HB2253 - 451R

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          House Engrossed
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  State of Arizona
  House of Representatives
  Forty-fifth Legislature
  First Regular Session
  2001
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     HOUSE BILL 2253
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AN ACT

AMENDING SECTIONS 15-342, 15-1023.01, 15-2002, 15-2021, 15-2081, 15-2085, 41-2632 AND 41-3008.19, ARIZONA REVISED STATUTES; AMENDING LAWS 1998, FIFTH SPECIAL SESSION, CHAPTER 1, SECTION 55, AS AMENDED BY LAWS 1999, CHAPTER 299, SECTION 39 AND LAWS 2000, CHAPTER 163, SECTION 2; AMENDING LAWS 1998, FIFTH SPECIAL SESSION, CHAPTER 1, SECTION 60, AS AMENDED BY LAWS 2000, CHAPTER 163, SECTION 3; REPEALING LAWS 2000, FIFTH SPECIAL SESSION, CHAPTER 1, SECTION 59; RELATING TO THE SCHOOL FACILITIES BOARD.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 15-342, Arizona Revised Statutes, is amended to read:

15-342. Discretionary powers

The governing board may:

1. Expel pupils for misconduct.

2. Exclude from grades one through eight children under six years of age.

3. Make such separation of groups of pupils as it deems advisable.

4. Maintain such special schools during vacation as deemed necessary for the benefit of the pupils of the school district.

5. Permit a superintendent or principal or representatives of the superintendent or principal to travel for a school purpose, as determined by a majority vote of the board. The board may permit members and members-elect of the board to travel within or without the school district for a school purpose and receive reimbursement. Any expenditure for travel and subsistence pursuant to this paragraph shall be as provided in title 38, chapter 4, article 2. The designated post of duty referred to in section 38-621 shall be construed, for school district governing board members, to be the member's actual place of residence, as opposed to the school district office or the school district boundaries. Such expenditures shall be a charge against the budgeted school district funds. The governing board of a school district shall prescribe procedures and amounts for reimbursement of lodging and subsistence expenses. Reimbursement amounts shall not exceed the maximum amounts established pursuant to section 38-624, subsection C.

6. Construct or provide in rural districts housing facilities for teachers and other school employees which the board determines are necessary for the operation of the school.

7. Sell or lease to the state, a county, a city or a tribal government agency, any school property required for a public purpose, provided the sale or lease of the property will not affect the normal operations of a school within the school district.

8. Annually budget and expend funds for membership in an association of school districts within this state.

9. Enter into leases or lease-purchase agreements for school buildings or grounds, or both, as lessor or as lessee, for periods of less than five years subject to voter approval for construction of school buildings as prescribed in section 15-341, subsection A, paragraph 8.

10. Subject to chapter 16 of this title, sell school sites or enter into leases or lease-purchase agreements for school buildings and grounds, as lessor or as lessee, for a period of five years or more, but not to exceed ninety-nine years, if authorized by a vote of the school district electors in an election called by the governing board as provided in section 15-491, except that authorization by the school district electors in an election is not required if ~~either~~ ONE OF THE FOLLOWING REQUIREMENTS IS MET:

(a) The market value of the school property is less than fifty thousand dollars.

(B) THE BUILDINGS AND SITES ARE COMPLETELY FUNDED WITH MONIES DISTRIBUTED BY THE SCHOOL FACILITIES BOARD.

(C) THE TRANSACTION INVOLVES THE SALE OF IMPROVED OR UNIMPROVED PROPERTY PURSUANT TO AN AGREEMENT WITH THE SCHOOL FACILITIES BOARD IN WHICH THE SCHOOL DISTRICT AGREES TO SELL THE IMPROVED OR UNIMPROVED PROPERTY AND TRANSFER THE PROCEEDS OF THE SALE TO THE SCHOOL FACILITIES BOARD IN EXCHANGE FOR MONIES FROM THE SCHOOL FACILITIES BOARD FOR THE ACQUISITION OF A MORE SUITABLE SCHOOL SITE. FOR A SALE OF PROPERTY ACQUIRED BY A SCHOOL DISTRICT PRIOR TO JULY 9, 1998, A SCHOOL DISTRICT SHALL TRANSFER TO THE SCHOOL FACILITIES 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 FUNDS TO THE SCHOOL FACILITIES BOARD, A SCHOOL DISTRICT SHALL ONLY USE THOSE REMAINING PROCEEDS FOR FUTURE LAND PURCHASES APPROVED BY THE SCHOOL FACILITIES BOARD, OR FOR CAPITAL IMPROVEMENTS NOT FUNDED BY THE SCHOOL FACILITIES BOARD FOR ANY EXISTING OR FUTURE FACILITY.

