.

Enter into voluntary partnerships with any party to finance with monies other than school district monies and cooperatively design school facilities that comply with the adequacy standards prescribed in section 41-5711 and the square footage per pupil requirements pursuant to section 41-5741, subsection D, paragraph 3, subdivision (b).

The design plans and location of any such school facility shall be submitted to the school facilities oversight board for approval pursuant to section 41-5741, subsection 0 Q.

If the school facilities oversight board approves the design plans and location of any such school facility, the party in partnership with the school district may cause to be constructed and the district may begin operating the school facility before monies are distributed at the direction of the school facilities oversight board pursuant to section 41-5741.

Monies distributed from the new school facilities fund to a school district in a partnership with another party to finance and design the school facility shall be paid to the school district pursuant to section 41-5741.

The school district shall reimburse the party in partnership with the school district from the monies paid to the school district pursuant to section 41-5741, in accordance with the voluntary partnership agreement.

Before the school facilities oversight board directs the distribution of any monies pursuant to this subsection, the school district shall demonstrate to the school facilities oversight board that the facilities to be funded pursuant to section 41-5741, subsection O Q meet the minimum adequacy standards prescribed in section 41-5711.

If the cost to construct the school facility exceeds the amount that the school district receives from the new school facilities fund, the partnership agreement between the school district and the other party shall specify that, except as otherwise provided by the other party, any - 7 - HB 2180 such excess costs shall be the responsibility of the school district.

The school district governing board shall adopt a resolution in a public meeting that an analysis has been conducted on the prospective effects of the decision to operate a new school with existing monies from the school district's maintenance and operations budget and how this decision may affect other schools in the school district.

If a school district acquires land by donation at an appropriate school site approved by the school facilities oversight board and a school facility is financed and built on the land pursuant to this paragraph, the school facilities oversight board shall direct the distribution of an amount equal to twenty percent of the fair market value of the land that can be used for academic purposes.

The school district shall place the monies in the unrestricted capital outlay fund and increase the unrestricted capital budget limit by the amount of the monies placed in the fund.

Monies distributed under this paragraph shall be distributed from the new school facilities fund pursuant to section 41-5741.

If a school district acquires land by donation at an appropriate school site approved by the school facilities oversight board and a school facility is financed and built on the land pursuant to this paragraph, the school district shall not receive monies for the donation of real property pursuant to section 41-5741, subsection F I.

It is unlawful for:

(a) A county, city or town to require as a condition of any land use approval that a landowner or landowners that entered into a partnership pursuant to this paragraph provide any contribution, donation or gift, other than a site donation, to a school district.

This subdivision only applies to the property in the voluntary partnership agreement pursuant to this paragraph.

(b) A county, city or town to require as a condition of any land use approval that the landowner or landowners located within the geographic boundaries of the school subject to the voluntary partnership pursuant to this paragraph provide any donation or gift to the school district except as provided in the voluntary partnership agreement pursuant to this paragraph.

(c) A community facilities district established pursuant to title 48, chapter 4, article 6 to be used for reimbursement of financing the construction of a school pursuant to this paragraph.

(d) A school district to enter into an agreement pursuant to this paragraph with any party other than a master planned community party.

Any land area consisting of at least three hundred twenty acres that is the subject of a development agreement with a county, city or town entered into pursuant to section 9-500.05 or 11-1101 shall be deemed to be a master planned community.

For the purposes of this subdivision, "master planned community" means a land area consisting of at least three hundred twenty acres, which may be noncontiguous, that is the subject of a zoning ordinance approved by the governing body of the county, city or town in - 8 - HB 2180 which the land is located that establishes the use of the land area as a planned area development or district, planned community development or district, planned unit development or district or other land use category or district that is recognized in the local ordinance of such county, city or town and that specifies the use of such land is for a master planned development.

34.

Enter into an intergovernmental agreement with a presiding judge of the juvenile court to implement a law-related education program as defined in section 15-154.

The presiding judge of the juvenile court may assign juvenile probation officers to participate in a law-related education program in any school district in the county.

The cost of juvenile probation officers who participate in the program implemented pursuant to this paragraph shall be funded by the school district.

35.

Offer to sell outdated learning materials, educational equipment or furnishings at a posted price commensurate with the value of the items to pupils who are currently enrolled in that school district before those materials are offered for public sale.

36.

