school facilities board;
construction
SB 1181 expands the powers of the School Facilities Board (SFB) to allow the SFB to contract for or procure the construction services and materials necessary to correct existing school facilities deficiencies. SB 1181 also extends the Board’s rule making and procurement exemptions from December 31, 2000 to December 31, 2001.
Students FIRST (Laws 1998, 5th Special Session, Chapter 1) requires the School Facilities Board (SFB) review and award monies to correct deficiencies by June 30, 2001 and ensure that school districts correct deficiencies by June 30, 2003. Laws 2000, 5th Special Session, Chapter 1 provides the SFB with the authority to issue up to $800 million in revenue bonds to correct existing deficiencies at the schools.
Under current law, the SFB must distribute the monies to correct the deficiencies to the school districts. SB 1181 allows the SFB to directly contract or procure the services and materials necessary to correct existing deficiencies. The SFB is given the authority to combine deficiency correction projects for the purposes of procuring construction services if the SFB determines that combining the projects maximizes the purchasing value of the state.
· Expands a school district governing board’s power to sell school sites or enter into leases or lease-purchase agreements for school buildings and grounds as the lessee or lessor without an election for the following:
1. The buildings and sites are completely funded with monies distributed by the school facilities board (subject to existing requirements under the SFB’s statutes).
2. The transaction involves the sale of improved or unimproved property pursuant to an agreement with the SFB in which the school district agrees to sell the property and transfer the proceeds of the sale to the SFB in exchange for monies from the SFB for the acquisition of a more suitable school site. Provides that for property acquired by a school district prior to July 9, 1998, a school district shall transfer to the SFB 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 that transfer, the school district may keep the remaining proceeds but can only use the proceeds for future land purchases approved by the SFB or for capital improvements not funded by the SFB.
· Expands the SFB authority to allow the SFB to contract for construction services and materials that are necessary to correct existing deficiencies in school facilities. The SFB may use construction-manager-at-risk, design-build, design-bid-build or job-order-contracting.
· Provides that the SFB can provide deficiency correction funding directly to vendors, not just school districts.
· Allows SFB to combine deficiency correction projects of one or more school districts for the purpose of procuring construction services if the SFB determines that combining the projects maximizes the purchasing value.
· Allows the SFB or a school district to enter into agreements with a public procurement unit for the purpose of procuring materials and services needed to correct deficiencies in school facilities.
· Extends the SFB’s exemption from the rule making and procurement code from December 31, 2000 to December 31, 2001. These provisions are retroactive to December 31, 2000.
· Provides that the SFB may enter into intergovernmental agreements with school districts to allow SFB employees access to school property in order to perform necessary construction services to correct existing deficiencies.
· Contains technical changes to the SFB school improvement bonding authority. These changes include limiting the authority to school improvement bonds to June 30, 2003, eliminating a statutory site to the state trust land as a means to secure school improvement bonds, and clarifying that the SFB can not be sunset if the there are outstanding bonds issued by the SFB.
· Repeals Laws 2000, 5th Special Session Chapter 1, Section 59.
· Allows the SFB to make a one-time transfer of funds from the new construction fund to the school deficiencies fund. The SFB is required to pay the money back in FY 2002.
· Allows a school district to pledge school district revenues to a municipal property corporation for any project financed with a loan from the United States Department of Agriculture.
· Contains an emergency clause.
SB 1181 passed the Education Committee unamended.
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45th Legislature
First Regular Session 2 March 7,
2001
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