HB2552 - 451R

 -----------------------------
  Senate Engrossed House Bill
 -----------------------------
  State of Arizona
  House of Representatives
  Forty-fifth Legislature
  First Regular Session
  2001
 -----------------------------
      HOUSE BILL 2552
 -----------------------------

AN ACT

AMENDING SECTIONS 15-2002 AND 15-2041, ARIZONA REVISED STATUTES; 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 15-2002, 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 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~~ TWO 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, INCLUDING ASSISTANCE IN MEETING THE MAINTENANCE REQUIREMENTS ESTABLISHED PURSUANT TO SUBSECTION I OF THIS SECTION.

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~~ TWO 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. IN ORDER TO ENSURE THAT SCHOOL BUILDINGS RECEIVE ADEQUATE PREVENTATIVE MAINTENANCE, THE BOARD SHALL IMPLEMENT A SCHOOL MAINTENANCE PROGRAM AS FOLLOWS:

1. THE BOARD SHALL DEVELOP AND DISTRIBUTE TO SCHOOL DISTRICTS:

(a) STANDARDS FOR ROUTINE PREVENTATIVE BUILDING MAINTENANCE.

(b) GUIDELINES FOR DETERMINING THE APPROPRIATE AMOUNT OF MAINTENANCE AND OPERATION MONIES THAT SHOULD BE BUDGETED FOR THE ROUTINE PREVENTATIVE MAINTENANCE OF A FACILITY.

2. THE INSPECTION PRESCRIBED IN SUBSECTION A, PARAGRAPH 3 OF THIS SECTION SHALL INCLUDE A DETERMINATION OF WHETHER THE ROUTINE PREVENTATIVE MAINTENANCE OF THE BUILDING HAS BEEN ADEQUATE, EXCEPT THAT A SCHOOL FACILITY SHALL NOT BE INSPECTED FOR PREVENTATIVE MAINTENANCE UNTIL AFTER THE BOARD CERTIFIES THAT THE FACILITY MEETS ALL OF THE MINIMUM SCHOOL FACILITY ADEQUACY GUIDELINES ADOPTED PURSUANT TO SECTION 15-2011, SUBSECTION F AND AFTER THE REQUIREMENTS OF PARAGRAPH 1 OF THIS SUBSECTION HAVE BEEN MET.

3. IF THE BOARD DETERMINES THAT A BUILDING HAS RECEIVED INADEQUATE PREVENTATIVE MAINTENANCE, THE BOARD SHALL NOTIFY THE SCHOOL DISTRICT OF THE INADEQUACY AND THE REQUIREMENTS THAT MUST BE MET FOR THE BUILDING TO MEET THE MAINTENANCE STANDARDS PRESCRIBED PURSUANT TO PARAGRAPH 1, SUBDIVISION (a) OF THIS SUBSECTION.

4. NO SOONER THAN SIX MONTHS AFTER PROVIDING THE NOTICE PRESCRIBED IN PARAGRAPH 3 OF THIS SUBSECTION, THE BOARD SHALL REINSPECT THE INADEQUATE BUILDINGS IN THE SCHOOL DISTRICT.

5. IF THE BOARD DETERMINES THAT THE SCHOOL DISTRICT FAILED TO MEET THE MAINTENANCE STANDARDS AFTER THE SIX-MONTH CORRECTION PERIOD, THE BOARD SHALL NOTIFY THE DISTRICT OF THE AMOUNT OF MAINTENANCE AND OPERATIONS MONEY THAT SHALL BE BUDGETED FOR THE MAINTENANCE OF THE SCHOOL THAT CONTAINS THE INADEQUATE BUILDING OR BUILDINGS.

6. THE SCHOOL DISTRICT SHALL BUDGET AT LEAST THE AMOUNT PRESCRIBED IN PARAGRAPH 5 OF THIS SUBSECTION FOR THE FOLLOWING FISCAL YEAR UNTIL THE BOARD DETERMINES THAT THE PREVENTATIVE MAINTENANCE OF THE FACILITY IS ADEQUATE. THE DISTRICT MAY NOT EXPEND THESE MONIES FOR ANY OTHER PURPOSE.