~~(b)~~ (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, provided that 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 towards payment of 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 the provisions of 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 chapter 16 of this title.

(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.

14. Include in the curricula which it prescribes for high schools in the school district vocational and technological education programs and vocational and technological 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 vocational and technological education as provided in section 15-789.

15. Suspend a teacher or administrator from his duties without pay for a period of time of not to exceed ten school days, if the board determines that suspension is warranted pursuant to section 15-341, subsection A, paragraphs 23 and 24.

16. Dedicate school property within an incorporated city or town to such 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 such city, town or county, there will be conferred upon the school district privileges and benefits which 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 to nonprofit community organizations where the governing board determines that the anticipated cost of selling the learning materials equals or exceeds the estimated market value of the materials.

19. Prescribe policies for the assessment of 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 educational 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, where 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 if the governing board determines that the exchange is necessary to protect the health, safety or welfare of pupils or when 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.

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 no fees shall 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 no fees shall 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 which supplements the education program of the school, whether offered before, during or after regular school hours.

25. Notwithstanding section 15-341, subsection A, paragraphs 8 and 10, 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 two hundred fifty thousand dollars for a district that utilizes the provisions of section 15-949.

(b) Monies distributed from the school facilities board established by section 15-2001.

Nothing in this paragraph shall be construed to 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.

27. Sell advertising space on the exterior of school buses as follows:

(a) Advertisements shall be age appropriate and not contain promotion of 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 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) Establish a school bus advertisement fund that is comprised of revenues from the sale of advertising space on school buses. The monies in a school bus advertisement fund are not subject to reversion and shall be used for the following purposes:

(i) To comply with the energy conservation measures prescribed in section 15-349 in school districts that are in area A as defined in section 49-541, and any remaining monies shall be used to purchase alternative fuel support vehicles and any other pupil related costs as determined by the governing board.

(ii) For any pupil related costs as determined by the governing board in school districts not subject to the provisions of item (i) of this subdivision.

28. Assess reasonable damage deposits to pupils in grades seven through twelve for the use of 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.

Sec. 2. Section 15-1023.01, Arizona Revised Statutes, is amended to read:

15-1023.01. Municipal property corporation financing prohibited; definition

A. Except as provided in subsection C, a school district shall not directly or indirectly pledge its full faith and credit nor incur any direct or indirect obligation of any kind against or pay school district revenues to a municipal property corporation or a special district under title 48 as a means of financing the acquisition or construction of school capital facilities.

B. This section does not apply to any valid obligation initially incurred by a school district on or before December 31, 1998.

C. A school district may pledge school district revenues to a municipal property corporation or a special district under title 48 for the purpose of constructing teacher housing facilities OR FOR ANY PROJECT FINANCED WITH A LOAN FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE.

D. For purposes of this section, "municipal property corporation" means a corporation organized by or at the direction of a city, town or school district to construct and own a capital facility that the school district pledges to lease or lease-purchase and finance with school district revenues.

Sec. 3. Section 15-2002, Arizona Revised Statutes, is amended to read:

15-2002. Powers and duties; executive director; staffing; report

A. The school facilities board shall:

1. Make assessments of school facilities and equipment deficiencies pursuant to section 15-2021 and approve the distribution of grants as appropriate.

2. Develop a ~~data base~~ DATABASE for administering the building renewal formula prescribed in section 15-2031 and administer the distribution of monies to school districts for building renewal.

3. Inspect school buildings at least once every five years to ensure compliance with the building adequacy standards prescribed in section 15-2011 with respect to construction of new buildings and maintenance of existing buildings.