If the school district is a small school district as defined in section 15-901, and if allowed by federal law, opt out of federal grant opportunities if the governing board determines that the federal requirements impose unduly burdensome reporting requirements.

37.

Prescribe and enforce policies and procedures for the emergency administration of inhalers by trained employees of the school district and nurses who are under contract with the school district pursuant to section 15-158.

38.

Develop policies and procedures to allow principals to budget for or assist with budgeting federal, state and local monies.

39.

Subject to article IX, section 7, constitution of Arizona, the laws pertaining to travel and subsistence, gifts, grants, including federal grants, or devises and policies adopted by the department of education, provide food and beverages at school district events, including official school functions and trainings.

Sec.

2.

Section 41-5702, Arizona Revised Statutes, is amended to read:

41-5702.

Powers and duties;

staffing;

reporting requirements A.

The division shall:

1.

Assess school facilities and equipment deficiencies and approve the distribution of grants as appropriate.

2.

Maintain a database of school facilities to allow for the administration of the new school facilities formula and the building renewal grant fund.

The facilities listed in the database must include all buildings that are owned by school districts.

The division shall ensure that the database is updated on at least an annual basis.

Each school district shall report to the division not later than September 1 of each year information as required by the division to administer the - 9 - HB 2180 building renewal grant fund and by the school facilities oversight board to compute new school facilities formula distributions, including the nature and cost of major repairs, renovations or physical improvements to or replacement of building systems or equipment that were made in the previous year and that were paid for either with local monies or monies provided from the building renewal grant fund.

Each school district shall report any school or school buildings that have been closed, that are vacant or partially used pursuant to section 15-119 and that have been leased to another entity or that operate as a charter school.

The division shall develop guidelines and definitions for the reporting prescribed in this paragraph and may review or audit the information, or both, to confirm the information submitted by a school district.

Notwithstanding any other provision of this chapter, if a school district converts space that is listed in the database maintained pursuant to this paragraph to space that will be used for administrative purposes, the school district is responsible for any costs associated with converting, maintaining and replacing that space.

If a building is significantly upgraded or remodeled, the division shall adjust the age of that school facility in the database as follows:

(a) Determine the building capacity value as follows:

(i) Multiply the student capacity of the building by the per pupil square foot capacity established by section 41-5741.

(ii) Multiply the product determined in item (i) of this subdivision by the cost per square foot established by section 41-5741.

(b) Divide the cost of the renovation by the building capacity value determined in subdivision (a) of this paragraph.

(c) Multiply the quotient determined in subdivision (b) of this paragraph by the currently listed age of the building in the database.

(d) Subtract the product determined in subdivision (c) of this paragraph from the currently listed age of the building in the database, rounded to the nearest whole number.

If the result is a negative number, use zero.

3.

Inspect, contract with a third party to inspect or certify school district self-inspections of school buildings at least once every five years to ensure compliance with the building adequacy standards prescribed in section 41-5711, the accuracy of the reporting of vacant and partially used buildings pursuant to this subsection and routine preventive maintenance guidelines as prescribed in this section with respect to constructing new buildings and maintaining existing buildings.

The division shall randomly select twenty school districts every thirty months and provide for them to be inspected pursuant to this paragraph.

4.

Develop prototypical elementary and high school designs.

The division shall review the design differences between the schools with the highest academic productivity scores and the schools with the lowest academic productivity scores.

The division shall also review the results - 10 - HB 2180 of a valid and reliable survey of parent quality rating in the highest performing schools and the lowest performing schools in this state.

The survey of parent quality rating shall be administered by the department of education.

The division shall consider the design elements of the schools with the highest academic productivity scores and parent quality ratings in the development of elementary and high school designs.

The division shall develop separate school designs for elementary, middle and high schools with varying pupil capacities.

5.

Develop application forms, reporting forms and procedures to carry out the requirements of this article, including developing and implementing policies and procedures to:

(a) Ensure that the division and the school facilities oversight board, as applicable, notify school districts in a uniform manner of the services and funding available for school districts from the board or the division for facility construction, renovation and repair projects.

The policies and procedures shall require the division and the board to provide at least one annual communication to school districts in a manner prescribed by the division and shall require each school district to develop and maintain a list of persons who are responsible for facilities management at that school district.

(b) Establish a project eligibility assessment for all projects submitted for building renewal grant funding or emergency deficiencies correction funding, including establishing standardized criteria for project eligibility.

Before the division formally approves a project, the staff of the division may review the costs and scope of the proposed project with persons and entities that have submitted bids on the project.