Sec. 2. Section 15-2041, Arizona Revised Statutes, is amended to read:

15-2041. New school facilities fund; capital plan

A. A new school facilities fund is established consisting of monies appropriated by the legislature and monies credited to the fund pursuant to section 37-221 or 42-5030.01. The school facilities board shall administer the fund and distribute monies, as a continuing appropriation, to school districts for the purpose of constructing new school facilities. On June 30 of each fiscal year, the state treasurer shall credit any unobligated in contract monies in the new school facilities fund to the capital reserve fund established by section 15-2003.

B. The school facilities board shall prescribe a uniform format for use by the school district governing board in developing and annually updating a capital plan that consists of each of the following:

1. Enrollment projections for the next five years for elementary schools and eight years for middle and high schools, including a description of the methods used to make the projections.

2. A description of new schools or additions to existing schools needed to meet the building adequacy standards prescribed in section 15-2011. The description shall include:

(a) The grade levels and the total number of pupils that the school or addition is intended to serve.

(b) The year in which it is necessary for the school or addition to begin operations.

3. Long-term projections of the need for land for new schools.

4. Any other necessary information required by the school facilities board to evaluate a school district's capital plan.

C. If the capital plan indicates a need for a new school or an addition to an existing school within the next four years or a need for land within the next ten years, the school district shall submit its plan to the school facilities board and shall request monies from the new school facilities fund for the new construction or land. Monies provided for land shall be in addition to any monies provided pursuant to subsection D of this section.

D. The school facilities board shall distribute monies from the new school facilities fund as follows:

1. The school facilities board shall review and evaluate the enrollment projections and either approve the projections as submitted or revise the projections. In determining new construction requirements, the school facilities board shall determine the net new growth of pupils that will require additional square footage that exceeds the building adequacy standards prescribed in section 15-2011.

2. If the approved projections indicate that additional space will not be needed within the next two years for elementary schools or three years for middle or high schools in order to meet the building adequacy standards prescribed in section 15-2011, the request shall be held for consideration by the school facilities board for possible future funding and the school district shall annually submit an updated plan until the additional space is needed.

3. If the approved projections indicate that additional space will be needed within the next two years for elementary schools or three years for middle or high schools in order to meet the building adequacy standards prescribed in section 15-2011, the school facilities board shall provide an amount as follows:

(a) Determine the number of pupils requiring additional square footage to meet building adequacy standards. This amount for elementary schools shall not be less than the number of new pupils for whom space will be needed in the next year and shall not exceed the number of new pupils for whom space will be needed in the next five years. This amount for middle and high schools shall not be less than the number of new pupils for whom space will be needed in the next four years and shall not exceed the number of new pupils for whom space will be needed in the next eight years.

(b) Multiply the number of pupils determined in subdivision (a) of this paragraph by the square footage per pupil. The square footage per pupil is ninety square feet per pupil for preschool children with disabilities, kindergarten programs and grades one through six, one hundred square feet for grades seven and eight, one hundred thirty-four square feet for a school district that provides instruction in grades nine through twelve for fewer than one thousand eight hundred pupils and one hundred twenty-five square feet for a school district that provides instruction in grades nine through twelve for at least one thousand eight hundred pupils. The total number of pupils in grades nine through twelve in the district shall determine the square footage factor to use for net new pupils. The school facilities board may modify the square footage requirements prescribed in this subdivision for particular schools based on any of the following factors:

(i) The number of pupils served or projected to be served by the school district.

(ii) Geographic factors.

(iii) Grade configurations other than those prescribed in this subdivision.

(iv) Compliance with minimum school facility adequacy requirements established pursuant to section 15-2011.

(c) Multiply the product obtained in subdivision (b) of this paragraph by the cost per square foot. The cost per square foot is ninety dollars for preschool children with disabilities, kindergarten programs and grades one through six, ninety-five dollars for grades seven and eight and one hundred ten dollars for grades nine through twelve. The cost per square foot shall be adjusted annually for construction market considerations based on an index identified or developed by the joint legislative budget committee as necessary but not less than once each year. The school facilities board shall multiply the cost per square foot by 1.05 for any school district located in a rural area. The school facilities board may modify the base cost per square foot prescribed in this subdivision for particular schools based on geographic conditions or site conditions. For purposes of this subdivision, "rural area" means an area outside a thirty-five mile radius of a boundary of a municipality with a population of more than fifty thousand persons according to the most recent United States decennial census.