4. 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 15-2041. The board shall make a final determination within six months of the receipt of an application by a school district for monies from the new school facilities fund.

5. Certify that plans for new school facilities meet the building adequacy standards prescribed in section 15-2011.

6. Develop prototypical elementary and high school designs. The board shall review the design differences between the schools with the highest academic productivity scores and the schools with the lowest academic productivity scores. The board shall also review the results 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 board 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 board shall develop separate school designs for elementary, middle and high schools with varying pupil capacities.

7. Develop application forms, reporting forms and procedures to carry out the requirements of this article.

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

9. Submit an annual report by December 15 to the speaker of the house of representatives, the president of the senate, the superintendent of public instruction, the director of the Arizona state library, archives and public records and the governor that includes the following information:

(a) A detailed description of the amount of monies distributed by the school facilities board in the previous fiscal year.

(b) A list of each capital project that received monies from the school facilities board during the previous fiscal year, a brief description of each project that was funded and a summary of the board's reasons for the distribution of 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 paragraph, "academic productivity" means academic year advancement per calendar year as measured with student-level data using the statewide nationally standardized norm-referenced achievement test.

10. By December 1 of each even-numbered year, report to the joint committee on capital review the estimated amounts necessary to fulfill the requirements of sections 15-2021, 15-2031 and 15-2041 for the following two fiscal years. By December 1 of each odd-numbered year, the board shall provide to the joint committee on capital review an update of the estimated amounts necessary to fulfill the requirements of sections 15-2021, 15-2031 and 15-2041 for the following fiscal year. No later than January 1 of each year, the board shall instruct the state treasurer as to the amounts under the transaction privilege tax to be credited in equal quarterly installments for the following state fiscal year. The board shall provide copies of both reports to the president of the senate, the speaker of the house of representatives and the governor.

11. 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 school facilities board shall establish minimum school facility adequacy guidelines applicable to the Arizona state schools for the deaf and the blind by December 31, 2000.

B. The school facilities board may contract for private services in compliance with the procurement practices prescribed in title 41, chapter 23.

C. The governor shall appoint an executive director of the school facilities board pursuant to section 38-211. The executive director is eligible to receive compensation as determined pursuant to section 38-611 and may hire and fire necessary staff as approved by the legislature in the budget. The executive director shall have demonstrated competency in school finance, facilities design or facilities management, either in private business or government service. The executive director serves at the pleasure of the governor. The staff of the school facilities board is exempt from title 41, chapter 4, articles 5 and 6. The executive director:

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

2. Shall assist the board in developing forms and procedures for the distribution and review of applications and the distribution of monies to school districts.

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

4. Shall assist the board in the preparation of the board's annual report.

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

6. May aid school districts in the development of 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 in any other appropriate matter or method as directed by the members of the board.

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

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

12. Shall make a determination as to administrative completion within one month after the receipt of an application by 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 the construction of new school facilities and the maintenance of existing school facilities.

D. When appropriate, the school facilities board 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.

E. The school facilities board shall contract with one or more private building inspectors to complete an initial assessment of school facilities and equipment provided in section 15-2021 and shall inspect each school building in this state at least once every five years to ensure compliance with section 15-2011. A copy of the inspection report, together with any recommendations for building maintenance, shall be provided to the school facilities board and the governing board of the school district.

F. The school facilities board may consider appropriate combinations of facilities or uses in making assessments of and curing deficiencies pursuant to subsection A, paragraph 1 of this section and in certifying plans for new school facilities pursuant to subsection A, paragraph 5 of this section.

G. 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.

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

I. THE BOARD MAY CONTRACT FOR CONSTRUCTION SERVICES AND MATERIALS THAT ARE NECESSARY TO CORRECT EXISTING DEFICIENCIES IN SCHOOL DISTRICT FACILITIES AS DETERMINED PURSUANT TO SECTION 15-2021. THE BOARD 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 TITLE 41, CHAPTER 23. THE CONSTRUCTION PLANNING AND SERVICES PERFORMED PURSUANT TO THIS SUBSECTION ARE EXEMPT FROM THE PROVISIONS OF SECTION 41-791.01.