(c) Ensure that the division and the school facilities oversight board maintain standardized documentation of all projects submitted to the board and the division for consideration to receive services or a financial award from the board or the division.

The board and the division shall maintain standardized documentation of any project awarded monies by the board or the division, including records of payments to school districts in a manner prescribed by the division.

The standardized documentation shall include the following as part of the eligibility determination criteria:

(i) Whether the problem that the proposed project intends to address caused the building or facility to fall below the minimum school facility adequacy guidelines prescribed in section 41-5711.

(ii) Whether the school district performed the routine preventive maintenance required by section 41-5731 on the building or facility.

(d) Require a school district to submit contact information for each proposed project, including the name, email address and telephone number of persons who are responsible for facilities management at the school district.

- 11 - HB 2180 (e) Require a school district to provide justification for each proposed project, including all of the following:

(i) The school district's use or planned use of the facility.

(ii) A detailed description of the problem and the school district's recommended solution.

(iii) Any completed professional study regarding the proposed project.

(iv) Any citation or report from government entities.

(v) The estimated cost of the proposed project, with documentation.

(vi) The project category.

(vii) A description of any local funding that will be used for the proposed project.

(viii) Documentation on associated insurance coverage, if applicable.

(f) Require that an initial application not be considered complete until all necessary information is submitted.

(g) Allow a school district to submit an incomplete application and request technical assistance from the staff of the board if the school district is unable to provide sufficient information in the initial application.

(h) If applicable, require that a complete application be received by the board at least fifteen business days before the next regularly scheduled board meeting in order for the application to be considered at that meeting.

An incomplete application may be considered at that meeting if both the staff of the board and the superintendent of the school district deem the project critical.

(i) Allow the staff of the board or the division, as applicable, to notify a school district in writing before review by the board or division that the proposed project does not meet eligibility criteria prescribed in this chapter.

The written notification shall include documentation to support the determination that the proposed project does not meet the eligibility criteria prescribed in this chapter.

The school district may directly appeal the determination of ineligibility to the director of the division.

The school district may directly appeal the director's determination of ineligibility to the board.

(j) Prohibit the staff of the board or division from requesting that a school district withdraw a project application from review by the board or division if the initial review determines that the proposed project may be ineligible for monies pursuant to this chapter.

6.

Submit electronically an annual report on or before December 15 to the speaker of the house of representatives, the president of the senate, the superintendent of public instruction, the secretary of state and the governor that includes the following information:

(a) A detailed description of the amount of monies distributed by the division under this chapter in the previous fiscal year.

- 12 - HB 2180 (b) A list of each capital project that received monies from the division under this chapter during the previous fiscal year, a brief description of each project that was funded and a summary of the division's reasons for distributing monies for the project.

(c) A summary of the findings and conclusions of the building maintenance inspections conducted pursuant to this article during the previous fiscal year.

(d) A summary of the findings of common design elements and characteristics of the highest performing schools and the lowest performing schools based on academic productivity, including the results of the parent quality rating survey.

For the purposes of this subdivision, "academic productivity" means academic year advancement per calendar year as measured with student-level data using the statewide nationally standardized norm-referenced achievement test.

7.

On or before December 1 of each year, report electronically to the joint committee on capital review the amounts necessary to fulfill the requirements of section 41-5721 for the following three fiscal years.

In developing the amounts necessary for this report, the division shall use the most recent average daily membership data available.

On request from the division, the department of education shall make available the most recent average daily membership data for use in calculating the amounts necessary to fulfill the requirements of section 41-5721 for the following three fiscal years.

The division shall provide copies of the report to the president of the senate, the speaker of the house of representatives and the governor.

8.

On or before June 15 of each year, submit electronically detailed information regarding demographic assumptions and a proposed construction schedule for individual projects approved in the current fiscal year and expected project approvals for the upcoming fiscal year to the joint committee on capital review for its review.

A copy of the report shall also be submitted electronically to the governor's office of strategic planning and budgeting.

The joint legislative budget committee staff, the governor's office of strategic planning and budgeting staff and the division staff shall agree on the format of the report.

9.

Every two years, provide school districts with information on improving and maintaining the indoor environmental quality in school buildings.

10.

Adopt rules regarding the validation of adjacent ways projects pursuant to paragraph 11 of this subsection.

11.