(d) Once the school district governing board obtains approval from the school facilities board for new facility construction funds, additional portable or modular square footage created for the express purpose of providing temporary space for pupils until the completion of the new facility shall not be included by the school facilities board for the purpose of new construction funding calculations. On completion of the new facility construction project, if the portable or modular facilities continue in use, then the portable or modular facilities shall be included as prescribed by this chapter, unless the school facilities board approves their continued use for the purpose of providing temporary space for pupils until the completion of the next new facility that has been approved for funding from the new school facilities fund.

E. Monies for architectural and engineering fees shall be distributed on the completion of the analysis by the school facilities board of the school district's request. After receiving monies pursuant to this subsection, the school district shall submit a design development plan for the school or addition to the school facilities board before any monies for construction are distributed. If the school district's request meets the building adequacy standards, the school facilities board may review and comment on the district's plan with respect to the efficiency and effectiveness of the plan in meeting state square footage and facility standards before distributing the remainder of the monies. The school facilities board may decline to fund the project if the square footage is no longer required due to revised enrollment projections.

F. The school facilities board shall distribute the monies needed for land for new schools so that land may be purchased at a price that is less than or equal to fair market value and in advance of the construction of the new school. If necessary, the school facilities board may distribute monies for land to be leased for new schools if the duration of the lease exceeds the life expectancy of the school facility by at least fifty per cent. The proceeds derived through the sale of any land purchased or partially purchased with monies provided by the school facilities board shall be returned to the state fund from which it was appropriated and to any other participating entity on a proportional basis. If a school district acquires real property by donation at an appropriate school site approved by the school facilities board, the school facilities board shall distribute an amount equal to twenty per cent of the fair market value of the donated real property 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 outlay limit by the amount of monies placed in the fund. Monies distributed under this subsection shall be distributed from the new school facilities fund.

G. In addition to distributions to school districts based on pupil growth projections, a school district may submit an application to the school facilities board for monies from the new school facilities fund if one or more school buildings have outlived their useful life. If the school facilities board determines that the school district needs to build a new school building for these reasons, the school facilities board shall remove the square footage computations that represent the building from the computation of the school district's total square footage for purposes of this section. If the square footage recomputation reflects that the school district no longer meets building adequacy standards, the school district qualifies for a distribution of monies from the new school construction formula in an amount determined pursuant to subsection D of this section. Buildings removed from a school district's total square footage pursuant to this subsection shall not be included in the computation of monies from the building renewal fund established by section 15-2031. The school facilities board may modify the base cost per square foot prescribed in this subsection under extraordinary circumstances for geographic factors or site conditions.

H. School districts that receive monies from the new school facilities fund shall establish a district new school facilities fund and shall use the monies in the district new school facilities fund only for the purposes prescribed in this section. By October 15 of each year, each school district shall report to the school facilities board the projects funded at each school in the previous fiscal year with monies from the district new school facilities fund and shall provide an accounting of the monies remaining in the new school facilities fund at the end of the previous fiscal year.

I. If a school district has surplus monies received from the new schools facilities fund, the school district may use the surplus monies for any other capital purpose.

J. THE SCHOOL FACILITIES BOARD MAY DISTRIBUTE MONIES FOR SCHOOL DISTRICTS TO LEASE FACILITIES FOR NEW SCHOOLS IF THE SCHOOL FACILITIES BOARD DETERMINES THAT, BASED ON THE SCHOOL DISTRICT'S ENROLLMENT PROJECTIONS, IT WOULD BE MORE APPROPRIATE FOR THE SCHOOL DISTRICT TO LEASE FACILITIES RATHER THAN CONSTRUCT NEW FACILITIES. AT THE REQUEST OF THE SCHOOL DISTRICT THE SCHOOL FACILITIES BOARD MAY WAIVE ONE OR MORE OF THE BUILDING ADEQUACY STANDARDS SET FORTH IN SECTION 15-2011 FOR FACILITIES THAT ARE LEASED PURSUANT TO THIS SUBSECTION. THE SCHOOL FACILITIES BOARD SHALL DISTRIBUTE THE MONIES NEEDED FOR LEASES PURSUANT TO THIS SUBSECTION PROVIDED THAT THE RENT PAID BY THE SCHOOL DISTRICT IS LESS THAN OR EQUAL TO THE FAIR MARKET VALUE FOR LEASES OF SIMILAR PROPERTY IN THAT AREA. MONIES DISTRIBUTED FOR LEASES PURSUANT TO THIS SUBSECTION ARE NOT SUBJECT TO THE BASE COST PER SQUARE FOOT CALCULATION PRESCRIBED IN SUBSECTION D OF THIS SECTION.