J. THE SCHOOL FACILITIES BOARD MAY ENTER INTO AGREEMENTS WITH SCHOOL DISTRICTS TO ALLOW SCHOOL FACILITIES BOARD STAFF AND CONTRACTORS ACCESS TO SCHOOL PROPERTY FOR THE PURPOSES OF PERFORMING THE CONSTRUCTION SERVICES NECESSARY PURSUANT TO SUBSECTION I OF THIS SECTION.

Sec. 4. Section 15-2021, Arizona Revised Statutes, is amended to read:

15-2021. Deficiencies correction fund

A. A deficiencies correction fund is established consisting of monies appropriated by the legislature and monies credited to the fund pursuant to section 42-5030.01. The school facilities board shall administer the fund and distribute monies to school districts AND PAY CONTRACTORS for the purpose of correcting existing deficiencies. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. School districts are eligible for monies from the deficiencies correction fund for either of the following purposes:

1. To correct any square footage deficiency pursuant to section 15-2011. School districts shall submit a summary notice on a form prescribed by the school facilities board that the school district believes it has a square footage deficiency pursuant to section 15-2011, subsection C to the school facilities board by December 1, 1998. If the school district exceeds the standard by ten per cent or more, the school district may be required to pay for the cost of an on-site space assessment by the school facilities board. By June 30, 1999, the school facilities board shall assess all alleged square footage deficiencies from the school district notices.

2. To correct quality deficiencies based on the district's inability to comply with the minimum school facility adequacy requirements established in and pursuant to section 15-2011. This state shall not correct quality deficiencies pursuant to this paragraph for elective courses that require the school district facilities to exceed building adequacy standards. School districts shall submit a summary notice on a form prescribed by the school facilities board that the school district has a quality deficiency need to the school facilities board by August 1, 1999.

C. The school facilities board shall calculate the amount of distribution for square footage deficiencies based on the square footage prescribed in section 15-2011, subsection C and the cost per square foot based on the amounts prescribed in section 15-2041, subsection D, paragraph 3, subdivision (c), adjusted as needed to bring the school district into compliance with the minimum school facility adequacy requirements established in and pursuant to section 15-2011.

D. The school facilities board may distribute monies for new construction to a school district if the board determines after its assessment that the new construction is more cost-effective than correcting the deficiencies in the existing school building or buildings.

E. The school facilities board shall distribute monies ~~to school districts~~ from the deficiencies correction fund TO SCHOOL DISTRICTS AND PAY CONTRACTORS FOR THE PURPOSE OF CORRECTING EXISTING DEFICIENCIES in an amount approved by the board. The school facilities board shall review and award monies to correct deficiencies pursuant to this section by June 30, 2001 and shall ensure that school districts correct deficiencies pursuant to this section by June 30, 2003.

F. School districts that receive monies from the deficiencies correction fund shall establish a school district deficiencies correction fund and shall use the monies in the school district deficiencies correction fund only for the purposes prescribed in this section. Ending cash balances in a school district's deficiencies correction fund may be used in following fiscal years only for the purposes prescribed in this section. Each school district that receives monies from the deficiencies correction fund shall annually report the expenditures in the previous fiscal year to the school facilities board by October 15 and provide an accounting of the monies remaining in the deficiencies correction fund at the end of the previous fiscal year. The school facilities board shall submit a report to the legislature and the Arizona state library, archives and public records by December 15, 1999 that includes a detailed cost estimate of the monies that will need to be appropriated to correct the existing deficiencies of all schools in this state by June 30, 2003. This state shall annually appropriate monies to the deficiencies correction fund established in this section in order to correct existing deficiencies of all schools in this state by June 30, 2003.

G. A DEFICIENCY CORRECTION PROJECT AWARDED PURSUANT TO THIS SECTION MAY BE COMBINED WITH THE DEFICIENCY CORRECTION PROJECTS OF ONE OR MORE ADDITIONAL SCHOOL DISTRICTS FOR PURPOSES OF PROCURING CONSTRUCTION SERVICES AND MATERIALS THAT ARE NECESSARY TO CORRECT DEFICIENCIES IF THE SCHOOL FACILITIES BOARD DETERMINES THAT COMBINING THE PROJECTS MAXIMIZES THE PURCHASING VALUE OF THE PUBLIC MONIES OF THIS STATE.