Validate proposed adjacent ways projects that are submitted by school districts as prescribed in section 15-995 pursuant to rules adopted by the division under paragraph 10 of this subsection.

12.

Submit a monthly report to the school facilities oversight board that details each adjacent ways project validated pursuant to paragraph 11 of this subsection.

- 13 - HB 2180 13.

Brief the joint committee on capital review at least once each year regarding the use of monies from all of the following:

(a) The emergency deficiencies correction fund established by section 41-5721.

(b) The building renewal grant fund established by section 41-5731.

(c) The new school facilities fund established by section 41-5741.

B.

The school facilities oversight board or the division may contract for the following services in compliance with the procurement practices prescribed in chapter 23 of this title:

1.

Private services.

2.

Construction project management services.

3.

Assessments for school buildings to determine if the buildings have outlived their useful life pursuant to section 41-5741, subsection G or have been condemned.

4.

3.

Services related to land acquisition and development of a school site.

C.

The school facilities oversight board shall:

1.

Review and approve student population projections submitted by school districts to determine to what extent school districts are entitled to monies to construct new facilities pursuant to section 41-5741.

The board shall make a final determination within five months after receiving an application from a school district for monies from the new school facilities fund.

2.

Certify that plans for new school facilities meet the building adequacy standards prescribed in section 41-5711.

3.

Review and approve or reject requests submitted by school districts to take actions pursuant to section 15-341, subsection G.

4.

On or before December 15 of each year, electronically submit a report to the speaker of the house of representatives, the president of the senate, the superintendent of public instruction, the secretary of state and the governor that includes the following information:

(a) A detailed description of the amount of monies the board distributed under this chapter in the previous fiscal year.

(b) A list of each capital project that received monies from the board under this chapter during the previous fiscal year, a brief description of each project that was funded and a summary of the board's reasons for distributing monies for the project.

(c) A summary of the findings and conclusions of the building maintenance inspections conducted pursuant to this article during the previous fiscal year.

5.

On or before December 1 of each year, electronically report to the joint committee on capital review the amounts necessary to fulfill the requirements of section 41-5741 for the following three fiscal years.

In developing the amounts necessary for this report, the board shall use the most recent average daily membership data available.

On request from the - 14 - HB 2180 board, the department of education shall make available the most recent average daily membership data for use in calculating the amounts necessary to fulfill the requirements of section 41-5741 for the following three fiscal years.

The board shall provide copies of the report to the president of the senate, the speaker of the house of representatives and the governor.

6.

Adopt minimum school facility adequacy guidelines to provide the minimum quality and quantity of school buildings and the facilities and equipment necessary and appropriate to enable pupils to achieve the educational goals of the Arizona state schools for the deaf and the blind.

The board shall establish minimum school facility adequacy guidelines applicable to the Arizona state schools for the deaf and the blind.

7.

On or before June 15 of each year, electronically submit to the joint committee on capital review for its review detailed information regarding demographic assumptions, a proposed construction schedule and new school construction cost estimates for individual projects approved in the current fiscal year and expected project approvals for the upcoming fiscal year.

A copy of the report shall also be submitted electronically to the governor's office of strategic planning and budgeting.

The joint legislative budget committee staff, the governor's office of strategic planning and budgeting staff and the board staff shall agree on the format of the report.

8.

On or before December 31 of each year, report to the joint legislative budget committee on all class B bond approvals by school districts in that year.

Each school district shall report to the board on or before December 1 of each year information required by the board for the report prescribed in this paragraph.

D.

The director of the division shall serve as the director of the school facilities oversight board.

The director may hire and fire necessary staff subject to chapter 4, article 4 of this title and as approved by the legislature in the budget.

The staff of the school facilities oversight board is exempt from chapter 4, articles 5 and 6 of this title.

The director:

1.

Shall analyze applications for monies submitted to the board and to the division by school districts.

2.

Shall assist the board and the division in developing forms and procedures for distributing and reviewing applications and distributing monies to school districts.

3.

May review or audit, or both, the expenditure of monies by a school district for deficiencies corrections and new school facilities.

4.

Shall assist the board and the division in preparing the board's and division's annual reports.

5.

Shall research and provide reports on issues of general interest to the board and the division.

- 15 - HB 2180 6.

May aid school districts in developing reasonable and cost-effective school designs in order to avoid statewide duplicated efforts and unwarranted expenditures in the area of school design.

7.

May assist school districts in facilitating the development of multijurisdictional facilities.

8.

Shall assist the board and the division in any other appropriate matter or method as directed by the division and the members of the board.

9.

Shall establish procedures to ensure compliance with the notice and hearing requirements prescribed in section 15-905.

The notice and hearing procedures adopted by the board shall include the requirement, with respect to the board's consideration of any application filed after July 1, 2001 or after December 31 of the year in which the property becomes territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461 for monies to fund the construction of new school facilities proposed to be located in territory in the vicinity of a military airport or ancillary military facility, that the military airport receive notification of the application by first class mail at least thirty days before any hearing concerning the application.

10.

May expedite any request for monies in which the local match was not obtained for a project that received preliminary approval by the state board for school capital facilities.

11.

Shall expedite any request for monies in which the school district governing board submits an application that shows an immediate need for a new school facility.

12.

Shall determine administrative completeness within one month after receiving an application from a school district for monies from the new school facilities fund.

13.

Shall provide technical support to school districts as requested by school districts in connection with constructing new school facilities and maintaining existing school facilities and may contract directly with construction project managers pursuant to subsection B of this section.

This paragraph does not restrict a school district from contracting with a construction project manager using district or state resources.

E.

When appropriate, the board and the division shall review and use the statewide school facilities inventory and needs assessment conducted by the joint committee on capital review and issued in July, 1995.

F.

The school facilities oversight board shall contract with one or more private building inspectors to complete an initial assessment of school facilities and equipment and shall inspect each school building in this state at least once every five years to ensure compliance with section 41-5711.

A copy of the inspection report, together with any - 16 - HB 2180 recommendations for building maintenance, shall be provided to the school facilities oversight board and the governing board of the school district.

G.

The division or the board, as applicable, may consider appropriate combinations of facilities or uses in assessing and curing deficiencies pursuant to subsection A, paragraph 1 of this section and in certifying plans for new school facilities pursuant to subsection C, paragraph 2 of this section.

H.

The board shall not award any monies to fund new facilities that are financed by class A bonds that are issued by the school district.

I.

The board or the division shall not distribute monies to a school district for replacing or repairing facilities if the costs associated with the replacement or repair are covered by insurance or a performance or payment bond.

J.

The division may contract for construction services and materials that are necessary to correct existing deficiencies in school district facilities.

The division may procure the construction services necessary pursuant to this subsection by any method, including construction-manager-at-risk, design-build, design-bid-build or job-order-contracting as provided by chapter 23 of this title.

The construction planning and services performed pursuant to this subsection are exempt from section 41-791.01.

K.

The division may enter into agreements with school districts to allow division staff and contractors access to school property for the purposes of performing the construction services necessary pursuant to subsection J of this section.

L.

Each school district shall develop routine preventive maintenance guidelines for its facilities.

The guidelines shall include plumbing systems, electrical systems, heating, ventilation and air conditioning systems, special equipment and other systems and for roofing systems shall recommend visual inspections performed by district staff for signs of structural stress and weakness.

The guidelines shall be submitted to the division for review and approval.

If on inspection by the division it is determined that a school district facility was inadequately maintained pursuant to the school district's routine preventive maintenance guidelines, the school district shall return the building to compliance with the school district's routine preventive maintenance guidelines.

M.

The board and the division may temporarily transfer monies, or, if applicable, THE BOARD MAY direct the division to transfer monies, between the emergency deficiencies correction fund established by section 41-5721 and the new school facilities fund established by section 41-5741 if all of the following conditions are met:

1.

The transfer is necessary to avoid a temporary shortfall in the fund into which the monies are transferred.

- 17 - HB 2180 2.

The transferred monies are restored to the fund where the monies originated as soon as practicable after the temporary shortfall in the other fund has been addressed.

3.

The board and the division report to the joint committee on capital review the amount of and the reason for any monies transferred.

N.

After notifying each school district, and if a written objection from the school district is not received by the board or the division within thirty days after the notification, the board or the division may access public utility company records of power, water, natural gas, telephone and broadband usage to assemble consistent and accurate data on utility consumption at school facilities to determine the effectiveness of facility design, operation and maintenance measures intended to reduce energy and water consumption and costs.

Any public utility that provides service to a school district in this state shall provide the data requested by the board or the division pursuant to this subsection.

O.

The division or the board shall not require a common school district that provides instruction to pupils in grade nine to obtain approval from the division or the board to reconfigure its school facilities.