Sec. 5. Section 15-2081, Arizona Revised Statutes, is amended to read:

15-2081. Authorization of state school improvement revenue bonds

A. The school facilities board may issue revenue bonds in a principal amount not to exceed eight hundred million dollars pursuant to this article. The bonds may be issued for the following purposes:

1. To provide monies to pay the cost of:

(a) Correcting existing deficiencies as prescribed by section 15-2021.

(b) Bond related expenses including any expenses incurred by the school facilities board to issue and administer its bonds including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other professional fees and expenses, bond insurance or other credit enhancements or liquidity facilities, attorney and accounting fees and expenses related to credit enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and telephone expenses and all other fees considered necessary by the school facilities board in order to market and administer the bonds.

2. To fully or partially fund any reserves or sinking accounts established by the bond resolution.

B. The school facilities board shall authorize the bonds by resolution. The resolution shall prescribe:

1. The fixed or variable rate or rates of interest, the date or dates on which interest is payable and the denominations of the bonds.

2. The date or dates of the bonds and maturity, within twenty years after the date of issuance.

3. The form of the bonds.

4. The manner of executing the bonds.

5. The medium and place of payment.

6. The terms of redemption, which may provide for a premium for early redemption.

C. The bonds issued pursuant to this article shall be known as state school improvement revenue bonds.

D. THE AUTHORITY OF THE SCHOOL FACILITIES BOARD TO ISSUE SCHOOL IMPROVEMENT BONDS PURSUANT TO THIS ARTICLE EXPIRES FROM AND AFTER JUNE 30, 2003, EXCEPT FOR BONDS ISSUED TO REFUND ANY BONDS ISSUED BY THE BOARD.

Sec. 6. Section 15-2085, Arizona Revised Statutes, is amended to read:

15-2085. Securing principal and interest

A. In connection with issuing bonds authorized by this article and to secure the principal and interest on the bonds, the school facilities board by resolution may:

1. Segregate the school improvement revenue bond debt service fund into one or more accounts and subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the revenue bond debt service fund or into any account or subaccount in the fund.

2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the school improvement revenue bond debt service fund as provided by ~~section 37-521, subsection B, paragraph 1 and~~ section 42-5029, subsection E and PARAGRAPH 1 pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the school improvement revenue bond debt service fund, in any account or subaccount in the fund or in the school improvement revenue bond proceeds fund as is necessary to secure and pay the principal, the interest and any premium on the bonds as they come due.

3. Establish priorities among bondholders based on criteria adopted by the board.

4. Set aside, regulate and dispose of reserves and sinking accounts.

5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.

6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues authorized by this article and available to the board.

7. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds.

8. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds.

9. Refund any bonds issued by the board, if these bonds are secured from the same source of revenues as the bonds authorized by this article, by issuing new bonds, whether at or before maturity of the bonds being refunded.

10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article.

B. Bonds issued to refund any bonds issued by the board as provided by subsection A, paragraphs 9 and 10 of this section are not subject to legislative authorization or subject to the eight hundred million dollar limitation prescribed by section 15-2081, subsection A.

Sec. 7. Section 41-2632, Arizona Revised Statutes, is amended to read:

41-2632. Cooperative purchasing authorized

A. Any public procurement unit may either participate in, sponsor, conduct or administer a cooperative purchasing agreement for the procurement of any materials, services or construction with one or more public procurement units in accordance with an agreement entered into between the participants. A nonprofit educational or public health institution may enter into an agreement pursuant to this section if one or more of the parties involved is a public procurement unit. An agreement entered into as provided in this article is exempt from section 11-952, subsections D and F. Parties under a cooperative purchasing agreement may:

1. Sponsor, conduct or administer a cooperative agreement for the procurement or disposal of any materials, services or construction.