A common school district that provides instruction to pupils in grade nine is not entitled to additional monies from the division or the board for facilities to educate pupils in grade nine.

P.

A school district may appeal the denial of a request for monies pursuant to this chapter or any other appealable agency action by the division or the board pursuant to chapter 6, article 10 of this title.

For the purposes of this subsection, "appealable agency action" has the same meaning prescribed in section 41-1092.

Sec.

3.

Section 41-5711, Arizona Revised Statutes, is amended to read:

41-5711.

Minimum school facility adequacy requirements;

definition A.

The board, as determined and prescribed in this chapter, shall provide funding to school districts for new construction as the number of pupils in the district fills the existing school facilities and requires more pupil space.

B.

School buildings in a school district are adequate if all of the following requirements are met:

1.

The buildings contain sufficient and appropriate space and equipment that comply with the minimum school facility adequacy guidelines established pursuant to subsection F of this section.

The state shall not fund facilities for elective courses that require the school district facilities to exceed minimum school facility adequacy requirements.

The board shall determine whether a school building meets the requirements of this paragraph by analyzing the total square footage that is available for each pupil in conjunction with the need for specialized spaces and equipment.

- 18 - HB 2180 2.

The buildings are in compliance with federal, state and local building and fire codes and laws that apply to the particular building, except that a school with an aggregate area of less than five thousand square feet is subject to permitting and inspection by a local fire marshal and is only subject to regulation or inspection by the office of the state fire marshal if the county, city or town in which the school is located does not employ a local fire marshal.

An existing school building is not required to comply with current requirements for new buildings unless this compliance is specifically mandated by law or by the building or fire code of the jurisdiction where the building is located.

3.

The building systems, including roofs, plumbing, telephone systems, electrical systems, heating systems and cooling systems, are in working order and are capable of being properly maintained.

4.

The buildings are structurally sound.

C.

The standards that shall be used by the board to determine whether a school building meets the minimum adequate gross square footage requirements are as follows:

1.

For a school district that provides instruction to pupils in programs for preschool children with disabilities, kindergarten programs and grades one through six, eighty square feet per pupil in programs for preschool children with disabilities, kindergarten programs and grades one through six.

2.

For a school district that provides instruction to up to eight hundred pupils in grades seven and eight, eighty-four square feet per pupil in grades seven and eight.

3.

For a school district that provides instruction to more than eight hundred pupils in grades seven and eight, eighty square feet per pupil in grades seven and eight or sixty-seven thousand two hundred square feet, whichever is more.

4.

For a school district that provides instruction to up to four hundred pupils in grades nine through twelve, one hundred twenty-five square feet per pupil in grades nine through twelve.

5.

For a school district that provides instruction to more than four hundred and up to one thousand pupils in grades nine through twelve, one hundred twenty square feet per pupil in grades nine through twelve or fifty thousand square feet, whichever is more.

6.

For a school district that provides instruction to more than one thousand and up to one thousand eight hundred pupils in grades nine through twelve, one hundred twelve square feet per pupil in grades nine through twelve or one hundred twenty thousand square feet, whichever is more.

7.

For a school district that provides instruction to more than one thousand eight hundred pupils in grades nine through twelve, ninety-four square feet per pupil in grades nine through twelve or two hundred one thousand six hundred square feet, whichever is more.

- 19 - HB 2180 D.

The board may modify the square footage requirements prescribed in subsection C of this section or modify the amount of monies awarded to cure the square footage deficiency pursuant to this section for particular school districts based on extraordinary circumstances for any of the following considerations:

1.

The number of pupils served by the school district.

2.

Geographic factors.

3.

Grade configurations other than those prescribed in subsection C of this section.

E.

In measuring the square footage per pupil requirements of subsection C of this section, the board shall:

1.

Use the projected one hundredth day average daily membership for the current school year.

2.

For each school, use the lesser of either:

(a) Total gross square footage.

(b) Student capacity multiplied by the appropriate square footage per pupil prescribed by subsection C of this section.

3.

Consider the total space available in all schools in use in the school district, except that the board shall allow an exclusion of the square footage for certain schools and the pupils within the schools' boundaries if the school district demonstrates to the board's satisfaction unusual or excessive busing of pupils or unusual attendance boundary changes between schools.

4.

Compute the gross square footage of all buildings by measuring from exterior wall to exterior wall.

Square footage used solely for district administration, storage of vehicles and other nonacademic purposes shall be excluded from the net square footage.

5.

Include all portable and modular buildings.

6.

Include in the net square footage new construction funded wholly or partially by the board based on the square footage funded by the board.

If the new construction is to exceed the square footage funded by the board, the excess square footage shall not be included in the net square footage if any of the following applies:

(a) The excess square footage was constructed before July 1, 2002 or funded by a class B bond, impact aid revenue bond or capital outlay override approved by the voters after August 1, 1998 and before June 30, 2002 or funded from unrestricted capital outlay expended before June 30, 2002.

(b) The excess square footage of new school facilities does not exceed twenty-five percent of the minimum square footage requirements pursuant to subsection C of this section.

(c) The excess square footage of expansions to school facilities does not exceed twenty-five percent of the minimum square footage requirements pursuant to subsection C of this section.

- 20 - HB 2180 7.

Exclude square footage built under a developer agreement according to section 15-342, paragraph 33 until the board provides funding for the square footage under section 41-5741, subsection O Q.

8.

Include square footage that a school district has leased to another entity.

F.

The board shall adopt rules establishing minimum school facility adequacy guidelines.

The guidelines shall provide the minimum quality and quantity of school buildings and facilities and equipment necessary and appropriate to enable pupils to achieve the academic standards pursuant to section 15-203, subsection A, paragraphs 12 and 13 and sections 15-701 and 15-701.01.

At a minimum, the board shall address all of the following in developing these guidelines:

1.

School sites.

2.

Classrooms.

3.

Libraries and media centers, or both.

4.

Cafeterias.

5.

Auditoriums, multipurpose rooms or other multiuse space.

6.

Technology.

7.

Transportation.

8.

Facilities for science, arts and physical education.

9.

Other facilities and equipment that are necessary and appropriate to achieve the academic standards prescribed pursuant to section 15-203, subsection A, paragraphs 12 and 13 and sections 15-701 and 15-701.01.

10.

Appropriate combinations of facilities or uses listed in this section.

G.

The board may convene subcommittees as needed on specific issues, including school facility safety standards.

Notwithstanding any other law, a school district that receives grant monies from the building renewal grant fund established by section 41-5731 or monies from the new school facilities fund established by section 41-5741 shall consider school facility safety standards when completing approved projects or constructing new school facilities with monies received from those funds.

H.

The board shall consider the facilities and equipment of the schools with the highest academic productivity scores, as prescribed in section 41-5702, subsection A, paragraph 6, subdivision (d), and the highest parent quality ratings in the establishment of the guidelines.

I.

The board may consider appropriate combinations of facilities or uses in assessing and curing existing deficiencies pursuant to section 41-5702, subsection A, paragraph 1 and in certifying plans for new school facilities pursuant to section 41-5702, subsection C, paragraph 2.

J.

If the board makes any changes to the minimum adequacy requirements prescribed in this section, the board shall provide a fiscal impact statement of the effect of the proposed changes to the joint committee on capital review for review.

- 21 - HB 2180 K.

For the purposes of this section, "student capacity" means the capacity adjusted to include any additions to or deletions of space, including modular or portable buildings at the school.

The board shall determine the student capacity for each school in conjunction with each school district, recognizing each school's allocation of space as of July 1, 1998, to achieve the academic standards prescribed pursuant to section 15-203, subsection A, paragraphs 12 and 13 and sections 15-701 and 15-701.01.

Sec.

4.

Section 41-5731, Arizona Revised Statutes, is amended to read:

41-5731.

Building renewal grant fund;

rules;

definitions A.

The building renewal grant fund is established consisting of monies appropriated to the fund by the legislature.

The division shall administer the fund and distribute monies to school districts for the purpose of maintaining the adequacy of existing school facilities EXCEPT AS PROVIDED IN SECTION 41-5741.

Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B.

The division shall distribute monies from the building renewal grant fund based on grant requests from school districts to fund primary building renewal projects.

Project requests shall be prioritized by the division, with priority given to school districts that have provided routine preventive maintenance on the facility.

A school district must submit a preventive maintenance plan to the division to be eligible to receive monies from the building renewal grant fund.

The division shall approve only projects that will be completed within twelve months, unless similar projects on average take longer to complete.

A grant issued under this section expires twelve months after the grant request is approved unless the division issues an extension, except that if the division approves a project and determines that similar projects on average take longer than twelve months to complete, the division shall extend the grant expiration date based on the average amount of time that similar projects take to complete.