2. Cooperatively use materials or services.

3. Commonly use or share warehousing facilities, capital equipment and other facilities.

4. Provide personnel, except that the requesting public procurement unit shall pay the public procurement unit providing the personnel the direct and indirect cost of providing the personnel, in accordance with the agreement.

5. On request, make available to other public procurement units informational, technical or other services that may assist in improving the efficiency or economy of procurement. The public procurement unit furnishing the informational or technical services has the right to request reimbursement for the reasonable and necessary costs of providing such services.

B. THE SCHOOL FACILITIES BOARD OR SCHOOL DISTRICTS, OR BOTH, MAY ENTER INTO AN AGREEMENT WITH A PUBLIC PROCUREMENT UNIT PURSUANT TO THIS SECTION FOR THE PURPOSE OF PROCURING MATERIALS AND SERVICES NEEDED TO CORRECT DEFICIENCIES IN SCHOOL FACILITIES AS DETERMINED IN SECTION 15-2021.

B. C. The activities described in this section do not limit what parties may do under a cooperative purchasing agreement.

Sec. 8. Section 41-3008.19, Arizona Revised Statutes, is amended to read:

41-3008.19. School facilities board; termination July 1, 2008

A. The school facilities board terminates on July 1, 2008.

B. Title 15, chapter 16 is repealed on January 1, 2009 only if either:

1. The board has no outstanding state school facilities revenue bonds issued pursuant to title 15, chapter 16, article 6 AND NO OUTSTANDING SCHOOL IMPROVEMENT BONDS ISSUED PURSUANT TO TITLE 15, CHAPTER 16, ARTICLE 7.

2. The legislature has otherwise provided for paying or retiring any outstanding state school facilities revenue bonds AND ANY OUTSTANDING STATE SCHOOL IMPROVEMENT BONDS.

C. If neither of the conditions in subsection B have occurred by January 1, 2009, title 15, chapter 16 is repealed thirty days after the retirement of all revenue bonds issued pursuant to title 15, chapter 16, article 6 AND TITLE 15, CHAPTER 16, ARTICLE 7.

Sec. 9. Laws 1998, fifth special session, chapter 1, section 55, as amended by Laws 1999, chapter 299, section 39 and Laws 2000, chapter 163, section 2, is amended to read:

Sec. 55. Exemption from rule making requirements; delayed effective date of rules

Notwithstanding any other law, the school facilities board is exempt from the provisions of title 41, chapter 6, Arizona Revised Statutes, until December 31, ~~2000~~ 2001 ~~with respect to the rules establishing minimum school facility adequacy guidelines pursuant to section 15-2011, Arizona Revised Statutes, as added by this act~~. By March 31, 1999, the school facilities board shall provide a final draft of proposed minimum school facility adequacy guidelines to the governor, the speaker of the house of representatives and the president of the senate and the school facilities board shall make copies of the final draft available to the public. The school facilities board shall provide the public with an opportunity to comment on the proposed rules and shall hold at least one public hearing on the proposed rules. The rules adopted pursuant to this section do not become effective until April 30, 1999.

Sec. 10. Laws 1998, fifth special session, chapter 1, section 60, as amended by Laws 2000, chapter 163, section 3, is amended to read:

Sec. 60. School facilities board; procurement

Notwithstanding any other provision of law, the school facilities board is exempt from the provisions of title 41, chapter 23, Arizona Revised Statutes, until from and after December 31, ~~2000~~ 2001.

Sec. 11. Repeal

Laws 2000, fifth special session, chapter 1, section 59 is repealed.

Sec. 12. Transfer of new school facilities fund monies

On the effective date of this act, the school facilities board may transfer monies in the new school facilities fund established pursuant to section 15-2041, Arizona Revised Statutes, to the deficiencies correction fund established pursuant to section 15-2021, Arizona Revised Statutes, until June 30, 2001. The school facilities board shall transfer monies in the deficiencies correction fund to the new school facilities fund at any time during fiscal year 2001-2002 in an amount not to exceed the amount of any monies transferred from the new school facilities fund to the deficiencies correction fund during fiscal year 2000-2001.

Sec. 13. Retroactivity

Sections 9 and 10 of this act are effective retroactively to from and after December 31, 2000.

Sec. 14. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.